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HomeMy WebLinkAboutJanuary - December 2010® 0 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 27, 2010 HAS BEEN CANCELED The next regularly scheduled meeting will be held on Tuesday, January 11, 2011, 6:00 p.m., Veterans Hall. ® FINANCE ADMINISTRATION 595 Harbor Street 595 Harbor Street HARBOR DEPT. 1275 Embarendero Road CITY ATTORNEY 955 Shasta Avenue FIRE DEPT. 715 Harbor Street POLICE DEPT. 870 Morro Bav Boulevard PUBLIC SERVICES 955 Shasta Avenue RECREATION & PARKS 1001 Kennedv Wav ® 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 13, 2010 CLOSED SESSION — DECEMBER 13, 2010 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: Vacant Lot/Comer of Coral/San Jacinto. Negotiating Parties: Potential Buyers and City of Morro Bay. Negotiations: Voluntary Purchase and Sale. Property: Surf Street Parking Lot Negotiating Parties: Maritime Museum and City of Morro Bay Negotiations: Terms and Conditions of Lease. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. r PUBLIC SESSION — DECEMBER 13; 2010 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. 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 RESOLUTION AUTHORIZING THE CITY OF MORRO BAY TO ENTER INTO BOATING SAFETY AND ENFORCEMENT GRANT CONTRACT WITH THE DEPARTMENT OF BOATING AND WATERWAYS; (HARBOR) RECOMMENDATION: Adopt Resolution No. 64-10 authorizing the Harbor Operations Manager to execute the attached Boating Safety and ® Enforcement (BS&E) grant contract agreement #10-204-782 with the California Department of Boating and Waterways for purchase of miscellaneous patrol vessel electronic equipment in the amount of $6J00; A-2 STATUS REPORT ON WATER USAGE; (PUBLIC SERVICES) RECOMMENDATION: Review status report. B. PUBLIC HEARINGS REPORTS & APPEARANCES B-1 REVIEW OF ANNUAL REPORT AND APPROVAL OF THE BUSINESS LICENSE RENEWAL FOR THE "FAMILY FUN ZONE" ARCADE LOCATED AT 725 EMBARCADERO SUITE 105; (POLICE) RECOMMENDATION: Approve the renewal of the business license for the "Family Fun Zone" Arcade with the existing conditions listed in Resolution No; 53-09 and Minor Use Permit (UPO-286 & ADO-051). B-2 AMENDMENT TO USE PERMIT AND COASTAL DEVELOPMENT PERMIT (UPO-042/CPO-064) FOR 555 MAIN STREET TO MODIFY THE PROJECT TO CHANGE THE COMMERCIAL COMPONENT OF THE PROJECT TO RESIDENTIAL AND REQUEST FOR AFFORDABLE HOUSING ® ASSISTANCE; (PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff accordingly. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 PRESENTATION FROM SAN LUIS OBISPO COUNCIL OF GOVERNMENTS INCLUDING SB375 (SUSTAINABLE COMMUNITIES STRATEGY) RECOMMENDATION: Receive presentation for information. D-2 REQUEST FOR REFUND OF CONDITIONAL USE PERMIT/COASTAL DEVELOPMENT PERMIT FEES FOR 160 ANCHOR ST. - KLEINHAMMER; (PUBLIC SERVICES) RECOMMENDATION: Grant a refund of $1,625 and authorize staff to establish a refund policy within the Master Fee Schedule; D-3 DISCUSSION ON THE CREATION AND FUNDING OF A FACILITY REPAIR FUND FROM THE PROCEEDS OF CITY PROPERTY LOCATED ® AT 781 MARKET STREET; (RECREATION & PARKS) 3 RECOMMENDATION: Review and direct staff to return with a resolution to establish a deferred maintenance account for the maintenance and ® management of City owned real property. D4 DISCUSSION REGARDING MOVING CITY COUNCIL MEETING DATES FROM THE Y%D AND 4T" MONDAY OF EACH MONTH TO THE 2ND AND 4T" WEDNESDAY OF EACH MONTH; (COUNCIL) RECOMMENDATION: Return to the neat City Council meeting with an ordinance for introduction and first reading amending Morro Bay Municipal Code section 2.08.010, which would move the City Council meeting dates from the 2°d and 4�h Monday of each month to the 2°d and 4th Wednesday of each month. D-5 APPOINTMENT OF VICE -MAYOR AND APPOINTMENT OF REPRESENTATIVES ON DISCRETIONARY BOARDS, COUNCIL LIAISON ASSIGNMENTS AND COUNCIL SUB -COMMITTEES; (ADMINISTRATION) RECOMMENDATION: Discuss and appoint the Vice -Mayor and Representatives to serve on the various County or Regional Discretionary Boards, Council Liaison Assignments and Sub -Committees. D-6 SCHEDULE A DATE FOR INTERVIEWS OF COMMISSIONER/ADVISORY BOARD VACANCIES; (ADMINISTRATION) ® RECOMMENDATION: Schedule'a date to interview candidates to fill vacancies on City Commissions and Advisory Boards. E. DECLARATION OF FUTURE AGENDA ITEMS F. 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. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. 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 — DECEMBER 13, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Borchard moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Smukler and unanimously carried. (5-0) Mayor Yates read the Closed Session Statement. CS-1 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY ® TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to two (2) parcels. Property: Vacant Lot/Comer of Coral/San Jacinto. Negotiating Parties: Potential Buyers and City of Morro Bay. Negotiations: Voluntary Purchase and Sale. Property: Surf Street Parking Lot Negotiating Parties: Maritime Museum and City of Morro Bay Negotiations: Terms and Conditions of Lease. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:30 p.m. MOTION: Councilmember Borchard moved the meeting be adjourned. The motion was seconded by Councilmember Smukler and unanimously carried. (5-0) The meeting adjourned at 5:30 p.m. EA MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — DECEMBER 13, 2010 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker Robert Schultz Jamie Boucher Eric Ender sby Susan Lichtenbaum Rob Livick Tim Olivas Mike Pond Susan Slayton Kathleen Wold Joe Woods City Manager City Attorney Deputy City Clerk Harbor Operations. Manager Harbor Business Manager Public Services Director Police Chief Fire Chief Administrative Services Director Planning Manager Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS 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 requested City Council support moving forward with Phase II of the Fire Department Renovation Project. Wally McCray, Street Tree Committee, encouraged citizens to vote for their favorite 'Morro Bay` City tree. Taylor Newton, Street Tree Committee, stated citizens have until January 1'` to vote for their favorite 'Morro Bay' City tree; ballots are available at City Hall; Spencers Market and Farmers Market. He described the various trees available to vote on and noted the City Council will make it official after the first of the year. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — DECEMBER 13, 2010 Marshall Ochylski, President of the Los Osos Community Services District. stated Los Osos and Morro Bay are two developed communities that both serve on the National Estuary Program and the Water Resource Advisory Committee. He would like to see our mutual cooperation continue. He said since the County Planning Department is redoing their County area plans, it is important that Los Osos and Morro Bay work together since Morro Bay has no sphere of influence and the County prepares Los Osos' land use plans. Garry Johnson expressed the importance of supporting the Business Community in Morro Bay. John Barta addressed Item D-4 (Discussion Regarding Moving City Council Meeting Dates From the 2nd and 4 h Monday of Each Month to the 2°d and 4 h Wednesday of -Each Month) stating moving the meetings off Monday is a good idea; however, he would suggest moving it to a Tuesday because there are many regional meetings held on Wednesdays. He also referred to the staircase at the end of Surf Street which is City - owned property, and recommended Council consider reworking the hill and placing an ADA ramp at this prime property. Craig Schmidt introduced himself as the new Chief Executive Officer of the Chamber of ® Commerce and he looks forward to working with the City. Kevin Rice congratulated the City Council on their election process, and explained the current selection process in San Luis Obispo; he is running for its vacant seat. Ken Vesterfelt requested everyone get involved in the Police Department K-9 Dog efforts in order to raise funds. He also wished all a Merry Christmas. Mayor Yates closed the public comment hearing. 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 RESOLUTION AUTHORIZING THE CITY OF MORRO BAY TO ENTER INTO BOATING SAFETY AND ENFORCEMENT GRANT CONTRACT WITH THE DEPARTMENT OF BOATING AND WATERWAYS; (HARBOR) A-2 STATUS REPORT ON WATER USAGE; (PUBLIC SERVICES) ® MOTION: Councilmember Borchard moved the City Council approve the Consent Calendar. MINUTES - MORRO BAY CITY COUNCIL 3 E REGULAR MEETING — DECEMBER 13, 2010 The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 REVIEW OF ANNUAL REPORT AND APPROVAL OF THE BUSINESS LICENSE RENEWAL FOR THE "FAMILY FUN ZONE" ARCADE LOCATED AT 725 EMBARCADERO SUITE 105; (POLICE) Police Chief Tim Olivas stated on October 6, 2010, the City Council adopted Resolution No. 53-09 in conformance with Morro Bay Municipal Code 5.04.330 approving a Business License for Rose's Landing "Family Fun Zone" Arcade located at 725 Embarcadero, with conditions. Pursuant to Morro Bay Municipal Code Section 5.04.330, the application for the annual renewal of the business license shall be considered at a public hearing, with a report from the Chief of Police as to compliance with conditions of approval and any law enforcement problems experienced in the past year. A records check was conducted for Police Department "Calls for Service'related to the Arcade at 725 Embarcadero. No calls for service were recorded for incidents related to the Arcade's operation. The Harbor Department and Public Services Department also reported they had no incidents that would give cause for the Arcade business license to be suspended or revoked. Chief Olivas recommended the City Council approve the renewal of the A business license for the "Family Fun Zone' Arcade with the existing conditions listed in ® Resolution No. 53-09 and Minor Use Permit (UPO-286 & ADO-051). Mayor Yates opened the hearing for public comment; there were no comments, and the public comment period was closed. MOTION: Councilmember Borchard moved the City Council approve the renewal of the business license for the "Family Fun Zone" Arcade with the existing conditions listed in Resolution No. 53-09 and Minor Use Permit (UPO- 286 & ADO-051). The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) B-2 AMENDMENT TO USE PERMIT AND COASTAL DEVELOPMENT PERMIT (UPO-042/CPO-064) FOR 555 MAIN STREET TO MODIFY THE PROJECT TO CHANGE THE COMMERCIAL COMPONENT OF THE PROJECT TO RESIDENTIAL AND REQUEST FOR AFFORDABLE HOUSING ASSISTANCE; (PUBLIC SERVICES) Planning Manager Kathleen Wold stated the applicant requests an amendment to the Use Permit and Coastal Development Permit to modify the project in order to eliminate the commercial component of the project, increase the number of residential units, convert the project to an all residential senior affordable housing project, and modify a portion of the ® units from one bedroom units to three bedroom units. The applicant also requests a residual receipts loan request of $600,000. The applicant requests the monies to cover MINUTES - MORRO BAY CITY COUNCIL 11 11 REGULAR MEETING — DECEMBER 13, 2010 entitlement, permitting and impact fees as well as to finance a portion of the development. Ms. Wold recommended Council authorize staff to begin negotiations with the applicant on the specific terms of a_loan and return to Council with a more specific loan agreement. She noted the applicant is also requesting the City sponsor the project for an allocation of HOME Investment Partnership Program (HOME) funds from the State of California Department of Housing and Community Development (HCD) from monies made available by the U.S. Department of Housing and Urban Development. Ms. Wold recommended approving this request subject to the applicant being responsible for composing the application with the City's responsibility limited to review of the application and sponsorship. Mayor Yates opened the hearing for public comment. Marshall Ochylski, representing Coast National Bank (applicant), stated the applicant agrees with the City's revisions as mentioned in the staff report. He said this location is perfect for senior affordable housing. Mr. Ochylski noted the inclusion of a third bedroom was from a previous developer when this development was proposed as a family project; it was requested the third bedroom be removed from the plans once this project was made a senior affordable housing project (which would remove Condition of Approval 98.) He said energy -efficiency will be a priority when building this project. is Robert Lang, President of Pacific Southwest Community Development Corporation, introduced himself and reviewed the properties owned by Pacific Southwest Community Development Corporation for Council information. Mayor Yates expressed his support for this project as a senior affordable housing project, and he is in favor of changing the commercial zoning in this area to residential. Councilmember Borchard stated she is supportive of this project and welcomes low and very -low housing opportunities to assist the housing requirements that fit well into the community of seniors, and she also supports granting a relief in the zoning as it is a benefit to the City. Councilmember Johnson stated she is also supportive of the revisions to the project and the elimination of the commercial uses, and also the time spent regarding transportation for seniors at this location. Councilmember Leage stated he supports moving along with this project as proposed. Councilmember Smukler stated he is supportive of the project and appreciative of the applicant's interest in resource efficiency and transportation. He said this will fill an important niche in our community since we are behind in fulfilling our Housing Element in ® our low and very low income bracket. 5 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 13.2010 MOTION: Councilmember Smukler moved the City Council: 1) conditionally approve an amendment to Use Permit UPO-042 and Coastal Development Permit CPO-064 to allow the elimination of the commercial component of the project, increase residential units from 16 to 18 and with the changes made to Exhibit `B", Item 7, as recommended by staff; and removal of Condition #8; 2) authorize staff to begin negotiations with the applicant regarding a residual receipts loan and return to City Council once specific terms have been determined; and 3) authorize City sponsorship of a request for HOME funds for the project subject to the City's responsibilities being limited to review of the application and sponsorship. The motion was seconded by Councilmember Leage and carried unanimously. (5-0) C. UNFINISHED BUSINESS — None. D. NEW BUSINESS D-1 PRESENTATION FROM SAN LUIS OBISPO COUNCIL OF GOVERNMENTS INCLUDING SB375 (SUSTAINABLE COMMUNITIES is STRATEGY) The City Council received a presentation from Steve DeVencenzi, Planning Director for the San Luis Obispo Council of Governments regarding Senate Bill 375, the 2010 Regional Transportation Plan and Preliminary Sustainable Communities Strategy, which is a comprehensive plan and transportation policy for the region and makes recommendations concerning improvements to the existing transportation network of highways, transit, air and water, rail and bicycling. D-2 REQUEST FOR REFUND OF CONDITIONAL USE PERMIT/COASTAL DEVELOPMENT PERMIT FEES FOR 160 ANCHOR ST. - KLEDa1AMIv1ER: (PUBLIC SERVICES) Public Services Director Rob Livick stated the subject proposal was submitted on July 27, 2009 and various files were made associated with the applicant's request for a tentative parcel map, abandonment of right-of-way, Conditional Use Permit, Coastal Development Permit and the Environmental Review. The project was not targeted for tracking therefore staff time was not tracked. The project submitted was substantially deficient and a letter was sent informing the applicant and their representative of the situation. There were various meetings concerning the project issues and eventually the applicant made the decision to remove their architect from the project. Staff had additional meetings with the applicant including one with a new agent to discuss options, ® requirements and various conditions that would be imposed on the project. The project stayed active within the Planning Division for one year. Eventually, the applicant submitted a letter to withdraw the project and requested a refund of fees. Staff reviewed 6 NUNUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 13, 2010 the City's policies on refunds and issued a refund of $3,808 dollars based on the refund policies in place within the Subdivision Ordinance. The applicants met once again with staff to request additional money be refunded and eventually submitted a request to the Mayor when staff was unable to accommodate them. Mr. Livick recommended the City Council grant a refund of $1,625 and authorize staff to establish a refund policy within the Master Fee Schedule. MOTION: Councilmember Borchard moved the City Council grant a refund of $1,625, and authorizes staff to establish a refund policy within the Master Fee Schedule. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) D-3 DISCUSSION ON THE CREATION AND FUNDING OF A FACILITY REPAIR FUND FROM THE PROCEEDS OF CITY PROPERTY LOCATED AT 781 MARKET STREET; (RECREATION & PARKS) Recreation & Parks Director Joe Woods stated the City's management of real property assets has lacked the resources to adequately support a deferred maintenance account for all scheduled property. The volume of deferred maintenance has increased and.potential property loss and/or significant devaluation are certainly possible should this practice continue. The establishment of a deferred maintenance account would give immediate relief to the General Fund and satisfy the required maintenance for the current City owned real property. The City is in need of a funding source to address the City's infrastructure, and the most ready source of funding at this time is the surplus revenue from the sale of 781 Market Street. A deferred maintenance account could be setup as a capital account allowing any balance to carry over to the following fiscal year if not used in its entirety. Access and use of the funds would be subject to City Council's approval. Mr. Woods recommended the City Council review and direct staff to return with a resolution to establish a deferred maintenance account for the maintenance and management of City owned real property. MOTION: Councilmember Smukler moved the City Council direct staff to return with a resolution recommending the details and management plan of a deferred maintenance account, a recommended financial management plan for that account including repayment of .parking in -lieu funds and suggested priorities for Exhibit "A". The motion was seconded by Councilmember Johnson. Councilmember Smukler amended his motion to include the initial lump sum payment of approximately $210,000; Councilmember Johnson accepted the amendment to her second. ® VOTE: The motion carried unanimously. (5-0) VA MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — DECEMBER 13, 2010 D-4 DISCUSSION REGARDING MOVING CITY COUNCIL MEETING DATES FROM THE 2ND AND 4TH MONTDAY OF EACH MONTH TO THE 2No AND 4' WEDNESDAY OF EACH MONTH; (COUNCIL) City Manager Andrea Lueker stated in the past there has been informal discussion about changing the City Council meeting date from Monday to an alternative day. The benefits of a Tuesday/Wednesday meeting include the following: • Monday conflicts with several holidays and as a result the meeting is occasionally set on another day. • Currently the agenda packets are available by 5:00 p.m. on Wednesday, leaving Thursday, Friday and Monday for questions of staff. With staff scheduling Friday and Monday, often those days are difficult to arrange a meeting, leaving little time for the Mayor and Council to read and formulate questions on the agenda packet. Tuesday/Wednesday meetings would provide two extra days for staff availability. • A Monday meeting following a weekend, may limit the amount of time the Mayor and City Council members have to review the packet prior to the meeting. ® Should the City Council determine to move forward with changing the meeting day, staff w211 bring back an ordinance to amend the Morro Bay Municipal Code Section 2.08.010. As the City Council is aware an addition/amendment to the Municipal Code is not immediate and will not take effect until 30 days after the second reading. As a result, Ms. Lueker recommended the City Council take action tonight to reschedule the January 10, 24, February 14, 28 and the March 14 meeting dates if Council chooses to change these meeting dates. C MOTION: Councilmember Borchard moved the City Council move its regularly scheduled meetings from the 2nd and 4`h Monday of each month to the 2"d and 4'h Tuesday of each month beginning in January 2011. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) D-5 APPOINTMENT OF VICE -MAYOR AND APPOINTMENT OF REPRESENTATIVES ON DISCRETIONARY BOARDS, COUNCIL LIAISON ASSIGNMENTS AND COUNCIL SUB -COMMITTEES; (ADMINISTRATION) Based on Council Policies and Procedures Section 3.2, Councilmember Smukler was appointed to serve as Vice -Mayor for a one-year term. E E E MINUTES - MORRO BAY -CITY COUNCIL REGULAR MEETING — DECEMBER 13, 2010 The following appointments were made on Discretionary Boards: INTEGRATED WASTE MANAGEMENT AUTHORITY Carla Borchard Designee Nancy Johnson Alternate COUNTY WATER RESOURCES ADVISORY COMMITTEE Noah Smukler Delegate City Manager (or her designee) Alternate SAN' LUIS OBISPO REGIONAL TRANSIT AUTHORITY (SLOTA) & SAN LUIS OBISPO AREA COORDINATING COUNCIL (SLOCOGI Bill Yates Delegate Carla Borchard Alternate CMC CITIZENS' ADVISORY COMMITTEE (2-year term) Carla Borchard Member AIR POLLUTION CONTROL DISTRICT Noah Smukler Member COMMUNITY ACTION PARTNERSHIP OF SAN LUIS OBISPO COUNTY. INC. (formerly EOC) - (3-year term) Carla Borchard Member ECONOMIC VITALITY CORPORATION George Leage Member Nancy Johnson NATIONAL ESTUARY PROGRAM Alternate Noah Smukler Member Carla Borchard Alternate CITY SELECTION COMMITTEE (as needed) Bill Yates Member Noah Smukler Alternate LEGISLATNE DELEGATE (as needed) Bill Yates Member Noah Smukler Alternate MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 13, 2010 The following City Council Liaison Assignments were made to City Committees and Boards: HARBOR ADVISORY BOARD Carla Borchard Liaison RECREATION AND PARKS COMMISSION Nancy Johnson Liaison PUBLIC WORKS ADVISORY BOARD Noah Smukler Liaison COMMUNITY PROMOTIONS COMMITTEE George Leage Liaison MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD Bill Yates Liaison The following appointments were made on City Council Sub -Committees: ® COUNCIL SUBCOMMITTEE ON EMPLOYEE GRIEVANCES Nancy Johnson Member Carla Borchard Member JPA SUB -COMMITTEE Bill Yates Member George Leage Member MEDICAL MARIJUANA DISPENSARY (MMD) SUB -COMMITTEE Bill Yates Member Noah Smukler Member SAN LUIS OBISPO COUNTY HOUSING TRUST FUND George Leage Member GOVERNING BODY OF THE SAN' LUIS OBISPO COUNTY 10-YEAR PLAN TO END HOMELESSNESS Nancy Johnson Member George Leage Alternate MOTION: Councilmember Johnson moved the City Council approve the appointments ® made to the various County/Regional Discretionary Boards; Council Liaison Assignments and Sub -Committees. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) 10 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — DECEMBER 13, 2010 D-6 SCHEDULE A DATE FOR INTERVIEWS OF COMMISSIONER/ADVISORY BOARD VACANCIES; (ADMINISTRATION) The City Council scheduled interviews to fill vacancies on the above -stated Commissions and Advisory Boards for Monday, January 24, 2011 beginning at 5:00 p.m., to be held in the Veterans' Memorial Building. E. DECLARATION OF FUTURE AGENDA ITEMS Mayor Yates requested the following: 1) simplify the arcade licensing requirements by removing the condition requiring annual review and approval by the City Council; 2) simplify the taxi business requirements; 3) remove City Council and Planning Commission Policies and Procedures from the Municipal Code; 4) clarification on City Council Policies and Procedures 1.1.2 — Placing an Item on the Agenda, (Mayor Yates received Council consensus on the above items) 5) place the Sign Ordinance on the top of the Planning Division's agenda; ® (Mayor Yates will prepare a report on this item.) Councilmember Borchard requested to bring back the Parking Ordinance for North Main Street for non -conforming or grandfathering parking requirements; (Councilmember Borchard received Council consensus for this item.) Councilmember Johnson requested a discussion on waiving fees for building impact fees for the next five years for commercial buildings in the downtown area, Morro Bay Boulevard from the roundabout to Market Street to Main Street north of the City limits and Quintana Road; (Councilmember Johnson received Council consensus for this item.) Councilmember Leage requested a discussion on a marketing position to market Morro Bay; (Councilmember Leage received Council consensus for this item.) ADJOURNMENT - The meeting adjourned at 8:35 p.m. Recorded by: isJamie Boucher Deputy City Clerk 11 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public SPECIAL MEETING WEDNESDAY, DECEMBER 8, 2010; 6:00 P.M. 209 SURF STREET, MORRO BAY, CA L ESTABLISH QUORUM AND CALL TO ORDER H. MOMENT OF SILENCE Is HL PLEDGE OF ALLEGIANCE IV. PUBLIC COMMENT: Members of the audience may address the Council only on items described in the Special Meeting Agenda. (Government Code § 54954.3(a).) V. APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF NOVEMBER 8, 2010 VL ADOPTION OF RESOLUTION RECITING THE FACT OF THE GENERAL MUNICIPAL ELECTION HELD ON NOVEMBER 2, 2010, AND DECLARING THE RESULTS THEREOF VH. ADOPTION OF RESOLUTION ESTABLISHING A TEMPORARY MORATORIUM ON THE INSTALLATION OF SMARTMETERS BY PG&E VIM COMMENTS BY CURRENT MAYOR AND COUNCILMEM 3ERS IX. PRESENTATION OF PLAQUES TO MAYOR JANICE PETERS, COUNCILMEM 3ER RICK GRANTHAM AND COUNCILMEMBER BETTY WINHOLTZ El ® X. OATH OF OFFICE AND PRESENTATION OF CERTIFICATES OF ELECTION TO MAYOR WILLIAM YATES AND COUNCILMEM 3ER NANCY JOHNSON AND COUNCILNMM 3ER GEORGE LEAGE XL COMMENTS BY NEW MAYOR AND COUNCILMEMBERS XH. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 24 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. El ® MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING — DECEMBER 8, 2010 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney Bridgett Kessling City Clerk Eric Endersby Harbor Operations Manager Susan Lichtenbaum Harbor Business Manager Rob Livick Public Services Director Tim Olivas Police Chief Mike Pond Fire Chief Susan Slayton Administrative Services Director Joe Woods Recreation & Parks Director ® I. ESTABLISH QUORUM AND CALL TO ORDER II. MOMENT OF SILENCE M. PLEDGE OF ALLEGIANCE N. PUBLIC COMMENT: Members of the audience may address the Council only on items described in the Special Meeting Agenda. (Government Code § 54954.3(a).) David Weisman thanked Councilmember Winholtz for her years of service to the City. Patricia Willmar, representative from PG&E, referred to Item VII (Adoption of Resolution Establishing a Temporary Moratorium on the Installation of SmartMeters by PG&E) and reviewed the technology of the SmartMeter Program. Judy Vick requested the City Council consider a temporary moratorium on the SmartMeter Program based on overbilling, health hazards, interference with household electronics, privacy and security risks, and fire risks. She reviewed information Assembly Bill information on the SmartMeter Program. Jeremiah O'Brien, President of the Commercial Fishermen's Association, thanked the outgoing and incoming City Council for their support of the commercial fishing organization. E ® Melody DeMeritt addressed the outgoing Councilmembers and thanked them for their service to the City. Samantha Roche from Merced stated they have been affected by the SmartMeter Program with huge spikes in their electric bills, and encouraged the City to contact other cities before proceeding with this program. Cathy Novak addressed the outgoing Councilmembers and thanked them for their service to the City. Ken Vesterfelt addressed the outgoing Councilmembers and thanked them for their service to the City. He also thanked the citizens for coming out to vote on November 2°d. Cory Rafferty, PG&E, made points of clarification on the SmartMeter Program noting the CPUC would not allow moratoriums on the SmartMeter Program. John Barta addressed the outgoing Councilmembers and thanked them for their service to the City. V. APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF NOVEMBER 8, 2010 ® Councilmember Smukler referred to the motion on page 9 and made the following amendment: MOTION: Councilmember Smukler moved the City Council: 1) award RFP No. MB 10-TI to MV Transportation with a three-year contract and one year option; 2) direct staff continue engagement in the Transit Efficiencies Group evaluating and developing the concept of the Estero Sub -Regional Transit Plan; 3) Coteeil direct staff to further develop support and partnership of alternative community transit opportunities such as the "friendly ride" program and the potential to share a calling support center with the Senior Citizens Center. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) MOTION: Councilmember Smukler moved the City Council approve the minutes of the November 8, 2010 City Council meeting as amended. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) VI. ADOPTION OF RESOLUTION RECITING THE FACT OF THE GENERAL MUNICIPAL ELECTION HELD - ON NOVEMBER 2, 2010, AND DECLARING THE RESULTS THEREOF MOTION: Mayor Peters moved the City Council adopt Resolution No. 62-10 reciting the fact of the General Municipal Election held on November 2, 2010, and ® declaring the results thereof. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) ® VII. ADOPTION OF RESOLUTION ESTABLISHING A TEMPORARY MORATORIUM ON THE INSTALLATION OF SMART METERS BY PG&E City Attorney Robert Schultz stated the California Public Utilities Commission (CPUC) is the agency charged with regulating utility companies in California including the activities of PG&E; local governments do not have any direct regulatory control over utility companies. Much interest has been expressed in recent weeks regarding an undertaking by PG&E to install "Smart Meters" at their residential customer's homes. A number of residents have urged the City Council to take action to suspend the installation of these devices. This agenda item is intended to provide background and information regarding this matter. Mr. Schultz recommended the City Council adopt Resolution No. 63-10 declaring concerns regarding the installation of PG&E "Smart Meters" in Morro Bay. Councilmember Winholtz stated this is an important issue because of the possible consequences to the residents both financially and health -wise, loss of jobs, and privacy issues. She said she would like to amend #1 in the resolution as follows: 1. The City of Morro Bay urges PG&E not to install, for- a period not less than one hundred eighty f 80) d ys, any Smart Meters, repeaters, antennas and any related wireless equipment in Morro Bay until AB 37 are addressed by the State Legislature and PG&E has provided local ® residents additional information on the planned installation. Councilmember Grantham stated it appears there are more benefits than drawbacks with the SmartMeter Program. 1 Councilmember Smukler stated it is important that the residents know that the City is aware of their concerns and is taking action to help protect them. He requested to add a condition #4 to the resolution as follows: 4. The City Council of Morro Bay urges PG&E to incorporate strict privacy protections for Smart Meter customer data. Councilmember Borchard had no comment. Mayor Peters stated she is concerned with the SmartMeter Program based on cost and privacy issues. MOTION: Councilmember Winholtz moved the City Council adopt Resolution No. 63-10 declaring concerns regarding the installation of PG&E "Smart Meters" in Morro Bay with amendments to conditions #1 and 94 as stated above. The motion was seconded by Councilmember Smukler and carried with Councilmember Borchard and Councilmember Grantham voting no. (3-2) 3 E 11 VM. COMMENTS BY CURRENT MAYOR AND COUNCILMEMBERS IX. PRESENTATION OF PLAQUES TO MAYOR JANICE PETERS, COUNCILMEMBER RICK GRANTHAM AND COUNCILMEMBER BETTY WINHOLTZ X. OATH OF OFFICE AND PRESENTATION OF CERTIFICATES OF ELECTION TO MAYOR WILLIAM YATES AND COUNCILMEMBER NANCY JOHNSON AND COUNCILMEMBER GEORGE LEAGE XI. COMMENTS BY NEW MAYOR AND COUNCILMEMBERS The meeting adjourned at 7:32 p.m. Recorded by: Bndgett Kesslmg City Clerk 4 0 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, NOVEMBER 22, 2010 HAS BEEN CANCELED The next regularly scheduled meeting will be held on Monday, December 13, 2010, 6:00 p.m., Veterans Hall. ® FINANCE ADMINISTRATION 595 Harbor Street 595 Harbor Street HARBOR DEPT. 1275 Ernbaradero 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 Kennedy Wav ® City of Morro Bay City Council Agenda fission 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 — NO VEMBER 8, 2010 CLOSED SESSION— NOVEMBER 8, 2010 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 City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. CS-2 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel. • Pro e : Water Rights Negotiating Parties: Roandoak and City of Morro Bay. Negotiations: Voluntary termination of Water Service CS-3 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES. Discussions regarding Personnel Issues including two (2) public employees regarding evaluation, specifically the City Attorney and City Manager. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. C1 ® PUBLIC SESSION — NOVEMBER 8, 2010 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. 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 OCTOBER 25, 2010; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. 2 A-2 AUTHORIZATION TO REPLACE A WATER SYSTEM OPERATOR II WITH ® A WATER SYSTEM OPERATOR I; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Authorize the hiring of a Water System Operator I for the Water Division and approve the provided job description. A-3 APPROVAL OF THE SIDE LETTER WITH THE MORRO BAY FIREFIGHTERS, IAFF LOCAL 3725; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt the terms and conditions of the side letter with the Morro Bay Firefighters, IAFF Local 3725. A4 RESOLUTION APPROVING ADJUSTMENT TO LEASE SITE MAPS FOR LEASE SITES 113W AND 122W-129W: GREAT AMERICAN FISH COMPANY/VIRG'S LANDING/HARBORHUT; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 60-10. A-5 RESOLUTION NO. 59-10 ACCEPTING $100,000 GRANT FROM THE STATE OF CALIFORNIA CITIZENS OPTION FOR PUBLIC SAFETY (COPS) PROGRAM; (POLICE) RECOMMENDATION: Adopt Resolution No. 59-10. ® A-6 ADOPTION OF ORDINANCE NO. 564: REPEALING, AMENDING, AND REENACTING TITLE 14 OF THE CITY OF MORRO BAY MUNICIPAL CODE - BUILDINGS AND CONSTRUCTION; (PUBLIC SERVICES) RECOMMENDATION: Adopt Ordinance No. 564. A-7 APPROVAL OF SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT REQUEST FOR CITY PUBLIC, EDUCATION AND GOVERNMENT ACCESS FUNDS; (PUBLIC SERVICES) RECOMMENDATION: Approve the San Luis Coastal Unified School District's request for $2,000 in Public, Education and Government Access Funds. A-8 PROCLAMATION DECLARING NOVEMBER 2010 AS "NATIONAL FAMILY CAREGIVERS MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION NO. 61-10 AUTHORIZING SUBMISSION OF RURAL TRANSIT FUND GRANT APPLICATION; (PUBLIC SERVICES) ® RECOMMENDATION: Adopt Resolution No. 61-10. 3 ® B-2 CONSIDERATION OF AWARD OF REQUEST FOR PROPOSALS [NO. MB 10-T1] FOR OPERATION AND MANAGEMENT OF MORRO BAY TRANSIT (MBT) AND TROLLEY SERVICES; (PUBLIC SERVICES) RECOMMENDATION: Award Request for Proposals No. MB10-Tl to MV Transportation. B-3 APPROVAL OF AGREEMENT BETWEEN ROANDOAK AND THE CITY OF MORRO BAY FOR THE INSTALLATION OF A WELL SYSTEM AND TERMINATION OF CITY WATER SERVICES; (CITY ATTORNEY) RECOMMENDATION: Approve the Agreement between Roandoak and the City of Morro Bay for the Installation of a Well System and Termination of City Water Services. C. UNFINISHED BUSINESS C-1 REVIEW OF ANNUAL REPORT AND APPROVAL OF THE BUSINESS LICENSE RENEWAL FOR THE "FAMILY FUN ZONE" ARCADE LOCATED AT 725 EMBARCADERO SUITE 105; (POLICE) RECOMMENDATION: Approve the renewal of the business license for the ® "Family Fun Zone" Arcade with the existing conditions. D. NEW BUSINESS D-1 DISCUSSION OF THE VISITORS CENTER INCLUDING THE 2009/10 FINANCIAL REVIEW, PERCENTAGE OF FUNDING FROM THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID) AND REPRESENTATION ON THE BOARD; (ADMINISTRATION) RECOMMENDATION: Review the staff report and provide further direction on three issues with the Visitors Center: 1) financial review of the 2009/2010 fiscal year; 2) funding of the Visitors Center from the TBID Assessment; and 3) representation on the Chamber Board for Visitors Center oversight. D-2 CREATION/FUNDING OF A FACILITY REPAIR FUND [FUNDS FROM THE SALE OF 714 MARKET STREET]; (RECREATION & PARKS) RECOMMENDATION: This item has been pulled from the agenda. D-3 REQUEST TO ACCESS PARK FEE FUNDS TO UPGRADE CITY PARK IRRIGATION SYSTEMS; (RECREATION & PARKS) RECOMMENDATION: Review and approve the proposed use of Park Fee ® Funds allowing Staff to enhance and improve City Park irrigation systems. 4 D-4 DISCUSSION ON THE STATUS OF THE CURRENTLY ACKNOWLEDGED TREE COMMITTEE AND WHETHER TO MAKE IT OFFICIAL; (COUNCIL) RECOMMENDATION: Discuss what official role, if any, a tree committee should have. E. DECLARATION OF FUTURE AGENDA ITEMS F. 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. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. ® 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 5 MINUTES - MORRO BAY CITY COUNCIL ® CLOSED SESSION —NOVEMBER 8, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m. PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: 'Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Grantham moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Borchard 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 City Manager, the City's Designated ® Representative, for the purpose of reviewing the City's position regarding the terns and compensation paid to the City Employees and giving instructions to the Designated Representative. CS-2 GOVERNMENT CODE SECTION 54956.8. REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel. • Pro e : Water Rights Negotiating Parties: Roandoak and City of Morro Bay. Neeotiations: Voluntary termination of Water Service CS-3 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES. Discussions regarding Personnel Issues including two (2) public employees regarding evaluation, specifically the City Attorney and 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 Winholtz moved the meeting be adjourned. The motion was seconded by Councilmember Smukler and unanimously carried. (5-0) The meeting adjourned at 5:55 p.m. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — NOVEMBER 8, 2010 VETERANS MEMORIAL HALL 6:00 P.M. - Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember u STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Janeen Burlingame Eric Endersby Susan Lichtenbaum Rob Livick Tim Olivas Mike Pond Susan Slayton Dylan Wade Joe Woods City Manager City Attorney City Clerk Management Analyst Harbor Operations Manager Harbor Business Manager Public Services Director Police Chief Fire Chief Administrative Services Director Utilities/Capital Projects Manager Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session and noted Item CS-1 (Conference With Labor Negotiator) will be discussed under Consent Calendar Item A-3 (Approval Of The Side Letter With The Morro Bay Firefighters IAFF Local 3725); Item CS-2 (Real Property Transactions) will be discussed under Public Hearing Item B-3 (Approval Of Agreement Between Roandoak And The City Of Morro Bay For The Installation Of A Well System And Termination Of City Water Services); and Item CS-3 (Personnel Issues) - no reportable action under the Brown Act was taken. PUBLIC COMMENT Father Ed Holterhoff stated St. Timothy's Church has approved a renovation project using a local contractor._ He also announced a concert will be held at the church on Friday, November 12'b to help support this renovation project. 2 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — NOVEMBER 8, 2010 D'Onna Kennedy stated she will be forming a veterans' support group starting in mid - December at the Community Center. She also noted Morro Bay Beautiful will be holding a membership drive. Ms. Kennedy thanked those who voted for her in the November 2°d election. Colleen Stansbury, past President of the Morro Bay Senior Citizens Center, reviewed the benefits of being a member of the Senior Citizens Center. Michelle Jacquez addressed Item D-I (Discussion of the Visitors Center Including the 2009/10 Financial Review, Percentage of Funding from the Morro Bay Tourism Business Improvement District and Representation on the Board) reviewing action taken by the Tourism Business Improvement District Advisory Board on June 24, 2010. She said the motion made was to request not to increase the City's transient occupancy tax by 1%; return the Tourism Business Improvement District to 3%, and in return they would fund the Visitors Center no more than 33% effective when the Tourism Business Improvement District received the increase (I 1/l/10); that they have financial oversight of the Chamber of Commerce Board who holds the contract with the Visitors Center; they would fund the San Luis Obispo Visitors and Conference Bureau $24,477; and, they would pay AGP Video $6,000. Ms. Jacquez stated the Advisory Board also encouraged the City to consider including other retailers and restaurant owners' to possibly adopt a business ® improvement district to incorporate with the hotel business improvement district. Stewart McElhinney, President of the Morro Bay Chamber of Commerce, also addressed Item D-I stating the Chamber Board is in the process of hiring a new CEO, and requested Council postpone making a decision on the Tourism Business Improvement District until this position has been filled. Mr. McElhinney stated there should be some discussion in respect to a City representative being on the Chamber board. Ken Vesterfelt stated the Thanksgiving dinners can be delivered to those who are house bound. He also congratulated those who participated in the recent General Municipal Election on November 2"d. Mr. Vesterfelt referred to the pianist who will be performing at the church for the remodel benefit stating he is a world renowned pianist. He also stated a tentative date of April 16, 2011 has been set to hold an Emergency Vehicle/Antique Car Show. Linda Winters thanked the City Council for endorsing Proposition 21 although it did not pass in the past election. She referred to an article regarding an endowment going towards the state parks. George Leage thanked the voters who had confidence in electing him to the City Council and thanked those Councilmembers who have served the City. 3 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 8, 2010 Linda Hill stated the SLO Chapter for Americans for Safe Access thanked those who voted against Measure B-10 (Prohibiting Marijuana Dispensaries in Morro Bay). She said SLOASA requests the City Council proceed without delay to schedule the next sub- committee meeting to continue developing an ordinance and guidelines on storefront operations. Rich Donaldson, Chairman for SLOASA, thanked the City Council for their support and participation in the sub -committee meetings. Bill Yates thanked those who voted for him at the November 2°d election. Joan Solu addressed Item D-1 and shared a Power Point presentation on the City's Tourism Business Improvement District. Taylor Newton stated he has been working on the landscaping at St. Timothy's Church getting ready for the renovation project. He said the City Tree Vote will be published in the Bay News October 21st — November 17d'. Mr. Newton also acknowledged Morro Bay Beautiful and their funding assistance with the accomplishments of the Tree Committee. ® Tom Laurie addressed Item D-1 stating the Tourism Business Improvement District was created by the lodging industry for the lodging industry to promote Morro Bay in general and lodging in particular. He suggested before considering the funding of the Visitor Center, the City should consider how it would create and configure a new Visitor Center organization. Richard Morgeson stated there will be a fundraiser for the Maxine Lewis Memorial Shelter on December 1 Id' at the Los Osos Community Center. Gerry Walsh also discussed all of the events that will be happening at the fundraiser for the Maxine Lewis Memorial Shelter; she also noted donations are welcome. John Barta thanked the Mayor and Council Members for their service to the City. He referred to Item D-1 suggesting the City should hold a seat on the executive committee of the Chamber Board. Mr. Barta referred to Item D4 (Discussion on the Status of the Currently Acknowledged Tree Committee and Whether to make it Official) stating there should be no changes made to the Tree Committee. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:19 p.m.; the meeting resumed at 7:27 p.m. 4 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 8, 2010 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 OCTOBER 25, 2010; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 AUTHORIZATION TO REPLACE A WATER SYSTEM OPERATOR II WITH A WATER SYSTEM OPERATOR I; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Authorize the hiring of a Water System Operator I for the Water Division and approve the provided job description. A-3 APPROVAL OF THE SIDE LETTER WITH THE MORRO BAY FIREFIGHTERS, IAFF LOCAL 3725; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt the terms and conditions of the side letter with the Morro Bay Firefighters, IAFF Local 3725. A4 RESOLUTION APPROVING ADJUSTMENT TO LEASE SITE MAPS FOR LEASE SITES 113W AND 122W-129W: GREAT AMERICAN FISH COMPANY/VIRG'S LANDING/HARBOR HUT; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 60-10. A-5 RESOLUTION NO. 59-10 ACCEPTING $100,000 GRANT FROM THE STATE - OF CALIFORNIA CITIZENS OPTION FOR PUBLIC SAFETY (COPS) PROGRAM; (POLICE) This item was moved out of order and heard as Public Hearing Item B-4. A-6 ADOPTION OF ORDINANCE NO. 564: REPEALING, AMENDING, AND REENACTING TIRE 14 OF THE CITY OF MORRO BAY MUNICIPAL CODE - BUILDINGS AND CONSTRUCTION; (PUBLIC SERVICES) RECOMMENDATION: Adopt Ordinance No. 564. EJ MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — NOVEMBER 8, 2010 A-7 APPROVAL OF SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT REQUEST FOR CITY PUBLIC, EDUCATION AND GOVERNMENT ACCESS FUNDS; (PUBLIC SERVICES) RECOMMENDATION: Approve the San Luis Coastal Unified School District's request for $2,000 in Public, Education and Government Access Funds. A-8 PROCLAMATION DECLARING NOVEMBER 2010 AS "NATIONAL FAMILY CAREGIVERS MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember Winholtz pulled Items A-2 and A-4 from the Consent Calendar; Councilmember Smukler pulled Item A-3. MOTION: Councilmember Grantham moved the City Council approve the Consent Calendar with the exception of Items A-2, A-3 and A4. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) A-2 AUTHORIZATION TO REPLACE A WATER SYSTEM OPERATOR II WITH ® A WATER SYSTEM OPERATOR I; (ADMINISTRATIVE SERVICES) E Councilmember Winholtz stated in order to be consistent she is not in support of hiring a replacement position not knowing what the budget will look like next year. MOTION: Councilmember Borchard moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried with Council member Winholtz voting no. (4-1) A-3 APPROVAL OF THE SIDE LETTER WITH THE MORRO BAY FIREFIGHTERS, IAFF LOCAL 3725; (ADMINISTRATIVE SERVICES) Councilmember Smukler recognized the first step in the two -tiered benefit package in the negotiation process. MOTION: Councilmember Smukler moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) 3 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING—NOVEMBER 8, 2010 A4 RESOLUTION APPROVING ADJUSTMENT TO LEASE SITE MAPS FOR LEASE SITES 113W AND 122W-129W: GREAT AMERICAN FISH COWANY/VIRG'S LANDING/HARBOR HUT; (PUBLIC SERVICES) Councilmember Winholtz expressed concern with extending these lease sites so far into the channel and beyond the t-pier. Harbor Business Manager Sue Lichtenbaum reviewed the adjustment to the lease site maps for Council clarification and information. Public Services Director Rob Livick clarified the adjustment to the lease sites extends 10 feet beyond the t-pier and 100 feet into the channel. MOTION: Councilmember Grantham moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION NO. 61-10 AUTHORIZING SUBMISSION OF RURAL ® TRANSIT FUND GRANT APPLICATION; (PUBLIC SERVICES) Management Analyst Janeen Burlingame stated on December 5, 2002, the San Luis Obispo Council of Governments (SLOCOG) adopted Resolution No. 02-16 to create a Rural Transit Fund (RTF) program. The creation of the program was designed to streamline the lengthy federal process of applying for, receiving and using Federal Transportation Administration Section 5311 funds for rural transit agency projects by programming the region's share of Section 5311 funds to the Regional Transit Authority (RTA) for operations and exchanging it with a like amount of State Transportation Development Act (TDA) funds, programmed through SLOCOG, to create the RTF. SLOCOG, RTA and City staff worked on developing program policies and procedures that would govern the RTF program for SLOCOG Board approval that would preserve the intent of the Section 5311 program in terms of who and what projects would be eligible for funds. The SLOCOG Board adopted the policies and procedures in October 2003, and the City of Morro Bay is an eligible recipient to apply for these funds. Approximately $520,000 is available for competitive distribution for the FY 2011/2012 cycle. Applications are due December 3, 2010 and applicants are requested to rank multiple project applications in case all requests cannot be funded. The City of Morro Bay intends to submit an application for the FY 2011/20012 cycle for: 1) operating assistance for Morro Bay Transit; and, 2) a bus stop information display case project. Ms. Burlingame recommended the City Council adopt Resolution No. 61-10 authorizing submission of the RTF grant applications for operating assistance and the purchase of various materials, supplies and equipment needed for operation of the Morro Bay Transit and Trolley services. ® Mayor Peters opened the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 8, 2010 Councilmember Smukler stated he was disappointed that there was no reference to the community bus concept, which Council made a motion directing staff to investigate and develop that concept as much as possible. Councilmember Grantham stated he is supportive; however, he would encourage using parking in -lieu funds but not Measure Q funds. Councilmember Winholtz stated the biggest concern she has received was the cost of the dial -up program, and she was surprised at the small amount that was being requested in this application. She agreed that there were ample funds in the Accumulation Fund and to not use Measure Q funds. Mayor Peters stated she is supportive; however, she does not support using Measure Q funds. MOTION: Councilmember Grantham moved the City Council adopt Resolution No. 61-10 authorizing submission of the RTF grant applications for operating assistance and the purchase of various materials, supplies and equipment needed for operation of the Morro Bay Transit and Trolley services from ® the Accumulation Fund. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) B-2 CONSIDERATION OF AWARD OF REQUEST FOR PROPOSALS [NO. MB 10-TI] FOR OPERATION AND MANAGEMENT OF MORRO BAY TRANSIT AND TROLLEY SERVICES; (PUBLIC SERVICES) Management Analyst Janeen Burlingame stated the current six month extension agreement awarded by Council in May 2010 with MV Transportation for operation and management of the Morro Bay Transit and Trolley services expires December 31, 2010. Staff developed a Request for Proposals (RFP) and draft agreement for dissemination on September 10, 2010 with proposals due October 8, 2010. A notice was placed in the Tribune, Los Angeles Times, the California Association for Coordinated Transportation website, and City website advertising the RFP. A copy of the RFP specifications and notice was sent to eight (8) transportation providers. A pre -proposal conference was held on September 22, 2010 and representatives from five transportations providers were in attendance. Two proposals were received by the October 8, 2010 due date and reviewed by an evaluation committee who made a recommendation to the Public Works Advisory Board and Council regarding award of the RFP. Proposals were received from MV Transportation and the San Luis Obispo Regional Transit Authority (RTA). The new contract commencing on January 1, 2010 will be for three years with the possibility of five one-year extensions. The Public Works Advisory Board considered the RFP proposals at its October 27, 2010 meeting and concurred with the evaluation committee's recommendation to award the RFP to MV Transportation. Ms. Burlingame recommended the City Council award RFP No. MB 10-T1 to MV Transportation. ® Mayor Peters opened the hearing for public comment. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 8, 2010 Dan McKee, Regional Vice President MV Transportation, stated they are looking forward to continuing as the City's service provider. He said MV Transportation has been running the City's service since 2001 and in the past several years has developed a true partnership with the City. Susan Brown, General Manager for MV Transportation, stated transit is a public service business that she enjoys, and working with MV Transportation has been a pleasure to work with who treats their employees well. Mayor Peters closed the public comment hearing. Councilmember Grantham thanked MV Transportation for their service to the citizens of Morro Bay. Councilmember Winholtz stated she would hope that future Council will make transportation a high priority otherwise she is supportive of MV Transportation. Councilmember Smukler stated this proposal is very competitive and he is supportive of ® MV Transportation. He said he would like staff to work with alternative groups such as the Senior Center to encourage and promote programs such as "friendly ride". Councilmember Borchard stated she is disappointed in the process based on the action Council took in April and the lack of information regarding alternative sources of transportation. C� Mayor Peters stated the Senior Center is considering a community bus service, and noted the City does not have the funding to provide alternative sources of transportation. MOTION: Councilmember Smukler moved the City Council: 1) award RFP No. MB 10-T1 to MV Transportation with a three-year contract and one year option; 2) direct staff continue engagement in the Transit Efficiencies Group evaluating and developing the concept of the Estero Sub -Regional Transit Plan, 3) direct staff to further develop support and partnership of alternative community transit opportunities such as the "friendly ride" program and the potential to share a calling support center with the Senior Citizens Center. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) E MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — NOVEMBER 8, 2010 B-3 APPROVAL OF AGREEMENT BETWEEN ROANDOAK AND THE CITY OF MORRO BAY FOR THE INSTALLATION OF A WELL SYSTEM AND TERMINATION OF CITY WATER SERVICES; (CITY ATTORNEY) City Attorney Robert Schultz stated the City entered into an Agreement with Roandoak of God in 1982. The 1982 Agreement granted the City of Morro Bay the right to extract water from Well No. 9A in exchange for the City providing free water service to Roandoak. In January 2010, the City Council authorized the termination of the 1982 Agreement. With the termination of this Agreement, the City no longer has the use of Well No. 9A and Roandoak has been paying for City water. Because of the degradation to the water quality and the changes in regulations, the City no longer has the ability to both maintain the pumping of wells in *the Chorro Groundwater Basin as well as provide water that meets all State and Federal standards to customers in the Chorro Valley basin. In December of 2008, the California Department of Public Health inactivated all of the wells in the Ashurst well field including Well No. 9A. Until a method of providing treatment for nitrate removal or blending is in place, the City is unable to use these wells as a supply source. The degradation of water quality in the Chorro Valley, coupled with the connection of water services to the pumping line, and further complicated by more stringent regulations, will continue to strain the City's water resources until resolved. Pursuant to City Council direction, Staff has negotiated the terms for the removal of ® water services to the Roandoak property. Mr. Schultz recommended the City Council review the Agreement between Roandoak and the City of Morro Bay and approves the Agreement. Mayor Peters opened the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. MOTION: Councilmember Borchard moved the City Council approve the Agreement between Roandoak and the City of Morro Bay for the installation of a well system and termination of City water services. The motion was seconded by Councilmember Grantham. Councilmember Winholtz stated she would be voting in opposition to this motion because she disagrees with the nebulous term "historical water -use" in the last "Whereas" in the Recitals of the Resolution, noting it is leaving it opened too wide. VOTE: The motion carried with Councilmember Winholtz voting no. (4-1) 10 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — NOVEMBER 8, 2010 B4 RESOLUTION NO. 59-10 ACCEPTING $100,000 GRANT FROM THE STATE OF CALIFORNIA CITIZENS OPTION FOR PUBLIC SAFETY (COPS) PROGRAM; (POLICE) Police Chief Tim Olivas stated since 1996 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." These funds are also known as Supplemental Law Enforcement Services Funding (SLESF). The legislation requires a 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. This report requirement was delayed this year due to the delay in the State budget adoption. Since the recent passage of the State budget, law enforcement agencies are now preparing the required resolutions. The State Legislature has indicated that local law enforcement agencies are scheduled to receive a minimum of $100,000 in COPS grant funds. These funds will be tracked separately by the Finance Department in a separate account with any interest earned credited to the account. To comply with the COPS program, each City Council is requested to act upon the written request from the Police Chief. This report is presented to Council in compliance with annual hearing/reporting requirements and to adopt the proposed expenditure plan by the ® Police Department. Chief Olivas stated it is appropriate to use these grant funds for the Property Evidence Technician position and equipment as it enhances front line law enforcement, and recommended the City Council adopt Resolution No. 59-10 authorizing the proposed spending plan for the Citizens Option for Public Safety (COPS) grant program. Mayor Peters opened the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. MOTION: Councilmember Winholtz moved the City Council adopt Resolution No. 59-10 authorizing the proposed spending plan for the Citizens Option for Public Safety (COPS) grant program. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) Mayor Peters called for a break at 8:43 p.m.; the meeting resumed at 8:50 p.m. C. UNFINISHED BUSINESS C-1 REVIEW OF ANNUAL REPORT AND APPROVAL OF THE BUSINESS LICENSE RENEWAL FOR THE "FAMILY FUN ZONE" ARCADE LOCATED AT 725 EMBARCADERO SUITE 105; (POLICE) ® This item was continued to the December 13, 2010 City Council meeting. 11 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — NOVEMBER 8, 2010 D. NEW BUSINESS D-I DISCUSSION OF THE VISITORS CENTER INCLUDING THE 2009/10 FINANCIAL REVIEW, PERCENTAGE OF FUNDING FROM THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT AND REPRESENTATION ON THE BOARD; (ADMINISTRATION) City Manager Andrea Lueker stated on June 28, 2010 during the annual review of the Visitors Center Agreement, the City Council amended the Agreement to include language regarding a financial review of the Visitors Center operations at the end of the 2009/10 fiscal year. In September 2010, the Chamber of Commerce provided this information to the City Administrative Services Director, and she performed a financial review. Also during that same City Council meeting, the Council discussed placing a measure on the November 2010 ballot, approving an increase in the City's Transient Occupancy Tax (TOT). The City Council discussed the "give and take" between placing this item on the ballot or changing the Tourism Business Improvement District (TBID) assessment from 2% (which went into effect in June 2010) back to 3% (which had been collected from June 2009 through May 2010). During that discussion, the City Council was presented with the recommendation from the TBID Board that was passed on June 24, 2011. The TBID Board's recommendation was that the City forgoes efforts to increase the TOT, but agree to move forward with increasing the TBID assessment from 2% to 3%. The TBID Board's motion also included funding the Visitors Center at 33%, as soon as the TBID assessment rate was changed from 2 to 3%, and proceeds were realized from that change. A third topic, which has been raised several times during past City Council discussions of the Visitors Center, was representation from City staff on the Chamber Board for oversight of the Visitors Center operations. Ms. Lueker recommended the City Council provide direction on three issues with regard to the Visitors Center: 1) financial review of the 2009/2010 fiscal year; 2) funding of the Visitors Center from the TBID Assessment; and 3) representation on the Chamber Board for Visitors Center oversight. Councilmember Winholtz stated she would support using some of the City's promotions money and hiring someone in-house to manage promotions. She does not feel this should be placed as a primary responsibility of the City Manager but be designated to another City staff person. Councilmember Smukler stated this is a time to take a look at what would best serve the stakeholders for the money and what is going to create the most efficient and inviting Visitor Center and what is going to give the City the best value. He said he would like to have a roundtable discussion with the Tourism Business Improvement District Advisory Board, Community Promotions Committee and members from the Chamber before reporting to Council. Councilmember Grantham stated he would support waiting until February when the new Chamber board members are installed. 12 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — NOVEMBER 8, 2010 Councilmember Borchard stated there is a need for oversight from a City representative, and since the City Manager already has been the representative on the Community Promotions Committee and Tourism Business Improvement District Advisory Board she should meet with the stakeholders. Mayor Peters stated an oversight committee is needed right away, and someone from the City has to be on the executive board. MOTION: Councilmember Borchard moved the City Council: 1) direct staff, due to the change in Executive Directors and Board members, to meet with the new Chamber Executive, review the past Visitor Center profit and loss statement with the new Chamber Executive Director, discuss further plans based on the new Executive Director's plan, and report back to City Council in 60 days; 2) approve 33% of funding (not to exceed $50,000) from the Tourism Business Improvement District, beginning with the month of November; and 3) recommend to the Chamber of Commerce that the City of Morro Bay have a designated "voting" position on the executive board held by the City Manager or his/her designee, and to include a seat on the board by a Tourism Business Improvement District Advisory Board Member as long as they have funding for the Visitors Center. The motion was seconded by Councilmember Grantham and ® carried unanimously. (5-0) D-2 CREATION/FUNDING OF A FACILITY REPAIR FUND [FUNDS FROM THE SALE OF 714 MARKET STREET); (RECREATION & PARKS) n This item was continued to the December 13, 2010 City Council meeting. D-3 REQUEST TO ACCESS PARK FEE FUNDS TO UPGRADE CITY PARK IRRIGATION SYSTEMS; (RECREATION & PARKS) Recreation & Parks Director Joe Woods stated the proposed irrigation upgrades to City Park would allow for the centralized control of all turf irrigated properties incorporating smart technology that could extend, decrease, or eliminate programmed irrigation events based on current weather conditions. Additional benefits of this automation include date logging and the ability to identify and alert staff immediately about irregularities such as leaks and no flow events, and the ability to automatically shut down entire systems in the event of line breaks. The Recreation and Parks Commission (RPC) reviewed staffs request at their regular meeting on October 26, 2010. The RPC agreed the proposed project would be beneficial and appropriate use of Park Fee funds and it was motioned and unanimously carried to recommend approval by the City Council. Mr. Woods recommended the City Council approve the proposed use of Park Fee funds allowing staff to enhance and improve City Park irrigation systems. 13 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 8; 2010 MOTION: Councilmember Smukler moved the City Council approve the use of $35,000 of Park Fee Funds for the upgrade to City Park irrigation systems. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) DA DISCUSSION ON THE STATUS OF THE CURRENTLY ACKNOWLEDGED TREE COMMITTEE AND WHETHER TO MAKE IT OFFICIAL; (COUNCIL) Councilmember Winholtz stated over the last two years, an unofficial, meaning not City Council appointed, group of residents known as the tree committee has been recognized by City Council and used by staff. Their influence has brought changes to the City's public appearance and visual resources by changing the public physical environment. Councilmember Winholtz stated due to their increasing influence, a discussion on the membership and status of this group would be appropriate. MOTION: Councilmember Borchard moved the City Council make no changes to the Tree Committee at this time. The motion was seconded by Councilmember Grantham and carried with Councilmember Winholtz voting no. (4-1) 0 E. DECLARATION OF FUTURE AGENDA ITEMS ADJOURNMENT The meeting adjourned at 10:01 p.m. Recorded by: Bridgett Kessling City Clerk C 14 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — OCTOBER 25, 2010 CLOSED SESSION — OCTOBER 25, 2010 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 five (5) parcels. • Property: Market/Pacific ® Negotiating Parties: Salwasser and City of Morro Bay Negotiations: Voluntary Purchase and Sale. • Property: Moorage for Two Vessels in Harbor Negotiating Parties: AIS Construction and City of Morro Bay Negotiations: Six -Month License Terms and Conditions. • Property: Lease Sites 124-128/124W and 128W and 113W; (1215 Embarcadero) Negotiating Parties: Sea One Solutions (SOS) LLC and City of Morro Bay Negotiations: Lease Terms and Conditions. • Property: Outrigger - Lease Site 87-88/87W-88W; (833 Embarcadero) Negotiating Parties: V. Lease and City of Morro Bay Negotiations: Lease Terms and Conditions. • Property: Surf Street Parking Lot Negotiating Parties: Maritime Museum and City of Morro Bay Negotiations: Terms and Conditions of Lease. CS-2 GOVERNMENT CODE SECTION 54957, PERSONNEL ISSUES. Discussions regarding Personnel Issues including two (2) public employees regarding evaluation, specifically the City Attorney and City Manager. ® IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. PUBLIC SESSION — OCTOBER 25, 2010 ® 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. 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 OCTOBER 11, 2010; (ADMINISTRATION) 41 RECOMMENDATION: Approve as submitted. 2 ® A-2 APPROVAL OF A SIX-MONTH LICENSE AGREEMENT TO ALLOW MOORAGE FOR TWO VESSELS OWNED BY AIS CONSTRUCTION; (HARBOR) RECOMMENDATION: Adopt Resolution No. 54-10. A-3 RESOLUTION TO APPROVE AMENDMENT #5 TO THE LEASE AGREEMENT FOR LEASE SITE 87-88/87W-88W LOCATED AT 833 EMBARCADERO- OUTRIGGER RESTAURANT; (HARBOR) RECOMMENDATION: Adopt Resolution No. 55-10. A-4 APPROVAL OF ALEASE AGREEMENT BETWEEN THE CITY OF MORRO BAY AND SEA ONE SOLUTIONS (SOS) LLC, FOR LEASE SITES 124- 128/124W AND 128W AND 113W LOCATED AT 1215 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 56-10. A-5 APPROVAL OF RESOLUTION AUTHORIZING THE CITY OF MORRO BAY TO ENTER INTO VESSEL TURN -IN PROGRAM (VTIP) CONTRACT WITH THE DEPARTMENT OF BOATING AND WATERWAYS; (HARBOR) ® RECOMMENDATION: Adopt Resolution No. 57-10. 11 A-6 STATUS REPORT ON WATER USAGE FOR SEPTEMBER 2010; (PUBLIC SERVICES) RECOMMENDATION: Receive report for information. A-7 RESOLUTION IN SUPPORT OF PROPOSITION 21 - THE STATE PARKS AND WILDLIFE CONSERVATION TRUST FUND ACT OF 2010; (CITY COUNCIL) RECOMMENDATION: Adopt Resolution No. 53-10. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 INTRODUCTION AND FIRST READING OF ORDINANCE NO. 564: REPEALING, AMENDING, AND REENACTING TITLE 14 OF THE CITY OF MORRO BAY MUNICIPAL CODE - BUILDINGS AND CONSTRUCTION; (PUBLIC SERVICES) RECOMMENDATION: Approve Ordinance No. 564 for first reading and introduction. C. UNFINISHED BUSINESS — NONE. 3 D. NEW BUSINESS ® D-1 RESOLUTION DETERMINING ISSUANCE OF AN ALCOHOLIC BEVERAGE CONTROL PERMIT FOR A WINE TASTING ROOM LOCATED AT 1099 EMBARCADERO; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 58-10. D-2 REVIEW AND APPROVAL OF THE VIDEO PRODUCTION SERVICES & LOCAL GOVERNMENT CHANNEL INSERTION POINT MANAGEMENT AGREEMENT WITH APG VIDEO, INC.; (ADMINISTRATION) RECOMMENDATION: Approve the Video Production Services and Local Government Channel Insertion Point Management Agreement with AGP Video, Inc. D-3 APPROVAL TO SEND LETTER TO THE SAN LUIS OBISPO COUNTY BOARD OF SUPERVISORS RECOMMENDING THE BOARD SELECT MARY ANN REISS AS THE CITY COUNCIL MEMBER NOMINEE FOR APPOINTMENT TO THE CALIFORNIA COASTAL COMMISSION; (CITY COUNCIL) RECOMMENDATION: Approve sending the recommended letter to the San Luis Obispo County Board of Supervisors. ® D-4 DISCUSSION OF WHETHER TO HOLD A JOINT PLANNING COMMISSION/CITY COUNCIL MEETING ON NOVEMBER 15, 2010 AND IF A MEETING IS TO BE HELD, TOPICS TO BE DISCUSSED; (PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff accordingly. E. DECLARATION OF FUTURE AGENDA ITEMS F. 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. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. 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 — OCTOBER 25, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Borchard moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Smukler and unanimously carried. (5-0) Mayor Peters read the Closed Session Statement. CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY isTRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to five (5) parcels. • Property: Market/Pacific Negotiating Parties: Salwasser and City of Morro Bay Negotiations: Voluntary Purchase and Sale. • Property: Moorage for Two Vessels in Harbor Negotiating Parties: AIS Construction and City of Morro Bay Negotiations: Six -Month License Terms and Conditions. • Property: Lease Sites 124-128/124W and 128W and 113W; (1215 Embarcadero) Negotiating Parties: Sea One Solutions (SOS) LLC and City of Morro Bay Negotiations: Lease Terms and Conditions. • Property: Outrigger - Lease Site 87-88/87W-88W; (833 Embarcadero) Negotiating Parties: V. Leage and City of Morro Bay Negotiations: Lease Terms and Conditions. • Property: Surf Street Parking Lot Negotiating Parties: Maritime Museum and City of Morro Bay Negotiations: Terms and Conditions of Lease. E ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — OCTOBER 25, 2010 CS-2 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES. Discussions regarding Personnel Issues including two (2) public employees regarding evaluation, specifically the City Attorney and City Manager. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:30 p.m. MOTION: Councilmember Borchard moved the meeting be adjourned. The motion was seconded by Councilmember Grantham and unanimously carried. (5-0) The meeting adjourned at 5:30 p.m. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2010 VETERANS MEMORIAL HALL - 6:00 P.M. 11 E Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Eric Endersby Susan Lichtenbaum Rob Livick Tim Olivas Dylan Wade Joe Woods ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE City Manager City Attorney City Clerk Harbor Operations Manager Harbor Business Manager Public Services Director Police Chief Utilities/Capital Projects Manager Recreation & Parks Director PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and discussed real property transactions. The City Council did take, action on the Market/Pacific Street property, which is currently in escrow; the City Council amended the escrow instructions to allow for a nine month extension to install the public elevator and also to accept a deed of trust instead of a bond or line of credit to perform the elevator installation. Mr. Schultz listed the remaining property transactions discussed by Council; however, no reportable action under the Brown Act was taken. He also noted the Personnel issue was not discussed and will be continued to the next City Council meeting on November 8, 2010. PUBLIC COMMENT Carrie Burton thanked those who contributed to the Del Mar Elementary School Jog -a -Thou and making it a successful event to raise funds for the school's field trips, school supplies, text books and technology. Haley Rivalry thanked everyone for their support towards Del Mar Elementary School. