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HomeMy WebLinkAboutJanuary - December 2013O� 0 City of Morro Bay Morro Bay, CA 93442 (805) 772-6205 OEM 0 CITY OF MORRO BAY CITY COUNCIL NOTICE OF CANCELED MEETING THE REGULAR CITY COUNCIL MEETING SCHEDULED FOR TUESDAY, DECEMBER 24, 2013 HAS BEEN CANCELED The next regularly scheduled meeting will be held on Tuesday, January 14, 2014, 6:00 p.m., at the Veterans Hall FINANCE ADMINISTRATION 595 Harbor Street 595 Harbor Street FIRE DEPT. 715 Harbor Street PUBLIC SERVICES 955 Shasta Avenue HARBOR DEPT. 1275 Embarcadero Road CITY ATTORNEY 595 Harbor Street POLICE DEPT. 850 Morro Bay Boulevard RECREATION S PARKS 1001 Kennedy Way City of Morro Bay City Council Agenda illission 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 CLOSED SESSION MEETING THURSDAY, DECEMBER 12, 2013 VETERAN'S MEMORIAL, BUILDING — 12:00 PM (NOON) 209 SURF STREET, MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER SUMMARY OF CLOSED SESSION ITEMS — The Mavor will read a summary of Closed Session items. ® CLOSED SESSION PUBLIC COMMENTS — Members of the public may address the City Council on any matter that is listed on this Closed Session agenda. Unless additional time is authorized by the Citv Council. remarks shall be limited to three minutes. 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 cam 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. THE CITY COUNCIL WILL MOVE TO CLOSED SESSION 11 ® CS-1 GOVERNMENT CODE SECTION 54957(b)(1) PUBLIC EMPLOYEE DISCIPLINE/ DISMISSAURELEASE/TERM NATION OF CONTRACT: Title: Citv Manager CS-2 GO«RNTNIENT CODE SECTION 54956.8 - 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 parcel. • Property: Vacant Lot/Comer of Coral Ave. and San Jacinto • Negotiating Parties: Broc Assets. Inc. and City. of Morro Bay • Negotiations Amendment to Purchase and Sale Agreement CS-3 GOVERNMENT CODE SECTION 54957(b)(1) — PUBLIC EMPLOYMENT: Title: City Manager CONVENE TO OPEN SESSION — Announcement of reportable action from closed session. if any. DATED: December 11. 2013 at 1 1:45 A,NI ® *t'tl�— JarhiAoucher. City Clerk IN COMPLIANCE WITH THE AMERICANS WITH DISABILITY ACT. IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY NIEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGENIENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. - 11 ® MINUTES — MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING — DECEMBER 12, 2013 VETERAN'S MEMORIAL BUILDING — 12:00 P.M. PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Leage Noah Smukler STAFF: Anne Russell Jamie Boucher ESTABLISH QUORUM AND CALL TO ORDER AGENDA NO: A-5 MEETING DATE: 1/14/2014 Mayor Councilmember Councilmember Councilmember Councilmember Interim City Attorney City Clerk SUMMARY OF CLOSED SESSION ITEMS - The Mayor read a summary of the Closed Session items. CLOSED SESSION PUBLIC COMMENTS - Mayor Irons opened the meeting for Public Comment. Garry Johnson asked the Council to please state why City Attorney Rob Schultz and City Manager Andrea Lueker were being terminated. And if there isn't a reason, please say so. The public comment period was closed. The City Council moved to Closed Session and heard the following items: CS-1 GOVERNMENT CODE SECTION 54957(b)(1) - PUBLIC EMPLOYEE DISCIPLINE/ DISMISSAL/RELEASE/I'ERMINATION OF CONTRACT: Title: City Manager CS-2 GOVERNMENT CODE SECTION 54956.8 - 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 parcel. • Property: Vacant Lot/Comer of Coral Ave. and San Jacinto • Negotiating Parties: Broc Assets, Inc. and City of Morro Bay • Negotiations: Amendment to Purchase and Sale Agreement CS-3 GOVERNMENT CODE SECTION 54957(b)(1) — PUBLIC EMPLOYMENT: Title: City Manager CITY COUNCIL CONVENED TO OPEN SESSION — The City Council convened to open ® session; Interim City Attorney Anne Russell reported that with regards to Item CS-1, Government Code Section 54957(b)(1), with a 5-0 vote, Council approved the separation agreement with City Manager Andrea Lueker; and, in a 3-2 vote, with Councilmembers Nancy Johnson and Leave voting no, the Council placed City Manager Andrea Lueker on Administrative Leave effective December 13, 2103 and appointed Administrative Services Director Susan Slayton Acting City Manager. With regards to Government Code Section 54956.8 — Property Transactions and Government Code Section 54957(b)(1) Public Employment — City Manager; no reportable action was taken. ADJOURNMENT The meeting adjourned at 220pm' Recorded by: 2ie Boucher City Clerk El ® 2 MINUTES - MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING - DECEMBER 12, 2013 ® 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 TUESDAY, DECEMBER 10, 2013 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 CLOSED SESSION REPORT MAYOR & COUNCILMEMBERS� REPORTS. ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS — ® • Presentation of Painting done by Frank Spada to the Cite of Morro Bay • Award for Friends of the Fire Department • Quarterly Report from the Economic Development Program PUBLIC COMMENT - Members of the audience wishing to address the Council on City business matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda. but unable to stay for the item, may also address the Council at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the iviayor, 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 AGENDA Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE SPECIAL CLOSED SESSION CITY COUNCIL MEETING HELD ON NOVEMBER 12, 20L3; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETNG HELD ON NOVEMBER 12, 2013: (ADMINISTRATION) RECONLMENI)ATION: - Approve as submitted. A-3 APPROVAL OF MINUTES FOR THE SPECIAL CLOSED SESSION CITY COUNCIL MEETING HELD ON NOVEMBER 19, 20L3; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. ® A-4 APPROVAL OF MINUTES FOR THE SPECIAL CITY COUNCIL MEETING HELD ON NOVEMBER 19, 2013; (ADMINISTRATION) RE CONUNIENDATION: Approve as submitted. A-5 APPROVAL OF MINUTES FOR THE SPECIAL CLOSED SESSION CITY COUNCIL MEETING HELD ON DECEMBER 3. 2013: (ADMINISTRATION) RECONIN1 1ENDATION: Approve as submitted. A-6 RESOLUTION NO. 59-13 ESTABLISHING THE GUIDELNES BY WHICH THE CITY OF MORRO BAY WILL COMPLY WITH THE FEDERAL AFFORDABLE CARE ACT (ACA): (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 59-13; and consider directing staff to bring back costs related to a consultant to ensure compliance with ACA. A-7 CITY PROJECT STATUS REPORT: (ADNII_NISTRATION) RECOMMENDATION: Receive and file; informational item only. ® A-8 WATER RECLAMATION FACILITY DISCUSSION: (ADMINISTRATION) (WRF) PROJECT STATUS AND RECOMMENDATION: Receive and file; informational item only. A A-9 STATUS REPORT OF A MAJOR MAINTENANCE & REPAIR PLAIN' (MVIRP) FOR THE EXISTING WASTEWATER TREATMENT PLAN; (PUBLIC SERVICES) RECOMMENDATION: Receive and file; informational item onh. A-10 STATUS UPDATE ON THE PURCHASES OF FIRE DEPARTMENT EQUIPMENT BASED ON MONIES PROVIDED BY THE BERTHA SHULTZ TRUST: (FIRE) RECOMMENDATION: Receive and file; informational item only. A-11 APPROVAL OF THE GRANT AGREEMENT BETWEEN THE CITY OF MORRO BAY AND SOUTH BAY COMMUNITY POOL ASSOCIATION; (RECREATION & PARKS) RECOMMENDATION: Review and approve the proposed grant agreement between the South Bay Community Pool Association and the City of Morro Bay and direct staff to fulfill any associated financial obligations. A-12 RESOLUTION 458-13 AUTHORIZNG CITY STAFF TO SUBMIT A GRANT APPLICATION TO THE CALIFORNIA COASTAL .COMMISSION TO PROVIDE FNANCIAL ASSISTANCE FOR AN UPDATE TO THE CITY`S LOCAL COASTAL PROGRAM (LCP) TO REFLECT CURRENT CIRCUMSTANCES AND NEW ® SCIENTIFIC NFORVIATION. INCLUDING NEW UNDERSTANDINGS AND CONCERN FOR THE EFFECTS OF CLIMATE CHANGE: (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution 58-13. A-13 APPOINTMENT OF KATHRYN THOMAS TO CITIZENS OVERSIGHT COMMITTEE: (ADMINISTRATIVE SERVICES) RECOT'iWN4ENDATION: Appoint Kathryn Thomas to fill the vacant position on the Citizens Oversight Committee. A-14 APPROVAL OF FIRE PROTECTION AGREEMENT BETWEEN THE CITY OF MORRO BAY AND DYNEGY MORRO BAY; LLC; (CITY ATTORNEY) RECOMMENDATION: Approve the Fire Protection Agreement ("Agreement") between the City and Dynegy Morro Bay, LLC ("Dynegy"). B. PUBLIC HEARNGS B-1 REVIEW OF THE SECOND PUBLIC DRAFT OPTIONS REPORT FOR THE NEW WATER RECLAMATION FACILITY (WRF); (PUBLIC SERVICES) ® RECOMMENDATION: Receive the report and presentation, take public testimony, and provide any recommendations or comments to staff and the Rickenbach team. for incorporation into the final document; provide direction to staff to commence 3 discussions with property owners on the top three sites as selected by Council; and additionally, provide direction to staff regarding the continuing of discussions on a ® parallel path regarding a regional facility at the California Men's Colony (CMC) site with the potential partner agencies. B-2 REVIEW OF CITY COUNCIL REQUESTED OUTSIDE LEGAL SERVICES; STATUS AND COST: (ADMINISTRATION) RECOMMENDATION: Review the costs to date for outside legal services requested by City Council and provide further direction to staff. C. UNFINISHED BUSINESS - NONE D. NEW BUSINESS D-1 HARBOR DEPARTMENT RULES AND REGULATIONS: PROPOSED CHANGE TO SLIP REGULATIONS FOR FISHERMEN OWNING TWO QUALIFIED COMMERCIAL FISHING VESSELS: (HARBOR) RECOMMENDATION: Accept the Harbor Advisory Board (HAB) recommendation by adopting Resolution No. 60-13. D-2 PROPOSED AMENDMENT TO THE HARBOR ADVISORY BOARD BY-LAWS ALLOWING THE DESIGNATED MORRO BAY COMMERCIAL FISHERMAN'S ® ORGANIZATION SEAT TO HAVE ADDITIONAL ALTERNATE MEMBERS APPOINTED N ORDER TO ENSURE THE ORGANIZATION'S ATTENDANCE AND PARTICIPATION; (HARBOR) RECOMNIE\J)ATION: Accept the Harbor Advisory Board (HAB) recommendation by adopting Resolution No. 61-13. E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS F. ADJOURNMENT TMS 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 7 72-6205 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 REGULAR MEETING — DECEMBER 10. 20 ® VETERAN'S MEMORIAL 14ALL — 6:OOP.M. PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Lease Noah Smukler STAFF: Andrea Locker Anne Russell Jamie Boucher Amy Christey Steve Knuckles Susan Sla,,non Joe Woods Eric Endersby Rob Livick Mayor Irons called the meeting to order at 6:00 p.m. AGENDA NO: A4 MEETING DATE: 1/14/2014 Mayor. Councilmember Councilmember Councilmember Councilmember City Manager Interim City Attomev City Clerk Police Chief Fire Chief Administrative Services Director Recreation & Parks Director Harbor Director Public Services Director ESTABLISH QUORUM AND CALL TO ORDER ® MOMENT OF SILENCE PLEDGE OF ALLEGIANCE CLOSED SESSION REPORT — Interim City Attorney Anne Russell reported that with regards to the three Closed Session Items: Government Code Section 54956.8: Property Transaction .regarding Lease Site 30W-33W, Bay Front Marina; Government Code Section 54957.6. Conference with Labor Negotiator with regards to Management employees and the Police Officer's Association; and. Government Code Section 54957(b)(1) Public Employment with regards to the City Manager; no reportable action under the Broom Act was taken. MAYOR AND COUNCILMEMBERS' REPORTS, ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS Sylvia Arnold Hill presented a painting to the City of Morro Bay. The painting was done by Frank Spada and will be displayed at City Hall. John Fennacy. President of the Friends of ,the Morro Bay Fire Department; presented S500 scholarships to Reserve Firefighters Grant Brady and Felix Johansson. These monies will go towards helping both with their Paramedic training. Morro Bay Chamber President Susan Stewart, President Elect Jennifer Redman and President ® Elect, Elect John Headding presented the Chamber's Quarterly Report from the Economic Development Program. The Avocado Margarita Festival saw over 9000 in attendance: they partnered with the Tourism Bureau to produce the Morro Bay Business Map and the Shop Local Campaign: they are working with the Celebrate Morro Bays 50'h.group- they are working with o start-up businesses as possible incubator candidates; they consulted with 48 businesses on a variety of issues; and they met with 76 businesses to discuss Business Center programs as well as the Sign Ordinance. They went on to say that the Chamber is in a period of transition. They have accepted CEO Craig Schmidt's resignation and the Business Liaison's position is being eliminated with both being replaced by a Manager's position. They hope that 2014 will bring better board representation, the development of a strategic plan, etc. They are excited about the new Chamber. Finally, they stated that currently the Chamber is dealing with some challenging fiscal issues and they will be working on membership — both retention and expansion; they will be conducting a needs assessment from their members; they will continue to develop strategic partners; they will be developing programs to help businesses prosper; they will continue to provide opportunities for networking and they will continue to be a business advocate. PUBLIC COMMENT Robert Davis. President of Friends of the Library. thanked those who have donated to their remodel campaign. The main building will close after Christmas but library services will continue at 535 Harbor after details with the City are worked out. Ken Vesterfelt thanked Mike Meyers for displaying the huge American Flag. The Cruisn' Morro Bay Car Show Committee was able to distribute over $5500 to the Morro Bay Police Explorers, $5500 to the Rotary Club of Morro Bay and $500 to the Morro Bay Chamber. Last Friday, local real estate agent Dan Reddell was names Relator of the Year. He finished by thanking Andrea ® Lueker for the loyal and honest work she has given the City over the years. Gerie Walsh with South Bay Seniors, People Helping People, announced a fundraising event being held at the Los Osos Community Center on Saturday. December 14'h. This is the largest single day fundraiser in the County for the homeless. Monies go toward the Marine Lewis Shelter (40%). Transitional Food and Shelter (30%) and the SLO Noor Clinic (30%). Richard Marx also promoted the People Helping People event being held this weekend. He encouraged people to attend and help out!! Christine Rogers with the Economic Vitality Corporation thanked the City for their continued support of the EVC. She wanted to recommit their support for the Chamber and Visitor's Center as they are happy to be partnered with these groups. Joan Solu announced and advertised Morro Bads 50'h Anniversary events. January will see the First Day Hike being held on January I" as well as the Kick Off Party on January I Ith; Winter 2014 will see 50 Trees for Beautification; Spring 2014 will see Celebration Bike Tours and the 'Community Quilt Project: and Fall 2014 will see a Founders Parade and Community Celebration Picnic. She introduced the logo; Landmark and Legacy. Bonnie Jones is the St. Timothy's representative for EBAC (Estero Bay Assistance Committee). Initially formed as a food group, it has grown to being able to provide a community dinner for the needy once a week at the Veteran's Hall on Mondays. Different organizations host each 2 MINUTES - MORRO BAY CITY COUNCIL - DECEMBER 10, 2013 dinner. It is their hope that this becomes a true community commitment and they w211 be back to see if they can get the City to waive their fees. . ® Sharon O'Leary, also with EBAC. said that they were a collaborative effort of faith and non -faith groups based on community needs. She provided statistics dealing with the low-income and poverty levels in our communities. EBAC can always use help. Linda Fidel also spoke on our homeless situation in Morro Bay. She stressed that these are a generous, diverse, resilient, and long term members of Morro Bay, group of people. She hopes that the City of Morro Bay will be of some assistance. Marcel Bocula with Pacific Wildlife Care announced that they have 2 matching funding opportunities — grant funds for a veterinarian and a $20,000 grand from the Woods Family Foundation. She hopes that the community will be in support of wildlife rehabilitation. Cathy Novak thanked Andrea Lueker for her service to the City. She has personally been involved with Andrea for over 20 years. So many people have spoken and she ditto'd their comments. She wished Andrea the best in her future. Janice Peters stated that 27 years is a long time to work in one place. The fact that Andrea is still here and still serving with a sense of humor and integrity is a testament to her character. She took a City and consolidated it — brought people together — which is an amazing accomplishment. She told Andrea that she will go on to bigger and better things and will be appreciated much more than you have been here recently. ® John Headding announced the closing of the local CHC facility (Community Health Care) on January I". This brings him and should us, great cause for concern. He wonders how people will be able to find transportation outside of the City to seek care. Bill Martoney continues to disagree with the cost estimates of the plant. In his mind it shouldn't cost more than 10-15 million — 30 million tops. He brought up the fear factor of S90-160 million. He also talked about an MBR system that can brine us Title 22 water. Garry Johnson wished everybody Happy Holidays: Merry Christmas. He stated that Andrea has been such a blessing to the City. He doesn't believe how she has been able to stand up to this. The Public Comment period was closed. A. CONSENT AGENDA Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE SPECIAL CLOSED SESSION CITY COUNCIL MEETING HELD ON NOVEMBER 12. 2013; (ADMINISTRATION) ® RECObIMENDATION: Approve as submitted. 3 MINUTES - MORRO BAY CITY COUNCIL - DECEMBER 10, 2013 A-2 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING HELD ON NOVEMBER 12, 2013; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. A-3 APPROVAL OF MINUTES FOR THE SPECIAL CLOSED SESSION CITY COUNCIL MEETING HELD ON NOVEMBER 19, 2013; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-4 APPROVAL OF MINUTES FOR THE SPECIAL CITY COUNCIL MEETING HELD ON NOVEMBER 19, 2013; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-5 APPROVAL OF MINUTES FOR THE SPECIAL CLOSED SESSION CITY COUNCIL MEETING HELD ON DECEMBER 1201 (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-6 RESOLUTION NO. 59-13 ESTABLISHING THE GUIDELINES BY WHICH THE CITY OF MORRO BAY WILL COMPLY WITH THE FEDERAL AFFORDABLE CARE ACT (ACA); (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 59-13; and consider directing staff to ® bring back costs related to a consultant to ensure compliance with ACA. A-7 CITY PROJECT STATUS REPORT; (ADMINISTRATION) RECOMMENDATION: Receive and rile; informational item only. A-8 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS AND DISCUSSION; (ADMINISTRATION) RECOMMENDATION: Receive and rile; informational item only. A-9 STATUS REPORT OF A MAJOR MAINTENANCE & REPAIR PLAN (MMRP) FOR THE EXISTNG WASTEWATER TREATMENT PLAN; (PUBLIC SERVICES) RECOMMENDATION: Receive and file; informational item only. A-10 STATUS UPDATE ON THE PURCHASES OF FIRE DEPARTMENT EQUIPMENT BASED ON MONIES PROVIDED BY THE BERTHA SHULTZ TRUST; (FIRE) RECOMMENDATION: Receive and rile; informational item only. A-11 APPROVAL OF THE GRANT AGREEMENT BETWEEN THE CITY OF MORRO BAY AND SOUTH BAY COMMUNITY POOL ASSOCIATION; (RECREATION & PARKS) 4 MINUTES -MORRO BAY CITY COUNCIL- DECEMBER 10, 2013 RECOMMENDATION: Review and approve the proposed grant agreement between the South Bay Community Pool Association and the City of Morro Bay and direct ® staff to fulfill any associated financial obligations. A-12 RESOLUTION 458-I3 AUTHORIZING CITY STAFF TO SUBMIT A GRANT APPLICATION TO THE CALIFORNIA COASTAL COMMISSION TO PROVIDE FINANCIAL ASSISTANCE FOR AN UPDATE TO THE CITY'S LOCAL COASTAL PROGRAM (LCP) TO REFLECT CURRENT CIRCUMSTANCES AND NEW SCIENTIFIC INFORMATION. INCLUDING NEW UNDERSTANDINGS AND CONCERN FOR THE EFFECTS OF CLIMATE CHANGE; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution 58-13. A-13 APPOINTMENT OF KATHRYN THOMAS TO CITIZENS OVERSIGHT COMMITTEE; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Appoint Kathryn Thomas to fill the vacant position on the Citizens Oversight Committee. A-14 APPROVAL OF FIRE PROTECTION AGREEMENT BETWEEN THE CITY OF MORRO BAY AND DYNEGY MORRO BAY, LLC; (CITY ATTORNEY) RECOMMENDATION: Approve the Fire Protection Agreement ("Agreement') between the City and Dynegy Morro Bay, LLC ("Dynegy"). ® Mayor Irons opened up the public comment period for items on the Consent Calendar. Pandora Nash Kamer spoke on behalf of the South Bay Pool Association stating that after 2 studies, it is never going to be practical for a pool to be built in Los Osos. • As such, they made the decision that the only viable location is Morro Bay. They are anxious to give the City money for a regional pool. She mentioned that a condition to the money would be to allow Los Osos residents never to be charged any more than Morro Bay residents for its use. She asked for support in signing the agreement. Barbara Doerr would love to see a swimming pool in Morro Bay; she would like to ensure that it was of reasonable size and didn't displace other recreational user activities. She feels that a lifetime discount for Los Osos residents should be removed. She is recommending not participating at this time. Meg Crockett wanted to make sure Council was aware that the only wildlife rehabilitation center is located in Site E of the proposed water reclamation facility site. While they support the project, they hope it doesn't happen in Site E. She also asked that they be kept informed as progress'is being made. Joan Solo stated that since the pool has been closed, there has been a gap in aquatic capabilities in our community. She is in support of a community pool. Their gift is important for our community as we have already started strategic partnerships with SLCUSD. 5 MINUTES -MORRO BAY CITY COUNCIL- DECEMBER 10, 2013 The public comment period for the Consent Calendar was closed. ® Mayor Irons pulled Items A-] 0, A-11. A-12 and A-14. MOTION: Councilmember Christine Johnson moved the City Council approve Items A-1. A-2. A-3, A-4, A-5, A-6. A-7. A-8. A-9, and A-L') of the Consent Calendar as presented. The motion was seconded by. Councilmember Nancy Johnson and carried unanimously 5-0. A-10 STATUS UPDATE ON THE PURCHASES OF FIRE DEPARTMENT EQUIPMENT BASED ON MONIES PROVIDED BY THE BERTHA SCHULTZ TRUST; (FIRE) Mayor Irons pulled this item to get a status report from Chief Knuckles. MOTION: Councilmember Nancy Johnson moved to approve the status update on the purchases of Fire Department equipment from monies provided by the Bertha Schultz Trust. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. A-11 APPROVAL OF THE GRANT AGREEMENT BETWEEN THE CITY OF MORRO BAY AND SOUTH BAY COMMUNITY POOL ASSOCIATION; (RECREATION & PARKS) Mayor Irons pulled this item for clarification. Recreation & Parks Director. Joe Woods ® answered the concems brought forth by Council and public comment. MOTION: Councilmember Nancy Johnson moved the City Council approve the grant agreement between the City and the South Bay Community Pool Association. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. A-12 RESOLUTION #58-13 AUTHORIZING CITY STAFF TO SUBMIT A GRANT APPLICATION TO THE CALIFORNIA COASTAL COMMISSION TO PROVIDE FINANCIAL ASSISTANCE FOR AN UPDATE TO THE CITY'S LOCAL COASTAL PROGRAM (LCP) TO REFLECT CURRENT CIRCUMSTANCES AND NEW SCIENTIFIC INFORMATION. INCLUDING NEW UNDERSTANDINGS AND CONCERNFOR THE EFFECTS OF CLIMATE CHANGE: (PUBLIC SERVICES) Public Services Director Rob Livick was asked to elaborate on the grant funding we have received to date. We have received a S250,000 grant from the Ocean Protection Council towards a S360,000 work effort for assessment and re -mapping for vulnerability to sea level rise. This request will build upon that grant to perform additional mapping of ESHA areas. He also recommended that the Resolution be modified to state "...City Manager or designee" as there is an inconsistency between the Resolution and the grant application in Section 2. MOTION: Mayor Irons moved to adopt Resolution 58-13 as amended in Section 2 to read "City Manager or designee". The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. 6 MINUTES - MORRO BAY CITY COUNCIL - DECEMBER 10, 2013 A-14 APPROVAL OF FIRE PROTECTION AGREEMENT BETWEEN THE CITY OF MORRO BAY AND DYNEGY MORRO BAY, LLC, (CITY ATTORNEY) ® Interim City Attorney Anne Russell, provided language to an amendment to this agreement found in 3. "... Further, upen after the emotiveness effective date of DYNEGY's notice of retirement by the California Independent System Operator (currently anticipated to be February 5, 2014),... . MOTION: Mayor Irons moved approval of the Fire Protection Agreement between the City and Dynegy as amended. The motion was seconded by Councilmember Leage and carried unanimously 5-0. MOTION: Mayor Irons made a motion to move Agenda Items D-1 and D-2 up on the agenda so as to be heard prior to Public Hearings. The motion was seconded by Councilmember Leage and carried unanimously 5-0. D. NEW BUSINESS D-1 HARBOR DEPARTMENT RULES AND REGULATIONS: PROPOSED CHANGE TO SLIP REGULATIONS FOR FISHERMEN OWNING TWO QUALIFIED COMMERCIAL FISHING VESSELS: (HARBOR) Harbor Director Eric Endersby presented the staff report. ® The public comment period for Item D-1 was opened: seeing none, the public comment period was closed. Councilmember George_ Leage felt this was long overdue and it only applies to a small number of fishermen. Councilmember Christine Johnson was pleased with the safeguards that the Harbor Advisory Board put into the language and feels comfortable in supporting it. MOTION: Councilmember Nancy Johnson, in the interest of supporting the Harbor Advisory Board, moved approval of the proposed change to slip regulations for fishermen owning two qualified commercial vessels. The motion was seconded by Councilmember Leage and carved unanimously 5-0. D-2 PROPOSED AMENDMENT TO THE HARBOR ADVISORY BOARD BY-LAWS ALLOWING THE DESIGNATED MORRO BAY COMMERCIAL FISHERMAN'S ORGANIZATION SEAT TO HAVE ADDITIONAL ALTERNATE MEMBERS APPOINTED IN ORDER TO ENSURE THE ORGANIZATION'S ATTENDANCE AND PARTICIPATION: (HARBOR) Harbor Director Eric Endersby presented the staff report. The public comment period for Item D-2 was opened. 7 MINUTES - hIORRO BAY CITY COUNCIL - DECEMBER 10, 2013 Susan Stewart stated that this makes sense as working fishermen are in and out at different times. ® The public comment period for item D-2 was closed. Councilmember Smukler stated that it is the intent of that position to represent. as much as possible; the fishing interests and the Morro Bay Commercial Fishing organization and this amendment will help with that. Councilmember Christine Johnson stressed that the alternate members should reach out to stay as informed on the issues as possible which should create as much consistency as possible. MOTION: Councilmember Smukler moved to approve the Harbor Advisory Board By-laws as amended. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. B. PUBLIC HEARINGS B-1 REVIEW OF THE. SECOND PUBLIC DRAFT OPTIONS REPORT FOR THE NEW WATER RECLAMATION FACILITY (WRF): (PUBLIC SERVICES) Public Services Director Rob Livick presented the staff report. John Rickenbach and Mike Nunley presented a power point presentation whereby they addressed the key changes since the first draft; summarized the revised options; made recommendations for ® nest steps and took additional public input. Based on the previous presentation and comments received, they feel the goals for the new WFR are to produce tertiary treated wastewater; reclaim wastewater for a variety of purposes; allo,.v for onsite composting; design for energy recovery; and design to treat for contaminants of emerging concern. The overall site rankings are now as follows: —Morro Valley; Power Plant; —Chorro Valley;--Giannini Property; —Chevron; —Panorama; and lastly, CMC. They also spoke on rankings if cost was not an issue as well as if environmental issues were the only concern. They spoke on the advantages and challenges. of the sites. They wanted to stress that the costs intended to show a rough order of magnitude; are useful to show relative costs from site to site: are not based on detailed design: reflect a mid- point in a wide range; and, could change up or down depending on design. Their recommended approach was to establish goals for the new WRF; to choose a preferred and backup sites; pursue a parallel path to study a regional option at CMC; perform due diligence at the preferred site; and lastly, to modify the approach if the regional option is viable. Long term later actions include reaching an agreement with property owners: identifying and conducting needed technical studies; hiring a design engineer; project design: followed by funding, site acquisition, CEQA, permitting and construction. Mayor Irons opened up the public comment period for Item B-1. Dave Burton thanked Mr. Rickenbach for including his estimate in building on the current site: he also asked for clarification on a couple of items: the 30% contingencv still seemed very high; and, he compared that to the Dudek report which uses much lower numbers. He would like to see a chart of ranges of contingencies. He also spoke on trying to get real numbers on advanced treatment as much that is being spoken about is just hearsay. Finally he spoke on costs of basic 8 MINUTES - MORRO BAY CITY COUNCIL - DECEMBER 10, 2013 tertiary treatment which he also compared to the Dudek report. He would like to see charts and/or a small appendix on this as well. ® Eliane Wilson is concerned with the Chorro Valley site, she didn't see any mention of the large senior housing facility that is currently at the beginning of Teresa: she believes it's premature to talk about a 1�`. 2"d or 3`d choice as'a full environmental review should be done first: she is confused by the nest step as she doesn't see enough potential environmental impact and mitigation consequence information. Julie Thomas is concerned with the odor issue: the Giannini. Panorama and Power Plant sites have potential for odor problems with no way to mitigate the odor for the residents and neighborhoods. She feels those sites should be taken out of consideration for that reason. Bill Martoney stated that odor is important. Hand in hand with the odor issue is the technology chosen. MBR'is 100% odor free. He feels that the technology chosen should determine the site location. He has always been a proponent of the Tri-W location. He also feels it important to consider an ag coop with local farmers to "share crop" a selected site. Susan Stewart feels that since sewer rates are based on water usage, irs important to consider businesses that don't have a choice in their water usage such as restaurants and hotels. Cost is going to be the key so, we need to look at what we can afford as we don't want to chase everybody out. Janice Peters mentioned costs with the use of the MBR method as it is more costly in ® maintenance. It's not just your initial costs that need to be taken into consideration: it's the down the road costs as well. She hopes that Council will please take into consideration what the potential increases to sewer rates could mean to things like hotel rates which would also impact tourist dollars. The public comment period for Item 13-1 was closed. Mr. Rickenbach and Mr. Nunley responded to the public and Council's comment questions and concerns. Councilmember Smukler is still concerned that there are ongoing discussions about the existing site as a viable option. The most important thing we need to end up with this process with a permitable project at a permitable site. Cbnsistency with the LCP and Local Coastal Plan is a key. Visual impacts definitely are an issue with some of our sites that we need to keep the Coastal Commission in the loop with. With regards to costs, he wants to tie those into the stated goals and his feeling tonight is we should talk about how to be more specific about phasing in reclamation as we can afford it. Councilmember Christine Johnson stated that it's important for us to remember as we move forward, if we are using the estimated project cost total figures, the $90 — 160 million, then it's also necessary for us to use the $83 million for the current site. That gives us an apples to apples comparison. She stated that the City is committed to the goal of water reclamation back in 1994 with an LCP amendment. 9 MINUTES - MORRO BAY CITY COUNCIL- DECEMBER 10, 2013 Mayor Irons restated the recommended approach and then suggested adding the following to the goals: come back with a report within 60. days; come back with a schedule and if there is a ® phased in approach, adjust the cost that reflects that; and, come back with information regarding the timing of a project manager. Councilmember Smukler agrees with a report coming back within 60 days which would include an initiation of a constraints analysis; he agrees it's good to get an analysis of the project management component; seeing a schedule and cost estimate is good and likes the concept of the phased approach; and, would like to see a group of citizens as a committee that could be of assistance to the project. Councilmember Nancy Johnson agrees we need to move forward with choosing a preferred and back-up site. Looking at additional location opportunities she reiterated the possibility of looking at additional sites in the City — property by Mission Linen, the storage yard by end of Errol St. Associated Pacific or part of Lila Keiser Park and/or land adjacent to MBHS and Highway 1. Council began their discussion of their preferred site locations. Councilmember Leage asked Mr. Rickenbach where he would build it, he responded Morro Valley. Councilmember Christine Johnson confirmed concurrence with a 60 day schedule for a return report to include the initiation of a constraints analysis, that we should adjust costs to reflect phased approach, when to hire a project manager and a citizen advisory committee. She would select Morro Valley #1, with Chorro Valley and Giannini as backups. She would also like to see us move forward in a parallel path with CMC, just to check on its potential. Councilmember Smukler would like to see onsite composting but also feels the need to adjust this goal, based on the need for the facility to be compatible with the neighborhoods and neighboring land uses. He selected Mono Valley 91, with alternatives being Chorro Valley and Giannini. He also would like to see a parallel tract with CMC that doesn't delay forward progress on these other sites. Public Services Director Rob Livick stressed that he doesn't believe that having a plan to supply reclaimed water will meet Coastal's goals. There needs to be some viable reclaimed water backbone project included. Mayor Irons is supportive of the goals and language adjustments made. He selected Mono Valley 91, with Chorro Valley and Giannini as alternatives. Councilmembers Nancy Johnson and Leage agree with the recommendations of the site selection. MOTION: Mayor Irons moved to receive the report and presentation; to direct staff on goals that were stated with the following additions: 6) constraints analysis report and ® schedule back within 60 days; 7) addition of a project manager timeline; and 8) addition of a technical advisory committee; 9) neighborhood compatibility; that the order of 10 MINUTES - MORRO BAY CITY COUNCIL - DECEMBER 10, 2013 preferred site selection be 1) Morro Valley; 2) Chorro Valley; and 3) Giannini; and that we pursue a parallel path with CMC. The motion was seconded by Councilmember ® Smukler and carried 3-1-1 with Councilmember Leage voting no and Councilmember Nancy Johnson abstaining. B-2 REVIEW OF CITY COUNCIL REQUESTED OUTSIDE LEGAL SERVICES; STATUS AND COST; (ADMINISTRATION) City Manager Andrea Lueker presented the staff report. Mayor Irons opened up the public comment period for Item B-2; seeing none, the public comment period was closed. There was no discussion or action taken on this item. The item was reviewed and filed. C. UNFINISHED BUSNESS - NONE E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS Mayor Irons requested a discussion and consideration of hiring a consultant to help develop funding'sources for Water Reclamation Facility opportunities; Councilmembers Smukler and Christine Johnson concurred. Councilmember Smukler requested a review of the reporting process for funding of the Morro Bay 50'h; Mayor Irons and Councilmember Christine Johnson concurred. Councilmember Smukler requested a follow-up to the CHC closure to include an outreach and invitation to a Council meeting to discuss options for the public; there was unanimous consensus. for this item to be heard. ADJOURNMENT The meeting adjourned at 10:1 lam. Recorded by: amie Boucher Citv Clerk MINUTES - MORRO BAY CITY COUNCIL- DECEMBER 10, 2013 City of Morro Bay ® City Council Agenda Mission Statement The City of Alorro Bay is dedicated to the preservation and enhancement of the quality of lice. The Cityshall 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 CLOSED SESSION MEETING TUESDAY, DECEMBER 10, 2013 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER SUMMARY OF CLOSED SESSION ITEMS — The klavor Hill read a summary of Closed Session items. CLOSED SESSION PUBLIC COENIMENTS — Members of the public may address the City Council on any matter that is listed on this Closed Session agenda. Unless additional time is authorized by the City_ Council, remarks shall be limited to three minutes. THE CITY COUNCIL WILL MOVE TO CLOSED SESSION CS-1 GOVERNMENT CODE SECTION 54956.8: 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 parcel. Property: Lease Site 30W-33W; Bay Front Marina, Water Lease Adjacent to 201 Main Street Negotiating Parties: Coakley and City of Morro Bay Negotiations: Lease Terms and Conditions CS-2 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR: Conference ,vith City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the following employee organizations and giving instructions to the Designated Representative: Management Employees and Police Officer's Association (POA). CS-3 GOVERNMENT CODE SECTION 54957(b)(1) — PUBLIC EMPLOYMENT: Title: Citv Manager CONVENE TO OPEN SESSION — Announcement of reportable action from closed session, if any. DATED: December 5. 2013 f�N S "^ ana Swanson. Deputy City Clerk N COMPLIANCE WITH THE AMERICANS WITH DISABILITY ACT. IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE N A CITY MEETING. PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. ® MINUTES — MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING — DECEMBER 10, 2013 CITY HALL CONFERENCE ROOM — 5:00PM PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Leage Noah Smukler STAFF: Andrea Lueker Anne Russell Eric Endersby ESTABLISH QUORUM AND CALL TO ORDER AGENDA NO: A-3 MEETING DATE: 1/14/2014 Mayor Councilmember Councilmember Councilmember Councilmember City Manager Interim City Attomey Harbor Director SUMMARY OF CLOSED SESSION ITEMS - The Mayor read a summary of Closed Session items. CLOSED SESSION PUBLIC COMMENTS - Mayor Irons opened the meeting for Public ® Comment. Cathy Novak; representing the Coakleys, stated that their request for the boundary line adjustment is to the wharf railing which is very close to the original State Tidelands Grant Line. Because of the grant line, the property owners have been paying property taxes on this entire area for nearly 60 years. The Coakley's are just trying to resolve this issue and have offered a compromise line and fair compensation to the City for this area. Bill Martoney stated that the grant line is a concern. He stated that any grant line adjustment would affect all properties from lease site 37 south and we may have to get that approved by State Lands. Bruce Keogh thanked the Council, City Manager and Finance Director on the concessions made to date regarding negotiations. The Management Group provided staff and Council with a letter providing background on the 3% deferred salary from back in 2009. They are hoping for resolution on this issue. Sandy Bean, representing the buyers, feels we are close to putting together a lease that is a win - win for the City and property owners. She is suggesting using the line that was aligned before. Mr. Coakely says he is willing to pay for land he believes he already owns. The Public Comment period was closed. The City Council moved to Closed Session and heard the following items: ® CS-1 GOVEP.NMENT CODE SECTION 54956.8: 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 parcel. Property: Lease Site 30W-33W; Bay Front Marina, Water Lease Adjacent to 201 Main Street Negotiating Parties: Coakley and City of Morro Bay Negotiations: Lease Terms and Conditions CS-2 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 following employee organizations and giving instructions to the -Designated Representative: Management Employees and Police Officer's Association (POA). CS-3 GOVERNMENT CODE SECTION 54957(b)(1) — PUBLIC EMPLOYMENT: Title: City Manager CITY COUNCIL CONVENED TO OPEN SESSION — The City Council convened to open session; Interim City Attorney, Anne Russell reported that with regards to all closed session items, no reportable action under the Brown Act was taken. ® ADJOURNMENT The meeting adjourned at 5:55pm. u Recorded by: Jamie Boucher City Clerk MINUTES - MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING - DEC. 10, 2013 ® 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 CLOSED SESSION MEETING TUESDAY, DECENMER 3, 2013 VETERAN'S MEMORIAL BUILDING— 10:00 A.M. 209 SURF STREET, MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER SUMALkRY OF CLOSED SESSION ITEMS — The Nlavor will read a summary of Closed Session items. CLOSED SESSION PUBLIC COMMENTS — Members of the public may address the City Council on any matter that is listed on this Closed Session agenda. Unless additional time is Is authorized by the City Council, remarks shall be limited to three minutes. THE CITY COUNCIL WILL MOVE TO CLOSED SESSION CS-1 Title: City Manager CS-2 GOVERNMENT CODE SECTION 54957(b)(1) — PUBLIC EMPLOYMENT: Title: City Manager CONVENE TO OPEN SESSION — Announcement of reportable action from closed session, if any. DATED: November 27, 2013 Dana Swanson, Deputy City Clerk IN COMPLIANCE WITH THE AMERICANS WITH DISABILITY 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. AGENDA NO: A-5 MEETING DATE: 12/10/2013 Is SPECIAL — MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING — DECEMBER 3. 20 VETERAN'S MEMORIAL BUILDING — 10:00 A.M. PRESENT: Jamie Irons Mayor Christine Johnson Councilmember Nancv Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Anne Russell Interim Cirv_ Attorney_ Jamie Boucher City Clerk ESTABLISH QUORUM AND CALL TO ORDER SUMMARY OF CLOSED SESSION ITEMS - The Mayor read a summary of the Closed Session items. CLOSED SESSION PUBLIC COMMENTS - Viayor Irons opened the meeting for Public ® Comment. Carla Wixom stated that there are very few employees these days that can boast of a 27 year career with the same employer. This speaks volumes to the job that Andrea has done. Janice House stated that Council doesn't understand that they are temporary, part-time employees of the City. The actions being taken will be bad for the City for many years. She stated that other employees are in fear that they may be next. She thanked Andrea Lueker for all her years of service and for making Morro Bay a better place. Bill Peirce announced that the flowers given to Ms. Lueker were given to her as a tribute to her many years of service. She has worked well for the City. This is truly unfortunate. Homer Alexander stated that in his talks with Morro Bav citizens. thev universalh agree that the City provides great services. Without strong leadership at the top, that doesn't happen. Rick Grantham stated that based on the abundance of flowers at ivts. Lueker's desk. someone is loved in this building. He thanked her for the patience she showed him as a new Councilmember in his efforts to understand City government. Judy Thompson fully supports the actions of the majority of the Council. She thanked the majority for making this a much more transparent City to live. 11 Marlene Peter has worked with Andrea on the Morro Bay Community Foundation for years. All she could say at this point was "Thank You". Stan House stated that there was nothing transparent about these proceedings. He went on to say that Andrea could leave with her head held high as she has done a fantastic job, has been good to the people, and has volunteered for many community activities. tifaureen Kispersky stated that hers would be an extremely_ tough act to follow. if it's even possible. Keith Taylor thanked Andrea Lueker for all the work that she's done for our City. All love you and appreciate all you've done. Garry Johnson met Andrea in the 1990's and has always been impressed by her work. He feels that if the newcomers had been in town back then, this wouldn't be happening. He thanked Andrea very much. He encouraged registered voters to sign the recall petition. John Solu thanked Andrea for her service for the past 27 years. He feels the majority Council has created a new word in the dictionary — management by fear. Janice Peters presented an extended list of City Manager attributes — all of which Andrea possesses. Andrea has total dedication and love for this City. She feels that the majority Council ® hasn't talked to her enough: she can only be as good of an employee as you let her be. She finished by saving that it has been a pleasure to work with Andrea and she.has been wonderful to the City. Joan Solu said that there is a number that Andrea can add to her resume — the number 1500 which represents the number of children who have benefitted from scholarships given out by the Morro Bay Community Foundation — because of you. The public comment period was closed. The City Council moved to Closed Session and heard the following items: CS-1 GOVERNMENT CODE SECTION 54957(b)(1) - PUBLIC EMPLOYEE DISCIPLINE[ DISNIISSAL/RELEASE/I'ERvtINATION OF CONTRACT: Title: City Manager CS-2 GOVER\'vIENT CODE SECTION 54957(b)(1) — PUBLIC ENIPLOYNMENT: Title: City Manager CITY COUNCIL CONVENED TO OPEN SESSION — The City Council convened to open session: Interim City Attorney Anne Russell reported that with regards to the items heard in Closed Session, no reportable action under the Brown Act was taken and that Mr. Simas was to continue to negotiate a separation agreement with the City Manager. MINUTES - MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING - DECEMBER 3, 2013 ® ADJOURNMENT The meeting adjoumed at 12:05 p.m. Recorded by: / ie Boucher City Clerk 0 E MINUTES - MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING - DECEMBER 3, 2013 ® 0 City of Morro Bay Morro Bay, CA 93442 (805) 772-6205 U CITY OF MORRO BAY CITY COUNCIL NOTICE OF CANCELED MEETING THE REGULAR CITY COUNCIL MEETING SCHEDULED FOR TUESDAY, NOVEMBER 26, 2013 HAS BEEN CANCELED The next regularly scheduled meeting will be held on Tuesday, December 10, 2013, 6:00 p.m., at the Veterans Hall . FINANCE ADMINISTRATION 595 Harbor Street 595 Harbor Street FIRE DEPT. 715 Harbor Street PUBLIC SERVICES 955 Shasta Avenue HARBOR DEPT. 1275 Embareadero Road CITY ATTORNEY 595 Harbor Street POLICE DEPT. 850 Nlorro Bay Boulevard RECREATION & PARKS 1001 Kennedy Way ® . City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. SPECIAL: CLOSED SESSION MEETING TUESDAY, NOVEMBER 19, 2013 VETERAN'S MEMORIAL BUILDING — 4:30 P.M. 209 SURF STREET, MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER SUiNLMARY OF CLOSED SESSION ITEiMS — The Mayor will read a summary of Closed Session items. ® CLOSED SESSION PUBLIC COMMENTS — Members of the public may address the City Council on any matter that is listed on this Closed Session agenda. Unless additional time is authorized by the City Council, remarks shall be limited to three minutes. To increase the effectiveness of the Public Comment Period. the followine rules shall be followed: • When recognized by the Mavor; 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. • Arty 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. THE CITY COUNCIL WILL MOVE TO CLOSED SESSION CS-1 GOVERNMENT CODE SECTION 54956.8 - 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 parcel. • Property: 307 Morro Bay Blvd. • Negotiating Parties: Ford-Durrer. dba Grandma's Frozen Yogurt & Waffle Shop and City of Morro Bay • Negotiations: Lease Terms and Conditions CS-2 GOVERNMENT CODE SECTION 54956.9(d)(2) — CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION: Exposure to litigation exists based upon existing facts and the legal advice of legal counsel as to one matter. • Kevin Rice, Public Records Request CS-3 GOVERNMENT CODE SECTION 54957(b) PUBLIC EMPLOYEE DISCIPLINT/ DISMISSAL/RELEASE/TERNIINATION OF CONTRACT: Title: City Manager CS-4 GOVERNMENT CODE SECTION 54957(b)(1) — PUBLIC EMPLOYMENT: Title: City Attorney and City Manager ® CONVENE TO OPEN SESSION — Announcement of reportable action from closed session._if any. DATED: November 15, 2013 J oucher. City Clerk IN COMPLIANCE WITH THE AMERICANS WITH DISABILITY ACT, IF YOU ?TEED 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. I] MINUTES — MORRO BAY CITY COUNCIL ® SPECIAL CLOSED SESSION MEETING — NOVEMBER 19, 2013 VETERAN`S MEMORIAL BUILDING — =4:30 P.M. PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Leaee Noah Smukler STAFF: Andrea Lueker Anne Russell Jamie Boucher Amy Christey Susan Slavton Eric Endersbv ESTABLISH QUORUM AND CALL TO ORDER SUMMARY OF CLOSED SESSION ITEMS Session items. AGEI`DA \O: A-3 MEETING DATE: 12/10/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager Interim City Attorney City Clerk Police Chief Administrative Services Director Harbor Director The Mayor read a summary of the Closed Mavor Irons stated that CS-J would not be heard this evening as it is not ready to be discussed ® and will be continued. CLOSED SESSION PUBLIC COMMENTS - Mayor Irons opened the meeting for Public Comment. Carla Wixom wanted to take the opportunity to let people know City Manager Andrea Lueker's accomplishments over the years: created cohesive top notch department head team; obtained millions of dollars in grants: part of bringing the Fire Station; Teen Center, Harborwalk, Round - a -Bout; etc. under her watch: worked with unions towards pension reform:' consolidation of departments; created a community quota fishing non-profit group; reinstituted the goal setting process: and helped create the Community Foundation. She then thanked Andrea for her service: she's sorry to see her getting repaid in this way. Janice Peters stated that reference has been made by the Mayor's supporters to the "good ole boys club" vet those Councils, diverse as they were, accomplished some wonderful things for the City. This Council, regarding the Citv Manager and Citv Attorney; despite a negative response from the citizens are continuing on with their plan possibly feeling that the emotions have diminished as less and less people are attending meetings. Not true, people aren't here not because they don't care but because the Council majority is set on this vendetta, despite the cost both financial and emotional to this community. In August. 2012 she published an opinion piece warning that anv new location for the sewer plant would potentially double the costs of the sewer bills. Mayor -elect Irons responded to this piece by stating that this viewpoint is fear based. ® inaccurate and divisive to the community. She submits that with Council's actions. this is exactly what is going on right now. Hank Roth stated that the Council is wrong in what they are doing; and they have been ignoring ® the people. The opposition here is nothing compared to what we have gotten from the Surfriders Foundation or the Outfall Group in previous years. He understands there are different views which are okav but to spend $20,000 to accomplish nothing is wrong. The public comment period was closed. The Citv Council moved to Closed Session and heard the following items: CS -I GOVERNMENT CODE SECTION 54956.8 -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 parcel. • Property: 307 Morro Bay Blvd. • Negotiating Parties: Ford-Durrer_. dba Grandma's Frozen Yogurt & Waffle Shop and City of Morro Bav • Negotiations: Lease Terms and Conditions CS-2 GOVERNMENT CODE SECTION 54956.9(d)(2) — CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION: Exposure to litigation exists based upon existing facts and the legal advice of legal counsel as to one matter. • Kevin Rice. Public Records Request ® CS-3 GOVERNMENT CODE SECTION 54957(b) - PUBLIC EMPLOYEE DISCIPLINE/ DISMISSAL/RELEASE/TERMINATION OF CONTRACT: Title: City Manager CS-4 GOVERNMENT CODE SECTION 54957(b)(1) — PUBLIC EMPLOYMENT: Title: City Attorney and City Manager CITY" COUNCIL CONVENED TO OPEN SESSION — The City Council convened to open session: Interim City Attorney Anne Russell reported that with regards to the items heard in Closed Session, no reportable action under the Brown Act was taken. ADJOURNMENT The meeting adjourned at 6:03pm. Re orded bv: amie Boucher Citv Clerk E MINUTES - MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING - NOVEMBER 19, 2013 ® City ®f Morro Bay City Council Agenda Alission 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 TUESDAY, NOVEMBER 19, 2013; 5:30 P.M. VETERAN'S HALL - 209 SURF STREET, MORRO BAY, CA I. ESTABLISH QUORUM AND CALL TO ORDER II. MObIENT OF SILENCE III. PLEDGE OF ALLEGIANCE ® IV. PUBLIC COMMENT - Members of the audience wishing to address the Council on Citv business matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda. but unable to stay for the item, may also address the Council at this time. To increase the effectiveness of the Public Comment Period_. the following rules shall be followed: • When recognized by the Mavor, 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 anv individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against anv 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 cam 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. ® V. REVIEW, DISCUSSION AND DIRECTION OF DRAFT REQUEST FOR PROPOSAL FOR INTERIM CITY ATTORNEY VI. APPROVAL OF SUBLEASE OF 307 MORRO BAY BLVD Tb GRAN'DMA'S FROZEN YOGURT AND WAFFLE SHOP (LE\`NY DURRER AND BEVERLY FORD-DURRER) VII. 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 772-6205 FOR FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL 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. DATED: November 15, 2013 JaniAoucher, Citv Clerk MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETNG — NOVEMBER 19. 2013 VETERAN'S MEMORIAL HALL— 5:30 P.M. Mayor Irons called the meeting to order at 6:11p.m. PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Leage Noah Smukler STAFF: Andrea Lueker Anne Russell Jamie Boucher Susan Slayton Rob Livick Amy Christey Joe Woods Eric Endersby AGENDA NO: A-4 MEETING DATE: 12/10/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager Interim City Attorney_ City Clerk Administrative Services Director Public Services Director Police Chief Recreation & Parks Director Harbor Director ® I. ESTABLISH QUORUM AND CALL TO ORDER II. MOMENT OF SILENCE III. PLEDGE OF ALLEGIANCE IV. PUBLIC COMMENT The public comment period for the special meeting was opened; seeing none, the public comment period was closed. V. REVIEW; DISCUSSION AND DIRECTION OF DRAFT REQUEST FOR PROPOSAL FOR INTERIM CITY ATTORNEY Administrative Services Director Susan Slayton presented the staff report. Interim City Attorney Anne Russell made some recommendations to be added to the draft RFP which consisted of a 50 hour/month retainer with all excess hours be quoted at the same or different rate: provide for 4 hours of office hours in Morro Bay twice a month, hopefully to coincide with Council meetings: and proposal deadline no later than the 2"d week in January. Councilmember Christine Johnson proposed the following edits to the RFP: pace 7, G, .42, add the follo«ing to the end "... legal costs so that City legal costs are held to a minimum"; 44 from Hollister page 6. insert "Describe how you would proactively advise the City Council ® about legal developments or issues of concern, without being asked'; insert 48 from Hollister pace 6. "How do you evaluate the costs/benefits of litigating or settling cases?"; insert T9 ® from Hollister page 6. "How would you evaluate whether to use another attorney from another firm to handle a case, provide expert advice, or provide other needed services? How will fees enter into your judgment of who to use in your role as City Attorney representing the interests of the City of Morro Bay?"- our page 7, I 1) would suggest 3 clients instead of 5 clients and would sad 5 years instead of 3 years; our page 4. 44 would insert "Provide legal advice, telephone, email and personal consultations with members of the City Council and City Staff Manager'_ also 44 insert. 