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2010 Madurai, Morro Bay High School City Council representative, gave an update on high school events. Liz Bednorz, Beach House Bistro and Laura from Harbor Floral Studio announced a Halloween Open House will be held in North Morro Bay by the North Morro Bay Business Co-op. Alex Eberline expressed concern with the local economy and lack of entertainment for young people and would like to promote a free local music festival. He suggested Del Mar Park as a location for this festival, and requested assistance in sponsorship for this event. The following people expressed support for Item A-7 (Resolution in Support of Proposition 21 - The State Parks and Wildlife Conservation Trust Fund Act of 2010): Louise Abbott, Norma Whiteman, Linda Winters, Mary Golden and June Krystoff-Jones. Joan Solu representing the Tourism Business Improvement District shared the new visitor guides, which have been received very well by tourists. She also reviewed the Savor the is Central Coast event as well as the Travel Writer tours that brought writers to Morro Bay. Nancy Castle requested Council support by approving Item D-2 (Review and Approval of the Video Production Services & Local Government Channel Insertion Point Management Agreement With AGP Video, Inc.). She also announced the Historical Society will be meeting on November 7's with Botso Korisheli being the guest speaker. 11 Keith Taylor thanked Mayor Peters, Councilmember Grantham and Councilmember Winholtz for their support in the building of the new fire station and their assistance with Measure Q. John Barta addressed the Wastewater Treatment Plant upgrade and reviewed points of interest with the PERC Corporation proposal. Nancy Johnson stated she was pleased to be part of the planting of the City trees last weekend which was a great event. Robin Cole expressed concern with the removal of a Monterey Cypress tree adjacent to her house on Juniper Street which PG&E has posted a notice that they are going to destroy. Bill Yates announced his candidacy for Mayor in the upcoming election, and asked everyone to vote on November 2°d. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2010 Dorothy Cutter expressed her support for Betty Winholtz who is running for Mayor in the upcoming election. Anne Reeves expressed her displeasure with the "Seagull Sentinel" campaign literature that was mailed out to local residents. David Nelson expressed concern with the, removal of the Monterey Cypress tree on Juniper Street that is going to be removed by PG&E. He referred to the Wastewater Treatment Plant noting it is old technology, and there are alternatives available that the City should be considering. Garry Johnson stated there will be a book si�ning of the Then and Naw*book by authors Roger Castle and Gary Ream on November 7 . He said he was a leader for the Photo Expo and lead classes through the State Park which was beautiful and is why Proposition 21 is important to the Central Coast. Natalia Merzoyan stated she would also like to save the Monterey Cypress tree on Juniper Street. She expressed her support for Betty Winholtz who is running for Mayor in the is upcoming election, and her disappointment in the negative campaigning that has been going on during this election. E Nancy Bast expressed her displeasure with the "Seagull Sentinel" campaign literature that was mailed out to local residents. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:30 p.m.; the meeting resumed at 7:40 p.m. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF OCTOBER 11, 2010; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2010 A-2 APPROVAL OF A SIX-MONTH LICENSE AGREEMENT TO ALLOW MOORAGE FOR TWO VESSELS OWNED BY AIS CONSTRUCTION; (HARBOR) RECOMMENDATION: Adopt Resolution No. 54-10. A-3 RESOLUTION TO APPROVE AMENDMENT 95 TO THE LEASE AGREEMENT FOR LEASE SITE 87-88/87W-88W LOCATED AT 833 EMBARCADERO- OUTRIGGER RESTAURANT; (HARBOR) RECOMMENDATION: Adopt Resolution No. 55-10. A-4 APPROVAL OF A LEASE AGREEMENT BETWEEN THE CITY OF MORRO BAY AND SEA ONE SOLUTIONS (SOS) LLC, FOR LEASE SITES 124- 128/124W AND 128W AND 113W LOCATED AT 1215 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 56-10. A-5 APPROVAL OF RESOLUTION AUTHORIZING THE CITY OF MORRO BAY TO ENTER INTO VESSEL TURN -IN PROGRAM (VTIP) CONTRACT WITH THE DEPARTMENT OF BOATING AND WATERWAYS; (HARBOR) RECOMMENDATION: Adopt Resolution No. 57-10. A-6 STATUS REPORT ON WATER USAGE FOR SEPTEMBER •2010; (PUBLIC SERVICES) RECOMMENDATION: Receive report for information. A-7 RESOLUTION IN SUPPORT OF PROPOSITION 21 - THE STATE PARKS AND WILDLIFE CONSERVATION TRUST FUND ACT OF 2010; (CITY COUNCIL) RECOMMENDATION: Adopt Resolution No. 53-10. Councilmember Smukler pulled Item A-2 from the Consent Calendar; Councilmember Winholtz pulled Item A-6 and Mayor Peters pulled Item A-7. MOTION: Councilmember Grantham moved the City Council approve the Consent Calendar with the exception of Items A-2, A-6 and A-7. The motion was ® seconded by Councilmember Winholtz and carried unanimously. (5-0) 6 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2010 A-2 APPROVAL OF A SIX-MONTH LICENSE AGREEMENT TO ALLOW MOORAGE FOR TWO VESSELS OWNED BY AIS CONSTRUCTION; (HARBOR) Councilmember Smukler verified that AIS Construction would be good neighbors to the existing boats and slips in the area where its boats are being moored, and the City would be the lead agency to receive concerns or complaints regarding their vessels during their stay in the harbor. He also responded to concerns regarding view shed noting their utility vessel will be housed closer to the Harbor Department office pier which is a more utilitarian use of the Embarcadero. Councilmember Smukler referred to the inspection of their seaworthiness stating they require a full inspection by their insurance company. MOTION: Councilmember Smukler moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-6 STATUS REPORT ON WATER USAGE FOR SEPTEMBER 2010; (PUBLIC SERVICES) is Councilmember Winholtz referred to Future Water Usage, and the appeal to the State for an exception to the City pumping in the Chorro Valley should the City need water during the month of November when the water system will not be able to rely on the State Water Project deliveries. She said to be consistent she would like to express her desire to talk to the California Men's Colony about receiving water from them instead. Councilmember Smukler stated since the City is entering the State Water shutdown period, to encourage water savings during this period of time. MOTION: Councilmember Grantham moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) A-7 RESOLUTION IN SUPPORT OF PROPOSITION 21 - THE STATE PARKS AND WILDLIFE CONSERVATION TRUST FUND ACT OF 2010; (CITY COUNCIL) Councilmember Smukler expressed support for Proposition 21 - The State Parks and Wildlife Conservation Trust Fund Act of 2010. Mayor Peters and Councilmember Borchard stated they will vote in favor; however, they both expressed it was unfair to impose this fee on voters due to the bad economic times. 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2010 MOTION: Councilmember Smukler moved the City Council approve Item A-7 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 INTRODUCTION AND FIRST READING OF ORDINANCE- NO. 564: REPEALING, AMENDING, AND REENACTING TITLE 14 OF THE CITY OF MORRO BAY MUNICIPAL CODE - BUILDINGS AND CONSTRUCTION; (PUBLIC SERVICES) Public Services Director Rob Livick stated in addition to adopting by reference the 2010 California Building Standards Code, this update reorganizes Title 14 and removes sections of the existing ordinance that are dated or otherwise superseded by other state laws or regulations. The local amendments of the existing ordinance are codified as modifications to the California Building Standards Code where required by state law. Division II of Chapter 1 of the California Building Code is adopted and amended as the administrative provisions of Title 14. The ordinance adopts the new state Residential and. Green Building Codes. Mr. ® Livick recommended the City Council introduce for first reading and introduction by number and title only, Ordinance No. 564; repealing, amending, and reenacting Title 14 of the City of Morro Bay Municipal Code (Buildings and Construction) to incorporate the 2010 California Building Standards Code, as adopted by the State of California and the local modifications thereto. Mayor Peters opened the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. Councilmember Winholtz suggested an amendment to Section 113.4 (Board of Appeals - Appointment) noting she would like the selection of this Board to follow the same format as the other appointed City boards and committees. Mr. Livick requested Council include the addition of words "combustible materials" to Section 3.08.1.1.1 in the amendment; Council concurred. MOTION: Councilmember Winholtz moved the City Council approve Ordinance No. 564 for introduction and first reading, as amended by Council. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) City Manager Andrea Lueker read Ordinance No. 564 by number and title only. 0 C. UNFINISHED BUSINESS — NONE. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2010 D. NEW BUSINESS D-1 RESOLUTION DETERMINING ISSUANCE OF AN ALCOHOLIC BEVERAGE CONTROL PERMIT FOR A WINE TASTING ROOM LOCATED AT 1099 EMBARCADERO; (CITY ATTORNEY) City Attorney Robert Schultz stated Giovanni Michael DeGarimore applied for a permit from the Department of Alcoholic Beverage Control to operate a Wine Tasting Room at 1099 Embarcadero. The Department of Alcoholic Beverage Control (ABC) automatically denies permits to sell alcoholic beverages if there is an `undue concentration" of licenses in the census tract (Business and Professions Code Section 23958). In order for the ABC to issue the license, they require the local governing body to determine that the "public convenience and necessity" would be'served by issuance of the license. The ABC requires the governing board/council to pass a resolution or a signed letter on official letterhead stating whether or not the issuance of the applied license would serve as a public convenience or necessity. The Police Department has reviewed this application and has no significant concerns at this time in regard to a wine tasting room at this location. Furthermore, the approval of Resolution 58- ® 10 will support the City Council's goals and priorities to develop ways to attract businesses to Morro Bay. Mr. Schultz recommended the City Council adopt Resolution 58-10 determining that issuance of an ABC permit for a wine tasting room located at 1099 Embarcadero would serve as a public convenience or necessity. MOTION: Councilmember Borchard moved the City Council adopt Resolution 58-10 determining that issuance of an ABC permit for a wine tasting room located at 1099 Embarcadero would serve as a public convenience or necessity. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) D-2 REVIEW AND APPROVAL OF THE VIDEO PRODUCTION SERVICES & LOCAL GOVERNMENT CHANNEL INSERTION POINT MANAGEMENT AGREEMENT WITH APG VIDEO, INC.; (ADMINISTRATION) City Manager Andrea Lueker stated the Video Production Services and Local Government Channel Insertion Point Management Agreement have been on a month to month extension for some time. Staff and AGP Video have successfully completed negotiations and agreed upon an agreement which outlines services and funding. The 2010/I1 Fiscal Year budget was adopted with the allocation of $60,000 of funding for AGP Video, Inc. for the televising. of City Brown Act meetings. Ms. Lueker recommended the City Council approve the Video Production Services & Local Government Channel Insertion Point Management Agreement ® with APG Video, Inc. E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2010 MOTION: Mayor Peters moved the City Council approve the Video Production Services & Local Government Channel Insertion Point Management Agreement with APG Video, Inc. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) D-3 APPROVAL TO SEND LETTER TO THE SAN LUIS OBISPO COUNTY BOARD OF SUPERVISORS RECOMMENDING THE BOARD SELECT. MARY ANN REISS AS THE CITY COUNCIL MEMBER NOMINEE FOR APPOINTMENT TO THE CALIFORNIA COASTAL COMMISSION; (CITY COUNCIL) Mayor Peters stated Supervisor Katcho Achadjian has served as the Central Coast representative on the California Coastal Commission for several years, and Pismo Beach Mayor Mary Ann Reiss has been serving as his alternate. After the November election, Katcho will no longer be eligible to hold this position and Mayor Reiss is requesting support for appointment to succeed him. Mayor Reiss has participated in several CCC meetings as the alternate, and has often appeared before the CCC on behalf of Pismo Beach issues. Her long time experience in Pismo Beach city government and with coastal issues makes her an ideal candidate to represent the Central Coast. Mayor Peters requested the City Council ® approve sending a letter to the San Luis Obispo County Board of Supervisors recommending the Board Select Mary Ann Reiss as the City Council Member nominee for appointment to the California Coastal Commission. The City Council requested one amendment to the first sentence of the letter stating — "The City of Morro Bay has ppreeiated acknowledges the service of Supervisor Katcho Achadjian..." MOTION: Mayor Peters moved the City Council approve sending the letter as amended to the San Luis Obispo County Board of Supervisors recommending the Board Select Mary Ann Reiss as the City Council Member nominee for appointment to the California Coastal Commission. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) D4 DISCUSSION OF WHETHER TO HOLD A JOINT PLANNING COMMISSION/CITY COUNCIL MEETING ON NOVEMBER 15, 2010 AND IF A MEETING IS TO BE HELD, TOPICS TO BE DISCUSSED; (PUBLIC SERVICES) Public Services Director Rob Livick stated Morro Bay Municipal Code Section 2.28.120 states the Planning Commission will meet twice annually with the City Council to discuss proposed policies, programs, goals and objectives, budgeting, future planning, or any other planning matter requiring joint deliberation. The scheduled meeting date (November 15, ® 2010) for the joint meeting occurs after the City's election of a new Mayor and City T ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2010 Councilpersons. This election will result in a change in the make-up of the City Council and the potential change to the Planning Commission. Mr. Livick recommended the City Council provide direction to staff on whether to hold the joint City Council/Planning Commission meeting on November 15, 2010. If the meeting is to be held, staff recommends the City Council consider and discuss potential discussion topics for the November 15, 2010 joint City Council/Planning Commission meeting; including a review of the Planning Commission's recommendations for meeting topics that were acted on at their October 18, 2010 meeting. Mayor Peters stated she feels the Council should wait until after the election to hold this joint meeting so that the newly -elected City Council could meet with perhaps newly -appointed Planning Commissioners to discuss goal setting for the City. Councilmember Winholtz stated she feels the Council should uphold the municipal code which states the City Council shall meet with the Planning Commission twice a year. She said it is a valuable meeting for the public and public officials, and another meeting will be held at the beginning of next year again as well. is Councilmember Grantham stated the joint meetings between the City Council and Planning Commission should be scheduled in January/February and August/September of each year. C Councilmember Smukler stated he would like to hold the joint meeting previously scheduled to discuss the important issues brought forward by the Planning Commission. Councilmember Borchard stated she supports deferring the meeting due to the change in the City Council and perhaps the Planning Commission. She said she agrees that future joint meetings should be scheduled in January/February and August/September. Councilmember Winholtz stated she will rebut in that the top body of the City is going to violate the code just for convenience when we expect other people and ourselves to abide by the municipal code in responding to all the laws that we have. MOTION: Mayor Peters moved the City Council postpone the joint City CouncilIPlanning Commission meeting scheduled on November 15, 2010, and defer the joint meeting to when the new officers are in place. The motion was seconded by Councilmember Grantham and carried with Councilmember Smukler and Councilmember Winholtz voting no. (3-2) 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2010 E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested to agendize a discussion on the role of the Tree Committee; there was no consensus of Council. ADJOURNMENT The meeting adjourned at 8:55 p.m. Recorded by: Bridgett Kessling City Clerk �E J LJ 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 — OCTOBER 11, 2010 CLOSED SESSION — OCTOBER 11, 2010 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 the 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: Embarcadero Grill - Lease Site 86-86W Negotiating Parties: Caldwell and City of Morro Bay. Negotiations: Lease Terms and Conditions. Property: Outrigger - Lease Site 87-88/87W-88W Negotiating Parties: V. Leage and City of Morro Bay. Negotiations: Lease Terms and Conditions. Property: Surf Street Parlang Lot. Negotiating Parties: Maritime Museum and City of Morro Bay. Negotiations: Terms and Conditions of Lease. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. PUBLIC SESSION — OCTOBER 11, 2010 ® 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. 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 REGULAR CITY COUNCIL MEETING OF SEPTEMBER 27, 2010; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. 2 ® A-2 AUTHORIZATION TO AMEND THE CITY'S DENTAL POLICY WITH PRINCIPAL FINANCIAL TO ALLOW FOR ELIGIBILITY OF COVERAGE FOR DEPENDENTS TO AGE 26 REGARDLESS OF STUDENT STATUS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Authorize staff to submit a letter authorizing an amendment to the dental policy allowing eligibility of coverage for dependents to age 26 regardless of student status. A-3 RESOLUTION NO. 47-10 APPROVING CONTINUATION OF THE 2009/10 DEFERRAL OF MANAGEMENT AND EXECUTIVE 3% COST -OF -LIVING ADJUSTMENT; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 47-10. A4 CONSIDERATION OF APPROVAL FOR A LEASE AGREEMENT BETWEEN THE CITY OF MORRO BAY AND ABBA IMANI FOR LEASE SITE 65-66/ 65W-66W LOCATED AT 571 EMBARCADERO-SALT BUILDING; (HARBOR) RECOMMENDATION: Adopt Resolution No. 48-10. A-5 LETTER TO THE CALIFORNIA DEPARTMENT OF FISH AND GAME IN ® SUPPORT OF RE -OPENING THE MONTEREY BAY HALIBUT TRAWL GROUNDS; (HARBOR) RECOMMENDATION: Approve sending a letter to the California Department of Fish and Game in support of re -opening the Monterey Bay Halibut Trawl grounds. A-6 AWARD OF CONTRACT TO ASSOCIATED PACIFIC CONSTRUCTORS, INC. FOR THE WHARF REMOVAL PROJECT W-2010-HI]; (HARBOR) RECOMMENDATION: Adopt Resolution No. 49-10. A-7 ADOPTION OF ORDINANCE NO. 563 ADDING A LANDMARK TREE SECTION TO CHAPTER 12.08 OF THE MORRO BAY MUNICIPAL CODE; (PUBLIC SERVICES) RECOMMENDATION: Adopt Ordinance No. 563. A-8 RESOLUTION IN SUPPORT OF PROPOSITION 22-THE LOCAL TAXPAYER, PUBLIC SAFETY AND TRANSPORTATION PROTECTION ACT OF 2010; (CITY COUNCIL) RECOMMENDATION: Adopt Resolution No. 50-10. 3 B. PUBLIC HEARINGS. REPORTS & APPEARANCES ® B-1 REVIEW OF THE JODY GIANNINI FAMILY DOG PARK; (RECREATION & PARKS) RECOMMENDATION: Review the status of the Jody Giannini Family Dog Park and the recommendations from the Recreation and Parks Commission. B-2 ADOPTION OF RESOLUTION NO. 51-10 DECLARING THE EXISTENCE OF GULLS AT BAYSHORE VILLAGE EXEMPT FROM MORRO BAY MUNICIPAL CODE 7.16.025 AND AUTHORIZING THE HOMEOWNERS ASSOCIATION TO REMOVE GULL NESTS FROM THEIR PROPERTY; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 51-10. B-3 APPROVAL OF PARCEL MAP MB 10-0069 (781 MARKET AVE.) AND' ACCEPTANCE OF ABANDONMENT OF RIGHT-OF-WAY AND EASEMENTS; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 52-10. C. UNFINISHED BUSINESS — NONE. ® D. NEW BUSINESS —NONE. E. DECLARATION OF FUTURE AGENDA ITEMS �4 97lfflWARIL171�IIY 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. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 11 2 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION— OCTOBER 11, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Borchard 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 the 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: Embarcadero Grill - Lease Site 86-86W Negotiating Parties: Caldwell and City of Morro Bay. Negotiations: Lease Terms and Conditions. Property: Outrigger - Lease Site 87-88/87W-88W Negotiating Parties: V. Leage and City of Morro Bay. Negotiations: Lease Terms and Conditions. Property: Surf Street Parking Lot. Negotiating Parties: Maritime Museum and City of Morro Bay. Negotiations: Terms and Conditions of Lease. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:50 p.m. MOTION: Councilmember Grantham moved the meeting be adjourned. The motion was seconded by Councilmember Borchard and unanimously carried. (5-0) 0 The meeting adjourned at 5:50 p.m. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —OCTOBER 11, 2010 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Robert Schultz Jamie Boucher Eric Endersby Susan Lichtenbaum Rob Livick Tim Olivas Susan Slayton Joe Woods City Manager City Attorney Deputy City Clerk Harbor Operations Manager Harbor Business Manager Public Services Director Police Chief Administrative Services Director Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER is MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS 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 D'Onna Kennedy announced her candidacy for City Council in the upcoming election. She also made a public service announcement regarding receiving fraudulent checks in the mail. Don Doubledee, Interim CEO for the Chamber of Commerce, gave an update of events for the Chamber of Commerce. Garry Johnson announced the quarterly meeting of the Historical Society will be held on November 7 s with Botso Korishelli being the guest speaker. He also stated the Then mid Now book is for sale and a book signing with the authors Roger Castle and Gary _Ream will be held on October 17's at Coalesce book store with the profits going to the Historical Society. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 11, 2010 Nancy Johnson stated being a long-time member of the Citizens Bicycle Committee she wanted to thank the City for starting work on the North Main Street bike lanes. She also announced as a candidate runni2p for City Council, she will be holding a Meet & Greet at Top Dog coffee shop on October 22 to discuss issues relating to the downtown area. Linda Winters expressed support for Proposition 21 which would establish an $18 annual vehicle license surcharge to help fund state parks and wildlife programs and will be on the November 2, 2010 General Election ballot. Bill Yates thanked all the volunteers and City employees who helped with the Harbor Festival. He also encouraged everyone to get out and vote on November 2°a. Mayor Peters closed the hearing for public comment. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. is A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF SEPTEMBER 27, 2010; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 AUTHORIZATION TO AMEND THE CITY'S DENTAL POLICY WITH PRINCIPAL FINANCIAL TO ALLOW FOR ELIGIBILITY OF COVERAGE FOR DEPENDENTS TO AGE 26 REGARDLESS OF STUDENT STATUS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Authorize staff to submit a letter authorizing an amendment to the dental policy allowing eligibility of coverage for dependents to age 26 regardless of student status. A-3 RESOLUTION NO. 47-10 APPROVING CONTINUATION OF THE 2009/10 DEFERRAL OF MANAGEMENT AND EXECUTIVE 3% COST -OF -LIVING ADJUSTMENT; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 47-10. 3 E E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 11, 2010 A-4 CONSIDERATION OF APPROVAL FOR A LEASE AGREEMENT BETWEEN THE CITY OF MORRO BAY AND ABBA IMANI FOR LEASE SITE 65-66/ 65W-66W LOCATED AT 571 EMBARCADERO-SALT BUILDING; (HARBOR) RECOMMENDATION: Adopt Resolution No. 48-10. A-5 LETTER TO THE CALIFORNIA DEPARTMENT OF FISH AND GAME IN SUPPORT OF RE -OPENING THE MONTEREY BAY HALIBUT TRAWL GROUNDS; (HARBOR) RECOMMENDATION: Approve sending a letter to the California Department of Fish and Game in support of re -opening the Monterey Bay Halibut Trawl grounds. A-6 AWARD OF CONTRACT TO ASSOCIATED PACIFIC CONSTRUCTORS, INC. FOR THE WHARF REMOVAL PROJECT [MB-2010-H1]; (HARBOR) RECOMMENDATION: Adopt Resolution No. 49-10. A-7 ADOPTION OF ORDINANCE NO. 563 ADDING A LANDMARK TREE SECTION TO CHAPTER 12.08 OF THE MORRO BAY MUNICIPAL CODE; (PUBLIC SERVICES) RECOMMENDATION: Adopt Ordinance No. 563. A-8 RESOLUTION IN SUPPORT OF PROPOSITION 22-THE LOCAL TAXPAYER, PUBLIC SAFETY AND TRANSPORTATION PROTECTION ACT OF 2010; (CITY COUNCIL) RECOMMENDATION: Adopt Resolution No. 50-10. Councilmember Winholtz pulled Items A4and A-5 from the Consent Calendar; Mayor Peters pulled Item A-8. MOTION: Councilmember Grantham moved the City Council approve the Consent Calendar with the exception of Items A-4, A-5 and A-8. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) rl ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 11, 2010 A-4 CONSIDERATION OF APPROVAL FOR A LEASE AGREEMENT BETWEEN THE CITY OF MORRO BAY AND ABBA IMANI FOR LEASE SITE 65-66/ 65W- 66W LOCATED AT 571 EMBARCADERO-SALT BUILDING; (HARBOR) Councilmember Winholtz referred to the lease agreement and requested the term "Harbor Director" to add the words "or designee"; and also, add language to Section 3.01 Permitted Uses: "to limit the office space to the second floor." MOTION: Councilmember Winholtz moved the City Council approve Item A-4 of the Consent Calendar as amended. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) A-5 LETTER TO THE CALIFORNIA DEPARTMENT OF FISH AND GAME IN SUPPORT OF RE -OPENING THE MONTEREY BAY HALIBUT TRAWL GROUNDS; (HARBOR) Councilmember Winholtz requested clarification on why this fishery is being limited to existing permit holders, and also on the boundaries of the grounds. ® Harbor Business Manager Susan Lichtenbaum responded it is a traditional entry fishery, which is why new permit holders cannot enter that area. She said the State boundary line goes out further in Monterey and in the late 1990's the Department of Fish and Game placed a notice that they would be strictly enforcing the regulation against halibut fishing. They are now trying to get that area back to be allowed to fish halibut. r 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-8 RESOLUTION IN SUPPORT OF PROPOSITION 22-THE LOCAL TAXPAYER, PUBLIC SAFETY AND TRANSPORTATION PROTECTION ACT OF 2010; (CITY COUNCIL) Mayor Peters read Resolution No. 50-10 which authorizes the listing of the City of Morro Bay in support of Proposition 22, the Local Taxpayer, Public Safety and Transportation Protection Act of 2010. MOTION: Mayor Peters moved the City Council approve Item A-8 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) 5 ® MINUTES - MORRO BAY CITY COUNCIL. REGULAR MEETING — OCTOBER 11, 2010 Mayor Peters called for a break at 6:50 p.m.; the meeting resumed at 7:00 p.m. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 REVIEW OF THE JODY GIANNINI FAMILY DOG PARK; (RECREATION & PARKS) Recreation & Parks Director Joe Woods stated the Memorandum of Understanding (MOU) between the City of Morro Bay and the Morro Bay Pups (MBP) for the construction, maintenance, and operations of the Jody Giannini Family Dog Park (Dog Park) was approved by Council at the regular meeting of June 8, 2009. The MBP were able to obtain funding to fulfill construction obligations and began construction late in 2009. The Dog Park was substantially complete in January 2010 and the MBP began the operations with a soft opening. The MBP completed the park and hosted a grand opening on June 12, 2010. Pursuant to the Planning Commission's conditions, Special Use Permit #243, the Dog Park is to be reviewed after two years and a report shall be made to City Council. After public comment was received in May, Council directed staff to review the status of the Dog Park at a regular meeting of the Recreation and Parks Commission and report back to the City Council. The ® Commission reviewed the operations of the Dog Park at their regular meeting on September 28, 2010 and recommended Council consider directing staff to increase enforcement of current City municipal codes at Del Mar Park, modify the Dog Park hours of operation, modify the north fence, increase vegetation between the Dog Park and creek, and enhance park signage to better inform attendees. Mr. Woods recommended the City Council review the status of the Dog Park and the recommendations from the Recreation and Parks Commission. Mayor Peters opened the hearing for public comment. Steven Marketello stated he visited the dog park and there were no loud noises, only dogs having a great time. He said there were other sources of noises coming from outside of the dog park. Mr. Marketello also noted there is a thick willow area in a creek between Island Street and the dog park, which kids get into and dogs bark at them some dogs which could belong to Island Street neighbors. Nada Simpson, board member of Morro Bay Pups, stated it was a joint effort of a large community of dedicated citizens who contributed to fund the building of this dog park. George Baumley stated he assisted with the fundraising for the dog park and is a beneficiary of the park. He reviewed numerous benefits that the dog park offers the community. R ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 11, 2010 Elaine Giannini, board member of Morro Bay Pups, stated this dog park is a beautiful asset to the City. She said Morro Bay Pups is committed to maintaining the park to the highest standards. Ms. Giannini stated they have tried to mitigate the noise situation and requested members to counsel users to be mindful of the Island Street neighbors. They have also posted rules and regulations at the entrance of the park and also on the dog park gate. She said they are working with Morro Bay High School to implement a program for docents at the dog park. Ms. Giannini noted the leash law should be implemented outside of the dog park. Steve Ecces, board member of Morro Bay Pups, stated the dog park is a product of a working partnership between Morro Bay Pups, City Council, its Commissions and staff. The public benefit of the park is huge and it is a first class amenity. Mr. Ecces stated Morro Bay Pups should handle the barking situation by talking to dog owners about controlling their dogs, and the City should hold Morro Bay Pups accountable allowing them to act in good faith and trust they will deal with the problems. He requested the City enforce the leash law in Del Mar Park outside of the dog park and also reaffirm its partnership with Morro Bay Pups. ® Jeannie McIntosh, neighbor on Island Street, requested Council consider amending the Morro Bay Pups Memorandum of Understanding because it presently does not address noise coming from the dog park. She said she protested this dog park location being told noise would not be a problem, and yet they are hearing dogs barking and fighting and people yelling. Ms. McIntosh stated the homeowners on Island Street deserve to be recognized in this Memorandum of Understanding. She also noted taller trees on the north and west side of the park would be helpful. Mike Anderson, neighbor on Island Street, stated this is a great park but it is unfortunate that it is so close to so many houses. He requested Council direct the Recreation & Parks staff to implement some of the changes and improvements listed in the most recent Recreation & Parks Commission staff report, which could help alleviate some of the noise issues from the dog park. Mayor Peters closed the public comment hearing. Councilmember Winholtz stated she contacted a noise consultant who visited the dog park and suggested a time log be maintained that records events, the extent of the noise and the location of the noise; it was also suggested someone record the noise. She said she supports obtaining some scientific information to locate the noise. n CJ 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 11, 2010 Councilmember Grantham stated this is a well -kept, wonderful dog park. He said he would like the park to have an opening and closing time with the park being locked otherwise. Councilmember Grantham stated he would also support issuing warnings and fines for those who do not comply with the rules and regulations. Councilmember Smukler stated because of the diligence of the Morro Bay Pups and their commitment to the agreement with the City, he would like to see the park evolve without changes to the Memorandum of Understanding at this time. He said he supports community policing, more permanent signs within the run area and the parking lots regarding noise. Councilmember Smukler stated he also supports the docent program and planting of trees as a visual and noise buffer. He said he would like to receive a memorandum from staff in six months updating Council on the changes that have occurred at the dog park along with the review every two years monitoring the progress of the park. Councilmember Borchard stated she agrees with all of the Council remarks. She said this park is going to be used quite a bit especially with the inclusion of tennis courts, the skate rink and the dog park. Councilmember Borchard stated the dogs that are probably causing ® the majority of the problems are those running outside of the dog park off -leash. She said one neighbor expressed concern with someone using the dog park before the posted hours, and the excessive traffic and speeding in the neighborhood. Mayor Peters stated she agrees more signage is required that is bright and simple, stating "PLEASE KEEP DOGS QUIET'. She said she would like monitoring with a docent during the busy times. Mayor Peters stated she would prefer hedges be planted instead of trees for a sound buffer. She said enforcement could be considered within Del Mar Park. Mayor Peters stated she would prefer not to change the Memorandum of Understanding at this time. MOTION: Mayor Peters moved the City Council: 1) not enter the Memorandum of Understanding with Morro Bay Pups at this time; 2) request more abrupt signage in Del Mar Park to alleviate noise; 3) request information on cost of sound testing; 4) consider administrative citations as enforcement; 5) use volunteers as monitors during busy times in the dog park; and 6) receive an update from staff within six months. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) El U ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 11, 2010 B-2 ADOPTION OF RESOLUTION NO. 51-10 DECLARING THE EXISTENCE OF GULLS AT BAYSHORE VILLAGE EXEMPT FROM MORRO BAY MUNICIPAL CODE 7.16.025 AND AUTHORIZING THE HOMEOWNERS ASSOCIATION TO REMOVE GULL NESTS FROM THEIR PROPERTY; (CITY ATTORNEY) City Attorney Robert Schultz stated on September 25, 2010, his office received correspondence from Bayshore Village Homeowners Association requesting that the Gulls located within their complex be declared a public nuisance and that an exemption to allow for the removal of Gull nests from their roofs be granted by the City Council pursuant to Morro Bay Municipal Code Section 7.20.020, which was amended and incorporated into Section 7.16.025 in 2000 and states as follows: "No person shall trap, shoot, hunt, molest or kill any wild birds, or tamper, damage or destroy the nests or eggs of any wild birds within the City. Should the City Council determine by resolution that birds protected under this chapter have become so numerous or destructive in any particular location or area as to constitute a menace and danger to the public health, safety or property, the Council may provide for such remedies appropriate under the circumstances." Mr. Schultz recommended the City Council adopt Resolution 51-10 declaring the existence of Gulls at Bayshore Village exempt from Morro Bay Municipal Code 7.16.025 and authorizing the ® Homeowners Association's request to remove Gull nests from their property. Mayor Peters opened the hearing for public comment. William Albrecht, representing the Bayshore Village Homeowner Association, stated the Western Seagull is the only bird that has caused damage to the property and is a health hazard to Bayshore Village. He said they are trying to eliminate the problem with the removal of the Gull nests from their property to a more natural habitat. Jack Moorehead, President of the Bayshore Village Homeowner Association, stated he has been a member of the Audubon Society for decades. He said a' construction and maintenance specialist has recommended the removal of the Gull nests because of the damage to the property and their guano is affecting the roads severely. Several residents refuse to live in their complex during the breeding and nesting months due to the noise and the health concerns. Mr. Moorehead stated many remedies have been tried to no avail and removal of the nests is the best solution. He requested Council consider approving a five year period of time to help resolve this problem. Mayor Peters closed the public comment hearing. Councilmember Smukler stated because Morro Bay is a bird sanctuary this is becomes a serious decision. Because this is a species that is not threatened, he is comfortable with the ® relocation of the Gull nests to a more natural habitat and five years would be helpful to allow the colony to relocate. .01 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 11, 2010 11 Councilmember Borchard stated she values the health and welfare of the residents, as she does the welfare of the Gulls. She said since the homeowner association is working with the agencies and the City, she feels they are doing their due diligence in resolving this issue. Councilmember Borchard stated she feels comfortable is approving the removal of the Gull nests, and allowing the homeowners a five-year time period. Councilmember Grantham stated he would not make it binding and would like the homeowner association to consult Pacific Wildlife who may have information that the Department of Fish and Game may not have provided since they only issue the permit. He said he supports approving a five-year time period. Councilmember Winholtz stated she totally disagrees and noted the last time the City Council reviewed this issue eight years ago, the Gulls moved to another neighborhood and caused the same problems. She said the Gulls are all along the bay and she referred to the Inn at Morro Bay and questioned how they deal with this problem. Councilmember Winholtz stated the permit with the Department of Fish and Wildlife is for one year and then up for review, so she feels to ask the City for a five-year permit is extreme, and the City should review it in one year. She also agreed that other organizations should be considered in the resolution of this issue. Mayor Peters stated she does not see it as destruction of the species with the relocation of the Gull nests, and the health and welfare of the residents should be the main concern. She said she supports approving a five-year permit. MOTION: Councilmember Borchard moved the City Council adopt Resolution 51-10 declaring the existence of Gulls at Bayshore Village exempt from Morro Bay Municipal Code 7.16.025, and authorizing the Homeowners Association's request to remove Gull nests from their property with a timeline of five years. The motion was seconded by Councilmember Grantham and carried with Councilmember Winholtz voting no. (4-1) Councilmember Borchard encouraged the homeowner association to contact the Pacific Wildlife Care to obtain some possible information on relocation of the Gulls. 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 11, 2010 B-3 APPROVAL OF PARCEL MAP MB 10-0069 (781 MARKET AVE.) AND ACCEPTANCE OF ABANDONMENT OF RIGHT-OF-WAY AND EASEMENTS; (PUBLIC SERVICES) Public Services Director Rob Livick stated approval of a lot line adjustment and a parcel map is a "ministerial act", pursuant to the California Subdivision Map Act (Government Code Section 66474 .1), once the map is found to be in substantial conformance with the approved tentative map. This Parcel Map has met all City regulations and no further discretionary approvals are required. The purpose for the right-of-way abandonments is to allow the existing building to meet zoning setbacks and to clean up old easements that are no longer needed. The abandonment along Market Avenue includes a reservation for a five-foot public pedestrian easement, so that there is no change in public access but allows the existing building to meet zoning setbacks. Mr. Livick recommended the City Council City Council approve the Parcel Map MB 10-0069 with the following easements to be accepted; a 16-foot wide abandoned road from Front Street to Market Street for sewer and water rights and a 5-foot wide easement for foot passage extending from Market Street easterly to the abandoned road from Front Street to Market Avenue. Staff also recommends to City Council to abandon the following portions of right -of --way: a 10-foot strip along the easterly side of Market Street, a 6-foot strip along the southerly side of Morro Bay Boulevard, and an 8-foot strip along the northerly side of Pacific streets by adoption of Resolution No. 52-10. Mayor Peters opened the hearing for public comment; there were no public comments and Mayor Peters closed the public comment hearing. MOTION: Councilmember Grantham moved the City Council approve Parcel Map MB 10- 0069; and, adopt Resolution No. 52-10 accepting abandonment of right-of-way and easements as described in the staff report. The motion was seconded by Councilmember Borchard. Councilmember Winholtz stated the City has approved abandonment of properties for developers. which she finds unfair to the City because it is valuable property and the City has not received any exchanges. She said in this case, she somewhat understands the abandonment on Market Street but is opposed to the abandonment on the Pacific Street side. VOTE: The motion carried with Councilmember Winholtz voting no. (4-1) C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS —NONE. 11 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 11, 2010 E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Smukler requested to agendize a Resolution in support of Proposition 21 - the State Parks and Wildlife Conservation Trust Fund Act of 2010; Council concurred. ADJOURNMENT The meeting adjourned at 8:29 p.m. Recorded by: � alf— 'eBoucher Deputy City Clerk E, 12 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 27, 2010 CLOSED SESSION — SEPTEMBER 27, 2010 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. Status Report on All Pending Litigation. This is a report on status and no action may be taken on any matter not specifically listed. Council may request a specific matter be agendized in the future for action. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. PUBLIC SESSION — SEPTEMBER 27, 2010 ® 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. 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 SEPTEMBER 13, 2010; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. E 1 A-2 ADOPTION OF ORDINANCE NO. 562 INCREASING THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT ASSESSMENT FROM 2% TO 3%; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 562. A-3 RESOLUTION 46-10 AMENDING COUNCIL POLICIES AND PROCEDURES MANUAL SECTIONS IN REGARD TO CALLING CLOSED SESSION MEETINGS; IN REGARD TO ALL REAL PROPERTY CONTRACTS GOING TO CLOSED SESSION PRIOR TO OPEN SESSION; IN REGARD TO COUNCIL LIAISONS TO ADVISORY BOARDS; AND, IN REGARD TO CITY COUNCIL INPUT ON HIRING AND EVALUATION OF DEPARTMENT HEADS; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 46-10. AA AUTHORIZATION TO ACCEPT A GRANT FROM THE NATURE CONSERVANCY IN SUPPORT OF FISHERIES TRANSITION AND COMMUNITY OUTREACH; (HARBOR) RECOMMENDATION: Authorize acceptance of a grant of $70,000 from The Nature Conservancy to provide staff support for commercial fishing transitioning strategies and outreach. A-5 ACCEPTANCE OF RESIGNATION FROM COMMUNITY PROMOTIONS COMMITTEE MEMBER; (ADMINISTRATION) RECOMMENDATION: Accept resignation. A-6 PROCLAMATION DECLARING OCTOBER 2010 AS "RIDESHARE MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 INTRODUCTION AND FIRST READING OF ORDINANCE NO. 563 ADDING A LANDMARK TREE SECTION TO CHAPTER 12.08 OF THE MORRO BAY MUNICIPAL CODE; (PUBLIC SERVICES) RECOMMENDATION: Approve Ordinance No. 563 for first reading and introduction by number and title only. C. UNFINISHED BUSINESS C-1 STATUS REPORT ON WATER USAGE FOR AUGUST 2010; (PUBLIC SERVICES) RECOMMENDATION: Review status report and direct staff on ending mandatory water conservation. 3 D. NEW BUSINESS D-1 REQUEST FOR FACILITY USE FEE WAIVER FOR A MAYORAL/CITY COUNCIL CANDIDATES FORUM SPONSORED BY THE AMERICAN ASSOCIATION OF UNIVERSITY WOMEN (AAUW) AND LEAGUE OF WOMEN VOTERS; (ADMINISTRATION) RECOMMENDATION: Discuss the possibility of waiving facility rental fees for the AAUW and the League of Women Voters candidates' forum, and direct staff accordingly. E. DECLARATION OF FUTURE AGENDA ITEMS F. 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. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO ® THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. u 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. n E 2 MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION— SEPTEMBER 27, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Grantham 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. Status Report on All Pending Litigation. This is a report on status and no action may be taken on any matter not specifically listed. Council may request a specific matter be agendized in the future for action. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:50 p.m. MOTION: Councilmember Grantham moved the meeting be adjourned. The motion was seconded by Councilmember Borchard and unanimously carried. (5-0) The meeting adjourned at 5:50 p.m. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2010 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Eric Endersby Susan Lichtenbaum Rob Livick Tim Olivas Mike Pond Dylan Wade Joe Woods ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE City Manager City Attorney City Clerk Harbor Operations Manager Harbor Business Manager Public Services Director Police Chief Fire Chief Utilities/Capital Projects Manager Recreation & Parks Director MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS 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 Garry Johnson stated Arcadia Publishing Company requested the publication of a new book on the history of Morro Bay which was written by Roger Castle and Gary Ream and some photographs taken by him. He said the books will be on sale this weekend at the Harbor Festival. Jeremiah O'Brien expressed his support for Item A-4 (Authorization to Accept a Grant from the Nature Conservancy in Support of Fisheries Transition and Community Outreach) noting the importance to allow Rick Algert to work on this grant on a part-time contract basis due to his expertise on fisheries. John Solu read a letter from Pradeep Patel, a Morro Bay hotel owner regarding the Chamber of Commerce CEO vacancy and the lack of representation from the hotel of ® tourism industry on the hiring committee. It was requested by Mr. Patel and Mr. Solu that ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2010 since the City holds a contract with the Chamber of Commerce, to intervene and request an hotelier be placed on the hiring committee who will be interviewing the prospective applicants for the CEO position. Amy Perry read a letter for Jody Kennemer expressing concern with the removal of the shade trees that were cut down at the Community Center and library parking lots. She noted she tried to speak with someone at the Recreation & Parks and Planning Departments and the Library and received no information about the removal of the trees. Ms. Kennemer requested faster growing shady leafy trees be replaced instead of oak trees. John Barta reviewed the history of the City -owned lot at the comer of San Jacinto and Highway One which is for sale. He said an offer was made in excess of $2 million; however, the sale did not go through due to the objection of the removal of existing eucalyptus trees for a subdivision. Mr. Barta said a study was done which stated the trees cannot be saved because there is a line of eucalyptus that goes through the middle of the property which does not allow for a subdivision. He said the sales tax initiative was created instead of what was intended from the reserve from the sale of this property. ® Linda Winters expressed support for Proposition 21 which would establish an $18 annual vehicle license surcharge to help fund state parks and wildlife programs and will be on the November 2, 2010 General Election ballot. Bill Yates thanked the SEIU employees for their endorsement of his candidacy for Mayor in the November election. He also said he and his wife were surprised by the removal of the trees at the Community Center and library parking lots. Mr. Yates encouraged the public to attend the Harbor Festival this weekend. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:04 p.m.; the meeting resumed at 7:14 p.m. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF SEPTEMBER 13, 2010; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2010 A-2 ADOPTION OF ORDINANCE NO. 562 INCREASING THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT ASSESSMENT FROM 2% TO 3%; (CITY ATTORNEY) RECOMMENDATION:. Adopt Ordinance No. 562. A-3 RESOLUTION 46-10 AMENDING COUNCIL POLICIES AND PROCEDURES MANUAL SECTIONS IN REGARD TO CALLING CLOSED SESSION MEETINGS; IN REGARD TO ALL REAL PROPERTY CONTRACTS GOING TO CLOSED SESSION PRIOR TO OPEN SESSION; IN REGARD TO COUNCIL LIAISONS TO ADVISORY BOARDS; AND, IN REGARD TO CITY COUNCIL INPUT ON HIRING AND EVALUATION OF DEPARTMENT HEADS; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 46-10. A4 AUTHORIZATION TO ACCEPT A GRANT FROM THE NATURE CONSERVANCY IN SUPPORT OF FISHERIES TRANSITION AND ® COMMUNITY OUTREACH; (HARBOR) RECOMMENDATION: Authorize acceptance of a grant of $70,000 from The Nature Conservancy to provide staff support for commercial fishing transitioning strategies and outreach. A-5 ACCEPTANCE OF RESIGNATION FROM COMMUNITY PROMOTIONS COMMITTEE MEMBER; (ADMINISTRATION) RECOMMENDATION: Accept resignation. A-6 PROCLAMATION DECLARING OCTOBER 2010 AS "RIDESHARE MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember Winholtz pulled Items A-3 and A-4 from the Consent Calendar; Mayor Peters pulled Item A-6. MOTION: Councilmember Borchard moved the City Council approve Items A-1, A-2 and A-5 of the Consent Calendar. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2010 A-3 RESOLUTION 46-10 AMENDING COUNCIL POLICIES AND PROCEDURES MANUAL SECTIONS IN REGARD TO CALLING CLOSED SESSION MEETINGS; IN REGARD TO ALL REAL PROPERTY CONTRACTS GOING TO CLOSED SESSION PRIOR TO OPEN SESSION; IN REGARD TO COUNCIL LIAISONS TO ADVISORY BOARDS; AND, IN REGARD TO CITY COUNCIL INPUT ON HIRING AND EVALUATION OF DEPARTMENT HEADS; (CITY ATTORNEY) Councilmember Winholtz referred to Section 6.2.1 (Council Liaison Assignments) and requested the word commission(s) be amended to read advisory body/bodies; .Council concurred. MOTION: Councilmember Winholtz moved the City Council approve Item A-3 of the Consent Calendar as amended. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) A-4 AUTHORIZATION TO ACCEPT A GRANT FROM THE NATURE CONSERVANCY IN SUPPORT OF FISHERIES TRANSITION AND ® COMMUNITY OUTREACH; (HARBOR) Councilmember Winholtz stated the fishing liaison group or fishing association should provide staff support for this grant rather than the City, and provide them space in the Nature Conservancy office in Morro Bay. is City Manager Andrea Lueker responded the limited support would be coming from past Harbor Director Rick Algert using office space at the Public Services Department; there would be minimal fiscal impact involved. Harbor Business Manager Sue Lichtenbaum stated this is a critical grant in the transitioning of these fishing rights and the associated permits that go with them, and Mr. Algert has been involved in this process since it started. MOTION: Councilmember Grantham moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) A-6 PROCLAMATION DECLARING OCTOBER 2010 AS "RIDESHARE MONTH"; (ADMINISTRATION) Mayor Peters pulled this item in order to make a presentation to a representative of RideShare. 5 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2010 MOTION: Councilmember Grantham moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 INTRODUCTION AND FIRST READING OF ORDINANCE NO. 563 ADDING A LANDMARK TREE SECTION TO CHAPTER 12.08 OF THE MORRO BAY MUNICIPAL CODE; (PUBLIC SERVICES) Public Services Director Rob Livick stated the Morro Bay Citizens Tree Committee has reviewed the subject of landmark trees and has made recommendations for modifying the City's Municipal Code to recognize and protect these landmark trees. The tree committee has concluded that trees have an essential role supporting Morro Bay's economic and physical health and are key element in Morro Bay's famous scenic beauty and wildlife habitat. The proposal for the addition of a landmark tree section to the Morro Bay Municipal Code has been previously reviewed by the Public Works Advisory Board and ® the Planning Commission, and both bodies recommended approval of the addition to the municipal code. At their September 13, 2010 meeting, the Morro Bay City Council discussed the revisions to the Master Street Tree list, the draft revisiontothe Street Tree section of the Morro Bay Municipal Code (12.08) which would add the ability to declare landmark trees, and approved the Master Street Tree list revision. During the discussion regarding adding the landmark tree section to Chapter 12.08 of the Morro Bay Municipal, the definition of a Specimen Tree was added to the definitions section and requested the change come back for "first reading". Mr. Livick recommended the City Council receive public testimony, and approve Ordinance No. 563 for introduction and first reading by number and title only. Mayor Peters opened the hearing for public comment. John Barta stated the proposed ordinance is an attempt to regulate land use by treating groves of trees as individual landmark trees. He said if approved, this ordinance will create the City -owned lot at the corner of San Jacinto and Highway One, which is for sale to be unsellable, and would be writing off $2 million of taxpayer's money. Mr. Barta requested the City Council remove the term "grove" out of the ordinance. Chris Copack stated he has eucalyptus trees in his yard and requested clarification regarding some of the concerns he has with this ordinance. Mayor Peters closed the public comment hearing. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2010 Councilmember Winholtz stated there is no landmark tree unless it is proposed and it goes through two public reviews before it is identified, first with the tree committee and then the City Council. She referred to the statement made on the San Jacinto property noting the sales tax measure was proposed for a variety of uses not only fire use, and the two are separate issues. Councilmember Winholtz stated this ordinance is not about private trees and is strictly about public trees. Councilmember Smukler stated the value of a landmark tree is it creates a heightened review period and once identified it is considered a cherished tree within the community. He referred to the San Jacinto property noting there are some clear development conditions on this property, and it is doubtful that Council would make a choice of trees that would impact the development abilities of a property such as this. Councilmember Borchard expressed concern with the grove of eucalyptus trees on the San Jacinto property if dedicated as landmark trees and causing a problem with the sale of this property. She said she also has concern with the potential cost to the City in maintaining groves of trees. Councilmember Grantham clarified that this ordinance would not be a hindrance to the sale of the San Jacinto property. Council made an amendment to Section 12.08.150 — Landmark Trees as follows: Any Morro Bay resident may nominate a tree within the right-of-way to be considered for Landmark Tree designation..... Councilmember Winholtz stated she would prefer to open it up to anyone who would like to nominate a landmark tree. MOTION: Councilmember Borchard moved the City Council approve as amended Ordinance No. 563 adding a Landmark Tree section to Chapter 12.08 of the Morro Bay Municipal Code for introduction and first reading by number and title only. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) City Manager Andrea Lueker read Ordinance No. 563 by number and title only. E 7 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2010 C. UNFINISHED BUSINESS C-I STATUS REPORT ON WATER USAGE FOR AUGUST 2010; (PUBLIC SERVICES) Utilities/Capital Projects Manager Dylan Wade stated total August water production was 128 acre feet with 3.4 acre feet of water from the Morro groundwater basin receiving treatment through the BWRO process, 124.6 acre feet of State water delivered, and 0 acre feet of groundwater direct from the Morro and Chorro Basins. During the month of August, the City has used water from the Brackish Water Reverse Osmosis (BWRO) Treatment train to supplement water deliveries from the State Water Project by running the BWRO treatment process as necessary. State Water Project deliveries are sufficient to meet water demands for all periods except during the State Water shutdown without continuing mandatory water conservation measures. Therefore, staff is recommending cessation of mandatory water conservation at this time. Staff' has been able to focus on the distribution system and is working on the replacement of service lines and old water meters. It is anticipated that in the month of October the water system will rely on the State Water Project deliveries and will decrease the use of the BWRO to augment those deliveries as our demands fall. Mr. Wade recommended the City Council review this status report, and direct staff on ending mandatory water conservation. Councilmember Winholtz stated she supports waiting to change the mandatory water conservation measures from Level 3 and raising them to Level 4 when State Water is due to shut down within thirty days. Councilmember Smukler agreed with Councilmember Winholtz as far as waiting to change the mandatory water conservation measures as well as with the heightened level of conservation when State Water shuts down. Mayor Peters stated she supports removing the conservation notice at this time and reinstate it in November when State Water shuts down. The City Council accepted the report; no further action was taken on this item. D. NEW BUSINESS D-I REQUEST FOR FACILITY USE FEE WAIVER FOR A MAYORAUCITY COUNCIL CANDIDATES FORUM SPONSORED BY THE AMERICAN ASSOCIATION OF UNIVERSITY WOMEN (AAUW) AND LEAGUE OF WOMEN VOTERS; (ADMINISTRATION) Councilmember Winholtz stepped down due to a conflict of interest as she is a candidate ® in the upcoming election. 9 MINUTES - MORRO BAY CITY COUNCIL p� REGULAR MEETING — SEPTEMBER 27, 2010 City Manager Andrea Lueker stated the City received a request for a fee waiver for a MayoralICity Council Candidates' Forum sponsored by the American Association of University Women (AAUW) and the League of Women Voters. The AAUW and League of Women Voters have sponsored candidate forums in the past which benefitted the citizens of Morro Bay. The financial impact to the City would be the loss of revenue from assessed fees for a non-profit organization to utilize the Veterans Memorial Building for 2'/2 hours, in the amount of $147.50. Ms. Lueker recommended the City Council review and discusses the possibility of waiving rental fees for the AAUW and League of Women Voters' Candidates' Forum, and direct staff accordingly. Councilmember Borchard stated she will not support this fee waiver. She noted when she campaigned two years ago the cost of the forum was $25 per candidate for the use of the building. Councilmember Borchard stated this could set a precedent and the City is not in a financial position to waive fees and she believes the candidates should pay a fee to hold a forum. MOTION: Councilmember Grantham moved the City Council deny the request for a fee waiver for a Mayoral/City Council Candidates Forum sponsored by the American Association Of University Women (AAUW) and League Of Women Voters. The motion was seconded by Councilmember Borchard and carried with Councilmember Smukler voting no. (3-1) E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested to agendize a discussion on incorporating the Grey Water and Park Tree lists into the Major Vegetation Guidelines - take to Public Works Advisory Board and Recreation & Parks Commission with recommendations to Planning Commission and then to City Council; Council concurred. ADJOURNMENT The meeting adjourned at 8:18 p.m. Recorded by: Bridgett Kessling 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 — SEPTEMBER 13, 2010 CLOSED SESSION — SEPTEMBER 13, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH ® CS-2 LABOR NEGOTIATOR. Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. 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 4 parcels. • Property: Salt Building - Lease Site 65-66/65W-66W Negotiating Parties: Imani and City of Morro Bay. Negotiations: Lease Terms and Conditions. • Property: Virg's Landing - Lease Site 113W Negotiating Parties: Moore and Neil and City of Morro Bay. Negotiations: Lease Terms and Conditions. • Property: Embarcadero Grill - Lease Site 86-86W Negotiating Parties: Caldwell and City of Morro Bay. Negotiations: Lease Terms and Conditions. • Property: Outrigger - Lease Site 87-88/87W-88W Negotiating Parties: V. Leage and City of Morro Bay. Negotiations: Lease Terms and Conditions. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS 0 ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. PUBLIC SESSION — SEPTEMBER 13, 2010 ® 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. 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 AUGUST 23, 2010; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. ® B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 INTRODUCTION AND FIRST READING OF ORDINANCE NO. 562 INCREASING THE MORRO BAY TOURISM. BUSINESS IMPROVEMENT DISTRICT ASSESSMENT FROM 2% TO 3%; (CITY ATTORNEY) RECOMMENDATION: Approve the introduction and first reading of Ordinance No. 562 by number and title only. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 AUTHORIZATION TO REPLACE A WASTEWATER COLLECTIONS SYSTEMS OPERATOR III; (PUBLIC SERVICES) RECOMMENDATION: Authorize the replacement of a Wastewater Collections Systems Operator III. D-2 AUTHORIZATION TO FILL THE ASSOCIATE PLANNER POSITION AT THE ASSISTANT PLANNER LEVEL; (PUBLIC SERVICES) RECOMMENDATION: Authorize the hiring of the recently vacated position of ® the Associate Planner at the Assistant Planner level. D-3 REVIEW OF DRAFT AMENDMENT TO CHAPTER 12.08 OF THE MORRO BAY MUNICIPAL CODE ADDING A LANDMARK TREE SECTION AND APPROVAL OF A REVISED MASTER STREET TREE LIST; (PUBLIC SERVICES) RECOMMENDATION: Review the amendment to Chapter -12.08 of the Code and direct staff accordingly; and, approve the -revised Master Street Tree list. D-4 REQUEST TO APPROVE A RESPONSE TO THE GRAND JURY REGARDING SOLAR ENERGY; (ADMINISTRATION) RECOMMENDATION: Authorize the Mayor to send a letter to the Presiding Judge of the San Luis Obispo Superior Court responding to the Grand Jury report entitled "To Go Solar or Not To Go Solar". D-5 AUTHORIZATION FOR THE CITY OF MORRO BAY TO ACT AS THE LEAD APPLICANT FOR THE JOINT SUSTAINABLE COMMUNITIES PLANNING GRANT (PROPOSITION 84) FOR THE GRANT APPLICATION ENTITLED "SMALL CITIES OF SAN LUIS OBISPO COUNTY CLIMATE ACTION PLAN'; (PUBLIC SERVICES) ® RECOMMENDATION: Adopt Resolution No. 45-10. 3 D-6 DISCUSSION ON AMENDING COUNCIL POLICIES AND PROCEDURES ® IN REGARD TO.CALLING CLOSED SESSION; TO ALL REAL PROPERTY CONTRACTS GOING TO CLOSED SESSION PRIOR TO OPEN SESSION; IN REGARD TO COUNCIL LIAISONS TO ADVISORY BOARDS; AND, IN REGARD TO CITY COUNCIL INPUT ON HIRING AND EVALUATION OF DEPARTMENT HEADS; (CITY ATTORNEY) RECOMMENDATION: Direct staff to return with a resolution amending the Council Policies and Procedures Manual in regard to the issues discussed accordingly. D-7 LETTER REGARDING THE REGISTRATION FEE TO ATTEND THE LEAGUE OF CALIFORNIA CITIES ANNUAL BUSINESS MEETING; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. E. DECLARATION OF FUTURE AGENDA ITEMS F. 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 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. 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 — SEPTEMBER 13, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. ® Mayor Peters called the meeting to order at 5:00 p.m. PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Grantham 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 City Manager, the City's Designated Representative, .for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. 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 4 parcels. • Property: Salt Building - Lease Site 65-66/65W-66W Negotiating Parties: Imam and City of Morro Bay. Negotiations: Lease Terms and Conditions. • Property: Virg's Landing - Lease Site 113W Negotiating Parties: Moore and Neil and City of Morro Bay. Negotiations: Lease Terms and Conditions. • Property: Embarcadero Grill - Lease Site 86-86W Negotiating Parties: Caldwell and City of Morro Bay. Negotiations: Lease Terms and Conditions. • Property: Outrigger - Lease Site 87-88/87W-88W Negotiating Parties: V. Leage 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 5:30 p.m. MOTION: Councilmember Borchard moved the meeting be adjourned. The motion was seconded by Councilmember Smukler and unanimously carried. (5-0) is The meeting adjoumed at 5:30 p.m. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2010 VETERANS MEMORIAL HALL - 6:00 P.M. ® Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Eric Endersby Susan Lichtenbaum Rob Livick Tim Olivas Susan Slayton Dylan Wade Joe Woods City Manager City Attorney City Clerk Harbor Operations Manager Harbor Business Manager Public Services Director Police Chief Administrative Services Director Utilities/Capital Projects Manager Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE ® PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS 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 Natalia Merzoyan stated she toured the "PERC" facility in Santa Paula, and explained its process which she found to be brilliant. Ms. Merzoyan said she is mystified that this process is not being chosen for Morro Bay. Robert Davis, San Luis Bicycle Club, reported on the 39's Annual Lighthouse Bicycle Run along Highway One on September 25'e. William Yates clarified the City Council is reviewing both the PERC facility and the plans presented for the upgrade to the City's Wastewater Treatment Plant. He also referred to Items D-1 (Authorization to Replace a Wastewater Collections Systems Operator III) and D-2 (Authorization to Fill the Associate Planner Position at the Assistant Planner Level) acknowledging the importance of replacing these positions and noting they already are budgeted positions. Mr. Yates encouraged the City Council to approve filling the Wastewater Collections Systems Operator III and Assistant Planner positions. 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2010 is John Barta referred to Item D-3 (Review of Draft Amendment to Chapter 12.08 of the Morro Bay Municipal Code Adding a Landmark Tree Section and Approval of a Revised Master Street Tree List) stating people love trees but do not like regulations, and what is proposed are more regulations. He also referred to the PERC facility noting there is no hard offer on the table from PERC. Taylor Newton referred to Item D-3 stating this report is based on recommendation from the tree committee. He said he does not consider the recommendations to be regulations but to be guidelines. Mr. Newton stated the goal was to get people involved with the City and the environment and try to put a positive in this current world we live in. Jim Hayes referred to Item D-1 stating the Wastewater Collections Systems Operator III position is one of the most environmentally responsible positions in the City, and must be filled based on laws and guidelines that are set by the State. Dorothy Cutter expressed support for Item D-3. Grant Crowl read a political satire referring to the Wastewater Treatment Plant upgrade Mayor Peters closed the hearing for public comment. ® Mayor Peters called for a break at 6:41 p.m.; the meeting resumed at 6:50 p.m. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF AUGUST 23, 2010; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. MOTION: Councilmember Grantham moved the City Council approve Item A-1 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 INTRODUCTION AND FIRST READING OF ORDINANCE NO. 562 INCREASING THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT ASSESSMENT FROM 2% TO 3%; (CITY ATTORNEY) City Attorney Robert Schultz stated in order to initiate the process of increasing the ® assessment from 2% to 3%, the City Council on July 12, 2010 adopted a Resolution of Intention indicating its intention to increase the assessment for the benefit of tourism 3 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2010 promotion and marketing in the City of Morro Bay. Following the adoption of the Resolution of Intention and consistent with statutory requirements, notification was published and mailed to area businesses and property owners, notifying the owners and other interested members of public key actions, such as a public meeting, a protest hearing, introduction of Ordinance to establish the assessment, and the final adoption of Ordinance to increase the assessment. Mr. Schultz recommended the City Council move for introduction and first reading of Ordinance No. 562, by number and title only. Mayor Peters opened the hearing for public comment. Joan Solu, Tourism Business Improvement District Chair and hotelier, stated the hoteliers are supportive and interested in helping with their fair share. She said transient occupancy tax reports show there has been a slight increase, which is encouraging. Ms. Solu stated the hoteliers continue to support local events and festivals as well as the Visitors and Conference Bureau, which is the #1 referral to the website morrobay.org. Mayor Peters closed the public comment hearing. MOTION: Councilmember Grantham moved the City Council approve Ordinance No. 562 increasing the Morro Bay Tourism Business Improvement District ® assessment from 2% to 3% for first reading and introduction. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) City Manager Andrea Lueker read Ordinance No. 562 by number and title only. C. UNFINISHED BUSINESS — None. D. NEW BUSINESS D-1 AUTHORIZATION TO REPLACE A WASTEWATER COLLECTIONS SYSTEMS OPERATOR III; (PUBLIC SERVICES) Utilities/Capital Projects Manager Dylan Wade stated at the August 23, 2010 Council meeting, authorization to replace the Collection System Operator III was brought forward and rejected by the majority of the Council. The functions performed by the Collection System Operator III are a critical part of maintaining the system. With this position being an important succession planning step to the Division, filling this position becomes even more critical to ensure adequate management and supervision of the day to day activities. By making the choice to delay this hiring, either the functions that are legally required to perform do not occur, or the City must look to outsource these activities. Under fiscal impacts, even at the Collections System Operator III level, there are significant cost savings to be had by performing these activities in-house versus contracting them out at prevailing wage. Operating while potentially pulling resources from other Divisions and foregoing ® leave can only be seen as a stop gap measure, but will not work as a long term solution. 4 C MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2010 Staff is also preparing an on -call contract with a local firm that can provide a qualified Collections System Operator. Mr. Wade recommended the City Council authorize the replacement of the Wastewater Collections Systems Operator III. Councilmember Borchard stated she would like to authorize this replacement; however, she would like to start negotiating with the employee units now instead of later, and would like to consider tiered -benefits. Councilmember Smukler agreed he would also support negotiations to begin with the employee units. He said he would have preferred a more moderate option to consider assisting with staffs pressures in obtaining their goals, but also allowing Council to stay responsive to its citizens' and budget demands. Councilmember Grantham stated he was supportive the last time to fill this vacancy. He said there are mandates to be upheld, and it is imperative that Council supports replacing this vacant position. _Councilmember Grantham agreed that a tiered -benefit package needs to be addressed. Councilmember Winholtz stated she would like to postpone hiring this person until negotiations have begun. ® Mayor Peters stated the citizens expect public health and safety. She said this department needs the manpower to maintain an aging facility, and this position has been budgeted. Mayor Peters stated she is supportive of opening up negotiations. E MOTION: Mayor Peters moved the City Council authorize the replacement of the Wastewater Collections Systems Operator III. The motion was seconded by Councilmember Grantham. Councilmember Winholtz stated this is not about the Wastewater Treatment Plant it is about the Collection System, which operated with four people prior to adding the fifth person and she would like to wait a few months before replacing that fifth position. Councilmember Borchard requested the motion include to direct staff to begin the negotiation process. Mayor Peters stated she would make a separate motion. VOTE: The motion carried with Councilmember Winholtz voting no. (4-1) MOTION: Mayor Peters moved the City Council direct staff to begin negotiations for new contracts. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) 5 E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2010 D-2 AUTHORIZATION TO FILL THE ASSOCIATE PLANNER POSITION AT THE ASSISTANT PLANNER LEVEL; (PUBLIC SERVICES) Public Services Director Rob Livick stated with only one permanent planner, the Planning Manager, administering the duties of the Planning Division and the Building Division, it is literally impossible to continue operating under these conditions without placing the City at considerable risk due to a number of factors including, but not limited to, compliance with the State Permit Streamlining Act, timeframes set forth in the California Environmental Quality Act, Coastal Development Permits, analysis of development proposals, plan check accuracy, planning inspections, code compliance, business license review, zoning inquires and general public assistance. Several times in the past the concept of outsourcing planning services has come up as a potential solution. Several times in the past the concept of outsourcing planning services has come up as a potential solution. In this regard, last year staff obtained a proposal from a consultant that has familiarity and experience with Morro Bay to handle the processing on four projects of varying complexity, which estimated cost was $29,340. Recently there have been a number of advanced planning projects under consideration. Generally current planning projects take priority over advance projects as they are applicant sponsored and represent immediate development or new business opportunities. As such it is often difficult to find windows of time to work on advance projects and many times the projects become fractionalized and take many years to ® complete. Staffing the Planning Division with two full-time planners would help in providing a fixed number of hours available for both current and advanced. projects. Mr. Livick recommended the City Council authorize the hiring of the recently vacated position of the Associate Planner at the Assistant Planner level. Councilmember Winholtz stated she would be more likely to support this if it was a promotion. Councilmember Grantham stated he is supportive of authorizing the hiring of the Assistant Planner position. Councilmember Smukler stated it is difficult to support this position because he is aware of potential customers who were not well -received by the planning department. He said he will reluctantly support authorizing this position. Councilmember Borchard agreed that she has also received comments from members in the community who are being challenged in getting things accomplished in the planning department. Councilmember Borchard stated she is concerned if it is a timing issue, and does not want to slow the process down so she will support the hiring of this position; however, she does want to expedite the negotiation process to address benefits. Mayor Peters stated it is important to encourage the positive attitude in the working environment of the planning department right now and to have someone that may be ® interested and has one year experience is vital. Mayor Peters said she will support to authorize the hiring of this position. C MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2010 MOTION: Councilmember Grantham moved the City Council authorize the hiring of the recently vacated position of the Associate Planner at the Assistant Planner level. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) D-3 REVIEW OF DRAFT AMENDMENT TO CHAPTER 12.08 OF THE MORRO BAY MUNICIPAL CODE ADDING A LANDMARK TREE SECTION AND APPROVAL OF A REVISED MASTER STREET TREE LIST; (PUBLIC SERVICES) Public Services Director Rob Livick stated an ad -hoc volunteer tree committee was formed to review and update the City's policies and procedures as they relate to trees. The tree committee has been working on revisions to the Master Street Tree list, and other tree lists along with a revision to the City's Municipal Code to include provisions for the recognition and preservation of landmark trees. The committee is currently discussing • regulations regarding trees on private property, and has also proposed an update to the Master Street Tree list. The committee has reviewed the subject of landmark trees and has made recommendations for modifying the City's Municipal Code to recognize and protect these landmark trees. The committee has concluded that trees have an essential role supporting ® Morro Bay's economic and physical health and are a key element in Morro Bay's famous scenic beauty and wildlife habitat. Landmark tree recognition, designation, protection, and proactive maintenance is an important step in establishing valuable control measures to preserve our history as the City of Morro Bay evolves in the future. A new definition "Specimen Tree" is also being suggested, which would be defined as a tree that obviously belongs to a particular category but is of particular interest due to its individual distinguishing characteristics, such as color, texture, scent, or other pleasures it provides. W. Livick recommended the City Council approve the revised Master Street Tree list, endorse the other lists as suggestions, and review the proposed modifications to the Municipal Code, and direct staff to return with an ordinance as proposed or with modifications for first reading and introduction. Councilmember Winholtz expressed concern with eliminating the Blue -Gum Eucalyptus from the Open Space and Park Area list because that is what dominates our State Park and it is within the City boundaries. She also does not want to eliminate the Monterey Pine from the Open Space and Park Area list because those that are still remaining still have some resilience. Councilmember Winholtz read a determination on the Monterey Pine from Richard Hawley President of Green Space in Cambria who also came up with a variety that was hardy enough to resist the pitch canker disease. Councilmember Smukler would like to add Coast Live Oak (Quercus agrifolia) and Channel Islands Oak (Quercus tomentella) to the Private Residence list. He said the City does not have the resources to cut down trees that are not on the list, especially healthy trees. ® Councilmember Smukler stated it is important that there is.a canopy tree growing in the downtown district of the City, which will take years to accomplish. 7 C MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2010 Mayor Peters stated she does agree removing the Blue Gum Eucalyptus from the Open Space and Park Area list because it is does create problems and it is not native; however, she would like to maintain the Monterey Pine on the Master Tree list if planted in the right place. MOTION: Councilmember Winholtz moved the City Council accept the changes to the Ordinance as presented with the addition of the definition of Specimen Tree as Item (H); and, the mandatory list be accepted as is, and the second list include the Monterey Pine and Blue Gum Eucalyptus. The motion failed due to lack of a second. MOTION: Councilmember Borchard moved the City Council accept the changes to the Ordinance as presented with the addition of the definition of Specimen Tree as Item (H); and, the mandatory list be accepted as is, and the second list include the Monterey Pine. The motion was seconded by Councilmember Grantham. Councilmember Smukler requested to amend the motion to include the Monterey Pine (Pious radiate) to the Parks and Open Space and Master Tree lists; and, add the Coast Live Oak (Quercus agrifolia) and Channel Islands Oak (Quercus tomentella) Private Residence and Greywater Tree lists; the amendment was accepted by Councilmember Borchard and ® Councilmember Grantham. VOTE: The motion carried with Councilmember Winholtz voting no. (4-1) D-4 REQUEST TO APPROVE A RESPONSE TO THE GRAND JURY REGARDING SOLAR ENERGY; (ADMINISTRATION) City Manager Andrea Lueker stated on June 22 2010, the City received a report prepared by the San Luis Obispo County Grand Jury entitled "To Go Solar or Not To Go Solar". The Grand Jury report originated from a perceived lack of information and direction in the County on the topic of renewable energy, with the appearance that the County and surrounding cities are not utilizing the full potential of solar energy. Ms. Lueker recommended the City Council direct staff to send the attached letter to the Presiding Judge of San Luis Obispo County Superior Court responding to the Grand Jury reports entitled "To Go Solar or Not to Go Solar". Council reviewed the draft letter and made some amendments. MOTION: Mayor Peters moved the City Council direct staff to send the letter as amended by Council to the Presiding Judge of San Luis Obispo County Superior Court responding to the Grand Jury reports entitled "To Go Solar or Not to Go Solar". The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) u MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2010 D-5 AUTHORIZATION FOR THE CITY OF MORRO BAY TO ACT AS THE LEAD APPLICANT FOR THE JOINT SUSTAINABLE COMMUNITIES PLANNING GRANT (PROPOSITION 84) FOR THE GRANT APPLICATION ENTITLED "SMALL CITIES OF SAN LUIS OBISPO COUNTY CLIMATE ACTION PLAN"; (PUBLIC SERVICES) Public Services Director Rob Livick stated through Proposition 84 and the State's Strategic Growth Council, grant funds are available for a variety of local sustainable planning projects. In a cooperative effort the cities of Arroyo Grande, Atascadero, Grover Beach, Paso Robles, Pismo Beach and Morro Bay have developed a proposal entitled "Small Cities of San Luis Obispo County Climate Action Plan". The scope of the work includes developing a model Climate Action Plan toolbox, developing a CAP for each city tailored to their individual issues, developing and conducting a regional public engagement program and developing model' General Plan amendment policies. The grant application guidelines indicate that collaborative, regional applications will have a competitive edge and thus all the small cities agreed to utilize a collaborative approach. However, one city does need to step forward and become the applicant for the application. The group has requested that the City of Morro Bay take this role. Mr. Livick recommended the City Council adopt Resolution 45-10 authorizing the City of Morro Bay to act as the lead agency for the Joint Sustainable Communities Planning Grant for the grant application entitled "Small Cities of San Luis Obispo County Climate Action Plan". MOTION: Councilmember Grantham moved the City Council adopt Resolution 45-10 authorizing the City of Morro Bay to act as the lead agency for the Joint Sustainable Communities Planning Grant for the grant application entitled "Small Cities of San Luis Obispo County Climate Action Plan". The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) D-6 DISCUSSION ON AMENDING COUNCIL POLICIES AND PROCEDURES IN REGARD TO CALLING CLOSED SESSION; TO ALL REAL PROPERTY CONTRACTS GOING TO CLOSED SESSION PRIOR TO OPEN SESSION; IN REGARD TO COUNCIL LIAISONS TO ADVISORY BOARDS; AND, IN -REGARD TO CITY COUNCIL INPUT ON HIRING AND EVALUATION OF DEPARTMENT HEADS; (CITY ATTORNEY) City Attorney Robert Schultz stated the City Council requested staff to provide a report on adding to and amending sections of the Council Policies and Procedures Manual regarding calling closed session, real property contracts going to closed session prior to open session, Council appointments to advisory boards and City Council input on hiring and evaluation of Department Heads. Mr. Schultz recommended the City Council review the amendments provided, and direct staff to return to the City Council with a resolution amending the Council Policies and Procedures Manual in regard to calling closed session; to all real property contracts going to closed session prior to open session; in regard to Council liaisons ® to Advisory Boards; and, in regard to City Council input on hiring and evaluation of Department Heads. 9 C MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2010 The City Council discussed the following procedures: CALLING CLOSED SESSION 1.3.10 CLOSED SESSION MEETINGS (closed to the public) 1.3.10.1 Closed Session Meetings may be called by the majority of the Council and are regulated pursuant to the Brown Act. The most common purpose of a closed session is to avoid revealing confidential information that may, in specified circumstances, prejudice the legal or negotiating position of the City or compromise the privacy interests of employees. Closed sessions should be conducted keeping those narrow purposes in mind. Councilmember Winholtz and Councilmember Smukler stated they would prefer a Closed Session meeting be called by two members of Council. Councilmember Borchard and Councilmember Grantham stated they prefer a Closed Session meeting be called by a majority of Council ® MOTION: Mayor Peters moved the City Council approve Section 1.3.10 (Closed Session Meetings) of the Council Policies and Procedures Manual as presently written. The motion was seconded by Councilmember Borchard and carried with Councilmember Smukler and Councilmember Winholtz voting no. (3-2) REAL PROPERTY TRANSACTIONS 4.2.8 CLOSED SESSIONS MAY BE HELD TO DISCUSS: 4.2.8.1 Real Property. The purchase, sale, exchange or lease of real property with the City's negotiator; the real property and the person(s) with whom the City may negotiate must be announced in open session prior to the closed session. (GC54956.8). Prior to any final closed session on Real Property, Council will be provided with a copy of the draft agreement. Councilmember Winholtz stated she would like it to be mandatory for all real property transactions to go to Closed Session meeting prior to being heard in open session. Council agreed that all real property transactions shall come before them in Closed Session. 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2010 COUNCIL LIAISONS TO ADVISORY BOARDS 6.2 OTHER COUNCIL REPRESENTATION. SUBCOMMITTEES 6.2.1 COUNCIL LIAISON ASSIGNMENTS The T. ayeF ,.hell have dise.etien to assign individual Member-s e CO ..:1 fe a liftiSeR ele with Co nit OFgaRiZa4ieFIS OF events. At A The City Council shall assign a Council liaison wed to each of the following advisory boards: Recreation & Parks Commission, Harbor Advisory Board, Public Works Advisory Board, Community, Promotions Committee, and Tourism Business Improvement District Advisory Board. The purpose of the liaison assignment is to facilitate communication between the City Council and the advisory body. The liaison also helps to increase the Council's familiarity with the membership, programs and issues of the advisory body. In fulfilling their liaison assignment, members may eim to should either attend commission meetings watch the meeting broadcasts, and maintain communication with the commission ehair on a regular basis. Members should be sensitive to the fact that they are not participating members of the commission, but are there rather to create a linkage between the City Council and the commission. In interacting with commissions, Council Members are to reflect the views of the Council as a body. Being a Commission liaison bestows no special right with respect to Commission business. MOTION: Mayor Peters moved the City Council approve Section 6.2 (Council Liaisons to Advisory Boards) of the Council Policies and Procedures Manual as amended. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) . 6.3.3 COUNCIL MEETINGS 6.3.3.1 Members of an. advisory board are free to appear and give testimony before Council using the public microphone, after identifying whether they are speaking as a representative of the advisory board or as a private citizen. 6.3.3.2 Reports to Council must be in written form. 6.3.3.3 Advisory boards will provide quarterly written or oral reports to the City Council on a rotating member basis. �J 11 E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2010 MOTION: Mayor Peters moved the City Council approve Section 6.3.3 (Council Meetings) of the Council Policies and Procedures Manual as amended. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) COUNCIL INPUT ON HIRING DEPARTMENT HEADS The Morro Bay Municipal Code Section 2.12.090 provides the following: It shall be the duty and responsibility of the city manager to and he/she shall appoint, remove, promote and demote any officers and employees of the city, except the city attorney, subject to the provisions of Chapter 2.32 and resolutions, rules and regulations adopted pursuant thereto. However, in the past there has been City Council input in both the hiring of Department Heads and evaluations of Department Heads. Staff presents the following verbiage for inclusion in the Council Policies and procedures: 5.5 INPUT ON HIRING AND EVALUATION OF DEPARTMENT HEADS 5.5.1 HIRING In an outside recruitment situation where the City Manager is hiring a Department Head, the City Council, as a group will be invited to an informal social setting, - Isuch as lunch, to meet the top candidates for the position. Following the event, Council members will provide the City Manager with any comments regarding the candidates prior to the final decision of the City Manager. Councilmember Grantham stated he is in opposition of placing this section in the Council guidelines because the City Council is not a part of the hiring process and it is micromanaging. Councilmember Winholtz stated she does not agree with Councilmember Grantham's request to remove section 5.5.1 (Hiring) because it is valuable for Council to know what kind of candidates are coming to the City. Councilmember Smukler agreed with Councilmember Winholtz that the department head positions are prominent positions in the community, and this is an informal way for the City Council to have interaction with candidates and to offer the City Manager with comments. In an internal recruitment situation, the City Manager will provide the hiring plan to the City Council in a closed session, and Council members will have an opportunity for comments, prior to final hiring. Councilmember Borchard requested to remove the words "In an internal recruitment ® situation," in this paragraph. 12 l E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2010 5.5.2 INPUT ON EVALUATION OF DEPARTMENT HEADS Prior to the City Manager's completion of the annual evaluation of each Department Head (usually in December of each year), the City Council will be asked to submit in writing any comments, that will remain confidential they would like the City Manager to consider in regard to the performance of the Department Head. MOTION: Mayor Peters moved the City Council approve 5.5 (Input on Hiring and Evaluation of Department Heads) of the Council Policies and Procedures Manual as amended. The motion was seconded by Councilmember Winholtz and carried with Councilmember Borchard and Councilmember Grantham voting no. (3-2) D-7 LETTER REGARDING THE REGISTRATION FEE TO ATTEND THE LEAGUE OF CALIFORNIA CITIES ANNUAL BUSINESS MEETING; (COUNCIL) Councilmember Winholtz stated the League of California Cities holds its annual business meeting at the end of its annual conference each September. The annual business meeting is an opportunity for cities to vote on resolutions that form policy. To attend the annual meeting and participate in voting, a city's designated voter must pay to attend at least the last day of the conference. Councilmember Winholtz stated the fee to vote should be eliminated or greatly reduced, and suggested sending a letter to the County Mayors monthly meeting for discussion. If it is received favorably, then a similar letter or resolution should be sent onto the Channel Counties Division of the League of California Cities to be discussed at a quarterly meeting. MOTION: Councilmember Winholtz moved the City Council send the proposed letter to the San Luis Obispo County Mayors for their review. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested to agendize a discussion on amending the City tree list. ADJOURNMENT The meeting adjourned at 9:13 p.m. Recorded by: ,,,bjy,t Bridgett Kessling City Clerk 13 lk7 J NOTICE OF SPECIAL CLOSED SESSION MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Closed Session Meeting on Tuesday, August 31, 2010 at 8:30 am. to be held in the City Hall Conference Room located at 595 Harbor Street, Morro Bay, California. The City Council will be discussing the following: CS-1 NEGOTIATOR. Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. CS-2 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY isTRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel. • Property: Morro Bay Power Plant Outfall. Negotiating Parties: Dynegy and City of Morro Bay. Negotiations: Lease Terms. CS-3 GOVERNMENT CODE SECTION 54956.9(C): CONFERENCE WITH LEGAL COUNSEL DUE TO ANTICIPATED LITIGATION. Initiation of litigation exists based upon existing facts and the advice of legal counsel as to one (1) matter. • City of Morro Bay vs. Hayashi and Sons, Nagano and Giannini CS-4 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 (1) matter: • Burton vs. City of Morro Bay 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 40 MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — AUGUST 23, 2010 CLOSED SESSION — AUGUST 23, 2010 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 City Manager, the City's Designated ® Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. 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 I parcel Property: 781 Market Street and the Corner of Pacific Street and Market Street. Negotiating Parties: George Salwasser and the City of Morro Bay. Negotiations: Purchase and Sale Conditions. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. El PUBLIC SESSION — AUGUST 23, 2010 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 COUNCELMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, ® comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF AUGUST 9, 2010; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. r A-2 APPROVAL FOR THE MAYOR TO SIGN A LETTER IN SUPPORT OF SENATE BILL 3540 TO REAUTHORIZE THE NATIONAL ESTUARY ® PROGRAM; (HARBOR) RECOMMENDATION: Authorize the Mayor to sign a letter in support of SB 3540 to amend the Federal Water Pollution Control Act to reauthorize the National Estuary Program. A-3 ADOPTION OF ORDINANCE NO. 560 AMENDING TITLE 13 PUBLIC UTILITIES, CHAPTER 13.12 SEWERS TO ADD SECTION 13.12.215 COLLECTION OF PAST -DUE ACCOUNTS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Ordinance No. 560. A-4 ADOPTION OF ORDINANCE NO. 561 AMENDING SECTION 2.12.090 OF THE MORRO BAY MUNICIPAL CODE REGARDING CITY MANAGER'S POWER OF APPOINTMENT OF CITY OFFICERS AND EMPLOYEES; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 561. A-5 STATUS REPORT ON WATER USAGE FOR TUNE AND JULY 2010; (PUBLIC SERVICES) RECOMMENDATION: Review and file status report. ® A-6 RESOLUTION ACCEPTING A CALIFORNIA DEPARTMENT OF PUBLIC HEALTH GRANT FOR MODIFICATIONS TO THE DESALINATION FACILITY; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 43-10 authorizing the Utilities/Capital Projects Manager to enter into a funding agreement with the California Department of Health for a Proposition 84 Grant for the Brackish Water Reverse -Osmosis upgrades to the Desalination Facility. A-7 AWARD OF CONTRACT TO CALPORTLAND CONSTRUCTION FOR THE CONSTRUCTION OF THE ARRA-FUNDED NORTH MAIN STREET BIKE LANE AND STREET IMPROVEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 44-10 awarding the project contract to CalPortland Construction in the amount of $432,117.10 and authorizing a contingency fund of $43,200. A-8 AUTHORIZATION TO ADD AND HIRE A WASTEWATER COLLECTIONS SYSTEMS OPERATOR III; (PUBLIC SERVICES) RECOMMENDATION: Authorize hiring a Wastewater Collections Systems ® Operator III for the Wastewater Collections Division. 3 A-9 PROCLAMATION DECLARING SEPTEMBER 26-OCTOBER 2, 2010 AS "SEA OTTER AWARENESS WEEK"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES :NONE C. UNFINISHED BUSINESS - NONE D. NEW BUSINESS D-I STATUS REPORT AND REVIEW OF PERMIT FEE FOR WATERFRONT PROJECTS; (PUBLIC SERVICES) RECOMMENDATION: Receive report and file, or provide further direction to Station permit fees on waterfront projects. D-2 DISCUSSION ON CURRENT STATUS OF GENERAL PLAN/LOCAL COASTAL PLAN UPDATE AND DIRECTION ON FUTURE PROCESSING WITH THE CALIFORNIA COASTAL COMMISSION; (CITY ATTORNEY) RECOMMENDATION: Review report and provide direction to Staff of the process to follow on the City's General Plan/Local Coastal Plan. D-3 REQUEST TO APPROVE A RESPONSE TO GRAND JURY REGARDING is USE OF CITY VEHICLES; (ADMINISTRATION) RECOMMENDATION: Authorize the Mayor to send a letter to the Presiding Judge of the San Luis Obispo County Superior Court responding to the Grand Jury reports entitled "Use of City Vehicles". E. DECLARATION OF FUTURE AGENDA ITEMS F. 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. MATERIALS RELATED TO AN REM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. 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 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — AUGUST 23, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Grantham moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Borchard 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 City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. CS-2 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 1 parcel. • Property: 781 Market Street and the Corner of Pacific Street and Market Street. Negotiating Parties: George galwasser and the City of Morro Bay. Negotiations: Purchase and Sale Conditions. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:25 p.m. MOTION: Councilmember Winholtz moved the meeting be adjourned. The motion was seconded by Councilmember Grantham and unanimously carried. (5-0) The meeting adjourned at 5:25 p.m. E 1 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2010 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Eric Endersby Susan Lichtenbaum Rob Livick Tim Olivas Susan Slayton Planning Manager Joe Woods City Manager City Attorney City Clerk Harbor Operations Manager Harbor Business Manager Public Services Director Police Chief Administrative Services Director Kathleen Wold Recreation & Parks Director ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS 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 Todd Gailey, Morro Bay Engineer/Paramedic, announced Rescue Challenge 2010 Fitness Benefit between Morro Bay Fire Department and the U.S. Coast Guard will be held on September 18'b at Coleman Park which will benefit the Morro Bay Community Foundation. Keith Taylor congratulated the appointment of Bryan Millard as Commander of the Police Department. D'Onna Kennedy thanked those who voted for her at the Primary Election in June and encouraged citizens to vote for her at the General Municipal Election in November. She also offered her phone number and assistance to Veterans regarding how to receive support and benefits. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2010 Pauline Stansbury, President of Morro Bay Seniors Center, stated she has received many complaints regarding the lack of transportation provided to seniors in the City, and invited those interested to attend the special transit meeting on September 15's at the Community Center. Gay Skivalascaves, representative of San Luis Obispo Council of Governments (SLOCOG), expressed support for Item A-7 (Award of Contract to CalPortland Construction for the Construction of the ARRA-funded North Main Street Bike Lane and Street Improvement Project) and noted the deadline for funding of this project is September 30, 2010. Ken Vesterfelt referred to Item D-2 (Discussion on Current Status of General Plan/Local Coastal Plan Update and Direction on Future Processing with the California Coastal Commission) stating this plan was worked on for many years by many people and their work should be considered. Cathy Novak referred to Item D-1 (Status Report and Review of Permit Fee for Waterfront Projects) and most specifically Mr. Amani's project located at 571 Embarcadero. She reviewed the breakdown of hours provided by staff and an average ® cost for Mr. Amani's project noting her issue is with the Waterfront Master Plan fee of 200% times the base permit being added to these projects. Ms. Novak encouraged the Council to consider a tiered fee structure so that these small projects are not required to pay nearly 20% of the value of the project in permit fees. She said the City should encourage businesses to improve and .renovate their lease sites by reducing the Waterfront Master Plan fee to a point that is more in line with what the fee should be. Don Doubledee referred to Item D-2 stating as a past Planning Commissioner he remembers spending many hours on the General Plan/Local Coastal Plan Update. He said there was a lot of public input and much of this work reflected the needs and desires of the citizens and issues that need to be accomplished in order to make this a better City. Mr. Doubledee urged the Council not to throw this work out and recognize the merit of the previous work that was accomplished. Lexi Brown, Assistant Director of the Morro Bay National Estuary Program (MBNEP), thanked Morro Bay for its continued support of the MBNEP. She noted the new director of the MBNEP will be Adrienne Harris coming from Washington, D.C. John Barta referred to Item D-2 stating many years ago, the Coastal Commission requested the City review its General Plan/Local Coastal Plan issuing the City a Coastal Conservancy Grant. The City had a consultant provide an initial draft which was reviewed by the Planning Commission, who with the consultant worked on the draft for several years along ® with holding dozens of public hearings. Mr. Barta said the document was sent to the 3 E El E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2010 Coastal Commission and they did nothing with it, and now they say the Plan is stale. He said the City did its job and two generations of Planning Commission put many hours into this document. Mr. Barta recommended the City Council not buy into their bluff and go through with the process. Dorothy Cutter referred to Item D-2 stating after all the money the City spent on consultants and all the public comment received, there were a lot of unauthorized changes made by Planning Commission members and staff and sent to the Coastal Commission. She said Council should go back to the prior document before it was sent to the Coastal Commission and should receive current public comment so it would reflect what the community needs now. Ms. Cutter urged the Council to not accept the plan presented tonight. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:27 p.m.; the meeting resumed at 7:34 p.m. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF AUGUST 9, 2010; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 APPROVAL FOR THE MAYOR TO SIGN A LETTER IN SUPPORT OF SENATE BILL 3540 TO REAUTHORIZE THE NATIONAL ESTUARY PROGRAM; (HARBOR) RECOMMENDATION: Authorize the Mayor to sign a letter in support of SB 3540 to amend the Federal Water Pollution Control Act to reauthorize the National Estuary Program. A-3 ADOPTION OF ORDINANCE NO. 560 AMENDING TITLE 13 PUBLIC UTILITIES, CHAPTER 13.12 SEWERS TO ADD SECTION 13.12.215 COLLECTION OF PAST -DUE ACCOUNTS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Ordinance No. 560. 4 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2010 A4 ADOPTION OF ORDINANCE NO. 561 AMENDING SECTION 2.12.090 OF THE MORRO BAY MUNICIPAL CODE REGARDING CITY MANAGER'S POWER OF APPOINTMENT OF CITY OFFICERS AND EMPLOYEES; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 561. A-5. STATUS REPORT ON WATER USAGE FOR JUNE AND JULY 2010; (PUBLIC SERVICES) RECOMMENDATION: Review and file status report. A-6 RESOLUTION ACCEPTING A CALIFORNIA DEPARTMENT OF PUBLIC HEALTH GRANT FOR MODIFICATIONS TO THE DESALINATION FACILITY; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 43-10 authorizing the Utilities/Capital Projects Manager to enter into a funding agreement with the California Department of Health for a Proposition 84 Grant for the Brackish Water Reverse -Osmosis upgrades to the Desalination Facility. A-7 AWARD OF CONTRACT TO CALPORTLAND CONSTRUCTION FOR THE CONSTRUCTION OF THE ARRA-FUNDED NORTH MAIN STREET BIKE LANE AND STREET IMPROVEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 44-10 awarding the project contract to CatPortland Construction in the amount of $432,117.10 and authorizing a contingency fund of S43,200. A-8 AUTHORIZATION TO ADD AND HIRE A WASTEWATER COLLECTIONS SYSTEMS OPERATOR III; (PUBLIC SERVICES) RECOMMENDATION: Authorize hiring a Wastewater Collections Systems Operator III for the Wastewater Collections Division. A-9 PROCLAMATION DECLARING SEPTEMBER 26-OCTOBER 2, 2010 AS "SEA OTTER AWARENESS WEEK"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember Winholtz pulled Items A-1, A-4, A-6, A-7, A-8 from the Consent ® Calendar; and Mayor Peters pulled Item A-5. 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2010 MOTION: Councilmember Borchard moved the City Council approve Items A-2, A-3 and A-9 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF AUGUST 9, 2010; (ADMINISTRATION) Councilmember Winholtz referred to page 10, 2°d paragraph, and requested the removal of the second sentence; Council concurred. MOTION: Councilmember Winholtz moved the City Council approve Item A-1 as amended. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) A4 ADOPTION OF ORDINANCE NO. 561 AMENDING SECTION 2.12.090 OF THE MORRO BAY MUNICIPAL CODE REGARDING CITY MANAGER'S POWER OF APPOINTMENT OF CITY OFFICERS AND EMPLOYEES; (CITY ATTORNEY) ® Councilmember Winholtz stated she would like to revisit this section of the Municipal Code in order to discuss Council's participation in the hiring of department heads. E MOTION: Councilmember Winholtz moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) A-5 STATUS REPORT ON WATER USAGE FOR JUNE AND JULY 2010; (PUBLIC SERVICES) Mayor Peters requested staff clarify for public information when to report old corroded pipes that leak brown water to the City; Public Services Director Rob Livick responded with the requested information. MOTION: Mayor Peters moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2010 A-6 RESOLUTION ACCEPTING A CALIFORNIA DEPARTMENT OF PUBLIC HEALTH GRANT FOR MODIFICATIONS TO THE DESALINATION FACILITY; (PUBLIC SERVICES) Councilmember Winholtz asked if the City's groundwater permits will meet the stream flows of above 1.4cfs; Public Services Director Rob Livick responded affirmative. MOTION: Councilmember Winholtz moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) A-7 AWARD OF CONTRACT TO CALPORTLAND CONSTRUCTION FOR THE CONSTRUCTION OF THE ARRA-FUNDED NORTH MAIN STREET BIKE LANE AND STREET IMPROVEMENT PROJECT; (PUBLIC SERVICES) Councilmember Winholtz announced the award of the contract for the construction of the North Main Street Bike Lane and Street Improvement Project for public information. Councilmember Grantham stated he would be voting in opposition to the award of this econtract based on the poor economics of the country because it is irresponsible spending. MOTION: Councilmember Winholtz moved the City Council approve Item A-7 of the Consent Calendar. The motion was seconded by Councilmember Smukler and carried with Councilmember Grantham voting no. (471) A-8 AUTHORIZATION TO ADD AND HIRE A WASTEWATER COLLECTIONS SYSTEMS OPERATOR III; (PUBLIC SERVICES) Councilmember Winholtz stated she will be voting in opposition to the hiring of this position based on the economy of the City. Councilmember Borchard stated she also will be voting in opposition to the rehire of this position stating that the previous request for the hiring of another Wastewater Collections Systems Operator has not been filled yet. MOTION: Councilmember Grantham moved the City Council approve Item A-8 of the Consent Calendar. The motion was seconded by Mayor Peters and the motion failed with Councilmember Borchard, Councilmember Smukler and Councilmember Winholtz voting no. (2-3) B. PUBLIC HEARINGS. REPORTS & APPEARANCES — NONE. El VA MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2010 C. UNFINISHED BUSINESS —NONE. D. NEW BUSINESS D-1 STATUS REPORT AND REVIEW OF PERMIT FEE FOR WATERFRONT PROJECTS; (PUBLIC SERVICES) Public Services Director stated the waterfront fee is applied to all projects with a PD overlay within the Waterfront Master Plan Area. This fee is 200% of the standard fee for a Conditional Use Permit (CUP). The fee for a CUP for "new construction' is $3,620, which means that waterfront fee portion would be $7,240, for a total of $10,860; this fee does not include any environmental documentation fees or variance fees, which may add to this cost. In January 2009, the City Council reviewed the waterfront permit fees, and directed staff to "track current and future project costs with an analysis of time spent and return to Council with an appropriate fee level." Mr. Livick stated should the Council decide that reductions in the waterfront fees are to occur; staff recommends that the fee surcharge be set at 100% above the existing fee structure, which means the total fee amount would be $7,240 versus $10,860; or, Council could authorize staff to collect at each respective submittal the Use Permit fee for both the processing of the Concept Plan and the Precise Plan. Councilmember Winholtz stated she prefers tracking by time and materials or approximated averaged rate per project collected at different times during the project, whichever the applicant is most comfortable with. Councilmember Grantham stated the option of the surcharge being set at 100% above the existing fee schedule seems fair and a balanced way to go about it. Councilmember Smukler stated tracking by time and materials would seem to address smaller project concerns. Councilmember Borchard stated she supports tracking by time and materials with a deposit up front and tracking it for a year. Mayor Peters stated she supports tracking by time and materials with a tiered deposit. MOTION: Councilmember Smukler moved the City Council receive this report and make the adjustment to the Waterfront Master Plan fee schedule to time charged to time and materials with an upfront deposit that is tiered on the basis of the size of the project and includes an evaluation of the effectiveness of the program in one year. The motion was seconded by p Councilmember Borchard and carried unanimously. (5-0) E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2010 D-2 DISCUSSION ON CURRENT STATUS OF GENERAL PLAN/LOCAL COASTAL PLAN UPDATE AND DIRECTION ON FUTURE PROCESSING WITH THE CALIFORNIA COASTAL COMMISSION; (CITY ATTORNEY) City Attorney Robert Schultz stated in August 2004, the City Council approved an update to the General Plan/Local Coastal Plan (GP/LCP). The GP/LCP was then submitted to the California Coastal Commission (CCC) for certification. After the GP/LCP was submitted, a dispute arose between CCC staff and City staff on whether the GP/LCP application was complete. However, City staff was assured that CCC staff was working on their review of the City's GP/LCP update. On June 23, 2010, City Staff met with CCC Staff to discuss the status of their review of the City's GP/LCP update. CCC staff explained to City Staff that because the GP/LCP update had been sitting for over five years, it is now deemed stale and that the GP/LCP update would have to go through the public hearing process again. Because of this determination, the City Council has some options with the GP/LCP update which include: 1) continue with the use of our 1984 General Plan/Local Coastal Plan and do no further work on the update; 2) revert to the draft prepared by Crawford, Multari and Clark and begin the legal process .and public review; once the review is completed, resubmit to the Coastal Commission; or 3) revert to the second draft (document that Coastal Commission currently has) and begin the legal process and public review; once completed, resubmit to the Coastal Commission. Mr. Schultz recommended the City Council provide direction to Staff on the process to follow with the City's General Plan/Local Coastal Plan update. The City Council appointed Mayor Peters and Councilmember Winholtz to work with staff to compare the draft document prepared by Crawford, Multari and Clark and the document sent to the Coastal Commission along with receiving input from staff on what new items should be included. No further action was taken on this item. D-3 REQUEST TO APPROVE A RESPONSE TO GRAND JURY REGARDING USE OF CITY VEHICLES; (ADMINISTRATION) City Manager Andrea Lueker stated the Grand Jury report focuses its attention on the number of City -owned vehicles in each jurisdiction and a review of the policies in place to guide the use of those vehicles. The City of Morro Bay does not currently have a policy that specifically addresses the issue of take home vehicles, but is in the process of preparing such a policy. In addition, the number of take home vehicles in the report is misleading as the two Public Services vehicles that are described as take-home vehicles are actually used as duty -trucks and taken home when that employee is on -call. Under Penal Code Section 933.05, the City is required to indicate one of the following responses ® to the findings: 1) the respondent agrees with the finding; or 2) the respondent disagrees partially or wholly with the findings and why. Furthermore, as to each Grand Jury 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2010 recommendation, the responding party shall report one of the following actions: a) the recommendation has been implemented, with a summary regarding the implemented actions; b) the recommendation has not yet been implemented, but will be implemented in the future, with a timeframe for implementation; c) the recommendation requires further analysis; or d) the recommendation will not be implemented because it is not warranted or is not reasonable and an explanation why. Ms. Lueker recommended the City Council direct staff to send a letter to the Presiding Judge of San Luis Obispo County Superior Court responding to the Grand Jury reports entitled "Use of City Vehicles". Councilmember Winholtz suggested grammatical amendments to the letter; Council concurred. MOTION: Councilmember Winholtz moved the City Council authorize the Mayor to send the amended letter to the Presiding Judge of the San Luis Obispo County Superior Court responding to the Grand Jury reports entitled "Use of City Vehicles". The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Smukler requested to agendize a discussion on the Cold Canyon Landfill EIR process; he will provide information. Councilmember Winholtz requested to place a presentation on the agenda regarding Consumer Smart Meter. Councilmember Winholtz requested to place the discussion on landmark trees and the revision to the master tree list on the September agenda. ADJOURNMENT The meeting adjourned at 9:00 p.m. l Recorded by: Bridgett Kessling City Clerk E 10 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — AUGUST 9, 2010 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. 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.JUNE 28, 2010 AND JULY 12, 2010; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO 42-10 AMENDING THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT ADVISORY BOARD BY-LAWS IN RELATION TO MEMBER DESIGNATION; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 42-10. A-3 APPROVAL OF A LEASE AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO FOR USE OF THE PROPERTY LOCATED AT 625 HARBOR STREET FOR A FREE PUBLIC LIBRARY; (ADMINISTRATION) RECOMMENDATION: Approve the lease agreement with the County of San Luis Obispo. isTHE PROCLAMATION DECLARING THE MONTH OF AUGUST 2010 AS THE "MONTH OF THE DAHLIA" AND AUGUST 27 AND 28, 2010 AS "DAHLIA DAZE"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I ORDINANCE NO. 560 AMENDING TITLE 13 - PUBLIC UTILITIES, CHAPTER 13.12 (SEWERS) TO ADD SECTION 13.12.215, COLLECTION OF PAST -DUE ACCOUNTS — INTRODUCTION AND FIRST READING; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Approve first reading/introduction of Ordinance No. 560 by number and title only. B-2 INTRODUCTION AND FIRST READING OF ORDINANCE NO. 561 AMENDING MORRO BAY MUNICIPAL CODE SECTION 2.12.090 OF THE MORRO BAY MUNICIPAL CODE REGARDING CITY MANAGER'S POWER OF APPOINTMENT OF CITY OFFICERS AND EMPLOYEES; (CITY ATTORNEY) RECOMMENDATION: Approve first read ing/introduction of Ordinance No. 561 by ® number and title only. FA B-3 HEARING TO CONSIDER PUBLIC TESTIMONY REGARDING THE PROPOSED INCREASE IN ASSESSMENT TO THE MORRO BAY ® TOURISM BUSINESS IMPROVEMENT DISTRICT; (CITY ATTORNEY) RECOMMENDATION: Direct staff to increasing the Morro Bay Tourism Assessment from 2% to 3% for first September 13, 2010 City Council meeting. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS return with a draft Ordinance Business Improvement District reading and introduction at the D-1 DISCUSSION ON CURRENT STATUS OF LOCAL COASTAL PLAN/GENERAL PLAN UPDATE AND DIRECTION ON FUTURE PROCESSING WITH THE CALIFORNIA COASTAL COMMISSION; (CITY ATTORNEY) RECOMMENDATION: This item has been pulled from the agenda. D-2 DETERMINATION OF WHETHER DEVELOPMENT ENTITLEMENTS AND PERMITS AT 555 MAIN STREET HAVE EXPIRED PURSUANT TO MORRO BAY MUNICIPAL CODE SECTION 17.60.140; (CITY ATTORNEY) ® RECOMMENDATION: Review the report and make a determination on whether development entitlements at 555 Main Street have expired pursuant to Morro Bay Municipal Code Section 17.60.140. D-3 REAFFIRMATION OF CITY COUNCIL ACTION AT THE JOINT POWERS AGREEMENT MEETING ON JULY 15 REGARDING THE APPROVAL OF A CONTRACT FOR PROJECT MANAGEMENT (PM) SERVICES FOR THE UPGRADE OF THE MORRO BAY-CAYUCOS WASTEWATER TREATMENT PLANT; (CITY ATTORNEY) RECOMMENDATION: Reaffirm the action taken at Joint Powers Agreement meeting on July 15, 2010 and reapprove the award of a contract to Dennis Delzeit for Project Management (PM) Services for the Upgrade of the Morro Bay-Cayucos Wastewater Treatment Plant. D-4 DESIGNATION OF VOTING DELEGATE FOR 2010 LEAGUE OF CALIFORNIA CITIES CONFERENCE; (ADMINISTRATION) RECOMMENDATION: Designate a voting delegate to attend the League of California Cities Annual Business Meeting. E. DECLARATION OF FUTURE AGENDA ITEMS ® F. ADJOURNMENT iN 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. u 11 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS., IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIYATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. C! ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2010 VETERANS MEMORIAL. HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Susan Lichtenbaum Rob Livick Tim Olivas Mike Pond Susan Slayton City Manager City Attorney City Clerk Harbor Business Manager Public Services Director Police Chief Fire Chief Administrative Services Director ESTABLISH QUORUM AND CALL TO ORDER is MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT — there was no Closed Session agenda. PUBLIC COMMENT Brian Reynolds, San Luis Obispo County Library Director, addressed Item A-3 (Approval of a Lease Agreement with the County of San Luis Obispo for Use of the Property Located at 625 Harbor Street for a Free Public Library) and thanked the City for considering this lease agreement with the County for the use of the library. John Weiss, Chamber of Commerce, acknowledged Peter Candela for his outstanding leadership as the Chamber's Executive Director. Virginia Hiramatsu acknowledged and thanked those who participated in the Relay for Life event that was held last weekend noting the event raised $32,000 for cancer awareness. Claire Grantham announced where the Pertussis vaccine clinics for whooping cough were being held in the City. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —AUGUST 9, 2010 Joan Decker addressed Item A-3 requesting Council's support in approving the lease agreement between the County and the City for the use of the public library. Nancy Johnson announced Dahlia Daze will be held on August 27-28 at the Community Center with many fun events scheduled. Peter Candela, Director of Chamber of Commerce, stated he will be leaving the Chamber of Commerce on Friday, August 13th, and thanked those who he has worked with in the past few years. David Nelson addressed Item D-3 (Reaffirmation of City Council Action at the Joint Powers Agreement Meeting on July 15 Regarding the Approval of a Contract for Project Management (PM) Services for the Upgrade of the Morro Bay-Cayucos Wastewater Treatment Plant) stating he does not understand why Council would want to hire a project manager for the upgrade of the wastewater treatment plant when PERC has offered to plan, build and run a plant for $20 million. He said as a citizen he wants the best the City can have, and dumping water into the ocean is not the way to go when the City can have reclaimed water. is Joan Solu addressed Item A-2 (Resolution No 42-10 Amending the Morro Bay Tourism Business Improvement District Advisory Board By -Laws in Relation to Member Designation) and said she is available for questions. She also noted the Tourism Business Improvement District Advisory Board will be promoting events such as the upcoming Dahlia Daze festival. Bill Yates addressed Item D-2 (Determination of Whether Development Entitlements and Permits At 555 Main Street Have Expired Pursuant to Morro Bay Municipal Code Section 17.60.140) requesting Council's approval in extending the permits for 555 Main Street. He said completing this project would be an improvement to this site and would be good for the City. Lynda Merrill addressed the fence between Highway 1 and North Main Street and suggested a cyclone fence similar to the one along Highway 41 which is visibly more pleasing. She also mentioned the efforts of Ray McKelligott. Dorothy Cutter addressed Item D-2 and noted the permits for 555 Main Street should expire; she supports the City codes. John Barta addressed Item D-2 stating the extension of permits for 555 Main Street would create affordable housing and rid an eyesore in the City. He also addressed Item D-3 and said by leaving a meeting before a vote is breaking a promise to the people who ® voted for the elected officials. Mr. Barta paid tribute to Albert Calvillo and his family. N ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2010 Cathy Welles paid tribute to Albert Calvillo and his family. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:04 p.m.; the meeting resumed at 7:11 p.m. A CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETINGS OF JUNE 28, 2010 AND JULY 12, 2010; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO 42-10 AMENDING THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT ADVISORY BOARD BY-LAWS IN RELATION TO MEMBER DESIGNATION; (ADMINISTRATION) ® RECOMMENDATION: Adopt Resolution No. 42-10. E A-3 APPROVAL OF A LEASE AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO FOR USE OF THE PROPERTY LOCATED AT 625 HARBOR STREET FOR A FREE PUBLIC LIBRARY; (ADMINISTRATION) RECOMMENDATION: Approve the lease agreement with the County of San Luis Obispo. A-4 PROCLAMATION DECLARING THE MONTH OF AUGUST 2010 AS THE "MONTH OF THE DAHLIA" AND AUGUST 27 AND 28, 2010 AS "DAHLIA DAZE"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember Winholtz pulled Items A-2 and A-3 from the Consent Calendar, and Mayor Peters pulled Item A-4. MOTION: Councilmember Winholtz moved the City Council approve Item A-lof the Consent Calendar. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2010 A-2 RESOLUTION NO 42-10 AMENDING THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT ADVISORY BOARD BY-LAWS IN RELATION TO MEMBER DESIGNATION; (ADMINISTRATION) Councilmember Winholtz requested clarification on the designation of hoteliers and if it is based on the number of rooms of their hotels or the size of their hotels. Joan Solu, Tourism Business Improvement District Advisory Board Chair, responded the four members from the lodging industry shall consist of one member representing lodging rooms of less than 22 rooms, one member representing 50 or less rooms (single hotel or cumulative representation), and two members representing hotels "at large" (no specific number of rooms). MOTION: Councilmember Smukler moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-3 APPROVAL OF A LEASE AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO FOR USE OF THE PROPERTY LOCATED AT 625 HARBOR STREET ® FOR A FREE PUBLIC LIBRARY Councilmember Winholtz expressed concern with the term of this lease agreement stating in several conditions it notes that in 25 years the library lease will be terminated. She said she would prefer a finite date ahead of time to start renegotiation for the next 25 years. Councilmember Winholtz stated she would also like the mismatching of the map in Exhibit "A" to be clarified. City Manager Andrea Lueker stated this lease will be on a month -to -month lease agreement, which was unanimously approved by the San Luis Obispo County Board of Supervisors. She said the map will be changed administratively to include the parking. Ms. Lueker stated the lease agreement can be approved tonight pending this amendment. MOTION: Councilmember Borchard moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) A-4 PROCLAMATION DECLARING THE MONTH OF AUGUST 2010 AS THE "MONTH OF THE DAHLIA" AND AUGUST 27 AND 28, 2010 AS "DAHLIA DAZE"; (ADMINISTRATION) Mayor Peters pulled Item A4 in order to make a presentation. r ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —AUGUST 9, 2010 MOTION: Councilmember Grantham moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 ORDINANCE NO. 560 AMENDING TITLE 13 - PUBLIC UTILITIES, CHAPTER 13.12 (SEWERS) TO ADD SECTION 13.12.215, COLLECTION OF PAST -DUE ACCOUNTS — INTRODUCTION AND FIRST READING; (ADMINISTRATIVE SERVICES) Administrative. Services Director Susan Slayton stated currently, Chapter 13.04 of the Morro Bay Municipal Code; Water Service and Rates, contains Section 230 - Collection of past -due accounts, which allows the City to avail itself of any legal remedy by which the City might collect water charges, fees and penalties. This Section does not exist in Chapter 13.12 - Sewers. While Section 13.12.210 — Collections, does state that the sewer service charge will be added on the customer's bimonthly utility bill, it is silent as to the collection of past -due accounts. One could assume that since the sewer charges are added to the utility bill, that would give the City the right to use any legal means to collect the past due amount ® based on Section 13.04.230. However, staff feels that by putting Section 13.12.215 into the Municipal Code, it will clearly identify the City's rights to collect past -due sewer charges. Ms. Slayton recommended the City Council move for the introduction and first reading of Ordinance No. 560, by number and title only, amending the Morro Bay Municipal Code Title 13, Chapter 13.12 to add Section 13.12.215 entitled Collection of Past -Due Accounts, which will authorize the City to use any legal means to collect past -due accounts. Mayor Peters opened the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. MOTION: Councilmember Grantham moved the City Council approve Ordinance No. 560 amending Title 13 - Public Utilities, Chapter 13.12 (Sewers) to add Section 13.12.215, Collection of Past -Due Accounts for introduction and first reading by number and title only. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) City Manager Andrea Lueker read Ordinance No. 560 by number and title only. f,J E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2010 B-2 INTRODUCTION AND FIRST READING OF ORDINANCE NO. 561 AMENDING MORRO BAY MUNICIPAL CODE SECTION 2.12.090 OF THE MORRO BAY MUNICIPAL CODE REGARDING CITY MANAGER'S POWER OF APPOINTMENT OF CITY OFFICERS AND EMPLOYEES; (CITY ATTORNEY) City Attorney Robert Schultz stated the City Council on December 14, 2009 directed Staff to amend the City Manager's Power of Appointment to reflect current practice. The Morro Bay Municipal Code Section 2.12.090 currently provides the following: 2.12.090 - Power of appointment. It shall be the duty and responsibility of the city manager to and he shall appoint, remove, promote and demote any officers and employees of the city, except the city clerk, city attorney, city engineer and city treasurer, subject to the provisions of Chapter 2.32 and resolutions, rules and regulations adopted pursuant thereto. Ordinance No. 561 would amend the Morro Bay Municipal Code to read as follows: ® 2.12.090 - Power of appointment. It shall be the duty and responsibility of the city manager to and he/she shall appoint, remove, promote and demote any officers and employees of the city, except the a city attorney, eity engineer and treasurer, subject to the provisions of Chapter 2.32 and resolutions, rules and regulations adopted pursuant thereto. Mr. Schultz recommended the City Council move for. first reading and introduction of Ordinance No.561 by number and title only. Mayor Peters opened the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. MOTION: Councilmember Borchard moved the City Council approve Ordinance No. 561 amending Morro Bay Municipal Code Section 2.12.090 of the Morro Bay Municipal Code regarding City Manager's Power of Appointment of City Officers and Employees for introduction and first reading by number and title only. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) City Manager Andrea Lueker read Ordinance No. 561 by number and title only. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2010 B-3 HEARING TO CONSIDER PUBLIC TESTIMONY REGARDING THE PROPOSED INCREASE IN ASSESSMENT TO THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT; (CITY ATTORNEY) City Attorney Robert Schultz stated this item continues the process to increase the Morro Bay Tourism Business Improvement District (MBTBID) Assessment from 2% to 3% by asking the Council to take public testimony regarding the increase and to levy the assessments within the City's jurisdiction. The purpose of this public meeting is to receive oral and written protests by the owners of lodging businesses within the City's jurisdiction. If there is written protest from owners of lodging businesses within the City's jurisdiction that pay 50% or more of the proposed assessment, no further proceedings may be taken for a period of one year. If there is not such a majority protest, the increase in the assessment from 2% to 3% will continue to the public hearing on September 13, 2010 to consider the amended ordinance. A second and final reading would be held on September 27, 2010 (scheduled as a consent item). The Parking and Business Improvement Area Law of 1989, Streets and Highways Code Section 36500 et seq., sets out the sequence of events required for the formation and amendment of a BID. The Resolution of Intent approved by the Council on July 12, 2010 instructed the City Clerk to provide notice of the public meeting and future public hearing. On July 14, 2010 ® a notice of proposed increase in assessment was sent to all owners of lodging businesses within the proposed district setting August 9, 2010 as the public meeting to consider all written and oral protest. All written protest must be received by the City Clerk before the close of the September 13, 2010 public hearing on the amended ordinance. Mr. Schultz recommended the City Council receive public testimony regarding the proposed increase in assessments from 2% to 3% to the M 3TBID and then move to direct Staff to bring forth the draft Ordinance to increase the MBTBID Assessment at your September 13, 2010 meeting. Mayor Peters opened the hearing for public comment. Joan Solu, Tourism Business Improvement District Advisory Board Chair, stated the Tourism Business Improvement District Advisory Board supports the assessment being brought back to 3%. She said some of those funds will go towards the Visitors Center, which will relieve the City's General Fund. Ms. Solu stated the Board issued start-up funds to the Morro Bay 4's, Inc., which benefited the local hotels. She said the City will benefit from these funds City-wide by creating jobs and promoting the City with a larger budget release towards the General Fund. Mayor Peters closed the public comment hearing. u 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2010 MOTION: Councilmember Smukler moved the City Council direct Staff to bring forth the draft Ordinance to increase the Morro Bay Tourism Business Improvement District Assessment from 2% to 3% for first reading and introduction at the September 13, 2010 City Council meeting. Councilmember Grantham stated he would be voting in opposition because in order to balance the budget, the City had to lay-off City employees and in the near future the City Council will be considering another $500,000 cut to the budget. He said it was his intent to use this 1% to go towards City expenses to help offset some of the problems the City will be facing. VOTE: The motion was seconded by Councilmember Borchard and carried with Councilmember Grantham voting no. (4-1) C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-I DISCUSSION ON CURRENT STATUS OF LOCAL COASTAL ® PLAN/GENERAL PLAN UPDATE AND DIRECTION ON FUTURE PROCESSING WITH THE CALIFORNIA COASTAL COMMISSION; (CITY ATTORNEY) This item was pulled from the agenda. D-2 DETERMINATION OF WHETHER DEVELOPMENT ENTITLEMENTS AND PERMITS AT 555 MAIN STREET HAVE EXPIRED PURSUANT TO MORRO BAY MUNICIPAL CODE SECTION 17.60.140; (CITY ATTORNEY) Councilmember Borchard stepped down due to a conflict of interest. City Attorney Robert Schultz stated on August 8, 2005, the City Council approved Tract Map, Conditional Use Permit and Coastal Development Permit to subdivide the westerly lots (5 & 6) into 5 parcels for a Community Housing Project with exceptions to common open space. The proposed project was also approved to develop the easterly lots (3 & 4) with commercial buildings with a specified commercial mix of 25 percent in conjunction with a total of 14 one -bedroom apartment units with exceptions to parking standards. On August 14, 2006, the City Council approved an amendment to the proposed project easterly lots (3 & 4) by reducing the amount of commercial space to 2,190 sq ft from the approved amount of 3,113 sq ft and increasing the number of residential units from the approved 14 units to 16 units, an increase of two one -bedroom units. The Conditional ® Use Permit and Coastal Development Permit were initiated by the issuance of MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 9, 2010 encroachment permits for sewer and public improvements on December 1, 2005 and the final map was recorded on April 11, 2006. The Applicant/Owner completed the Community Housing Project but the commercial/residential development was never completed. The last action taken directly related to physical improvements at 555 Main Street was final approval of the subdivision improvements on February 19, 2008. In July 2009, City Staff determined that the permit for development of the two easterly lots (3 & 4) for two commercial buildings, 16 one -bedroom apartment units and the joint parking had expired due to inactivity (abandonment) for over twelve consecutive months. The property at 555 Main has since been foreclosed on and is now owned by Coast National Bank. On June 30, 2010, the City received a letter from Coast National Bank requesting that the City determine that the entitlements for the project are in effect. Since City Staff had already determined that the project entitlements had expired, the issue has been brought to the City Council for final determination. Mr. Schultz recommended the City Council make a determination on whether development entitlements and permits at 555 Main Street have expired pursuant to Morro Bay Municipal Code Section 17.60.140. Marshall Ochylski, stated he represents Coast National Bank in legal matters concerning the planning entitlements and construction permits approved by the City. He said Coast ® National Bank has entered into a purchase and sale contract with Chelsea Investment Corporation (Chelsea) to purchase and complete the Morro del Mar project located at 555 Main Street. W. Ochylski stated Chelsea proposes to complete the construction and operate the building as a senior affordable housing for the next 55 years in partnership with Pacific Southwest Community Development Corporation. The purchase of the property by Chelsea and its subsequent development by them is conditioned on several contingencies, one of which is confirmation that the existing entitlements are still in effect. If the existing entitlements are determined to still be in effect, then Chelsea will seek an amendment to the entitlements, to be presented at a subsequent City Council meeting, to permit the project to proceed as an all -residential affordable housing project rather than as an at -market apartment project with two commercial units. Mr. Ochylski stated since the permit was approved for the entire project, it is unclear how the permit can be deemed abandoned once a building permit was issued and construction commenced without the City providing any written notice to the permittee. The building permit should remain in effect unless there was written notice and an"opportunity to correct the deficiency, which in this case apparently would be the failure to pursue the project in a timely basis. Mr. Ochylski stated his client requests the City to determine that the permits were not abandoned and allow the project to proceed forward in accordance with the previous approvals. Councilmember Grantham stated he supports extending entitlements and building permits for this project for one year because of the deed restriction and the benefit of creating ® affordable housing. 9 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2010 Councilmember Smukler agreed and noted if the entitlements and permits are granted, the project could move forward sooner, and the City could identify a return and reinvestment on a portion of the savings back into the project to increase its value. He said he would like the project to recognize all it can to use green building practices. Councilmember Winholtz stated she will go along with the entitlements but not because there are exceptions. She feels the City is within its requirements and should not make any exceptions; Councilmember Smukler agreed with this statement. Mayor Peters stated criteria should be established in order to keep a project ongoing, especially when it is based on a financial situation; she noted correspondence should be considered sufficient. She said she supports extending the entitlements because this project will be an improvement to the community. MOTION: Councilmember Winholtz moved the City Council determine that the development fees and permits for 555 Main Street are still in force. The motion was seconded by Councilmember Grantham and carried ® unanimously. (5-0) Council discussed project details as follows: Councilmember Winholtz stated she would like the size of the units reduced to 400 square feet, which would allow two more units totaling 18 units. She said she would like the retention of the commercial units that could be senior -oriented. Councilmember Winholtz stated she would like more very low (30-40%) income housing, and a consideration for parking or golf cart use. Councilmember Smukler stated he would like the project to incorporate water resources and green building practices; and, he supports the very low (3040%) income housing to increase the number of units. Mayor Peters stated she would like a couple of handicap units incorporated in the project. She said she would like the commercial unit(s) to be related to the residents of the area. Mayor Peters called for a break at 8:20 p.m.; the meeting resumed at 8:30 p.m. n 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2010 D-3 REAFFIRMATION OF CITY COUNCIL ACTION AT THE JOINT POWERS AGREEMENT MEETING ON JULY 15 REGARDING THE APPROVAL OF A CONTRACT FOR PROJECT MANAGEMENT (PM) SERVICES FOR THE UPGRADE OF THE MORRO BAY-CAYUCOS WASTEWATER TREATMENT PLANT; (CITY ATTORNEY) City Attorney Robert Schultz stated at its July 15, 2010 JPA meeting, the Morro Bay City Council took action and approved the award of a contract to Dennis Delzeit for Project Management (PM) Services for the upgrade of the Morro Bay-Cayucos Wastewater Treatment Plant. Mayor Peters and Councilmembers Grantham and Winholtz were present at the meeting, Councilmember Borchard participated in the meeting by telephone, and Councilmember Smukler was not present for the meeting. After the public comment and Council discussion at the JPA meeting on the award of a contract for a Project Manager, Councilmember Winholtz made a statement and left the meeting; a motion was made by Mayor Peters and seconded by Councilmember Grantham to award a contract to Dennis Delzeit for Project Management (PM) Services for the upgrade of the Morro Bay-Cayucos Wastewater Treatment Plant; the motion passed 3-0 with Councilmember Borchard voting by telephone. Since Councilmember Winholtz left the meeting and Councilmember Smukler was not present at the JPA meeting, an issue has ® arisen as to whether there was a proper quorum at the meeting to conduct City business. In order to clear up any confusion on whether a quorum existed at the July 15, 2010 JPA meeting, Mr. Schultz recommended the City Council reaffirm the action taken at Joint Powers Agreement meeting on July 15, 2010 and reapprove the award of a contract to Dennis Delzeit for Project Management (PM) Services for the Upgrade of the Morro Bay-Cayucos Wastewater Treatment Plant. MOTION: Mayor Peters moved the City Council reaffirm the action taken at Joint Powers Agreement meeting on July 15, 2010 and reapprove the award of a contract to Dennis Delzeit for Project Management (PM) Services for the Upgrade of the Morro Bay-Cayucos Wastewater Treatment Plant. The motion was seconded by Councilmember Grantham. Councilmember Winholtz stated her intent of not voting at the JPA meeting on July15, 2010 was due to the lack of information to make a decision. She said she will be voting in opposition to this motion due to the process. Councilmember Borchard stated for clarification this JPA meeting was scheduled during a week that vacations are usually scheduled due to a canceled Council meeting. She decided to Skype in from her destination at her expense to participate in the vote at this JPA meeting, which is not an uncommon practice which has been done by other elected and appointed officials. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —AUGUST 9, 2010 Mayor Peters stated she does not agree that this meeting was not conducted properly. She said she entrusts staff to have the knowledge of who would be a more qualified project manager for the upgrade of the wastewater treatment plant; as Council should also trust in staffs qualifications. Councilmember Smukler stated he will be voting in opposition to this motion due to the process, lack of information, and no alternatives or choices were given for consideration. He said as Council we are here to represent the public. Councilmember Smukler stated this project is here for the citizens in the long-term, and Council should have influence as was laid out in the Request for Proposal process; if not, Council is not fulfilling their obligations as representatives of the citizens. Councilmember Grantham stated his constituency requested this project keep going, which is a responsibility he takes seriously. He said he trusts the wisdom and judgment of staffs recommendation, and supports awarding the contract to Dennis Delzeit for Project Management Services for the upgrade of the wastewater treatment plant. VOTE: The motion carried with Councilmember Smukler and Councilmember Winholtz voting no. (3-2) D4 DESIGNATION OF VOTING DELEGATE FOR 2010 LEAGUE OF CALIFORNIA CITIES CONFERENCE; (ADMINISTRATION) The City Council declared there would be no representation at the League of California Cities Conference or Business Meeting this year due to budgetary circumstances. No further action was taken. E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested to agendize a discussion before the Planning Commission on the definition for abandonment of development projects, and report back to Council. Councilmember Winholtz stated she would like to consider sending a letter to the League of California Cities regarding the requirement of registration fee to vote at the annual conference business meeting. Councilmember Winholtz requested to agendize a discussion on climate change and adaptation at the next joint City Council/Planning Commission meeting. 