'Provide legal advice to staff upon request of the City Manager.': and =16. insert "Communicate with the press when authorized to do so by the City Council or City Manager.". Ms. Russell suggested that re: page 4, 94, it would be best to leave that to the discretion of the Citv Manager as it would be important at times to have a department head meet with the City Attorney; maybe add language that consultation would be during office hours. Mayor Irons, on page 10 had questions in regards to the review and selection process; he'd like to maintain a 2 person sub -committee from just Council and facilitation of a designee. With regards to process on A) there are specific dates that need adjusting; he'd like to see something to effect of seeing some kind of a score card to ensure consistent questions and rating criteria. Councilmember Nancy Johnson stated that it was important to either include all of Council in the decision making process, not just 2 people; or have a committee of 2 Councilmembers. one from the majority and one from the minority as well as experienced staff sit on the committee. ® Councilmember Christine Johnson was comfortable with 2 Councilmembers and Ms. Slayton and Ms. Russell. Councilmember Nancy Johnson feels that a) all Councilmembers should look at all the proposals, providing a ranking of each; b) the committee (2 Council and staff) receives these and goes through a final ranking narrowing the field down: and, c) the proposals come back to the entire Council for final selection and interviews. Interim Citv Attorney Anne Russell suggested that in the section that stated the contract would be for up to 6 months, should instead say that this could lead to a more permanent or longer term arrangement. Council discussed who should be named to the 2 person sub -committee. Councilmember Nancy Johnson and Christine Johnson volunteered. MOTION: Mayor Irons moved to proceed with the RFP with the recommended changes and approved sub -committee members of Nancy Johnson and Christine Johnson. The motion was seconded by Councilmember Leage and carried unanimously 5-0. VI. APPROVAL OF SUBLEASE OF 307 MORRO BAY BLVD TO GRANDMA'S FROZEN YOGURT AND WAFFLE SHOP (LENNY DURRER AND BEVERLY ® FORD-DURRER) MINUTES - MORRO BAY CITY COUNCIL-NOVEMBER 19, 2013 Interim Citv Attomev Anne Russell presented the report. The only major change being made is a request by the sub- tenant to reduce the rent based on costs of maintaining the restroom. Ms. Russell recommended that language be deleted and that some language acceptable to the sub- tenant, the right to terminate if the City was not amenable to the rent reduction be inserted. This can be found in paragraph 3. MOTION: ' Councilmember Nancy Johnson moved approval of the lease as recommended. The motion was seconded by Councilmember Leage and carried unanimously 5-0. VII. ADJOUFNI LAMENT The meeting adjourned at 6:47p.m. Recorded by: Allk�� Jamie Boucher Citv Clerk u 3 MINUTES - MORRO BAY CITY COUNCIL -NOVEMBER 19.2013 ® Cityof Morro Bay Y City Council -Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. SPECIAL CLOSED SESSION MEETING TUESDAY, NOVEMBER 12, 2013 VETERAN'S MEMORIAL BUILDING - 4:00 P.M. 209 SURF STREET, MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER SUMMARY OF CLOSED SESSION ITEMS — The Mayor will read a summary_ of Closed Session items. ® CLOSED SESSION PUBLIC COMMENTS — Members of the public may address the City Council on any matter that is listed on this Closed Session agenda. Unless additional time is authorized by the Citv Council, remarks shall be limited to three minutes. THE CITY COUNCIL WILL MOVE TO CLOSED SESSION CS-1 GOVERNMENT CODE SECTION 54956.8 - 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 parcels. • Property: Lease Site 53-56/53W-56W; Estero Landing, Inc. located at 501 Embarcadero Negotiating Parties: Ken Scott and City of Morro Bay Negotiations: Lease Terms and Conditions • Property: 307 Morro Bay Blvd. Negotiating Parties: Ford-Durrer. dba Grandma's Frozen Yogurt & Waffle Shop and Citv of Morro Bav Negotiations: Lease Terms and Conditions 11 O CS-2 GOVERNMENT CODE SECTION 54956.9(d)(2) — CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION: Exposure to litigation exists based upon existing facts and the legal advice of legal counsel as to two matters. Under Government Code Section 54956.9(2), the name of the possible litigation is Withheld as disclosure of it would jeopardize the City's ability to conclude existing settlement negotiations to its advantage. CS-3 GOVERNMENT CODE SECTION 54957(b) - PUBLIC EbIPLOYEE DISCIPLINE/ DISMISSAL/RELEASE/TERMINATION OF CONTRACT: Title: City Attorney and City, Manager CS-4 GOVERNMENT CODE SECTION 54957(b)(1) — PUBLIC EMPLOYMENT: Title: Citv Attornev CONVENE TO OPEN SESSION — Announcement of reportable action from closed session. if any. DATED: November 7. 2013 GI ILG,�.�«-So iJ ®Dana Swanson. Deputy Citv Clerk IN COMPLIANCE WITH THE AMERICANS WITH DISABILITY ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING. PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 11 MINUTES — MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETNG — ® NOVEMBER 12. 2013 VETERAN'S MEMORIAL BUILDING — 4:00PM PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Lease Noah Smukler STAFF: Andrea Lueker Anne Russell Jamie Boucher ESTABLISH QUORUM AND CALL TO ORDER AGENDA NO: A-1 MEETING DATE: 12/10/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager Interim City_ Attorney City Clerk SUMMARY OF CLOSED SESSION ITEMS - The Mayor read a summary_ of the Closed Session items. CLOSED SESSION PUBLIC COMMENTS - Mayor Irons opened the meeting for Public Comment. Bridgett Kessling stated that during her 27 years with the City, she felt very fortunate to be part of ® the City team. Now she feels sadness and fear from Citv co-workers. It wiil be all of the citizens of the City who will be paving the extra money needed to fire the Citv Attornev and Citv Manager. She would rather see the money spent on infrastructure needs. Gam' Johnson asked what the overall plan was for the termination of Andrea Lueker and how is Council going to hire a replacement. He stated that he is against this termination feeling that the City ivianaser has done an excellent job of keeping the City above water in bad fiscal years. He also stated that this process has disrupted City employees and their families and is turning the City upside down. Jeremiah O'Brien thanked Andrea for the incredible job she has done in all the years she's been with Morro Bay. He can hardlv envision Morro Bav without her: she are a breath of fresh air in City Hall and all appreciate the hard work she's done. He stated that this is the first time in 34 years that he has been disgusted with the activities. Bill Peirce stated that it was an honor to work for Andrea Lueker. In reference to the personnel issues before you today. "this is nuts". Keith Tavlor stated that it isn't too late to reconsider this idea. People who work with her respect her: she has helped service groups over the years: and she has volunteered for many_ community events. He wished Andrea good luck. ® Stevie Anderson thanked Andrea Lueker for taking care of our City and told her she can hold her head high. Kathv Welles stated that this new Council has been in place for 2 months and she has seen 2 things during that time: on small issues, you can't make decisions: but, if there is a big decision, it is clear that your mind was already made up before you took office. Those decisions will cost us hundreds of thousands if not millions of dollars. She doesn't feel we will be able to hire a City Manager or ® City Attorney with all the chaos going on. She has never seen the City so divided. She thanked Andrea Lueker and Rob Schultz for their fine service to the community. Rick Grantham thanked and congratulated those who put on the Veteran's Day Celebration. He announced the Thanksgiving Day Dinner being held Thanksgiving Day from 1-3pm. He stated that hard work and doing the right thing used to be rewarded. He is sorry to see this; it's a sad state of affairs for us all. y Janice Peters really thought that when you had to hire 3 attorneys to effect Rob's termination, you would have handled Andrea's termination logically; by recruiting her replacement before she was let go to at least maintain continuity in City operations. If this is the last time that Andrea is going to be sitting in that seat. Ms. Peters wanted say that Andrea has been an excellent City_ Manager who led us through rough budget years and kept us cooperative and cohesive. It was a personal honor and pleasure to work with her and will miss her and so will our Citv. Joan Solu stated the residents are fortunate to enjoy excellent City services. The City Manager and City Attorney are largely responsible for making those services happen on a day to day basis. Those of you making this decision to terminate the top 2 executives without cause seem to be doing so based on a personal agenda that the residents and community are unaware of This process has been a lingering and lethargic. She feels firing these people for following the direction of the 3 previous City Councils is not a reason. She thanked Andrea for her grace and courage under the enormous amount of pressure that the majority of Council has placed her under. ® Dan Costlev stated that Andrea Lueker had the foresight at the time about the power plant, taking those funds that would be reduced and placing them in an emergency account. He just returned from Fullerton. he stated that they have been following this in Fullerton and they support what we are doing here. Carla Wixom allowed Bridgett Kessling her 3 minutes. Bridgett Kessling wanted to thank Andrea Lueker for their time together. Andrea was the best City Manager that Bridgett had ever worked with. She wished Andrea good luck. Lvnda Merrill stated she believes in the Council and supports your decisions this afternoon. She wanted Council to know that she appreciates what they are about to do. She stated that a new and fresh look at our City is difficult for some to stomach but knows this will be a better place to live. Julianna Epperly is from Los.Osos. When she first moved here, Mr. Yates was titayor and he was fabulous. She has had dealings with Andrea and she is wonderful. She welcomed the Morro Bav residents to "being Los Osos' She stated that if she were a resident of Morro Bay, she would sign the recall petition. The public comment period was closed. The Citv Council moved to Closed Session and heard the following items: MINUTES - MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING - NOVEMBER 12, 2013 CS-1 GOVERNMENT CODE SECTION 54956.8 - 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 parcels. Property: Lease Site 53-56/53W-56W; Estero Landing, Inc. located at 501 Embarcadero Negotiating Parties: Ken Scott and Citv of Morro Bav Negotiations: Lease Terms and Conditions Property: 307 Morro Bay Blvd. Negotiating Parties: Ford -Durres dba Grandma's Frozen Yogurt & Waffle Shop and City of Morro Bay Negotiations: Lease Terms and Conditions CS-2 GOVERNMENT CODE SECTION 54956.9(d)(2) — CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION: Exposure to litigation exists based upon existing facts and the legal advice of legal counsel as to two matters. Under Government Code Section 54956.9(g), the name of the possible litigation is withheld as disclosure of it would jeopardize the City's ability to conclude existing settlement negotiations to its advantage. CS-3 GOVERNMENT CODE SECTION 54957(b) - PUBLIC EMPLOYEE DISCIPLINE/ DISMISSAL/RELEASEfrERiVIIN'ATION OF CONTRACT: Title: City Attorney and City Manager ® CS-4 GOVERNMENT CODE SECTION 54957(b)(1) — PUBLIC EMPLOYMENT: Title: City Attorney CITY COUNCIL CONVENED TO OPEN SESSION — The City Council convened to open session; Interim Citv Attorney Anne Russell reported that Council had 2 reportable actions. The first was a vote to approve the separation agreement with Rob Schultz, 5-0. And the second was a decision on a 3-2 vote. to direct Mr. Simas to begin negotiations regarding the termination of the City Managers employment and a separation agreement. With regards to Government Code Section 54956.8. 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 two parcels: Lease Site 53-56/53W-56W: Estero Landing, Inc. located at 501 Embarcadero; and. 307 Morro Bav Blvd., no reportable action under the Brown Act was taken. ADJOURNMENT The meeting adjourned at 6:21pm. Recorded by: PMA0__ Jamie Boucher City Clerk MINUTES - MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING - NOVEMBER 12, 2013 ® 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 TUESDAY, NOVEMBER 12, 2013 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 CLOSED SESSION REPORT MAYOR & COUPICILMEMBERS' REPORTS. ANNOUNCEMENTS & PRESENTATIONS ® PUBLIC PRESENTATIONS — • Morro Bay High School ASB Representative — Mona Panchal • Quarterly Report from the Economic Development Program PUBLIC COMMENT - Members of the audience wishing to address the Council on City business matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda, but unable to stay for the item, may also address the Council 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 cam 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 meetine. A. CONSENT AGENDA Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION MEETING HELD ON OCTOBER 21, 2013; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED CITY COUNCIL MEETING HELD ON OCTOBER 22, 2013; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-3 APPROVAL OF CITY COUNCIL MINUTES FOR THE REGULAR CITY COUNCIL MEETING HELD ON OCTOBER 22, 201 3; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. A-4 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CITY COUNCIL MEETING HELD ON OCTOBER 25, 2013; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-5 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CITY COUNCIL MEETING HELD ON OCTOBER 29, 2013; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-6 APPROVAL OF CITY COUNCIL MINUTES FOR THE JONT PLANNING COMMISSION / CITY COUNCIL MEETING HELD ON OCTOBER 29, 2013: (PUBLIC SERVICES) RECOMIVIENDATION: Approve as submitted. A-7 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED CITY COUNCIL MEETING HELD ON OCTOBER 31, 2013; (CITY ATTORNEY) 0 RECOMMENDATION: Approve as submitted. ® A-8 ADOPTION OF RESOLUTION NO. 53-13, AMENDING SECTION 2.2 OF THE CITY COUNCIL POLICIES AND PROCEDURES REGARDING MEMBERS RECEIVING UNEXPENDED MONTHLY DOLLARS FROM THE COST OF THEIR MEDICAL PLANS: (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 53-13 which strikes the existing language in the City Council Policies and Procedures Manual, Section 2.2; that currently allows Council members to receive any unexpended monthly dollars from the cost of their medical plan. A-9 ADOPTION OF ORDINANCE NO. 583: REPEALING, AMENDING, AND REENACTING CHAPTERS 14.01-14.12 AND 14.52 OF THE CITY OF MORRO BAY MUNICIPAL CODE (BUILDINGS AND CONSTRUCTION); (PUBLIC SERVICES) RECOMMENDATION: Adopt Ordinance No. 583; repealing, amending, and reenacting Chapters 14.01-14.12 and 14.52 of the City of Morro Bay Municipal Code (Buildings and Construction) to incorporate the 2013 California Building Standards Code, as adopted by the State of California, and the local modifications thereto.. A-10 AWARD OF CONTRACT FOR THE PROJECT NO. MB-2013-S4: 2013 STREET REHABILITATION PROGRAM: 3-LAYER CAPE AND MICROSURFACNG ® PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Award the project contract to the lowest responsible bidder, American Asphalt South, Inc. of Fontana, CA. A-11 RESOLUTION NO. 55-13 ADOPTING THE MEMORANDUM OF UNDERSTANDING WITH MORRO BAY FIRE FIGHTERS ASSOCIATION AND RELATED COMPENSATION: (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 55-13, approving the Memorandum of Understanding with the Morro Bay Fire Fighters Association. A-12 RESOLUTION NO. 56-13 ADOPTING THE AGREEMENT WITH THE NIORRO BAY CONFIDENTIAL EMPLOYEES AND RELATED COMPENSATION; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 56-13, approving the Agreement with the i\`[orro Bay Confidential Employees. A-13 QUARTERLY FINANCIAL STATUS REPORTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013: (ADMINISTRATIVE SERVICES) ® RECOMMENDATION: Accept the reports as presented. 3 A-14 STATUS REPORT OF A MAJOR MAINTENANCE & REPAIR PLAN (MMRP) FOR ® THE EXISTNG WASTEWATER TREATMENT PLANT; (PUBLIC SERVICES) RECOMi•4ENDATION: Receive and file the report. A-15 REVIEW OF DRAFT REQUEST FOR PROPOSAL FOR INTERIM CITY ATTORNEY; (ADMINISTRATIVE SERVICES) RECOMMEI NDATION: Review the draft Request for Proposal (RFP) for Interim City Attorney, suggest/recommend changes and direct staff accordingly. A-16 A PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY DECLARING NOVEMBER, 2013 AS "NATIONAL HOSPICE MONTH": (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-17 APPROVAL OF RESOLUTION NO. 57-13 CONFIRMING THE EXPIRATION DATE OF TENTATIVE TRACT iV1AP 2859 AND AVAILABILITY OF WATER AND SEWER (RELATING TO 2783 CORAL AVENUE N MORRO BAY, CALIFORNIA); (CITY ATTORNEY) ® RECOMINIENDATION: Adopt Resolution 57-13 confirming the expiration date of Tentative Tract Map 2859 and availability of water and sewer (relating to 2783 Coral Avenue in Morro Bay, California). B. PUBLIC HEARINGS B-1 REVIEW OF THE DRAFT OPTIONS REPORT FOR THE NEW WATER RECLAMATION FACILITY (WRF); (PUBLIC SERVICES) RECOMMENDATION: Receive the report and presentation, take public testimony, and provide any recommendations or comments to staff and the Rickenbach team for incorporation into the final document. Additionally, provide direction to staff regarding the holding of an additional Options Report Workshop on Saturday November 23, 2013. B-2 AMENDMENT OF CONDITIONAL USE PERMIT 9UPO-342 AND ADOPTION OF .-MENDED MITIGATED NEGATIVE DECLARATION FOR 901-915 AND 945 (WATERSIDE) EMBARCADERO); (PUBLIC SERVICES) RECOMMENDATION: Approve the project by adopting a motion to include: 1) Approve and adopt the amended Mitigated Negative Declaration (SCH#2012091063) in accordance with the applicable provisions of the California ® Environmental Quality Act (Public Resources Code 21000 et. Seq.) and adopt the findings included as Exhibit "A", including findings required by the California Environmental Quality Act (CEQA) and 2) Concept Plan Approval of the 4 ® amendment of Conditional Use Permit HUPO-342 subject to the Findings included as Exhibit "A" and the Conditions of Approval as included as Exhibit "B" 13-3 RESOLUTION APPROVING ADJUSTMENT TO LEASE SITE MAPS FOR LEASE SITES 93W-95W AND 96W: LOCATED ADJACENT TO 901-915 EMBARCADERO ROAD (HELD FAMILY: AND SMITH W. AND HANNAH W HELD FAMILY TRUSTS): (PUBLIC SERVICES) RECOMMENDATION: Approve the adjustment to Lease Sites 93W-95W and 96W by Resolution No. 54-13. C. UNFNISHED BUSINESS C-1 CONTINUED DISCUSSION, CONSIDERATION AND DIRECTION REGARDING THE EXPANSION OF THE UNITED STATES COAST GUARD (USCG) FACILITIES IN MORRO BAY; (ADMINISTRATION) RECOMMENDATION: Review the attached documentation and provide direction regarding the USCG's request to enter into a long term lease agreement with the City of Morro Bay for expansion of USCG facilities in Morro Bay. C-2 MULTI -HAZARD EMERGENCY RESPONSE PLAN AND EMERGENCY ® OPERATIONS CENTER REVIEW: (FIRE) RECOMMENDATION: This is informational only. D. NEW BUSINESS D-1 APPROVAL OF SUBLEASE OF 307 MORRO BAY- BLVD TO GRAiNIDMA'S FROZEN YOGURT AND WAFFLE SHOP (LENNY DURRER AND BEVERLY FORD-DURRER); (CITY ATTORNEY) RECOMMENDATION: Approve sublease and authorize Mayor to sign once the landlord Scott Meisterlin has consented to the Sublease, and it proposed uses and improvements. D-2 REVIEW AND ADOPT DRAFT FUNDNG RECOMMENDATIONS FOR THE 2014 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS; (PUBLIC SERVICES) RECOMMENDATION: Adopt draft funding recommendations for the 2014 Community Development Block Grant (CDBG) funds and forward recommendations to the San Luis Obispo County Board of Supervisors for inclusion . with the other draft funding requests from the Urban County Consortium. D-3 DISCUSSION OF THE CITY OF MORRO BAY'S COMMITMENT TO THE CITY'S is 50TH ANNIVERSARY CELEBRATION; (ADMINISTRATION) E El RECOMMENDATION: Review the staff report and. requests from the Morro Bay 50th Committee and provide direction to staff. D-4 DISCUSS AMENDING THE CONTRACT WITH SIMAS & ASSOCIATES FOR THE PURPOSE OF TRANSFERRING SIGNATOR FROM MAYOR IRONS TO INTERIM CITY ATTORNEY, AND DISCUSS AUTHORIZING ADDITIONAL FU­N1DS FOR THE PURPOSE OF COMPLETINIIG PERSONNEL MATTERS WITH OUR CITY ATTORNEY AND CITY MANAGER NOT TO EXCEED 20 HOURS OR $5000.00 DOLLARS; (MAYOR) RECOMMENDATION: Authorize the Interim City Attorney to become the signator for the contract between Simas & Associates and the Citv of Morro Bav and authorize additional funds for the purpose of completing personnel matters with our City Attorney and Citv Manager not to exceed 20 hours or S5000.00 dollars. E. COUNCIL 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 772-6205 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. ri ® MNUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 12, 2013 VETERAN'S MEMORIAL HALL — 6:OOP.M. PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Lease Noah Smukler STAFF: Andrea Lueker Anne Russell Jamie Boucher Amy Christev Steve Knuckles Susan Slayton Joe Woods Eric Endersby Rob Livick Cindy Jacinth ® Mayor Irons called the meeting to order at 6:30 p.m. ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE AGENDA NO: A-2 MEETING DATE: 12/10/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager Interim City Attorney City Clerk Police Chief Fire Chief Administrative Services Director Recreation & Parks Director Harbor Director Public Services Director Associate Planner CLOSED SESSION REPORT — Interim Cir' Attorney Anne Russell reported that Council had 2 reportable actions. The first was a vote to approve the separation agreement with Rob Schultz. 5-0. And the second was a decision on a 3-2 vote, to authorize Mr. Simas to negotiate a separation agreement with the City Manager. With regards to Government Code Section 54956.8, Property Transactions instructing the Citys real property negotiator regarding the price and terms of payment for the purchase, sale. exchange. or lease of real property as to two parcels: Lease Site 53-56/53W-56W: Estero Landins. Inc. located at 501 Embarcadero: and. 307 Morro Bay Blvd., no reportable action under the Brown Act was taken. ivLAYOR AND COUNCILMEMBERS' REPORTS. ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS Morro Bay High School ASB Representative. Mona Panchalgave a presentation on the "goings- on" at MBHS. The Words Matter Anti -Bullying Campaign is ongoing reducing the use of ® profanity at the school and has a lot of students speaking out against bullying. Alanna Williams. was crowned Homecoming Queen. The Teens Club hosted a dance for Breast Cancer. Cross Country League finals resulted in a first place for the Boys team. their 2"d win in a row. The Girls Volleyball team made CIF playoffs for the first time in 19 years. The Avid Program received a large donation from Wells Fargo Bank: Avid empowers students to go to college who may be less likely to attend. Allie Evans and Joy Franklin made the cover of New Times for the "Winning Images of 2013". PUBLIC COMMENT Jan Lewis. owner of Sweet Offerings, located at =430 Morro Bay Blvd.; with the help of her father Glenn Lewis and sales associate Bonnie Crawford, gave the Morro Bay Business Report. Located 3 doors down from the Bay Theater, they specialize in artisan fudge and chocolates: they make their own candies: and. they also serve Doc Burstein ice cream. The store is a tinsel town store, new into the community: they invited the community to come in and see them. Monique Nelson, the President of the Coastal Alliance of Plant Expansion, received a copy of D7negy's letter announcing the shutdown and is thrilled for the victory for the Estuary. It's been their job to scrutinize, analyze and critique plans for the power plant. CAPE's primary focus is on the environment, to protect and improve the air quality and especially to safeguard the Morro Bay Estuary. CAPE feels that the once-thru cooling system causes devastating damage to the Estuary. She hopes the City seizes the opportunity to study the power plant sight to develop a plan to rezone it for new uses. Barbara Doerr stated that based on the closure of Dynegy, the need to amend the LCP for this issite has become a number one priority. Currently only a coastal dependent industrial use has priority at the power plant site. It has become critical to determine the appropriate land uses for the site and it would be prudent to begin with Area 5 — Morro Rock which includes the power plant, WRF, �4BHS, recreation and wildlife preservation uses and 2 parks. The City has identified coastal needs that could be incorporated into a rezoned power plant site some of which include a commercial fishing boat yard, boat storage. and Coast Guard boat yard. Joan Solu stated that the Morro Bay 50`h Anniversary Celebration Committee has been meeting and brainstorming the last 6-8 months. Ideas are being brought forward to Council tonight. She hopes that Council will consider this and hope that we can move some positive effort forward. Kathy Welles grew up in Morro Bay and loves our community. We have all been a cohesive community who got alone. She thanked Andrea Lueker and Rob Schultz for all their fine service. The saddest and most wrong part of this deal is that we have 3 temporary employees, inexperienced, elected by the majority of those who voted, making decisions that will leave an everlasting black cloud on our fine City. Jane Heath went to the Community Foundation's Morro Bay Sings and it was wonderful event. She went on to say that what is happening here is that new energy is emerging. It's fueled by folks that are the City's past, present and future. She is looking forward to seeing what the next 50 years brings to Morro Bay. MINUTES - MORRO BAY CITY COUNCIL- NOVEMBER 12, 2013 Marlene Owens.thanked Andrea Lueker for the ivlorro Bav Community Foundation asshe was instrumental in its formation and its loneevity. Garry Johnson wants to know what the Morro Bav City Council's overall plan is for the citizens and their future. He stated that the citizens are paving for 3 lawyers at a cost of over S30,000 and now the Mayor is requesting an additional S5.000. He reiterated that if you disagree with the way the City Council is doing business. you can confidentially sign the recall petition. David Nelson asked for clarification as to whether or not Mr. Schultz was full time as he understood he worked for other agencies as well. Regarding the development off of Highway 1. he asked how we could approve a road that big that serves 8 houses: he doesn't feel it is adequate. He is concerned about the Power Plant ascurrently, they are taking down faulty metal leaving gaping holes. He is fearful of the toxins that we are being exposed to. As long as the stacks stand. Council needs to be/remain on top of this issue. Dan Costlev is tired of the divisiveness. He announced the Rotary Club of Morro Bav_ 's Lighted Boat Parade being put on in partnership with the Chamber of Commerce. It will be held on Saturday. December 7 h. There will be strolling carolers. a photo opportunity for the children with Santa and Mrs. Claus, and goodies to purchase. He thanked all the local businesses for their financial support. Christine Barrett has asked for help from everybody and has received help from evervbody. She thanked Andrea Lueker and Joe Woods. She stated that this was the first governmental bodv that she's been comfortable with. She supports Mayor Irons and Andrea. Gary Owens has 2 questions. Why are 3 lawyers cheaper than 1? And the 91 choice for the treatment plant is 500 yards closer to the ocean than the other one; how does that get it out of the flood plain? The Public Comment period was closed. A. CONSENT AGENDA Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION MEETNG HELD ON OCTOBER 21, 201 3; (ADMNISTRATION) RECOMDtENDATION: Approve as submitted. A-2 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED CITY COUNCIL MEETING HELD ON OCTOBER 22, 201 j: (ADMNISTRATION) ® RECO-1NUMENDATION: Approve as submitted. 3 MINUTES - MORRO BAY CITY COUNCIL -NOVEMBER 12, 2013 A-3 APPROVAL OF CITY COUNCIL MINUTES FOR THE REGULAR CITY COUNCIL ® MEETING HELD ON OCTOBER 22, 2013: (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-4 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CITY COUNCIL MEETNG HELD ON OCTOBER 25, 20L3: (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-5 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CITY COUNCIL MEETING HELD ON OCTOBER 29, 2013: (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-6 APPROVAL OF CITY COUNCIL MINUTES FOR THE JOINT PLANTIING COMMISSION / CITY COUNCIL MEETING HELD ON OCTOBER 29. 2013: (PUBLIC SERVICES) RECOMMENDATION: Approve as submitted. A-7 APPROVAL OF CITY COUNCIL MNUTES FOR THE SPECIAL CLOSED CITY ® COUNCIL.MEETNG HELD ON OCTOBER 31, 2013; (CITY ATTORNEY) RECOMMENDATION: Approve as submitted. A-8 ADOPTION OF RESOLUTION NO. 53-13. AMENDING SECTION 2.2 OF THE CITY COUNCIL POLICIES AND PROCEDURES REGARDNG MEMBERS RECEIVING UNEXPENDED MONTHLY DOLLARS FROM THE COST OF THEIR MEDICAL PLANS; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 53-13 which strikes the existing language in the City Council Policies and Procedures Manual, Section 2.2, that currently allows Council members to receive any unexpended monthly dollars from the cost of their medical plan. A-9 ADOPTION OF ORDINANCE NO. 583: REPEALING. AMENDING, AND REENACTING CHAPTERS 14.01-14.12 AND 14.52 OF THE CITY OF MORRO BAY MUNICIPAL CODE (BUILDINGS AND CONSTRUCTION): (PUBLIC SERVICES) RECOMMENDATION: Adopt Ordinance No. 583; repealing, amending, and reenacting Chapters 14.01-14.12 and 14.52 of the City of Morro Bay Municipal Code (Buildings and Construction) to incorporate the 2013 California Building ® Standards Code, as adopted by the State of California, and the local modifications thereto.. 4 MINUTES - MORRO BAY CITY COUNCIL - NOVEMBER 12, 2013 ® A-10 AWARD OF CONTRACT FOR THE PROJECT NO. MB-2013-S4: 2013 STREET REHABILITATION PROGRAM: 3-LAYER CAPE AND VIICROSURFACNG PROJECT; (PUBLIC SERVICES) RECONINIENDATION: Award the project contract to the lowest responsible bidder, American Asphalt South, Inc. of Fontana, CA. A-11 RESOLUTION NO. 55-13 ADOPTING THE MEMORANDUM OF UNDERSTANDING WITH MORRO BAY FIRE FIGHTERS ASSOCIATION AND RELATED COIvfPENSATION: (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 55-13, approving the Memorandum of Understanding with the Morro Bay Fire Fighters Association. A-12 RESOLUTION NO. 56-13 ADOPTING THE AGREEMENT WITH THE MORRO BAY CONFIDENTIAL EMPLOYEES AND RELATED COMPENSATION: (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 56-13, approving the Agreement with the Morro Bay Confidential Employees. A-13 QUARTERLY FINANCIAL STATUS REPORTS FOR THE FISCAL YEAR ENDED is SEPTEMBER 30. 2013; (ADMINISTRATIVE SERVICES) RECON IENDATION: Accept the reports as presented. r11 1 L_J A-14 STATUS REPORT OF A MAJOR MAINTENANCE & REPAIR PLAN (MiVIRP) FOR THE EXISTNG WASTEWATER TREATMENT PLANT; (PUBLIC SERVICES) RECOMMENDATION: Receive and file the report. A-15 REVIEW OF DRAFT REQUEST FOR PROPOSAL FOR INTERIM CITY ATTORNEY; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Review the draft Request for Proposal (RFP) for Interim City- Attorney, suggest/recommend changes and direct staff accordingly. A-16 A PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY DECLARING NOVEMBER. 2013 AS 'NATIONAL HOSPICE MONTH": (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-17 APPROVAL OF RESOLUTION NO. 57-13 CONFIRMING THE EXPIRATION DATE OF TENTATIVE TRACT ivLAP 2859 AND AVAILABILITY OF WATER AND 5 ,MINUTES - MORRO BAY CITY COUNCIL -NOVEMBER 12, 2013 SEWER (RELATING TO 2783 CORAL AVENUE N MORRO BAY. CALIFORNIA): ® (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution 57-13 confirming the expiration date of Tentative Tract Map 2859 and availability of water and sewer (relating to 2783 Coral Avenue in Morro Bay, California). Mayor Irons opened up the public comment period for items on the Consent Calendar; seeing none, the public comment period was closed. Mayor Irons pulled Items A-4 and A-15; and. Councilmember Christine Johnson pulled Item A-3 from the Consent Calendar. MOTION: Councilmember Nancy Johnson moved the City Council approve Items A- lL, A-2. A-5, A-6. A-7. A-8. A-9. A-10. A-11. A-12, A-L3. A-14, A-16 and A-17 of the Consent Calendar as presented. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. A-3 APPROVAL OF CITY COUNCIL MINUTES FOR THE REGULAR CITY COUNCIL VIEETNG HELD ON OCTOBER 22, 20L3; (ADMINISTRATION) Councilmember Christine Johnson had submitted edits to these minutes to the Citv_ Clerk. The ® Clerk reviewed the tape and concurred with the revisions. MOTION: Councilmember Christine Johnson moved for approval of the October 22, 2013 minutes as amended. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. A-4 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CITY COUNCIL ,VIEETNTG HELD ON OCTOBER 25, 2013; (ADMINISTRATION) Mayor Irons had submitted edits of these minutes to the City Clerk. The Clerk reviewed the tape and revised the minutes to reflect what occurred. MOTION: Mayor Irons moved the City Council approve Item A-4 as revised. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. A-15 REVIEW OF DRAFT REQUEST FOR PROPOSAL FOR INTERIM CITY ATTORNEY; (ADMINISTRATIVE SERVICES) MOTION: Mayor Irons moved continuance of this item to come back for further discussion. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. ® B. PUBLIC HEARINGS 3 MLNUTES - MORRO BAY CITY COUNCIL - NOVEMBER 12, 2013 B-1 REVIEW OF THE DRAFT OPTIONS REPORT FOR THE NEW WATER ® RECLAMATION FACILITY (WRF); (PUBLIC SERVICES) Public Services Director Rob Livick presented the staff report. John Rickenbach and Mike Nunley presented a power point presentation whereby they addressed the results of the public workshops. They addressed what the purpose is; what they've learned so far; what thev've heard so far; and what we've learned in the past week. All of this will be folded into a revised version and presented in final format at the December l Od' Council meeting. What is presented tonight is a draft report. Mayor Irons opened up the public comment period for Item B-1. Walter Heath hoped that Council would consider water reclamation facility sites that are of suitable size to permit the perspective use of constructive wetlands to treat our municipal wastewater partially or completely. He feels that constructed treated wetlands costs much less to build and odors are non-existent. He stated that it would take 4-25 acres of land per 1,000,000 gallons of wastewater flow/day. While land acquisition costs could be higher. the savings in construction and equipment could be cut by tens of millions. Steve McElvaine spoke on and save some history on the prime as land of the Morro Valley/Righetti property He is sorry that you took the original plant out of your consideration. ® He also feels that the CCC has no authoriry to kick you off of your current site. If you are going to get kicked off. Site B is 10 million dollars cheaper than the 2 on either side of it according to the report. David Nelson has participated in the workshops. He disagrees and feels that doing it this way is going at it backwards. It seems like we should be starting with the idea of what we want.to put some place. He questioned how we can go from 35 million to 90 million dollars just because we moved our site; the plumbing shouldn't cost that much more. He feels we need to reinvestigate prior proposing companies. He also feels we need to check what other people/cities are doing. Bill Martoney asked whether the City has the right to eminent domain outside of the City limits. It's important to have a willing seller. Regarding sticker shock over the S90-160 million for a new plant; he wanted to reiterate that the current location was going to be S34 million to duplicate on -site. He thinks it will only be Sl-2 million more to change sites. He has always suggested the Tri-W site as a very feasible site. He stated that there is an existing plant being built in Oceanside; 4 times the size of Morro Bay's demand, whose current price is S» million; the $90-160 million is way off. Ahmed Kasam. is gratified that we are looking at the odor question. The odor and distance to residential areas wasn't considered high enough in the first draft and is glad to hear it will be considered in the 2Id draft. Richard Sadowski stated that using forced main is relatively inexpensive. He doesn't agree with is the philosophy of taking the design as a complete separate issue. We have a lot of unknowns, MINUTES - MORRO BAY CITY COUNCIL-NOVE,MBER 12.2013 ® Cavucos and capacity issues from dilapidated infrastructure. those issues are significant enough that they have to be incorporated into the decision. He feels PERC should be revisited: one benefit is that it is a module system. It is important to look at this holistically_ as we need to know the capacity and design parameters. Barry Branin stated that one of the biggest factors in any project is the overall cost of the project during its life. He speaks to this because we have the opportunity to look at the CMC plant. There isn't analysis on how the existing CMC plant could be expanded. If you had a partnered plant. you would save on personnel costs over time. A regional facility makes sense 50 years from now. Jim Pauley stated that it appears that the power plant is going away and we may end up with the power plant. We didn't have that in mind when this project started but since it's here. we should take a look at what the possibilities are for the property in back of the plant. It would be the most economic and least visible. He also says that the Tri-W land makes sense and we should take a look at it. Carla Wixom stated that people seem to think it's going to be less.expensive than the new consultants said it was going to cost. She went through the reasons that some of the sites wouldn't work: power plant - too visible to Scott Street residents and there is an archeological site in the back: Righetti property — too visible to the 50+ residents living over there plus its a gateway to the town, floods, slides, is in an earthquake fault. etc.: CMC - $160 million dollars and the existing plant is probably at capacity: Tri-W — Measure G governs that property. It's a ® lot to think about. Barbara Doerr thinks an additional workshop is an outstanding idea. If the 23`d is selected, then we should mail out a postcard to every resident advertising it. She feels that odors are critical and the plant should be as odor free as possible. She thinks that the constructive wetlands is an outstanding idea. She suggests eliminating the power plant site immediately as it wouldn't be consistent with our General Plan and LCP. John Diodati thanked the Council for asking for what everyone wants and what's it going to cost. Council has received the information and now can make the best decision possible. He went on to state that we now know that reclamation is very expensive and that its reclamation that is driving the plant costs significantly higher. We have always said we need a plant that is reclamation ready. Doing everything right now isn't advisable but instead phased in over time as appropriate. He thanked Council for funding this alternative study. for reaching out and working cooperatively with the permitting agencies. It's important to find out what the expectations are of the permitting agencies. Brad Snook stated that to use water once and then flush it into the ocean doesn't make sense. especially since we have a water supply issue. We need ;to find a home for the water that has been treated. Once the water is reclaimed, whose water is it? You need a partner that will work with you that will help reduce costs of the plant going tertiary, reclaiming the water. cutting your ® outfall and doing the best to deal with the water supply issue. 9 MINUTES - MORRO BAY CITY COUNCIL-NOVEMBER 12.2013 ® The public comment period for Item 13-1 was closed. Councilmember Christine Johnson stated that now is the time to speak out/reach out to the consultant team with your suggestions and/or questions. Irs important we consider water as a resource but we have to balance that with what the community can afford. Now that the report is out; she wants to know from Coastal — what will be the condition for approval that they would put on a new project in regards to reclaimed water. With regards to phasing in over time; she would also like to know what "reclamation ready' based on the sites we have means by the next report. She would also like to see a project component chart that reflected cost ranges for the previous unpermitted project. She also wanted to know the cost analysis and realistic risks if we lost ocean outfall. She also feels like the County is reaching out to us regarding the CIVIC site and hopes we will meet with them in the near future to discuss that option. The question of "whose water is it" needs to be dealt with. At what point will we be able to discuss plant technology? Councilmember Nancy Johnson doesn't see a great value in a Saturday meeting as there hasn't been a huge request. Councilmember Smukler thinks it's important to have initial conversations with as many of these property owners as possible; this could very easily take some of these properties off the table. He likes that we are reaching out to regulators. He thinks it's valuable to reach out to CMC for a "shared effort" possibility. V He also thinks it's important to dialogue with some potential ® reclamation users to gauge their possible interest. Affordability is a key component which should be added to goals. both short and long term. It's really important to have some discussion about phasing in reclamation. He thinks neighborhood sensitivity and compatibility needs to be added: he is concerned about contingencies alreadv stated to being built in: with regards to a public workshop, this is a really important project which won't be successful without public participation — as such, we should error on the side of more public participation. He likes the idea of sending out a postcard to residents announcing a workshop. Mavor Irons spoke on the goals listed on the slide and ones which we have added to: cost/affordability being a key component.- reclamation ready/phasing, the site should be expandable; energy recovery — is a phasing component as well; contingencies are too high — if we are set for 30%, do we set ourselves up for those expenditures — we need to be more cost conscience-, maybe reserve a public workshop able to include Cayucos; and. odors. Mr. Rickenbach hit on the key issues as he heard them: reach out to different property owners; look into what the LCP specifically requires; ask the CCC what their conditions of approval would be for reclaimed water: define what reclamation ready means: can you show the costs of existing plant as a comparison tool to the other sites; what is the realistic risk and cost if we lost the ocean outfall; County Public Works letter in the context of partnering; whose water is it if reclaimed; when is it appropriate to talk about technology; get. comments from potential reclamation users; affordability as a key component; neighborhood compatibility; contingencies beine thrown into the cost estimate already; the final report will be presented at the December ® I ot, meeting; we may pursue an additional workshop in January. 0] MINUTES - MORRO BAY CITY COUNCIL - NOVEMBER 12, 2013 ® B-2 AMENDMENT OF CONDITIONAL USE PERMIT #UP0-342 AND ADOPTION OF AMENDED MITIGATED NEGATIVE DECLARATION FOR 901-915 AND 945 (WATERSIDE) EMBARCADERO); (PUBLIC SERVICES) Associate Planner Cindy Jacinth presented the staff report. Councilmember Leage recused himself as he feels he has property within 500 feet of the proposed project. Cathy Novak spoke representing Mr. Smith Held for the amendment to his project. The project was submitted to the CCC for a Coastal Development Permit. The CCC requested modifications and we have been working with them on making those modifications and to date have done the following: eliminated the view deck. reduced the floating dock finger slip lengths and pushed the floating docks westward, relocated the gangway to the west. reduced the size of the new retail unit and also reduced the size of the existing retail unity where Poppy is located in order to make the 2 retail shops of reasonable size. made the Harborwalk along the new retail unit 8 feet wide, and have increased the Harborwalk to 10 feet wide on the southern portion of the site. During these modifications. the neighboring lease site discussed with the City the idea of relinquishing a portion of his water lease as it wasn't financially feasible for him to build a dock project. This opportunity for Mr. Held to take over this portion of the water lease was then offered by the City. With this new direction. Mr. Held revised his project description to include the new dock area which then required either the Mitigated Neg. Dec. be amended or for a new Mitigated Neg. Dec. ® to be prepared for that portion of the project only. It was decided that an amendment would be the best direction to go. She requested the project be approved per staffs recommendation. Mayor Irons opened up the public comment period for Item B-2. Barbara Doerr hoped that in the future we follow the State standards for. Council conflicts of interest being declared. As far as the project.goes. she is not opposing the project as much as the design of the project. She doesn't find the design appealing at all; she finds it lacks character and hopes it is approved with the condition to come back to the City Council with an improved design. The public comment period for Item B-2 was closed. MOTION: Mayor Irons moved to approve staffs recommendation as stated. The motion was seconded by Councilmember Smukler and carried 4-0-1 with Councilmember Leage having recused himself due to a conflict of interest. B-3 RESOLUTION APPROVING ADJUSTMENT TO LEASE SITE MAPS FOR LEASE SITES 93W-95W AND 96W: LOCATED ADJACENT TO 901-915 EMBARCADERO ROAD (HELD FAMILY: AND SMITH W. AND HANNAH W HELD FAMILY TRUSTS)_ (PUBLIC SERVICES) ® Councilmember Leage continued to be recused as he owns property within 500 feet of the proposed project. 10 MINUTES - MORRO BAY CITY COUNCIL -NOVEMBER 12.2013 ® Public Services Director presented the staff report. The public comment period was opened for Item B-3; seeing none, the.public comment period was closed. MOTION: Councilmember Christine Johnson moved approval of the adjustment to lease site maps for lease site 93W-95W and 96W by the adoption of Resolution 54-13). The motion was seconded by Councilmember Smukler and carried 4-0-1 with Councilmember Leage having recused himself due to a conflict of interest. C. UNFINISHED BUSINESS C-1 CONTINUED DISCUSSION. CONSIDERATION AND DIRECTION REGARDING THE EXPANSION OF THE UNITED STATES COAST GUARD (USCG) FACILITIES N MORRO BAY: (ADMINISTRATION) City Manager Andrea Lueker presented the staff report. Bill ivievn, representing the USCG stated that both the City and USCG have common interests, that the USCG has a legitimate need to expand its facility; the USCG isihas a waterfront, use: timing is critical as the money needs to be lined up for construction in 2015; and they can't do ® this without the City's support. The public comment period for Item C-1 was opened. 11 Barbara Doerr is proud to have the USCG in Morro Bay and urges each of the Council to do everything they can to say yes to their needs. The public comment period for Item C-1 was closed. Councilmember Leage stated that we have been here before; we are dealing with a piece of property that the citizens of Morro Bav think is valuable and he wonders what the repercussions will be. Councilmember Christine Johnson stated that based on her conversations with the public, the security fence can be a show stopper; if no fence, then it could possible work. The Public Comment for Item C-1 was reopened. Mr. Mevn stated that the fence issue can be modified. With regard to the power plant property, that probably won't fit the timeline for the 2015 funding. It is their intent to preserve public access to the beach and to preserve the bike path and pedestrian path. MINUTES - MORRO BAY CITY COUNCIL -NOVEMBER 12, 2013 Janice Peters stated that using the intake building for the power plant could be an option. Maybe they would be willing to discuss a rental agreement until a more permanent situation would be resolved. She also stated that the fencing provided isn't aesthetic. The public comment period for Item C-1 was closed. Councilmember Nancy Johnson wondered if the Harbor Department were moved, could the USCG utilize the Harbor Department space. Mr. Meyn stated they would be delighted to use the adjacent property. Councilmember Smukler felt that USCG was moving in the right direction: however the requested location is still too much in the center of where beach activity originates. He hoped we could sit down with the USCG and work out a location that meets their needs and while it may be a temporary displacement of our Harbor office, work out a compromise. The area north of the intake structure could also be looked at. Mayor Irons suggested a Council sub -committee that could be comprised of 2 Harbor Advisory Board and 2 Councilmembers on it. Mr. Mevn stated that they would need a firm response of a location by March at the latest in order to allow for enough time for permitting. Councilmember Smukler felt that if staff is given clear enough direction, then thev can begin discussions. There was Council consensus to have Councilmember Leage and Mayor Irons meet with the ® Harbor Director and USCG to begin working on the process. Councilmember Smukler would still like to have some Harbor Advisory Board comment on this. Irs important for the sub -committee and staff to ensure we have answer to the Harbor Office as part of this. MOTION: Councilmember Smukler moved to appoint Councilmember Leage and Mavor Irons as an Ad -hoc Sub -committee to work with City staff and the USCG to evaluate options for expansion of Coast Guard facilities and harbor office needs. The motion was seconded by Councilmember Nancv Johnson and carried unanimously 5-0. C-2 MULTI -HAZARD EMERGENCY RESPONSE PLAN AND EMERGENCY OPERATIONS CENTER REVIEW; (FIRE) Fire Chief Steve Knuckles presented the staff report which contained information about the Citv's Multi -Hazard Emergency Response Plan (MERP). The MERP prescribes the City's policies and concepts for responding to emergencies; which could affect the health, safety, environment; and property of the public within the Citv limits. In addition. this plan intends to: provide a basis for City coordinated disaster response capability; establish a mutual understanding of the emergency responsibilities and functions of civil government during emergencies; identify those historical and major potential disasters that may affect the City_ provide continuity of government; and. coordinate operations with the emergency service organizations of other jurisdictions. The MERP consists of 3 parts: the Basic Plan which is an ® overview for elements of response and which the Council reviewed and adopted; hazard specific 12 MINUTES - MORRO BAY CITY COUNCIL - NOVEMBER 12, 2013 ® annexes which provide checklists for approach to various emergencies; and, support materials and references and are intended to provide emergency personnel with information and date to support the emergency response efforts. MOTION: Mavor Irons moved to continue the meeting beyond 11:00pm. The motion was seconded by Councilmember Nancy Johnson and carried unanimously 5-0. The public comment period for Item C-2 was opened; seeing none; the public comment period was closed. This item was informational only: no action was taken. D. NEW BUSNESS D-I APPROVAL OF. SUBLEASE OF 307 NIORRO BAY BLVD TO GRANDMA'S FROZEN YOGURT AND WAFFLE SHOP (LENNY DURRER AND BEVERLY FORD-DURRER); (CITY ATTORNEY) Interim City Attorney Anne Russell presented the staff report. Beverly Ford-Durrer, the applicant, stated that everyone has worked so well to try and move this forward and she very much appreciates everybody's efforts. She will be moving this forward to ® their attomev to ensure they are protected for a number of reasons. She posed some questions that staff will have to investigate/research before being able to address those issues: location of bike racks. ADA compliance; location of storage, who pays tares based on improvements. Interim City Attorney Anne Russell suggested continuing the item to a date uncertain until she could visit the site and research the issues. MOTION: Mayor Irons moved to continue this item and bring it back to the next available meeting to discuss the sublease. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. D-2 REVIEW AND ADOPT DRAFT FUNDNG RECOMMENDATIONS FOR THE 2014 CONINIUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS; (PUBLIC SERVICES) Associate Planner Cindy Jacinth presented the staff report. The public comment period for Item D-2 was opened; seeing none, the public comment period was closed. Councilmember Christine Johnson stated that a good City project was selected as it does relate to our City Goal 7(b) and 7(h). Improve City Infrastructure. 13 MWUTES - MORRO BAY CITY COUNCIL -NOVEMBER 1212013 ® MOTION: Councilmember Christine Johnson moved to approve the funding recommendations for the 2014 CDBG funds and forward recommendations to the San Luis Obispo County Board of Supervisors for inclusion with the other draft funding requests for the Urban County Consortium. The motion was seconded by Councilmember Leage and carried unanimously 5-0. D-3 DISCUSSION OF THE CITY OF MORRO BAY'S CONI IITMENT TO THE CITY'S 50TH ANNIVERSARY CELEBRATION: (ADMINISTRATION) City Manager Andrea Lueker presented the staff report. Councilmember Nancy Johnson presented the requests from the Morro Bay 50`h Anniversary Celebration committee: they included appointing Recreation & Parks Director Joe Woods to serve on the committee to help plan and allocate the authorized funds for each event; regarding the 2014 items. the markers are just a guess at this time: the community legacy project — the Women's for Fisheries we hope will be finished: under promotion and promotional items; the hope is that City Council request the Tourism Bureau and the Economic Development Department of the Chamber use their funds to take care of this — banners. advertising and printing: regarding the States 150'h's Anniversary — First Day Hike — hoping there is money to buy t-shirts which will be for sale and the other State event we are already participating in is the Quilt project. ® Niayor Irons opened up the public comment period for Item D-3; seeing none. the public comment period was closed. Councilmember Smukler appreciates the amount of work that has gone into this planning. He is interested in keeping the focus on the citizens of Morro Bay as much as possible: he would like to also see the focus on ideas that won't cost a lot of money: he is interested in limiting the City's financial obligations: and he supports Joe Woods as the City liaison to the committee. Councilmember Christine Johnson has been able to attend 2 meetings so far and is appreciative of the energy and great ideas. She has been asking people in the community and the feedback that she has received. is: keep it simple and focused on the locals: and, don't overdo the events. We have 2 diverse celebration opportunities: the I" Day Hike and the Quilt project, both in conjunction with the State Parks 150`h Celebration. She liked being able to leverage Nlorro Bay where we can with the 1 50'h Celebration of the State Parks. She loves the idea of a parade and a community picnic which would keep the focus local. She also likes the idea of partnering with other groups such as the Tree Committee. the Bike Committee. etc. She loves the Anniversary logo. And supports NIr. Wood's working with the committee. Mayor Irons hopes that the Black Hill Gang will be asked to be involved in the First Hike. He is in favor of the logo banners but hopes that maybe we can combine in the investment of them — we wouldn't need a "50'h" on each banner which would allow us to continue to use them. He agrees in keeping theme of keeping it local. He asked about the Street Tree project. 14 MINUTES - MORRO BAY CITY COUNCIL - NOVEMBER 12. 2013 ® Councilmember Nancv Johnson stated that Tvler Newton is raisin-, and -,iving 50 Cypress trees to local merchants who will be able to use them over the holidays that then will be donated back to the Tree Committee for planting; the events are all community related; most events are tied to alreadv existing events; promotions would be within the City, Economic Development and Tourism Bureau; and the January 11 m kickoff event. "This is Your Life Morro Bay". is being co- sponsored by the Chamber of Commerce with ballots being placed in this week's Bay News so that people can nominate "citizens of each decade". If this is going to work, then the committee needs money to get it started; money not used would be reimbursed back to the City. She is asking to approve this as.a concept plan and authorize funds to get it started. She is asking for $50.000. The full request is based on getting the money from Dynegy. Councilmember Leage was in full support of funding this as this is a once in a lifetime opportunity that will bring people to Morro Bay. Councilmember Christine Johnson is leaning towards funding this at a level of $5.000; this is based on previous allocations to other Morro Bay activities/events. She is also cautious of funding events that weren't open to all the public and weren't family friendly. Councilmember Nancy Johnson responded that funding the full $50,000 is important as this is not just a "one event" request: it's a calendar of events and does include the entire community. This money will also go towards some advertising. ® Councilmember Smukler stated that the City can offer the most support in permitting. He is uncomfortable with writing a check and working backwards, he'd like to see more information. He'd also like to see more in -kind support and not cash. Mayor Irons stated that everybody can be in agreement that this will be a worthwhile celebration. He feels that some events will be sponsored like the trees but there are some hard cost items like the banners and website. He is leaning towards committing $15,000 towards the event(s). Councilmember Smukler continued to be in favor of starting with $5,000 and then having the group come back with more information about what the event costs would be. Councilmember Nancy Johnson said that the bare minimum that they would be able to work with is 536.000 and then hopefully the Chamber and Tourism Bureau could come up with the remaining S1d,000 for promotional items. This is time sensitive as the January I" and January I Ith events are being held prior to the first January Council meeting. Councilmember Christine Johnson agreed with Councilmember Smukler. it would be good to start with an amount and then get more detail coming back. She would like to see a list and funding needs for the entire vears' calendar worth of events. Councilmember Smukler, after looking at the events calendar. feels that $5,000 will work for now and should cover the January events and then revisit after more detailed information is brought forward. 