12 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2010 .Councilmember Winholtz requested to agendize a discussion on amending Council Policies and Procedures in regard to all real property contracts to go to Closed Session prior to Open Session. Councilmember Winholtz requested to agendize a discussion on amending Council Policies and Procedures in regard to calling a Closed Session meeting. Councilmember Smukler requested the Public Works Advisory Board agendize a public hearing on the Transit Flex Fix Route in order to receive public input. Councilmember Smukler requested to agendize a discussion on the City's tree list and landmark trees in September. Councilmember Borchard requested to agendize a discussion on the Award of the Transit Contract and the Marketing Contract. ADJOURNMENT The meeting adjourned at 9:26 p.m. Recorded by: Bridgett Kessling City Clerk n 13 0 Fq City of Morro Bay Morro Bay, CA 93442 (805) 772-6200 CITY OF MORRO BAY CITY COUNCIL NOTICE OF CANC ) MEETING THE REGULAR CITY COUNCIL MEETING SCHEDULED FOR MONDAY, JULY 269 2010 HAS BEEN CANCELED The next regularly scheduled meeting will be held on Monday, August 9, 20109 6:00 p.m., Veterans Hall. Is 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. 970 Morro Bav Boulevard PUBLIC SERVICES 955 Shasta Avenue RECREATION & PARKS 1001 Kennedv Wav ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING - JULY 12, 2010 CLOSED SESSION - JULY 12, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA ® CS-1 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES. Discussions regarding Personnel Issues including one (1) public employee regarding evaluation, specifically the City Attorney. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 11 ® PUBLIC SESSION — JULY 12, 2010 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. 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 JUNE 28, 2010; (ADMINISTRATION 0 RECOMMENDATION: This item has been pulled from the agenda. ® A-2 RESOLUTION CALLING A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 2, 2010; AND REQUESTING THE BOARD OF SUPERVISORS OF SAN LUIS OBISPO COUNTY TO CONSOLIDATE SAID ELECTION WITH THE STATEWIDE GENERAL ELECTION; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 41-10. A-3 APPROVAL OF THE AMENDMENTS TO THE BYLAWS FOR THE COMMUNITY PROMOTIONS COMMITTEE; (ADMINISTRATION) RECOMMENDATION: Approve the Community Promotions Committee Bylaws as amended. A-4 APPROVAL OF THE VISITORS CENTER CONTRACT FOR FISCAL YEAR 2010/11; (ADMINISTRATION) RECOMMENDATION: Approve the Visitors Center Contract for Fiscal Year 2010/11. B. PUBLIC HEARINGS. REPORTS & APPEARANCES ® B-1 ADOPTION OF RESOLUTION NO. 40-10 DECLARING THE CITY'S INTENTION TO INCREASE THE ASSESSMENT FROM 2% TO 3% WITIIIN THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT, AND FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND A PUBLIC HEARING THEREON AND GIVING NOTICE THEROF; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 40-10. B-2 DISCUSSION REGARDING MAKING CITY ADVISORY BOARDS MORE INVOLVED AND EFFECTIVE; (ADMINISTRATION) RECOMMENDATION: Discuss and determine ways to create more interaction between advisory boards and the City Council. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 RECOMMENDATION ON AMENDING THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT BYLAWS IN RELATION TO MEMBER DESIGNATION; (ADMINISTRATION) RECOMMENDATION: Review the Morro Bay Tourism Business Improvement ® District Advisory Board Member designations and direct staff accordingly. 3 ® D-2 REQUEST UTILIZATION OF PARK -IN -LIEU FUNDS FOR THE PREPARATION OF AN INITIAL STUDY — MITIGATED NEGATIVE DECLARATION AND COMPLETION OF CALIFORNIA ENVIRONMENTAL QUALITY ACT DOCUMENT FOR THE TEEN CENTER MASTER PLAN; (RECREATION & PARKS) RECOMMENDATION: Approve the request to utilize Park -in -Lieu funds for the preparation of the Initial Study -Mitigated Negative Declaration and completion of the California Environmental Quality Act requirements for the Teen Center Master Plan. C D-3 REQUEST TO APPROVE A RESPONSE TO THE GRAND JURY REGARDING LEAF BLOWERS; (ADMINISTRATION) RECOMMENDATION: Authorize staff to send a letter to the Presiding Judge of the San Luis Obispo County Superior Court responding to the Grand Jury report entitled "Leaf Blower Hazards in San Luis Obispo County." E. DECLARATION OF FUTURE AGENDA ITEMS F. 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. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. 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 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION—JULY 12, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Borchard 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 Attorney. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:07 p.m. MOTION: Councilmember Winholtz moved the meeting be adjourned. The motion was seconded by Councilmember Borchard and unanimously carried. (5-0) The meeting adjourned at 5:07 p.m. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2010 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney Bridgett Kessling City Clerk Eric Endersby Harbor Operations Manager Susan Lichtenbaum Harbor Business Manager Tim Olivas Police Chief Mike Pond Fire Chief Susan Slayton Administrative Services Director Dylan Wade Utilities/Capital Projects Manager Joe Woods Recreation & Parks Director ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session to discuss Government Code Section 54957; Personnel Issues — the evaluation of the City Attorney. Mr. Schultz reported the City Council did take action relating to the City Attorney's contract as follows: 1) the contract was changed from a 4-year agreement to a 2-year agreement; and 2) the termination without cause contract clause was changed from a 9-month severance to a 6-month severance. The motion was passed 4-1 with Councilmember Grantham voting no. E PUBLIC COMMENT Susan Brown, Manager of Morro Bay Transit/Trolley, reviewed the current transit hours and services. She said the 4 s of July was a successful time for the public transportation system in the City. Virginia Hiramatsu announced a "Bunko Against Cancer" game will be held on July 15`" at St. Timothy's Church and the proceeds will benefit Relay for Life. 2 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 12, 2010 Mike Anderson expressed his concern and that of his neighbors on Island Street with the noise created by the dog park at Del Mar Park. He requested the City Council consider this item at a future meeting. Joe Hoeiilich, Member of Morro Bay Pups and neighbor to the park, stated the dog park has been a good experience for the most part. He said Morro Bay Pups would be happy to work out any issues that there may be. Mayor Peters closed the hearing for public comment. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF JUNE 28, 2010; (ADMINISTRATION) ® RECOMMENDATION: This item has been pulled from the agenda. A-2 RESOLUTION CALLING A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 2, 2010; AND REQUESTING THE BOARD OF SUPERVISORS OF SAN LUIS OBISPO COUNTY TO CONSOLIDATE SAID ELECTION WITH THE STATEWIDE GENERAL ELECTION; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 41-10. A-3 APPROVAL OF THE AMENDMENTS TO THE BYLAWS FOR THE COMMUNITY PROMOTIONS COMMITTEE; (ADMINISTRATION) RECOMMENDATION: Approve the Community Promotions Committee Bylaws as amended. A4 APPROVAL OF THE VISITORS CENTER CONTRACT FOR FISCAL YEAR 2010/11; (ADMINISTRATION) RECOMMENDATION: Approve the Visitors Center Contract for Fiscal Year 2010/11. ® Councilmember Winholtz pulled Items A-3 and A-4 from the Consent Calendar. 3 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 12, 2010 MOTION: Councilmember Borchard moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-3 APPROVAL OF THE AMENDMENTS TO THE BYLAWS FOR THE COMMUNITY PROMOTIONS COMMITTEE; (ADMINISTRATION) Councilmember Winholtz made the following amendments to the I' paragraph, 2°d sentence of the proposed bylaws for the Community Promotions Committee: "The purpose of the CPC shall be to act on behalf of the Morro Bay City Council on policies and expenditure programs to advertise and promote the City of Morro Bay and its special events as a tourist destination point in areas both inside and outside the boundaries of San Luis Obispo County." 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-4 APPROVAL OF THE VISITORS CENTER CONTRACT FOR FISCAL YEAR 2010/11; (ADMINISTRATION) Councilmember Winholtz requested the following amendments to the Visitors Center Contract: Condition #6 ...... Operational hours will include a minimum of 8 hours Monday -Friday, 6 hours on Saturday and 4 hours on Sundays and Holidays (excluding those referenced above).... Condition #I I ...... The City Administrative Services Director shall work with the Chamber to perform a detailed financial review at the end of the fiscal year which will be forwarded to the Community Promotions Committee. MOTION: Councilmember Winholtz moved the City Council approve Item A4 of the Consent Calendar as amended. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) Mayor Peters called for a break at 7:02 p.m.; the meeting resumed at 7:13 p.m. r1 u E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2010 B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 ADOPTION OF RESOLUTION NO. 40-10 DECLARING THE CITY'S INTENTION TO INCREASE THE ASSESSMENT FROM 2% TO 3% WITHIN THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT, AND FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND A PUBLIC HEARING THEREON AND GIVING NOTICE THEROF; (CITY ATTORNEY) City Attorney Robert Schultz stated State law allows Cities to form Assessment Districts, pursuant to the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Sections 36500, et seq. The Morro Bay Tourism Business Improvement District (MBTBID) was established in May of 2009. Pursuant to Ordinance 546, for fiscal year 09/10 the assessment was 3%. For fiscal year 10/11, the assessment is set at 2%. The MBTBID Advisory Board has recommended that the City consider increasing the assessments back to 3% to provide additional resources for the purpose of promoting tourism. At the June 28, 2010 City Council meeting, Council directed staff to return with a resolution to increase the assessments within the Morro Bay Tourism Business Improvement District back to 3%. Mr. Schultz recommended the City Council adopt Resolution 40-10 declaring the City's intention to increase the assessment from 2% to 3% within the MBTBID, and fixing the time and place of a public meeting and a public hearing thereon and giving notice thereof. Mayor Peters opened the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. MOTION: Councilmember Borchard moved the City Council adopt Resolution 40-10 declaring the City's intention to increase the assessment from 2% to 3% within the Morro Bay Tourism Business Improvement District, and fixing the time and place of a public meeting and a public hearing thereon and giving notice thereof. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) B-2 DISCUSSION REGARDING MAKING CITY ADVISORY BOARDS MORE INVOLVED AND EFFECTIVE; (ADMINISTRATION) Mayor Peters stated our various City advisory boards provide important information and discussion forums for citizens regarding each department. They also provide input and recommendations to the City Council on issues pertaining to those departments. Recently there seems- to be growing dissatisfaction from the board members regarding their effectiveness and value to the city government process. It is difficult for Council Members to ® watch all of the advisory board meetings, but it is important to know what transpires beyond 5 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2010 simply reading the minutes. Mayor Peters suggested the following: 1) each councilmember becomes liaison to one of the boards and reports on their activities; and/or 2) each board has a representative to give monthly reports at a council meeting. Mayor Peters opened the hearing for public comment. Bill Luffee, Harbor Advisory Board Member, stated he does not know what the goal is for the Harbor Advisory Board. He requested the City Council give the Board the tasks needed on the harbor. Mr. Luffee stated the Harbor Advisory Board could be more productive if there was better communication and goals set for the Board. Karen Croley, Recreation & Parks Commissioner, stated she also has a concern with the lack of communication between the City Council and the Commission, and she supports having a Council liaison person representing the Commission. Joan Solu, Tourism Business Improvement District Advisory Board, stated she supports having a liaison from Council representing the Board. She said she also supports reporting to Council with updates, however she would like that responsibility to be rotated by Board Members and not only reported by the Chair. Barbara Spagnola, Measure Q Committee, stated she supports the liaison idea. She said she would like to see more collaboration between the boards in order to share their expertise. Ms. Spagnola recommended an annual meeting of all boards to foster communication. Mayor Peters closed the public comment hearing. Councilmember Smukler stated he supports holding an annual workshop or open house for all the boards to collaborate and to meet each other as well as staff and members of the community. Councilmember Borchard stated having focused goals could help expedite projects. She said she supports an annual meeting of all boards. Councilmember Borchard stated the collaboration of boards on certain projects would be a good idea and the rotation of Council liaisons would also be a good idea. Councilmember Grantham stated an annual rotation as liaison would be effective. He said he supports receiving a report from a different board at each Council meeting. Councilmember Winholtz stated she supports greater involvement with the City boards. El e ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2010 The City Council agreed to be liaison to the following Commission/Advisory Boards: Recreation & Parks Commission — Councilmember Grantham Harbor Advisory Board — Councilmember Borchard Community Promotions Committee — Councilmember Winholtz Public Works Advisory Board - Councilmember Smukler Tourism Business Improvement District Advisory Board - Mayor Peters MOTION: Mayor Peters moved the City Council add to Council Policies and Procedures: 1) the assignment of a Council liaison to each of the following Advisory Boards: Recreation & Parks Commission, Harbor Advisory Board, Public Works Advisory Board, Community Promotions Committee, and Tourism Business Improvement District Advisory Board; 2) request a quarterly report from each Advisory Board to the City Council on a rotating member basis; and 3) that on an annual basis, there will be a business and social workshop with all Advisory Boards to establish goals for the coming year. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) ® C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 RECOMMENDATION ON AMENDING THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT BYLAWS IN RELATION TO MEMBER DESIGNATION; (ADMINISTRATION) City Manager Andrea Lueker stated during the recent Board and Commission interviews on May 10, 2010, the City Council directed staff to return to the City Council with a discussion on the member designations for the MBTBID Advisory Board. At the May le interviews, the discussion consisted of the MBTBID Bylaws using the word "shall' when referencing the specific member designations, while other Boards and Commission (specifically the Community Promotions Committee and the Harbor Advisory Board) use the statement "The City Council will "attempt" to select members from the following categories". City Council directed staff to come back with some options so that if applicants do not specifically fit a designation, there may be an option for appointment with the above language change. Ms. Lueker recommended the City Council review the staff report in regard to member designation and provides staff with direction on amending the MBTBID Bylaws. Councilmember Winholtz stated the hotels all have various numbers of rooms and it is their money, and she feels the different groups should have a representative. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2010 Mayor Peters recommended the City Council forward this discussion to the Tourism Business Improvement District Advisory Board for their recommendation; Council concurred. No further action was taken on this item. D-2 REQUEST UTILIZATION OF PARK -IN -LIEU FUNDS FOR THE PREPARATION OF AN INITIAL STUDY — MITIGATED NEGATIVE DECLARATION AND COMPLETION OF CALIFORNIA ENVIRONMENTAL QUALITY ACT DOCUMENT FOR THE TEEN CENTER MASTER PLAN; (RECREATION & PARKS) Recreation & Parks Director Joe Woods stated the continued development of the Teen Center Master Plan is contingent on funding, and currently Proposition 84 Statewide Park Development and Community Revitalization Program is the most opportune possibility to obtain the funding. The application process includes a requirement to fulfill the California Environmental Quality Act. This process begins with an Initial Study and in our case a Mitigated Negative Declaration. Staff realizes the time and expertise required ® to fulfill this requirement and recommends outsourcing based on the currently available resources. Mr. Woods recommended the City Council approve the request to utilize Park -in -Lieu funds for the preparation of the Initial Study -Mitigated Negative Declaration and completion of the California Environmental Quality Act requirements for the Teen Center Master Plan. MOTION: Councilmember Grantham moved the City Council approve the request to utilize Park -in -Lieu funds for the preparation of the Initial Study - Mitigated Negative Declaration and completion of the California Environmental Quality Act requirements for the Teen Center Master Plan. The motion was seconded by Councilmember Borchard and carved unanimously. (5-0) D-3 REQUEST TO APPROVE A RESPONSE TO THE GRAND JURY REGARDING LEAF BLOWERS; (ADMINISTRATION) City Manager Andrea Lueker stated On April 27, 2010, the City received a report prepared by the San Luis Obispo County Grand Jury entitled "Leaf Blower Hazards in San Luis Obispo County". The report makes the following recommendations: 1) San Luis Obispo County Board of Supervisors pass an ordinance calling for a gradual two year phase -out of all two-cycle gasoline powered leaf blowers within San Luis Obispo County; 2) the San Luis Obispo County Board of Supervisors adopt the same guidelines currently in effect within the City of San Luis Obispo for the restriction of days and hours ® of operation allowed for leaf blower use; 3) each incorporated city within San Luis 0 E 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2010 Obispo County adopts a parallel ordinance to ensure consistency throughout the county. The report specifically requires the Morro Bay City Council to submit a response to Recommendation #3 to the Presiding Judge of the San Luis Obispo Superior Court by July 29, 2010. Ms. Lueker recommended the City Council authorize staff to send a letter to the Presiding Judge of the San Luis Obispo County Superior Court responding to the Grand Jury report entitled "Leaf Blower Hazards in San Luis Obispo County." Councilmember Winholtz would like the City to acknowledge the health issue by taking #5 in the letter and placing it in the first paragraph of the letter, and state that the City will not be implementing recommendation #3 "at this time". MOTION: Councilmember Winholtz moved the City Council authorize staff to send the amended letter to the Presiding Judge of the San Luis Obispo County Superior Court responding to the Grand Jury report entitled "Leaf Blower Hazards in San Luis Obispo County." The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) E. DECLARATION OF FUTURE AGENDA ITEMS — NONE. ADJOURNMENT The meeting adjourned at 8:05 p.m. Recorded by: Bridgett Kessling 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 — JUNE 28, 2010 CLOSED SESSION — JUNE 28, 2010 . 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 2 parcels. • Pro e : Library Negotiating Parties: County and City of Morro Bay. Negotiations: Terms and Conditions of Lease. Pro e : Surf Street Parking Lot. NegotiatingParties: arties: Maritime Museum and City of Morro Bay. Negotiations: Terms and Conditions of Lease. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 11 PUBLIC SESSION — NNE 28, 2010 ® 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 cant' out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A -I APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF.JUNE 14, 2010; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. ® A-2 RESOLUTION NO. 32-10 ESTABLISHING THE ANNUAL PROPOSITION 4 APPROPRIATIONS LIMIT FOR FISCAL YEAR' 2010/11; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 32-10. A-3 STATUS REPORT ON WATER USAGE FOR MAY 2010; (PUBLIC SERVICES) RECOMMENDATION: Review and file status report. A4 APPROVAL OF PARCEL MAP (PM MB 07-0232) AND ACCEPTANCE OF OFFER OF DEDICATION; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 33-10 approving the Parcel Map. A-5 APPROVAL OF PARCEL MAP (PM MB 09-0091) AND ACCEPTANCE OF OFFER OF DEDICATION; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 34-10 approving the Parcel Map. A-6 ACCEPTANCE OF AN OFFER OF DEDICATION OF RIGHT-OF-WAY FOR SIDEWALK PURPOSES ALONG THE WEST AVENUE FRONTAGE OF 1155 WEST AVENUE; (PUBLIC SERVICES) ® RECOMMENDATION: Adopt Resolution No. 35-10 accepting the offer of dedication for right-of-way purposes. A-7 ACCEPTANCE OF AN OFFER OF DEDICATION OF RIGHT-OF-WAY FOR SIDEWALK PURPOSES ALONG THE EMBARCADERO ROAD FRONTAGE OF 560 EMBARCADERO ROAD; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 36-10 accepting the offer of dedication for right-of-way purposes. A-8 CONSIDERATION OF APPROVAL OF AMENDMENT 91 TO THE LEASE AGREEMENT FOR LEASE SITE 96/96W, LOCATED AT 945 EMBARCADERO, WITH FLYING DUTCHMAN ENTERPRISES; (HARBOR) RECOMMENDATION: Adopt Resolution No. 39-10 extending the term of the lease agreement. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION NO. 37-10 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) ® RECOMMENDATION: Adopt Resolution No. 37-10. 3 ® B-2 RESOLUTION NO. 38-10 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 38-10. B-3 ANNUAL REVIEW OF THE VISITORS CENTER CONTRACT; (ADMINISTRATION) RECOMMENDATION: Review the annual contract for the Visitors Center and provide further direction on renewal of the contract. C. UNFINISHED BUSINESS C-I DISCUSSION AND DIRECTION ON PLACING A MEASURE ON THE NOVEMBER 2010 GENERAL ELECTION BALLOT APPROVING AN INCREASE IN THE CITY'S TRANSIENT OCCUPANCY TAX; (CITY ATTORNEY) RECOMMENDATION: Direct staff regarding placing a measure on the November 2, 2010 ballot increasing the Transient Occupancy Tax from 10% to 11%. ® D. NEW BUSINESS D-1 RESOLUTION NO. 31-10 ADOPTING REVISIONS TO THE MASTER FEE SCHEDULE; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 31-10. D-2 RECOMMENDATION OF ORGANIZATION OF THE HARBOR DEPARTMENT AND APPROVAL OF AMENDED JOB DESCRIPTIONS; (ADMINISTRATION) .RECOMMENDATION: Approve the amended/new job descriptions and provide staff with any further direction prior to implementation. D-3 CONFIRMATION OF GOALS FROM THE 2010 GOAL -SETTING WORKSHOP; (ADMINISTRATION) RECOMMENDATION: Adopt the Goal -Setting Workshop Outcomes for 2010 as designated priorities by the City Council. E. DECLARATION OF FUTURE AGENDA ITEMS ® F. ADJOURNMENT 9 ® 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. n MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. C ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — NNE 28, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:08 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Borchard 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 TRANSAMONS. 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 2 parcels. • Pro e : Library Negotiating Parties: County and City of Morro Bay. Negotiations: Terms and Conditions of Lease. • Property: Surf Street Parking Lot. Negotiating Parties: Maritime Museum and City of Morro Bay. Negotiations: Terms and Conditions of Lease. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:50 p.m. MOTION: Councilmember Grantham moved the meeting be adjoumed. ' The motion was seconded by Councilmember Winholtz and unanimously carried. (5-0) The meeting adjourned at 5:50 p.m. Ll 1 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2010 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:10 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney Jamie Boucher Deputy City Clerk Eric Endersby Harbor Operations Manager Susan Lichtenbaum Harbor Business Manager Rob Livick Public Services Director Tim Olivas Police Chief Mike Pond Fire Chief Joe Woods Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE ® PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS 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 Jeff Eckles announced the 4ei of July will begin with a bike parade to kick off the festivities starting at Morro Rock at noon; there will be activities and bands throughout the day at Tidelands Park, and fireworks at 9:00 p.m. He noted promotions have been positivewith radio spots running in Fresno and Bakersfield as well as locally. John Barta referred to the Maritime Museum property and the City's proposal of a 40-year lease at $1.00 per year. He said he this is a valuable piece of real property and there should be a minimum amount of standards applied to the lease, starting with an appraisal for what the property is worth, and a way to guarantee once the lease is granted, that if there isn't progress in reaching the stated goal, the City can reclaim the property. Nancy Johnson announced this year's Dahlia Daze theme will be "Dancing Dahlias", and will have an expanded program with wine and cheese and a guest speaker on the Friday night session, and entertainment and guest speakers on Saturday. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2010 Dave Ackey stated he has had a boat in the bay for ten years and there has been an increasing amount of theft in the past few years. He said he and others would like to begin a Marine Watch Program and requested assistance of the City's Harbor Patrol. Michael Rowland stated he is a liveaboard and would like to eliminate theft on the boats and docks in the bay. He said he has received support from the Liveaboard Association, Fishermen's Association and others who are involved who are interested in keeping the community safe. Bill Yates referred to Item C-1 (Discussion and Direction on Placing a Measure on the November 2010 General Election Ballot Approving an Increase in the City's Transient Occupancy Tax) stating it would be counterproductive for the City to increase this tax at this time and urged the Council to not approve placing this measure on the ballot. He said he is supportive of the Maritime Museum, which received support in 1995 and 2007. Mr. Yates also referred to the closure of the skate park on Sundays and said Council should discuss this as soon as possible noting Morro Bay is a skateboard community and expressed the importance of maintaining weekend hours. ® Garry Johnson thanked the Police Department in their efforts in solving the crime behind the graffiti incident at Morro Rock. E Tom Laurie stated he understands the City is negotiating with Dynegy to extend their lease from 2012 to 2015, and prior to the lease moving forward, he would like it to go for a vote of the citizens. He said the City has the power to rezone this property on the condition that Dynegy builds a new plant. Mr. Laurie urged the City Council to consider the consequences of keeping this industrial derelict on life support, and redevelop this property. 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. 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 JUNE 14, 2010; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2010 A-2 RESOLUTION NO. 32-10 ESTABLISHING THE ANNUAL PROPOSITION 4 APPROPRIATIONS LIMIT FOR FISCAL YEAR 2010/11; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 32-10. A-3 STATUS REPORT ON WATER USAGE FOR MAY 2010; (PUBLIC SERVICES) RECOMMENDATION: Review and file status report. A-4 APPROVAL OF PARCEL MAP (PM MB 07-0232) AND ACCEPTANCE OF OFFER OF DEDICATION; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 33-10 approving the Parcel Map. A-5 APPROVAL OF PARCEL MAP (PM MB 09-0091) AND ACCEPTANCE OF OFFER OF DEDICATION; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 34-10 approving the Parcel Map. A-6 ACCEPTANCE OF AN OFFER OF DEDICATION OF RIGHT-OF-WAY FOR SIDEWALK PURPOSES ALONG THE WEST AVENUE FRONTAGE OF 1155 WEST AVENUE; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 35-10 accepting the offer of dedication for right-of-way purposes. A-7 ACCEPTANCE OF AN OFFER OF DEDICATION OF RIGHT-OF-WAY FOR SIDEWALK PURPOSES ALONG THE EMBARCADERO ROAD FRONTAGE OF 560 EMBARCADERO ROAD; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 36-10 accepting the offer of dedication for right-of-way purposes. A-8 CONSIDERATION OF APPROVAL OF AMENDMENT 41 TO THE LEASE AGREEMENT FOR LEASE SITE 96/96W, LOCATED AT 945 EMBARCADERO, WITH FLYING DUTCHMAN ENTERPRISES; (HARBOR) RECOMMENDATION: Adopt Resolution No. 39-10 extending the term of the lease agreement. ® Councilmember Borchard pulled Item A-1 from the Consent Calendar. M ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28. 2010 MOTION: Mayor Peters moved the City Council approve the Consent Calendar with the exception of Item A-L The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-] APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF JUNE 14, 2010; (ADMINISTRATION) Councilmember Borchard referred to page 9 of the June 14, 2010 minutes (Item B-2: Discussion and Adoption of the 2010/11 Fiscal Year Operating Budgets): and stated her comment of "no purchase of police vehicles at this time" needed to be added to the motion. MOTION: Councilmember Borchard moved the City Council approve Item A-1 of the Consent Calendar as amended. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) B. PUBLIC HEARINGS, REPORTS & APPEARANCES is B-1 RESOLUTION NO. 37-10 DIRECTING .THE LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Recreation & Parks Director Joe Woods stated at the May 10, 2010 City Council meeting, Council adopted Resolution No. 22-10 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 assessment projected at $1,241.20 per assessable lot in the Cloisters subdivision, will be collected by the County Assessor. 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 28, 2010 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. Mr. Woods 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. 37-10 confirming the levy of assessment for Fiscal Year 2010-11. Mayor Peters opened the hearing for public comment. Robert Bacon stated he is not protesting the assessment; however, he believes the City has failed on the maintenance of the park and areas around the park as it was maintained ® previously. 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2010 Mayor Peters closed the public comment hearing. Councilmember Smukler expressed concern with the infrastructure of the pathways and thoroughfares and requested staff contact State Department of Recreation & Parks regarding the degradation of the asphalt. Councilmember Borchard concurred with Councilmember Smukler's comments, and also noted some weed abatement would be in order in this area. Mayor Peters suggested notifying Morro Bay Beautiful regarding assistance in some of the public areas. MOTION: Mayor Peters moved the City Council then adopt Resolution No. 37-10 directing the levy of the annual assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) B-2 RESOLUTION NO. 38-10 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING ® AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Recreation & Parks Director Joe Woods stated at the May 10, 2010 City Council meeting, Council adopted Resolution No. 23-10 approving the Engineer's Report describing the annual maintenance to be completed at the North Point Natural Area, and declaring the City's intent to levy an annual assessment to finance this maintenance. The assessment projected at $564.50 per assessable lot in the North Point subdivision, will be collected by the County Assessor. As part of the assessment process. the City ordered the preparation of an Engineers report, adopted a resolution of intention to levy an assessment, set June 28, 2010 as the hearing date on the proposed levy of assessment, and finally, noticed all property owners on record via first class mail of the hearing, as well as published the notice in the local newspaper. The City Council must hold a protest/public hearing before considering the levy of the annual assessment. Mr. Woods 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. 38-10 confirming the levy of assessment for Fiscal Year 2010-11. Mayor Peters opened the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. MOTION: Councilmember Grantham moved the City Council adopt Resolution No. 38-10 directing the levy of the annual assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District. ® The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) T ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2010 B-3 ANNUAL REVIEW OF THE VISITORS CENTER CONTRACT, - (ADMINISTRATION) City Manager Andrea Lueker stated the Visitors Center contract has been renewed on an annual basis and the existing contract expires on June 30, 2010. Staff is seeking direction on the renewal of this contract. Ms. Lueker recommended the City Council review the annual contract for the Visitors Center and provides further direction on renewal of the contract. Mayor Peters opened the hearing for public comment. Peter Candela, Executive Director of the Morro Bay Chamber of Commerce, stated there has been a relationship between the Visitors Center and the Chamber of Commerce for approximately 20 years. He said due to the volume of visitors, the office hours have been extended Monday —Friday until 6:00 p.m., and they are open on Sundays and holidays. Mr. Candela requested the City Council consider approving a 12-month contract. Joan Solu reported on a special meeting held by the Tourism Business Improvement ® District (TBID) Advisory Board in which the budget was discussed. She said the Board's action included a recommendation that there be no increase in transient occupancy tax, increasing the TBID from 2% to 3%, funding the Visitors Center at 24% (as soon as the TBID was changed from 2-3% and proceeds were realized from that change); fund the Visitors and Conference Bureau at $24,477 and AGP at $6,000. Mayor Peters closed the public comment hearing. The City Council reviewed the contract and discussed amendments; specifically, change the amount to $152,000; specifying office hours shall be 7 days per week Ninth a minimum of four hours of coverage on Sundays and holidays at peak traffic times; add referral tracking language; request a monthly expenditure report; and enforce the requirement of an annual audit of funds. The City Council agreed to extend the contract with the Visitors Center for one year. The City Council requested staff bring back the amended contract to the next Council meeting for approval. No further action was taken on this item. 2 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2010 C. UNFINISHED BUSINESS C-1 DISCUSSION AND DIRECTION ON PLACING A MEASURE ON THE NOVEMBER 2010 GENERAL ELECTION BALLOT APPROVING AN INCREASE IN THE CITY'S TRANSIENT OCCUPANCY TAX; (CITY ATTORNEY) City Attorney Robert Schultz stated at the January 25, 2010 meeting, the City Council directed staff to return to Council for reconsideration of placing a measure on the November 2010 General Election Ballot approving a 1% increase of the City's Transient Occupancy Tax (TOT). TOT is at a rate of 10% per rental and is currently collected by all entities renting lodging for 30 days or less. Those taxes are remitted monthly to the City, and that revenue stream accounts for approximately. I S% of the General Fund's revenues before transfers in. TOT is the City's second largest revenue source. (Property tax is the largest.) In order to increase TOT, the City must hold an election at the same time that an election is held where members of the City Council will be elected. In addition, pursuant to State law, any increase of the tax rate must first be approved by a 2/3 vote (4 members) of the City Council and then a majority vote of the City's voters who vote at a regular Municipal Election. Mr. Schultz requested direction from Council regarding placing a measure on the ® November 2, 2010 ballot increasing the TOT from 106/6 to 11%. Mayor Peters expressed her opposition to placing this measure on the ballot noting the Tourism Business Improvement District has been doing a tremendous job and she would prefer to give them 3% rather than increase the transient occupancy tax. Councilmember Borchard stated she is also opposed to increasing the transient occupancy tax. She said there is a need for an increase in revenue and the possibility of the Tourism Business Improvement District going up to 3% would allow for additional funding for the Visitor Center. Councilmember Borchard stated she would like to encourage the City to pursue vacation rentals at 1% in order to get them below the County's vacation rentals because there has been a huge increase in use of vacation rentals. Councilmember Smukler stated the City should show its commitment to the Tourism Business Improvement District by not placing a measure on the ballot to increase the transient occupancy tax. Councilmember Grantham stated he would like to give the citizens the opportunity to vote on the increase in this tax because this City needs the money. Councilmember Winholtz stated she tends to agree with Councilmember- Grantham that the first loyalty has to be toward the City budget. She said she could make an exception if the Tourism Business Improvement District would absorb some of the City costs, and the is City would get some benefit normally obtained from the 1% increased tax. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2010 MOTION: Councilmember Grantham moved the City Council approve placing a Measure on the November 2010 General Election Ballot approving an increase in the City's Transient Occupancy Tax. The motion died for lack of a second. The City Council directed staff to return to Council with a resolution declaring the City's intention to increase the assessment from 2% to 3% within the Morro Bay Tourism Business Improvement District. No further action was taken on this item. D. NEW BUSINESS D-1 RESOLUTION NO. 31-10 ADOPTING REVISIONS TO THE MASTER FEE SCHEDULE; (ADMINISTRATIVE SERVICES) City Manager Andrea Lueker stated staff has prepared a resolution for the annual adoption ® of the Master Fee Schedule, as revised by Council; she also presented the City Council with a red -lined version of the 2009 Master Fee Schedule. Ms. Lueker recommended the City Council adopt Resolution No. 31-10, which accepts the revisions to the Master Fee Schedule, and any amendments made at this meeting. The City Council discussed the Master Fee Schedule with various staff members. Councilmember Winholtz stated she could not support increasing fees in one department and not the other departments. MOTION: Councilmember Grantham moved the City Council adopt Resolution No. 31-10, which accepts the revisions to the Master Fee Schedule with the exception of appeals not being on the Consumer Price Index. The motion was seconded by Councilmember Borchard and carried with Councilmember Winholtz voting no. (4-1) D-2 RECOMMENDATION OF ORGANIZATION OF THE HARBOR DEPARTMENT AND APPROVAL OF AMENDED JOB DESCRIPTIONS; (ADMINISTRATION) City Manager Andrea Lueker stated City staff has been working on a consolidation of the maintenance efforts in the City. As the final part of the consolidation effort, staff met and conferred with the appropriate Employee Union Representatives and agreed upon the ® amended job descriptions. Ms. Lueker recommended the City Council approve the amended job descriptions. E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2010 Councilmember Winholtz referred to qualifications and stated she would like the Harbor Operations Manager and Supervisor positions to require a college degree, or at least require a certain amount of experience. She said she is not in favor of the reorganization as proposed because of the multiple layers it creates. MOTION: Mayor Peters moved the City Council approve the addition of an Office Assistant IV position to the Harbor Department and approve the Harbor Business Manager, Harbor Operations Manager and Harbor Patrol Supervisor job descriptions which will allow staff to proceed with the reorganization of the Harbor Department. The motion was seconded by Councilmember Grantham and carried with Councilmember Winholtz voting no. (4-1) D-3 CONFIRMATION OF GOALS FROM THE 2010 GOAL -SETTING WORKSHOP; (ADMINISTRATION) City Manager Andrea Lueker stated in November 2007, the City Council determined that conducting an annual Goal Setting Process was an important part of strategic planning for the City of Morro Bay. As a result, in June 2008, the City Council held their first such workshop, facilitated by Amy Paul of Management Partners. The second Goal Setting Workshop was held on February 17 & 18, 2009 with the 2010 Goal Setting Workshop held on March 16 & 17, 2010. Both the 2009 and 2010 sessions entailed reviewing the progress made on the goals established the prior year. Ms. Lueker presented the City Council with a draft document of the goals established during the March 2010 Goal Setting Workshop, and recommended the adoption of the three "Priority Goals' and five "Other Goals" as designated priorities by the City Council of the City of Morro Bay. Mayor Peters stated there were recommended goals that were not carved out because with proper research and information it was found not to benefit the City. MOTION: Councilmember Borchard moved the City Council adopt the three "Priority Goals' and five "Other Goals' as designated priorities by the City Council of the City of Morro Bay. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) E. DECLARATION OF FUTURE AGENDA ITEMS Mayor Peters requested to agendize a discussion regarding making City advisory boards more involved and effective; Council concurred. 10 ADJOURNMENT The meeting adjourned at 9:38 p.m. Recorded by: OW - JBoucher Deputy City Clerk E C.� 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 ivith and responsive to the needs of the public. REGULAR MEETING —JUNE 14, 2010 CLOSED SESSION — JUNE 14, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE _ SECTION 54956.8; REAL YKUPEKlY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as ® to one (1) parcel: • Property: 945 Embarcadero; Lease Site 96l96W Negotiating Parties: Stan Van Beurden and City of Mono Bay Negotiations: Lease Terms and Conditions CS-2 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES. .Discussions regarding Personnel Issues related to the reorganization of the City CS-3 Harbor Department. 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 — JUNE 14, 2010 ® 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 COUNCII,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. 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 OF THE MAY 24, 2010 CITY COUNCIL MEETING; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 29-10 CERTIFYING THE PETITIONS FOR THE CITIZEN'S INITIATIVE AND SUBMITTING TO THE VOTERS A BALLOT MEASURE AT THE GENERAL MUNICIPAL ELECTION ON TUESDAY, ® NOVEMBER 2, 2010; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 29-10. A-3 CONSIDERATION OF APPROVAL FOR A SUBLEASE ON A PORTION OF LEASE SITE 105.1W, LOCATED ADJACENT TO 1001 FRONT STREET, BETWEEN MICHAEL AND ORIETTA DEGARIMORE, AND ALAN AND WENDY RACKOV, DOING BUSINESS AS LOST ISLE ADVENTURES; (HARBOR) RECOMMENDATION: Adopt Resolution No. 30-10. A4 ADOPTION OF REVISED JOB DESCRIPTIONS AS THEY RELATE TO THE CONSOLIDATION OF THE MAINTENANCE DIVISIONS INTO THE RECREATION & PARKS DEPARTMENT; (ADMINISTRATION) RECOMMENDATION: Approve the amended job descriptions. A-5 ACCEPTANCE OF RESIGNATIONS FROM PUBLIC WORKS ADVISORY BOARD MEMBERS; (ADMINISTRATION) RECOMMENDATION: Accept resignations. ® B. PUBLIC HEARINGS. REPORTS & APPEARANCES C B-I FISCAL YEAR 2010/2011 TROLLEY OPERATIONS; (PUBLIC SERVICES) RECOMMENDATION: Approve the allocation of revenue generated from the sale of the 1999 trolley to the fiscal year 2010/11 trolley budget. B-2 DISCUSSION AND ADOPTION OF THE 2010/11 FISCAL YEAR OPERATING BUDGETS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 28-10 accepting the budget as presented and/or with any amendments made at the meeting. B-3 APPEAL OF THE PLANNING COMMISSION'S APPROVAL OF A CONCEPT PLAN FOR THE PROJECT LOCATED AT 571 EMBARCADERO; (PUBLIC SERVICES) RECOMMENDATION: Uphold the appeal and repeal the Planning Commission's favorable recommendation for approval of the Concept Plan pursuant to Section 17.40.030, Planned Development, (PD) overlay zone, with modification. 3 C. UNFINISHED BUSINESS ® C-1 CONSIDERATION OF OFFERS TO PURCHASE 1985 TROLLEY; (PUBLIC SERVICES) RECOMMENDATION: Review the offers made to purchase the 1985 trolley and select which offer to accept. C-2 DISCUSSION AND DIRECTION ON PLACING A MEASURE ON THE NOVEMBER 2010 GENERAL ELECTION BALLOT APPROVING AN INCREASE IN THE CITY'S TRANSIENT OCCUPANCY TAX; (CITY ATTORNEY) RECOMMENDATION: Discuss and direct staff accordingly. D. NEW BUSINESS D-1 ANNUAL REVIEW OF THE VISITORS CENTER CONTRACT; (ADMINISTRATION) RECOMMENDATION: Review the Annual Contract for the Visitors Center and provide further direction on renewal of the contract. D-2 RECOMMENDATION TO CONTINUE THE WORK OF THE DOWNTOWN ENHANCEMENT SUBCOMMITTEE AS A PRIORITY PROJECT AND ACCEPT THE PROPOSED TIMELINE PROVIDED BY THE ® SUBCOMMITTEE; (CITY COUNCIL) RECOMMENDATION: Identify the Downtown Enhancement Project as a priority of the Planning Commission, continue the work of the Subcommittee, direct staff to provide the necessary project support and accept the proposed timeline and preliminary implementation actions. E. DECLARATION OF FUTURE AGENDA ITEMS F. 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. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MH.L'S COPY CENTER LOCATED AT 495 MORRO_BAY BOULEVARD DURING NORMAL BUSINESS HOURS. 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 14, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m. PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Mayor Peters moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Winholtz and unanimously carried. (5-0) Mayor Peters read the Closed Session Statement. CS-1 GOVERNMENT CODE SECTION 54956.8: REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price ® and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel: • Property: 945 Embarcadero; Lease Site 96/96W Negotiating Parties: Stan Van Beurden and City of Morro Bay Negotiations: Lease Terms and Conditions CS-2 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES. Discussions regarding Personnel Issues related to the reorganization of the City Harbor Department. CS-3 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 Grantham moved the meeting be adjourned. The motion was seconded by Councilmember Borchard and unanimously carried. (5-0) The meeting adjourned at 5:50 p.m. 11`J El u MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2010 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:15 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Rick Algert Janeen Burlingame Sierra Davis Rob Livick Tim Olivas Mike Pond Susan Slayton Kathleen Wold Joe Woods City Manager City Attorney City Clerk Harbor Director Management Analyst Planning Intern Acting Public Services Director Police Chief Fire Chief Administrative Services Director Senior Planner Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT The following people expressed opposition to Item C-2 (Discussion and Direction an Placing a Measure on the November 2010 General Election Ballot Approving an Increase in the City's Transient Occupancy Tax), and requested the City Council give the Tourism Business Improvement District time to increase the City's transient occupancy tax: John Solu, Jayne Behman, Joan Solu, Priscilla Coe, David Nave and Bill Yates. Barbara Doerr addressed Item A-2 (Resolution No. 29-10 Certifying the Petitions for the Citizen's Initiative and Submitting to the Voters a Ballot Measure at the General Municipal Election on Tuesday, November 2, 2010) stating the proposed ballot language does not address the specifics of the issue. She also addressed Item D-2 (Recommendation to Continue the Work of the Downtown Enhancement Subcommittee as a Priority Project and Accept the Proposed Timeline Provided by the Subcommittee) noting this project seems to be a big expense and a lot of responsibility for the Planning Commission and Planning staff. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JUNE 14, 2010 Ms. Doerr stated if Tourism Business Improvement District funds were increased, they should be used for greater enforcement of the City. Ali Jordan -Brown addressed Item A-2 and referred to information in support of medicinal marijuana dispensaries. Peter Candela, Executive Director of the Chamber of Commerce, stated the Chamber is experiencing the strongest marketing campaign with the largest fulfillment in May. He requested the City Council allow the Chamber to continue its marketing partnership with the Community Promotions Committee and Tourism Business Improvement District for at least one more year. Mr. Candela reviewed upcoming events. John Barta stated he was pleased to announce that Morro Bay outvoted the County by 8% at the Primary Election. He addressed Item C-I (Consideration of Offers to Purchase the 1985 Trolley) and requested the City Council consider the offer of the Point San Luis Lighthouse Keepers, Inc. when considering the sale of the trolley. Stew Jenkins, Point San Luis Lighthouse Keepers, Inc. referred to Item C-I and said he is available for questions. Grant Crowl referred to the City's Wastewater Treatment Plant upgrade and noted PERC ® Water has presented a much larger option for the City's consideration. He referred to employment benefits of PERC employees. Bill Yates thanked those who voted for him at the Primary Election. He expressed support for Item D-2 (Recommendation to Continue the Work of the Downtown Enhancement Subcommittee as a Priority Project and Accept the Proposed Timeline Provided by the Subcommittee); however, he has concerns with the financing of the project. Kathleen Weaver stated the current location of the Chamber of Commerce office on the waterfront is a great location for tourists. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:07 p.m.; the meeting resumed at 7:20 p.m. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES OF THE MAY 24, 2010 CITY COUNCIL MEETING; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. 3 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JUNE 14, 2010 A-2 RESOLUTION NO. 29-10 CERTIFYING THE PETITIONS FOR THE CITIZEN'S INITIATIVE AND SUBMITTING TO THE VOTERS A BALLOT MEASURE AT THE GENERAL MUNICIPAL ELECTION ON TUESDAY, NOVEMBER 2, 2010; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 29-10. A-3 CONSIDERATION OF APPROVAL FOR A SUBLEASE ON A PORTION OF LEASE SITE 105.1 W, LOCATED ADJACENT TO 1001 FRONT STREET, BETWEEN MICHAEL AND ORIETTA DEGARIMORE, AND ALAN AND WENDY RACKOV, DOING BUSINESS AS LOST ISLE ADVENTURES; (HARBOR) RECOMMENDATION: Adopt Resolution No. 30-10. A4 ADOPTION OF REVISED JOB DESCRIPTIONS AS THEY RELATE TO THE CONSOLIDATION OF THE MAINTENANCE DIVISIONS INTO THE RECREATION & PARKS DEPARTMENT; (ADMINISTRATION) ® RECOMMENDATION: Approve the amended job descriptions. A-5 ACCEPTANCE OF RESIGNATIONS FROM PUBLIC WORKS ADVISORY BOARD MEMBERS; (ADMINISTRATION) RECOMMENDATION: Accept resignations. Mayor Peters pulled Item A-1 from the Consent Calendar; Councilmember Smukler pulled Item A-2 and Councilmember Winholtz pulled Items A-3 and A4. MOTION: Councilmember Winholtz moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) A-1 APPROVAL OF MINUTES OF THE MAY 24, 2010 CITY COUNCIL MEETING; (ADMINISTRATION) Mayor Peters referred to the minutes of May 24, 2010, and requested the following correction be made to page 7 (motion): MOTION: Councilmember Winholtz moved the City Council approve sending a letter to Congresswoman Capps in eppesitien e€ regarding farm fish legislation ® as amended by Council. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2010 MOTION: Mayor Peters moved the City Council approve Item A-1 of the Consent Calendar as amended. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-2 RESOLUTION NO. 29-10 CERTIFYING THE PETITIONS FOR THE CITIZEN'S INITIATIVE AND SUBMITTING TO THE VOTERS A BALLOT MEASURE AT THE GENERAL MUNICIPAL ELECTION ON TUESDAY, NOVEMBER 2, 2010; (ADMINISTRATION) Councilmember Smukler requested clarification on the ballot language and timeline of the citizens' initiative. City Attorney Robert Schultz responded with clarification on the ballot measure language and timeline for ballot arguments/rebuttals. Council requested the ballot question be amended to say "Shall an ordinance be adopted to prohibit Medical Marijuana Sterelf-ents Dispensaries in the City of Morro Bay?" ® MOTION: Councilmember Smukler moved the City Council approve Item A-2 of the Consent Calendar as amended. The motion was seconded by Mayor Peters and carried unanimously. (5-0) A-3 CONSIDERATION OF APPROVAL FOR A SUBLEASE ON A PORTION OF LEASE SITE 105.1 W, LOCATED ADJACENT TO 1001 FRONT STREET, BETWEEN MICHAEL AND ORIETTA DEGARIMORE, AND ALAN AND WENDY RACKOV, DOING BUSINESS AS LOST ISLE ADVENTURES; (HARBOR) Councilmember Winholtz requested to add language to the Consent to Sublease Agreement, page 2, #5. The proposed use by SUBTENANT is as follows: "Water taxi and tourist service." 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) A4 ADOPTION OF REVISED JOB DESCRIPTIONS AS THEY RELATE TO THE CONSOLIDATION OF THE MAINTENANCE DIVISIONS INTO THE RECREATION & PARKS DEPARTMENT; (ADMINISTRATION) ® Councilmember Winholtz stated she is opposed to the consolidation of this department as it would be too much responsibility for this department. 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2010 MOTION: Mayor 'Peters moved the City Council approve Item A4 of the Consent Calendar. The motion was seconded by Councilmember Borchard and carried with Councilmember Winholtz voting no. (4-1) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 FISCAL YEAR 2010/2011 TROLLEY OPERATIONS; (PUBLIC SERVICES) Management Analyst Janeen Burlingame stated the City received an American Reinvestment and Recovery Act (ARRA) grant to fund 100% of the purchase of a new trolley to replace the 1999 trolley that is currently in operation. The replacement trolley is scheduled to be delivered in June 2010 and the 1999 trolley would be taken out of service and sold. At the March 22, 2010 City Council meeting, the Council authorized using funds from the 1999 trolley sale to offset the $24,000 funding loss to transit from a second cut to Local Transportation Funds that was to occur in the 2009/2010 fiscal year so that dial -a -ride service could continue through the end of the fiscal year without service interruption. Subsequent to this meeting, the Governor signed into law legislation referred to as the "gas -tax swap" that recovered State Transit Assistance (STA) funds that had been cut by 50% in fiscal year 2008/09 and eliminated in fiscal year 2009/10. The San Luis Obispo Council of Governments Board will approve at ® their June 9`s meeting, the allocation of STA for the next fiscal year as well as an allocation of STA for fiscal year 2009/10 to back fill the March 2010 transit funding loss noted above. Since the 1999 trolley was purchased with State and Federal transit grant funds, revenue generated from the sale of the disposition of the vehicle is to be put back into the transit budget. As such, the revenue generated from the sale of the 1999 trolley can now be re -allocated to the fiscal year 2010/11 trolley budget. Ms. Burlingame recommended the City Council approve the allocation of revenue generated from the sale of the 1999 trolley to the fiscal year 2010/11 trolley budget. Mayor Peters opened the hearing for public comment. Camille Watkins, trolley driver, thanked Council for the continuing funding for the trolley service. She said the trolley service generates revenue throughout the City. Barbara Doerr requested Council not take action and place the funding in the transit services. She said all transit services should be consolidated and considered during the mid -year budget review. Susan Brown, General Manager for MV Transportation, stated the trolleys generate revenue for the City and suggested the hours remain the same. She said the trolley should continue running on Mondays and Fridays because the flex route will not go to the State Park. David Nave, MV Transportation, stated it is not often when there is a transportation system ® such as the trolley that pays for itself. He said the fact that STA funds are coming back gives the City some hope that in the future we will have more funding and options than the present. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JUNE 14, 2010 Mr. Nave stated the trolley is a benefit to the City and to those who ride it and said its services should be maintained as is. Peter Candela stated the trolley is a unique experience for those who ride it, and noted the trolley drivers are promoters of the City. Joan Solu requested the City Council not cut the hours on key visitor -serving and resident - serving days. Tom Laurie stated if parking in -lieu funds are being used to finance any segment of the trolleys, the City is probably legally obligated the run the trolleys all the time because parking in -lieu funds are to be used for parking lots which should be available 24 hours per day. Mayor Peters closed the public comment hearing Councilmember Winholtz stated she supports placing the funds from the sale of the trolley into the parking in -lieu fund. She said the City has committed to the flex -fix route which is experimental at this time. ® Councilmember Grantham stated he supports the revenue of the sale of the trolley going into the parking in -lieu fund. He said the trolley is an important service and should be maintained as is. Councilmember Smukler stated he also supports placing the funds from the sale of the trolley into the parking in -lieu fund. Councilmember Borchard she supports placing the funds from the sale of the trolley into the parking in -lieu fund. She also noted she would like to be more aggressive with the sales opportunities on the advertising of the trolley. MOTION: Mayor Peters moved the City Council approve the allocation of revenue generated from the sale of the 1999 trolley to the fiscal year 2010/11 trolley budget. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) Councilmember Winholtz stated she supports maintaining the current trolley program during the summer. Councilmember Smukler stated he agrees to maintain the current routes during the summer. Councilmember Borchard stated she has witnessed low ridership and some of the hours ® should be eliminated. 7 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JUNE 14, 2010 Mayor Peters stated she does not support taking away the trolley hours from the visitors because it generates more money in revenues throughout the City than it does in fare box. B-2 DISCUSSION AND ADOPTION OF THE 2010/11 FISCAL YEAR OPERATING BUDGETS; (ADMINISTRATIVE SERVICES) City Manager Andrea Lueker stated staff prepared and presented a proposed fiscal year 2010/11 budget document to the City Council on Wednesday, May 12, 2010, in anticipation of an initial Budget Workshop held on May 19, 2010. The City Council went through the budget document thoroughly, and provided numerous comments, as well as asked a number of questions and requested further clarification on several items. Based on that initial Budget Workshop, staff has prepared this staff report with further clarification. Ms.' Lueker recommended the City Council review the staff report regarding the fiscal year 2010/11 budget, provide any further direction and adopt Resolution No. 28-10, accepting the budget as the spending plan for the upcoming year. Mayor Peters opened the hearing for public comment. Barbara Doerr stated it is critical that all Brown Act meetings are televised for public ® awareness. Jack McCurdy expressed concern with the proposed budget stating the budget calls for a significant reduction in Dial -a -Ride services whose patrons are 50% seniors who depend on this service in order to see their doctors. He said this service, which has been in service for 33 years, would be eliminated and replaced with a fixed route supplemented by some pickups at residences. Mr. McCurdy stated to continue Dial -a -Ride at its present level in fiscal year 2010/11 would cost about $137,000 more than is budgeted without taking money from the general fund reserve. He addressed the budget cuts in employee layoffs and cutbacks, and noted the City giving employees a 4% pay increase in the coming fiscal year. Mr. McCurdy stated the budget proposes to deprive residents of the opportunity to be informed of important City matters by discontinuing the live broadcast of all meetings, except City Council and Planning Commission, but the taping of them for later viewing at convenient times. Joan Solu, Chair of the Tourism Business Improvement District Advisory Board, requested the City Council not approve the budget for the Business Improvement District until their Budget Sub -Committee has met with its full Board and they are able to make a proposal to the City Council. Tom Laurie stated the General Fund benefits most from the transient occupancy tax. He requested Council allow the Tourism Business Improvement District to work before implementing more taxes. Mr. Laurie stated the Visitors Center should remain on the waterfront. is Mayor Peters closed the public comment hearing. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NNE 14, 2010 Councilmember Winholtz expressed the importance of continued funding of SLO Green Build and Housing Trust Fund; Councilmember Smukler agreed. Mayor Peters expressed concern with funding SLO Green Build and Housing Trust Fund noting a lot of these services are available to the public already. Councilmember Grantham stated there are many elements that other cities pay into that Morro Bay does not. He said he does support funding the Narcotics Task Force position, and he does not want to see any cuts in PEG access. Councilmember Borchard stated the web site development maintenance for MorroBay.org should be paid by another entity. She said she would like an exclusionary note on Measure Q funds relating to the City Hall generator. Councilmember Borchard stated discussion on the pool car request for Public Services should be tabled until a vehicle inventory list has been reviewed. Councilmember Smukler expressed the importance of quarterly updates to Council by the City advisory boards. He also mentioned the option of the use of a Fun Ride car to be ® designated for City use during business hours. AGP Video offered to maintain its existing contract at $60,000; Council agreed. $1,000 to SLO Green Build; Council agreed. $1,000 to Housing Trust Fund; Council agreed. Councilmember Winholtz expressed the need to have front office personnel in each department, and would like to reinstate the positions in the Fire Department and Recreation & Parks Department; Council did not support this position. MOTION: Councilmember Borchard moved the City Council adopt Resolution No. 28- 10 accepting the fiscal year 2010/11 operating budget, with the following amendments: 1) removing the pool car request by Public Services; 2) funding AGP Video at $60,000; 3) moving the website maintenance to the Community Promotions Committee; 4) tabling the City Hall generator until further information is available; 5) funding $1,000 to SLO Green Build and $1,000 to the Housing Tnist Fund from the general fund reserve; and 6) no purchase of police vehicles at this time. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) Mayor Peters called for a break at 9:03 p.m.; the meeting resumed at 9:15 p.m. 11 0 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JUNE 14, 2010 B-3 APPEAL OF THE PLANNING COMMISSION'S APPROVAL OF A CONCEPT PLAN FOR THE PROJECT LOCATED AT 571 EMBARCADERO; (PUBLIC SERVICES) Planning Intern Sierra Davis stated the applicant applied for a Conditional Use Permit purposing the renovations in spring of 2009. The project was presented to Planning Commission as a precise plan on May 17, 2010 before a publically noticed hearing. The staff report recommended that the Commission adopt the Mitigated Negative Declaration and approve the Conditional Use Permit #UPO-260, as a precise plan. The proposed project that staff reviewed and presented to the Planning Commission consisted of remodeling an existing commercial building to increase the footprint of the existing bayside patio by approximately 40 square feet. Expanding the deck will accommodate for the new 80 square feet of lateral access way required by the renewal process of the lease agreement and the Waterfront Master Plan. The existing patio will be reconstructed and will be used for the restaurant and general public use. The applicant also proposes widening the existing sidewalk adjacent to Embarcadero Road to eight feet in order to meet the standards for minimum sidewalk width as defined in the Waterfront Master Plan. At the May 17'n meeting, the Planning Commission discussed the project and brought up some aspects of the project that they deemed incomplete due to lack of detailed ® information. The Morro Bay Municipal Code requires that all the general information required for the concept plan is submitted for a precise plan but the plans should be developed to a higher level of detail. The project was appealed by the project agent at the request of the applicant because the Planning Commission approved the project as a concept plan and requested the project be reviewed pursuant to Morro Bay Municipal Code Section 17.40.030, Planned Development, (PD) overlay zone. The project was proposed as a precise plan as the proposal is consistent with the original Conditional Use Permit and represents minor changes to bring the site into consistency with the Waterfront Master Plan. Ms. Davis recommended the City Council uphold the appeal and repeal the Planning Commission's favorable recommendation for approval of the Concept Plan pursuant to Morro Bay Municipal Code Section 17.40.030, Planned Development (PD) overlay zone, with modifications if so deemed by the City Council. Cathy Novak, representing applicant/appellant, stated this project is relatively simple in that the proposed plans are to construct an eight foot wide sidewalk along the Embarcadero side, extend the existing patio deck in the rear approximately three to four feet to the west and approximately five to six feet to the south. She said this will create an eight foot lateral bayside walkway which will connect to another project to the north which has been recently approved by the City and set in place the future connection for the lease site to the southern side. The Commission's goal, in the opinion of the applicant, was to maintain the integrity of the existing building design in particular the brickwork, bench and sign support design. Ms. Novak stated setting aside the fact that the applicant agreed that he would keep the brickwork ® and the other items as close to existing as possible, the Commission, after a lengthy discussion, felt that the applicant had not provided sufficient details for them to make a final 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2010 decision on a Precise Plan. The applicant offered the Commission solutions for the trash enclosure, such as changing from bins to wheelies to fit the smaller space, which would have remedied the Commissions issues as well. The applicant committed to the Planning Commission that the walkway would remain clear in this eight foot wide section and provide the elevation change details in the engineering plans. However, the Commission would not accept this without further follow up and required the applicant to provide the Commission with a pedestrian flow plan. Ms. Novak stated the applicant would like to go on record to say that it would be an extreme hardship and unfair request for him to spend several thousand dollars to modify the architectural drawings, provide engineering level construction drawings and photo simulations for this project. In conclusion, the applicant understands that the Commission must be given sufficient details in order to approve a project. However, there must be some consideration given that when a small scale project such as this is presented, the Commission should not require large expenditures of time and money for photo simulations, additional staff time, noticing and other plan modifications that are not necessary when a project can be adequately conditioned and approved. Ms. Novak requested the City Council support to uphold this appeal, approve the Precise Plan and refund the applicant the appeal fee. Mayor Peters opened the hearing for public comment; there were no comments, and Mayor is Peters closed the public comment hearing. Councilmember Grantham stated this is an extension of the harbor walk, and he likes the fact that the slips and pilings are going to be repaired. He said conceptually he approves of the project. Councilmember Smukler stated he agreed with Councilmember Grantham, and he likes that this is a retrofit of a historically significant building. Councilmember Borchard agreed with Councilmember Grantham and Councilmember Smukler's comments. Councilmember Winholtz stated she disagrees with the previous comments. She said the building is in an overlay zone and highly visible to the community which should require a Precise Plan. Mayor Peters agreed with the majority of the Council. MOTION: Mayor Peters moved the City Council uphold the appeal and repeal the Planning Commission's favorable recommendation for approval of the Concept Plan pursuant to Morro Bay Municipal Code Section 17.40.030, Planned Development (PD) overlay zone, with conditions as amended by isstaff. The motion was seconded by Councilmember Borchard and carried with Councilmember Winholtz voting no. (4-1) 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2010 11 C. UNFINISHED BUSINESS C-1 CONSIDERATION OF OFFERS TO PURCHASE 1985 TROLLEY; (PUBLIC SERVICES) Management Analyst Janeen Burlingame stated in January and February 2010, two separate "Invitation for Bid" processes were conducted seeking bids to purchase the 1985 trolley. Information regarding the bid was listed in the Tribune newspaper and also on the California Association of Coordinated Transportation list serve. Local individuals who had expressed interest in the trolley were also sent bid specifications and the appraisal for both bid processes. Neither bid process resulted in submission of a bid for the vehicle. Subsequent to the February bid process, the vehicle was placed on eBay Motors with no bids submitted. In addition, per the Council's desire to try and keep the trolley locally, the vehicle was also listed on Craigslist. The appraisal of the vehicle listed a resale value of $25,000 and a liquidation value of $15,000. Three offers have been made to purchase the 1985 trolley: 1) Point San Luis Lighthouse Keepers, Inc. - $15,000 plus additional offer for use for Caroling Cop Car and elementary school trip in June (see Exhibit A for full details of offer); 2) Dan Reddell - $12,500 plus offer to "let the city use it whenever they want;" no other details listed; and 3) Reggie Drew, Santa Barbara Trolley Co. - $12,000. Ms. Burlingame recommended the City Council review the offers made to purchase the 1985 trolley and select which offer to accept. MOTION: Councilmember Borchard moved the City Council accept the offer to purchase the 1985 trolley from Point San Luis Lighthouse Keepers, Inc. at $15,000 plus additional offer for use for Caroling Cop Car and elementary school trip in June. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) C-2 DISCUSSION AND DIRECTION ON PLACING A MEASURE ON THE NOVEMBER 2010 GENERAL ELECTION BALLOT APPROVING AN INCREASE IN THE CITY'S TRANSIENT OCCUPANCY. TAX; (CITY ATTORNEY) City Attorney Robert Schultz stated at the January 25, 2010 meeting, Mayor Peters made a motion to direct staff to return to Council for reconsideration of placing a measure on the November 2010 General Election Ballot approving a 1% increase of the City's Transient Occupancy Tax (TOT). If the Council decides to move forward with a TOT ordinance and the voters pass the measure, the City could expect to receive an additional $185,000 in TOT revenue per year. Mr. Schultz requested direction from the City regarding placing a measure on the November 2, 2010 ballot increasing the Transient Occupancy Tax (TOT) from 10% to 11 %. 12 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2010 MOTION: Mayor Peters moved the City Council oppose placing a measure approving an increase in the City's transient occupancy tax on the November 2, 2010 ballot. The motion died for lack of a second. This item has been continued to the June 28, 2010 City Council meeting. D. NEW BUSINESS D-1 ANNUAL REVIEW OF THE VISITORS CENTER CONTRACT; (ADMINISTRATION) This item has been continued to the June 28, 2010 City Council meeting. D-2 RECOMMENDATION TO CONTINUE THE WORK OF THE DOWNTOWN ENHANCEMENT SUBCOMMITTEE AS A PRIORITY PROJECT AND ACCEPT THE PROPOSED TIMELINE PROVIDED BY THE SUBCOMMITTEE; (CITY COUNCIL) Councilmember Smukler stated the goal of this project is to create a Downtown Specific Plan, through review of historical documents and present day community input, which will guide development and business enhancement programs within the downtown commercial district. He recommended the City Council . continue the work of the Downtown Enhancement Subcommittee, acknowledgment that completion of this project is a priority project for the Planning Commission, direct staff to provide necessary support, and accept the proposed timeline provided by the Downtown Enhancement Subcommittee. Council expressed support for this project, and directed staff to move as quickly as possible without expending funds. D. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Smukler requested to agendize a. discussion on a five year capital improvement plan with a one-year priority; Council concurred. l U7L�$11"Lldl The meeting adjourned at 10:48 p.m. Recorded by: Bridgett K ssling ® City Clerk 13 s 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 ivill provide a level of municipal service and safety consistent ivith and responsive to the needs of the public. REGULAR MEETING — MAY 24, 2010 CLOSED SESSION — MAY 24, 2010 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: Chorro Valley Property. Negotiating Parties: Chorro Valley Property Owners and City of Morro Bay. Negotiations: Water rights. Property Lease Site 75-77/75W-77W; 699 Embarcadero Negotiating Parties: Morro Bay Marina, Inc. 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. E�J ® PUBLIC SESSION — MAY 24, 2010 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. 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 OF THE MAY 10, 2010 CITY COUNCIL MEETING; (ADMINISTRATION) 0 RECOMMENDATION: Approve as submitted. ® A-2 ADOPTION OF ORDINANCE NO. 558 AMENDING CHAPTER 2.24 OF THE MORRO BAY MUNICIPAL CODE REGARDING THE DUTIES OF THE RECREATION AND PARKS DEPARTMENT; (RECREATION & PARKS) RECOMMENDATION: Adopt Ordinance. No. 558. A-3 STATUS REPORT ON WATER USAGE FOR APRIL 2010; (PUBLIC SERVICES) RECOMMENDATION: Review and file status report. A4 RESOLUTION ESTABLISHING A PROCEDURE FOR REQUESTING MEASURE Q FUNDING DURING THE ANNUAL BUDGET PROCESS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 26-10. A-5 RESOLUTION ESTABLISHING THE PARAMETERS FOR USE OF THE GENERAL FUND (ACCUMULATION) RESERVE; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 27-10. ® A-6 APPROVE COMPENSATION RATES FOR SIX MONTH CONTRACT EXTENSION WITH MV TRANSPORTATION; (PUBLIC SERVICES) RECOMMENDATION: Approve the proposed compensation rates for the six month contract extension of the current Morro Bay Dial -a -Ride and Trolley Operations and Management Agreement with MV Transportation. A-7 RESOLUTION AUTHORIZING PARTICIPATION IN THE SAN LUIS OBISPO COUNTY ENERGY WATCH PROGRAM; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 25-10. A-8 PROCLAMATION DECLARING TUNE 7&8, 2010 AS "SPECIAL OLYN21CS - LAW ENFORCEMENT TORCH RUN DAYS"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES - NONE. 0 C. UNFINISHED BUSINESS - NONE. 3 ® D. NEW BUSINESS D-1 CONSIDERATION ON SENDING LETTER TO CONGRESSWOMAN LOIS CAPPS OPPOSING FARM FISH LEGISLATION; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. E. DECLARATION OF FUTURE AGENDA ITEMS I�L�Ii��lol��Y 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. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR isSTREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. 11 IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. rd ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION —MAY 24, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Smukler moved the meeting be adjourned to Closed Session. The motion_ was seconded_ by C_ oun_cilmember Grantham and unanimously carried. (5-0) Mayor Peters read the Closed Session Statement ® CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACITONS. Instructing City's real property negotiator regarding . the price and terms of payment for the purchase, We, exchange, or lease_ of real property as to two (2) parcels. • Property: Chorro Valley Property. Negotiating Parties: Chorro Valley Property Owners and City of Morro Bay. Negotiations: Water rights. • Property Lease Site 75-77/75W-77W; 699 Embarcadero Negotiating Parties: Morro Bay Marina, Inc. 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 5:45 p.m. MOTION: Councilmember Borchard 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. EJ 1 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2010 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Rick Algert Janeen Burlingame Rob Livick Tim Olivas Mike Pond Dylan Wade Joe Woods City Manager City Attorney City Clerk Harbor Director Management Analyst Acting Public Services Director Police Chief Fire Chief Utilities/Capital Projects Manager Recreation & Parks Director . ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS 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 Jeff Eckles, President of Morro Bay 4a', Inc., stated they have met their minimum funding goal for the 4`s of July festivities, and recognized those who assisted in their funding success. Peter Candela expressed the importance of maintaining the high level of marketing that the Visitors Center has established, as well as maintaining its location in the heart of the tourism area. He also requested the City maintain the trolley service for the upcoming tourist season. Susan Heinemann stated due to research, she has concern with the MWH Company with whom the City and Cayucos Sanitary District has contracted to design the upgrade to the City's Wastewater Treatment Plant. She requested the City Council re -open the contract ® to see if there is a better long-lasting alternative without baggage. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MAY 24, 2010 Barry Brannon requested the City Council re-examine the reconstruction of the Wastewater Treatment Plant. He said the Perc Water Treatment System is proposed to cost much less and the City should consider this proposal. Bill Martony addressed Item D-1 (Consideration on Sending Letter to Congresswoman Lois Capps Opposing Farm Fish Legislation) stating Morro Bay was one of the largest oyster producers at one time. He requested Council support sending a letter to Congresswoman Capps opposing the farm fish legislation. Mr. Martony also addressed the Wastewater Treatment Plant requesting Council look at alternatives. John Shoals, PG&E representative, addressed Item A-7 (Resolution Authorizing Participation in the San Luis Obispo County Energy Watch Program) acknowledging the City's participation in the County Energy Watch Program and reviewed the program for information. He said the environmental benefits of this program are of positive value for the community. Garry Johnson announced Election Day is approaching and promoted Nancy Johnson who is running for City Council. ® John Barta addressed Item A-3 (Status Report on Water Usage for April 2010) noting the City will be receiving 40% of water deliveries for the remainder of the year. He acknowledged Rick Algert for his service to the City. Mr. Barta referred to a mailing from the Democratic Voters of the Central Coast, which is fraudulent. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 6:53 p.m.; the meeting resumed at 7:00 p.m. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES OF THE MAY 10, 2010 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 ADOPTION OF ORDINANCE NO. 558 AMENDING CHAPTER 2.24 OF THE MORRO BAY MUNICIPAL CODE REGARDING THE DUTIES OF THE RECREATION AND PARKS DEPARTMENT; (RECREATION & PARKS) ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2010 A-3 STATUS REPORT ON WATER USAGE FOR APRIL 2010: (PUBLIC SERVICES) RECOMMENDATION: Review and file status report. A-4 RESOLUTION ESTABLISHING A PROCEDURE FOR REQUESTING MEASURE Q FUNDING DURING THE ANNUAL BUDGET PROCESS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 26-10. A-5 RESOLUTION ESTABLISHING THE PARAMETERS FOR USE OF THE GENERAL FUND (ACCUMULATION) RESERVE; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 27-10. A-6 APPROVE COMPENSATION RATES FOR SIX MONTH CONTRACT ® EXTENSION WITH MV TRANSPORTATION; (PUBLIC SERVICES) RECOMMENDATION: Approve the proposed compensation rates for the six month contract extension of the current Morro Bay Dial -a -Ride and Trolley Operations and Management Agreement with MV Transportation. A-7 RESOLUTION AUTHORIZING PARTICIPATION IN THE SAN LUIS OBISPO COUNTY ENERGY WATCH PROGRAM; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 25-10. A-8 PROCLAMATION DECLARING JUNE 7&8, 2010 AS "SPECIAL OLYMPICS - LAW ENFORCEMENT TORCH RUN DAYS"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Mayor Peters pulled Items A-3 and A-4 from the Consent Calendar; Councilmember Smukler pulled Item A-5 and Councilmember Winholtz pulled Item A-6. MOTION: Councilmember Grantham moved the City Council approve the Consent Calendar with the exception of Items A-3, A4, A-5 and A-6. The motion ® was seconded by Councilmember Winholtz and carried unanimously. (5-0) M ® MOTION: Councilmember Grantham moved the City Council approve the Consent Calendar with the exception of Items A-3, A4, A-5 and A-6. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2010 A-3 STATUS REPORT ON WATER USAGE FOR APRIL 2010; (PUBLIC SERVICES) Mayor Peters requested staff's review of the status report on the City's water usage and Wastewater Treatment Plant project. Utilities/Capital Projects Manager Dylan Wade reviewed the Wastewater Treatment Plant project and Water Usage Report for information. This was a status report and no action was taken on this item. A-4 RESOLUTION ESTABLISHING A PROCEDURE FOR REQUESTING MEASURE Q FUNDING DURING THE ANNUAL BUDGET PROCESS; (ADMINISTRATIVE SERVICES) ® Mayor Peters requested clarification from staff regarding a letter received informing Council of a discrepancy in the Resolution regarding Measure Q funding. City Manager Andrea Lueker stated in reviewing the original Resolution No. 33-06 adopted on July 10, 2006, the ballot language did not contain "youth and park programs"; she said that language will be removed in order to be consistent with the ballot language adopted in 2006. Councilmember Winholtz requested the full ballot language be added to this Resolution. MOTION: Councilmember Winholtz moved the City Council approve Item A-4 of the Consent Calendar as amended. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) A-5 RESOLUTION ESTABLISHING THE PARAMETERS FOR USE OF THE GENERAL FUND (ACCUMULATION) RESERVE; (ADMINISTRATIVE SERVICES) Councilmember Smukler stated Council should address how to utilize funds in a more appropriate way and give more direction on where to focus emergency funds. Councilmember Winholtz stated she would like the excess delineated in the budget so it ® will be clearly marked. 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2010 MOTION: Councilmember Smukler moved the City Council approve Item A-5 of the Consent Calendar with a line item in the budget detailing the difference between the 27.5% emergency reserve and the excess as a separate number. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) A-6 APPROVE COMPENSATION RATES FOR SIX MONTH CONTRACT EXTENSION WITH MV TRANSPORTATION; (PUBLIC SERVICES) Councilmember Winholtz reviewed a proposed transit plan, and requested Council postpone this contract until the Administrative Services Director returns in order to review the figures. MOTION: Mayor Peters moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) B. PUBLIC HEARINGS REPORTS & APPEARANCES — None. C. UNFINISHED BUSINESS — None. ® D. NEW BUSINESS D-1 CONSIDERATION ON SENDING LETTER TO CONGRESSWOMAN LOIS CAPPS OPPOSING FARM FISH LEGISLATION; (COUNCIL) Councilmember Winholtz stated Representative Capps is writing legislation to regulate ocean farm fishing. Some people believe this will open the door for such industry. The Open Ocean Aquaculture (OOA) industry has been trying to get OOA into our federal waters since the 80's. Most recently there were bills introduced in 2005 and 2007, both of which were voted down. Then last year, the Gulf of Mexico Fishery Management Council created a plan to allow OOA in federal waters off of the Gulf and NOAA approved the plan. However, NOAA and the management council only have the ability to manage fishing in federal water. That means that these organizations are trying to say that placing large pens in the ocean and cramping fishing into them is fishing. Food and Water Watch think that this is untrue and are suing NOAA in coalition with other organizations. They think that NOAA's decision to approve the gulf plan even thought we think it is illegal, might be scaring some people into moving forward with federal legislation that would allow OOA in our oceans under the guise that if a massive legislative bill isn't introduced, then there will be a fragmented approach to allowing OOA in federal waters. They think that this is untrue and that we should oppose this bill. OOA is going to hurt fishermen and the environment. 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MAY 24, 2010 Councilmember Winholtz recommended the City Council consider sending a letter to Congresswoman Capps in opposition of farm fish legislation. MOTION: Councilmember Winholtz moved the City Council approve sending a letter to Congresswoman Capps in opposition of farm fish legislation as amended by Council. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested an update on the committee being formed on Fire. Councilmember Smukler requested to agendize the next budget discussion at the June 10 City Council meeting as a public hearing; Council concurred. Councilmember Smukler requested to agendize a review of the Tourism Business Improvement District Advisory Board Members' designations; Council concurred. Councilmember Borchard requested an inventory of city vehicles prior to their discussion ® on the budget. F. ADJOURNMENT The meeting adjourned at 7:55 p.m. Recorded by: \ U o�e# , Bridgett Kessling City Clerk 7 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2010 Councilmember Winholtz recommended the City Council consider sending a letter to Congresswoman Capps in opposition of farm fish legislation. MOTION: Councilmember Winholtz moved the City Council approve sending a letter to Congresswoman Capps regarding farm fish legislation as amended by Council. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested an update on the committee being formed on Fire. Councilmember Smukler requested to agendize the next budget discussion at the June 14`s City Council meeting as a public hearing; Council concurred. Councilmember Smukler requested to agendize a review of the Tourism Business Improvement District Advisory Board Members' designations; Council concurred. Councilmember Borchard requested an inventory of city vehicles prior to their discussion on the budget. 0 F. ADJOURNMENT The meeting adjourned at 7:55 p.m. Recorded by: f Bridgett Kessling City Clerk 7 NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Wednesday, May 19, 2010 at 5:00 D.m. to be held in the Morro Bay Community Center, 1001 Kennedy Way. Morro Bay, California. The City Council will be holding: Budget Workshop for FY 2010/2011 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 14, 2010 4!a ie Boucher, Deputy City Clerk City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. PUBLIC SESSION — MAY 10, 2010 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. 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 OF THE APRIL 26, 2010 CITY COUNCIL MEETING;. (ADMINISTRATION) RECOMMENDATION: Adopt minutes as submitted. A-2 APPROVAL OF JOINT CITY COUNCIL/PLANNING COMMISSION MINUTES FOR THE MARCH 15, 2010 MEETING; (PUBLIC SERVICES) RECOMMENDATION: Adopt minutes as submitted. ® A-3 PROCLAMATION OF THE CITY OF MORRO BAY DECLARING MAY 23 TO MAY 29, 2010 AS "2010 NATIONAL BEACH SAFETY WEEK": (RECREATION & PARKS) RECOMMENDATION: Adopt Proclamation. A-4 SECOND READING AND ADOPTION OF ORDINANCE NO. 556 AMENDING MORRO BAY MUNICIPAL CODE ADDING CHAPTER 17.27 REGULATING ANTENNAS AND WIRELESS TELECOMMUNICATIONS FACILITIES; (PUBLIC SERVICES) RECOMMENDATION: Adopt Ordinance No. 556. A-5 SECOND READING AND ADOPTION OF ORDINANCE NO. 557 AMENDING MORRO BAY MUNICIPAL CODE SECTION 2.16.080 PERTAINING TO THE DUTIES OF THE CITY ATTORNEY; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 557. A-6 APPROVE COMPENSATION RATES FOR A SIX MONTH CONTRACT EXTENSION WITH MV TRANSPORTATION; (PUBLIC SERVICES) 11 ® RECOMMENDATION: Approve compensation rates outlined in the Fiscal Impact section of the staff report for the six month contract extension of the current Morro Bay Dial -a -Ride and Trolley Operations Management Agreement with MV Transportation. A-7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY SUPPORTING THE PROTECTION OF WHALES AND OPPOSING THE RESUMPTION OF COMMERCIAL WHALING AND TEN-YEAR QUOTAS FOR GRAY WHALES AS PROPOSED BY THE INTERNATIONAL WHALING COMMISSION; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution 24-10. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I RESOLUTION APPROVING THE ENGINEERS REPORT AND DECLARING THE INTENT TO LEVY THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 22-10 declaring the intent to levy the annual assessment for the maintenance of the cloisters Park and Open ® Space and approving the Engineers Report. B-2 RESOLUTION APPROVING THE ENGINEERS REPORT AND DECLARING THE INTENT TO LEVY THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE.ASSESSMENT DISTRICT; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 23-10 declaring the intent to levy the annual assessment for the maintenance of the North Point Natural Area and approving the Engineers Report. B-3 INTRODUCTION AND FIRST READING OF ORDINANCE NUMBER 558 AMENDING MORRO BAY MUNICIPAL CODE CHAPTER 2.24 REGARDING RECREATIONI AND PARKS DEPARTMENT; (RECREATION & PARKS) RECOMMENDATION: Move for introduction and first reading of Ordinance No. 558 by number and title only, amending Morro Bay Municipal Code Section 2.24. C. UNFINISHED BUSINESS - NONE 0 D. NEW BUSINESS D-I ALLOCATION OF FUNDS GENERATED FROM THE FUNDRAISER FOLLIES; (CITY COUNCIL) RECOMMENDATION: Accept and implement the recommendations as submitted. D-2 CONSIDERATION OF CORRESPONDENCE SUPPORTING HR 4844 TO ENSURE 100% FEDERAL FUNDING OF HARBOR MAINTENANCE WITH THE HARBOR MAINTENANCE TRUST FUND; (HARBOR) RECOMMENDATION: Approve the attached letter. D-3 DISCUSSION OF A RESOLUTION TO ESTABLISH A PROCEDURE FOR REQUESTING MEASURE Q FUNDING DURING THE BUDGET PROCESS; (ADMINISTRATION) RECOMMENDATION: Review the staff report regarding setting procedure for staff to follow in submitting Measure Q funding requests during the budget process and direct staff accordingly. D-4 RESOLUTION ON GENERAL FUND ACCUMULATION FUND USE; is (ADMINISTRATION) RECOMMENDATION: Review the staff report regarding setting a policy on the use of the General Fund (Accumulation) Reserve, provide further direction to staff and direct staff to bring back a resolution at a future meeting for adoption. D-5 DISCUSSION REGARDING DEVELOPMENT OF CRITERIA AND MEASUREMENTS OF SUCCESS FOR THE WWTP PROJECT; (CITY COUNCIL) RECOMMENDATION: Discuss Council's interests for the Morro Bay / Cayucos Wastewater Treatment Plant Upgrade and clearly define the project criteria and measurements of success. It is further recommended that the discussion topic and City Council's project criteria be introduced for discussion and adoption with the Cayucos CSD Board at the June 10th JPA meeting. E. DECLARATION OF FUTURE AGENDA ITEMS F. 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. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. 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 ® REGULAR MEETING — MAY 10, 2010 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:10 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Robert Schultz Jamie Boucher Rick Algert Tim Olivas Mike Pond Susan Slayton Joe Woods Janeen Burlingame City Manager City Attorney Deputy City Clerk Harbor Director Police Chief Fire Chief Administrative Services Director Recreation & Parks Director Management Analyst ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE ® PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT — There was no closed session. PUBLIC COMMENT Keith Taylor stated he worked on the Measure Q Committee, and they came up with four items that Measure Q funds were to address: 1) the Fire Department, 2) Police Department, 3) streets, and 4) storm water drains. He said Measure Q passed by 65%. Mr. Taylor stated both Council and the Measure Q Oversight Committee have done a good job by making sure these funds would be used for only these areas and Council direct the City Manager that Measure Q funds only be spent on these areas because that is what the people of Morro Bay have decided. Ken Vesterfelt reported the Car Show was a huge success, and some of the businesses in town had record -breaking days. He thanked the Rotary Club, the Police Explorers Post 43, the Chamber of Commerce, and all those who helped make the Car Show a success. Mr. Vesterfelt stated some business is being lost through the hotels, stating some participants told him they stayed in Cayucos and San Luis Obispo because the price of the hotels in Morro Bay had increased; however, there were a couple of hotels that had special "Car Shod' deals. He requested the promises for Measure Q funding be kept. ® Mr. Vesterfelt encouraged everyone in Morro Bay to vote in the upcoming election. 1 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 10, 2010 Susan Heinemann announced there will be a BBQ fundraiser sponsored by the Morro Bay Community Garden on May 23`d from 1:00 p.m. to 4:00 p.m. at the Community Garden in order to raise money for a tool shed. Barry Brannon stated he would hope the City Council would develop transparency as they go forward with the sewer project. He suggested the Council provide a report with a time line regarding the project. He feels transparency would take away fears and questions and would encourage more interest and participation by the citizens. Bill Martony stated he and his wife toured the Pere Plant in Santa Paula with Councilmembers Grantham and Smukler, and Bob Staller. He said it was very impressive, and was half the footprint of what Morro Bay is proposing with zero odors; the water quality was very good and totally recyclable. Mr. Martony stated the Pere Plant is less expensive and they have state of the art equipment, using new technology. He said two former mayors and the present mayor from Santa Paula said they were two years and $2 million into the old-style plant when they switched to this plan. He said the mayor pro temp of Fillmore said they went the route that Morro Bay is going and ended up paying millions more than originally expected. He said the entire Pere Plant is underground, and above ground can be used for other things. He encouraged the Council to explore it, and ® look thoroughly at both options. Mandy Davis addressed Item A-7 and thanked the City for adopting the Resolution Supporting the Protection of Whales and opposing the resumption of commercial whaling and quotas on the gray whale. She reported there will be large rallies in all coastal counties in California to save the whales on May 23`d. Virginia Hiramatsu reminded everyone about the Relay for Life event which will take place August 7-8. She encouraged anyone at all interested to attend meetings on May 11 and May 18 at the Flying Dutchman from 5:30 p.m. to 630 p.m. She encouraged anyone interested in participating at the event to sign up at relayforlife.org/morrobayca. Nancy Johnson announced she is a candidate for City Council. She said people have held informal meetings in their homes where small groups of people can learn more about her views; she encouraged those citizens interested in holding an informal meeting in their home in order for her to discuss her stand on various issues to contact her. Ms. Johnson stated she will be in front of Albertson's on Wednesday around noon and at Farmers Market on Thursday afternoon. She said absentee ballots were sent out today. Bill Yates announced he is a candidate for mayor. His main focus is to make Morro Bay business friendly. He said the Music Festival on Saturday, June 5h will be an all -day event, and there. will be four bands performing. Mr. Yates stated there will be a dollar donation or a canned food donation at the door, but no one will be turned away. He said ® the Music Festival is a fundraiser for the Harbor Festival. 2 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 10, 2010 Marshall Ochylski, candidate for Supervisor of the Second District, stated the Car Show was awesome. He said it was a mistake to remove the sphere of influence from Morro Bay, and explained that the sphere of influence is the area that the City has semi -control of and how it develops. Mr. Ochylski stated LAFCO decided it was too big and decided to remove it entirely except for a very small portion by the dog beach. He said Morro Bay is the only City in the State of California, except for landlocked cities, that has no sphere of influence. Therefore, the City has no say on how development occurs adjacent to the city limits. Mr. Ochylski stated decisions regarding the perimeter of the City have been turned over from the Morro Bay City Council to the San Luis Obispo County Supervisors. D'Onna Kennedy reminded everyone that the Business Forum is at 9:00 a.m. every Thursday at the Embarcadero Grill. She said there is a lot of information people can gain from these events. Mayor Peters closed the hearing for public comment. A. CONSENT CALENDAR ® Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES OF THE APRIL 26, 2010 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Adopt minutes as submitted. A-2 APPROVAL OF JOINT CITY COUNCIL/PLANNING COMMISSION MINUTES FOR THE MARCH 15, 2010 MEETING; (PUBLIC SERVICES) RECOMMENDATION: Adopt minutes as submitted. A-3 PROCLAMATION OF THE CITY OF MORRO BAY DECLARING MAY 23 TO MAY 29, 2010 AS "2010 NATIONAL BEACH SAFETY WEEK'; (RECREATION & PARKS) RECOMMENDATION: Adopt Proclamation. A-4 SECOND READING AND ADOPTION OF ORDINANCE NO. 556 AMENDING MORRO BAY MUNICIPAL CODE ADDING CHAPTER 17.27 REGULATING ANTENNAS AND WIRELESS TELECOMMUNICATIONS FACILITIES; (PUBLIC SERVICES) ® RECOMMENDATION: Adopt Ordinance No. 556. W ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 10, 2010 A-5. SECOND READING- AND ADOPTION OF ORDINANCE NO. 557 AMENDING MORRO BAY MUNICIPAL CODE SECTION 2.16.080 PERTAINING TO THE DUTIES OF THE CITY ATTORNEY; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 557. A-6 APPROVE COMPENSATION RATES FOR A SIX MONTH CONTRACT EXTENSION WITH MV TRANSPORTATION; (PUBLIC SERVICES) RECOMMENDATION: Approve compensation rates outlined in the Fiscal Impact section of the staff report for the six month contract extension of the current Morro Bay Dial -a -Ride and Trolley Operations Management Agreement with MV Transportation. A-7 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY SUPPORTING THE PROTECTION OF WHALES AND OPPOSING THE RESUMPTION OF COMMERCIAL WHALING AND TEN-YEAR QUOTAS FOR GRAY WHALES AS PROPOSED BY THE INTERNATIONAL ® WHALING COMMISSION; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution 24-10. Councilmember Smukler pulled Item A-1 from the Consent Calendar-, Mayor Peters pulled Item A-3 and Councilmember Winholtz pulled Item A-6. MOTION: Councilmember Winholtz moved the City Council approve Items A-2, A-4, A-5 and A-7 of the Consent Calendar. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) A-1 APPROVAL OF MINUTES OF THE APRIL 26, 2010 CITY COUNCIL MEETING; (ADMINISTRATION) Councilmembers Winholtz and Smukler requested the following amendments to the minutes of April 26, 2010: Page 5, Item A-3, second to last sentence of I" paragraph — delete the word "meet' and replace with the word "receive"; next paragraph — delete the word "components"'and replace with the phrase "shut down'. MOTION: Councilmember Smukler moved the City Council approve Item A-1 of the ® Consent Calendar as amended. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) 4 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 10, 2010 A-3 PROCLAMATION OF THE CITY OF MORRO BAY DECLARING MAY 23 TO MAY 29, 2010 AS "2010 NATIONAL BEACH SAFETY WEEK'; (ADMINISTRATION) Mayor Peters pulled this item in order to make a presentation. MOTION: Councilmember Borchard moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) A-6 APPROVE COMPENSATION RATES FOR A SIX MONTH CONTRACT EXTENSION WITH MV TRANSPORTATION; (PUBLIC SERVICES) Councilmember Winholtz requested clarification on the contract extension with MV Transportation. Management Analyst Janeen Burlingame reviewed the contract and answered Council questions. MOTION: Councilmember Grantham moved the City Council put off the decision on ® the contract extension until the Budget Hearing on Wednesday, May 19, 2010. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) u B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 RESOLUTION APPROVING THE ENGINEERS REPORT AND DECLARING THE INTENT TO LEVY THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT Recreation & Parks Director Joe Woods stated on April 12, 2010, the City Council adopted Resolution No. 15-10, which initiated the proceedings to levy the annual assessment to fund the maintenance of the Cloisters Park and Open Space. Additionally, staff was directed to have an Engineer's Report prepared, detailing the estimated annual assessment for the parcel owners for fiscal year 2010/11. Upon adoption of Resolution No. 22-10, 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. Mr. Woods recommended the City Council adopt Resolution No. 22-10 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 up the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. G MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 10, 2010 Councilmember Winholtz requested that a recycle container be added to the park area. She said she would like recycle containers added to all parks. MOTION: Councilmember Grantham moved the City Council approve the Engineering Report and Resolution No. 22-10, declaring intent to levy the annual assessment for the Cloisters Landscaping and Lighting Maintenance; and, to include the addition of the placement and use of a recycle container to the park area to Attachment "A". The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) B-2 RESOLUTION APPROVING THE ENGINEERS REPORT AND DECLARING THE INTENT TO LEVY THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT Recreation & Parks Director Joe Woods stated on April 12, 2010, the City Council adopted Resolution No. 16-10, which initiated the proceedings to levy the annual assessment to fund the maintenance of the North Point Natural Area. Additionally, staff was directed to have an Engineer's Report prepared, detailing the estimated annual assessment for the parcel owners for fiscal year 2010/11. Upon adoption of Resolution No. 23-10, 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. Mr. Woods recommended the City Council adopt Resolution No. 23-10 declaring the intent to levy the annual assessment for the maintenance of the North Point Natural Area and approving the Engineers Report. L\J Mayor Peters opened up the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. MOTION: Councilmember Winholtz moved the City Council approve the Engineering Report and Resolution No. 23-10, declaring intent to levy the annual assessment for the North Point Natural Area Landscaping and Lighting Maintenance; and, to include the addition of the placement and use of a recycle container to the natural area to Attachment "A". The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) 0 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 10, 2010 B-3 INTRODUCTION AND FIRST READING OF ORDINANCE NUMBER 558 AMENDING MORRO BAY MUNICIPAL CODE CHAPTER 2.24 REGARDING RECREATION AND PARKS DEPARTMENT Recreation & Parks Director Joe Woods stated on April 12, 2010, the City Council directed staff to amend the Recreation and Parks Department section for grammatical errors as well as document reference numbers to Morro Bay Municipal Code Section 2.24. Mr. Woods recommended the City Council approve Ordinance No. 558 for introduction and first reading by number and title only, amending Morro Bay Municipal Code Section 2.24. Mayor Peters opened up the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. MOTION: Councilmember Grantham moved the City Council approve Ordinance No. 558 for introduction and first reading by number and title only. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) ® City Manager Andrea Lueker read Ordinance No. 558 by number and title only. C. UNFINISHED BUSINESS -NONE D. NEW BUSINESS D-1 ALLOCATION OF FUNDS GENERATED FROM THE FUNDRAISER FOLLIES Mayor Peters stated the Fundraiser Follies continues to raise more money each year, from $2,720 in 2008 to $3,278 in 2009 and $5,238 this year. The various events that benefit from the fund are participating in the Follies in some way to "earn" their allocation. However, this year costs tripled ($2,688) due to renting tables instead of moving them from the Market Street property, increased equipment rental fees and full facility and labor reimbursement to the City. Mayor Peters stated they are making the same distribution allocation amounts per event as were made last year, which will cover all event permit fees and some.costs. She said this enables them to retain sufficient "seed money' to cover next year's expenses, and should enable them to increase the allocations for the 2011-12 year. Now that the Follies have proven to be a popular and profitable event, it is something Mayor Peters said she would like to continue to produce when she is no longer on the City Council. Therefore, she is investigating non-profit sponsorship possibilities, and will report the results to the City Council later this year. 0 No action was taken. 7 MINUTES - MORRO BAY CITY COUNCIL • REGULAR MEETING —MAY 10, 2010 D-2 CONSIDERATION OF CORRESPONDENCE SUPPORTING HR 4844 TO ENSURE 100% FEDERAL FUNDING OF HARBOR MAINTENANCE WITH THE HARBOR MAINTENANCE TRUST FUND Harbor Director Rick Algert stated legislation has been introduced in the House and Senate to reaffirm Congress commitment to use harbor maintenance tax collections for the intended purpose of the tax. Mr. Algert recommended the City Council approve sending the proposed letter to Congresswoman Capps in support of HR 4844 to ensure full federal funding of harbor maintenance with the Harbor Maintenance Trust Fund. MOTION: Mayor Peters moved the City Council approve sending the proposed letter to Congresswoman Lois Capps in support of HR 4844 to ensure full federal funding of harbor maintenance with the Harbor Maintenance Trust Fund. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) D-3 DISCUSSION OF A RESOLUTION TO ESTABLISH A PROCEDURE FOR REQUESTING MEASURE Q FUNDING DURING THE BUDGET PROCESS ® City Manager Andrea Lueker stated during the last several budget processes, requests for Measure Q funding were generated and passed directly from department heads to the City Council as part of the preliminary budget document. The City Council then had to "pick and choose' from a list of requests. Those final decisions by Council were then included in the final budget document. Following that procedure, the Citizens Oversight Committee, during their semi-annual review of revenues and expenditures, has rejected a number of those requests. For the past three years, Council has been presented with a "laundry list" of requests for Measure Q funds. Those requests are consistent with the ballot language and with the numerous materials provided to educate the public on uses of Measure Q as well as the information included in the PowerPoint presentation given to a number of civic and local groups. This is the 4th largest general revenue source which the City has discretionary spending privileges. Ms. Lueker stated with this much money at stake it is recommended that Council adopt a resolution outlining the following procedure for staff to use in submitting Measure Q funding requests: 1) department heads must submit Measure Q funding requests to the City Manager/Administrative Services Director well in advance of the ls` budget hearing; 2) the City Manager and Administrative Services Director shall initially review and prioritize the requests to an "A" and a "B" list (if needed). The "A" list shall include prioritized projects and use the total anticipated funding available. The "B" list shall continue from the "A" list with the priority projects that fall outside the funding amounts; 3) the department head team shall meet, review and recommend the "A" and "B" lists to the City Council; and 4) the recommendation shall be included in the preliminary budget document. ® Councilmember Grantham stated establishing a procedure is needed, it aids in the transparency of those particular funds, and it also helps identify budget needs. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 10, 2010 Councilmember Smukler stated he feels having a clear procedure will be valuable. He said there is sensitivity in the community as to how Measure Q funds are spent, and that is important when the City Council talks about allocations of the funds in order to maintain the trust of the citizens. Councilmember Smukler stated he would find it valuable to see the Measure Q Oversight Committee have more interaction with the spending of the funds. Councilmember Borchard stated if the Measure Q Oversight Committee met twice a year, the City Council could adjust where the Committee makes recommendations rather than waiting until the end of the year. She feels the priorities have not shifted. Councilmember Grantham stated that close to half of the Measure Q money is tied up right now in loans, with USDA loans for the fire station, the firefighter position, and a couple years left with the police vehicle repayment plan. MOTION: Councilmember Grantham moved the City Council approve the procedures established for staff to follow in submitting Measure Q funding requests during the budget process; and, direct staff to return with a resolution adopting said procedures at the May 24, 2010 City Council ® meeting. The motion was seconded by Mayor Peters and carried unanimously. (5-0) u D4 RESOLUTION ON GENERAL FUND ACCUMULATION FUND USE City Manager Andrea Lueker stated during the last few years of economic downturn, a number of cities across California, as well as across the nation, have used their reserve funds to balance their budget. The City of Morro Bay has used reserve funds on an irregular basis to pay for unexpected or unanticipated expenditures, following City Council direction. As indicated above, in 1995, the City Council made a policy statement on having a General Fund (Accumulation) Reserve of 27.5% of the General Fund operating budget. The City Council recently indicated, at their Goal Setting Workshop, the fiscal year budget must be balanced without the use of reserve funds. The Council also set a goal for a sustainable budget, defined as ongoing regular revenues meeting or exceeding ongoing regular expenditures. Also during that Goal Setting Workshop, the City Council supported staff in bringing back a Resolution on the use of the General Fund (Accumulation) Reserve, to further delineate its purpose. As an example on further delineation, the Council could determine that 20% of the reserve could be used in the case of a catastrophic event (earthquake, flood) and 7.5% could be used for a fiscal uncertainty. Ms. Lueker recommended the City Council review the possible options, and determines if they desire to delineate the use of the General Fund (Accumulation), Reserve any further, provide any further direction to staff, and direct staff to bring back a resolution at a future meeting for adoption confirming that direction. Z MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 101 2010 Councilmember Grantham stated he would like to see $1 million put in a "don't touch emergency only" fund, the remainder being a true accumulation fund. He would like to have a discussion regarding the $25,000 limit on risk management and transferring the interest based on those balances to accumulation. Councilmember Borchard stated she would like to have a dollar amount on the reserve account rather than a percentage. She said she feels there needs to be a higher amount in the Reserve Accumulation Account for a catastrophic emergency. Councilmember Smukler stated he agrees very strongly with Councilmember Borchard because of the need to respond to the immediate emergency but also long term, to rebuild and revitalize the community after the emergency. He said the Reserve Accumulation Fund should be kept as high as possible and it should be focused on the emergency element. Councilmember Winholtz stated she has always considered "reserve" to be for emergencies. She said unless there is a real need, that money should not be spent. Mayor Peters stated she would like to see a little bit of a compromise. She would like to ® keep as much as possible in the Reserve Accumulation Fund. Mayor Peters stated there is also a fiscal emergency to be considered as well. She gave the example if more positions have to be eliminated again in the future because of the economy still going down, possibly $200,000 could help in getting past that fiscal emergency. She said of course it would have to be a decision of the City Council at that time. MOTION: Mayor Peters moved the City Council direct staff return with a resolution for General Fund Accumulation Fund use at the May 24, 2010 City Council meeting, stating that the Reserve Accumulation Fund shall be maintained at $2.75 million dollars or 27.5%, whichever is higher. The motion was seconded by Councilmember Grantham and carved with Councilmember Winholtz voting no. (4-1) D-5 DISCUSSION REGARDING DEVELOPMENT OF CRITERIA AND MEASUREMENTS OF SUCCESS FOR THE WASTEWATER TREATMENT PLANT PROJECT Councilmember Smukler stated clearly defined and understood project criteria and measurements of success provide a valuable foundation for the decision -making process and will serve as a guide for the JPA Board, staff, consultants, project manager and community as various choices are encountered throughout the project. He said the Wastewater Treatment Plant upgrade project is the largest single public infrastructure investment in the history of both Cayucos and Morro Bay. Without agreed criteria of ® success, it is difficult to measure if we have achieved our goals and provided the highest value project to the community. Councilmember Smukler recommended the City 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING— MAY 10, 2010 Council discuss their interests for the Morro Bay/Cayucos Wastewater Treatment Plant Upgrade and clearly define the project criteria and measurements of success. It is recommended that the discussion topic and City Council's project criteria be introduced for discussion and adoption with the Cayucos CSD Board at the June 10'h JPA meeting. Councilmember Grantham stated the list is very good. He reminded everyone that this is a joint partnership with Cayucos, and he would like to see this at a JPA forum. Mayor Peters agreed with Councilmember Smukler that this is a good outline and guideline for the new people who will be coming on the City Council and the Board. Councilmember Borchard suggested the list have an accompanying compliance schedule, and make a package of it. MOTION: Councilmember Smukler moved the City Council adopt this list of interests and values for the Wastewater Treatment Plant upgrade project to be compared with the compliance schedule to be available for future representatives, staff, consultants, and other decision makers, and forward to Cayucos for their review and discussion. The motion was seconded by ® Mayor Peters and carried unanimously. (5-0) E. DECLARATION OF FUTURE AGENDA ITEMS — NONE. ADJOURNMENT The meeting adjourned at 9:35 p.m. Recorded by: Jamie Boucher Deputy City Clerk 11 ® City of Morro Bay Morro Bay, CA 93442 (805) 772-6200 NOTICE OF SPECIAL CLOSED SESSION MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Closed Session Meeting on Tuesday, March 30, 2010 at 3:00 mm. to be held in the City Hall Conference Room located at 595 Harbor Street, Morro Bay, California. The City Council will be conducting the following: CS-1 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real ® property as to one (1) parcel. • Property: Lease Site 82-85/82W-85W; 725 Embarcadero Negotiating Parties: Redican and City of Morro Bay. Negotiations: Lease Terms and Conditions. CS-2 Discussions regarding Personnel Issues including one (1) public employee regarding evaluation, specifically the City Attorney. DATED: March 29, 2010 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. rf I J ® 0 - City of Morro Bay Morro Bay, CA 93442 (805) 772-6200 NOTICE OF SPECIAL CLOSED SESSION MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Thursday. March 25, 2010 at 8:30 a.m. to be held in the City Hall Conference Room located at 595 Harbor Street, Morro Bay, California. The City Council will be considering the following items: CS-1 GOVERNMENT CODE SECTION 54957.6. CONFERENCE WITH LABOR NEGOTIATOR Conference with the City's Designated Representative, for the purpose of reviewing the City's position regarding ® the terms and compensation paid to employees groups and giving instructions to the Designated Representative. CS-2 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel. • Property: Chorro Valley Property. Negotiating Parties: Chorro Valley Property Owners and City of Morro Bay. Negotiations: Water rights. DATED: March 23, 2010 Bridgett KesiNng, 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 0 PROVIDE ACCESSIBILITY TO THE MEETING. ® 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 22, 2010 CLOSED SESSION — MARCH 22, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.8: REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as ® to one (1) parcel. Property: 625 Harbor Street; Library. Negotiating Parties: SLO County and City of Morro Bay. Negotiations: Lease Terms and Conditions. CS-2 GOVERNMENT CODE SECTION 54956.9(B): CONFERENCE WITH LEGAL COUNSEL DUE TO ANTICAPTED LITIGATION. Significant exposure to litigation pursuant to Subdivision (b) of Section 54956.9 as to one (1) matter. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. PUBLIC SESSION — MARCH 22, 2010 ® 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. 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 FOR THE REGULAR CITY COUNCIL ® MEETING OF MARCH 8, 2010; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. ® A-2 AUTHORIZATION TO EXECUTE AN AGREEMENT WITH THE CALIFORNIA DEPARTMENT OF TRANSPORTATION FOR FUNDING TO ADD CLASS II BIKE LANES TO NORTH MAIN STREET; (PUBLIC SERVICES) RECOMMENDATION: Authorize the Acting Public Services Director to enter into an agreement with the California Department of Transportation for funding to receive $480,000 of American Resource and Recovery Act funding to add Class H bike lanes to North Main Street. A-3 STATUS REPORT ON WATER USAGE FOR FEBRUARY 2010; (PUBLIC SERVICES) RECOMMENDATION: Receive for information and file. A-4 PROCLAMATION DECLARING APRIL 2010 AS "MONTH OF THE CHILD" AND "CHILD ABUSE PREVENTION MONTH" AND APRIL 10, 2010 AS "DAY OF THE CHILD"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-5 PROCLAMATION DECLARING APRIL AS "FAIR HOUSING MONTH"; (PUBLIC SERVICES) ® RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 CONSIDERATION OF PROPOSED TRANSIT SERVICE CHANGES; (PUBLIC SERVICES) RECOMMENDATION: Conduct a public hearing on the proposed changes in transit service for Morro Bay Dial -a -Ride and trolley, and approve said changes to be effective October 4, 2010. B-2 DRAFT ANTENNAS AND WIRELESS TELECOMMUNICATIONS FACILITIES ORDINANCE; (PUBLIC SERVICES) RECOMMENDATION: Review the draft ordinance and direct staff accordingly. B-3 INTRODUCTION OF AN ORDINANCE OF THE CITY OF MORRO BAY, CALIFORNIA REPEALING ORDINANCE 551 AND ENACTING AN ORDINANCE ADDING SECTION 10.76.035 TO CHAPTER 10.76 TO PROVIDE RULES AND REGULATIONS FOR THE MORRO BAY SKATE PARK REQUIRING ANY PERSON RIDING A PERMITTED COASTING DEVICE AT THE MORRO BAY SKATE PARK TO WEAR A HELMET, ® ELBOW PADS, AND KNEE PADS; (RECREATION & PARKS) 3 RECOMMENDATION: Review and amend the Morro Bay Municipal Code ® Chapter 10.76 to include a new Section 10.76.035 requiring any person riding a permitted coasting device at Morro Bay Skate Park to wear a helmet, elbow pads and knee pads. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 CONSIDERATION OF CONTRACT EXTENSION WITH MV TRANSPORTATION; (PUBLIC SERVICES) RECOMMENDATION: Approve two-year extension of the current Morro Bay Dial -a -Ride and Trolley Operations and Management Agreement with MV Transportation and return to Council for .final approval of negotiated compensation rates resulting from changes to transit services approved by Council. D-2 AUTHORIZATION TO HIRE A SECOND -IN -COMMAND FOR THE POLICE DEPARTMENT; (ADMINISTRATION) RECOMMENDATION: Authorize the City Manager to proceed with the recruitment and rehiring of the Police second -in -command position with options. ® D-3 SELECTION OF TWO COUNCIL MEMBERS TO SERVE ON THE CHORRO AND MORRO VALLEY WATER RIGHTS AD -HOC COMMITTEE; (CITY ATTORNEY) RECOMMENDATION: Appoint two Council Members to the Chorro and Morro Valley Water Rights Ad -Hoc Committee. D4 SCHEDULE INTERVIEW DATE TO FILL VACANCIES ON TOURISM BUSINESS IMPROVEMENT DISTRICT ADVISORY BOARD AND CITIZENS' OVERSIGHT COMMITTEE; (ADMINISTRATION) RECOMMENDATION: E. DECLARATION OF FUTURE AGENDA ITEMS IynnnT�aL�1u i�lsi�l I E 4 THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO ® THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. E r1 U MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. 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 22, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Grantham moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Smukler and unanimously carried. (5-0) Mayor Peters read the Closed Session Statement CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel. • Property: 625 Harbor Street; Library. Negotiating Parties: SLO County and City of Morro Bay. Negotiations: Lease Terms and Conditions. CS-2 GOVERNMENT CODE SECTION 54956.9(B): CONFERENCE WFrH LEGAL COUNSEL DUE TO ANTICAPTED LITIGATION. Significant exposure to litigation pursuant to Subdivision (b) of Section 54956.9 as to one (1) matter. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:45 p.m. MOTION: Councilmember Borchard 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. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 22, 2010 VETERANS MEMORIAL HALL - 6:00 P.M. 1 Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Janeen Burlingame John DeRohan Genene Lehotsky Rob Livick Tim Olivas Mike Pond Dylan Wade Joe Woods ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE City Manager City Attorney City Clerk Management Analyst Police Chief Associate Planner Acting Public Services Director Police Commander Fire Chief Utilities/Capital Projects Manager Recreation & Parks Director PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS 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 stated a lunch was held by the Eastern Star wherein Myrtle Reid [whose husband Stew was a Morro Bay volunteer firefighter] donated a check to the Friends of the Morro Bay Fire Department in the amount of $15,000. The following people expressed support for Item D-2 (Authorization to Hire a Second -In - Command for the Police Department) and requested the City Council authorize the City Manager to proceed with the recruitment and rehiring of the Police Commander position: Brian Millard, President of the Morro Bay Police Association, Mel Bernaisse, Peter Candela, Vicki Landis, Randy Ponder, Manny Silva, Claire Grantham, Bob Schwenowa, and Ken Vesterfelt. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 22, 2010 D'Onna Kennedy announced she is a candidate running for City Council in the Primary Election on June 8's, and she will be holding a Town Hall meeting on April 9 s from 6-8 pm to allow citizens to voice their concerns and opinions and suggest what actions they would like to see taken. Debra Franklin, Morro Bay Beautiful, announced the Morro Bay Yard Sale will be held April 10s and 11`s with 100 or more yard sales in Morro Bay. She also noted Morro Bay Garbage will be providing free hauling the week after the yard sale. Peter Candela stated the Visitor Center fulfillments are increasing each month, and because of this activity the Visitor Center will be open on Sundays from 10 am — 2 pm. He said the Lady Washington Tall Ship will be coming in November 22°' and 23`s. Melody DeMeritt addressed the primary election process and with only four candidates running for two spots on City Council, she suggested suspending the primary election for council members and continues with the mayor position only. Jamie Irons shared photographs of the trail clean-up held last week noting there were 30 volunteers which equaled to 90 man hours. Nancy Johnson addressed the issue of medical marijuana dispensaries in the City, and since state and city government is subservient to federal government, she suggested placing an advisory vote on the November 2, 2010 General Election ballot to get the community's opinion. Ken Vesterfelt announced the Cruisin' Morro Bay Car Show is approaching and he thanked Fundraiser Follies for reducing some of the City fees that are involved. John Barta addressed Item A-3 (Status Report on Water Usage for February 2010) stating the 5% allocation of State Water has been raised to 15%, and may be raised further to 30- 45% before the end of the year. He also addressed the primary election process noting there will be elimination of candidates and the citizens will be able to vote for the run-off candidates at the General Election in November. Amber Alwine, Christina Lefevre and Laura Slauter from San Luis Obispo County Tobacco Control Program, addressed the California Tobacco Retailer License Ordinance and requested Council agendize the consideration of adopting this Ordinance in Morro Bay to decrease and prevent youth tobacco use. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 22, 2010 Joan Solu, PTA President, stated the 4h Annual Art Auction and Barbeque held at Del Mar Elementary School was a great success. She also addressed the proposed combining of the Tourism Business Improvement District (TBID) Advisory Board, Community Promotions Committee and Visitor Center, and noted the TBID is formed of hotels and the assessment on the hotels by adding an additional percentage on top of the transient occupancy taxes for use by the TBID Advisory Board to promote the hotels through advertising and in other ways. Ms. Solu stated the TBID by-laws are approved annually by those that are assessed and the City should be careful if considering changes to the TBID by-laws. She also requested Council allow the new Police Chief to determine if the Police Commander position should be filled. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:11 p.m.; the meeting resumed at 7:21 p.m. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are Is approved without discussion. A-1 APPROVAL OF THE MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF MARCH 8, 2010; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 AUTHORIZATION TO EXECUTE AN AGREEMENT WITH THE CALIFORNIA DEPARTMENT OF TRANSPORTATION FOR FUNDING TO ADD CLASS II BIKE LANES TO NORTH MAIN STREET; (PUBLIC SERVICES) RECOMMENDATION: Authorize the Acting Public Services Director to enter into an agreement with the California Department of Transportation for funding to receive $480,000 of American Resource and Recovery Act funding to add Class H bike lanes to North Main Street. A-3 STATUS REPORT ON WATER USAGE FOR FEBRUARY 2010; (PUBLIC SERVICES) RECOMMENDATION: Receive for information and file. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 22, 2010 11 A4 PROCLAMATION DECLARING APRIL 2010 AS "MONTH OF THE CHILD" AND "CHILD ABUSE PREVENTION MONTH" AND APRIL 10, 2010 AS "DAY OF THE CHILD"; (ADMINISTRATION) RECOMMENDATION:. Adopt Proclamation. A-5 PROCLAMATION DECLARING APRIL AS "FAIR HOUSING MONTH"; (PUBLIC SERVICES) RECOMMENDATION: Adopt Proclamation. Councilmember Smukler pulled Item A-2 from the Consent Calendar; Councilmember Grantham pulled Item A-3; and Mayor Peters pulled Item A4. MOTION: Councilmember Grantham moved the City Council approve Items A-1 and A-5 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-2 AUTHORIZATION TO EXECUTE AN AGREEMENT WITH THE CALIFORNIA DEPARTMENT OF TRANSPORTATION FOR FUNDING TO ADD CLASS 11 BIKE LANES TO NORTH MAIN STREET; (PUBLIC SERVICES) Councilmember Smukler thanked the Public Services staff for their efforts on this Class 11 Bike Lane Project on North Main Street. MOTION: Councilmember Smukler moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-3 STATUS REPORT ON WATER USAGE FOR FEBRUARY 2010; (PUBLIC SERVICES) Councilmember Grantham referred to the water report and asked staff if citizens on dialysis should be concerned, and if reverse -osmosis systems should be considered. Utilities/Capital Projects Manager Dylan Wade responded those people on dialysis should be aware of the blending of chloraminated water supply and take precautions. 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 22, 2010 MOTION: Councilmember Grantham moved the City Council approve Item A-3, and direct staff to contact the San Luis Obispo County Kidney Dialysis Services and have them notify Morro Bay dialysis patients of the City's use. of chloraminated water to reduce taste and odor, and what the potential risks to kidney dialysis patients could be. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-4 PROCLAMATION DECLARING APRIL 2010 AS "MONTH OF THE CHILD" AND "CHILD ABUSE PREVENTION MONTH" AND APRIL 10, 2010 AS "DAY OF THE CHILD"; (ADMINISTRATION) Mayor Peters pulled this item in order to make a presentation. MOTION: Councilmember Grantham moved the City Council approve Item A4 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) B. PUBLIC HEARINGS, REPORTS & APPEARANCES ® B-1 CONSIDERATION OF PROPOSED TRANSIT SERVICE CHANGES; (PUBLIC SERVICES) Management Analyst Janeen Burlingame stated since fiscal year 2007/2008, Morro Bay Dial -a -Ride (MBDAR) has lost more than $171,000 in Local Transportation Fund (LTF) and State Transit Assistance (STA) funds with which to operate MBDAR service, which includes the most recent news of an additional $24,607 reduction to LTF this fiscal year. As the City begins the budget development process for FY 2010/2011, it must look at what funding will be allocated from the State to determine whether or not existing MBDAR services can be provided beyond the current fiscal year, and if not, what type of transit services can be provided with the available funding. With a current MBDAR operating budget of $379,154, $204,009 anticipated LTF for FY 2010/2011 and $38,000 estimated fares, MBDAR would be short more than $137,000 to operate existing service levels before additional increases to the operating budget are contemplated for the annual Consumers Price Index increase per the contract for services and fuel as the price per gallon is higher now than when the budget was prepared for this fiscal year. As such, it is apparent that current MBDAR service levels cannot be maintained for FY 2010/2011. Ms. Burlingame recommended the City Council conduct a public hearing on the proposed changes in transit service for MBDAR and trolley, and approves said changes to be effective October 4, 2010. Mayor Peters opened the hearing for public comment. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MARCH 22, 2010 u Joan Solu offered Option D, which would take the bus fleet that the City has that are in good operating service, and put the entire process out to bid for a private company to come in and run the business as a private service, and not reducing the ridership and service capabilities. She said the City could make money on the rental of the buses and continue to provide the service to the community probably for less than what is being proposed. Ms. Solu also requested Council consider the community's ridership when considering a fixed route system. Janet Gould, Del Mar Elementary School Principal, stated Dial -a -Ride is a valuable service for students and families. She said a fixed route would not be an option for the student riders who require door-to-door service. John Barta stated there is a human element to this and this is a valuable service for the elderly in our community. Barbara Doerr stated Dial -a -Ride users should be issued a notice of pending elimination. She said this is a vital service provided to senior citizens and those who are handicap. Ms. Doerr stated Council should look at demographics and parking in -lieu funds to fund this service. Nancy Johnson stated Council should consider contracting this service out as suggested by Joan Solu. Mayor Peters closed the public comment hearing. Mayor Peters addressed the lack of transit funding county -wide. She said the Cambria district has a senior bus service that is operated by 35 volunteer drivers, Monday — Friday from 9:00 am — 4:30 pm; they have a subsidy from the Regional Transit Authority for fuel and vehicle maintenance, however the vehicles are owned by the volunteers. Councilmember Grantham stated he is not supportive of using accumulation funds for non -essential services. He said he is supportive of considering contracting with outside services or utilizing volunteer services for the City's transportation use. Councilmember Smukler stated he is very uncomfortable in prioritizing the trolley concept over the Dial -a -Ride concept. He said a closer look needs to be taken at the Cambria Community Bus service that is operated somewhat like the City's Dial -a -Ride service and has been organized by community groups and operates with some TDA funds from the state and a once a year mail -out fundraiser. Councilmember Smukler stated he does not see the concept of abolishing a demand -based service. 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 22, 2010 Councilmember Borchard stated she agrees with Councilmember Smukler, and would rather not run the trolleys and maintain the Dial -a -Ride service. Councilmember Winholtz stated she agrees, this is not a service to cut and it is an essential service. She said a fixed route will not work for the handicap and seniors in the community. MOTION: Councilmember Smukler moved the City Council direct staff to negotiate with the current contractor or go out to bid and investigate alternative Dial -a -Ride program delivery and service level models including public and private partnerships and volunteer -based concepts while identifying a funding option not utilizing accumulation funds and prioritizing demand response service over the trolley service with the funding to come from the sale of the 1999 trolley to fill the $24,000 gap for funding in this current year. The motion was seconded by Councilmember Borchard and carried with Councilmember Grantham voting no. (4-1) B-2 DRAFT ANTENNAS AND WIRELESS TELECOMMUNICATIONS ® FACILITIES ORDINANCE; (PUBLIC SERVICES) [ City Attorney Robert Schultz stated this draft ordinance was excerpted from the Zoning Ordinance update approved by City Council in 2005. On January 11, 2010, the City Council gave direction to staff to separate the wireless telecommunications facilities portion of the update and bring it forward as an ordinance which can be reviewed and approved. The document required minor revisions to ensure compatibility with the current Zoning Ordinance but no substantial changes were made. Staff has reviewed the proposed ordinance with the Telecommunications Act of 1996 and has determined that the ordinance remains in conformance. Mr. Schultz recommended Council review the proposed ordinance and direct staff to return with the ordinance as proposed or with modifications for first reading and introduction. Councilmember Winholtz addressed amendments to Chapter 17.27 — Antennas and Wireless Telecommunications Facilities. She said she is not in favor of allowing anything above the height limit. Councilmember Winholtz stated she is concerned with issues such as location and the definition of visual, which is nebulous. Mayor Peters opened the hearing for public comment. John Barta stated radar antennas should be included in the discussion due to the potential danger they may cause. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 22, 2010 Mayor Peters closed the public comment hearing. MOTION: Councilmember Winholtz moved the City Council direct staff to take into consideration comments made by Council and public, and return with an Ordinance for first reading and introduction. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) B-3 INTRODUCTION OF AN ORDINANCE OF THE CITY OF MORRO BAY, CALIFORNIA REPEALING ORDINANCE 551 AND ENACTING AN ORDINANCE ADDING SECTION 10.76.035 TO CHAPTER 10.76 TO PROVIDE RULES AND REGULATIONS FOR THE MORRO BAY SKATE PARK REQUIRING ANY PERSON RIDING A PERMITTED COASTING DEVICE AT THE MORRO BAY SKATE PARK TO WEAR A HELMET, ELBOW PADS, AND KNEE PADS; (RECREATION & PARKS) Recreation & Parks Director Joe Woods stated in August 2009, the City Council adopted Ordinance 551, which requires any person riding a permitted coasting device to wear a helmet, elbow pads and knee pads. Unfortunately, Ordinance No. 551 references and ® amends an outdated version of Chapter 10, and must be rectified for proper enforcement. Ordinance No. 554 repeals Ordinance No. 551, and amends the newly adopted Chapter 10, specifically 10.76. Council's adoption of this Ordinance is a formality for filing and should not constitute an additional burden on the City. Mr. Woods recommended the City Council open the hearing for public comment, and approve the first reading and introduction of Ordinance No. 554 by number and title only. Mayor Peters opened the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. MOTION: Councilmember Winholtz moved the City Council approve for introduction and first reading of Ordinance No. 554 Repealing Ordinance No. 551 and Enacting an Ordinance Adding Section 10.76.035 to Chapter 10.76 to Provide Rules and Regulations for the Morro Bay Skate Park Requiring any Person Riding a Permitted Coasting Device at the Morro Bay Skate Park to Wear a Helmet, Elbow Pads, and Knee Pads. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) City Manager Andrea Lueker read Ordinance No. 554 by number and title only. Mayor Peters called for a break at 9:09 p.m.; the meeting resumed at 9:21 p.m. ® C. UNFINISHED BUSINESS — NONE. W ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 22, 2010 D. NEW BUSINESS D-I CONSIDERATION OF CONTRACT EXTENSION WITH MV TRANSPORTATION; (PUBLIC SERVICES) MOTION: Mayor Peters moved the City Council continue this item to the April 26, 2010 City Council meeting. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) D-2 AUTHORIZATION TO HIRE A SECOND -IN -COMMAND FOR THE POLICE DEPARTMENT; (ADMINISTRATION) City Manager Andrea Lueker stated the second -in -command provides highly complex staff assistance to the Chief of Police. This work requires considerable experience and judgment in the interpretation and application of rules, regulations, policies, laws and ordinances. The second -in -command is also an important link to the Sergeant and Corporal supervisory staff at the Police Department. The position is responsible for ® improving operations, decreasing turnaround times, and streamlining work processes by working cooperatively and jointly to provide quality seamless customer service to the community and allied agencies. The second -in -command is also very important for retention and recruitment of staff. As well, the second -in -command is expected to have an open door policy and to posses strong mentoring and coaching skills. These attributes are used to monitor morale and implement opportunities for employees to experience career development and advancement within the command structure of the department. Ms. Lueker stated staff is keenly aware of the financial constraints that are affecting all cities at this time, including the City of Morro Bay. As a result, an extensive review of the second -in -command position has been made to determine the best recommendation to the City Council with the anticipated vacancy. Staff is aware of the financial constraints that are affecting all cities at this time, including the City of Morro Bay. As a result, an extensive review of the second -in -command position has been made to determine the best recommendation to the City Council with the anticipated vacancy. While it does not appear that the substitution of the second -in -command position with a non -management Sergeant or Admin. Sergeant position saves funding, based on comments received, it is clear the City Council may have some further apprehension in regard to the refilling of the position. Based on the discussions that have taken place and the concerns other than fiscal savings, staff presents the following options for the Council to consider: 1) Amend the Commander title to that of a Captain. Routinely, the Captain position is below that of a Commander; 2) require the second -in -command position to live within the same mileage constraints as the new Police Chief. This will be restricted to driving to no more ® than 30 miles or 30 minutes for purposes of commuting to residence to city limits; 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 22, 2010 3) have the second -in -command position report to work in uniform at least two days each week and respond outside the office when there are multiple incidents or a shortage of patrol officers; and/or 4) have the second -in -command alter his/her work schedule periodically to work during the weekend. While staff believes there is a significant need fora second -in -command in the Police Department, it is certainly possible to make some amendments to the existing position in order to respond to the concerns voiced by the City Council. Those options presented above would certainly change the position of second -in -command, not result in additional General Fund costs as well as address the concerns of the City Council. Ms. Lueker recommended the City Council review the information presented along with the options including title, proximity from home to work, patrol time and scheduling, and direct staff in regard to those options and authorizes the hire. Councilmember Grantham stated in times past there were positions in the Police Department that are no longer on the books. He said there will be a morale issue if there is no upward mobility in the department. Councilmember Grantham stated he is a strong supporter of maintaining a second in command to allow the Police Chief to put his footprint on his department and allow him to do his job. ® Councilmember Borchard stated she will support maintaining this position; however, she would like to wait for the new Police Chief to take over and see what his needs might be in filling this position. Councilmember Smukler stated while trying to stabilize the budget, he is not comfortable to authorize the hiring of this position immediately. He said he would prefer the new Police Chief assume his new role, and then he would be interested in a POST evaluation. Councilmember Winholtz stated she is sensitive to the budget issues and she is open to a second in command position; the question is when. Mayor Peters stated morale is a tremendous issue with the Police Department. She said the recruitment period will give Council plenty of time to decide whether or not to proceed with this. Mayor Peters stated the title should remain the same which will affect future hires, and/or a position that current officers could aspire to. She said this is a responsibility the City owes the community. MOTION: Mayor Peters moved the City Council authorize the City Manager to proceed with the recruitment and rehiring of the Police second -in - command position with the following options: 1) require the second -in - command position to live within the same mileage constraints as the new Police Chief. This will be restricted to driving to no more than 30 miles ® or 30 minutes for purposes of commuting to residence to city limits; 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 22, 2010 2) have the second -in -command position report to work in uniform at least two days each week and respond outside the office when there are multiple incidents or a shortage of patrol officers; and, 3) have the second - in -command alter his/her work schedule periodically to work during the weekend. The motion was seconded by Councilmember Grantham and carried with Councilmember Smukler and Councilmember Winholtz voting no. (3-2) Councilmember Winholtz stated she feels Council steps away from the reality of the topic when there are emotional pleas. She said she is discouraged this has become an emotional issue rather than a factual issue. Councilmember Winholtz stated she voted no because she felt rushed and needed more time to discuss this issue. Councilmember Smukler stated although he appreciates Chief DeRohan and Commander Olivas as well as the whole department, his vote was based on his severe concerns with the budget which will need to be addressed. ® Councilmember Borchard stated her comments were not based on the emotions of the speakers but based on the facts of the position. D-3 SELECTION OF TWO COUNCIL MEMBERS TO SERVE ON THE CHORRO AND MORRO VALLEY WATER RIGHTS AD -HOC COMMITTEE; (CITY ATTORNEY) City Attorney Robert Schultz stated because of the degradation to the water quality and the changes in regulations, the City no longer has the ability to both maintain the pumping of wells in the Chorro Groundwater Basin as well as provide water that meets all state and federal standards to customers in the basin. In order to both provide water to the customers outside the City limits and maintain the Chorro Groundwater resource for the benefit of the customers within the City limits, major modifications to the City's infrastructure would be required. These modifications would be needed to effectively deal with the nitrate contamination while also providing disinfection of the occasional bacteriological contamination events that impact the Chorro Groundwater Basin. These issues are further complicated by Water Right Permits that limit the City's ability to pump water from its wells. In order to fully understand the water issues facing the City, staff recommends the City Council appoint an Ad -Hoc Committee to help develop strategies and solutions to the City's Water Rights issues in the Chorro and Morro Valley. If the City Council decides to form an Ad Hoc Committee, then it should determine which two Council Members should serve on the committee. 