15 MINUTES - MORRO BAY CITY COUNCIL-NOVEMBER 12.2013 MOTION: Mavor Irons moved to fund the Morro Bay 50°i Committee $15,000 to get started. The motion was seconded by Councilmember Christine Johnson and carried 4-1 with Councilmember Smukler voting no. D-4 DISCUSS AiMENDNG THE CONTRACT WITH SIMAS & ASSOCIATES FOR THE PURPOSE OF TRANSFERRING SIGNATOR FROM MAYOR IRONS TO INTERIM CITY ATTORNEY, AND DISCUSS AUTHORIZNG ADDITIONAL FUNDS FOR THE PURPOSE OF COMPLETING PERSONNEL MATTERS WITH OUR CITY ATTORNEY AND CITY MANAGER NOT TO EXCEED 20 HOURS OR $5000.00 DOLLARS; (MAYOR) Mayor Irons presented the staff report. Mayor Irons opened the public comment period for Item D-4. Kevin Rice stated that it has been exactly 2 months since we started the crusade against the City Attorney. It has been confusing and disappointing with up to $17,500 in attorney's fees to do what you could have done in 5 minutes. This has been a lot of waste of public money and public frustration and has divided the Cirv. The public comment period for Item D-4 was closed. Councilmember Christine Johnson wanted to ensure that this would be a "not to exceed an is additional $5.000". Councilmember Smukler stated that we need to keep moving through this and find resolution so he is in favor. MOTION: Mayor Irons moved approval of the recommendations as stated in the staff report. The motion was seconded by Councilmember Smukler and carried 3-2 with Councilmembers Nancy Johnson and Leage voting no. E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS Mayor Irons requested a discussion on Dvnegv concerning direction to take regarding land and facilities: Councilmembers Smukler and Christine Johnson concurred. ADJOURNMENT The meeting adjourned at 12:30am. Rec rded bv: ® J ie Boucher_ City Clerk 16 MINUTES- MORRO BAY CITY COUNCIL - NOVEMBER 12, 2013 ® City of Morro Bay NOTICE OF ADJOURNMENT/CONTINUANCE NOTICE IS HEREBY GIVEN that the Special Closed Session Meeting of Thursday, October 31, 2013, was adjourned and continued to an Adjourned/Continued Special Closed Session Meeting to be held at 10:15am on Thursday, October 31, 2013 at the Morro Bay Veteran's Hall located at 209 Surf Street, Morro Bay, CA 93442. Executed on October 31, 2013 at a.m. Dana Swanson; Deputy City Clerk ® City of Morro Bay City Council Agenda Mission Statement. The City of Morro Bav is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and roil/provide a level of municipal service and safety consistent with and responsive to the needs of the public. SPECIAL CLOSED SESSION MEETING THURSDAY, OCTOBER 31, 2013 CITY HALL CONFERENCE ROOM - 10:00 A.M. 595 HARBOR ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER SUMMARY OF CLOSED SESSION ITEMS — The Mayor will read a summary of Closed Session item. CLOSED SESSION PUBLIC COMMENTS — Members of the public may address the City Council on any matter that is listed on this Closed Session agenda. Unless additional time is authorized by the City Council, remarks shall be limited to three minutes. • 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. ® THE CITY COUNCIL WILL MOVE TO CLOSED SESSION E CS-1 GOVERNMENT CODE SECTION 54956.9(b) — CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Exposure to litigation exists based upon existing facts and the advice of legal counsel as to one matter. Under Government Code Section 54956.9(c), the name of the possible litigation is withheld as disclosure of it would jeopardize the City's ability to conclude existing settlement negotiations to its advantage. CS-2 GOVERNMENT CODE SECTION 54957(b) -- PUBLIC EMPLOYEE DISCIPLINE/DISMISSAL/RELEASE/TERMINATION OF CONTRACT Review of the contract terms of the City Attorney's Employment Agreement. Separation Agreement; employment. evaluation; performance as Cite Attorney, and potential disciplinary action. CONVENE TO OPEN SESSION — Announcement of reportable action from closed session, if any. DATED: October 28. 2013 &ti Ja e Boucher. Cite Clerk IN COMPLIANCE WITH THE AMERICANS WITH DISABILITY 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 ® SPECIAL CLOSED SESSION MEETING — OCTOBER 31.2013 CITY HALL CONFERENCE ROOM — 10:00AM PRESENT: Jamie Irons Christine Johnson Nancy Johnson GeorQe LeaQe Noah Smukler STAFF: Robert Schultz Susan Slayton Steve Simas ESTABLISH QUORUM AND CALL TO ORDER Mavor Irons called the meeting to order at 10:00am. AGENDA NO: A-7 MEETING DATE: 11/12/13 Mavor Councilmember Councilmember Councilmember Councilmember Citv Attomev Administrative Services Director Contract Attorney MOTION: Mayor Irons moved to adjourn and continue this meeting to the Morro Bay Veteran's Hall at 209 Surf Street. The motion was seconded by Councilmember Nancy Johnson and carved unanimously, 5-0. ® The meeting adjourned at 10:01am. The meeting reconvened at the Morro Bay Veteran's Hall and was called to order at 10:18am with all councilmembers present. Mavor Irons noted for the record that Ms. Locker had previous commitments and Ms. Slayton is Acting Ciry Manager. SUMMARY OF CLOSED SESSION ITEMS - The Mavor read a summary of Closed Session items, noting the addition of Government Code Section 54956.9(g) and 54956.9(d)(2) encompass the notice of Item CS-1. Councilmember Nancy Johnson addressed the chair and read a prepared statement including the Government Code Sections as stated on the Meeting Agenda, and the current definition for those Government Code Sections as amended January 1. 2013. She asked Mavor Irons if he had notified Mr. Schultz 24 hours before this Closed Session and the last Closed Session that the Council would be discussing "potential disciplinary action" against him as required under Government Code 54957(b)(2). She does not believe the Council can continue the meeting until it is properly noticed. Mavor Irons asked outside counsel. Mr. Simas, for advice on this issue. Mr. Simas states there are many subdivisions in this government code section. and that it is ® consistent with other previous noticing. The mayor noted the additional code sections and the description is the most important part. The personnel section has been properly noticed. The City Attomev's contract and the Morro Bay Municipal Code do not require advance notice that other positions require. He believes the meeting has been properly noticed and the Council may discuss these items. Councilmember Nancv Johnson states that based on advice from her attorney_, she disagrees but ® will participate in order to move the item forward. CLOSED SESSION PUBLIC COMMENTS - Mayor Irons opened the meeting for Public Comment Nicole Dorfman thanked the Mavor and Council majority for moving forward on this important and painful task for the City. Lynda Merrill spoke in support of the Council for what they must do. It is a difficult task and she believes it is important for the City. The Public Comment period was closed. The Citv Council moved to Closed Session and heard the following items: CS-1 GOVERNMENT CODE SECTION 54956.9(b) — CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Exposure to litigation exists based upon existing facts and the advice of legal counsel as to one matter. Under Government Code Section 5 49d6.9(c), the name of the possible litigation is withheld as disclosure of it would jeopardize the City's ability to conclude existing settlement negotiations to its advantage. CS-2 GOVEWNMENT CODE SECTION 54957(b) — PUBLIC EMPLOYEE ® DISCIPLINE/DIUSMISSAL/RELEASE/rERMPATION OF CONTRACT Review of the contract tetras of the Citv Attornev's Employment Agreement, Separation Agreement, employment, evaluation, performance as City Attorney_ and potential disciplinary action. CITY COUNCIL CONVENED TO OPEN SESSION — The City Council convened to open session: Mayor Irons reported the following actions were taken by Council. Council has instructed Mr. Simas to continue negotiating a settlement agreement with Mr. Schultz by a vote of 5-0. Council is placing Mr. Schultz on administrative leave beginning start of business day tomorrow_ November 1. 2013, until further notice_. with Mr. Simas communicating Council instructions to Mr. Schultz by a vote of 3-2. ADJOURNMENT The meeting adjourned at 2:23pm. Recorded bv: an Swanson ® Deputy City Clerk MINUTES - MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION METING -OCT. 31, 2013 ® City of Morro Bay City Council Agenda . Mission Statement The City of Morro Baj? is dedicated to the preservation and enhancement of the quality of life. The Cih' shall be committed to this purpose and ivill provide a level of municipal service and safety consistent -with and responsive to the needs of the public. CITY COUNCIL/PLANNING COMMISSION JOINT MEETING TUESDAY, OCTOBER 29, 2013 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 & COUNCILMEMBERS REPORTS. ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS - None PUBLIC COMMENT - Members of the audience wishing to address the Council on City business matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda, but unable to stay for the item, may also address the Council 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. AGENDA ITEMS ® I. Discussion of Various City Specific and Master Plans • Beach Street Specific Plan • North Main Street Specific Plan • Parking Management Plan • Waterfront Master Plan Il. Update on the GP/LCP Status to include status on grant applications Ill. Update on the "West Atascadero Road` (North Embarcadero to Cloisters) Rezone IV. 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 ANN' REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6205 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 BAN' 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 AGENDA NO: A-6 MEETING DATE: 11/12/13 MINUTES — MORRO BAY CITY COUNCIL/PLANNING COMMISSION JOINT MEETING — OCTOBER 29. 20L3 VETERANS MEMORIAL HALL — 6:00 P.M. PRESENT: Jamie Irons Mavor George Leaae Councilmember Christine Johnson Councilmember Nancv Johnson Councilmember Noah Smukler Councilmember Rick Grantham Chairperson John Solu Vice -Chairperson John Fennacv Commissioner Michael Lucas Commissioner Robert Tefft Commissioner STAFF: Rob Livick Public Services Department Kathleen Weld Planning Manager Cindv Jacinth Associate Planner ® Katie Mineo Assistant Planner/Administrative Technician Vlavor Irons called the meeting to order at 6:00 p.m. ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR & COUNCILNIEMBERS� REPORTS. ANNOUNCEMENTS. & PRESENTATIONS PUBLIC PRESENTATIONS — None PUBLIC COMMENT Mayor Irons opened Public Comment; and seeing none. closed Public Comment. JOINT MEETING DISCUSSION ITEMS 1. Discussion of Various City Specific and D4aster Plans: • Beach Street Specific Plan (BSSP) • North Main Street Specific Plan (NMSP) • Parking Management Plan (PMP) ® • Waterfront Master Plan (WNIP) MhNUTES — MORRO BAY CITY COUNICUPLANN, fN3 G COMMISSION JOINT MEETING — OCTOBER 29.2013 ® Planning Manager. Kathleen Wold presented the staff report. Mayor Irons stated he would like staff to discuss the significance of the specific plans and how the specific plans will be addressed during the update of the General Plan and Local Coastal Program. Mayor Irons stated he would like all four plans agendized in 2014 and he would like the Council"to review them one by one. Councilmember Christine Johnson asked staff how the Planning Division utilizes the plans. Public Services Director. Rob Livick stated the specific plans are used as guides for development and redevelopment. He then provided examples for how each plan has been implemented. Ms. Wold added that that the NMSP and the BSSP are formally adopted rules and regulations. whereas only one chapter of the WMP has been adopted and the remainder of the document is used as guidelines. Commissioner Tefft made the following comments: 1. Regarding the BSSP, he stated the plan is dated and does not define the character of the neighborhood very well. The provisions of the plan could be incorporated into the Zoning Ordinance or could even potentially be eliminated. 2. Regarding the NMSP, virtually all development north of San Jacinto Street is multi- family residential whereas development south of San Jacinto Street is commercial. ® Because the neighborhood has witnessed varied development patterns, the City should re- examine how utilities infrastructure is provided in that area. I Regarding the WHIP, Tefft stated only certain parts need to be revised. 4. Regarding the PNIP, he stated the City should move away from requiring on -site parking and instead move toward providing more common parking areas. Commissioner Lucas stated it is important to consider how all of the plans work together. especially in terms of how the Wastewater Treatment Plant will impact development in the vicinity of Atascadero Road. Commissioner Fennacy stated the specific plans are living documents and he would like to receive direction from staff on how to more effectively interpret them. If any changes are to be made to the documents, he would prefer that the plans not eet more restrictive than State statutes so that thev do not adversely impact reasonable growth. Commissioner Solu and Chairperson Grantham stated they would like direction from staff and Council in order to determine the order in which the plans should be re-evaluated in 2014. Councilmember Smukler asked how the process of updating the specific plans would affect the update of the _General Plan[Local Coastal Program (GP/LCP) which is the principal priority in the upcoming year. Mr. Livick stated the GP/LCP update is the long range planning focus. but the specific plans are the next level of regulation under the GP/LCP. The City %vil] provide various opportunities for public input for the GP/LCP update, and one topic of discussion could ®. be the specific plans and whether their regulations could be incorporated into the GP/LCP. Ms. MINUTES — MORRO BAY CITY COUNCIL/PLAN'NING COMI IISSION JOINT MEETING — OCTOBER 29.2013 Wold added it would be valuable to have someone review the specific plans and identify sections that should be updated, eliminated, or remain as they are. These recommendations could then be reflected in the GP/LCP update. Councilmember Leaee expressed concern about parking and development issues in the Embarcadero area. Councilmember Christine Johnson expressed support for the specific plan and GP/LCP update process. Mavor Irons asked staff about the possibility of reviewing one specific plan per quarter. He would like the Commission and staff to examine the successes and barriers of each of the plans. Ms. Wold stated it would be beneficial to have a staff member conduct background research on the specific plans which would then be presented to the Commission. Mayor Irons and staff discussed the importance of updating the specific plans so as to provide consistency with the GP/LCP. Chairperson Grantham stated he would like to review the specific plans in the following order: Beach Street Specific Plan, Waterfront Master Plan, Parking Management Plan. and North Main Specific Plan. ® Mayor Irons made a recommendation to move forward with the review of the four specific plans under the guidance of staff. Mr. Livick clarified that Council's intention is to review the plans in the context of the. GP/LCP update and to ensure vertical consistency in all regulations. II. Update on the GP/LCP Status to include status on grant applications Planning Manager Kathleen Wold and Public Services Director Rob Livick presented the staff report. Chairperson Grantham asked staff to clarify the type of grants the City is pursuing. Ms. Wold confirmed the City is pursuing mostly State grants. Chairperson Grantham asked staff if the City ever seeks outside assistance. or assistance from interns, when preparing grant applications. -'vtr. Livick stated the City often hires consultants to help prepare grant applications. Ms. Wold explained that because grant applications often require a degree of expertise, intems are not asked to prepare the applications, but interns are helpful in acquiring letters of support for grant applications and for establishing relationships with local organizations. Commissioner Lucas asked staff if the Citv has the ability to change its Local Agencv Formation ® Commission (LAFCO) sphere of influence to better incorporate the agricultural corridor along 3 MINUTES — MORRO BAY CITY COUNCIL/PLANN NG COMMISSION JOINT MEETING — OCTOBER 29, 2013 ® Highwav 41. ivir. Livick explained the City recently met with LAFCO and is in the process of updating its sphere of influence. He explained Morro Bay is fairly well -constrained around its boundary, however, and there are not many areas remaining that are easily developable. Staff discussed with the Commission how the Coastal Commission is assisting cities throughout California in the LCP update process. Commissioner Solu asked for clarification regarding how much the GP/LCP will cost the City and how much the City is requesting in grant funding. ivIr. Livick explained the update will cost approximately 5900.000 and the City is pursuing various grant opportunities to fund it. vis. Wold explained the strategy of the City in regard to achieving the GP/LCP update is to structure a program whereby each grant builds upon the first one. Therefore. it is not the same work program submitted for each grant, although they may appear similar. Structuring the work program in this manner will allow for incremental pieces to be conducted while maintaining the overall work program. Councilmember Smukler asked Mr. Livick to clarify the status of Chevron property in terms of development. Livick stated Chevron has completed the remediation processes and is likely going to market the property for development. Councilmember Christine Johnson discussed the importance of fostering creative strategies to ® address climate change issues in order to make the City's grant applications more competitive. Mayor Irons discussed the importance of looking to neighboring cities for innovative ways to make the City more competitive. E Mayor Irons asked staff to discuss the City's funding priorities. He outlined three programs for how the City could achieve the GP/LCP update: fully funded; partially funded. or in-house. Ms. Wold explained that if the update is partially funded, it will be necessary to fund the technical studies first and then work on establishing a program where the City could backfill the work with City staff and perhaps interns. or hire a Cal Poly studio class to complete the work. Ms. Wold then explained how the update would proceed if it is to be completed in-house. She noted the importance of defining the study area up -front due to LAFCO policies. Mr. Livick explained the difficulties of developing technical studies. Councilmember Christine Johnson asked Mr. Livick to provide an example of a technical study_ and Ntr. Livick discussed several examples, including traffic studies and wetlands studies. Staff explained an EIR will likely be required for the GP/LCP update and thus staff is currently working to prepare several technical studies which will be incorporated in the EIR. Mr. Livick noted one document in particular, the Climate Action Plan, is nearing completion and will be presented to the City Council in December 2013. 4 MINUTES—MORRO BAY CITY COUNCIL/PLANNING COMMISSION JOINT MEETING — OCTOBER 29, 2013 ® III. Update on the "Nest Atascadero Road" (North Embarcadero to Cloisters) Rezone planning Manager Kathleen Wold presented the staff report. Commissioner Tefft stated this project necessitates an examination of all land uses in the area of West Atascadero Road: not just of the subject site. Ms. Wold then explained the process and politics associated with conducting a rezone. Commissioner Lucas asked staff. Council. and the Commission to consider how the property belonging to the power plant will be utilized in the future. He wants to ensure that it is developed at its greatest potential and does not become a wasted industrial area. Councilmember Smukler added that the property belonging to the City's Corporation Yard should also be examined for a potential rezone in the future. ADJOURNMENT The meeting adjourned at 7:40 pm. Recorded bv: ® K tie Mineo Administrative Technician 11 5 s City of Morro Ray ® 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 MEETIN TUESDAY, OCTOBER 29, 2013; 10:00 A.M. VETERAN'S HALL - 209 SURF STREET, MORRO BAY, CA 1. ESTABLISH QUORUM AND CALL TO ORDER II. MOMENT OF SILENCE III. PLEDGE OF ALLEGIANCE IV. PUBLIC COMMENT - Members of the audience wishing to address the Council on Citv business matters not on the agenda may do so at this time. For those desiring to ® speak on items on the agenda. but unable to stay for the item, may also address the Council 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 vour 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 cam 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. ® V. CITY COUNCIL TO DISCUSS AND DIRECT STAFF TO OBTAIN IMMEDIATE, SHORT-TERAM, INTERIM CITY ATTORNEY SERVICES VT. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDiNLENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE'VH:ETLNG. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6205 FOR ® FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 FL4RBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NOR_VLAL 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 ENSURE THAT REASONABLE ARRAN'GENIENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETI G. E 11 MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING — OCTOBER 29. 2013 VETERAN`S MEMORIAL HALL — 10:00 A.M. Mavor Irons called the meeting to order at 10:00 a.m AGENDA NO: A-5 MEETING DATE:-11/1212013 PRESENT: Jamie Irons Mayor Christine Johnson Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Rob Schultz Jamie Boucher Susan Slayton Rob Livick Amv Christev Steve Knuckles Joe Woods City Attorney City Clerk Administrative Services Director Public Services Director Police Chief Fire Chief Recreation & Parks Director I. ESTABLISH QUORUM AND CALL TO ORDER IL MOMENT OF SILENCE III. PLEDGE OF ALLEGIANCE Mayor Irons stated that this does not preclude the RFP process currently underway. IV. PUBLIC COMMENT John Barta stated he is suffering from Special Meeting/Closed Session overload. This meeting was again noticed with short notice. It is being held at loam when many members of the community can't afford to be out. He wanted to let Council know that manv of us are frustrated. Mayor Irons closed the public comment period. V. CITY COUNCIL TO DISCUSS AND DIRECT STAFF TO OBTAIN IMMEDIATE. SHORT-TERM, INTERIM CITY ATTORNEY SERVICES Mayor Irons polled the Council on their support or objection to this item. Councilmember Leage objects stating we are here talking about another lawyer, how many_ do we need? Councilmember Christine Johnson supports this meeting today based on developments over the weekend. Councilmember Nancy Johnson again voiced her objection to this illegal. unethical and unprofessional process. She stated that the termination process isn't until Friday's closed session and this is putting the cart before the horse. Councilmember Smukler is in favor as we are in negotiations for a separation agreement with our current Citv Attomev and it's important to maintain legal coverage for the City. ® Mavor Irons asked Administrative Services Director Susan Slayton questions about possible options for services as well as funding sources. Ms. Slayton hasn't contacted anybody to date. She hopes to contact Liebert Cassidy Whitmore who is a group of attorneys and is one that the City uses for training purposes. They have also provided legal services for us in the past. As far as funding sources; there is approximately $20- 25,000 in savings out of the City Attorney_ budget. There is approximately S350,000 that is unbudgeted in the Risk Management fund but she cautions using this as we will probably be using this for the City Attorney and possibly City Manager. There is 3.1 million in the Emergency Reserve. The public comment period for Item V was opened. Homer Alexander stated that on September 24 °, the Mavor was authorized to engage in hiring a law firm to deal with the Citv Attorney and City Manager personnel issues. According to the minutes. Mr. Smukler stated that time was very important. Mr. Simas's contract was retroactive to October 7 °. He doesn't understand why the full Council didn't have the full opportunity to review the proposals/contract at the meeting on Oct 8 h, only one day later. This is day 49 of the Rob Schultz saga: You could have waited to sign the contract, why wasn't it brought forward to the October 8t' City Council meeting? Whine he doesn't believe that the Rob Schultz termination was an emergency, in this case, you now have an emergency - all City business that requires a City Attorney has stopped. Now you are going through the correct process so that ail Council ® can be involved in selecting an interim attorney. W-hy a completely different approach from the meeting on the 24 h? Rick Grantham asked what the balance of the Risk Management Fund was a Year ago. He also stated that the Emergencv Reserve Fund sounded low. John Barta has obviously not been privy to the instructions given to Mr. Simas. It appears he was invested with the authority to place Mr. Schultz on administrative leave. Is this the case? We have a perfectly good Citv Attomev if we would only use him. He went on to say that emergency funds are to be used for things outside of our control: we have control here. He counted that there could be 5 different City Attorneys that the City may be dealing with in a period of 6 months. that's a "man created" problem. He is dismayed that this hasn't worked out better and in a more adult fashion. The public comment period for Item V was closed. Mavor Irons answered some of the questions posed during public comment: the contract was signed on the 7`s and the agenda for the 8`s had already been set. He asked Ms. Slayton to answer the financial questions. She stated that the Risk Management fund was much healthier but only had S300.000' unencumbered funds available. The Emergency Reserve Fund is something that the Council can decide what to do with. MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - OCTOBER 29, 2013 Councilmember Nancy Johnson has heard several questions asked in public comment and feels that Council is not answering those questions. Mr. Alexander asked why Council has changed direction. this is day 49 and it could have been taken care of much quicker Mr. Barra asked ® about Mr. Simas's role, how many attomevs will we end up with between now and June: and there was a question about backdating the contract. Councilmember Smukler stated that ivir. Simas was hired to help Council work through personnel issues: this is separate to the City_ 's need for legal counsel for our operations and business. As far as the amount of time this has taken_. this is a very challenging situation and they are trying to respect Mr. Schultz's needs as well as the City's needs. Councilmember Nancy Johnson asked how well we, as the entire Council. is being represented by Mr. Simas. She has complete confidence in our City Attorney to conduct day to day business. Councilmember Christine Johnson thinks that ivir. Barta's questions are fair. She agrees that this is complex and she agrees that it is very important to clarify for the public the following: the Council is negotiating with the City Attorney on a settlement agreement; to do this, we had to hire an attomev with personnel experience in employment law; then the RFP process is needed to hire an interim City Attorney; and then we needed to obtain immediate short term interim City Attomev services — this list does take on a bit of the absurd. We are talking about 4 separate processes and 4 different needs for legal services. The City Council priority today_ is to protect the Citv of Morro Bav; we are in the middle of negotiation with key people; that responsibility falls directly on the shoulders of the Council. They need to find a way to ensure that all residents and employees are legally covered. ® Councilmember Leage stated that our City Attorney has been protecting this town for a long time and he believes he would cam on. He doesn't see anv need to bring in another attomev. Citizens are getting very tired of this. While this process is going on; Mr.'Schultz can do his job and he believes he will do it as he is above reproach. C Councilmember Nancy Johnson totally and completely agrees with Councilmember Leage; our City Attorney has offered to work with an interim attomev for a smooth transition. She doesn't see a conflict of interest to conduct Citv business while you work on a termination agreement. Mavor Irons asked Ms. Slavton. that with direction from Council, how long it would take to obtain Leibert Cassidy Whitmore services. Ms. Slavton stated that if that were the direction from Council. she would make contact, they would draft a contract/proposal and -we should have something from them fairly quickly. She went on to say that she would need to know the scope, length of time, expectations, etc. Mayor Irons stated that the City Attorney's contract as well as municipal code should lay out the score of work that we are looking for. Ms. Slayton would also need to know the length of time you would want this person involved. She is also aware of some local City attorneys who provide municipal law: Tim Carmel and David Fleishman. Councilmember Nancy Johnson requested the following be put into the minutes: the first time the -Mayor spoke. he did not refer to the contract but instead he referred to Mr. Schultz's agreement which she understands is confidential. May_ or Irons responded that when he restated it, he stated employment contract for language. 3 MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - OCTOBER 29, 2013 MOTION: Mavor Irons moved to direct Susan Slavton. through the Citv Manager to obtain short term interim City Attorney services immediately and to report back to City Council at the nest available meeting. The scope of services has been laid out in the City Attomev contract and municipal code. The time would be for. 60 days. The motion was seconded by Councilmember Christine Johnson. Councilmember Smukler wanted to make a suggestion to the motion. Regarding the 60 day timeline he would rephrase it to say until the conclusion of the UP process. that contract is signed and the attomev is brought on board. He doesn't feel the motion gives Ms. Slavton the right amount of direction in reviewing options. He suggests that Ms. Slayton review and invite responses from firms that will include costs to ensure Betting a fair price. He requested that Mr. Carmel and -',vtr. Fleishman not be included in the request; not due to quality of their services but due to possible conflicts of interest. Councilmember Nancy Johnson asked that if we go out today or tomorrow in search of this interim attorney. what do you plan on doing with our current City Attorney sitting here today. She sees no conflict of interest in his serving the City_ of Morro Bay while working on the settlement agreement. Councilmember Leage feels this is getting out of hand: we have a capable attorney here that can take us through to when we get an interim City Attorney on hand. Councilmember Christine Johnson stated that 60 days seems too limiting. She also stated that she did a Google search for San Luis Obispo municipal law firms and both Grover Beach and SLCUSD/Port San Luis have contract attorneys that would be worth contacting. She suggested trying to find a local attorney without a direct connection to the City of Mono Bay. AMENDMENT TO THE MOTION: Replace the "60 days" with obtaining the Interim City Attorney to ensure transition overlap of this firm with the firm that is selected via the RFP process. Councilmember Smukler seconded the amendment and it carved 3-2 with Councilmembers Nancv Johnson and Leage voting no. Councilmember Nancy Johnson asked. we have a legally hired paid City Attorney sitting in this room, what will you be doing with him? Mayor Irons responded that those answers will be discussed in Thursday's meeting. VI. ADJOURiVMENT The meeting adjourned at 10:51 a.m. Recorded by: ie Boucher City Clerk 11 4 MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - OCTOBER 29. 2013 City of Morro Bay ® City Council Agenda Mission Statement The Cih' of Morro Bay is dedicated to the preservation and enhancement of the qualit)? of life. The City shall be committed to this purpose and will provide a level of municipal service and safe j, consistent with and responsive to the needs of the public. SPECIAL MEETING FRIDAY, OCTOBER 25, 2013; 9:00 A.M. VETERAN'S HALL - 209 SURF STREET, MORRO BAY, CA I. ESTABLISH QUORUM AND CALL TO ORDER II. MOMENT OF SILENCE Ill. PLEDGE OF ALLEGIANCE IV. PUBLIC COMMENT - Members of the audience wishing to address the Council on ® City business matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda; but unable to stay for the item; may also address the Council 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. ® V. DISCUSSION AND AUTHORIZATION FOR AN RFP FOR A CONTRACT INTERIM CITY ATTORNEY VI. DISCUSSION FOR COUNCIL DIRECTION OF CITY ATTORNEY VII. 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 772-6205 FOR FURTHER INFORiMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND HILL'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 13E MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 2 E AGENDA NO: A-4 MEETING DATE: 11/12/2013 ® AMENDED MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING — OCTOBER 25. 2013 VETERAN'S MEMORIAL HALL — 9:00A.M. Mayor Irons called the meeting to order at 9:00 a.m. PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Leage Noah Smukler STAFF: Andrea Lueker Jamie Boucher Susan Slayton Rob Livick Amv Christev_ Joe Woods Eric Endersbv Mavor Councilmember Councilmember Councilmember Councilmember City Manager Citv Clerk Administrative Services Director Public Services Director Police Chief Recreation & Parks Director Harbor Director I. ESTABLISH QUORUM AND CALL TO ORDER II. MOMENT OF SILENCE III. PLEDGE OF ALLEGIANCE IV. PUBLIC COMMENT Lynda Merrill stated that this was the first time the public has been asked their opinion about hiring any employee. She and her husband compiled a list of what they would like to see in a City Attorney: if we hired a full time attorney — could we cut down on expensive consultants; stay clear of local politics: don't need someone who is charming; be able to make tough, unpopular decisions when necessary; and doesn't need to attend social functions. Mayor Irons closed the public comment period. Councilmember Nancy Johnson, once again, objected to the illegal, unethical and unprofessional process you insist upon continuing. V. DISCUSSION AND AUTHORIZATION FOR AN RFP FOR A CONTRACT INTERIM CITY ATTORNEY Mayor Irons presented the staff report. The public comment period for Item V was opened: seeing none, the public comment period was ® closed. ® Councilmember Christine Johnson asked Councilmember Nancy Johnson what was illegal about this process. Councilmember Nancy Johnson responded that this process has been conducted in an illegal manner but will leave that decision up to the District Attorney who has been contacted. The Nlavor has broken the Brown Act; has continued to proceed with a process that is unethical and unprofessional. This process could have been done quickly and carefully and in private and not made into a public spectacle. Councilmember Christine Johnson asked for further clarification of what was illegal. Councilmember Nancy Johnson stated that it was her opinion that this process was illegal. Mayor Irons asked Council to focus on a timeline, content, and processes. He brought a sample Contract City Attorney RFP from the City of Hollister. Councilmember Smukler has been giving this some thought: Council needs to work through this effectively and ensure that we provide legal coverage for the City to our best abilities. He feels it's important to ensure we are following proper abilities for the public to work with us on these items, especially with the holidays approaching; we have the luxury of not being in an emergency situation and feels we need to follow a more drawn out process and that the December l0a' Council meeting should be a place to start and work backwards from. Councilmember Nancy Johnson asked when Councilmember Smukler received the Hollister is information to which he answered: he too received it when he arrived to the meeting. Councilmember Leage asked why we are putting out an RFP on a job that hasn't been.vacated vet: doesn't our current City Attomey still work here? Councilmember Christine Johnson asked for clarification from Councilmember Smukler about the Hollister RFP. Councilmember Smukler reviewed this before the meeting: he talked to Mr. Irons about this earlier and sat down today to review the copy before the meeting. This is only an example of what an outline for an RFP could be. Councilmember Smukler stated that it was important to establish a transition plan for this position and to ensure legal coverage for the City to the best of our abilities. Mayor Irons stated that there were plenty of contract RFP's out there to review from other cities and he brought these documents in. in an attempt to make this meeting efficient and to get through it. City Manager Andrea Lueker presented a possible framework for an RFP. Generally we could adequately prepare an RFP for the November 12`" meeting for your review. publicize it for 4-6 weeks; with interviews in January and award in late January. She felt the most important was to have it available for 4-6 weeks. ® Mayor Irons felt it important to use a more compressed timeline. 2 MINUTES - MORRO BAY CITY COUNCIL - OCTOBER 25. 2013 ® Council as a whole discussed their personal availabilities as well as discussed a timeline for the RFP process to include Council approval of the document. deadline to submit, review period. interview, and award of contract. Discussion varied on the turnaround time: some members felt it important to move this along very quickly (December 10 h deadline to award), others to take our time (late December/early January award). Discussion was also held as to the term of the contract which would lend itself to helping decide how long of a time period the RFP should be out there. A 5 minute recess was called by Ylayor Irons for Councilmembers to review their own calendars. before continuing on with the discussion of a tentative calendar for the RFP process. Councilmember Christine Johnson. for the record. is extremely concerned about disclosures made today on items; it is the responsibility of each Councilmember to know what is a closed session discussion and what is an open session discussion. A tentative calendar was discussed and conceptually accepted by all, with the understanding that there could be some flexibility in everything but the RFP approval and close date. as well as Council consensus for the RFP being good for 6 months as follows: 11/7/13 ® 11/12/L3 11/13/13 12/3/13 12/4 — 12/9 12/10/13 Week of 12/16/13 Mid Dec — Mid Jan Draft RFP available in Council packet with request for Councilmembers to review and provide City Manager comments prior to the 11/12/13 meeting Approval of the RFP on the Council agenda Hopeful date to have the RFP out to firms Deadline for firms to submit proposals Council evaluate proposals Selection of firms to be interviewed at a Council meeting Interviews of firms Award of contract at a special meeting at the end of December/ early January or first meeting in January MOTION: Mayor Irons motioned to move forward with the RFP proposal process as stated under the outline that was stated by City Manager Locker. The motion was seconded by Councilmember Smukler and carried 3-2withCouncilmembers Nancy Johnson and Leage voting no. VI. DISCUSSION FOR COUNCIL DIRECTION OF CITY ATTORNEY Mayor Irons presented the staff report. There is an interim period that Mr. Schultz is our City Attorney and we are discussing bringing in an interim CA in January; this is our opportunity to discuss concerns and needs of ivir. Schultz in open session. This is important, as he reports to all of Council. to have this discussion in open session. Councilmember Nancy Johnson believes that our current City Attorney knows what his scope of work and project needs are. 3 MIN'UTES - MORRO BAY CITY COUNCIL - OCTOBER 25, 2013 The public comment period for Item VI was opened: seeing none; the public comment period was closed. Mayor Irons stated this was an opportunity for this Council to have an open discussion on whether we would we want to have Mr. Schultz prepare a transition plan for us and discuss his work priorities as he sees them; for us as a Council to look at. Councilmember Nancy Johnson feels uncomfortable in having this discussion without Mr. Schultz being here and feels that maybe this needs to be postponed until Mr. Schultz can be in attendance. Councilmember Smukler stated that he appreciates the opportunity to talk in an open session: feels iCs important that Mr. Schultz schedule a meeting with us that reviews his current case load and projects: schedule a discussion of transition; and, begin to develop the information that would be necessary for new legal counsel that is coming on board. It's important to keep the communication up with him. Councilmember Leage understands that we will need to know what Mr. Schultz has on his schedule. Councilmember Christine Johnson stated it would also be important to schedule a closed session to go over all litigation and pending litigation in a detailed point of view in an effort to create a ® succession plan with an eye to a hand -over. We are currently receiving weekly City Attorney updates: she would like to those to continue but in greater detail and include more specific dates and timelines in anticipation of a handover. L Mayor Irons reiterated that in the open session meeting they would review weekly updates, current work priorities and projects, as well as have a closed session to go over litigation and pending litigation. Councilmember Smukler agrees with a closed session to review litigation as it leads itself to succession planning. Outside of the litigation side. he asks to schedule an open session review of key case loads and current work projects he has on his plate. Mayor Irons reiterated again, a closed session meeting to go over litigation and pending litigation with an eve for handover/succession planning; an open session that would discuss work load and work priorities: as well as to continue weekly updates with a request for more detail. Councilmember Christine Johnson wants a timeline for each item reflected on the weekly updates, specifically looking to the future. Councilmember Smukler stated that Council received correspondence from City Attorney Rob Schultz for 3 anticipated Council Agenda items to get us to the end of the year which works well with what we are talking about here.- He appreciates his heads up on this. 4 MLNUTES - MORRO BAY CITY COUNCIL - OCTOBER 25. 2013 Mayor Irons added a request for an update on any/all negotiations, contracts, and projects. and he requests to.see any ongoing negotiations with Dynegy which he would like to see come back to closed session with regards to the property for the bridge. Mayor Irons read a synopsis of items being requested of the City Attorney: closed session for pending litigation and current litigation in play with an eye for handover/succession planning; weekly updates providing more detail and explain timeline for each project with a date when they are due: open session meeting and a report on his workload and work priorities and affirm work priorities already laid out to include negotiations, contracts and projects; and, closed session on where we are at with Dynegy with clarity_ on where we are at with the property for the bride. Councilmember Christine Johnson also asked that Risk Management be added as a discussion point in open session. MOTION: Councilmember Smukler approved the direction for the City Attorney based on the reviewed items that the Mayorjust read and schedule meetings accordingly. The motion was seconded by Councilmember Christine Johnson and carried 3-2 with Councilmembers Nancy Johnson and Leage voting no. VII. ADJOURNMENT ® The meeting adjourned at 11.01 a.m. Recorded bv: amie Boucher City Clerk R MINUTES - MORRO BAY CITY COUNCIL - OCTOBER 25, 2013 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 CLOSED SESSION MEETING TUESDAY, OCTOBER 22, 2013 CITY HALL CONFERENCE ROOM - 5:00 P:M. 595 HARBOR ST., MORRO BAY, CA. ESTABLISH QUORUM AND CALL TO ORDER SUMMARY OF CLOSED SESSION ITEMS - The Mavor will read a summary of Closed Session items. CLOSED SESSION PUBLIC COMMENTS - Members of the public may address the City Council on any matter that is listed on this Closed Session auenda. Unless additional time is authorized by the City Council, remarks shall be limited to three minutes. THE CITY COUNCIL WILL MOVE TO CLOSED SESSION CS-1 GOVERNMENT CODE SECTION 54956.8: PROPERTY TRANSACTIONS: Instructinu 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 parcel. Property: Lease Site 30W-33W; Bay Front Marina, Water Lease Adjacent to 201 Main Street Negotiating Parties: Coakley and City of Morro_ Bay Neuotiations: Lease Tetras and Conditions CS-2 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 following employee organization and giving instructions to the Designated Representative: Management Employees. CONVENE TO OPEN SESSION - Announcement of reportable action from closed session. if any. DATED: October 17, 20li an-Lv Dana Swanson, Deputy City Clerk IN COMPLIANCE WITH THE AMERICANS WITH DISABILITY 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 U MINUTES — NIORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING — OCTOBER 22. 20 CITY HALL CONFERENCE ROOM — 5:OOPNvI PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Lease Noah Smukler STAFF: Andrea Lueker Robert Schultz Eric Endersby Susan Slayton ESTABLISH QUORUM AND CALL TO ORDER AGENDA NO: A-2 MEETING DATE: 11/12/2013 Mavor Councilmember Councilmember Councilmember Councilmember City Manager Citv Attornev Harbor Director Administrative Services Director SUMMARY OF CLOSED SESSION ITEMS - The Mayor read a summary_ of Closed Session items. CLOSED SESSION PUBLIC COMMENTS - Mayor Irons opened the meeting for Public Comment: seeing none, the public comment period was closed. The Citv Council moved to Closed Session and heard the following items: CS-1 GOV-ERCODE SECTION 54956.8: 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 parcel. • Property: Lease Site 30W-33W; Bay Front Marina, Water Lease Adjacent to 201 Main Street Negotiating Parties: Coakley and City of Morro Bay Negotiations: Lease Terms and Conditions CS-2 GOVERNMENT CODE SECTION 54957.6. CONFERENCE WITH LABOR NEGOTIATOR: Conference with Citv Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the following emplovee organization and giving instructions to the Designated Representative: Management Employees. CITY COUNCIL CONVENED TO OPEN SESSION — The City Council convened to open session: City Attorney, Rob Schultz reported that no reportable action under the Brown Act was taken. ADJOURNMENT The meeting adjourned at 5:50pm. ® Recorded by: antic Boucher Citv Clerk ® City of Morro Bay City Council Agenda iVission Statement The City of Alorro 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 TUESDAY, OCTOBER 22, 2013 VETERANS i\IEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE CLOSED SESSION REPORT MAYOR & COUNCILMEMBERS' REPORTS. ANNOUNCEMENTS & PRESENTATIONS ® PUBLIC PRESENTATIONS - None PUBLIC COMMENT - Members of the audience wishing to address the Council on City business matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda, but unable to stay for the item, may also address the Council 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 anv 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. 11 A. CONSENT AGENDA Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION MEETING HELD ON OCTOBER 8, 20L3; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF CITY COUNCIL MINUTES FOR THE REGULAR CITY COUNCIL MEETING HELD ON OCTOBER 8, 2013; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-3 AWARD OF CONTRACT FOR THE PROJECT NO. MB-2013-S4: 2013 STREET REHABILITATION PROGRAM: 3-LAYER CAPE AND MICROSURFACING PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Award the project contract to the lowest responsible bidder. A-4 AWARD OF CONTRACT TO SOUZA CONSTRUCTION. INC. OF SAN LUIS OBISPO. CA FOR THE PROJECT NO. M13-2013-S1: 2013 STREET REHABILITATION PROGRAM- DIG -OUT AND PAVEMENT REPLACEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Award the Project contract to Sousa Construction, Inc. in the amount of S402,585. A-5 RESOLUTION DETERMINING ISSUANCE OF AN ALCOHOLIC BEVERAGE CONTROL PERMIT FOR AN OFF -SALE BEER AND WINE CONVENIENCE MARKET LOCATED AT 845 EMBARCADERO SUITE D; (POLICE) RECOMMENDATION: Approve Resolution 50-13. A-6 RESOLUTION NO. 51-13 ADOPTING THE MEMORANDUM OF UNDERSTANDING WITH THE SERVICE EMPLOYEES INTERNATIONAL UNION (SEIU), LOCAL 620, MISCELLANEOUS AND HARBOR SAFETY EMPLOYEES, AND RELATED COMPENSATION; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 51-13, approving the Memorandum of Understanding with SEIU, Local 620. A-7 ADOPTION OF RESOLUTION NO. 52 -L3 APPROVING THE REAL ESTATE AGREEMENT FOR THE SALE OF CITY -OWNED VACANT LOT PROPERTY ON ® THE CORNER OF CORAL AVENUE AND SAN JACNTO STREET WITH A STREET ADDRESS OF 2783 CORAL AVENUE IN MORRO BAY_. CALIFORNIA-, (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution 52-13 approving the Real Estate Agreement for the sale of City -owned property at on the corner of Coral Avenue and San Jacinto Street with a street address of 2783 Coral Avenue in Morro Bay, California. B. PUBLIC HEARINGS B-1 INTRODUCTION AND FIRST READING OF ORDNANCE NO. 583: REPEALING. AMENDING, AND REENACTING CHAPTERS 14.01-14.12 AND 14.52 OF THE CITY OF MORRO BAY MUNICIPAL CODE (BUILDNGS_AND CONSTRUCTION); (PUBLIC SERVICES) RECOMMENDATION: Introduce for first reading by number and title only, Ordinance No. 583; repealing, amending, and reenacting Chapters 14.01-14.12 and 14.52 of the City of Morro Bay Municipal Code (Buildings and Construction) to incorporate the 2013 California Building Standards Code, as adopted by the State of California, and the local modifications thereto. B-2 ZONING TEXT AMENDMENT A00-015 DRAFT SIGN ORDNANCE (MUNICIPAL CODE SECTION 17.68); (PUBLIC SERVICES) RECONINIENDATION: Open the public hearing and receive testimony; and, direct staff to prepare an environmental document based on the draft Sign Ordinance as forwarded by the Planning Commission on September 4, 2013 and return with the environmental document and the draft Sign Ordinance for the first reading on December 10, 2013. C. UNFINISHED BUSINESS C-1 AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSAL (UP) FOR A RATE STUDY FOR WATER & SEWER RATES WITH ADDITIONAL BACKGROUND INFORMATION; (PUBLIC SERVICES) RECOMMENDATION: Prepare and issue an RFP and award a contract for the analvsis of Water and Sewer rates for potential adjustments, in accordance with the Citv's Consultant Hiring Policy. C-2 REVIEW AND CONFIRM THE MASTER PLANNING PROCESS FOR THE NORTHERN WATERFRONT IMPROVEMENT PLAN; (RECREATION & PARKS) RECOMMENDATION: review the history and progress of the Northern Waterfront Improvement Plan (NWIP) and direct staff to continue with the Park Master Planning process. D. NEW BUSINESS D-1 MULTI -HAZARD EMERGENCY RESPONSE ® OPERATIONS CENTER REVIEW; (FIRE) RECOMMENDATION: Review and file. PLAN AND EMERGENCY 3 D-2 AUTHORIZATION TO ENTER INTO RENEGOTIATION OF LEASE TEILNIS AND CONDITIONS FOR LEASE SITE 53-56/53W-56W LOCATED AT 501 g ENiBARCADERO (ESTERO LANDING INC.. KEN SCOTT); (HARBOR) RECOMMENDATION: Provide staff direction, staff is recommending Alternative A. D-3 REPORT ON RESULTS OF OBTAINING OUTSIDE INDEPENDENT LEGAL COUNSEL; (MAYOR) RECOMMENDATION: Receive and tile. D-4 DISCUSSION REGARDING PARKING N-LIEU FEES N THE DOWNTOWN AREA; (CITY ATTORNEY) RECOMMENDATION: Review the staff report and Resolution 39-08 and provide direction regarding Parking In -Lieu Fees in the Downtown Area. D-5 DISCUSSION OF ITEMS TO PLACE ON THE JOINT CITY COUNCILIPLANNNG COMMISSION MEETING; (PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff to agendize items for the Joint City Council/Planning Commission Meeting scheduled for Tuesday, October 29, 2013. ® E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS F. ADJOURNMENT 11 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 772-6205 FOR FURTHER INFORaNIATION. b1ATERLALS 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 HILL'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 AGENDA NO:- A-3. MEETING DATE: 11/1212013 ® AMENDED MNUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 22. 2013 VETERAN'S MEMORIAL HALL — 6:00P.M. PRESENT: Jamie Irons Mayor Christine Johnson Councilmember Nancy Johnson Councilmember George Lease Councilmember Noah Smukler - Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney Jamie Boucher City Clerk Amy Christey Police Chief Steve Knuckles Fire Chief Susan Slavton Administrative Services Director Joe Woods Recreation & Parks Director Eric Endersby Harbor Director Rob Livick Public Services Director Kathleen Wold Planning Manager Katie Mineo Assistant Planner/Administrative Technician ® Mayor Irons called the meeting to order at 6:00 p.m. ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE CLOSED SESSION REPORT — City Attorney Robert Schultz reported that City Council met in a Special Closed Session on October 22. 2013 on the following items: Government Code Section 54956.8: 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 parcel: Lease Site 30W-33W. Bay Front Marina (Water Lease adjacent to 201 Main Street): and. 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 following employee organization and giving instructions to the Designated Representative: Management Employees; no reportable action under the Brown Act was taken. MAYOR AND COUNCILVIEMBERS' REPORTS. ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS - None ® PUBLIC COMMENT Debra Garcia. owner of Golden Anchor Financial Services. located at 645 Main Street gave the Morro Bay Business Report. Ms. Garcia has been in the mortgage business for over 20 years. She is excited to be here and be part of the Chamber. She is available 24/7 and very much appreciates all the open arms in Morro Bay. Jane Heath spoke with a message for her iVlorro Bay neighbors being asked to sign the recall petition — seek the truth. She urged the public to look carefully at the reasons offered and compare them to Mayor Irons' response. She would hope the public would allow the new Council more than 9 months to demonstrate their vision for the City. There are 5 reasons offered for the recall but there is really only one, the recall arose from the intent to terminate the contracts of the City Manager and City Attorney. Longevity and continuity can be a benefit_: it can also be a detriment if all they have known is that which you are trying to change. Garry Johnson announced the ls` Annual Vet's Day Celebration being held at the Veteran's Hall on Sunday. November 10`". The event is open to Veterans, their families as well as the community. Sv will be there with his boxes to mail to our active military overseas. Susan IvIcElhinney spoke about the fence permit that profoundly affected her client, Mr. Goodwin. She claimed that they were allowed to make outrageous allegations about Mr. Goodwin which can't be substantiated because they contained only tiny portions of the truth. ® She stated it behooves Council to exclude unproven claims or allow the person in which the claims were made to controvert them as it appeared that the board made their decisions based on these allegations. Joan Solu spoke on behalf of the Morro Bay Community Foundation announcing their Annual fundraiser coming up on Saturday. November 9 h at the Morro Bay Community Center. Their organization provides supplemental scholarships for kids who otherwise wouldn't be able to participate in youth sports or youth programs. Show tickets are $20, dinner tickets are S 10. Phil Kispersky spoke on the petition to recall. He hoped to clear up some grossly inaccurate information that is being communicated. By signing, you are only placing it on the ballot: if signing, your name will be kept confidential: the recall will be on the June Primary ballot and should cost no more than $1000; it is being done in June because Mayor Irons' term runs through December and having a lame duck Mayor is not good business: and if successful, the interim Mayor will be selected through the same election process in June. Marlene Owens stated that she has served on many committees and nothing like this has ever happened. She doesn't like what is happening. she knows you have the right but your harassment is wrong.. Saving we are going to fire you once we get all our ducks in a row is harassment. Rick Grantham announced that the Veteran's Day Celebration is not just for veterans but for anyone who wants to support veterans, the general public is welcome. He also announced the ® Annual Thanksgiving Day Dinner being sponsored by the Police Officer Association as well as MINUTES - MORRO BAY CITY COUNCIL - OCTOBER 22, 2013 ® the Rotary Club of Morro Bay. The dinner is being held on Thanksgiving Day from 1-3 )pm: the boy scouts will be serving and the girl scouts decorating the day before. Hunter Kilpatrick stated that on September 12a', Nit. Schultz, Ms. Lueker and several citizens asked Council if there were causes for the dismissal. Mayor Irons stated on record there was no cause. Last night. Mayor Irons stated that statement was made for the purpose of that meeting only. It appears cause is indeed in play, and as such, you have violated the rights of Mr. Schultz and Ms. Lueker as they both have stated publicly they wanted it heard in open session. You have stated you need legal counsel to approve the minutes. Minutes are factual recordings of events and shouldn't need counsel review. He asked that all Council email and phone records, personal and public, be made available to the public to review for Brown Act violations. He indicated that 5 past Mayors and decades of previous councilmembers adamantly disagreed with your actions. Save the City millions of dollars and resign tonight. Jim Pauley lent his support to the Mayor and City Council. He feels the action and process they are using in regards to the potential dismissals are fair and follow the Brown Act. You have his full support. Bob Keller hoped we can start focusing on City's business issues instead of wasting time and money on a recall. It's okay to agree to disagree, we are all neighbors. No recall is needed as elections are coming in June. He supports the present Mayor and present City Council. ® John Diodati presented statistics from prior June elections showing the numbers of voters who voted for the prior elected Mayors and Councilmembers in June 2008. "2010 and 2012. He stated that the most recently elected officials. Mayor Irons and Councilmembers Christine Johnson and Noah Smukler were elected by an overwhelming majority of the community and collected many more votes than those in 2010 and 2008. He urged the public to educate themselves about the recall petition and if you are unsure, don't sign it. John Barba stated that Mr. Diodati's numbers are misleading. Homer Alexander stated that the slide used by VIr. Diodati was complete spin. Figures can lie and liars can figure. He stated that those tactics are typical of the way that your supporters try and deceive the citizens of this community. Rosalie Valvo stated that there were 4 candidates for Mayor in the 2012 election and Mayor Irons won outright. She doesn't see any contradictions and supports the Mayor 100%. John Gajdos stated that the 2089 number of votes that Mayor Irons received that was on the slide only represents 1/3 of the registered voters. Also; people have been told not to sign the recall petition and he wanted to reiterate that you are not doing anything more than putting it on the June ballot; if you sign, your name will not be made public, the recall won't be expensive and they don't want to have the Mayor up on the dais making poor decisions for the next 6 months. Tim Crolev stated that Mayor Irons won_: he got more votes than all other candidates combined. Is The face of Morro Bay is changing. 