12 2 L� MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 22, 2010 MOTION: Mayor Peters moved the City Council appoint Councilmember Borchard and Councilmember Winholtz to serve on the Chorro and Morro Valley Water Rights Ad -Hoc Committee. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) D-4 SCHEDULE INTERVIEW DATE TO FILL VACANCIES ON TOURISM BUSINESS IMPROVEMENT DISTRICT ADVISORY BOARD AND CITIZENS' OVERSIGHT COMMITTEE; (ADMINISTRATION) The City Council scheduled an interview date for May 101s at 5:30 p.m. to be located at the Veterans Memorial Building. E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Smukler requested to agendize a discussion on General Fund and Risk Management Reserve use; Council concurred. Councilmember Smukler requested to agendize a discussion on policy relating to City Council input on hiring/evaluation of department heads; Council concurred. Councilmember Winholtz requested to agendize the consideration of sending a letter to Congresswoman Lois Capps opposing farm fish legislation (Winholtz will prepare report); Council concurred. Councilmember Winholtz requested to agendize the consideration of sending a letter to State Parks regarding campground fees; Council concurred. ADJOURNMENT The meeting adjourned at 10:20 p.m. Recorded by: `(S� Brid ett Kess� lin g g City Clerk 13 ® City of Morro Bay Morro Bay, CA 93442 (805) 772-6200 MORRO BAY CITY COUNCIL GOAL SETTING WORKSHOP NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Goal Setting Workshop on Tuesday, March 16, 2010 at 12:00 a.m. — 12:45 p.m. to be held in the Community Center Auditorium located at 1001 Kennedy Way, California, to receive public comment; this workshop will reconvene at 1:30 p.m. for the City Council to discuss priorities for the neat two years, and identify success factors for the top priority goals. ® NOTICE IS FURTHER GIVEN that the Morro Bay City Council will be holding a Goal Setting Workshop on Wednesday, March 17, 2010 at 8:30 a.m. to be held in the Community Center Auditorium located at 1001 Kennedy Way, California. The City Council will review and prioritize goals, and define success for priorities. DATED: March 12, 2010 Bridge Kessl ng, City qerk 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 MEETINGS. s MANAGEMENT R I N C O R P O R A T E D Morro Bay Council Goal Setting Workshop March 16 1:30 to 5:00 (Note: Lunch will begin at 12:45 following public comment on Budget) March 17 8:30 to 12:30 Workshop Goals • Determine the Council's priorities for the next ihree� years • Identify success factors for the top priority goals 1:30 Welcome/Introductions/Agenda Review Update on Goals from June Session and Other Council Priorities ® Discuss Issues and Goals 1. Review matrix focusing on high priority items 2. Discuss each item needing clarification 3. Add other issues/goals 4. Consolidate areas as appropriate and separate projects from list 5:00 Adjourn March 17 8:30 Review and Prioritize Goals Define Success for Council Priorities Define 'what success looks like' for each of the priority goals to provide clear policy direction and expectations to staff 12:15 Debrief / Identify Next Steps Debrief the workshop and agree on expectations going forward ® Adjourn by 12:30 2107 North First Street Suite 470 www.managementpartners.com 408 437 5400 San Jose, CA 95131 Fax 453 6191 City of Morro Bay Morro Bay, CA 93442 (805) 772-6200 NOTICE OF SPECIAL CLOSED SESSION MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Closed Session Meeting on Wednesday. March 10, 2010 at 8:30 a.m. to be held in the City Hall Conference Room located at 595 Harbor Street, Morro Bay, California. The City Council will be considering the following: CS-1 GOVERNMENT CODE SECTION 54956.8: REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel. • Property: Chorro Valley Property. Negotiating Parties: Chorro Valley Property Owners and City of Morro Bay. Negotiations: Water rights. CS-2 GOVERNMENT CODE SECTION 54957.6. CONFERENCE WITH LABOR NEGOTIATOR Conference with the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to employees groups and giving instructions to the Designated Representative. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 11 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — MARCH 8, 2010 CLOSED SESSION — MARCH 8, 2010 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: Chorro Valley Property. Negotiating Parties: Chorro Valley Property Owners and City of Morro Bay. Negotiations: Water rights. Property: Vacant Lot/Comer of Coral/San Jacinto. Negotiating Parties: Paul Saint Hilaire and City of Morro Bay. Negotiations: Voluntary Purchase and Sale. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. l ® PUBLIC SESSION — MARCH 8, 2010 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. 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 OF FEBRUARY 22, 2010; (ADMINISTRATION) 0 RECOMMENDATION: Approve as submitted. ® B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 CONSIDERATION OF AN AMENDMENT TO MORRO BAY MUNICIPAL CODE TITLE 5 ADDING CHAPTER 5.50 ESTABLISHING REGULATIONS AND PROCEDURES ENTITLED "MEDICAL MARIJUANA COLLECTIVES AND COOPERATIVES; (CITY ATTORNEY) RECOMMENDATION: Review report and draft Regulations and Procedures, and direct staff to return for Introduction and First Reading with any changes suggested by Council. B-2 CONTINUED DISCUSSION ON THE FISCAL YEAR 2010/2011 BUDGET AND PRIORITIES; (ADMINISTRATION) RECOMMENDATION: Receive public comments in regard to the Fiscal Year 2010/11 Budget. B-3 APPEAL OF THE PLANNING COMMISSION'S CONDITIONAL APPROVAL FOR A TENTATIVE PARCEL MAP AND COASTAL DEVELOPMENT PERMIT FOR A PROPOSED SUBDIVISION OF 3 RESIDENTIAL PARCELS [500-101/CPO-321]; (PUBLIC SERVICES) ® RECOMMENDATION: Deny the appeal and uphold the Planning Commission's conditional approval of the project with modification. B-4 APPEALS OF THE PLANNING COMMISSION'S CONDITIONAL APPROVAL OF A MINOR USE PERMIT (UPO-255) TO CONVERT A UNIT FROM COMMERCIAL USE TO RESIDENTIAL USE; (PUBLIC SERVICES) RECOMMENDATION: Deny the appeal and uphold the Planning Commission's approval with conditions. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 - POTENTIAL TOPICS FOR THE JOINT CITY COUNCIL/PLANNING COMMISSION MEETING; (PUBLIC SERVICES) RECOMMENDATION: Consider potential discussion topics for the March 15, 2010 joint City Council/Planning Commission meeting. E. DECLARATION OF FUTURE AGENDA ITEMS F. 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. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. 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 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — MARCH 8, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker 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 Smukler 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 two (2) parcels. • Property: Chorro Valley Property. Negotiating Parties: Chorro Valley Property Owners and City of Morro Bay. Negotiations: Water rights. • Property: Vacant Lot/Comer of Coral/San Jacinto. Negotiating Parties: Paul Saint Hilaire and City of Morro Bay. . Negotiations: Voluntary Purchase and Sale. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:50 p.m. MOTION: Councilmember Grantham moved the meeting be adjourned. The motion was seconded by Councilmember Borchard and unanimously carried. (5-0) The meeting adjourned at 5:50 p.m. r 1 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2010 VETERANS MEMORIAL HALL - 6:00 P.M. C� J 11 Mayor Peters called the meeting to order at 6:10 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Rick Algert Rob Livick John DeRohan Dan Doris Genene Lehotsky Tim Olivas Mike Pond Joe Woods City Manager City Attorney City Clerk Harbor Director Acting Public Services Director Police Chief Building Official Associate Planner Police Commander Fire Chief Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. Mayor Peters requested to add to the agenda an emergency Item D-2 as follows: D-2 CONSIDERATION OF SENDING CORRESPONDENCE TO CONGRESS- WOMAN LOIS CAPPS REGARDING FUNDING FOR WEST COAST GROUNDFISH CATCH SHARE MANAGEMENT PROGRAM AND KEY ISSUES FOR LOCAL FISHING COMMUNITIES MOTION: Councilmember Grantham moved the City Council add Item D-2 to tonight's agenda. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MARCH 8, 2010 PUBLIC COMMENT Jeff Eckles, President of Morro Bay 4's, Inc., announced a benefit would be held at Tokyo Joe's Sushi on March 23rd to help fund the 4's of July festivities. He also announced upcoming meetings and fundraisers. Virginia Hiramatsu announced a Relay for Life event would be held on August 71s; she said there will be a meeting for those who would like to learn more on March 91s and the following Tuesday evening there will be a meeting for team captains. D'Onna Kennedy announced her candidacy for City Council in the Primary Election that will be held on June 8`". Gina Dorrington stated she is the Operations Manager for Pere Water at the Santa Paula Water Recycling Facility. She urged the City Council and community to take time to research the options of its Wastewater Treatment Facility. Ms. Dorrington stated she has watched the City struggle through the facility design phase and violation period and millions of dollars spent on design while incurring violations; and, fortunate enough to ® witness her company [Pere Water] come to Santa Paula with a unique solution and design built operate finance solution, and now they are two months away from starting up the brand new water recycling facility for the community of Santa Paula. She said she would like to present the City of Morro Bay with another alternative for its wastewater treatment. Nate Owen stated he is the Vice -President of Construction for Pere Water and has built five facilities for Pere Water. He listed the reasons of why the City should take a second look at the direction it is heading towards, and why the City should exhaust all other options prior to making any commitments to enter into a design contract which is where the City is currently heading towards. Mr. Owen stated Pere Water is a design, build, operate firm and their buildings are aesthetically and odor pleasing; they guarantee water quality, costs, and schedule of construction. Nancy Johnson thanked those who contributed to the Chuck Meissner Memorial Bench. She also announced her candidacy for City Council in the Primary Election that will be held on June 8's. Joan Solu announced the Del Mar Elementary School Art Auction and Barbeque will be held on March 24d' Jamie Irons announced there will be a volunteer trail clean-up at Morro Bay State Park on ® March 14t°. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2010 Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 6:58 p.m.; the meeting resumed at 7:08 p.m. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF FEBRUARY 22, 2010; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. MOTION: Councilmember Winholtz moved the City Council approve the Consent Calendar. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) is B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 CONSIDERATION OF AN AMENDMENT TO MORRO BAY MUNICIPAL CODE TITLE 5 ADDING CHAPTER 5.50 ESTABLISHING REGULATIONS AND PROCEDURES ENTITLED "MEDICAL MARIJUANA COLLECTIVES AND COOPERATIVES; (CITY ATTORNEY) City Attorney Robert Schultz stated in June 2005, staff recommended the City Council enact an interim urgency ordinance imposing a moratorium on medical marijuana dispensaries until staff had an opportunity to propose regulations. The interim urgency ordinance was not adopted by Council and staff was directed to allow medical marijuana dispensaries pursuant to our current municipal code. Pursuant to Council direction, medical marijuana dispensaries were allowed in the City of Morro Bay in the C-I District by obtaining a business license and with a minor use permit in the MCR District under the category of "drugs". Based upon Council's action, in 2006, the City approved a medical marijuana dispensary at 780 Monterey Street. This location was in the General Commercial zoning district. Staff issued a business license since the sale of drugs (in this case medical marijuana) was an allowable use in the General Commercial zoning district. In 2007, an application was received for the establishment of a Medical Marijuana Dispensary at 2840 Main Street. This location is in the Mixed Commercial/Residential zoning district, so a minor use permit was required. Staff issued a minor use permit since IS the sale of drugs (in this case medical marijuana) was, an allowable use in the Mixed Commercial/Residential zoning district. The minor use permit was appealed to the ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2010 Planning Commission. While the appeal was pending, the City Council declared a moratorium on medical marijuana dispensaries. In 2008, after reviewing the current status of federal and state law and the associated risks and possible consequences of establishing an ordinance allowing medical marijuana dispensaries, the City Council instructed the City Attorney to prepare an ordinance that would eliminate the possibility of storefront medical marijuana sales in the City. Pursuant to Council's direction, Ordinance No 547 was enacted in 2009. However, Ordinance 547 had a sunset provision and expired in October 2009. During discussions on Ordinance 547, the City Council expressed interest in considering an ordinance that would establish provisions for locating and regulating medical marijuana dispensaries (M?vMs) within the City of Morro Bay. The City's Attorney's Office has developed a possible approach to locating and regulating MMDs which entails specifying the zoning districts in which MMDs may be established and developing regulations governing the procedures to be followed in applying for, permitting, revoking and renewing a license required to operate an MMD. The draft ordinance is based upon the City Attorney Office's review of both adopted and draft ordinances of several jurisdictions that allow MMDs or are considering allowing MMDs. It represents a comprehensive examination of potential impacts and sets forth ® detailed requirements for the operators of an MMD. The City Attorney's office has attempted to draft an ordinance that suits the scale of Morro Bay by providing the possibility of a single medical marijuana dispensary under specific circumstances. The use of the license process will allow greater control by the City should the dispensary be found to be a nuisance. Mr. Schultz recommended the City Council review the staff Report and draft Regulations and Procedures entitled "Medical Marijuana Collectives and Cooperatives", and direct staff to return with this item for Introduction and First Reading with any changes suggested by Council. El Mayor Peters opened the hearing for public comment. The following people spoke in support of medical marijuana dispensaries being approved to be located in the City of Morro Bay: Rich Donald, Warren Sarvis, Linda Hill, John Gay, Austin Connella, Bryce Prunte, Kent Connella, Adam Vincent and Allie Brown. The following people expressed opposition to medical marijuana dispensaries being allowed in the City of Morro Bay: Jack Barrett, Jim Ross, Arby Kitzman, Barry Brannon, and Andrew Wilkie. Gary Christianson stated he doesn't have an opinion on locating a medical marijuana dispensary in Mono Bay; his comment was for Council to consider the implications of marijuana being illegal. 5 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2010 Susan Stewart stated she believes medical marijuana should be safely and legally available as a prescribed drug according to state law; however, she expressed concern with some of the language in the draft ordinance, and with the possible location of a dispensary in the 800 block of Main Street. She referred to Section 5.50.060(C.1) states the dispensary should not be located within 500 feet of an existing school, public parks, etc..., and noted this could affect the ability of herself and businesses in the area to hold art and music classes for children, or provide locations for birthday parties, weddings, etc. Joan Solu requested Council be especially careful of where a dispensary would be located, and she also requested Council consider if the tax base will fully cover the increased pressure on the City services. Mayor Peters closed the public comment hearing. Councilmember Grantham stated this will happen one day because there is money to be made by the owners and by the government. He said the federal government currently ® classifies marijuana as a Class One narcotic, and federal government trumps state laws. There is a current delivery service that is unregulated and will deliver marijuana to patients, and physicians can prescribe Marinol tablets through a normal pharmacy. Councilmember Grantham stated he does not consider the 800 block of Main Street a suitable location for a MMD. He said he would like a Council sub -committee to work with stakeholders to ensure this issue works out the right way. ri1 LJ Councilmember Winholtz stated this ordinance has good guidelines that need to be tightened up regarding location. She said she is appreciative that the City is willing to meet this need. Councilmember Smukler stated this is the time to regulate an unregulated industry. He said he supports a sub -committee with staff members and stakeholders involved. Councilmember Smukler stated local sourcing and quality control need to be included in order to be able to track and ensure safe, quality medicine as well as know where the sources are coming from and provide a responsible service. He expressed concern with locating a MMD in the C-1 zoned location. Councilmember Borchard stated she is not supportive of placing a risk in this community until federal and state laws are met. Mayor Peters stated she supports proceeding with a sub -committee working with staff and stakeholders in order to proceed in a safe manner. E] ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2010 MOTION: Mayor Peters moved the City Council establish a sub -committee to work with stakeholders on locating a medical marijuana dispensary in Morro Bay; and, to bring back an ordinance within 60-90 days. The motion was seconded by Councilmember Smukler and carried with Councilmember Borchard voting no. (4-1) MOTION: Mayor Peters moved the City Council appoint Councilmember Smukler and herself as sub -committee members, and Councilmember Grantham as alternate. The motion was seconded by Councilmember Smukler and carved with Councilmember Borchard voting no. (4-1) Mayor Peters called for a break at 8:20 p.m.; the meeting resumed at 8:25 p.m. B-2 CONTINUED DISCUSSION ON THE FISCAL YEAR 2010/2011 BUDGET AND PRIORITIES; (ADMINISTRATION) City Manager Andrea Lueker stated the City Council approved the budget calendar at their February 8, 2010 City Council meeting. As part of that discussion the City Council ® approved and encouraged additional opportunities to receive public comment in regard to the budget. In addition to general comments the Council is interested in members of the public answering two specific questions: 1) In these difficult budget times, what City services are most important to you; and 2) What do you value most about Morro Bay. Staff will collect all the comments/responses and provide that information to the City Council at their first budget/goal workshop scheduled for March 16`s and 17ie. Ms. Lueker recommended the City Council open the public hearing to receive comments in regard to the fiscal year 2010/2011 budget; no further action is recommended. Mayor Peters opened the hearing for public comment. Joan Solu stated she enjoys the safe clean environment and community of Morro Bay to raise her children. She requested Council not cut youth services in the Recreation & Parks Department; open the Teen Center as a Youth Center; and requested Council not cut funding in Community Promotions Committee or Visitor Center budgets. Mayor Peters closed the public comment hearing. No action was taken on this item. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2010 B-3 APPEAL OF THE PLANNING COMMISSION'S CONDITIONAL APPROVAL FOR A TENTATIVE PARCEL MAP AND COASTAL DEVELOPMENT PERMIT FOR A PROPOSED SUBDIVISION OF 3 RESIDENTIAL PARCELS [500-10l/CP0-321]; (PUBLIC SERVICES) Associate Planner Genene Lehotsky stated on December 7, 2009, the Planning Commission considered the proposed application. Staff recommendation was to deny the proposed subdivision exception request, which was to allow the access way (Agave Dr.) square footage to be included in the required lot square footage for single family residentially zoned lots and to revise the map reducing the requested three lots to two lots, which would allow the lots to meet the Subdivision Ordinance's requirements for the minimum lot size of 6,000 square feet for single family residentially zoned lots. On January 19, 2010, the project was once again brought before the Planning Commission. Pursuant to public testimony and Planning Commission discussion, a condition was placed on the project restricting the size of each residence to a maximum of 2,000 square feet, excluding the garage, with the second floor no more than 801/o of the first floor square footage. This condition was placed on the project to ensure that future residences would not be of an excessive size in relation to the reduced size of each parcel which ® resulted from the subdivision exception request. In addition, the condition sought to prevent future homeowners from requesting variances or special exceptions due to the reduced size of the lots. Cathy Novak, on behalf of Dave and Dorene Stover, has appealed the Planning Commission's conditional approval, specifically Condition 914, which states: "The gross living area square footage allowed for each residence is 2,000 square feet total, excluding the garage, with the second floor no more than 80% of the first floor square footage". The appellant contends that the map is not a Vesting Tentative Parcel Map, only a Tentative Parcel Map, therefore the proposal does not require development plans or, in this case, building footprints as a part of the approval. As such, the Planning Commission does not have the authority to impose a condition related to future development since development plans are not a requirement of a Tentative Parcel Map. In addition, a condition was arbitrarily placed on the project by the Planning Commission which restricted the second floor of each residence to 801/o of the first floor because there are currently no codified requirements to limit the size of the second floor of single family residences. Further, the appellant states that pursuant to Section 16-1.003B, nothing in the Subdivision Ordinance shall be read to limit the rights of the City to enact additional provisions concerning the division of land as are deemed necessary to protect the public health, safety and welfare and there is no nexus that can be made between restricting the size of the residences and protecting the public's health, safety, and welfare. Ms. Lehotsky recommended the City Council deny the appeal and uphold the Planning Commission's conditional approval of the project with the fallowing modification: "Require an alternative condition that requires residences over 2,500 sq. ft., excluding a 400 sq. ft. garage, to be reviewed under a Conditional Use Permit consistent ® with Interim Urgency Ordinance No. 535." ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2010 Cathy Novak, representing the appellant, stated the homes were approximately 1,900 and 1,400 square feet. The exhibit used was intended as only an example to provide staff and the Planning Commission with sufficient information to analyze the subdivision design and lot sizes. However, the Planning Commission used this information to create condition #14 which reads, "Living Area: The gross living area square footage allowed for each residence is 2,000 square feet total, excluding the garage, with the second floor no more than 80% of the first floor square footage." Ms. Novak stated the Planning Commission does not have the authority to impose a discretionary condition such as this because the individual home development plans are not a part of the project description or specifically allowed for consideration under any section of the Subdivision Ordinance for Tentative Parcel Maps. Because this project applied for an exception to the Subdivision Ordinance, it is being argued that by granting the exception the Planning Commission was allowed to impose additional conditions as part of the approval but the condition imposed should have been limited to the subdivision design and not the future home designs that were not a part of the project description. The City does not currently have any codified regulations that require the second floor of a single family home to be no more than 80% of the first floor square footage or limitations to gross living area ® square footage. The City previously had required homes in excess of 2,500 square feet to obtain Planning Commission approval where by the Commission had a nexus to request reductions in bulk, scale and mass of a project. Ms. Novak stated it is not the project applicant's intent to maximize and build on every square inch of each of these parcels but rather to build a comfortable size home that meets their family needs. To this end and working towards a fair and just compromise, the applicant supports staffs alternative condition that will require a Conditional Use Permit if the residences are over 2,500 square feet, excluding a 400 square foot garage, consistent with the City's previous interim ordinance. Mayor Peters opened the hearing for public comment. Grant Crowl commended the Planning Commission by holding this project to the floor - to -area ratio. Mayor Peters closed the public comment hearing. Councilmember Winholtz stated the subdivision ordinance is clear in that the minimum lot size is 6,000 square feet. She said when requesting an exception such as this, there should be some type of payback because there is a violation of the community's standards. Councilmember Winholtz stated it was a direct intent of the Planning Commission to go from 2 lots to 3 lots in order to obtain affordability and something that would fit in that area. 9 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2010 Councilmember Smukler stated he agrees with Councilmember Winholtz comments. He said he has no problem with the 2-lot development concept; however, he has concern with granting this exception without receiving the conditions that are important for the community in that area. Councilmember Smukler stated he supports upholding the Planning Commission decision. Councilmember Borchard stated she supports the alternative condition and urgency ordinance as the guidelines. Mayor Peters agreed with Councilmember Borchard regarding the alternative condition and urgency ordinance as the guidelines. Councilmember Grantham stated he supports the right of the property owner, which would allow the alternative approach to this property. MOTION: Councilmember Borchard moved the City Council deny the appeal and approve the alternative condition that requires residences over 2,500 square feet, excluding a 400 square -foot garage, to be reviewed under a ® Conditional Use Permit consistent with Interim Urgency Ordinance No. 535. The motion was seconded by Councilmember Grantham. Mayor Peters stated she would consider restricting the houses to 2,000 square feet maximum and taking off the percentage. VOTE: The motion failed with Councilmember Smukler, Councilmember Winholtz and Mayor Peters voting no. (2-3) MOTION: Mayor Peters moved the City Council deny the appeal and uphold the Planning Commission's decision, with the modification to remove the 80% restriction on the second floor. The motion was seconded by Councilmember Winholtz and carried with Councilmember Borchard and Councilmember Grantham voting no. (3-2) B4 APPEALS OF THE PLANNING COMMISSION'S CONDITIONAL APPROVAL OF A MINOR USE PERMIT (UPO-255) TO CONVERT A UNIT FROM COMMERCIAL USE TO RESIDENTIAL USE; (PUBLIC SERVICES) Associate Planner Genene Lehotsky stated there were two separate appeals filed on this project. The first appeal was filed by Grant Crowl based on the Planning Commission's decision to deny an appeal of a Minor Use Permit (UPO-255) allowing the conversion of ® a commercial unit to a residential unit. The appellant cites that granted request is not 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2010 consistent with City regulations. The second appeal was filed by Cathy Novak on behalf of the applicant, Michael Del Puppo, to request removal of a condition requiring an existing parking space, currently located behind a locked gate, to be made available for the tenants. The City Council should consider if the Planning Commission's decision to deny the previous appeal and uphold approval Minor Use Permit (UPO-255) allowing the use conversion was appropriate, if the residential use is appropriate for the surrounding neighborhood, and if the project is consistent with the Zoning Ordinance, General Plan and Local Coastal Plan. Ms. Lehotsky recommended the City Council deny the appeals and uphold the Planning Commission's approval of Minor Use Permit UPO-255 with either removal of the trash enclosure condition; or eliminate the parking space behind the building to allow for the trash enclosure. Cathy Novak, representing the applicant, stated this project consists of six units total, five residential and one commercial. She said during the Minor Use Permit process, staff determined that the total number of parking spaces for this project required the applicant retain nine spaces. Originally, the appellant stated he assumed that the commercial operation is required by law to provide an ADA space. Ms. Novak stated the applicant responded to the Planning Commission that this project is not required by law to provide ® an ADA space however; they believe it is important to provide the special space and is doing just that. The appellant also contends that the ordinance requires an additional parking space to be used for guest parking. The applicant believes that staff has adequately addressed this in the report by concluding this change does not create a more intensive use and does not require more parking spaces than what already exists. The modification to a residential unit is a less intensive use as compared to commercial therefore under the code no additional parking is required. The second topic of this appeal is in regards to the residential to commercial ratios. The appellant is correct that this is a mixed use project in the MCR/R4 district. However, there are no current policies set by Council that places maximum or minimum percentages on the mix of uses. The appellant has argued that the LCP and Zoning Ordinance require a fixed ratio of commercial to residential uses. Ms. Novak stated this project is not a new or redevelopment project so it is considered an existing non -conforming structure and when it was originally constructed it was zoned differently and now they are trying to make this project conform to current codes that should only apply to a new or redeveloped building. She said under the MCR zoning designation and the Main Street Specific Plan, residential is an allowed use, and the Zoning Ordinance clearly states that the LCP should be used for exceptions to the ratio specific requirements in those areas of the City in which there is text specifically describing the mixed use relationship that should be allowed. In this particular area, the LCP states that a mixture of all uses as appropriate shall be encouraged and that the evaluation will be done on a case -by -case basis. Ms. Novak stated it is important to keep commercial properties to support the tax base, but if you ® have a commercial space and are not able to rent it because of the economy, it serves no 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2010 purpose to leave it sitting vacant. The applicant would prefer to keep this unit commercial and when the economy turns around and he has the opportunity, he plans to convert it back to commercial. Ms. Novak noted an appeal was filed on behalf of the project applicant of Condition #7 that requires the applicant to open the fence, relocate the garbage container and provide the required parking for Unit #1 in the space to the rear of the building, and she thanked staff for their agreement with the applicant that the only appropriate location for the trash/recycling receptacle is behind the building. Ms. Novak requested on behalf of the applicant, Council's support by denying the appeal. Grant Crowl, appellant, stated he was uncomfortable and objected to having the two appeals combined as one. He said the appeals are two different issues and will convolute the process and the truth. Mr. Crowl stated his appeal refers to the entire project and the procedural issues of the Planning Commission appeal/hearing process. He said it is about an illegal conversion that did not get a proper review because it was converted illegally without a permit; the property owner only sought a permit after being reported to the City for his illegal conversion. The policy question is whether this is appropriate; the legal question is whether it is consistent with the Local Coastal Plan. This property is along north Main Street in a commercial area; it is flanked by commercial businesses both to ® the north and the south. Mr. Crowl stated the City Council has repeatedly said south of San Jacinto should remain commercial to support and enhance our north Main Street businesses and tax base. The purpose of the MCR district is "to broaden the range of commercial market opportunities." He said staff stated they reviewed this conversion of use as an existing project. What can no longer be used on this property is the "parcel -by - parcel" language that staff has interpreted into "case -by -case" from Mixed Use Area F; what can be used is Zoning Ordinance 17.24.110, mixed comme{cial/residential (MCR) district. Designation of the MCR zone with an R-1, R-2, R-3, or R-4 suffix will permit residential development according to the designated density and applicable development standards of this plan. Also applies is the North Main Specific Plan (17.40.110.C) which states: "Allowable uses are listed in the applicable primary zoning district." Finally, regarding parking, Zoning Ordinance 17.44.010A.1, "Facilities Required. For every structure erected or enlarged, and for all land devoted to a new use, and for any structure or land changed to a more intensive use that would require the provision of more parking spaces over what already exists, off-street parking spaces shall be provided in accordance with the requirement and standards of this chapter, a change, expansion or intensification of land use which would increase the number of parking spaces required as provided in this title shall be based only upon the number of spaces required for the change or expansion." This point was never fully understood by the commissioners because the decision became about trash cans, storage, fines and the economy and more. What was not addressed was a conditional use permit over the minor use permit it was given. It was generally agreed that it was an . illegal conversion and because of the misinterpretation of Mixed Use Area F by changing the wording from parcel -by -parcel to ® case -by -case they overlooked the legal consistency and appropriate change of use. 12 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MARCH 8, 2010 E Mayor Peters opened the hearing for public comment. Chuck Reasor addressed mixed use areas and their uses. He said that staff misconstrued the word "shall" and instead used the word "may" in this case. Mr. Reasor also said staff did not use the entire quote for mixed -use for Area' F" in making their decision. Nancy Bast stated the $250 appeal fee should be refunded to the appellant since he had to pay it twice. Steve Semas stated there are many commercial buildings that are sitting vacant, and a property owner should be able to keep their property viable: Mayor Peters closed the public comment hearing. Councilmember Winholtz referred to Morro Bay Municipal Code Section 17.24.110 that refers to MCR/R-4, which shows that the ratio must comply. She also referred to Section 17.44 relating to parking spaces and a change in use, which is a part of this issue. Councilmember Smukler stated the issue is the loss of commercial use along North Main Street, which can be a challenge to build back. He said he is not interested in this conversion. Councilmember Grantham stated this request provides affordable housing in the City. He said parking is an issue, and as long as there is a commercial use there should be a handicap parking spot. Councilmember Grantham stated he would prefer the building in use and being maintained than vacant. Councilmember Borchard stated she would rather have residential there than more commercial vacancies. She said she is willing to support the building in use and being maintained than vacant. Mayor Peters stated North Main Street commercial uses are not working in this economy. She said she looks at this building and it looks like an apartment building. Mayor Peters stated she does not see the point of trying to make something happen when there is no demand at this time. MOTION: Mayor Peters moved the City Council deny the appeal and uphold the Planning Commission's approval of the approval of Minor Use Permit UPO-255; also, refund $250 to the appellant, Grant Crowl. The motion was seconded by Councilmember Borchard. 13 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2010 Councilmember Winholtz stated she is not supportive of the motion, but in support of the present businesses along North Main Street. She also said it is not right for the City Council to go against the City ordinances and allow a property owner to change a use because of an economic situation. Councilmember Smukler stated he will not support this motion because North Main Street is the frontage of the City into the downtown and Embarcadero. VOTE: The motion carried with Councilmember Smukler and Councilmember Winholtz voting no. (3-2) MOTION: Mayor Peters moved the City Council remove the trash enclosure condition and eliminate the parking space behind the building to allow for the trash containers. The motion was seconded by Councilmember Borchard. ® Mayor Peters withdrew her motion; Councilmember Borchard withdrew her second. MOTION: Councilmember Winholtz moved the City Council uphold the Planning Commission's approval and deny the appeal. The motion was seconded by Mayor Peters and failed with Councilmember Borchard, Councilmember Grantham and Councilmember Smukler voting no. (2-3) MOTION: Councilmember Grantham moved the City Council deny the appeal and uphold the Planning Commission's approval of Minor Use Permit UP0- 255 by placing the trash receptacles behind the gate, and that the applicant will provide nine parking spaces. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) C. UNFINISHED BUSINESS — None. D. NEW BUSINESS D-I POTENTIAL TOPICS FOR THE JOINT CITY COUNCIL/PLANNING COMMISSION MEETING; (PUBLIC SERVICES) Acting Public Services Director Rob Livick stated in anticipation of the joint City Council/Planning Commission meeting on March 15t°, the Planning Commission discussed potential topics at their March 1, 2010 meeting. The following are potential ® topics as prioritized by the Planning Commission: 1) presentation from the County on 14 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH S, 2010 Land Use Element Update Process plus time for questions and answers; 2) Downtown Visioning/Revitalization Plan plus time for questions and answers; 3) Pro/Con Analysis of City property; 4) Tree Replacement Policies and how that works with the Tree Committee; and, 5) request City to hire lobbyist to secure our General Plan and Zoning Ordinance. Mr. Livick recommended the City Council consider and discuss the potential topics for the March 15a' joint City Council/Planning Commission meeting. Council discussed the topics for discussion at the Joint City Council/Planning Commission meeting. No further action was taken on this item. D-2 CONSIDERATION OF SENDING CORRESPONDENCE TO CONGRESS- WOMAN LOIS CAPPS REGARDING FUNDING FOR WEST COAST GROUNDFISH CATCH SHARE MANAGEMENT PROGRAM AND KEY ISSUES FOR LOCAL FISHING COMMUNITIES; (HARBOR) Harbor Director Rick Algert reviewed the draft letter regarding funding for the West Coast Groundfish Catch Share Management Program and key issues for local fishing communities and requested the City Council approve the sending to Congresswoman Lois Capps. MOTION: Mayor Peters moved the City Council approve sending a letter to Congresswoman Lois Capps regarding funding for West Coast Groundfish Catch Share Management Program and Key Issues for Local Fishing Communities. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) E. DECLARATION OF FUTURE AGENDA ITEMS — NONE. ADJOURNMENT The meeting adjourned at 10:55 p.m. Recorded by: i� Bridgett Kessling City Clerk 1 15 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — FEBRUARY 22, 2010 CLOSED SESSION — FEBRUARY 22, 2010 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.3 parcels. • Property: 625 Harbor Street; Library. Negotiating Parties: SLO County and City of Morro Bay. Negotiations: Lease Terms and Conditions. Property: 781 Market Street and the Comer of Pacific Street and Market Street. Negotiating Parties: George Salwasser and the City of Morro Bay. Negotiations: Purchase and Sale Conditions. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. u E PUBLIC SESSION — FEBRUARY 22, 2010 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. 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 MEETINGS OF JANUARY 25, 2010 AND FEBRUARY 8, 2010; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. 2 A-2 RESOLUTION APPROVING ASSIGNMENT OF LEASE SITE 86-86W, ® LOCATED AT 801 EMBARCADERO, FROM 801 EMBARCADERO LLC (CALDWELL AND REDICAN) TO 801 EMBARCADERO LLC (CALDWELL); (HARBOR) RECOMMENDATION: Adopt Resolution No. 10-10. A-3 REQUEST TO CHANGE RECREATION & PARKS COMMISSION MEETING DAY AND TIME; (RECREATION & PARKS) RECOMMENDATION: Review and approve the Recreation & Parks Commission's request to change their regular monthly meeting day and time. A4 STATUS REPORT ON WATER USAGE FOR JANUARY 2010; (PUBLIC SERVICES) RECOMIIIIENDATION: Review and rde report. A-5 RESOLUTION NO. 08-10 AUTHORIZING SUBMISSION OF RURAL TRANSIT FUND GRANT APPLICATIONS; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 08-10. A-6 RESOLUTION NO. 09-10 AWARDING CONTRACT TO PURCHASE ONE ® NEW REPLACEMENT TROLLEY; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 09-10. A-7 RESOLUTION AUTHORIZING SACRAMENTO COUNTY TO RECEIVE THE SUPPLEMENTAL ENERGY PROGRAM GRANT ON BEHALF OF THE CITY OF MORRO BAY; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 12-10. A-8 PROCLAMATION DESIGNATING FEBRUARY 20-27, 2010 AS 'NATIONAL FFA WEEK"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-9 PROCLAMATION DESIGNATING TUESDAY, FEBRUARY 23, 2010 AS "SPAY DAY USA"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. 3 B. PUBLIC HEARINGS REPORTS & APPEARANCES ® B-1 DISCUSSION ON THE FISCAL YEAR 2010/11 BUDGET AND PRIORITIES; (ADMINISTRATION) RECOMMENDATION: Receive public comment on the fiscal year 2010/11 budget. C. UNFINISHED BUSINESS C-1 AUTHORIZATION TO ADD AND HIRE A WASTEWATER COLLECTIONS SYSTEMS OPERATOR II; (PUBLIC SERVICES) RECOMMENDATION: Authorize the addition and hiring of a new Wastewater Collections Systems Operator H for the Wastewater Collections Division. C-2 DISCUSSION ON WATER QUALITY TESTING IN MORRO. BAY'S DRINKING WATER; (PUBLIC SERVICES) RECOMMENDATION: Review the report and provide direction to staff as necessary to test for emerging contaminants. C-3 DISCUSSION REGARDING ALTERNATIVE BIOSOLIDS MANAGEMENT OPTIONS; (CITY COUNCIL) ® RECOMMENDATION: Consider report and direct staff accordingly. C4 RESOLUTION NO. 11-10 ADDING TO AND AMENDING THE COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING THE EXPENSE REIMBURSEMENT POLICY FOR ELECTED AND APPOINTED OFFICIALS, CITY LETTERHEAD AND THE COUNCIL COMPENSATION COMMITTEE; (ADMINISTRATION) RECOMMENDATION: D. NEW BUSINESS Adopt Resolution No. 11-10. D-I RESOLUTION NO. 13.10 ESTABLISHING THE PURPOSE OF THE RISK MANAGEMENT FUND; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 13-10. D-2 CONSIDERATION OF AN AMENDMENT TO MORRO BAY MUNICIPAL CODE CHAPTER 2.16.080 REGARDING THE DUTIES OF THE CITY ATTORNEY; (CITY ATTORNEY) RECOMMENDATION: Review the report and draft amendments to Morro Bay ® Municipal Code 2.16.090 regarding the duties of the City. Attorney, and direct staff to return for introduction and first reading with any amendments. 4 E. DECLARATION OF FUTURE AGENDA ITEMS ® F. 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. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCH, AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. 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 MINUTES - MORRO BAY CITY COUNCIL ® CLOSED SESSION—FEBRUARY 8, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m. PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker 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 Borchard 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 86/86W; 801 Embarcadero Negotiating Parties: City and Caldwell Negotiations: Lease Terms and Conditions • Property Lease Site 71-77/71 W-77W; 601 and 699 Embarcadero Negotiating Parties: City and Trapp Negotiations: Lease Terms and Conditions The meeting adjourned to Closed Session at 5:10 p.m. and returned to regular session at 5:50 p.m. MOTION: Councilmember Smukler 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 I MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 22, 2010 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:15 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Rick Algert Janeen Burlingame John DeRohan Cindy Jacinth Bruce Keogh Rob Livick Tim Olivas Mike Pond ® Susan Slayton Dylan Wade Joe Woods City Manager City Attorney City Clerk Harbor Director Management Analyst Police Chief Housing Programs Coordinator Wastewater Treatment Plant Manager City Engineer Police Commander Fire Chief Administrative Services Director Utilities/Capital Projects Manager Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session to discuss Real Property transactions relating to: 1) 625 Harbor Street, [the library]; and 2) 781 Market Street. No reportable action under the Brown Act was taken on the 781 Market Street property. Although no final action was taken relating to the 625 Harbor Street property [the library], Council did dyed Staff to negotiate a transition plan for the use of the Program Room to library use. PUBLIC COMMENT David Weisman, Alliance for Nuclear Responsibility, addressed the letter to the Nuclear Regulatory Commission regarding the re -licensing of Diablo Nuclear Power Plant which the City Council considered at its meeting on February 8, 2010. He stated this is a matter of economics; all money spent on the Diablo Canyon Power Plant project will come out ® of consumers' electric bills. Mr. Weisman stated a letter from the entire City Council 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 22, 2010 regarding the re -licensing of Diablo Nuclear Power Plant project would be appreciated however he will be happy to deliver the letter from the two Council Members as well. Janet Gould and students of Del Mar Elementary School thanked the Council for support with PEG funding for video equipment and shared a short video made by the students. Bill Martony stated Council should consider using the surplus building as a meeting room when the fire department moves into their new fire house and allow the library to expand into the program room. Jack McCurdy addressed the Morro Bay Library and said a survey was performed and found there are numerous alternatives around the City for meeting rooms that would allow the program room at the library to be used for library services. He said the City has no legal grounds to not allow the library to not use this for library services. John Barta stated recovery.gov shows the City is doing well fiscally. ® Alice Kolb thanked the Fire Department for saving her house from being flooded from an underground spring. Zeke Turley, AGP Video, announced Morro Bay Aquarium's 50`s Anniversary parry will be airing on Channel 20. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:10 p.m.; the meeting resumed at 7:15 p.m. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETINGS OF JANUARY 25, 2010 AND FEBRUARY 8, 2010; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 22, 2010 A-2 RESOLUTION APPROVING ASSIGNMENT OF LEASE SITE 86-86W, LOCATED AT 801 EMBARCADERO, FROM 801 EMBARCADERO LLC (CALDWELL AND REDICAN) TO 801 EMBARCADERO LLC (CALDWELL); (HARBOR) RECOMMENDATION: Adopt Resolution No. 10-10. A-3 REQUEST TO CHANGE RECREATION & PARKS COMMISSION MEETING DAY AND TIME; (RECREATION & PARKS) RECOMMENDATION: Review and approve the Recreation & Parks Commission's request to change their regular monthly meeting day and time. A-4. STATUS REPORT ON WATER USAGE FOR JANUARY 2010; (PUBLIC SERVICES) RECOMMENDATION: Review and fide report. ® A-5 RESOLUTION NO. 08-10 AUTHORIZING SUBMISSION OF RURAL TRANSIT FUND GRANT APPLICATIONS; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 08-10. A-6 RESOLUTION NO. 09-10 AWARDING CONTRACT TO PURCHASE ONE NEW REPLACEMENT TROLLEY; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 09-10. A-7 RESOLUTION AUTHORIZING SACRAMENTO COUNTY TO RECEIVE THE SUPPLEMENTAL ENERGY PROGRAM GRANT ON BEHALF OF THE CITY OF MORRO BAY; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 12-10. A-8 PROCLAMATION DESIGNATING FEBRUARY 20-27, 2010 AS "NATIONAL FFA WEEK'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Ej E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 22, 2010 A-9 PROCLAMATION DESIGNATING TUESDAY, FEBRUARY 23, 2010 AS "SPAY DAY USA"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember Winholtz pulled Item A4 of the Consent Calendar; Mayor Peters pulled Items A-8 and A-9 in order to make public presentations. MOTION: Councilmember Grantham moved the City Council approve the Consent Calendar with the exception of Items A4, A-8 and A-9. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) A4 STATUS REPORT ON WATER USAGE FOR JANUARY 2010; (PUBLIC SERVICES) Councilmember Winholtz requested staff clarification regarding information provided in the report. Utilities/Capital Projects Manager Dylan Wade responded to Councilmember ® Winholtz and Council questions regarding water usage/production in the City. MOTION: Councilmember Winholtz moved the City Council approve Item A4 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) E A-8 PROCLAMATION DESIGNATING FEBRUARY 20-27, 2010 AS "NATIONAL FFA WEEK"; (ADMINISTRATION) A-9 PROCLAMATION DESIGNATING TUESDAY, FEBRUARY 23, 2010 AS "SPAY DAY USA"; (ADMINISTRATION) MOTION: Councilmember Grantham moved the City Council approve Items A-8 and A-9 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 22, 2010 B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 DISCUSSION ON THE FISCAL YEAR 2010/11 BUDGET AND PRIORITIES; (ADMINISTRATION) City Manager Andrea Lueker stated the City Council approved the budget calendar at their February 8, 2010 City Council meeting. As part of that discussion the City Council approved and encouraged additional opportunities to receive public comment in regard to the budget. In addition to general comments the Council is interested in members of the public answering two specific questions: 1) In these difficult budget times, what City services are most important to you; and 2) What do you value most about Morro Bay. Ms. Lueker recommended the City Council open the public hearing to receive comments in regard to the fiscal year 2010/2011 budget; no further action is recommended. Mayor Peters opened the hearing for public comment. Vicki Landis stated she loves the fresh air and that she can walk around town and feels safe. She said public safety, critical youth programs and transportation are important. Ms. Landis also requested the City retain the Police Commander position. Virginia Hiramatsu stated public safety is important, and retaining the Police Commander position. Stephanie Finley stated she likes the general lifestyle of Morro Bay. She said public safety is important to maintain, and retain the Police Commander position. Pete Mascal of Shoreline Calvary Chapel, stated due to the vandalism and graffiti at their facility, funding of public safety is important. Mayor Peters closed the public comment hearing. The City Council received the public comments; no action was taken on this item. C. UNFINISHED BUSINESS C-1 AUTHORIZATION TO ADD AND HIRE A WASTEWATER COLLECTIONS SYSTEMS OPERATOR 11; (PUBLIC SERVICES) Utilities/Capital Projects Manager Dylan Wade stated the work tasks that will be assigned to this position, have already been committed to with the City Council's adoption of the State mandated Sanitary Sewer Management Plan (SSMP) on June 8, 2009. In the June ® 4's staff report for the adoption of the SSMP, staff underscored the importance of this position noting that, "Implementation of the plan will lead to larger operational R ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 22, 2010 expenditures, larger capital expenditures, and potentially larger staffing levels to meet the minimal standards of the General Waste Discharge Requirements." Staff is now requesting that an additional person be added to help cover these added work tasks. Mr. Wade recommended the City Council authorize the addition and hiring of a new Maintenance Worker H for the Waste Water Collections Division. MOTION: Councilmember Borchard moved the City Council authorize the addition and hiring of a new Maintenance Worker II for the Waste Water Collections Department. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) C-2 DISCUSSION ON WATER QUALITY TESTING IN MORRO BAY'S DRINKING WATER (PUBLIC SERVICES) Utilities/Capital Projects Manager Dylan Wade stated the City Council held a discussion on the water quality in the City at the January 11, 2010 meeting. During that discussion, the Council requested that staff investigate the availability and costs for testing for ® emerging contaminants. The City of Morro Bay conducts a routine monitoring program testing the quality of both the source waters and the treated waters that enter into the distribution system. The water is tested for the more than 100 contaminants for which both primary and secondary drinking water standards have been established. In addition to testing for the regulated contaminants for which primary or secondary standards apply, the City also performs testing to assist the EPA in determining to what extent unregulated contaminants occur as part of the 5 year repeating Unregulated Contaminate Monitoring Rule process. Other testing is performed by the City as needed to ensure the integrity of the treatment process being used, or in the case of the recent nitrate studies, as an indicator of source water characteristics. Since the City receives water from multiple sources, some of which are subject to the influence of wastewater, there is the potential to find trace levels of these contaminants in the drinking water in Morro Bay. Depending on a number of factors such as the time of year, or blend of waters being used, the probability of finding trace contaminants will vary. While there are no known health risks from exposure to emerging contaminants occurring in trace amounts, and the methodologies for testing or treating water containing these emerging contaminants are not well established, testing can be pursued at the will of the Council. Mr. Wade recommended the City Council review this staff report and provide direction to Staff as it deems necessary to test for emerging contaminants. 1 7 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 22, 2010 MOTION: Councilmember Grantham moved the City Council direct staff to perform a water quality test on the five chemicals including acetaminophen, with the final product tested after treatment with the intent of testing the City's current supply now and to test state water when it begins to supply the City with water again. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) C-3 DISCUSSION REGARDING ALTERNATIVE BIOSOLIDS MANAGEMENT OPTIONS; (CITY COUNCIL) Councilmember Smukler stated the Morro Bay/Cayucos Water Treatment Plant construction project, as currently proposed, eliminates the existing onsite composting program and sludge drying beds. The new Biosolids Management Plan is to pay to haul the Sub Class B biosolids via truck to a Kern County based composting facility. Addition of tertiary treatment will increase the volume of biosolids to be disposed. Hauling expenses will be susceptible to fuel cost increases and tightened regulations. The benefits of a locally based Biosolids Management or Minimization Plan are: 1) More control and predictability in long term operational costs; 2) Continue leadership by example and ® retained knowledge of program; 3) Improved Carbon Footprint of WWTP operations and maintenance; 4) Energy generation potential; 5) Improved ability to identify and address pollution sources in the system; and 6) Ability to regulate and protect local area from out of area biosolids. The Morro Bay/Cayucos water treatment plant composting operation is the only such program in the County. All other SLO County water treatment plants are dependent on trucking of treated biosolids to either an out -of --county composting operation or to a local landfill. Both of these choices are best described as "temporary avoidance behavior". Councilmember Smukler also reviewed additional "out -of -County" options and summarized possible actions. He recommended the City Council consider this information and direct staff accordingly. MOTION: Councilmember Smukler moved the City Council direct staff to develop the opportunity to evaluate biosolids hauling contracts based on lowest bid and other factors important to the community such as climate impacts and local management of the material. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) El ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 22, 2010 C4 RESOLUTION NO. 11-10 ADDING TO AND AMENDING THE COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING THE EXPENSE REIMBURSEMENT POLICY FOR ELECTED AND APPOINTED OFFICIALS, CITY LETTERHEAD AND THE COUNCIL COMPENSATION COMMITTEE; (ADMIIVISTRATION) City Manager Andrea Lueker stated at the October 8, 2007 City Council meeting, the City Council adopted Resolution No. 52-07 which outlined an expense reimbursement policy for elected officials. However, that policy was not incorporated into the Council Policies and Procedures Manual. Staff has incorporated that information in Chapter 2 of the Manual with the added information red/blue-lined. At the January 14, 2008 City Council meeting, the City Council motioned for an amendment to Section 2.6 of the Council Policies and Procedures Manual which would change the word "shall' to "may". Staff has incorporated that amendment in Chapter 2 of the Manual with the amendment red/blue-lined. At the January 11, 2010 City Council meeting, the City Council motioned for an amendment to Section 5.4 of the Council Policies and Procedures Manual in regard to the use of City letterhead. Staff has amended that language with the amendment ® red/blue-lined. Ms. Lueker recommended the City Council approve Resolution No 11-10 amending the Council Policies and Procedures Manual in regard to .expense reimbursement, City letterhead and the Council Compensation Committee. Council reviewed the amendments made by staff, and requested further amendments be made. MOTION: Councilmember Winholtz moved the City Council adopt Resolution 11-10 Adding to and Amending the Council Policies and Procedures Manual Regarding the Expense Reimbursement Policy for Elected and Appointed Officials, City Letterhead and the Council Compensation Committee as amended by Council. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) D. NEW BUSINESS D-1 RESOLUTION NO. 13.10 ESTABLISHING THE PURPOSE OF THE RISK IS��./:[tiaS171.Y��i1.UA/:\�7SIt►1i.`IfYt7_�r�ii�.`hi:,il[�171.'ll Administrative Services Director Susan Slayton stated the Risk Management Fund was established to manage the insurance needs of the City; this fund is not required by the California Joint Powers Insurance Authority (CJPIA). The cash balance in this fund has grown well beyond those needs, and staff is recommending that the City Council ® establish parameters for the Risk Management Fund cash balance, and move the excess funds to the General Fund Accumulation Fund. In 2003, the City of Morro Bay, along W MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 22, 2010 with most of the other cities in the County, joined the California Joint Powers Authority (CJPIA) liability insurance program for self -insuring and pooling losses with other member agencies. In the 2006/07 fiscal year, staff combined all of the insurance funds into one Risk Management Fund to simplify the presentation. Once combined, it became apparent that the cash balances in all of the separate insurance funds ($1.17 million) were excessive for our insurance premium and claims needs that, on average over the last 7 years, have cost between $700,000 and $900,000, the majority of which was reimbursed by monthly departmental charges. Above and beyond the cost of the premiums, the City has an additional "reserve" of approximately $2.73 million in that fund. Because of how the CJPIA is designed, the City does not need to retain a reserve to pay for any claims related to the CJPIA covered programs, as those are handled by CJPIA as part of their agreement with the City. In fact, most cities that are members of the CJPIA, or a similar insurance organization, do not have a Risk Management reserve, as it serves no purpose; the funds will never be used. However, there are two specific areas that are not covered by the CJPIA: Land Use lawsuits and some personnel issues. For these purposes, the fund should not retain monies in excess of $500,000, which is the estimate arrived by staff for the target cash balance. Staff fiuther recommends that the remaining cash in the ® Risk Management Fund ($2.4 million) be transferred to the General Fund Accumulation Fund. This would raise that fund's cash balance from $477,042 to $2.88 million. The General Fund reserve target is 27.5% of General Fund expenditures, or $2.875 million. By passing this Resolution, Council will have achieved that goal. Ms. Slayton recommended the City Council adopt Resolution 13-10, which sets the parameters of the Risk Management Fund, as revised. El MOTION: Mayor Peters moved the City Council adopt Resolution 13-10, which sets the parameters of the Risk Management Fund, as revised. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) D-2 CONSIDERATION OF AN AMENDMENT TO MORRO BAY MUNICIPAL CODE CHAPTER 2.16.080 REGARDING THE DUTIES OF THE CITY ATTORNEY; (CITY ATTORNEY) City Attorney Robert Schultz stated Councilmember Winhohz expressed interest in amending the City Attorney's duties to include a requirement that he/she attend all appeals before the Planning Commission. Morro Bay Municipal Code Section 2.16.080 currently provides the following: 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 22, 2010 2.16.080 City attorney —Duties. A The city attorney shall advise the city officials in all legal matters pertaining to city business. The city attorney shall prepare such ordinances, formal resolutions, contracts or other legal instruments as may be required by the city council. The city attorney shall attend all regular meetings of the city council, and other meetings as requested by the city council, and give advice or opinions in writing whenever requested to do so by the city council, or with the approval of the city manager, by any of the boards or officers of the city. The city attorney shall approve the form of all bonds given to and all contracts made by the city, endorsing approval thereon in writing. The city attorney shall monitor existing and pending legislation which may affect the city. The city attorney shall periodically report to the city council on pending and threatened litigation in which city is a party or otherwise interested. The city attorney shall perform other legal services required from time to time by the city council. Mr. Schultz recommended the City Council review the report and draft amendment to Morro Bay Municipal Code Section 2.16.080 regarding the duties of the City Attorney and direct staff to return with this item for Introduction and First Reading with any changes suggested by Council. Councilmember Borchard stated she will be voting in opposition to amending this section of the Municipal Code, because she is not interested in regulating what the Planning Commission or any advisory board duties are in the process. MOTION: Mayor Peters moved the City Council direct staff to amend Section 2.16.080 of the Morro Bay Municipal Code to include in the City Attorney's duties that he/she will attend all appeals before the Planning Commission, and return to Council for Introduction and First Reading. The motion was seconded by Councilmember Winhohz and carried with Councilmember Borchard voting no. (4-1) E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested to agendize a discussion on action taken on the Amador Ad -Hoc Committee and Business Ad -Hoc Committee; Council concurred. ADJOURNMENT - The meeting adjourned at 9:00 p.m. tty- �sskg ® City Clerk 11 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — FEBRUARY 8, 2010 CLOSED SESSION — FEBRUARY 8, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.8. REAL PROPERTY is and 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 86/86W; 801 Embarcadero Negotiating Parties: City and Caldwell Negotiations: Lease Terms and Conditions Property Lease Site 71-77/71 W-77W; 601 and 699 Embarcadero Negotiating Parties: City and Trapp Negotiations: Lease Terms and Conditions IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 11 ® PUBLIC SESSION — FEBRUARY 8, 2010 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 cant' out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF JANUARY 11, 2010; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. ® A-2 RESOLUTION NO. 06-10 CALLING A PRIMARY MUNICIPAL ELECTION TO BE HELD ON TUESDAY, JUNE 8, 2010 FOR THE PURPOSE OF ELECTING CERTAIN OFFICERS OF SAID CITY; AND REQUESTING THE BOARD OF SUPERVISORS OF SAN LUIS OBISPO COUNTY TO CONSOLIDATE SAID ELECTION WITH THE CONSOLIDATED DISTRICTS ELECTION TO BE HELD IN THE COUNTY ON TUESDAY, JUNE 8, 2010; AND OTHER ELECTION MATTERS AS REQUIRED BY LAW; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 06-10. A-3 RESOLUTION NO. 05-10 ADOPTING THE MID -YEAR BUDGET AMENDMENTS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 05-10. A4 RESOLUTION NO. 07-10 AUTHORIZING STAFF TO USE ENERGY CONSERVATION ASSISTANCE ACCOUNT LOAN FUNDING FROM THE CALIFORNIA ENERGY COMMISSION TO SUPPLEMENT THE ENERGY EFFICIENCY COMMUNITY BLOCK GRANT FUNDS ALLOCATED FOR THE CITY OF MORRO BAY; (RECREATION & PARKS) ® RECOMMENDATION: Adopt Resolution No. 07-10. A-5 PROCLAMATION DECLARING FEBRUARY 2010 AS "GRAND JURY AWARENESS MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I CONSIDERATION OF AN AMENDMENT TO MORRO BAY MUNICIPAL CODE TITLE 5 ADDING CHAPTER 5.50 ESTABLISHING REGULATIONS AND PROCEDURES ENTITLED "MEDICAL MARIJUANA COLLECTIVES; (CITY ATTORNEY) RECOMMENDATION: Review the Staff Report and attached draft Regulations and Procedures entitled "Medical Marijuana Collectives", and direct staff to return with this item for Introduction and First Reading with any changes suggested by Council. 3 ® C. UNFINISHED BUSINESS C-1 APPROVAL OF THE 2010/I1 BUDGET CALENDAR; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Discuss and set a date for the Goals/Council Budget Workshop, and review the remaining schedule of events leading to adoption of the 2010/11 annual budget. D. NEW BUSINESS D-1 PRESENTATION FROM MIKE MANCHAK OF THE ECONOMIC VITALITY CORPORATION REGARDING THE SAN LUIS OBISPO REGIONAL AIRPORT RECOMMENDATION: Receive presentation for information. D-2 CONSIDERATION OF RECOMMENDATIONS FROM THE CITIZENS OVERSIGHT COMMITTEE; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Review recommendations and direct staff accordingly. D-3 LETTER TO THE NUCLEAR REGULATORY COMMISSION REGARDING ® THE RE -LICENSING OF DIA 3LO NUCLEAR POWER PLANT; (COUNCIL) RECOMMENDATION: Approve the letter as is or make appropriate changes. E. DECLARATION OF FUTURE AGENDA ITEMS R 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. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 1, MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — FEBRUARY 8, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m. PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker 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 Borchard 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 86/86W; 801 Embarcadero Negotiating Parties: City and Caldwell Negotiations: Lease Terms and Conditions • Property Lease Site 71-77/71 W-77W; 601 and 699 Embarcadero Negotiating Parties: City and Trapp Negotiations: Lease Terms and Conditions The meeting adjourned to Closed Session at 5:10 p.m. and returned to regular session at 5:50 P.M. MOTION: Councilmember Smukler 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. 11 1 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 8, 2010 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:13 p.m. PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Rick Algert John DeRohan Steve Knuckles Rob Livick Tim Olivas Susan Slayton Mike Wilcox Joe Woods City Manager City Attorney City Clerk Harbor Director Police Chief Fire Captain City Engineer Police Commander Administrative Services Director Maintenance Superintendent Recreation & Parks Director ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS 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 the renewal of the lease with the County of San Luis Obispo for the County/City library; and, that negotiations include the consideration of expansion of the library into the Library Program Room: Ric Deschler, Jude Long, Mary Norby, Nancy Bast, Jack McCurdy, Dorothy Cutter, David Nelson, Joan Decker, Michael Durick and Gene Shelton. Joyce Lundy reviewed the Measure Q Oversight Committee report. David Weisman, Alliance for Nuclear Responsibility, addressed Item D-3 (Letter to the Nuclear Regulatory Commission Regarding the Re -Licensing of Diablo Nuclear Power Plant) and requested the City Council approve sending this letter. Ell MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 8, 2010 Jack McCurdy addressed the power plant that exploded in Middletown, CT that killed five workers and injured two dozen others, and bringing attention to the safety of the many old power plants in California including this one in Morro Bay. He urged the City to consider the safety of the Morro Bay Power Plant, particularly with the consideration of extending its life for two more years when the outfall lease expires next year. John Barta announced the Primary Election is approaching and encouraged people to file for public office. He also thanked Mayor Peters for her service to the City as Mayor. Mark Hanson stated he wanted to build a house in Morro Bay; however, the fees would be $46,000 to build a house, which is too expensive for a middle class person. David Nelson requested the City work with the Chorro Valley residents in order to provide them water. He also expressed support for sending a letter to the Nuclear Regulatory Commission regarding the re -licensing of Diablo Nuclear Power Plant. Came Burton addressed the documents found regarding water rights in the Chorro Valley. She requested that one Councilmember be present at each meeting when negotiations are to be discussed. ® Millie Benson reviewed the history of her family property in the Chorro Valley. She said the water runs under their properties and why would they not have access to the aquifers that have belonged to her family for generations. Marla Jo Britton stated the City has pumped contaminated water from both Morro and Chorro Valley aquifers. She expressed concern of the contamination for generations to come. Wanda Durick addressed the volunteer efforts of Morro Bay Beautiful and shared items that the organization has for purchase. She encouraged membership and noted the Annual Membership Breakfast would be held on February 17`s at Dockside Too. Michael Durick addressed Item D-2 and requested Council honor the recommendation of . the Committee. He also expressed concern with the waste of water being drained from the King Avenue water tanks on Sunday, February 7's. Gary Hixon reviewed his television shows on Channel 2. He also said the water situation in Azure Flats will cost a lot of money but asked the City to help the residents out there. Mayor Peters closed the hearing for public comment. 9 Mayor Peters called for a break at 7:37 p.m.; the meeting resumed at 7:45 p.m. 