3 MINUTES - MORRO BAY CITY COUNCIL - OCTOBER 22. 2013 ® Carla Wixom stated that this Citv Council majority continues to talk about past City Council policy violations. You've yet to disclose the money spent on evaluations of the City IN/tanager and City Attorney and vet You continue to reference the actions taken at the meeting in November 2012. It's too bad that no one ever talks about what these employees have forfeited. 5 Years ago they gave up pay raises, and they led way in pension reform and have never been recognized for it. Bill Peirce stated that the recall petition is both legal and certified and the public shouldn't be afraid to sign it. The petition is upfront and it gives the people a chance to decide whether or not they are happy about the job you are doing. John Headding spoke on people's health. It is flu season and we are a melting pot for a flu virus to come to Morro Bay. Get your flu shot!! The Public Comment period was closed. A. CONSENT AGENDA Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A. CONSENT AGENDA Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION MEETING HELD ON OCTOBER 8. 2013: (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF CITY COUNCIL MINUTES FOR THE REGULAR CITY COUNCIL MEETING HELD ON OCTOBER 8. 2013; (ADMINISTRATION) RECONMENDATION: Approve as submitted. A-3 AWARD OF CONTRACT FOR THE PROJECT NO. MB-201I-S4: 2013 STREET REHABILITATION PROGRAM: 3-LAYER CAPE AND MICROSURFACING PROJECT: (PUBLIC SERVICES) RECOMMENDATION: Award the project contract to the lowest responsible bidder. A-4 AWARD OF CONTRACT TO SOUZA CONSTRUCTION. INC. OF SAN LUIS OBISPO. CA FOR THE PROJECT NO. MB-2013-S1: 2013 STREET REHABILITATION PROGRAM- DIG -OUT AND PAVEMENT REPLACEMENT ® PROJECT: (PUBLIC SERVICES) 4 MINUTES - MORRO BAY CITY COUNCIL -OCTOBER 22, 2013 ® RECOMMENDATION: Award the Project contract to Sousa Construction, Inc. in the amount of S402,585. A-5 RESOLUTION DETERMINING ISSUANCE OF AN ALCOHOLIC BEVERAGE CONTROL PERMIT FOR AN OFF -SALE BEER AND WINE CONVENIENCE MARKET LOCATED AT 845 EMBARCADERO SUITE D; (POLICE) RECOMMENDATION: Approve Resolution 50-13. A-6 RESOLUTION NO. 51-I3 ADOPTING THE MEMORANDUM OF UNDERSTANDNG WITH THE SERVICE EMPLOYEES NTER'JATIONAL UNION (SEIU), LOCAL 620. MISCELLANEOUS AND HARBOR SAFETY EMPLOYEES. AND RELATED COMPENSATION; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 51-13, approving the Memorandum of Understanding with SEIU, Local 620. A-7 ADOPTION OF RESOLUTION NO. 52 -li APPROVING THE REAL ESTATE AGREEMENT FOR THE SALE OF CITY -OWNED VACANT LOT PROPERTY ON THE CORNER OF CORAL AVENUE AND SAN JACNTO STREET WITH A STREET ADDRESS OF 2783 CORAL AVENUE N MORRO BAY. CALIFORNIA: ® (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution 52-13 approving the Real Estate Agreement for the sale of City -owned property at on the corner of Coral Avenue and San Jacinto Street with a street address of 2783 Coral Avenue in Morro Bay, California. Mayor Irons opened up the public comment period for items on the Consent Calendar: seeing none, the public comment period was closed. Councilmember George Leage pulled Item A-5; Councilmember Nancy Johnson pulled Item A- 7: Councilmember Smukler pulled Items A-3 and A-4; and Mayor Irons pulled Item A-2 from the Consent Calendar. MOTION: Councilmember Smukler moved the City Council approve Items A-1 and A-6 of the Consent Calendar as presented. The motion was seconded by Councilmember Nancy Johnson and carried unanimously 5-0. A-2 APPROVAL OF CITY COUNCIL MINUTES FOR THE REGULAR CITY COUNCIL MEETING HELD ON OCTOBER 8. 2013; (ADMINISTRATION) Amended minutes were previously sent to Council for their review. 5 MINUTES - MORRO BAY CITY COUNCIL - OCTOBER 22, 2013 ® MOTION: Mayor Irons moved for approval of the October 8. 2013 minutes as amended. The motion was seconded by Councilmember Christine Johnson and carried unanimouslv 5-0. A-3 AWARD OF CONTRACT FOR THE PROJECT NO. MB-2013-S4: 2013 STREET REHABILITATION PROGRAM: 3-LAYER CAPE AND MICROSURFACNG PROJECT; (PUBLIC SERVICES) Councilmember Smukler pulled Item A-3 to give Public Services Director Rob Livick the opportunity to announce the item needed to be continued to the next Council meeting. A-4 AWARD OF CONTRACT TO SOUZA CONSTRUCTION. NC. OF SAN LUIS OBISPO. CA FOR THE PROJECT NO. MB-2013-S1: 2013 STREET REHABILITATION PROGRAM- DIG -OUT AND PAVEMENT REPLACEMENT PROJECT; (PUBLIC SERVICES) Councilmember Smukler pulled this item to give Public Services Director Rob Livick the opportunity to speak on the contract and work being done. MOTION: Councilmember Smukler moved the City Council approve Item A-4 and continue Item A-3 for further review of bids. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. is A-5 RESOLUTION DETERMINING ISSUANCE OF AN ALCOHOLIC BEVERAGE CONTROL PERMIT FOR AN OFF -SALE BEER AND WINE CONVENIENCE MARKET LOCATED AT 845 EMBARCADERO SUITE D; (POLICE) Councilmember George Leage pulled Item A-5 so that he could recuse himself as his property is within 500 feet of the proposed location. Councilmember Nancy Johnson is not totally opposed but wonders if it's necessary as it is located between 2 businesses that already sell alcohol. It also bothers her that this business rents out boats to the public. Councilmember Christine Johnson stated that the Police Chief said that its beer and wine only. There are no crime statistics in the area and doesn't feel there are any reasons not to support it at this time. Councilmember Smukler stated the memo speaks to, Councilmember Nancy Johnson's concerns as the permit can be challenged and changes made if issues arise. He feels this helps facilitates the applicant's tour boat business. MOTION: Councilmember Smukler moved to approve Item A-5, approving a Resolution allowing the issuance of an alcoholic beverage control permit for an off -sale beer and wine convenience market located at 845 Embarcadero_. Ste. D. The motion was ® seconded by Councilmember Christine Johnson and carried unanimously 3-1-1 with 6 MINUTES - MORRO BAY CITY COUNCIL - OCTOBER 22, 2013 ® Councilmember Nancy Johnson voting no and Councilmember Leage having recused himself. A-7 ADOPTION OF RESOLUTION NO. 52 -13 APPROVING THE REAL ESTATE AGREEMENT FOR THE SALE OF CITY -OWNED VAC?AT LOT PROPERTY ON THE CORNER OF CORAL AVENUE AND SAN J.ACINTO STREET WITH A STREET ADDRESS OF 2783 CORAL AVENUE IN MORRO BAY. CALIFORNIA: (CITY ATTORNEY) Councilmember Nancy Johnson pulled this item as she has some concerns. She feels this is being rushed and if you look at the number of lots on that property, we are only getting S 150,000 for each lot which she feels is not enough. She feels that with the current real estate market_. we need to go back and look at it again. Councilmember Smukler stated that this item has been in front of Council multiple times trying to get it sold and feels that there is also a price to retain the property. Realistically there are a lot of questions about the current real estate market. He took time to talk to other real estate agents to get their range of prices for the lot and we are well above what they have said. He also sees a benefit to it being a cash deal. City Attorney Rob Schultz stated that there were 3 adjustments that needed to be made to the report as well as there are 3 contingencies in the agreement that must be met. The contingencies ® are that the appraised value has to meet the offer: there is a right of refusal with the original developer: and. anytime you sell property of this size. you have to offer it to the Countv for affordable housing. The minor adjustments to the agreement are: page 6 — 6a at end of first paragraph put in ( ) "due diligence materials". on page 7 — paragraph 3d needs to read 35 days after the delivery to buver of due diligence materials: and on page 16, paragraph d — strike out the last sentence. Councilmember Leage pointed out that several years ago we were offered 2.4 million dollars for this property. We weren't able to close the deal because of a Council member not wanting to cut down trees. Councilmember Nancy Johnson continues to think we can do better and it behooves all of Council to increase the amount we can sell this for. Mayor Irons is supportive of this. It still has to have an appraisal to qualify for the sale. MOTION: Mayor Irons moved approval of Item A-7 with the amendments stated by Mr. Schultz. The motion was seconded by Councilmember Smukler and carried 4-1 with Councilmember Nancy Johnson voting no. B. PUBLIC HEARINGS B-1 INTRODUCTION AND FIRST READING OF ORDINANCE NO. 583: REPEALING. ® AMENDING, AND REENACTING CHAPTERS 14.01-14.12 AND 1=4.32 OF THE 7 MINUTES - MORRO BAY CITY COUNCIL - OCTOBER 22. 2013 CITY OF MORRO BAY MUNICIPAL CODE (BUILDINGS AND CONSTRUCTION); ® (PUBLIC SERVICES) Public Services Director Rob Livick presented the staff report. Mayor Irons opened up the public comment period for Item B-1; seeing none, the public comment period was closed. MOTION: Councilmember Christine Johnson moved approval of B-1. The motion was seconded by Councilmember Leage and carried unanimously 5-0. City Manager Andrea Lueker read the Ordinance by title and number only. B-2 ZONING TEXT AMENDMENT A00-015 DRAFT SIGN ORDINANCE (MUNICIPAL CODE SECTION 17.68); (PUBLIC SERVICES) Planning Manager Kathleen Wold presented the staff report. Mayor Irons opened up the public comment period for Item B-2. John Barta wanted to thank the Public Services Department for their work on this. He felt that sandwich board signs are useful at tunes if well regulated; they are an important part of signage ® needs. He suggested doing a field test; ie: go to a number of businesses and see what they have, then see if what you are proposing will be better. E Amber Badertscher stated that this proposed ordinance is saving that a business can't use brand names for advertising but she is aware of others who use brand names on their outside umbrellas. She still feels rights are being taken awav from some businesses while at the same time: staff is finding a way to only include the Embarcadero in the new sign program. If you want to test if a program works. try it in an area that has never been promoted. She feels the document has many loopholes, for example it doesn't allow a stack of tires but you can stack wine barrels. She asked that the Council send this back to the Planning Commission to help all businesses succeed. John Headding realizes the importance of presenting the right fagade to those coming into your community. A lot of time and effort has been put into this document and no document will satisfy everybody. He feels this is a fair document and is consistent -with other like documents he's seen. There are 2 changes he'd suggest — when making reference to terms, include a visual' right next to the example; and make the process for approval simple and fast. The public comment period for Item B-2 was closed. Councilmember Smukler liked the idea raised by the Chamber of Commerce to help facilitate district to district presentations on the proposed sign ordinance, specific to each district, each area's regulations and offer those businesses the opportunity to focus and comment on what's there. i:I MINUTES - MORRO BAY CITY COUNCIL- OCTOBER 22, 2013 ® Councilmember Nancv Johnson addressed a couple of issues: she thanked staff for getting to different districts.as each have different needs; she wants it to be easy and affordable; she has advocated for feather flags in specific areas, especially on Quintana and North Main: she wants to talk more about flashing or neon signs: she wants us talk about windows completely covered in painted advertising; and; as far as sandwich board signs. while she doesn't like them, maybe instead they could be `'one legged signs' or decorative signs. Councilmember Leage would hate to see sandwich board signs come back as he feels they are hazardous. Councilmember Christine Johnson agrees with Councilmember Nancv Johnson that feather flags in certain areas are a good idea. It may be important to follow up with the Coastal Commission on feather flags in the No. ivlain and Quintana districts. If they are allowed by Coastal Commission. she is in support of them with a permit. She also supports sidewalk signs in areas outside of the Embarcadero as long as they are permitted. Mayor Irons feels we either need to set up additional meetings to get through this or work with the Chamber to do district by district meetings. He has talked to many business owners who use sandwich board signs and they sav that their businesses haven't necessarily done better based on their utilization. He also agrees that making it simple and inexpensive is important and possibly set up a dry run application process during the Chamber district informational meetings. ® Councilmember Smukler said he is looking at this as fairly close to a working document with the most important thing now is to talk to the businesses and make sure we are hearing from them. Before we schedule special meetings, he would also like to take the Chamber up on going to districts for presentations and then move to a more in depth Council meeting. Councilmember Nancv Johnson stated that is our chance to get this right. She also likes the idea of district meetings with the Chamber and wanted to hear from them. Mayor Irons reopened up the public comment period for Item B-2. Craig Schmidt. Chamber of Commerce CEO stated that the Chamber is happy to do this. He would hold focused district meetings which would be an opportunity for additional public comment before being sent back to Council. John Barta wanted to add a comment, if staff looked at AGP video, a sign inventory was done and they should have the video for review-. Greta Shucker a local business owner loves the idea of going district to district as it would help her business. Linda Donnelly stated that there is a business on Main Street that at night time is really bright with neon lights. She is hoping that this ordinance would change that. ® The public comment period for Item B-2 was closed. 0 MINUTES - MORRO BAY CITY COUNCIL - OCTOBER 22, 2013 ® There is Council consensus for staff to get together with Craig Schmidt at the Chamber to set up district meetings. The City can advertise these through the Notify Me program. C. UNFINISHED BUSINESS C-I AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSAL (RFP) FOR A RATE STUDY FOR WATER & SEWER RATES WITH ADDITIONAL BACKGROUND INFORMATION; (PUBLIC SERVICES) Public Services Director Rob Livick presented the staff report. Councilmember Nancy Johnson thinks we also need to address the cost of the reclamation process into the study. Mr. Livick wasn't sure we could get that information as we aren't far enough along in the process. The public comment period for Item C-1 was opened. John Barra stated the Coastal Commission asked us to provide them reports on the water master plan. The State then said that everyone has to do it; we haven't neglected our duty to the Coastal Commission but it was folded it into the State reporting. He looked at his water bill today; there is a water fee and a sewer fee. There is another component. the cost of reclamation. In order to be transparent, we need to delineate that cost out. There is also inflation of costs; but most of ® what goes into our water cost are bonds with a fixed payment plus a separate payment for the desalination plant which has been paid off. Those bonds one day will be paid off which should create a high cash flow benefit. Fj Betty Winholtz agrees with what Mr. Barra said about the fixed costs of our water. We have over time. bought 2.5 allotments of State water. In 2004 the sewer rates first went up as they weren't matching maintenance costs. In 2008 we raised rates on an inflationary basis which goes up each year. One of the reasons you need to look at increases is that you have increasing costs. You have the choice as to what you spend the money on - do we need a multi -million dollar, million gallon tank on Nutmeg, she understands the need for the fire issue but to what extent is that in balance. She hopes you won't be ready to go out and look at fees yet. The public comment period for Item C-1 was closed. Rob Livick answered questions from public comment: the inflationary rate was passed in 2008, since then State law has changed and those types of increases are only good for 5 years so now have to revisit that cost again the Nutmeg Tank is all about fire flow requirements; with regards to the debt ratio. this process isn't about the setting of rates. this is the gathering of information to see what the rates should be to support our needs. Councilmember Nancy Johnson appreciates the information on water reclamation; we need to take a serious look at that as part of this proposal. 10 MINUTES - MORRO BAY CITY COUNCIL - OCTOBER 22. 2013 ® Councilmember Smukler stated we need to look at all of our costs. not hide any or single any out. He agrees ifs too earlv to know what those reclamation costs may be. He wants to make sure the community has the opportunity to hear more and know where these costs have come from and where they can go in the future. While it's uncomfortable to talk about raising rates, we have to; it's also important to set policy so this doesn't happen again. This has been punted long enough; we need to move forward so the public can make good decisions. Mayor Irons talked about having a revenue rate review program and look at what a policy would look like within this study. It sounds like water reclamation would be talked about when we had more information. Councilmember Christine Johnson thanked staff for all the historical information: it will be interesting as we move forward, to be able to refer residents back to the staff report. She is comfortable based on discussions tonight in moving forward with a rate study with the expectation that the first stop will be at PWAB to allow opportunities for the public to provide input. Councilmember Smukler stated that the scope for the RFP is important to make sure we get what we need. He likes the idea of stopping at PWAB with the scope of the RFP for their review before going out. Mr. Livick stated he could take the draft to PWAB but it would delay getting out the RFP. Or we could appoint a couple of PWAB members to serve in helping select a consultant as we did with the WRF. ® MOTION: Councilmember Smukler moved to authorize staff to issue an RFP for a rate study for water and sewer rates with additional background information including rate review policy and the expectation that a subcommittee from PWAB will be involved in the review of the scope and selection of consultant and that the study will include a review of costs and information regarding the entire water portfolio including reclamation costs. The motion was seconded by Councilmember Christine Johnson and carved 5-0. l_J C-2 REVIEW AND CONFIRM THE MASTER PLANNING PROCESS FOR THE NORTHERN WATERFRONT IMPROVEMENT PLAN; (RECREATION & PARKS) Recreation & Parks Director presented the staff report. The public comment period for Item C-2 was opened. Betty Winholtz is disappointed there was no information or visuals in the report to inform the public about what you are referring to with Alternative C. The idea that we would use all of the parking -in -lieu funds on one project when there are other needs within the park system isn't advisable. Personally for those that don't want to see this become an urban park as currently it is a natural area. Please give us more information and consider the fact it may not be the financial time to do this. MINUTES - MORRO BAY CITY COUNCIL — OCTOBER 22. 2013 ® Linda Donnelly asked if the project for the Fishermen's Family Sculpture alters that area. How much of that area would be built up or changed. Mr. Woods stated that the location is out at Goodbye Point. There is a lack of visuals as he wasn't trying to sell the project itself. just trying to move forward to master planning. Have had multiple concept and planning meetings over the years but didn't think it was relevant to this staff report. Councilmember Nancy Johnson is very much in favor of moving forward with this. She thinks we can always spend more money upgrading the parks that we have; we need to designate this money to move forward with this master plan. If we don't get a master plan and get community input we won't go any further with this. Councilmember Smukler stated he is looking around at our parks and see a lot of maintenance needs that we have to keep up with what is currently there. There are also lots of question marks at Coleman Park: ie: boat haul out; USCG, bike path/trail, etc. He feels like we are getting ahead of ourselves without having information on what the future holds there. He wondered how this money could be used elsewhere on needs that we know exist. Mr. Woods stated that the Fisherman's Family Sculpture can still be moved along. There are needs in our park system such as the continual development of the master plan at the Teen Center; restroom replacement, failing play structures; turf eliminations, parking lots that need ® serious work, etc. If we didn't use these funds in the Coleman/Target Rock Master Planning Process then they would look to other projects to enhance and improve the parklands. U Councilmember Smukler stated that looking at that list, there are great needs which doesn't diminish the need for a master plan but we can do that after, when we have more information. Councilmember Leage stated that we are missing a chance to develop this area which would be a great attraction for tourists. This is a project that we could use to leverage off to do the things we need to do in this town. Not doing this now is a big mistake: a lot of people have been talking about this. We need to develop the master plan now. Councilmember Christine Johnson thinks that -,ve could use a Parks Maintenance Plan. These funds enhance what you are already doing with your work program. A compromise would be that when the Fisherman's Family Sculpture was ready, then maybe we can revisit this then. Mayor Irons stated that in the summary of the report. Concept C was adopted by Council in 2008 so any master plan that we'd go forward with would be those shown in the outline. Based on that. he feels we can still maintain this concept and delay it until we find out what happens with the USCG project and/or other significant projects in the area. Councilmember Nancy Johnson said this has gone on too long. There will always be park projects and things needing to be replaced or improved. If this doesn't happen now. it never will. 12 MINUTES- MORRO BAY CITY COUNCIL - OCTOBER 22, 2013 ® Councilmember Smukler stated we are premature doing this right now because of all the — questions we have about the future there. We aren't risking moving forward with the Fishermen's Family Sculpture by not moving forward with this master plan. Councilmember Christine Johnson asked what would happen if we revisit this in 6 months; that would give the USCG time; see where the Fishermen's Family Sculpture is; and will have had the Recreation & Parks work plan which is due in January. Councilmember Nancy Johnson stated this is a separate item from the sculpture and the USCG. Councilmember Leage stated that with the uncertainties. maybe we should delay the bike path because how do we know it will fit in with the master plan. MOTION: Councilmember Smukler moved to direct Mr. Woods to work with the Recreation & Parks Commission and evaluate the work program and what could be accomplished with the existing funds in the parks fund and revisit the master plan at a later date as more information becomes available. The motion was seconded by Mayor Irons. Mayor Irons would like to see a date certain to come back with the master plan in the motion,- he leans towards 6 months. is already Nancv Johnson stated it doesn't matter to have a date certain, as you will have already spent the money so even if the master plan comes back, the money will be gone. E Councilmember Christine Johnson suggested 4 months for a revisit and asked if Recreation & Parks would be ready for that. Councilmember Nancv Johnson called the question. The motion was voted on and failed 1-4 with Mayor Irons and Councilmembers Christine Johnson. Nancv Johnson and Leage voting no. MOTION: Councilmember Smukler moved to direct Mr. Woods to return to the Recreation & Parks Commission with a request to review the work program along with the Master Coleman Northern Waterfront Improvement Plan and evaluate options to accomplish as much as possible with the existing parks fund and additional matching funds as available. The motion was seconded by Councilmember Christine Johnson and carried 3-2 with Councilmembers Nancv Johnson and Leaae voting no. D. NEW BUSINESS D-1 MULTI -HAZARD EMERGENCY RESPONSE PLAN AND EMERGENCY OPERATIONS CENTER REVIEW; (FIRE) 13 MINUTES - MORRO BAY CITY COUNCIL - OCTOBER 22, 2013 ® MOTION: Mayor Irons moved to continue this item to a date uncertain. The motion was seconded by Councilmember Leage and carried unanimously 5-0. D-2 AUTHORIZATION TO ENTER INTO RENEGOTIATION OF LEASE TERMS AND CONDITIONS FOR LEASE SITE 53-56/53W-56W LOCATED AT 501 EMBARCADERO (ESTERO LANDING INC., KEN SCOTT); (HARBOR) Harbor Director Eric Endersby presented the staff report. The public comment period for Item D-2 was opened: seeing none, the public comment period was closed. MOTION: Councilmember Smukler moved to approve Alternative A, authorizing staff to enter into renegotiations of certain lease terms and conditions for Lease Site 53- 56/53-56W with Ken Scott. The motion was seconded by Councilmember Leage and carried unanimously 5-0. D-3 REPORT ON RESULTS OF OBTAINING OUTSIDE INDEPENDENT LEGAL COUNSEL: (MAYOR) Mayor Irons presented the staff report. ® Mayor Irons opened up the public comment period for Item D-3. Hunter Kilpatrick is disturbed that this item is so late in the agenda. He would like to ask Mayor Irons why the RFP isn't on City letterhead and not dated. Also, why is the cap of $12,500 not listed. He asked who drew up the contract. He stated that the Mr. Simas may have a conflict of interest as he went to college with Mr. Irons' campaign manager. This firm is the most expensive firm and has no staff in San Luis Obispo. He feels the contract should have included a no travel clause. He feels it is transparent that you never intended to hire anyone else. He urges the Council not to approve this contract. Linda Donnelly stated that the contract has no end date and is for 12 months with an option to renew for an additional 12 months. The primary contact in the contract is Mayor Irons only. Nowhere in the contract is it stated "not to exceed S12.500.' She feels that if Simas and Associates did the work previously done by Mr. Schultz, based on the rates, it would cost between S350-450.000 for the year. Last night there was a 3.5 hour debate and the contract hadn't even been signed vet. Bettv Winholtz stated she needed clarification. She understood the contract approval had already been given and this item was a status report only. The public comment period for Item D-3 was closed. Mavor Irons stated that Mr. Simas and Mr. Heath do not know each other and there is no ® conflict. Mr. Simas is required to adhere to the S 12,500 limit. 