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 8, 2010 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 JANUARY 11, 2010; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 06-10 CALLING A PRIMARY MUNICIPAL ELECTION TO BE HELD ON TUESDAY, JUNE 8, 2010 FOR THE PURPOSE OF ELECTING CERTAIN OFFICERS OF SAID CITY; AND REQUESTING THE BOARD OF SUPERVISORS OF SAN LUIS OBISPO COUNTY TO CONSOLIDATE SAID ELECTION WITH THE CONSOLIDATED DISTRICTS ELECTION TO BE HELD IN THE COUNTY ON TUESDAY, JUNE 8, 2010; AND OTHER ELECTION MATTERS AS REQUIRED BY LAW; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 06-10. A-3 RESOLUTION NO. 05-10 ADOPTING THE MID -YEAR BUDGET AMENDMENTS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 05-10. A4 RESOLUTION NO. 07-10 AUTHORIZING STAFF TO USE ENERGY CONSERVATION ASSISTANCE ACCOUNT LOAN FUNDING FROM THE CALIFORNIA ENERGY COMMISSION TO SUPPLEMENT THE ENERGY EFFICIENCY COMMUNITY BLOCK GRANT FUNDS ALLOCATED FOR THE CITY OF MORRO BAY; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 07-10. A-5 PROCLAMATION DECLARING FEBRUARY 2010 AS "GRAND JURY AWARENESS MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Mayor Peters pulled Items AA and A-5 from the Consent Calendar; Councilmember Winholtz pulled Item A-3. 17 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 8, 2010 MOTION: Mayor Peters moved the City Council approve Items A-2 and A4 of the Consent Calendar. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) AA APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF JANUARY 11, 2010; (ADMINISTRATION) Mayor Peters referred to the minutes of January 11, 2010, and requested the following paragraph be added between paragraph I and 3 on page 12: "Mayor Peters stated that her letter was reviewed by the City Attorney and City Manager before being sent and that she did not believe it violated Council policy. She stated that she had previously supported the idea that letters from Councilmembers indicate whether it is the individual or the Council being represented and would still support such an addition to Council policy." MOTION: Councilmember Winholtz moved the City Council approve Item A -I of the Consent Calendar as written. The motion was seconded by Councilmember Borchard and carried with Councilmember Grantham and ® Mayor Peters voting no. (3-2) A-3 RESOLUTION NO. 05-10 ADOPTING THE MID -YEAR BUDGET AMENDMENTS; (ADMINISTRATIVE SERVICES) The City Council asked various questions relating to the mid -year budget amendments. Councilmember Winholtz asked that the following amendments be made to the mid -year budget: 1) that no funds come out of the water capital improvement fund; and 2) not fund $40,000 for the Harborwalk. MOTION: Mayor Peters moved the City Council approve Item A-3 of the Consent Calendar as amended. The motion was seconded by Councilmember Grantham and carried with Councilmember Smukler and Co_uncilmember Winholtz voting no- (3-2) A-5 PROCLAMATION DECLARING FEBRUARY 2010 AS "GRAND JURY AWARENESS MONTH"; (ADMINISTRATION) Mayor Peters pulled this Proclamation to make a presentation to representatives of the San Luis Obispo County Grand Jury. 5 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 8, 2010 MOTION: Councilmember Smukler 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 CONSIDERATION OF AN AMENDMENT TO MORRO BAY MUNICIPAL CODE TITLE 5 ADDING CHAPTER 5.50 ESTABLISHING REGULATIONS AND PROCEDURES ENTITLED "MEDICAL MARIJUANA COLLECTIVES; (CITY ATTORNEY) City Attorney Robert Schultz stated in 1996 California voters enacted Proposition 215, the Compassionate Use Act, which protects qualified patients and their primary caregivers from prosecution under California laws for possession or cultivation of marijuana to treat serious illness pursuant to a doctor's recommendation. Several years later, in 2003, the state legislature enacted implementing legislation to allow qualified patients and caregivers to obtain identification cards that insulate them from arrest for cultivation and/or use of marijuana for authorized medical purposes. Although dispensaries are not expressly authorized under these laws, many individuals have used ® these laws as the legal backdrop to set up medical marijuana dispensaries where qualified patients and caregivers could purchase marijuana for medical use. Cities in California definitely find themselves at the center of the discussion regarding the compassionate use of marijuana. Staff has reviewed and analyzed several ordinances and reports and can attest to a strong public interest in its use to combat the symptoms of various debilitating illnesses. However, allowing a medical marijuana dispensary is not without concerns. The City Attorney's Office has attempted to draft an ordinance which suits the scale of Morro Bay by providing the possibility of a single medical marijuana dispensary under specific circumstances. The use of the license process will allow greater control by the City should the dispensary be found to be a nuisance. Based upon the broad information gathered, the City Attorney's Office has attempted to prepare a draft ordinance that blends many of the interests and options. The draft Ordinance contains many policy decisions that the City Council will want to consider. Mr. Schultz recommended the City Council review the report and draft Regulations and Procedures entitled "Medical Marijuana Collectives", and direct staff to return with this item for introduction and first reading with any changes suggested by Council. Mayor Peters opened the hearing for public comment. The following people expressed support for establishing regulations and procedures to regulate Medical Marijuana Collectives in the City of Morro Bay: Warren Sarvos, Bonnie Reiner, Robert Davis, Austin Canela, Rick Holiday, Linda Dill, John Gay, Adam Vincent, ® David Nelson, Jerrod Squires, Gerald Wilson, Kent Canela, Brenny Cedar and Crystal Weber. 3 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 8, 2010 Michael Durick expressed opposition to the establishment of a cooperative medical marijuana dispensary in Morro Bay. He said pharmacies have licensed pharmacists who fill prescriptions ordered by doctors. Mr. Durick reminded the City Council that they took an Oath of Office to support and defend the Constitution of the State of California and to support and defend the Constitution of the United States of America and until such time that they resolve their differences on this matter, he does not feel the Council can approve something that violates federal law. Taylor Newton, plant consultant, stated there are delivery services in the County and the City should take time to look at all the options of a medical marijuana dispensary. Mayor Peters closed the public comment hearing. Councilmember Smukler stated it is important to consider how many trips are allowed per day to the dispensary; advertising/signage regulations; sourcing of the product by local farmers; and definition of zoning areas. He said it is important that edibles are clearly labeled. Councilmember Borchard stated she supports Councilmember Smukler items for ® consideration. She said she would like to make the parameters further away from schools, daycare and residential areas. Councilmember Grantham stated it is important that what is being sold at the dispensary is being regulated to be safe from pesticides, herbicides and any harmful element. Councilmember Winholtz stated two or three dispensaries should be a maximum in the community since there is not a lot of space zoned in the City for this use. She requested Council make a minor be under the age of 18, and the co-op could change it to 21. Mayor Peters stated she does not find a dispensary any more dangerous to the youth of our society than a liquor store, and she would like the same distance requirement as a liquor store (measurement from the storefront.) She said she would like to limit it to two dispensaries within the City. Mayor Peters stated she would like to add to Morro Bay Municipal Code Section 5.50.060 that the substance cannot be sold from homes. She said a security guard should be required for at least the first year. Mayor Peters stated suspension and revocation should be made by the City Council and not the Planning Commission. She said a minor should be under the age of 21. The City Council requested a draft report return to the Council meeting on March 8, 2010; no further action was taken on this item. ® Mayor Peters called for a break at 9:23 p.m.; the meeting resumed at 9:28 p.m. 7 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 8, 2010 C. UNFINISHED BUSINESS C-1 APPROVAL OF THE 2010/11 BUDGET CALENDAR; (ADMINISTRATIVE SERVICES) City Manager Andrea Lueker recommended the City Council discuss and set a date for the Goals/Council Budget Workshop, and review the remaining schedule of events leading to adoption of the 2010/11 annual budget. MOTION: Mayor Peters moved the City Council approve the budget calendar with budget workshops on March 16 & 17, 2010, and to go with Management Partners this year, and direct staff to place a bid for a local provider as facilitator next year. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) D. NEW BUSINESS D-1 PRESENTATION FROM MICHAEL MANCHAK OF THE ECONOMIC VITALITY CORPORATION REGARDING THE SAN LUIS OBISPO ® REGIONAL AIRPORT The City Council received a presentation from Michael Manchak of the San Luis Obispo County Economic Vitality Corporation regarding an update on the San Luis Obispo Regional Airport. No action was taken on this item. D-2 CONSIDERATION OF RECOMMENDATIONS FROM THE CITIZENS OVERSIGHT COMMITTEE; (ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton stated on December 9, 2009, the Measure Q Oversight Committee met with the Administrative Services Director and reviewed all of the transactions in and out of the fund. In the fiscal year ending June 30, 2009 the District Transaction Tax Fund (Q) received $846,393 in revenue from taxes, interest and a gain on an investment; expenditures were $453,777; the funds equity as of June 30, 2009 was $820,774. Ms. Slayton reviewed the Committee's recommendations for Council information. Councilmember Borchard stated she supports the Committee's recommendations with regard to the Stormwater Management Plan, but not the file cabinet: ® Councilmember Smukler stated he supports the Measure Q Committee recommendations. P MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 8, 2010 Councilmember Grantham stated he supports funding both the Stormwater Management Plan and the file cabinet with Measure Q funds. Councilmember Winholtz stated she supports the Measure Q Committee recommendations. Mayor Peters stated she supports the Measure Q Committee recommendations. MOTION: Mayor Peters moved the City Council support the recommendations of the Measure Q Committee and remove the Stormwater Management Plan and file cabinet from the Measure Q allocations. The motion was seconded by Councilmember Smukler and carried with Councilmember Grantham voting no. (4-1) MOTION: Councilmember Winholtz moved the City Council approve to go beyond 11:00 p.m. The motion was seconded by Mayor Peters and carried unanimously. (5-0) MOTION: Mayor Peters moved the City Council take the $25,000 expenditure for the Stormwater Management Plan and $2,533 for the file cabinet from the Measure Q Fund and transfer to the General Fund. The motion was seconded by Councilmember Smukler and carried with Councilmember Grantham voting no. (4-1) D-3 LETTER TO THE NUCLEAR REGULATORY COMMISSION REGARDING THE RE -LICENSING OF DIABLO NUCLEAR POWER PLANT; (COUNCIL) Councilmember Winholtz reviewed the letter to the U.S. Nuclear Regulatory Commission regarding the re -licensing of Diablo Nuclear Power Plant. John Shoals, PG&E representative, addressed the application of the re -licensing process for the Diablo Nuclear Power Plant. Councilmember Winholtz stated the proposed letter does not contradict what Mr. Shoals has said except to expedite sending the letter. Councilmember Smukler agreed with Councilmember Winholtz and noted he would like all Council Members to sign the letter. Councilmember Borchard disagreed and said that she would rather PG&E move forward ® with the PUC filing. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 8, 2010 Councilmember Grantham agrees with Councilmember Borchard and supports Sam Blakeslee in his recommendation to obtain the studies as soon as possible. Mayor Peters agrees with Councilmember Borchard and Councilmember Grantham and suggested Councilmember Smukler and Councilmember Winholtz send a letter expressing their opinions. Councilmember Smukler stated he finds the proposed letter as requesting the Nuclear Regulatory Commission to obtain the information prior to expending taxpayer money. No action was taken on this item E. DECLARATION OF FUTURE AGENDA ITEMS Mayor Peters requested to agendize a discussion on the City's Risk Management Fund; Council concurred. Councilmember Winholtz requested to agendize a discussion on amending the City's Municipal Code requiring the City Attorney to attend all appeals of the Planning Commission; Council concurred. ADJOURNMENT The meeting adjourned at 11:10 p.m. Bridgett essling City Clerk 10 ® O 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. February 1. 2010 at 6:00 o.m. to be held in the Community Center Multi Purpose Room located at 1001 Kennedy Way, Morro Bay, California. The City Council will be conducting interviews to fill vacancies on a City Commission and Advisory Boards. DATED: January 28, 2010 Bridgett essling, ity Cler 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. LI ® 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 25, 2010 CLOSED SESSION — JANUARY 25, 2010 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 86/86W; 801 Embarcadero Negotiating Parties: City and Caldwell Negotiations: Lease Terms and Conditions. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. C PUBLIC SESSION — JANUARY 25, 2010 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. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A -I RESOLUTION NO.03-10 ADOPTING THE CITY OF MORRO BAY INVESTMENT POLICY; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 03-10. A-2 APPROVAL OF THE 2010/11 BUDGET CALENDAR; (ADMINISTRATIVE SERVICES) ® RECOMMENDATION: Approve the schedule of events leading to adoption of the biennial budget. A-3 ADOPTION OF ORDINANCE NO. 553 ADDING SECTION 3.08.105 TO THE MORRO BAY MUNICIPAL CODE ESTABLISHING A LOCAL BUSINESS PREFERENCE PROGRAM; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 553. A4 RESOLUTION IN SUPPORT OF THE LOCAL TAXPAYER PUBLIC SAFETY AND TRANSPORTATION PROTECTION ACT OF 2010; (CITY COUNCIL) RECOMMENDATION: Adopt Resolution No. 04-10. A-5 PROPOSED CHANGES TO THE STORMWATER MANAGEMENT PLAN; (PUBLIC SERVICES) RECOMMENDATION: Review and approve the proposed changes to the Stormwater Management Plan for submittal to the Regional Water Quality Control Board on January 29, 2010. B. PUBLIC HEARINGS. REPORTS & APPEARANCES ® B-1 FIRE STATION 53 CONSTRUCTION AND FUNDING UPDATE; (FIRE) RECOMMENDATION: Accept the report and receive public comment. B-2 DISCUSSION AND DIRECTION ON PLACING A MEASURE ON THE JUNE 2010 GENERAL ELECTION BALLOT APPROVING AN INCREASE IN THE CITY'S TRANSIENT OCCUPANCY TAX; (CITY ATTORNEY) RECOMMENDATION: Discuss and direct staff regarding placing a measure on the June 8, 2010 ballot increasing the Transient Occupancy Tax from 10% to 12%. C. UNFINISHED BUSINESS C-1 RESOLUTION NO. 05-10 ADOPTING THE MID -YEAR BUDGET ADJUSTMENTS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 05-10. D. NEW BUSINESS D-1 REQUEST FROM THE MORRO BAY 4T", INC. FOR A FEE WAIVER FOR ® THE 4Tx OF JULY EVENT; (RECREATION & PARKS) RECOMMENDATION: Discuss and direct staff accordingly. 3 D-2 DISCUSSION REGARDING ALTERNATIVE BIOSOLIDS MANAGEMENT OPTIONS; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-3 DISCUSSION REGARDING WATER RECLAMATION OPTIONS; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D4 DISCUSSION ON UNMET BIKE NEEDS FROM MORRO BAY CITIZENS BIKE COMMITTEE; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-5 DISCUSSION ON FORMING A CITY COUNCIL COMPENSATION COMMITTEE PURSUANT TO THE CITY COUNCIL POLICIES AND PROCEDURES; (ADMINISTRATION) RECOMMENDATION: Review Section 2.6 of the City Council Policies and Procedures and provide direction to staff. D-6 DISCUSSION OF CITY OF MORRO BAY INTERNAL COMMITTEE APPOINTMENTS; (ADMINISTRATION) ® RECOMMENDATION: Consider the current appointments to the JPA Sub - Committee, Employee Grievance Sub -Committee, and Mobilehome Conversion Sub -Committee. E. DECLARATION OF FUTURE AGENDA ITEMS F. 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. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. 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—JANUARY 25, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Grantham 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: Lease Site 86/86W; 801 Embarcadero Negotiating Parties: City and Caldwell Negotiations: Lease Terms and Conditions. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:40 p.m. MOTION: Councilmember Winholtz moved the meeting be adjourned. The motion was seconded by Councilmember Borchard and unanimously carved. (5-0) The meeting adjourned at 5:40 p.m. u ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2010 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Rick Algert Bruce Ambo John DeRohan Bruce Keogh Rob Livick Mike Pond Susan Slayton Joe Woods City Manager City Attorney City Clerk Harbor Director Public Services Director Police Chief Wastewater Treatment Plant Manager City Engineer Fire Chief Administrative Services Director Recreation & Parks Director ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS 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 Mary Stallard, Morro Bay Pups, thanked those who helped in getting the Jody Giannini Family Dog Park built and ready for opening. She also encouraged membership to Mono Bay Pups. Steve Eckes, Mono Bay Pups, acknowledged the contributions of the City in completing the Jody Giannini Family Dog Park. He said the essential construction of the park is complete with the help of volunteers Sam Ayoob and Steve Marketello. Mr. Eckes invited the public to come visit the dog park and encouraged membership to Mono Bay Pups in maintaining the park. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2010 Robert Davis stated the Morro Bay Citizens Bike Committee is working with the City Engineer in updating the City's Bike Plan. He said the Committee is going to meet on February 3rd to review the plan that is to include the list of Unmet Bike Needs, and he invited the public to attend. Mr. Davis stated the Committee is pleased the North Main Street Overlay and Bike Lanes Project are proceeding with federal funding under the American Recovery and Reinvestment Act, as well as the potential for funding through San Luis Obispo Council of Governments for another Main Street project. Joey Racano, California Ocean Outfall Group, voiced his support for Item D-3 (Discussion Regarding Water Reclamation Options). He expressed concern with the removal of trees in the City and fireworks being displayed in a State Marine Reserve. Claire Raymond and Gracie Wilkins, Cal Poly journalism students, requested permission to take photos at the meeting. Virginia Hiramatsu announced a Community Kick -Off for the 2010 Relay for Life would be held on February 9`s at the Embarcadero Grill, with the 2010 Relay for Life of Morro Bay to be held on August 7° and 8`s. She provided contact information and requested ® community participation in this important event. Peter Candela, Chamber of Commerce, addressed Item D-1 (Request from the Morro Bay Inc. for a Fee Waiver for the 4's of July Event) and stated the Chamber of Commerce is working in partnership with the Morro Bay 4th, Inc. by giving support and requested all agencies show their support in this community event. Nancy Guthrie expressed support for Item A-3 (Adoption of Ordinance No. 553 Adding Section 3.08.105 to the Morro Bay Municipal Code Establishing a Local Business Preference Program). Bill Peirce stated he is a member of the Morro Bay 4 b, Inc. and said this is a community event and needs the support of the community. He said there has always been a barge in an acceptable location in the estuary that has received approval from all necessary agencies to have fireworks in the bay. Pauline Stansbury, Morro Bay Seniors, stated she would be glad to be involved in the Fundraiser Follies. She announced the benefits of the Morro Bay Seniors, and noted volunteers are needed. E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2010 Grant Crowl stated City zoning codes have been violated by City staff on two projects that had been heard by the Planning Commission on January 18a'. He requested the City Council revisit the Planning Commission meeting and reviews these items because precedence has been set and there is no reason for a person to file for a building permit on an existing project after that ruling. John Barta addressed Item D-3 stating the City has State Water rights of over 3,000 acre feet per year, although the City only requires 1,300 acre feet; and during drought years, deliveries are proportionately reduced such as this year. He said San Luis Obispo County has 20,000 acre feet of unused but reserved allocations that the City can purchase in time of need at an increased cost over a normal allocation. Mr. Barta stated water reclamation is expensive and may interfere with the deadline of upgrading the City's wastewater treatment plant, which would also be costly. He also noted the desalination plant capacity could provide an adequate amount of water in the worst of circumstances. Jack McCurdy addressed Item D-3 and said the present water supply is out of date, and water reclamation is the future of the City's water supply. He said the proposed wastewater reclamation project would conduct an in-depth study of all potential water ® supply sources that will make sufficient water available during water shortages created by seasonal water cycles, facility maintenance, drought, disasters and pollution events. Mr. McCurdy stated it seems clear to do other than water reclamation would be a disservice to this community. Peter Risley addressed Item D-3 and expressed concern with the City's local water supply, which is dependent on the City's local aquifers that are now contaminated by nitrates. He said this is a threat to the community and proactive actions should be taken to -solve this problem. He said State Water is not dependable and the City should consider what it will do without it; and, only by preserving the aquifers of Morro and Chorro Valleys will the City have local water supplies to protect its future. He said the use of reclaimed water is part of this discussion and.durnping this water into the ocean is a great waste. Bill Fritch expressed opposition to Item D-I stating as a taxpayer and with the present budget situation, he does not believe the City can afford to waive these fees. He also noted fireworks are not good for the environment. Joan Solu expressed support for Item D-1, which helps the City's economy by bringing in tourists who stay in the hotels and eat at the restaurants. Michael Texeira addressed the importance of promoting disaster planning. 17 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2010 Channel Channing, Morro Bay 4'} Inc., announced their contact information for anyone interested in volunteering at the 4's of July festivities. Richard Sadowski addressed Item D-3 stating both the City aquifers are polluted, and said water reclamation should be a necessity that the City should be pursuing. Robert Staller addressed Item D-3 and explained why water reclamation is important to those farming in the Morro and Chorro Valleys due to the water conditions in the these areas. Peter Beaman expressed opposition to Item B-2 (Discussion and Direction on Placing a Measure on the June 2010 General Election Ballot Approving an Increase in the City's Transient Occupancy Tax) stating due to the economy, motel owners have had to cut their room rates. He expressed support for Item D-1 because the 4t° of July festivities are good for tourism. Mayor Peters closed the hearing for public comment. ® Mayor Peters called for a break at 7:14 p.m.; the meeting resumed at 7:24 p.m. E A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 RESOLUTION NO. 03-10 ADOPTING THE CITY OF MORRO BAY INVESTMENT POLICY; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 03-10. A-2 APPROVAL OF THE 2010/11 BUDGET CALENDAR, (ADMINISTRATIVE SERVICES) RECOMMENDATION: Approve the schedule of events leading to adoption of the biennial budget. A-3 ADOPTION OF ORDINANCE NO. 553 ADDING SECTION 3.08.105 TO THE MORRO BAY MUNICIPAL CODE ESTABLISHING A LOCAL BUSINESS PREFERENCE PROGRAM; (CITY ATTORNEY) 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2010 A4 RESOLUTION IN SUPPORT OF THE LOCAL TAXPAYER PUBLIC SAFETY AND TRANSPORTATION PROTECTION ACT OF 2010; (CITY COUNCIL) RECOMMENDATION: Adopt Resolution No. 04-10. A-5 PROPOSED CHANGES TO THE STORMWATER MANAGEMENT PLAN; (PUBLIC SERVICES) RECOMMENDATION: Review and approve the proposed changes to the Stormwater Management Plan for submittal to the Regional Water Quality Control Board on January 29, 2010. Councilmember Winholtz pulled Items A-1 and A-5 from the Consent Calendar; Councilmember Smukler pulled Item A-2. MOTION: Councilmember Borchard moved the City Council approve Items A-3 and A4 of the Consent Calendar. The motion was seconded by is Councilmember Winholtz and carried unanimously. (5-0) A-1 RESOLUTION NO. 03-10 ADOPTING THE CITY OF MORRO BAY INVESTMENT POLICY; (ADMINISTRATIVE SERVICES) Councilmember Winholtz requested an amendment to page 3 of the Investment Policy under "Delegation of Authority", removing the Mayor and Account Clerk III as positions and corresponding City personnel delegated the power to invest the funds of the City. MOTION: Councilmember Winholtz 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 APPROVAL OF THE 2010/11 BUDGET CALENDAR; (ADMINISTRATIVE SERVICES) Councilmember Smukler suggested adding a preliminary budget workshop in February before staff begins to work on their budget proposals. Mayor Peters suggested scheduling the preliminary budget workshop along with the goal - setting workshop. City Manager Andrea Lueker suggested returning this item to the next Council meeting to ® schedule these workshops; Council concurred. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2010 No further action was taken on this item. A-5 PROPOSED CHANGES TO THE STORMWATER MANAGEMENT PLAN; (PUBLIC SERVICES) Councilmember Winholtz requested staff clarification on various sections of the Stormwater Management Plan; City Engineer Rob Livick responded to her questions. 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) B. PUBLIC HEARINGS REPORTS & APPEARANCES B-1 FIRE STATION 53 CONSTRUCTION AND FUNDING UPDATE; (FIRE) Fire Chief Mike Pond stated on March 9, 2009, the City Council authorized the City ® Manager to secure funding through a loan with the USDA in an amount not to exceed $3,000,000. Additionally, the City Council allocated $168,000 of Measure Q funds annually to service the USDA loan. The award of the ARRA funded FEMA Fire Station Construction Grant has reduced the City's potential share to $1,497,350 for this project. The current USDA loan rate is 4% and the debt service will be $86,310 annually for a thirty year loan. Staff will be re -submitting corrected construction plans for building and planning review around February 11, 2010. Once approved and final funding is received from FEMA and the USDA bid documents will be finalized and the project sent out for bid. FEMA has advised that their review of environmental and historical documents and release of funds should be complete in the next 90 days. A public hearing and a renewed architectural agreement are the last tasks required before the USDA can complete the City's loan. He stated this public hearing and a renewed architectural agreement will satisfy the final requirements for the USDA loan, and the City can expect the release of federal grant funds in the next 90 days. Chief Pond recommended the City Council accept this report and open a public hearing to receive public comment. No action is required by Council to continue moving forward with this project. Frank Seiple, Architect, showed a rendering of the fire station and received questions and comments from the City Council. Mayor Peters opened the hearing for public comment. Keith Taylor, Friend of the Morro Bay Fire Department, stated this project will not be ® complete in 2010, otherwise the plans are perfect. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JANUARY 25, 2010 Mayor Peters closed the public comment hearing. Councilmember Smukler stated he would prefer to invest the money further into sustainability features such as a solar system instead of obtaining LEED certification. He said that along the lines of amenities in the living quarters, it is important to invest in good quality, but not in excess with the bells and whistles. Councilmember Grantham expressed support for the proposed plans, and noted it needs to be built to code because it is a hardened facility governed by the state and federal government. Councilmember Winholtz stated she has concern with the height of the proposed structure and said it should not go over the 30-foot height limit. She said this structure should fit into the area and it is larger than she expected. Mayor Peters expressed support for the design and the financing of this project ® Councilmember Borchard addressed the use of the storage facility on the site, and requested staff be conscientious of the cost of the items placed in and the use of this facility. No action was taken on this item. B-2 DISCUSSION AND DIRECTION ON PLACING A MEASURE ON THE JUNE 2010 GENERAL ELECTION BALLOT APPROVING AN INCREASE IN THE CITY'S TRANSIENT OCCUPANCY TAX; (CITY ATTORNEY) City Attorney Robert Schultz stated at the June 23, 2009 meeting, City Council directed staff to draft enabling documents to submit a tax measure increasing the City's transient occupancy tax (TOT) on the June 8, 2010 ballot for voter approval as part of the general municipal election. At the December 25, 2009 Council meeting, Staff presented draft documents for review and comment. After receiving public comment, the City Council continued the hearing to this meeting. TOT at a rate of 10% per rental is currently collected by all entities renting lodging for 30 days or less. Those taxes are remitted monthly to the City, and that revenue stream accounts for approximately 18% of the General Fund's revenues before transfers in. TOT is the second largest revenue source to the City (property tax is the largest.) In order to increase TOT, the City must hold an election at the same time that an election is held where members of the City Council will be elected. In addition, pursuant to State law, any increase of the tax rate must first be approved by a 2/3 vote (4 members) of the City Council and then a majority vote of the 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2010 City's voters who vote at a regular Municipal Election. Mr. Schultz requested direction from Council regarding placing a measure on the June 8, 2010 ballot increasing the TOT from 10% to 12%. The deadline for submittal of such a measure to the County is February 24, 2010. Mayor Peters opened the hearing for public comment. The following people expressed opposition to placing a measure on the June 2010 General Election Ballot approving an increase in the City's Transient Occupancy Tax (TOT): Peter Candela, John Solu, Michele Jacquez, Jeff Eckles, Don Doubledee, Tom Laurie, and Joan Solu. Mayor Peters closed the public comment hearing. Councilmember Grantham stated he does not support taking 1% from the Tourism Business Improvement District (BID), and he does support a 1% TOT increase. Is Councilmember Winholtz stated she supports increasing the TOT however she would prefer placing it on the November ballot. She said she would like to consider reevaluating the structure of the Community Promotions Committee and the BID. Councilmember Smukler stated he is not in support of an increase to the TOT and would like to follow the production of the BID and reconsider an increase at another time. Councilmember Borchard stated knowing how the industry is suffering she is not in support of an increase to the TOT at this time. Mayor Peters stated she supports a 1% increase to the TOT in the fall, or that it would not take effect until a certain date. MOTION: Mayor Peters moved the City Council direct staff to return to Council for reconsideration placing a measure on the November 2010 General Election Ballot approving a 1% increase to the City's Transient Occupancy Tax. The motion was seconded by Councilmember Winholtz and carried with Councilmember Borchard and Councilmember Smukler voting no. (3-2) u ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2010 C. C-1 RESOLUTION NO. 05-10 ADOPTING THE MID -YEAR BUDGET ADJUSTMENTS; (ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton presented the 2009/10 mid -year performance reports, along with the requested budget amendments. She recommended the City Council approve Resolution No. 05-10 adopting the mid -year budget amendments. The City Council asked questions relating to the mid -year budget adjustments. MOTION: Mayor Peters moved the City Council continue the adoption of the mid- year budget adjustments to the February 8, 2010 City Council meeting. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) is D. NEW BUSINESS D-1 REQUEST FROM THE MORRO BAY 4TH, INC. FOR A FEE WAIVER FOR THE 4TH OF JULY EVENT; (ADMINISTRATION) City Manager Andrea Lueker stated Morro Bay 4's Inc. has approached the City to request a fee waiver for costs associated with the 4tn of July Public Area Use Permit. The group has also asked the City include a flyer requesting donations to be inserted with the monthly water bill sent to water users. Ms. Lueker recommended the City Council review the staff report regarding the fee waiver and mailing request and provide staff further direction. Councilmember Grantham stated he would like some thought to the change of location of the fireworks display to the high school. He said a fee waiver should either be given to all non -profits or none at all; it has to be fair. Councilmember Grantham stated Morro Bay 4t° should have to pay for using the City water bills to include their flyers. Councilmember Winholtz stated the high school was a good location for past fireworks shows. She suggested using Council contingency funds to help fund this event. Councilmember Smukler stated he would like to consider a one-time fee waiver for this non-profit group. He said he was contacted by some North Morro Bay residents about locating the fireworks display at the high school because it is more centralized rather than ® driving down to the Embarcadero. 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2010 Mayor Peters stated the City has supported other events in the past, and this is a free event for the community and tourists. Councilmember Borchard stated she would be in support of local non-profit groups that were promoting City events. She said there are other non-profit groups that have been given fee waivers, and the Chamber has placed flyers in the City water bills. Councilmember Smukler agreed with Councilmember Borchard's comments. The City Council agreed to donate their contingency funds to assist with costs for the 4`s of July festivities. MOTION: Councilmember Borchard moved the City Council approve the placement of 4`s of July inserts in City water bills at the expense of Morro Bay 41s, Inc. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) ® Councilmember Borchard stated she would donate $500 of her contingency funds towards the 4's of July festivities. Mayor Peters called for a break at 9:25 p.m.; the meeting resumed at 9:30 p.m. D-2 DISCUSSION REGARDING ALTERNATIVE BIOSOLIDS MANAGEMENT OPTIONS; (CITY COUNCIL) MOTION: Mayor Peters moved the City Council continue the discussion regarding Alternative Biosolids Management to the February 8, 2010 City Council meeting. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) D-3 DISCUSSION REGARDING WATER RECLAMATION OPTIONS; (CITY COUNCIL) Councilmember Smukler stated in the 1990's, because of drought and groundwater pollution, the City of Morro Bay became a leader in water conservation efforts. The City is currently dealing with severe water supply challenges that again require a retooling of our water supply portfolio. As stated in the City's Urban Water Management Plan (2005): "Overall, upgrading the Morro Bay/Cayucos Wastewater Treatment Plant or constructing a new plant will probably be required for a viable recycled water project. Given the other water supply options available, it does not appear that recycled water provides a cost ® effective project alternative at this time. In the future if the wastewater treatment plant ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2010 must upgrade to tertiary treatment in order to meet NPDES permit requirements, recycled water projects should then be considered." Currently, the City is developing a plan for a new Wastewater Treatment Plant while simultaneously experiencing severe impacts to the "other water supply options available" including the State Water Project and groundwater basins (Morro and Chorro). Councilmember Smukler reviewed the potential benefits of a wastewater reclamation project with an urban and/or agricultural reuse or groundwater recharge element and recommendations, and requested Council consider the information and.direct staff accordingly. Councilmember Grantham stated the City should be realistic and fiscally responsible in its approach. He suggested the City stay on track by going on tertiary treatment with a goal to go with water reclamation. Councilmember Winholtz expressed her support for water reclamation due to the potential for lack of water, and the City needs a long-term plan because it's not going to get any better. Councilmember Borchard stated cost is an important consideration, and she cannot pass the cost of water reclamation on to the taxpayers at this time. Mayor Peters agreed with Councilmember Borchard and noted the City does not have the staff to work on water reclamation at this time. The majority of Council was to not change the direction of the City at this time. MOTION: Councilmember Smukler moved the City Council send this item to the Morro Bay/Cayucos Sanitary District Joint Powers Authority to discuss the concept of approaching the California Coastal Commission for a concept plan approval for water reclamation. The motion was seconded by Councilmember Winholtz and failed with Councilmember Borchard, Councilmember Grantham and Mayor Peters voting no. (2-3) D4 DISCUSSION ON UNMET BIKE NEEDS FROM MORRO BAY CITIZENS BIKE COMMITTEE; (CITY COUNCIL) Councilmember Winholtz stated while not an official City advisory body, the Morro Bay Citizens Bike Committee has an informal relationship with the City through the City's Recreation and Parks Commission. Annually, it submits recommendations to the County Council of Governments regarding Unmet Needs. On November 9, 2009, the City Council received an oral report from the Morro Bay Citizens Bike Committee ® representative regarding this year's recommendations. For 2010, with the intent to make 12 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2010 the community safer, two new Unmet Bike Needs are recommended: a) address the bicycle turning movements at the intersection of Main Street and Quintana Road, and add it to the City Bikeways Plan; and b) construct a Class I bike trail on the west side of Main Street above the sidewalk from the Quintana/Main intersection to Surf Street. For 2010, to make the City safer and more attractive for cyclists, the following are recommended for inclusion in the City's Bikeways Plan: a) short- and long-term bicycle parking shall be provided whenever a new structure is erected or enlarged or whenever a new use is established which requires a total of 10 more vehicle parking spaces; and b) the City shall perform an annual review of bicycle facilities to identify and repair deficiencies, particularly striping. Councilmember Winholtz recommended: 1) consider directing the City's SLOCOG representative to communicate the Council's support for the Unmet Bike Needs at the February 3, 2010 meeting; and 2) consider directing the City's Planning Commission to review and make recommendation back to City Council this spring regarding the recommended additions to the City's Bikeways Plan. MOTION: Councilmember Winholtz moved the City Council direct the City's SLOCOG representative to communicate the Council's support for the City Committee's Unmet Bike Needs at the next San Luis Obispo ® Council of Governments meeting; and, direct staff to include in the City's Bikeway Plan: a) address the bicycle turning movements at the intersection of Main Street and Quintana Road, b) short- and long-term bicycle parking shall be provided whenever a new structure is erected or enlarged or whenever a new use is established which requires a total of 10 more vehicle parking spaces, and c) the City shall perform an annual review of bicycle facilities to identify and repair deficiencies, particularly striping, paving, signage, parking, racks, etc. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) C D-5 DISCUSSION ON FORMING A CITY COUNCIL COMPENSATION COMMITTEE PURSUANT TO THE CITY COUNCIL POLICIES AND PROCEDURES; (ADMINISTRATION) City Manager Andrea Lueker stated Section 2.6 of the City Council Policies and Procedures indicate that a Council Compensation Committee should be formed by January 3 1 � of each even -numbered year. The policy sections specify the makeup of the Committee and call for the Committee to study Council compensation and bring back recommendations to the City Council. Ms. Lueker recommended the City Council review the Policy and provides direction to staff. 13 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2010 MOTION: Mayor Peters moved the City Council waive the option to form a City Council Compensation Committee pursuant to City Council Policies and Procedures. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) D-6 DISCUSSION OF CITY OF MORRO BAY INTERNAL COMMITTEE APPOINTMENTS; (ADMINISTRATION) City Manager Andrea Lueker stated the City Council serve on the following City of Morro Bay Internal Committees: Council Sub -Committee on Employee Grievances, JPA Sub -Committee, and Mobilehome Conversion Sub -Committee. This item was agendized for a review of those appointments and to make any changes as deemed by the City Council. Councilmember Smukler and Councilmember Winholtz both expressed their interest in serving on the JPA Sub -Committee in place of Mayor Peters and Councilmember Grantham. MOTION: Mayor Peters moved the City Council approve to maintain the Internal Committee Appointments. The motion was seconded by Councilmember Grantham and carried with Councilmember Smukler and Councilmember Winholtz voting no. (3-2) E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Smukler requested to agendize further discussions on water reclamation; Council concurred — (Councilmember Smukler will prepare the report.) ADJOURNMENT The meeting adjourned at 11:04 p.m. Recorded by: Bridgett Kes ing City Clerk r 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 11, 2010 CLOSED SESSION — JANUARY 11, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA ® CS-1 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES. Discussions regarding Personnel Issues related to the reorganization of City Maintenance. CS-2 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property. Property: Lease Site 86/86W; 801 Embarcadero Negotiating Parties: City and Caldwell Negotiations: Lease Terms and Conditions. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. ® PUBLIC SESSION — JANUARY 11, 2010 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. 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 DECEM3ER 14, 2009 CITY COUNCIL MEETING; (ADMIMSTRATION) RECOMMENDATION: Approve as submitted. A-2 CITY COUNCIL ANNUAL REGULAR MEETING SCHEDULE FOR 2010; ® (ADMINISTRATION) RECOMMENDATION: Receive for information. A-3 REVIEW AND APPROVE RESOLUTION NO. 01-10 AUTHORIZING THE APPLICATION FOR PROPOSITION 84, STATEWIDE PARK DEVELOPMENT AND COMMUNITY REVITALIZATION PROGRAM OF 2008 AND NATURE EDUCATION FACILITIES GRANT PROGRAM FUNDS FOR THE TEEN CENTER MASTER PLAN; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 01-10. A-4 RESOLUTION DECREASING THE PARKING IN -LIEU FEES FOR 600 MORRO BAY BOULEVARD TO $4,000 PER SPACE; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 02-10. A-5 AUTHORIZATION TO FILL THE ADMINISTRATIVEMOUSING PROGRAMS COORDINATOR POSITION; (PUBLIC SERVICES) RECOMMENDATION: Authorize Staff to fill the Administrative/Housing Programs Coordinator vacancy. is B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 ADOPTION OF ORDINANCE NO. 553 ADDING SECTION 3.08.105 TO THE MORRO BAY MUNICIPAL CODE ESTABLISHING A LOCAL BUSINESS PREFERENCE PROGRAM; (CITY ATTORNEY) RECOMMENDATION: Approve first reading and introduction of Ordinance No. 553 by number and title only. B-2 2009 ANNUAL WATER REPORT; (PUBLIC SERVICES) RECOMMENDATION: Review the 2009 Annual Water Report, and direct staff accordingly. B-3 TERMINATION OF AGREEMENT BETWEEN ROANDOAK AND THE CITY OF MORRO BAY; (CITY ATTORNEY) RECOMMENDATION: Direct Staff to terminate the Agreement between Roandoak and the City of Morro Bay. C. UNFINISHED BUSINESS —NONE. f D. NEW BUSINESS ® D-I DISCUSSION ON WATER QUALITY TESTING IN MORRO BAY'S DRINKING WATER; (PUBLIC SERVICES) RECOMMENDATION: Review the report and attachments, and direct Staff accordingly. D-2 REVIEW OF 2009 TROLLEY SEASON PERFORMANCE; (PUBLIC SERVICES) RECOMMENDATION: Receive report for information. D-3 EVALUATION FOR CONSISTENCY WITH CITY COUNCIL POLICIES AND PROCEDURES REGARDING A LETTER SENT TO THE CALIFORNIA COASTAL COMMISSION DATED DECEMBER 8, 2009; (CITY COUNCIL) RECOMMENDATION: Review City Council Policies and Procedures regarding letters being sent by the Mayor and/or Council Members. D-4 APPOINTMENT OF VICE -MAYOR TO SERVE A ONE-YEAR TERM; (ADMINISTRATION) ® RECOMMENDATION: Based on City Council Policies and Procedures, appoint Councilmember Smukler to serve a one-year term as Vice -Mayor effective January 2010. E. DECLARATION OF FUTURE AGENDA ITEMS F. 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. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. 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 11, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Grantham 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. qP Discussions regarding Personnel Issues related to the reorganization of City Maintenance. CS-2 GOVERNMENT CODE SECTION 54956.8• REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property. • Property: Lease Site 86/86W; 801 Embarcadero Negotiating Parties: City and Caldwell Negotiations: Lease Terms and Conditions. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:50 p.m. MOTION: Councilmember Borchard moved the meeting be adjourned. The motion was seconded by Councilmember Smukler and unanimously carried. (5-0) The meeting adjourned at 5:50 p.m. I ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 11, 2010 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney Jamie Boucher Deputy City Clerk Bruce Ambo Public Services Director Mike Pond Fire Chief John DeRohan Police Chief Joe Woods Recreation & Parks Director Kathleen Wold Senior Planner Dylan Wade Utilities/Capital Projects Manager Janeen Burlingame Management Analyst ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT David Nelson expressed concern that Dynegy is not abiding by their lease agreement by demolishing the tank farm at the power plant. He also encouraged green wastewater treatment plants. Jack McCurdy stated there are articles in the website w-ww.slocoastiournal.com that address the questions of what happened to the new Morro Bay Power Plant that was planned to replace the existing plant. Mike Burton, Central Coast Little League President, announced the upcoming registration dates for Little League as well as their need for volunteers to help with umpiring, team parents, snack bar and coaching. He also expressed his thanks to Del Mar Elementary School for their generous donation that will fund scholarships for local kids ® who can't afford the Little League registration fees. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 11, 2010 Mayor Peters closed the hearing for public comment. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE DECEMBER 14, 2009 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 CITY COUNCIL ANNUAL REGULAR MEETING SCHEDULE FOR 2010; (ADMINISTRATION) RECOMMENDATION: Receive for information. isAPPLICATION REVIEW AND APPROVE RESOLUTION NO. 01-10 AUTHORIZING THE APPLICATION FOR PROPOSITION 84, STATEWIDE PARK DEVELOPMENT AND COMMUNITY REVITALIZATION PROGRAM OF 2008 AND NATURE EDUCATION FACILITIES GRANT PROGRAM FUNDS FOR THE TEEN CENTER MASTER PLAN; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 01-10. A4 RESOLUTION DECREASING THE PARKING IN -LIEU FEES FOR 600 MORRO BAY BOULEVARD TO $4,000 PER SPACE; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 02-10. A-5 AUTHORIZATION TO FILL THE ADMINISTRATIVE/HOUSING PROGRAMS COORDINATOR POSITION; (PUBLIC SERVICES) RECOMMENDATION: Authorize Staff to fill the Administrative/Housing Programs Coordinator vacancy. Mayor Peters pulled Item A-1 from the Consent Calendar; Councilmember Borchard ® pulled Items A-2 and A-3; Councilmember Winholtz pulled Item A-4; and Councilmember Smukler pulled Item A-5. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 11, 2010 A -I APPROVAL OF MINUTES FOR THE DECEMBER 14, 2009 CITY COUNCIL MEETING; (ADMINISTRATION) Mayor Peters requested the following amendments to the minutes of December 14, 2009: • page 8 — add "...forward to the Public Works Advisory Board for discussion on Dial -a -Ride services, future funding, and how to increase ridership." • page 16 — (Councilmember Winholtz requested following amendments): Councilmember Winholtz stated she is not willing to reduce the fee by to $2,000 at this time. Councilmember Winholtz stated that is outrageously low; she would approve reduce the amount by $2,000 per space. MOTION: Councilmember Winholtz moved the City Council approve the minutes of December 14, 2009 as amended by Council. The motion was seconded by Councilmember Grantham and carved unanimously. (5-0) A-2 CITY COUNCIL ANNUAL REGULAR MEETING SCHEDULE FOR 2010; is (ADMINISTRATION) Councilmember Borchard recommended amending the joint City Council/Planning Commission meeting dates to March 15t' and November 15`s; Council concurred. MOTION: Councilmember Borchard moved the City Council approve Item A-2 of the Consent Calendar as amended. The motion was seconded by Councilmember Winholtz and carved unanimously. (5-0) A-3 REVIEW AND APPROVE RESOLUTION NO. 01-10 AUTHORIZING THE APPLICATION FOR PROPOSITION 84, STATEWIDE PARK DEVELOPMENT AND COMMUNITY REVITALIZATION PROGRAM OF 2008 AND NATURE EDUCATION FACILITIES GRANT PROGRAM FUNDS FOR THE TEEN CENTER MASTER PLAN; (RECREATION & PARKS) Councilmember Borchard requested staff clarification on the timeline and grant funding for the Teen Center Master Plan. Recreation & Parks Director Joe Woods responded the City is seeking 100% funding for this project, and the project will not start without full funding. MOTION: Councilmember Borchard moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember ® Winholtz and carried unanimously. (5-0) 1d ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 11, 2010 A4 RESOLUTION DECREASING THE PARKING IN -LIEU FEES FOR 600 MORRO BAY BOULEVARD TO $4,000 PER SPACE; (CITY ATTORNEY) Councilmember Winholtz requested to remove the words "in the Downtown Area for five years' at the end of the NOW, THEREFORE, BE IT RESOLVED paragraph. She also said she would be voting in opposition of this item because it is in the spirit of a gift of public funds, and the City will be out over $I20,000 by approving this. Councilmember Smukler agreed stating his concern is the City does not have the ability to control how these funds are reinvested. MOTION: Mayor Peters moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Councilmember Borchard and carved with Councilmember Smukler and Councilmember Winholtz voting no. (3-2) A-5 AUTHORIZATION TO FILL THE ADMINISTRATIVE/HOUSING PROGRAMS COORDINATOR POSITION; (PUBLIC SERVICES) ® Councilmember Smukler expressed concern with new hires since the City has not yet identified a two -tiered system relating to benefits. He requested clarification on the duties that go along with this position. Public Services Director Bruce Ambo reviewed the duties and responsibilities of the Administrative/Housing Programs Coordinator position. MOTION: Councilmember Smukler moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) Mayor Peters called for a break at 6:50 p.m.; the meeting resumed at 7:00 p.m. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 ADOPTION OF ORDINANCE NO. 553 ADDING SECTION 3.08.105 TO THE MORRO BAY MUNICIPAL CODE ESTABLISHING A LOCAL BUSINESS PREFERENCE PROGRAM; (CITY ATTORNEY) City Attorney Robert Schultz stated the City Council has expressed interest in implementing a local vendor program as a way to help stimulate the local economy and support the formation/retention of local jobs. On November 9, 2009, the City Council reviewed a draft Ordinance that would provide further clarification and importance on ® giving competitive preference to local industries and businesses doing business with the City. The City Council suggested minor changes which have been incorporated into 5 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 11, 2010 Ordinance 553. Mr. Schultz recommended the City Council accept public comment and then move for introduction and first reading of Ordinance No. 553, by number and title only, adding Morro Bay Municipal Code Section 3.08.105 entitled "Local Business Preference Program." Mayor Peters opened the hearing for public comment; there being no public comment, Mayor Peters closed the public comment hearing. Council discussed amendments to the Ordinance. MOTION: Councilmember Winholtz moved the City Council amend Ordnance No. 553, page 1, (C):..."the City Council or the purchasing agency nifty shall give a preference ... "; and, added to (II) "Local business" means a vendor or contractor who has paid its local business tax to the City of Morro Bay at least 6 months prior to bid or proposal opening date; does business in the Morro Bay community by providing goods, services, or construction; and maintains a physical business address located within 5 miles of the jurisdictional limits of the City of Morro Bay and performs business on a day-to-day basis. Post office boxes shall not be used for the purpose of ® establishing said physical address". The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) City Manager Andrea Lueker read Ordinance No. 553 by number and title only. B-2 2009 ANNUAL WATER REPORT; (PUBLIC SERVICES) Senior Planner Kathleen Wold stated this report summarizes building activity for 2009, and provides a recommendation on the maximum number of water equivalency units (WEU) which should be granted for 2010. Due to recent changes in state water deliveries, staff also recommends the Water Supply Portfolio be reviewed as part of the 2010 Urban Water Management Plan update. This review will address both the decrease in the amount of state water being delivered and the reliability of those deliveries. Documentation substantiates that there are sufficient water resources to grant the recommendations while ensuring compliance with all requirements within Ordinance 266. In 2010, the City is facing a short term water challenge due to greatly reduced State Water Project deliveries coupled with the nitrate contamination of both the Morro and Chorro groundwater basins. The timing of these events has caused a short term impact to the City's ability to supply water. As the projects designed to alleviate these issues are implemented these impacts will be ameliorated. Ms. Wold recommended the City Council grant the following allocations for 2010 and key subsequent actions on water supply issues to the forthcoming Urban Water Management Plan update: 1) allocate the ® mix of residential units at 60 percent single-family and 40 percent multi -family units; and C] ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 11, 2010 authorize the corresponding water equivalency allocation for residential uses at 50 WEU; 2) process residential allocation limits on a first -come first -serve basis, based on the priorities contained in the current General Plan and Local Coastal Plan policies; 3) authorize allocation of 130% of the residential WEU (65 WEUs) to commercial and industrial projects, within the priority categories consistent with the current Local Coastal Plan and General Plan policies; and 4) review the Water Supply Portfolio in light of recent decreases in the reliability of the State Water Project water deliveries as part of the 2010 Urban Water Management Plan update. Mayor Peters opened the hearing for public comment; there were no public comments, and Mayor Peters closed the public comment hearing. Mayor Peters thanked the community for the reported savings in water last year. Councilmember Smukler stated he is uncomfortable with the assumption that this is a short- term issue, especially given the challenges with the local water supply portfolio. MOTION: Councilmember Borchard moved the City Council grant the following allocations for 2010 and key subsequent actions on water supply issues to the forthcoming Urban Water Management Plan update: 1) allocate the mix of residential units at 60 percent single-family and 40 percent multi- family units; and authorize the corresponding water equivalency allocation for residential uses at 50 WEU; 2) process residential allocation limits on a first -come first -serve basis, based on the priorities contained in the current General Plan and Local Coastal Plan policies; 3) authorize allocation of 1301/o of the residential WEU (65 WEUs) to commercial and industrial projects, within the priority categories consistent with the current Local Coastal Plan and General Plan policies; and 4) review the Water Supply Portfolio in light of recent decreases in the reliability of the State Water Project water deliveries as part of the 2010 Urban Water Management Plan update. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) Mayor Peters called for a break at 8:15 p.m.; the meeting resumed at 8:25 p.m. B-3 TERMINATION OF AGREEMENT BETWEEN ROANDOAK AND THE CITY OF MORRO BAY; (CITY ATTORNEY) City Attorney Robert Schultz stated the City entered into an agreement with Roandoak of God in 1982. Because of the degradation to the water quality and the changes in regulations, the City no longer has the ability to both maintain the pumping of wells in ® the Chorro Groundwater Basin as well as provide water that meets all State and Federal 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 11, 2010 standards to customers in the basin. In order to both provide water to the customers outside the City limits and maintain the Chorro Groundwater resource for the benefit of the customers within the City limits, major modifications to the City's infrastructure would be required. These modifications would be needed to effectively deal with the nitrate contamination while also providing disinfection of the occasional bacteriological contamination events that impact the Chorro Groundwater Basin. In December of 2008, the California Department of Public Health inactivated all of the wells in the Ashurst well field including Well No. 9A. Until a method of providing treatment for nitrate removal or blending is in place, the City is unable to use this well as a supply source. Therefore, since Well No. 9A can no longer serve the purpose of municipal water supply without major modifications to the City's infrastructure, Staff is comfortable relinquishing control of that well at this time. The degradation of water quality in the Chorro Valley, coupled with the connection of water services to the pumping line, and further complicated by more stringent regulations, will continue to strain the City's water resources until resolved. Mr. Schultz recommended the City Council begin the process by terminating the agreement with Roandoak; Staff will then negotiate the terms of removal of service with the impacted property owners, in accordance with any existing agreements, and for the benefit of the residents of the City of Morro Bay. Mayor Peters opened the hearing for public comment. Came Burton stated there are property owners that did not know about the lease agreement when they purchased their property because it was not disclosed at the time of purchase. She addressed the contaminated water and how those in Chorro Valley are going to be provided clean water. Ms. Burton also stated this has caused property values to go down. David Nelson stated he read the lease and termination is justifiable by the City. He said the City cannot afford to send water outside of the City. Mike Burton stated when he bought his home five years ago he assumed he had water by receiving a City water bill. He said there is no way hydraulically to pump water from the Well 9-A to the homes in Chorro Valley. Mr. Burton requested the City be considerate of their situation. Millie Benson reviewed the history of her family's properties on Canet Road, and noted Chorro Valley needs clean water not only for the families out there now but for the future development of Morro Bay. ® Mayor Peters closed the public comment hearing. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 11, 2010 Mayor Peters stated the last thing the City wants is to have people without water. She said what has happened is a problem has arisen and the City is trying to resolve it and hopefully it is going to be fair for everyone. Councilmember Smukler stated it seems clear that water service would not be discontinued until there is a positive agreement between the community and the Chorro Valley residents. He said Council should move ahead with this tonight and be kept informed as far as how the negotiations are going. Councilmember Smukler stated there are some interesting water supply options that could help address the issues without tapping into the ground water or bringing in water from an outside source. Councilmember Borchard stated part of the problem is the City has no sphere of influence since the County took that away. The City does not have the ability to have oversight out in the Chorro Valley in regards to usage and their unpermitted septic tanks; those are County issues. She said neighboring residents requested Roandoak's water usage with the City be stopped because they thought it was being used in a manner that. was not fair. Councilmember Borchard stated she feels the City has come to a point ® where they can end the agreement with Roandoak. Councilmember Grantham stated he would be voting in favor of terminating the agreement with Roandoak and encouraged fair negotiations on the part of the City. Councilmember Winholtz noted the date of the original agreement is 1982 and at that time there was ample water in the Chorro Valley and the City needed water and an exchange was made, which was the honorable thing to do at that time. She said now because of the contamination, the City should continue to honor the fact of being able to progress because of the Chorro Valley water. Councilmember Winholtz noted although the City does not have a sphere of influence, the City population can go up to 12,000 which will require more water. She said the City or County will need to address cleaning up the Chorro Basin. She recommended amending the motion that service will continue. Mayor Peters stated she would like to maintain a regular water customer relationship until another agreement is reached. MOTION: Councilmember Winholtz moved the City Council direct staff to terminate the Agreement between Roandoak and the City of Morro Bay pursuant to Paragraph 9 of the Agreement which states it will terminate in 120 days; in addition, there will be no discontinuation of water service until a new agreement is reached. The motion was seconded by Councilmember ® Borchard and carried unanimously. (5-0) 9 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 11, 2010 El C. UNFINISHED BUSINESS —NONE. D. NEW BUSINESS D-1 DISCUSSION ON WATER QUALITY TESTING IN MORRO BAY'S DRINKING WATER; (PUBLIC SERVICES) Utilities/Capital Projects Manager Dylan Wade stated the City of Morro Bay is regulated as a Large Water System since it serves a population of more than 10,000 people. As such, the City is subject to the requirements of the Safe Drinking Water Act (SDWA). Under the SDWA the US EPA sets national standards for drinking water based on sound science to protect against health risks, considering available technology and costs. These National Primary Drinking Water Regulations (Attached) set enforceable maximum contaminant levels for particular contaminants in drinking water or required ways to treat water to remove contaminants. Each standard also includes requirements for water systems to test for contaminants in the water to make sure standards are achieved. The City conducts a routine monitoring program testing the quality of both the source waters and the treated waters that enter into the distribution system. The water is tested for the more than 100 contaminants for which both primary and secondary drinking water standards have been established. Other testing is performed by the City as needed to ensure the integrity of the treatment process being used, or in the case of the recent nitrate studies, as an indicator of source water characteristics. Mr. Wade recommended the City Council review the report and accompanying attachments, and provides direction to staff as it deems necessary. Councilmember Grantham addressed SB966 regarding ways of disposing medications, and the numerous pharmaceuticals found in water sources and expressed the importance of testing our water sources. Councilmember Smukler stated there are also a significant amount of contaminants found in our water sources that are available off the shelf including fertilizers, herbicides, and pesticides. He said there is a program that Miners Hardware Store is participating in called "Our Water Our World", which directs people to alternative options for these different applications, and he encouraged people to search out this program. Councilmember Borchard stated as the City's Integrated Waste Management Authority representative, the disposal of pharmaceuticals is an on -going issue that has to be reviewed at the state level with many mandates due to the disposal of controlled substances. Vol ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 11, 2010 Councilmember Winholtz stated what the community can do is be more preventative in terms of use and disposal of pharmaceuticals and pesticides, herbicides and fertilizers. The City Council received the report for information; no further action was taken on this item. D-2 REVIEW OF 2009 TROLLEY SEASON PERFORMANCE; (PUBLIC SERVICES) Management Analyst Janeen Burlingame stated the City's Trolley service is a seasonal fixed route transit system serving the general public by linking the Downtown Business District, Waterfront, state parks in the north and south ends of the community through the use of three trolley routes operating within the City limits. In addition, the service provides a connection to the regional transit system at City Park. While the number of operating days did not change between the 2008 and 2009 seasons; the end of day service hours on Friday and Saturday were reduced to 7 p.m., and the fare structure was modified to include a different fare for children and adults. Ms. Burlingame recommended the City Council receive and file the 2009 trolley season performance report. ® Councilmember Winholtz stated she would like to cut one more hour at the end of the day to end at 6 p.m. Mayor Peters stated she would prefer to maintain the 7:00 p.m. time frame until the end of the fiscal year. Councilmember Smukler stated he would like the Public Works Advisory Board to discuss the trolley ridership when they consider the Dial -a -Ride concept as Council continues to get further into the budget process. The City Council received this report for information; no further action was taken on this item. D-3 EVALUATION FOR CONSISTENCY WITH CITY COUNCIL POLICIES AND PROCEDURES REGARDING A LETTER SENT TO THE CALIFORNIA COASTAL COMMISSION DATED DECEMBER 8, 2009; (CITY COUNCIL) Councilmember Winholtz stated on Friday, December 11, 2009, the California Coastal Commission (CCC) ruled in favor of a Coastal Development Permit for 801 and 833 Embarcadero, commonly called the Conference Center, a project previously voted on by City Council. That week, Council Members received in their mailboxes a hard copy of a letter dated December 8, 2009 signed by the Mayor as mayor on City letterhead. She said ® it was her contention that this letter does not follow the Policies and Procedures outlined 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 11, 2010 in Resolution 50-07, in that the letter is not clear who it represents. Councilmember Winholtz requested the City Council discuss and consider sending the following statement to the Mayor: the following statement should be sent to the Mayor in the form of a letter: "While you have been an effective advocate for the City of Morro Bay, you have chosen more than once not to follow adopted correspondence procedures. Consider this a letter of (co unseUadmonishment/reprimand) that such action is unacceptable and depreciates the integrity of the Council as a whole. We believe that you can easily correct this situation and assume you are willing to do so." The City Council discussed the issue and decided to move forward; bring back the entire City Council Policies and Procedures Manual with an amendment that letters from the Mayor and City Council begin with the first paragraph stating who is being represented in the letter, and the signing of documents. No further action was taken on this item. D-4 APPOINTMENT OF VICE -MAYOR TO SERVE A ONE-YEAR TERM; (ADMINISTRATION) ® Mayor Peters stated based on Policies and Procedures, for appointment as Vice Mayor, a Council Member must be on the Council at least one year. Of those who have been on the Council for at least one year, the Council Member who has not yet held the position shall be appointed Vice Mayor. If there are two Council Members who have not yet held the position, the Council Member receiving the highest number of votes in the most recent election shall be appointed Vice Mayor. Both Councilmember Borchard and Councilmember Smukler have served on the Council for one year; Councilmember Smukler received the highest number of votes in the November 2008 election. MOTION: Mayor Peters moved the City Council appoint Councilmember Smukler as Vice -Mayor to serve a one-year term. The motion was seconded by Councilmember Grantham. Councilmember Smukler requested that Councilmember Borchard be appointed Vice - Mayor this year, and he would take the role as Vice -Mayor next year. Mayor Peters withdrew her motion; Councilmember Grantham withdrew his second to the motion. Councilmember Winholtz stated although it is the exception to the Policies and Procedures, since it is being done publicly, she will support it. 12 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 11, 2010 MOTION: Mayor Peters moved the City Council appoint Councilmember Borchard as Vice -Mayor to serve a one-year term. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested to agendize a discussion on the City Council Internal Sub -Committee Appointments; Council concurred. Councilmember Winholtz requested the discussion on the cell tower issue be scheduled to a date certain; Council concurred. Councilmember Grantham requested to agendize a discussion on testing water for pharmaceuticals; Council concurred. ADJOURNMENT The meeting adjourned at 9:48 p.m. Recorded by: \ e Boucher Deputy City Clerk 13 City of Morro Bay Morro Bay, CA 93442 (805) 772-6200 NOTICE OF SPECIAL CLOSED SESSION MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Thursday, January 7, 2010 at 8:00 a.m. to be held in the City Hall Conference Room located at 595 Harbor Street, Morro Bay, California. The City Council will be considering the following item: CS-1 GOVERNMENT CODE SECTION 54956.9(a): CONFERENCE WITH LEGAL COUNSEL REGARDING PENDING LITIGATION • SWRCB and Jones v. City of Morro Bay DATED: January 4, 2010 . a,-t " A,4�� - 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. 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 26, 2010 CLOSED SESSION — APRIL 26, 2010 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: 699 Embarcadero; Lease Site 75-77/75W-77W Negotiating Parties: City of Morro Bay and Morro Bay Marina, Inc. Negotiations: Lease Terms and Conditions. CS-2 GOVERNMENT CODE SECTION 54957, PERSONNEL ISSUES. Discussions regarding Personnel Issues related to the reorganization of City Public Services Department. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. E ® PUBLIC SESSION — APRIL 26, 2010 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. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. ® A-1 ARBOR DAY PROCLAMATION; (RECREATION & PARKS) RECOMMENDATION: Adopt Proclamation. A-2 PROCLAMATION DECLARING BIKE MONTH; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-3 STATUS REPORT ON WATER USAGE FOR MARCH 2O10; (PUBLIC SERVICES) RECOMMENDATION: Review and file status report. A4 SECOND READING AND ADOPTION OF ORDINANCE NO. 555 TO AMEND THE MORRO BAY MUNICIPAL CODE, CHAPTER 10.44 TO INCLUDE A NEW SECTION 10.44.070 TO REGULATE MUNICIPAL PARKING LOTS AND ESTABLISH AUTHORITY TO CHARGE FEES FOR PARKING; (HARBOR) RECOMMENDATION: Adopt Ordinance No. 555 A-5 APPROVAL OF MINUTES OF THE APRIL 12, 2010 CITY COUNCIL ® MEETING; (ADMINISTRATION) RECOMMENDATION: Adopt minutes as submitted. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 CONSIDERATION OF REPLACING MORRO BAY DIAL -A -RIDE SERVICE WITH A FLEX FIXED ROUTE SERVICE; (PUBLIC SERVICES) RECOMMENDATION: Conduct a public hearing on the proposed replacement of Morro Bay Dial -a -Ride service with a flex fixed route service, as outlined in the staff report, to be effective FY 2010/2011 and approve said changes. B-2 CONSIDERATION OF MONTH -TO -MONTH CONTRACT EXTENSION WITH MV TRANSPORTATION AND AUTHORIZATION TO INITIATE BID PROCESS FOR TRANSIT SERVICES OPERATION AND MANAGEMENT; (PUBLIC SERVICES) RECOMMENDATION: Conceptually approved a month to month extension of the current Morro Bay Dial -a -Ride and Trolley Operations and Management Agreement with MV Transportation pending final approval of compensation rates at the May 10, 2010 meeting, and authorize staff to initiate a bid is process for transit services operation and management. B-3 RECOMMENDATION ON STAFFING LEVELS FOR THE FISCAL YEAR ® 2010/11 BUDGET; (ADMINISTRATION) RECOMMENDATION: Review the staff report regarding staffing levels for the 2010/11 Fiscal Year Budget and provide staff any further direction in preparation for the I" Budget Hearing on May 19, 2010. B4 INTRODUCTION AND FIRST READING OF ORDINANCE NO. 556 TO AMEND THE MORRO BAY MUNICIPAL CODE TITLE 17 ADDING CHAPTER 17.27 ESTABLISHING REGULATIONS AND PROCEDURES ENTITLED "ANTENNAS AND WIRELESS TELECOMMUNICATIONS FACILITIES; (PUBLIC SERVICES) RECOMMENDATION: Approve Ordinance No. 556 for introduction and first reading by number and title only. B-5 INTRODUCTION AND FIRST READING OF ORDINANCE NO. 557 AMENDING MORRO BAY MUNICIPAL CODE CHAPTER 2.16.080 REGARDING THE DUTIES OF THE CITY ATTORNEY; (CITY ATTORNEY) RECOMMENDATION: Approve Ordinance No. 557 for introduction and first reading by number and title only. ® C. UNFINISHED BUSINESS - NONE D. NEW BUSINESS D-1 PRESENTATION BY THE COMMUNITY PROMOTIONS COMMITTEE REGARDING THEIR GOALS AND BUDGETARY REQUEST FOR 2010- 2011 AND ADOPTION OF AMENDMENTS TO THE BYLAWS FOR THE COMMUNITY PROMOTIONS COMMITTEE; (CITY ATTORNEY) RECOMMENDATION: Review the presentation by the Community Promotions Committee regarding their goals and budgetary request for 2010/11 and approve the amendments to the Community Promotions Committee bylaws as presented. D-2 APPROVAL OF THE SERVICE RETIREMENT INCENTIVE PROGRAM FOR THE FISCAL YEAR 2010/11 BUDGET; (ADMINISTRATION) RECOMMENDATION: Approve the Service Retirement Incentive Program as presented. D-3 DISCUSSION ON WHETHER TO WITHDRAW THE LOCAL COASTAL ® PLAN FROM THE CA COASTAL COMMISSION; (CITY COUNCIL) ® RECOMMENDATION: Discuss the benefits and deterrents of gaining CA Coastal Commission approval for changes to the City's General Plan by withdrawing the current document and sending amendments instead. E. DECLARATION OF FUTURE AGENDA ITEMS F. 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. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. 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 MINUTES - MORRO BAY CITY COUNCIL ® CLOSED SESSION — APRIL 26, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Borchard 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: 699 Embarcadero; Lease Site 75-77/75W-77W Negotiating Parties: City of Morro Bay and Moro Bay Marina, Inc. Negotiations: Lease Terns and Conditions. CS-2 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES. Discussions regarding Personnel Issues related to the reorganization of City Public Services Department. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5: 55p.m. MOTION: Councilmember Winholtz moved the meeting be adjourned. The motion was seconded by Councilmember Grantham and unanimously carried. (5- 0) The meeting adjourned at 5:55 p.m. 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 26, 2010 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Robert Schultz Jamie Boucher Rick Algert Rob Livick Tim Olivas Mike Pond Susan Slayton Joe Woods Janeen Burlingame Kathleen Wold City Manager City Attorney Deputy City Clerk Harbor Director Acting Public Services Director Police Chief Fire Chief Administrative Services Director Recreation & Parks Director Management Analyst Senior Planner ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS 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. 1 PUBLIC COMMENT Claire Grantham introduced members of the board of the Friends of the Morro Bay Police Department, who.presented Police Chief Tim Olivas with a Cross pen set and plaque which had the Morro Bay police shield and was inscribed to Police Chief Tim Olivas from the Friends of the Morro Bay Police Department. Cathy Novak announced that the Morro Bay Business & Community Forum, Lion's Club, and the Morro Bay Chamber of Commerce are hosting a Mayoral and Council Candidates Forum on Tuesday, May 4, at the Vets Hall, to be moderated by Stuart McElhinney. She said there will be a "meet and greet the candidates" from 5:00 p.m. to 5:30 p.m. The Forum will start at 530 p.m. AGP Video will tape the Forum and re- broadcast it on Channel 20. 2 D'Onna Kennedy stated she is a candidate for City Council. She said she wanted to ® commend City staff, as they have been very helpful to her. She said she was very appreciative of both Dylan Wade and Bruce Keogh who explained everything very thoroughly to her. She thanked everyone for all their help. She mentioned with regard to the City budget, there are important priorities that compete with each other for proper funding: public safety, education, public health, and transportation. She said the City has a strong volunteer base of citizens willing to step up and fulfill these needs, and the City should take advantage of this and give those individuals recognition. Ken Vesterfelt said the Morro Bay Car Show starts on Thursday of this week and that 500 cars have registered for the event. He said Days Inn and Estero Inn are sponsors for the Car Show. He stated the Car Show is a non -political venue and hopes it remains that way. Next, Ken said he received a call from the Planning Department saying he must take down the feather flags that said "For Sale' in front of his business due to an ordinance. He complied, although he said that after looking at the ordinance and seeing some loopholes, he actually could have those flags up. He went on to state there are real estate for sale flag signs at Market and Pacific. He wondered why those signs could remain up and he has to take his down. He then said 60% to 70% of the political signs around the city are on City property. He said people should be allowed to put up the advertising flags/signs, especially in light of the tough economic times. explaining that forcing people to take down these signs is hurting businesses. Nancy Johnson stated she is a candidate for City Council because she cares about Morro ® Bay. She said she is conscientious, accountable, responsible, has experience, and is sensible. She said her experience comes from having sat on the Planning Commission and other City boards and commissions, and she is familiar with the issues in the City. She said she has a good understanding of the structure of municipal government and the responsibilities of those who serve. She talked about the duties of the City Manager, who is appointed by the City Council. She said she feels the City Manager is doing a very good job. She concluded by thanking the City staff who put up the big plaque on Chuck's bench across from the power plant. She said it is beautiful. Joan Solu talked about D-1, regarding tourism. She said there is a public hearing later tonight regarding tourism and promotions. She said she is speaking in her official capacity as the chair of T-BID. She said the hoteliers have asked her to step forward and represent them tonight. She asked that when the Council looks at the Community Promotions Board that they recognize the important job and the important work they are doing in conjunction with the T-BID, the Chamber of Commerce, and the Visitor Center, and that they recognize the business they are bringing into the city. She requested the City Council not cut funding for Community Promotions, keep them at the current level. She stated the funding is already being cut by one third by the reduction of the T-BID funds. Bill Yates, candidate for mayor, said the City should not be hassling Ken Vesterfelt. He said this is not business friendly at all. He said there is a resolution on the books that we are a business -friendly city and he said he sees things that are definitely not business isfriendly. He spoke of another man who applied for a permit to put some booths up and 3 was hassled by staff, he said getting a permit should be easy. He said the City needs to have a "get it done" attitude instead of a "no' attitude. He feels a change needs to be 40 made soon. He concluded by talking about pink slips. He said this should be the City Managers job, and the Council should not have a public hearing regarding pink slips. Ani Lyn suggested a compromise, that the tall waving advertising signs/flags be allowed during down economic times. However, she said that A -frame signs in the backs of trucks not close to their business should be discouraged. She suggested those signs be closer to the business they are advertising. Mayor Peters closed public comment. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 ARBOR DAY PROCLAMATION; (RECREATION & PARKS) RECOMMENDATION: Adopt Proclamation. A-2 PROCLAMATION DECLARING BIKE MONTH; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-3 STATUS REPORT ON WATER USAGE FOR MARCH 2O10; (PUBLIC SERVICES) RECOMMENDATION: Review and file status report. A4 SECOND READING AND ADOPTION OF ORDINANCE NO. 555 TO AMEND THE MORRO BAY MUNICIPAL CODE, CHAPTER 10.44 TO INCLUDE A NEW SECTION 10.44.070 TO REGULATE MUNICIPAL PARKING LOTS AND ESTABLISH AUTHORITY TO CHARGE FEES FOR PARKING; (HARBOR) RECOMMENDATION: Adopt Ordinance No. 555 A-5 APPROVAL OF MINUTES OF THE APRIL 12, 2010 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Adopt minutes as submitted. Mayor Peters pulled both A-1 and A-2 in order to make presentations. ® A-1 ARBOR DAY PROCLAMATION; (RECREATION & PARKS) In A-2 PROCLAMATION DECLARING BIKE MONTH; (ADMINISTRATION) ® MOTION: Councilmember Borchard moved to approve A-1 and A-2. The motion was seconded by Councilmember Winholtz and carried unanimously. (5- 0) Councilmember Winholtz pulled Items A-3 and Item A-4 from the Consent Calendar; A-3 STATUS REPORT ON WATER USAGE FOR MARCH 2O10; (PUBLIC SERVICES) Dylan Wade responded to Councilmember Winholtz's questions with the following information: regarding Morro and Chorro groundwater, he said during the month of March they used water from both Morro and Chorro without treatment and blended it with water from the brackish process to fill the tanks. Not all the Morro water received treatment through the brackish system. The brackish system is used to pull the nitrates down, which lets them blend with their other sources. Regarding how March compares with previous months, this was more than in the month of February since February was a very wet month. The usage in February was one of the lowest on record. However, the use is 25% lower than last year. This has to do with conservation measures and with the weather pattern. Regarding why no State water was used during the month of March, they delayed using State water as long as possible to maximize using the local resources. Regarding what deliveries will be received for the rest of the year, deliveries have been increased 20% on the State Water Project. He said even at 20%, we will get more water than we normally would at a higher delivery percentage. Therefore, for the remainder of this year, we will receive more water than we would have under a normal delivery year, with the exception of November and December. November is traditionally a shutdown, and December we don't receive all of our allocation. Regarding flow rates in Chorro Creek, flow rates during the month of March did exceed the 1.4. which authorizes them to extract from that resource. Councilmember Smukler requested any updates on the State water shutdown regarding dates. Councilmember Winholtz went on to ask about residents' complaints about the taste of the water, will the ammonia, when it is in effect, change the flavor of the water. Dylan responded by saying there really shouldn't be any change in the taste of the water. Dylan also suggested if anyone has any complaints about the water to contact them at 772-6261, and they will go out to investigate the problem. MOTION: Councilmember Winholtz moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) A-4 SECOND READING AND ADOPTION OF ORDINANCE NO. 555 TO AMEND THE MORRO BAY MUNICIPAL CODE, CHAPTER 10.44 TO ® INCLUDE A NEW SECTION 10.44.070 TO REGULATE MUNICIPAL 5 PARKING LOTS AND ESTABLISH AUTHORITY TO CHARGE FEES FOR ® PARKING; (HARBOR) MOTION: Councilmember Winholtz moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) A-5 APPROVAL OF MINUTES OF THE APRIL 12, 2010 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Adopt minutes as submitted. MOTION: Councilmember Grantham moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) B. PUBLIC HEARINGS REPORTS & APPEARANCES B-1 CONSIDERATION OF REPLACING MORRO BAY DIAL -A -RIDE SERVICE WITH A FLEX FIXED ROUTE SERVICE Management Analyst Janeen Burlingame stated that we must look at what transit funding will be allocated from the State to determine whether or not existing MBDAR services can be provided beyond the current fiscal year. and if not, what type of transit services can be provided with the available funding. In March, the City Council held a budget goals setting workshop and stated that City reserves would not be used to balance the budget. At this time there are no general funds available to allocate to transit without having to take it from other general fund activities or services. Transit funding from the State has been cut repeatedly over the past three fiscal years; with a current fiscal year MBDAR operating budget of $37%154; $204,000 anticipated TDA for FY 2010/2011, and $38,000 in estimated fares, MBDAR would be short more than $137,000 to operate at existing service levels. As such, the current MBDAR service levels cannot be maintained for FY 2010/2011. In March, staff presented for consideration to the PWAB and City Council proposed changes to transit service to replace the MBDAR service with a fixed route service as there was no viable option available to retain some type of local dial -a -ride type service that did not result in a funding shortfall to operate or achieve a farebox ratio well below the State required 10% in order to continue receiving funding. The City Council did not take action at its March 22 meeting regarding the proposed transit service changes and directed staff to come back to the Council in April after investigating alternative dial -a -ride program delivery models, including public private partnerships and volunteer based concepts, such as the Cambria Community Bus. Staff evaluated additional options for local transit service to consider implementing July 1, 2010: reduce MBDAR service hours and restrict to one vehicle only; or, establish year round flex fixed route service; or, establish community volunteer bus service. With the "reduction of MBDAR service hours and restrict service to one vehicle" option, approximately 75% of current passengers would not be provided local transit service. In ® addition, the farebox ratio is estimated to be 6.6%, well below the Transportation Z Development Act required 10%. A year round flex fixed route is a hybrid transit system combining fixed route service with limited dial -a -ride service. The flex route operates ® with a fixed route structure (specified transit stops) but can also "flex" (or "deviate') off route to pick up/drop off passengers who have called the day before to schedule a trip that is within a half mile of the fixed route. While the flex fixed route service provides for less dial -a -ride type service than is currently provided, it does provide limited dial -a -ride type service for those senior or disabled individuals who might not be eligible to become ADA certified to use Runabout paratransit service and would address the Council's concern to provide those individuals with some dial -a -ride type service until they can become ADA certified. With this option, there would be no funding shortage anticipated after fare revenue is factored in. In addition, the flex fixed route farebox ratio would be estimated at 1J.6%, well above the TDA required 10%. This option is viable and is recommended for implementation July 1, 2010. As far as establishing a community volunteer bus system, during the March 22 City Council meeting, there was discussion of looking into the community bus service that is offered in Cambria as a way to provide dial -a -ride type trips to seniors. The concept of a volunteer community bus service as structured how the service is operated in Cambria, is appealing as it is a way to provide specialized dial -a -ride type service at a much reduced operating cost because of the almost exclusively volunteer framework as the only operating costs are the half time dispatcher, insurance, fuel, maintenance, utilities and promotion. In addition, the service could be a good complement to the proposed changes to replace the MBDAR service with a flex fixed route service as it could provide for additional transit service opportunities for senior and disabled individuals in addition to the flex fixed route, Call - A -Ride flex trip, Ride -On Senior Shuttle and Runabout paratransit. In conclusion, due to the recession and changes in the State budget regarding transit funding, the existing MBDAR service levels cannot be maintained in FY 2010/2011 and after. Staff recommends funding a pilot volunteer community bus project in FY 2010/2011 to determine the long term viability of such service to provide an additional transit service option for senior and disabled individuals. Mayor Peters opened.up the hearing for public comment. Nancy Mason said the Dial -A -Ride is a most beautiful thing and has heard others say the same thing. She said it is a saving grace for her, as a senior, as she does not have a car anymore. She knows others who are in the same position as she is. She hopes the same service can be continued. Barry Brannon mentioned that he understands that the budget for the "bus system' is $J0,000 a month and he feels this is a perfect place for outsourcing this service. Barbara Door said she supports Nancy Mason in trying to keep the Dial -A -Ride program. She commended staff for coming up with the flex fixed route system. She hoped it would go the three-quarter mile and that students could be added. She had three questions. She wondered about the dollar amount, the annual cost for the flex fixed route and the anticipated dollar amount used for the feasibilities. She also asked what the City Is is going to receive in State funds that are anticipated for the flex fixed route plan. 7 Nancy Johnson had a couple of procedural questions about the report. She asked if there ® was help for people who do not have access to a computer or do not know how to get to a website. She talked about liability insurance which covers the volunteers for Meals on Wheels. She was disappointed that there was nothing in the report about looking at a new vendor where money could possibly be saved. Pauline Stansbury, president of Morro Bay Seniors, said she probably has a resource for volunteers to help with driving. Mayor Peters closed the public comment. Janeen answered questions from public comment. She said the cost for the flex fixed route is approximately $255,000. The TDA funds to be received is approximately $104,000. The STA has not been allocated -yet. Councilmember Borchard said it looks like there are plenty of pick-up points on the schedule of the fixed route to pick up students if that is needed occasionally. She mentioned that the high cost of running the service is not a luxury the City can afford right now. She is fine with some of the aspects of the flex route but not with the cost. Councilmember Smukler feels grateful thatstaff came up with the flex fixed route program. He is interested in the pilot program. He said that with feedback from the community, adjustments can be made. As far as students riding, he does not feel that is a ® necessity at this time. He would like to see staff take a closer look at the half mile versus three-quarter mile flex to see if there really a better coverage opportunity and make sure we're not omitting any important components of the current ridership who depend on the service and not be able to use it in the half -mile option. Councilmember Grantham said he feels giving the funding to the flex route is the best option. Councilmember Winholtz would like to see the two hour call -in period expanded to at least three hours. She feels it is too limited. She feels it is a financial opportunity not to include students, so she is in favor of including students. She feels the whole town should be covered. Mayor Peters said she would like to include students so they are not cut out completely. She is also in favor of the three-quarter mile coverage. MOTION: Mayor Peters moved to direct staff to establish a year-round, flex fixed route service with a three-quarter mile flex and to allow students at whatever time increment is appropriate. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) Discussion: Councilmember Borchard said she would like to track the use from 7:30am ® to 8:OOam and that it be specific so that it does not infringe on the regular ridership. She is not in favor of the flex route in the middle of the afternoon. She would like to see if it 1 can be tracked to see if it is being used in the afternoons. She said students can get home ® in the afternoons from a fixed stop. Council moved to discussion of the potential of a Community Volunteer Bus service. Mayor Peters explained this is involving working on a mutual aid service with the county trying to provide Dial -A -Ride and a flex fixed route. It is in the works now and probably would be available toward the end of the year to actually implement. She suggested waiting to see if it is actually going to work before putting any money towards this project. Councilmember Winholtz said she would like to have staff go ahead and look into it further with Cambria and learn everything about the program. Councilmember Smukler said they don't have to commit the funding tonight.but say that they are very interested in supporting the concept and have staff explore the option further. MOTION: Councilmember Smukler moved to direct staff to interact with potential community groups to explore the option of the development of the community volunteer bus program and come back to Council with a report and request for funding if needed. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) ® B-2 CONSIDERATION OF MONTH -TO -MONTH CONTRACT EXTENSION WITH MV TRANSPORTATION AND AUTHORIZATION TO INITIATE BID PROCESS FOR TRANSIT SERVICES OPERATION AND MANAGEMENT Management Analyst Janeen Burlingame stated the current operations and management agreement with MV Transportation expires at midnight on June 30, 2010. All terms and conditions are applicable during any extension period. With approval of the proposed transit service changes under agenda item 13-1 to replace demand response service with a year round flex fixed route service, negotiation of a new fixed monthly management fee is wan -anted as there are certain fixed costs associated with demand response service, such as dispatching, that are not associated with fixed route service. The month to month extension would allow for the transit service changes to take effect without having to go through the request for proposals (RFP) process at the same time as the service changes with the potential to transition to a new contractor who may have to hire and train new employees. In addition, the extension would give additional time needed to complete the transit efficiencies process, including bringing to Council an Estero Bay region transit service concept for consideration that ideally would address the State transit funding losses and provide sufficient local transit service to Morro Bay residents. Staff recommends the City Council conceptually approve a month to month extension of the current Morro Bay Dial -A -Ride and Trolley Operations and Management Agreement with MV Transportation pending the final approval of compensation rates at the May.10, 2010 meeting, and authorize staff to initiate a bid process for transit services operation and management. W Mayor Peters opened up the hearing for public comment. ® There was no public comment. Dave Nave, with MV Transportation, said when they are asked to do a month to month, it takes them to a position where they have to expense off things month to month instead of amortizing them on an annual basis. He said in his opinion, if they are looking at 2011, it would make sense to shoot for that, allow MV to have at least one year to do its job and to amortize its cost out, to save as much as they can for the city of Morro Bay. He suggested having the bid process done and ready to go by July 1. Councilmember Winholtz said she is willing to go with a year contract or even six months. She is comfortable with extending it and not making it month to month. Councilmember Grantham said he supports six months. Councilmember Smukler said he supports six month as well but feels it is important that they go out to bid and keep it competitive. Councilmember Borchard said she prefers 90 days but will support six months. She said she is not interested in waiting until next year. She said they have extended the contract for seven years without ever getting a price from somebody else or having them give a new bid. MOTION: Councilmember Winholtz moved that the City Council extend the MV contract for six months, which will end December 31, 2010. The motion was seconded by Councilmember Borchard and carved unanimously. (5- 0) B-3 RECOMMENDATION ON STAFFING LEVELS FOR THE FISCAL YEAR 2010/11 BUDGET City Manager Andrea Lueker stated that this was an informational item only, no action is necessary. The City of Morro Bay is faced with a budget deficit in excess of $500,000. Just a few weeks ago, staff and the City Council completed the third year of Goal Setting. In this Goal Setting session, the City Council reiterated the importance of a sustainable budget, in other words, a budget where the regular yearly revenues meet or exceed the regular yearly expenditures without the use of any reserve funds. Staff then prepared estimated revenue and expenditure sheets for the Administrative Services Director and City Manager review. After the initial review, the difference between revenues and expenditures was over $900,000. Over the course of the following weeks, over $400,000 of non -personnel based expenditures were cut. However, after this review, it became clear to staff that based on the declining revenues, the sluggish economy, and delayed fiscal recovery, layoffs would have to be considered in order for staff to provide a balanced budget to the City Council. The following is a list of allocated City positions slated for layoff and/or hour reductions: Office Assistant IV (R&P), Crime Prevention ® Coordinator (PD), Accountant (Admin Svcs), Building Official (PS), Administrative 10 Technician to %2 time (Fire), Permit Technician to'/a time (PS), and eliminate the Housing ® Programs Coordinator position while establishing an Administrative Technician (PS). There were a variety of part-time hourly positions that were affected as well. Following the first Budget Workshop, and when a set number of layoffs are known, staff will be more able to provide to the City Council further impact issues, such as office closures during the lunch hour and/or additional hours, scheduling changes, and staff availability. While we know there will be impacts, it is difficult to fully determine those impacts prior to knowing the final staffing numbers. Staff recommends Council receive this information and provide staff with any further direction. Mayor Peters opened up the hearing for public comment. There was no public comment. This item is informational only, no action was necessary. B4 INTRODUCTION AND FIRST READING OF ORDINANCE NO. 556 TO AMEND THE MORRO BAY MUNICIPAL CODE TITLE 17 ADDING CHAPTER 17.27 ESTABLISHING REGULATIONS AND PROCEDURES ENTITLED "ANTENNAS AND WIRELESS TELECOMMUNICATIONS FACILITIES Kathleen Wold stated that back in 2005 the City Council approved new regulations for antennas and wireless telecommunications as part of the comprehensive Zoning Ordinance Update. To date the Zoning Ordinance Update has not been certified by the California Coastal Commission therefore city staff must refer to the old regulations when processing new applications for wireless facilities. Recently city staff processed two new applications for wireless facilities under the old requirements. Subsequent to processing these applications City Council gave direction to staff to separate the wireless telecommunication facilities portion of the Update and bring it forward as a separate ordinance for review and approval. Staff brought a draft ordinance forward for Council review on March 22, 1010, minor changes were made to the regulations contained in the Updated Zoning Ordinance to make the regulations compatible with the existing Zoning Ordinance. On March 22, 2010 the Council reviewed the draft ordinance and directed staff to take into consideration comments made by both the council and the public and return with an ordinance for first reading and introduction. The revised ordinance was modified to include an exemption for city data/service facilities and eliminates sections deemed redundant. Staff recommends that city council approve Ordinance No. 556 for introduction and first reading only by number and title only. Mayor Peters opened up the hearing for public comment. There was no public comment Councilmember Winholtz was concerned about the size of the satellite dishes. 11 Councilmember Grantham said large satellite dishes have not been around for over 10 years. MOTION: Councilmember Winholtz moved to approve Ordinance 556 for introduction and first reading by number and title only. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) B-5 INTRODUCTION AND FIRST READING OF ORDINANCE NO. 557 AMENDING MORRO BAY MUNICIPAL CODE CHAPTER 2.16.080 REGARDING THE DUTIES OF THE CITY ATTORNEY City Attorney Rob Schultz was directed and is presenting Council with amended City Attorney duties to include a requirement that he/she attend all appeals before the Planning Commission. Staff recommends Council accept public comment and move for introduction and first reading of Ordinance No. 557 by number and title only. Mayor Peters opened up the hearing for public comment. There was no public comment. Councilmember Borchard said she finds it disappointing that we have to draft an amendment to the ordinance rather than just give direction. MOTION: Councilmember Winholtz moved approval of Ordinance 557 for introduction and first reading by title and number only. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) C. UNFINISHED BUSINESS - NONE D. NEW BUSINESS D-1 PRESENTATION BY THE COMMUNITY PROMOTIONS COMMITTEE REGARDING THEIR GOALS AND BUDGETARY REQUEST FOR 2010- 2011 AND ADOPTION OF AMENDMENTS TO THE BYLAWS FOR THE COMMUNITY PROMOTIONS COMMITTEE City Attorney Rob Schultz presented Council with amendments to the Community Promotions Committee's Bylaws. Also. members of the Community Promotions Committee gave a presentation regarding their goals, accomplishments and budgetary requests for the upcoming fiscal year. Presenting on behalf of the Community Promotions Committee were John Sorgenfrei, Peter Candela, Ed Krovitz and Susan Stewart. MOTION: Councilmember Winholtz moved to adopt the Community Promotions Committee's recommendations for their Bylaws with new wording on the middle of the first paragraph and that the second paragraph of ® qualifications reflect Mayor Peters' comments that she provided to 12 Councilmembers, and that it be returned for Consent Calendar. The motion was seconded by Mayor Peters and carried unanimously. (5-0) D-2 APPROVAL OF THE SERVICE RETIREMENT INCENTIVE PROGRAM FOR THE FISCAL YEAR 2010/11 BUDGET City Manager Andrea Lueker presented a Service Retirement Incentive Program to Council for their approval. During the budget process for the fiscal year 2009/10, the City Council offered a SRI program to employees that were eligible to retire. Staff is again, recommending a SRI Program in conjunction with the 2010/11 Budget process. The program can create both potential short-term and long-term savings for the City, and allows employee flexibility. A lump -sum incentive provides individuals with the flexibility to use the funds in any manner they choose. While the program last year provided a different incentive sum depending on the retirement date, staff is recommending a lump -sum of $10,000 be paid to those who commit to retirement by June 30, 2010. After formal adoption of the program by Council, applicants will be required to sign an agreement and release of claim against the City in exchange for the incentive. Staff recommends the City Council approve the Service Retirement Incentive (SRI) Program. Councilmember Borchard wanted to ensure that employees taking advantage of this incentive that were not full-time would receive $5,000 instead of the full $10,000. MOTION: Mayor Peters moved approval of the Service Retirement Incentive Program with the addition of a $5,000 benefit for the part-time positions. The motion was seconded by Councilmember Grantham and carved unanimously. (5-0) D-3 DISCUSSION ON WHETHER TO WITHDRAW THE LOCAL COASTAL PLAN FROM THE CA COASTAL COMMISSION Councilmember Winholtz requested Council's discussion on the withdrawal of the LCP from the CA Coastal Commission (CCC). Approximately 5 years ago the City sent its blended version of the General Plan and its Land Use Plan to the CCC for adoption. To date it has not been reviewed. She believes the inaction on the part of the CCC is for 2 basic reasons. First, the State budget crisis as well as mandatory furlough days has continued to reduce the number of staff at the CCC. Second, the proposed LCP is not really a blend but a different document from the existing LCP making comparison of the 2 documents cumbersome and difficult. She suggests withdrawing the submitted documents. Once that is done. Council and Staff can decide which items are of immediate concern, and then process them to be sent as amendment to deal with the rest of the document. Councilmember Winholtz recommends Council discuss the benefits and deterrents of gaining CA Coastal Commission approval for changes to the City's General Plan by withdrawing the current document and sending amendments instead. ® Councilmember Grantham said he does not want to change anything before meeting with the Coastal Commission face to face. Li Councilmember Borchard said she would like to wait to see if there can be some ® resolution before proceeding. Councilmember Smukler said he is willing to go with whatever direction is appropriate after the meeting with the Coastal Commission. Mayor Peters said the direction is that the group that goes up to meet with the Coastal Commission is to communicate our desire to get it done in the easiest way for them. Councilmember Winholtz said that includes withdrawing it. E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Grantham gave a reminder to have risk management and accumulation fund policy be brought up at the next meeting. Councilmember Smukler requested to agendize an update to City Council regarding Landmark Tree discussion; Council concurred. Councilmember Smukler requested to agendize an update on the Master Tree list; Council concurred. Councilmember Smukler requested to agendize discussing the concept of a promotional, ® educational awareness program to name a City Tree; Council concurred. Councilmember Smukler requested to agendize an extension of the discussion from the JPA meeting regarding criteria and measurements of success for the W WTP Council concurred. ADJOURNMENT The meeting adjourned at 10.38pm. Recorded by: Jamie Boucher Deputy City Clerk El 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 — APRIL 12, 2010 CLOSED SESSION — APRIL 12, 2010 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 I parcel. Property: Morro Bay Power Plant Outfall. Negotiating Parties: Dynegy and City of Morro Bay. Negotiations: Lease Terms. CS-2 GOVERNMENT CODE SECTION 54957, PERSONNEL ISSUES. Discussions regarding Personnel issues including the potential dismissal of five (5) public employees. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. C PUBLIC SESSION — APRIL 12, 2010 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. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 RESOLUTION NO. 18-10 COMMENDING POLICE VOLUNTEER KEN VESTERFELT; AND, RESOLUTION NO. 19-10 COMMENDING CORINNE BLACK FOR THEIR SWIFT ACTIONS TO HELP CATCH BANK FRAUD SUSPECTS; (POLICE) ® RECOMMENDATION: Adopt Resolution Nos. 18-10 and 19-10. A-2 APPROVAL OF THE MINUTES FOR THE REGULAR CITY COUNCIL ® MEETING OF MARCH 22, 2010; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-3 CONSIDERATION OF APPROVAL FOR A SUBLEASE ON A PORTION OF LEASE SITE 113W, LOCATED AT 1215 EMBARCADERO, BETWEEN VIRG'S FISH'N, INC., AND ALAN AND WENDY RACKOV, DOING BUSINESS AS LOST ISLE ADVENTURES; (HARBOR) RECOMMENDATION: Adopt Resolution No. 20-10. A4 AUTHORIZATION TO FILE NOTICE OF COMPLETION FOR THE HARBORWALK PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Accept the Harborwalk project as completed by Souza Construction, Inc. A-5 APPROVAL OF THE FINAL MAP FOR A ONE -LOT SUBDIVISION FOR CONDOMINIUM PURPOSES KNOWN AS TRACT 2978 AND LOCATED AT 600 MORRO BAY BOULEVARD; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 17-10. ® A-6 AN ORDINANCE OF THE CITY OF MORRO BAY, CALIFORNIA REPEALING ORDINANCE 551 AND ENACTING ORDINANCE 554 ADDING SECTION 10.76.035 TO CHAPTER 10.76 TO PROVIDE RULES AND REGULATIONS FOR THE MORRO BAY SKATE PARK; (RECREATION & PARKS) RECOMMENDATION: Adopt Ordinance No. 554. A-7 PROCLAMATION DECLARING APRIL 2010 AS "AUTISM AWARENESS MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 CONSIDERATION OF RESOLUTION NO. 21-10 AUTHORIZING ONE-TIME RENT CREDITS FOR CITY TENANTS TO REDUCE VACANCIES ON THE EMBARCADERO AND STIMULATE BUSINESS; (HARBOR) RECOMMENDATION: Adopt Resolution No. 21-10. 11 3 B-2 ORDINANCE NO. 555 TO AMEND MORRO BAY MUNICIPAL CODE CHAPTER 10.44 TO INCLUDE A NEW SECTION 10.44.070 TO REGULATE ® MUNICIPAL PARKING AND ESTABLISH AUTHORITY TO CHARGE FEES FOR PARKING — INTRODUCTION/ FIRST READING; (HARBOR) RECOMMENDATION: Approve Ordinance No. 555 for first reading and introduction by number and title only. B-3 RESOLUTION NO. 15-10 INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE CLOISTERS PARK AND OPEN SPACE LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 15-10. B4 RESOLUTION NO. 16-10 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. 16-10. C. UNFINISHED BUSINESS C-1 STATUS REPORT ON THE A -FRAME SIGN PROGRAM; (PUBLIC ® SERVICES) 11 RECOMMENDATION: Review the various options regarding A -frame sign regulations, and direct staff accordingly. D. NEW BUSINESS D-1 CONSIDERATION OF APPROVAL OF WATER AGREEMENT BETWEEN THE CITY OF MORRO BAY AND ROANDOAK OF GOD; (CITY ATTORNEY) RECOMMENDATION: This item has been pulled from the agenda. D-2 DISCUSSION ON THE GUIDELINES FOR PUBLIC AREA USE PERMITS; (RECREATION & PARKS) RECOMMENDATION: Direct staff to continue processing permits allowing use of public property using current guidelines, policies and ordinances; or, amend and direct staff accordingly. 19 D-3 REVIEW OF CURRENT PROCEDURES FOR AMPLIFIED SOUND DURING EVENTS IN PARKS; (RECREATION & PARKS) ® RECOMMENDATION: Direct staff to continue processing permits allowing use of public property using current guidelines, policies and ordinances; or, amend and direct staff accordingly. D4 REVIEW OF CO-SPONSORSHIP REQUEST FROM MORRO BAY GARDEN CLUB FOR DAHLIA DAZE EVENT; (RECREATION & PARKS) RECOMMENDATION: Discuss and direct staff accordingly. D-5 REQUEST FOR FACILITY FEE WAIVER FOR CANDIDATE FORUM; (MAYOR) RECOMMENDATION: Discuss and direct staff accordingly. D-6 ALLOCATION OF FUNDS GENERATED FROM THE FUNDRAISER FOLLIES; (MAYOR) RECOMMENDATION: This item was pulled from the agenda. D-7 CONSIDERATION OF MORRO BAY-GIBRALTAR SISTER CITY CORRESPONDENCE; (MAYOR) RECOMMENDATION: Discuss, approve and/or amend letter to Gibraltar regarding a Sister City Program. D-8 CONSIDERATION ON SENDING LETTER TO CONGRESSWOMAN LOIS CAPPS OPPOSING FARM FISH LEGISLATION; (CITY COUNCIL) RECOMMENDATION: This item was pulled from the agenda. E. DECLARATION OF FUTURE AGENDA ITEMS F. 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. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND M LL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS 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 ACCESSIBHITY TO THE MEETING. ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION —APRIL 12, 2010 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Borchard moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Smukler and unanimously carried. (5-0) Mayor Peters read the Closed Session Statement. is CS-1 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to I parcel. Property: Morro Bay Power Plant Outfall. Negotiating Parties: Dynegy and City of Morro Bay. Negotiations: Lease Terms. CS-2 GOVERNMENT CODE SECTION 54957, PERSONNEL ISSUES. Discussions regarding Personnel issues including the potential dismissal of five (5) public employees. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:50 p.m. MOTION: Councilmember Grantham moved the meeting be adjourned.. The motion was seconded by Councilmember Borchard and unanimously carried. (5-0) The meeting adjourned at 5:50 p.m. E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12, 2010 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Carla Borchard Councilmember Rick Grantham Councilmember Noah Smukler Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Rick Algert Rob Livick John DeRohan Tim Olivas Mike Pond Susan Slayton Joe Woods City Manager City Attorney City Clerk Harbor Director Acting Public Services Director Police Chief Police Commander Fire Chief Administrative Services Director Recreation & Parks Director ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS 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 Peter Candela, Chamber of Commerce, thanked Police Chief John Derohan for all his dedication and involvement with the Chamber, saying he will be missed. He said the police department's help at all the Chamber events certainly made the Chamber's job much easier. He said every year the Chamber holds the candidates forum, and this year the Chamber will partner with the Business Forum and the Lion's Club. To do this, they need the facility, and AGP will.videotape the forum. He said they are considering passing the cost of AGP to the candidates, but would appreciate it if the cost of the facility could be waived. He then reported on the BID and the fulfillment program. They have gone from 200-300 fulfillments every month to over 1,000 every month. In the past five months, they have exceeded 6,000 fulfillments. As a comparison, last year there were 5,000 fulfillments in a 12-month period. He said Morro Bay is actually doing more fulfillments than Pismo right now. ® Ed Krovitz announced that on Sunday, April 25, from 11:00 a.m. to 1:00 p.m.. at Tognazzini's Dockside Too there will be an opportunity to meet Rick Grantham, who is a candidate for Mayor of Morro Bay. There will be complimentary food and music at the event. This will be a chance to talk with Rick on any issues or concerns people have regarding the City. Marilyn Glesmann, representing the Morro Bay Garden Club, said in August they will be coordinating Dahlia Daze to celebrate Dahlias as Morro Bay's official flower. She gave a brief history of Dahlia Daze. She said this year the theme for Dahlia Daze is Dancing Dahlias and will feature Miss Karen's Dance Studio as dancing Dahlias, the local 4-H groups, Morro Bay Historical Society, and other area garden clubs and Dahlia growers. There will be a wine and cheese kickoff reception on Friday evening, August 27, from 4:00 p.m. to 6:00 p.m., at the Morro Bay Community Center. It will feature Kevin Larkin, the current president of the National Dahlia Growers Society. The program on Saturday will be from 1:00 p.m. to 4:00 p.m. There will be hundreds of varieties of Dahlias. Local artists' paintings will feature floral designs. Everyone is welcome to bring their cut Dahlias to display. There will be plants available for purchase. She requested the co-sponsor rate for this event. Nancy Johnson announced her candidacy for City Council. She said she is running for City Council because she cares about Morro Bay. She said she will research thoroughly before making any decisions. She will work to make sound policies that will help to ® improve our City. She said she will be accountable to every voter who elects her and not to any special interest groups. She will make herself available to listen to people about their needs and interests. She is holding a series of "meet and greet" events. She encouraged people who are interested in learning more about her to get people together and she will go to their home to meet with them. She gave her phone number, 772-3738. She said she is having a get-together on April 23 from 5:30 p.m. to 7:00 p.m. at the Pelican Grill. People can get two tacos and a beer for $10. There will be music and prizes. D'Onna Kennedy announced her candidacy for City Council. She will be having a "meet and greet" at Fred's Grill on Sunday, April 18, from 4:00 p.m. to 6:00 p.m., including refreshments. She said she is against marijuana dispensaries in Morro Bay. She said she knows the effects this can have on a City. She has information and reports on the consequences other states have had with marijuana dispensaries. She thanked the people who came out for her town hall meeting. Peter Beaman, a member of the Morro Bay 4 h Committee, said Morro Bay will be having fireworks on the Fourth of July. He said their fundraiser last Sunday was rained out. They have rescheduled it for next Sunday, April 18 at Tognazzini's Dockside Too from 1:00 p.m. to dark. Tickets people bought for the original event will be honored. He encouraged everyone to come out and help support fireworks in Morro Bay. Neil Farrell wanted to remind everyone about the Oyster Feed for the Morro Bay 4a' event. He said Morro Bay Beautiful had a young artist here from Bakersfield on 3 ® Saturday to do some more tile mosaics on two art cans on the Harbor Walk. However, due to the weather, he could not finish the cans and will probably return on Wednesday to complete the work. Neil said to be sure to check out the can across from the restrooms by the rock. He said it is gorgeous. Neil thanked everyone for the citywide yard sale over the weekend. He talked about all the people that came into town for the event. Bill Yates said he felt compelled to announce that he is a candidate for Mayor since everyone seemed to have done that tonight. He said he felt that by everyone talking about their candidacy is taking away from business time. He said he is running for Mayor because he is frustrated. He said he does not understand why the medical marijuana dispensary is the number one issue when there are so many other issues that he feels are more important. He said his reception will be April 25, from 5:00 p.m. to 7:00 p.m., at Windows on the Water. On May 5, Troy Leage is putting on a pig roast luau for Bill Yates and George Leage. In closing, he commended Chief Derohan. Ken Vesterfelt reminded everyone that the car show is coming up the weekend of April 30. They are expecting 500 cars to be in the event this year. He encouraged any business, resident, or council member to buy a gift certificate to their favorite restaurant, gas station, grocery store, etc., to encourage car show participants to keep returning each year. The car show is very good for businesses in town that weekend. He thanked the "Follies" for their donation to the car show. In closing, he thanked Chief Derohan for all the work he has done for the city. ® Perry Brennan reported on the Medical Marijuana Subcommittee. He said there were approximately 23 people in attendance at the meeting last week, of whom 10 or 11 were not Morro Bay residents. One doctor was from Santa Barbara. Of those in attendance, 15 were in favor of the dispensary, and six against. Of the 15, 10 or 11 were from out of the city. He said it looked to him that "we are being overwhelmed by the outsiders who can't get this approved in their city and they want to come to Morro Bay and bring their money and rent an expensive space and open their marijuana dispensaries." He feels this needs to be on the ballot so the citizens of Morro Bay can make the decision. He felt the City Council does not seem to want to make a decision on the issue. Noah made a comment regarding the marijuana subcommittee, stating the next meetings are scheduled for May 4 and May 18, both from 5:30 p.m. to 7:30 p.m., at the Community Center. Mayor Peters closed the hearing for public comment. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 RESOLUTION NO. 18-10 COMMENDING POLICE VOLUNTEER KEN ® VESTERFELT; AND, RESOLUTION NO. 19-10 COMMENDING CORINNE 4 I1 U E E BLACK FOR THEIR SWIFT ACTIONS TO HELP CATCH BANK FRAUD SUSPECTS; (POLICE) RECOMMENDATION: Adopt Resolution Nos. 18-10 and 19-10. A-2 APPROVAL OF THE MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF MARCH 22, 2010; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-3 CONSIDERATION OF APPROVAL FOR A SUBLEASE ON A PORTION OF LEASE SITE 113W, LOCATED AT 1215 EMBARCADERO. BETWEEN VIRG'S FISH'N, INC., AND ALAN AND WENDY RACKOV, DOING BUSINESS AS LOST ISLE ADVENTURES; (HARBOR) RECOMMENDATION: Adopt Resolution No. 20-10. A4 AUTHORIZATION TO FILE NOTICE OF COMPLETION FOR THE HARBORWALK PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Accept the Harborwalk project as completed by Souza Construction, Inc. A-5 APPROVAL OF THE FINAL MAP FOR A ONE -LOT SUBDIVISION FOR CONDOMINIUM PURPOSES KNOWN AS TRACT 2978 AND LOCATED AT 600 MORRO BAY BOULEVARD; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 17-10. A-6 AN ORDINANCE OF THE CITY OF MORRO BAY, CALIFORNIA REPEALING ORDINANCE 551 AND ENACTING ORDINANCE 554 ADDING SECTION 10.76.035 TO CHAPTER 10.76 TO PROVIDE RULES AND REGULATIONS FOR THE MORRO BAY SKATE PARK; (RECREATION & PARKS) RECOMMENDATION: Adopt Ordinance No. 554. A-7 PROCLAMATION DECLARING APRIL 2010 AS "AUTISM AWARENESS MONTH'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Mayor Peters pulled Items A-1 and A-7 from the Consent Calendar; and Councilmember Winholtz pulled Items A-3 and A-5. E ® MOTION: Councilmember Grantham moved the City Council approve Items A-2, A-4 and A-6 of the Consent Calendar. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) A-1 RESOLUTION NO. 18-10 COMMENDING POLICE VOLUNTEER KEN VESTERFELT; AND, RESOLUTION NO. 19-10 COMMENDING CORINNE BLACK FOR THEIR SWIFT ACTIONS TO HELP CATCH BANK FRAUD SUSPECTS; (POLICE) Mayor Peters pulled this item in order to make a presentation. MOTION: Councilmember Grantham moved the City Council approve Item A-1 of the Consent Calendar. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) A-3 CONSIDERATION OF APPROVAL FOR A SUBLEASE ON A PORTION OF LEASE SITE 113W, LOCATED AT 1215 EMBARCADERO, BETWEEN VIRG'S FISWN, INC., AND ALAN AND WENDY RACKOV, DOING BUSINESS AS LOST ISLE ADVENTURES; (HARBOR) Councilmember Winholtz said she will vote against this because she feels it is not legal according to Measure D. Since it is a tour business and not a fishing venture, it is not ® permitted. Rick Algert explained that all of Virg's are grandfathered in, pre-existing, nonconforming uses, in the proposition that was passed by the people. E MOTION: Councilmember Borchard moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried with Councilmember Winholtz voting no. (4-1) A-5 APPROVAL OF THE FINAL MAP FOR A ONE -LOT SUBDIVISION FOR CONDOMINIUM PURPOSES KNOWN AS TRACT 2978 AND LOCATED AT 600 MORRO BAY BOULEVARD; (PUBLIC SERVICES) Councilmember Winholtz commented about the trees that were planted in the public right of way. She said this was more a side comment. She said according to past Council minutes, the Council was very strong in trying to obtain canopy trees for Morro Bay Boulevard. She said that wish did not happen for a variety of reasons. She wanted to encourage the tree committee to move swiftly forward with that list so things can get squared away. MOTION: Councilmember Grantham moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) 3 ® A-7 PROCLAMATION DECLARING APRIL 2010 AS "AUTISM AWARENESS MONTH'; (ADMINISTRATION) Mayor Peters pulled this item in order to make a presentation. MOTION: Councilmember Grantham moved the City Council approve Item A-1 of the Consent Calendar. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) Mayor Peters called for a break at 7:10 p.m.; the meeting resumed at 7:15 p.m. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 CONSIDERATION OF RESOLUTION NO. 21-10 AUTHORIZING ONE-TIME RENT CREDITS FOR CITY TENANTS TO REDUCE VACANCIES ON THE EMBARCADERO AND STIMULATE BUSINESS; (HARBOR) Harbor Director Rick Algert stated on September 14, 2009, the City Council held a public hearing to discuss strategies to prevent and reduce vacancies on the Embarcadero and stimulate business. On September 28, 2009, the City Council adopted Resolution No. 47- 09 to authorize staff to negotiate payment plans on modem City lease agreements, allow for quarterly minimum rent payments on modem City leases. to waive the 2009-2010 CPI increase to minimum rent, and approve office uses on the second floor of lease site buildings in compliance with City planning and zoning requirements. In September 2009, the City Council also considered other rent concession concepts to promote new business establishments on City lease sites, but determined to monitor the situation and review those issues again within six months. The economy may be on the upswing, but the retail environment remains depressed with many commercial vacancies in the City and countywide. Mr. Algert recommended the City Council adopt Resolution No. 21-10 approving a one-time rent credit of up to $6000 for those City tenants on modem format master leases subject to percentage of gross sales rent to reduce vacancies and stimulate business on the Embarcadero. Mayor Peters opened the hearing for public comment. Neil Farrell feels the problem is not the rent but the lack of customers. He suggested taking money from the Harbor reserve account and do a media blitz over in the Central Valley through radio ads, TV ads, newspaper ads, and get the name of Morro Bay in front of people, encouraging them to come here. He also suggested expediting a maritime museum to attract tourists to Morro Bay. He said he feels it would be a good fix for the long run. Mayor Peters closed the public comment hearing. ® Mayor Peters referred to Peter Candella's report that there have been many people coming to Morro Bay —they just are not buying things. 7 ® Councilmember Borchard reiterated that the Harbor Fund money is not for promoting. The BID, the Promotions, and the Visitor Center funds are used for promoting Morro Bay. The Harbor Reserve Funds need to be used for taking care of infrastructure such as replacing the pier and other things that need to be taken care of. She is in favor of offering the rent incentives and would like to see the rents stay status. Councilman Smukler is in favor of the rent credit. He said the CPI recapture would not be a favorable thing to do. He is in favor of leaving last year's CPI increase and not try to recapture that. Leaving it at zero would be his preference. Councilman Grantham is not in favor of recouping the 3.5 CPI. He is in favor of adopting the resolution. Councilmember Winholtz is in favor of the Resolution. MOTION: Councilmember Winholtz moved the City Council adopt Resolution No. 21-10 authorizing one-time rent credits for City tenants to reduce vacancies on the Embarcadero and stimulate business on the Embarcadero -and to allow the Consumer Price Index to remain flat. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) B-2 ORDINANCE NO. 555 TO AMEND MORRO BAY MUNICIPAL CODE Is CHAPTER 10.44 TO INCLUDE A NEW SECTION 10.44.070 TO REGULATE MUNICIPAL PARKING AND ESTABLISH AUTHORITY TO CHARGE FEES FOR PARKING — INTRODUCTION/ FIRST READING; (HARBOR) Harbor Director Rick Algert stated last year Council authorized purchase of one automated parking payment machine for installation at the Tidelands Park Boat Launch Ramp and approved in the Harbor Master Fee Schedule a $1 hour or $5 daily maximum parking fee for the trailer and towing vehicle spaces at the Boat Launch Ramp. The machine has been purchased and will be installed shortly; however, Chapter 10 in the Morro Bay Municipal Code must be amended to provide authority for citing users who fail to pay the fee. Mr. Algert recommended the City Council approve Ordinance No. 555 for introduction and first reading by number and title only. Councilmember Winholtz suggested an amendment to the title of the Ordinance in order to read ... SECTION 10.44.070 TO REGULATE MUNICIPAL PARKING LOTS; Council concurred. Mayor Peters opened the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. Councilmember Winholtz questioned Mr. Schultz if this lot would be limited to 10 hours. ® Mr. Schultz explained the limit in this lot would be 72 hours for people with boats that go out for a longer period of time. 3 ® MOTION: Councilmember Grantham moved the City Council approve Ordinance No. 555 for introduction and first reading by number and title as amended. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) City Manager Andrea Locker read Ordinance No. 555 by number and title. B-3 RESOLUTION NO. 15-10 INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE CLOISTERS PARK AND OPEN SPACE LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Recreation & Parks Director Joe Woods stated Resolution No. 15-10 has been prepared for City Council review and adoption. The Resolution 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 Engineers Report, will be held on May ]0 , 2010. Mr. Woods recommended the City Council adopt Resolution No. 15-10 initiating the proceedings to levy the annual assessment for the Cloisters Park and Open Space Landscaping and Lighting Maintenance Assessment District. ® Mayor Peters opened the hearing for public comment; there were no comments. and Mayor Peters closed the public comment hearing. MOTION: Councilmember Winholtz moved the City Council adopt Resolution No. 15-10 initiating the proceedings to levy the annual assessment for the Cloisters Park and Open Space Landscaping and Lighting Maintenance Assessment District. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) B-4 RESOLUTION NO. 16-10 INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Recreation & Parks Director Joe Woods stated Resolution No. 16-10 has been prepared for City Council review and adoption. The Resolution 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 10, 2010. Mr. Woods recommended the City Council adopt Resolution No.16-10 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 comments, and Mayor Peters closed the public comment hearing. MOTION: Councilmember Borchard moved the City Council adopt Resolution No.16-10 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 Smukler and carried unanimously. (5-0) C. UNFINISHED BUSINESS C-1 STATUS REPORT ON THE A -FRAME SIGN PROGRAM; (PUBLIC SERVICES) Acting Public Services Director Rob Livick stated the City Council requested the Sign Exception Process be re-evaluated by staff to ensure that the process for approving the A - frame signs has been successful and, if necessary, make recommendations to improve the process. In evaluating the current A -Frame sign program staff was able to determine that the program is not successful. Currently when a business desires to utilize an A -frame sign they must apply for an A -Frame Sign Exception Permit. The processing of an A - Frame sign is more cumbersome than applying for a regular sign to be permanently installed. Most regular sign permits can be reviewed and approved administratively, but A -Frame sign exceptions must have a public hearing before the Planning Commission. ® This process has proven to be too burdensome on both the public and City staff and therefore, over the last few years, appears that while permits have been accepted accompanied by the necessary fee, none have been taken for approval. Mr. Livick recommended the City Council review the various options regarding A -frame sign regulations and give direction to staff as to how to proceed. Mayor Peters stated she prefers Atascadero's A -frame sign regulations. In answer to Councilmember Smukler's inquiry regarding the time it takes to hear back from the Coastal Commission once something is submitted to them, Mr. Livick said they are working to establish a better working relationship with them. Mr. Livick also said the current encroachment fee of $116 covers the typical encroachment costs and does not need to be raised. He explained that the Atascadero plan has just a one-time fee. Councilmember Borchard inquired if it was an annual fee or a one-time fee. Mr. Livick stated that under the Atascadero example, it is a one-time fee. However, they reserve the right to revoke it at any time if it were to become a problem. Then that business would have to re -apply. Councilmember Smukler inquired if there is a plan for getting businesses into compliance and updating them on this transition. Mr. Livick stated it would take several weeks. They would meet with the Chamber, with the Merchants Association, and prepare ® informational flyers. 10 ® Councilmember Grantham stated he likes the idea of businesses signing an insurance waiver. He is not in favor of off -site signs, and that it needs to be determined what is actually off site. Public safety is an important factor. He would like an answer back on the encroachment permit. He would like to see at least a minimum four -foot clearance on an eight -foot sidewalk. He feels the signs are definitely an asset for the businesses but wants to make sure the safety aspect is covered. He would also like to know the difference between non -encroached and encroached. Councilmember Winholtz stated she considers A -frame signs as clutter on sidewalks. She said a monument sign would be neater (with several businesses listed) and more effective in particular areas. Councilmember Smukler stated he understands Councilmember Winholtz' statement about clutter. However, he stated that as long as it is determined to have a safe place for signs to be placed, he is comfortable with that. He feels that professional signs would cover the concern about clutter. He noted that some restaurants like to have signs out to promote specials. He would like to see insurance added to the permit and a minimum sidewalk width. Councilmember Borchard stated she has seen A -frame signs in the back of a pickup truck advertising certain businesses in town and feels they are very unattractive. She added that sometimes they are not even close to the business. She would like the ordinance to ® address how far away from the business the sign can be. Mayor Peters agreed with Councilmember Borchard that the A -frame signs in the back of pickup trucks are very unattractive and should not be encouraged. MOTION: Councilmember Winholtz moved the City Council direct staff to forward the A -Frame Sign Ordinance to the Planning Commission and back to City Council, and then pass it on as an amendment to the Coastal Commission. The motion was seconded by Councilmember Borchard Councilmember Winholtz amended her motion to include the entire Sign Ordinance; Councilmember Borchard amended her second. The motion carried unanimously. (5-0) D. NEW BUSINESS D-I CONSIDERATION OF APPROVAL OF WATER AGREEMENT BETWEEN THE CITY OF MORRO BAY AND ROANDOAK OF GOD; (CITY ATTORNEY) This item was pulled from the agenda. D-2 DISCUSSION ON THE GUIDELINES FOR PUBLIC AREA USE PERMITS; (RECREATION & PARKS) ® Recreation & Parks Director Joe Woods stated when public properties are not in use by the City, they are made available for use by public groups or individuals for social, cultural or recreational activities. Such use shall require an application, from which a permit is granted provided compliance is met for all adopted guidelines, rules, regulations and conditions. Guidelines are developed by staff and reviewed and adopted by the Recreation and Parks Commission pursuant to Morro Bay Municipal Code Chapter 24.24.040.B. Applications are reviewed by the Special Events Team, which consists of the Recreation and Parks Director and City Department Heads or their representatives. If the use application is permitted, the applicant is presented with assessed fees and conditions which must be met prior to actual usage; any additional City services are invoiced to the applicant after the event. The Recreation and Parks Commission has reviewed the current guidelines for public area use and recommends no amendments to Council. Mr. Woods recommended Council review the current guidelines and procedures for public area use and direct staff accordingly. Mayor Peters inquired about the $1 million insurance policy. Mr. Woods explained the example of having a party of approximately 75 people for a reunion and having alcoholic beverages at the event would require the party to purchase a $1 million insurance policy. He explained that the rates for this type of insurance are very reasonable. The party could purchase the policy either through the City or through a commercial policy. Councilmember Grantham asked how often the Special Events Team meets. Mr. Woods is try they meet on the second Thursday from 2:00 p.m. to 4:00 p.m. every month. They try to have the applicants at these meetings. He said they ask people to file for a reservation 10 days before their special event. Provided staff is available, they process it in five days. On each application, there is wording to the effect that the park must remain open for all public use. There is exclusive use of a reserved area. Councilmember Winholtz expressed the importance of having recycling containers at City parks, and encourages individuals to recycle. Councilmember Smukler agreed with Councilmember Winholtz regarding recycling containers for the parks. Mr. Woods stated this is required for special events. He also explained that having recycling containers in all parks all the time would double the labor and be cumbersome on staff, and staff would also have to take the recycled items to a different location. They are working to expand their Adopt -A -Park program. When that really gets going, the recycling could work much better. Councilmember Borchard expressed concern over a particular area or parking lot being used on an ongoing basis without notifying businesses in the area. She spoke specifically in reference to the idea that the Saturday Farmers Market possibly being move to the parking lot on the Embarcadero a few months ago. Mr. Woods said this is a different ® situation and would require a special use permit that must applied for. Mayor Peters suggested that when the permit is for a public street, such as where the Saturday Farmers 12 ® Market is located, could there possibly be a, yearly review of the event which would include public comment. Mr. Livick said they do have to renew their permit yearly; however, it does not go through the Recreation and Parks Commission. MOTION: Mayor Peters moved the City Council direct staff to continue processing permits allowing use of public property using current guidelines and policies with amendments to recycling and zoning to be examined. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) Mayor Peters called for a break at 8:52 p.m.; the meeting resumed at 9:00 p.m. D-3 REVIEW OF CURRENT PROCEDURES FOR AMPLIFIED SOUND DURING EVENTS IN PARKS; (RECREATION & PARKS) Recreation & Parks Director Joe Woods stated when amplified music is requested through a Public Area Use application, staff includes sections of Morro Bay Municipal Code Section 9.28 as a condition to the permit. The condition on the permit is usually Morro Bay Municipal Code 9.28.030.C. and is generally stated as: "Live or amplified music during the event between the hours of 7:00pm and 7:00am shall not be audible 50 feet from where the structure is located." Applicants are required to notify adjacent neighbors of their planned use prior to the event date. Notification methods vary depending on the location and type of usage. The Recreation and Parks Commission has ® reviewed the current procedures and ordinances for amplified sound during events in public parks and recommends to Council no amendments. Mr. Woods recommended Council review the current procedures and ordinance for amplified sound during events in parks and direct staff accordingly. MOTION: Councilmember Smukler moved the City Council direct staff to continue processing permits allowing amplified sound during events in public parks using current guidelines, policies and ordinances. The motion was seconded by Councilmember Grantham and carved unanimously. (5-0) D-4 REVIEW OF CO-SPONSORSHIP REQUEST FROM MORRO BAY GARDEN CLUB FOR DAHLIA DAZE EVENT; (RECREATION & PARKS) Mayor Peters stepped down due to a conflict of interest. Recreation & Parks Director Joe Woods stated the Morro Bay Garden Club has recently requested co-sponsorship from the City of Morro Bay to support their annual Dahlia Daze event scheduled for August 27-28, 2010. Staff has reviewed the request and presented the application to the Recreation and Parks Commission at their regular meeting on March 23, 2010. After discussion, the Recreation and Parks Commission was in favor of co-sponsorship. The Recreation and Parks Commission found that the request for co-sponsorship met two of the three co-sponsorship conditions, and is recommending isCity Council waive the time of year condition based on the nature of the event. Mr. Woods recommended the City Council review and discuss the possibility of co- 13 ® sponsoring the Morro Bay Garden Club's annual Dahlia Daze event and direct staff accordingly. Councilmember Grantham stated with the current shortfall, he is not supportive of the co- sponsorship; he would rather give a donation from discretionary funds. MOTION: Councilmember Smukler moved the City Council support the co- sponsorship of the City and the Morro Bay Garden Club with their annual Dahlia Daze event on August 27-28, 2010 at the Morro Bay Community Center. The motion was seconded by Councilmember Winholtz and carried with Councilmember Grantham voting no. (3-1-1) D-5 REQUEST FOR FACILITY FEE WAIVER FOR CANDIDATE FORUM; (MAYOR) Councilmember Grantham and Councilmember Winholtz stepped down due to a conflict of interest. Mayor Peters stated the Morro Bay Chamber of Commerce, the Business & Community Forum, Lion's Club have volunteered to arrange a candidates' forum for the Primary Election to be held on June 8, 2010. Such forums present a valuable public service in acquainting the voters with the views and goals of the candidates for Morro Bay Mayor ® and City Council. The volunteering organizations are requesting that the City Council waive the fee for the Veterans' Memorial Building for a three-hour event to be held on May 4, 2010. Mayor Peters recommended the City Council discuss the request and direct staff accordingly. Councilmember Smukler stated the applicant should be responsible for insurance and liability, clean-up and set-up, open up and lock -down of the event; Councilmember Borchard concurred. MOTION: Mayor Peters moved the City Council grant a fee waiver for the candidate forum on May 4, 2010 for the Primary Election with the understanding that they supply the insurance and liability, set-up and clean-up, and open up and lock -down of the event. The motion was seconded by Councilmember Smukler and carried unanimously. (3-0-2) D-6 ALLOCATION OF FUNDS GENERATED FROM THE FUNDRAISER FOLLIES; (MAYOR) This item was pulled from the agenda. D-7 CONSIDERATION OF MORRO BAY-GIBRALTAR SISTER CITY CORRESPONDENCE; (MAYOR) El 14 Mayor Peters stated the City's advertising agent, John Sorgenfrei, has suggested the City send a letter to form a relationship with the Rock of Gibraltar and do a Sister City program with them. Karen and Harold Biaggini are planning on being in Gibraltar on April 29, 2010, and have offered to make the effort to reach out to them during that day. It is recommended the City Council approve sending a letter to Gibraltar to encourage potential future tourism business. MOTION: Mayor Peters moved the City Council approve sending a letter to Gibraltar regarding a Sister City Program. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) D-8 CONSIDERATION ON SENDING LETTER TO CONGRESSWOMAN LOIS CAPPS OPPOSING FARM FISH LEGISLATION; (CITY COUNCIL) This item was pulled from the agenda. E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Smukler requested to agendize a discussion on a reclaimed water ordinance (long-term planning item); Council concurred. Councilmember Winholtz requested to agendize a discussion on Recreation and Parks Commission Ordinance (Morro Bay Municipal Code Chapters 2 and 9 - Prohibited ® Conduct): Council concurred. Councilmember Winholtz requested to agendize a discussion on pulling the Local Coastal Plan from the Coastal Commission; Councilmember Winholtz will prepare a report. ADJOURNMENT The meeting adjourned at 9:32 p.m. Recorded by: Bridgett Kessling City Clerk l 15