14 b11NUTES - MORRO BAY CITY COUNCIL - OCTOBER 22, 2013 ® Councilmember Nancy Johnson objects to the fact that the copy she received wasn't signed. Per 3.08.170 of the Municipal Code, only the City Manager or their designee is authorized to award contracts. She went through City contracts and there were only 2 contracts signed by Mayors and both of those also included the signature of the City Manager or City Clerk. Per the GAO standards they have a page called "examples of abuse" and one of these is making procurement or vendor selections contrary to existing policies or are unnecessarily expensive. This is expensive. Looking back at the motion, it doesn't mirror the contract in any way; and the not to exceed S12.500 is not there. Also not found in the contract — the contract commences on October Ph. 2013 and terminates Oct 6 h. 2014 unless renewed by the Citv Council. She asked what counsel was doing from October 7`1i to yesterday when they were allowed to meet with Mr. Simas and how much did that cost. She reiterated that the Mayor is only 1 of 5 votes whose only special authority is to set the agenda. She doesn't feel this is a legal contract. She said that to date. TvIr. Simas hasn't chosen to speak to any of us. MOTION: Mavor Irons moved to continue the meeting past I I:00pm. The motion was seconded by Councilmember Christine Johnson and carried unanimously. 5-0. Mayor Irons stated that as far as he knew. Mr. Simas has made contact with each Councihnember via email and has said he is reachable by telephone. Insurance has been submitted to Risk Management. He was assured that he was in compliance with the GOA and municipal code. He stated that the Council will review the status of his bill and at the $12,500 rate_. wewill be able to authorize more if need be. He asked for and was granted authorization by ® the Council to pursue the attorney. He pulled the contract off of the County website from a Supervisors meeting. Councilmember Smukler stated that the cap is in place as Council authorized it thru a motion; it and anything beyond that would have to come back to Council for discussion and action. Councilmember Nancy Johnson accepts no responsibility for this contract or any of its parts. Councilmember Leage doesn't accept the contract either. Councilmember Christine Johnson asked if there was any interest in adding an addendum to the contract to add the cap language as well as to adjust the date for a period of time less than a year. Mayor Irons stated that we can terminate the contract at any time. Councilmember Smukler stated that an addendum regarding the $12,500 sounded like a good idea. Councilmember Nancv Johnson said that the contract commences on October 7 h and we didn't meet until October 0. Have you been talking to Mr. Simas and if so, how much has it cost so far? Mavor Irons stated that when we get the monthly itemized report, everybody will know. 15 MINUTES - MORRO BAY CITY COUNCIL - OCTOBER 22. 2013 This item was received and filed. D-4 DISCUSSION REGARDING PARKING EN -LIEU FEES IN THE DOWNTOWN AREA; (CITY ATTORNEY) Mayor Irons recused himself as his property lies within 500 feet of the downtown area. Citv Attorney Rob Schultz presented the staff report. Councilmember Leage opened the public comment period for Item D-4. Bettv Winholtz stated that she was on the Council at the time that fees were raised, we were in trouble and at the time in comparison to others in the County, way low. Ours weren't realistic to keep at $4,000. $15,000 seemed reasonable at that time and she encourages Council to maintain it for equity so all are charged the same amount in the City. The public comment period for this item was closed. Councilmember Nancy Johnson stated that as a compromise. she would recommend going to back to the S4.000 as we have already taken away some of the business incentives for downtown. Councilmember Smukler feels like this is arbitrary. It would be interesting to hear more context ® about what the Parking Management Plan has to say about this and what projects may be coming forward that this affects. He feels we need to take more time. wants to hear from more businesses/property owners. Councilmember Christine Johnson said this is her first time going through a parking in lieu discussion. She wondered what the neighboring cities charged for their in lieu fees. Before deciding. she would like to see a survey done. She also wants direct feedback from the business community. She also wants to know what the impact of raising or lowering the fees is — what is the plan? She would want to stay with the S15.000 for now, until these discussions can take place. Councilmember Leage stated that studying other cities really doesn't work. All cities have their own unique problems with parking. He doesn't even think if we didn't charge anything; we still wouldn't get any more development down there. We have put out incentives but nothing seems to work. Councilmember Christine Johnson stated that the Economic Development Committee has been talking about possibly comparing Old Town Arroyo Grande with our Old Town area. Councilmember Nancy Johnson said we have tried a couple of times to get property to build a parking lot in downtown and haven't been successful. There was no motion or action necessary_ as it was Council's consensus to leave the in -lieu fee ® where it is. at S 15.000. 16 MINUTES - MORRO BAY CITY COUNCIL - OCTOBER 22. 2013 D-5 DISCUSSION OF ITEMS TO PLACE ON THE JOINT CITY COUNCIL/PLANNING 0 COMMISSION MEETING; (PUBLIC SERVICES) Rob Livick presented the staff report. The public comment period for Item D-5 was opened: seeing none, the public comment period was closed. There was discussion about items to place on the agenda. The consensus was to agendize the following: City Specific and Master Plans to include Beach Street Specific Plan, North Main Street Specific Plan and the Waterfront Master Plan: an update on the GP/LCP status to include status on grant applications: and; and update on the West Atascadero Road rezone. The meeting is to start at 6:00pm and go for no more than 90 minutes. E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS Councilmember Nancy Johnson requested a report of the $3500 spent by this Council in April 2013 to include what it was spent on and the reasons for it as well as a discussion and report regarding the expenditures and use of current outside counsel in an open session public hearing format: Councilmembers Leage. Smolder and Christine Johnson concurred. ® ADJOURNMENT The meeting adjourned at 11:49pm. Recorded bv: 1tv Boucher City Clerk E 17 MINUTES - MORRO BAY CITY COUNCIL -OCTOBER 22. 2013 'J !1 ty of Morro ala li ch 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 he committed to this pugose and will provide a level of municipal service and safety consistent ivith and responsive to the needs of the public. SPECIAL CLOSED SESSION MEETING MONDAY, OCTOBER 21, 2013 MORRO BAY VETERAN'S HALL - 3:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER SUMMARY OF CLOSED SESSION ITEMS — The Mayor will read a sununary of Closed Session item. CLOSED SESSION PUBLIC COMMENTS — Members of the public may address the City Council on any matter that is listed on this Closed Session agenda. Unless additional time is authorized by the City Council, remarks shall be limited to three minutes. ® THE CITY COUNCIL WILL MOVE TO CLOSED SESSION CS-1 GOVERNMENT CODE SECTION 54956.9(b) -CONFERENCE WITH LEGAL COUNSEL -ANTICIPATED LITIGATION - Exposure to litigation exists based upon existing facts and the advice of legal counsel as to one matter. Under Government Code Section 54956.9(c), the name of the possible litigation is withheld as disclosure of it would jeopardize the City's ability to conclude existing settlement negotiations to its advantage. CS-2 Review of contract of City Attorney. CONVENE TO OPEN SESSION — Announcement of reportable action from closed session, if any. DATED: October 17, 2013 I J lie Boucher, City Clerk IN COMPLIANCE WITH THE AMERICANS WITH DISABILITY ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS ® CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. MINUTES — MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING — ® OCTOBER 21, 2013 CITY HALL CONFERENCE ROOM — 5:00Pivi PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Leage Noah Smukler STAFF: Andrea Luekei Robert Schultz Jamie Boucher ESTABLISH QUORUM AND CALL TO ORDER AGENDA NO: A-1 MEETING DATE: 11/12/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager Citv Attomev Citv Clerk SUMMARY OF CLOSED SESSION ITEMS - The Nlavor read a summary of the Closed Session items. Councilmember Nancy Johnson questioned whether we can legally proceed with holding this meeting and requested the abilitv to ask a question of Contract Attorney, Mr. Simas. She asked ViS. Simas if he obtained a City of Morro Bav business license as Municipal Code Section 5.04.050 requires he have one — any contractor doing business in the City of Morro Bay is required ® to obtain a business license before doing business in the City of Morro Bay. Mr. Simas respectfully disagreed with Councilmember Nancy Johnson's interpretation of the code stating that he did have a business license in both San Luis Obispo and Sacramento which is where he has his physical offices. He appears in courts and administrative hearings throughout the State of California and there aren't business license requirements where you aren't domiciled or have a place of business and he has no place of business in the City of Morro Bay. Prior to the opening of Public Comments. Vlav_ or Irons read the rules for decorum for public comment. CLOSED SESSION PUBLIC COMMENTS - Mayor Irons opened' the meeting for Public Comment. Keith Taylor questioned the purpose for terminating the City Attorney: is it to eliminate good advice and throw caution to the wind? Dorothy Cutter stated there are a lot of angry people here who don't understand what is really happening. She supports the Mayor and hopes that everybody can be cordial. Lynda Merrill supports the Mayor and Council in whatever decision they make. She thanked all of Council. ® Jeff Jones urged Council to use great caution. He has personally worked with both the City Attomev and Citv Manager. The City Attomev has worked tirelesslv on the Citv's behalf. The cost of these actions could reach S500,000 which is money spent needlessly: He stated that the Council are part time advisors to the City and are here for only a short time, these are the professionals that serve the City. The majority of the votes on Council are the votes that set policy and both the Citv Manager and Citv Attorney follow that majority. Before taking action. think of ® the end result. Bridgen Kessling stated this is her third time speaking and is not going to ask again for your reconsideration as she feels like she's just talking to a wall. She is very disappointed She took the opportunity to thank Rob Schultz for all of his hard work and for what he has done for the City and wishes him well in his future endeavors. Tim Crowley stated that for the first time in his memory, the majority of the City Council reflects his point of view; he supports the actions being taken regarding the discipline, dismissal. release or termination of the City Attorney's contract. He doesn't support the misguided attempt to recall the Mavor. He honestly thought that would have ended after the Tribune reported the Brown Act violation that occurred back in November. Dan Costley stated that based on his past experiences. it is evident that Council has a different definition of the concept of transparency then he does. He asked Council to be more tolerant, more compassionate, and ultimately more responsible in your actions. John Barta stated that good leadership would approach a change in the City Attorney position with a plan before. not after. action is taken. You first need to define the role of the City Attomev: the role of the Citv Attorney needs to be an expert in the following issues: harbor district. California Coastal Commission. Federal Boating and Waterways; Army Corp of Engineers: Federal Fish and Wildlife: State Fish and Game; ground water rights; desalination plant: State Water Board: State ® Energy Commission: ocean water intake and outfall issues: State Tidelands Trust: lease management: code enforcement. State Parks. US Coast Guard: personnel, and litigation as well as a deep knowledge of the municipal code. They would need to be available when needed, ie: an office in city hall and they need to be affordable. He feels that Rob Schultz is the only person in the State of California that can do this. Dede Alexander stated that granted. California is an at -will state. And you have stated that neither Rob Schultz nor Andrea Lueker have committed anv wrong doings. Since neither has been placed on administrative leave, we can only assume they haven't been accused of any maleficence. Can you enlighten us on vour zeal in terminating them? Dan Glessman stated that on September 12. 2011. in the public comment period prior to closed session. the City Attorney exercised his right to request disclosure of the cause that would justify that action. No cause was given but it was stated there were reasons: if you care about uniting this City. these reasons need to be explained to the public; "we are waiting". Janice Peters stated that fir. Simas doesn't have a contract with the City of Morro Bay as it won't be approved until tomorrow night. She stated that the motion for the contract was for one not to exceed S12.500 and the submitted contract doesn't mention that at all. The contract is for 1 year and was retroactive back to October Vh. she wondered if he had been giving advice since then. She also stated that there were onlv 2 signatures on the contract. Mr. Simas's and the iviayors, there was no signature provided for the City Clerk or City Manager. She questioned previous comments made about how the protest happened after the closed session was announced in 24 ® 2 MINUTES - MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING - OCTOBER 21. 2013 hours being an organized protest. She stated that this has been the most spontaneous coming together of citizens that she has seen in 22 years. She ended by telling Mr. Schultz that she is very ® proud to have worked with him. John Gajdos stated that people have said that Mayor Irons was elected by an overwhelming majority of the voters. He refuted that by saving that 5 1.9% of the voters who voted. voted for the Nlavor which is still less than a third of registered voters. He questioned why this meeting was called at a time that most public can't make it. Homer Alexander stated that to the best of his knowledge, no single member of any City Council in the town's history has ever independently requested proposals from contractors and then without consultation with the City's professional staff, or City Council, selected one of those contractors to provide tax paver services. He wondered if the Mayor was planning on being the sole decision maker for other actions in the future. Karen Croley understands that Council isn't at liberty to be transparent and doesn't understand why that argument keeps coming up. Under confidentiality laws. Council is unable to say what is going on and she respects that and trusts you. What's going on in this town is based on the result of the unknown, and people respond to the unknown in 2 ways, either they trust or they fear and she sees a lot of fear going on. Marilyn Glessman stated that the last time a senior executive was fired in Morro Bay: it took 1 hour and the time before that. less than a 1 day. It has taken 41 days since the !✓favor walked into Mr. Schultz's office and announced you wanted to fire him and the City Manager. She has never ® heard of any manager at any level taking 41 days to terminate an employee. She wondered if you got bad advice or were you just unprepared. Bob Keller stated that our Council is very transparent. He supports the Mayor and the Council to do what is in the best interest of the City. Sometimes tough decisions have to be made. This is not an issue of personalities. He urged Council do to their fiduciary duties with due diligence and not act with emotion. John Weiss stated that he is sad because our community is divided. And he is sad because serious consideration to terminating 2 fine employees is being considered and he would ask you not to take that action. He asked you to support the City Attorney and the City Manager as they are the best we have ever had. Barbara Doerr is very unhappy to be here again today. She declared she voted for Mayor Irons and Councilmembers Christine Johnson and Smukler. She has full confidence that they are doing things professionally, legally and to the best of their ability to do it. She thanked them for serving and she knows you care about the community. She reiterated that this is not a personality contest. Gam Johnson stated that even though the municipal code allows it, you must be confident that the contract you signed with Mr. Simas won't be considered void or illegal. He went onto say that he has sent multiple letters to the editor at The Tribune and they have been rejected each time and is concerned about the paper's slant. There is a difference between corporate America and how the government runs. MINUTES - MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING - OCTOBER 21, 2013 Jim Haves asked Council if they were planning to replace the City Attorney with another in-house attorney or use outside counsel to work on the City's day to day legal actions. ® Dick Cleeves asked that if you terminate Mr. Schultz today_ , who will handle Citv_ 's duties of Risk Management and Code Enforcement? Joan Solu questioned the Council as to what is the reason for termination; where is the transparency; explain what your vision and ideas for the future of the City of Morro Bay and what vision you have that requires such an extreme action — how does that action meet the guidelines for openness and transparency. She ended by saying this is very concerning and a lack of factual answers are very disruptive and destructive to our small community. Bill Weatherford supports the whole board stating that they are responsible for the City that he loves so much. He feels fortunate that as a community we are able to get together and talk to the Council. He feels the Mayor should be applauded for taking the heat for this situation because what you are doing is euaranteeing the legal process. David Burton said it would be great and evervbodv would love to know why you are doing this but understands that information is confidential. He trusts that the Council will make the right decision and understands that a lot of the information will not and cannot come out. Phil Kispersky questioned the previous speaker saving that there was a lot of contention with the previous board. He has always considered the current Council to be open and honest people until this point in time. He is surprised that Councilmembers Smukler and Christine Johnson are ® supporting this kind of action so blindly without some kind of reasoning. He is looking for an open and honest reason as to why. He questions the reason for wasting all of this money and wondered where the money was going to come from. since it's the taxpayers. he feels he has the right to ask whv. Rick Grantham was cold and had to put his jacket on today; then stated that that must pale in comparison to the ice that must lie in anybody's heart that wants to get rid of anybody like this. He told Mr. Schultz that he is a wonderful person and is very against what is going on here. This is ruining people's lives for no good reason. Jeannie Fry proposed an alternative idea. Instead of spending money on recalls or investigations for cause. why not use these funds to let the voters of Morro Bav vote on the issue of keeping or firing these employees. Harry Franklin stated that he has never seen Morro Bay be so divided with what's going on in the Citv. He feels that Council has brought this about themselves as thev haven't given reasons for the action and since it has drug out for so long. This falls on your shoulders and as a citizen_. is asking the Mayor to resign your position. Brahm Phillips Webb stated that the Citv Manager has worked for the City for over 20 vears. He said that she supported him in returning to school and getting his degree. He can't understand that for all the things she has done for the City over time that you would ever think of getting rid of her. ® 4 MINUTES - MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING - OCTOBER 21, 2013 The public comment period was closed. ® Mavor Irons answered some of the questions posed in public comment stating that this is a confidential matter and there are questions and answers that won't be discussed. if and when there is information that can be discussed/disclosed, they will: he has viewed other City contracts and notes that several only have 2 signatures; at the September 12t' meeting, the premise of "no cause and no claims", was a statement made for that meeting and at that time: until we set thru this closed session; then we will be able to discuss what legally we can about claims and charges. Councilmember Nancy Johnson stated that not only do we have an illegal contract: she has also been completely through the City records and the municipal code and the only reference to the award of contracts she was able to find stated that the City Manager or designee is authorized to award contracts. She questioned how we can be consulting. with Mr. Simas without a valid contract. She also has asked repeatedly to speak to the S3500 spent on legal counsel back in April which wasn't reviewed in open session. As a member of this board. she wants to know what the facts are and even she doesn't: we are all supposed to serve with the same powers up here. The City Council moved to Closed Session and heard the following items: CS-1 GOVERNMENT CODE SECTION 54956.9(b) —CONFERENCE WITH LEGAL COUNSEL —ANTICIPATED LITIGATION - Exposure to litigation exists based upon existing facts and the advice of legal counsel as to one matter. Under Government Code Section 54956.9(c), the name of the possible litigation is withheld as disclosure of it would jeopardize the City's ability to conclude existing settlement negotiations to its advantage. ® CS-2 GOVERNMENT CODE SECTION 54957(b) -- PUBLIC EMPLOYEE DISCIPLINE/DISMISSALIRELEASE/FERvIINATION OF CONTRACT Review of contract of City Attorney. CITY COUNCIL CONVENED TO OPEN SESSION — The City Council convened to open session: Mavor Irons reported that Council made recommendations to our outside legal counsel to negotiate a separation agreement with our current Citv Attorney; we will proceed for a Special Open Session City Council Meeting for October 25. 2013 at 9am to discuss an RFP for an interim outside contract City Attomev. ADJOURNMENT The meeting adjourned at 7:39pm. Recorded by: Jamie Boucher City Clerk E MINUTES - MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING - OCTOBER 21. 2013 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 willprovide a level of municipal service and safety consistent with and responsive to the needs of the public. SPECIAL CLOSED SESSION MEETING TUESDAY, OCTOBER 8, 2013 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER SUNLMARY OF CLOSED SESSION ITEMS — The Mayor will read a summary of Closed Session items. CLOSED SESSION PUBLIC COMMENTS — Members of the public may address the City Council on any matter that is listed on this Closed Session agenda. Unless additional time is authorized by the City Council, remarks shall be limited to three minutes. THE CITY COUNCIL WILL MOVE TO CLOSED SESSION ® CS-1 GOVERNriN4ENT CODE SECTION 54956.8: 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 parcels. • Properly: Lease Site 30W-33W; Bay Front Marina, Water Lease Adjacent to 201 Main Street Negotiating Parties: Coakley and City of Morro Bay Negotiations: Lease Terms and Conditions • Property: 307 Morro Bay Blvd. Negotiating Parties: Ford-Durrer. dba Grandma's Frozen Yogurt & Waffle Shop and City of Morro Bay Negotiations: Lease Terms and Conditions CONVENE TO OPEN SESSION — Announcement of reportable action from closed session, if any. DATED: ctober 4. 2013 atis�-- ana Swanson. Deputy City Clerk IN COMPLIANCE WITH THE AMERICANS WITH DISABILITY ACT. IF YOU NEED SPECIAL ® ASSISTANCE TO PARTICIPATE IN A CITY MEETING. PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. MINUTES — MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING — ® OCTOBER 8. 2013 CITY HALL CONFERENCE ROOM — 5:00PM PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Lease Noah Smukler STAFF: Andrea Lueker Robert Schultz Eric Endersbv ESTABLISH QUORUM AND CALL TO ORDER AGENDA NO: A-1 MEETING DATE: 10/22/2013 Mayor Councilmember Councilmember Councilmember Councilmember Citv Manager Citv Attornev Harbor Director SUMMARY OF CLOSED SESSION ITEMS - The Mayor read a summary of Closed Session items. CLOSED SESSION PUBLIC COMMENTS - Mayor Irons opened the meeting for Public Comment ® Jav and Mereline Coakley, spoke stating that they have been negotiating back and forth with Harbor Director Eric Endersbv. They realize that 30 years is not in concrete and if they can get 15 years; they could accept that. If only 15 vears though. they don't want to be held responsible for putting in a sprinkler system as they don't feel that would be fair. To date they have spent over S120,000 in improvements. Sandy Bean stated that the Marina has been on the market and she has potential buyers. They want to keep the Marina the way it is but also want to beautify it somewhat. The buyers are hesitant to step into a water lease that may jeopardize their private property. It is also very difficult to set a loan on any property with this kind of situation. The buyers want to mitigate the way the City wants to. The Public Comment period was closed. The Citv Council moved to Closed Session and heard the followins items: CS-1 GOVERNMENT CODE SECTION 54956.8: 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 parcels. • Property: Lease Site 30W-33W; Bay Front Marina, Water Lease Adjacent to 201 Main Street ® Negotiating Parties: Coakley and City of Morro Bay Negotiations: Lease Terms and Conditions t • Property: 307 Morro Bay Blvd. ® Negotiating Parties: Ford-Dtirrer, dba Grandma's Frozen Yogurt & Waffle Shop and City of Morro Bay Negotiations: Lease Terms and Conditions L� El CITY COUNCIL CONVENED TO OPEN SESSION — The City Council convened to open session: City Attorney, Rob Schultz reported that no reportable action under the Brown Act was taken. ADJOUPUNMENT The meeting adjourned at 5:50pm. Recorded by: 2 ie Boucher City Clerk MINUTES - MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING - SEPT. 10, 2013 ® 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 TUESDAY, OCTOBER 8, 2013 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURE ST., MORRO BAY, CA ESTABLISH QUORUM .AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE CLOSED SESSION REPORT MAYOR & COUNCILMEMBERS' REPORTS. ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS - None ® PUBLIC COMMENT - Members of the audience wishing to address the Council on Citv business matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda. but unable to stay for the item, may also address the Council 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 AGENDA ® Unless an item is pulled for separate action by the City Council. the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION MEETNG HELD ON SEPTEMBER 12. 2013: (ADMINISTRATIONS RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF THE CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION CITY COUNCIL MEETING HELD ON SEPTEMBER 24. 2013: (ADMINISTRATION) RECOiNINIENDATION: Approve as submitted. A-3 APPROVAL OF CITY COUNCIL MINUTES FOR THE REGULAR CITY COUNCIL MEETING HELD ON SEPTEMBER 24. 201 3: (.ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-4 PROCLA:VLATION DECLARING OCTOBER 6-12, 2013 AS FIRE PREVENTION WEEK: (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-5 PROCLAMATION DECLARING OCTOBER 20-26, AS FREEDOM FROM WORKPLACE BULLIES WEEK; (.ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-6 REVIEW AND APPROVE THE PUBLIC ART PROPOSAL FOR A MARBLE SCULPTURE TO BE LOCATED N FRONT OF THE NIORRO BAY SENIOR CENTER; (RECREATION & PARKS) RECOMMENDATION: Review and approve the proposal from Ann Marie Schneztler by artist Crissa Hewitt in memos, of Nicole Poucel which includes the design and installation of a marble sculpture at the Morro Bay Senior Center; located at 1001 Kennedy Way; Staff recommends Alternative 1. A-7 AUTHORIZATION TO FILE NOTICE OF COMPLETION PROJECT NO. MB-2010- PD1: WIRELESS COMMUNICATIONS UPGRADES: (PUBLIC SERVICES) RECOMMENDATION: File the Notice of Completion for Wireless Communications Upgrades. ® A-8 CONSIDERATION OF AMENDMENT OF SECTION 2.2 OF THE CITY COUNCIL POLICIES AND PROCEDURES REGARDING MEMBERS RECEIVING UNEXPENDED MONTHLY DOLLARS FROM THE COST OF THEIR MEDICAL PLANS: (ADMINISTRATION) RECONI]NIENDATION: Return to the City Council with a Resolution amending the ® City _ Council Policies and Procedures, Section 2.2, striking the language that currently allows Council members from receiving any unexpended monthly dollars from the cost of their medical plan. A-9 APPROVAL OF RESOLUTION 49-13 FOR LEASE AGREEMENT FOR LEASE SITE 82-85/82W-85W; 725 EMBARCADERO (ROSE'S LANDING. REDICAN); (HARBOR) RECONLINTENDATION: Approve Resolution No. 49-13 approving a new Lease Agreement for Lease Site 82-85/82W-85W, located at 725 Embarcadero, with 725 Embarcadero LLC, owned by Doug Redican. B. PUBLIC HEARNGS B-1 APPEAL OF THE PLANNING COMMISSION DENIAL OF CPO-246 FOR THE DEMOLITION AND RECONSTRUCTION OF A SINGLE FAMILY RESIDENCE. (360 CERRITO PLACE. N. TURNER, APPELLANT/APPLICANT); (PUBLIC SERVICES) RECONLMENDATION: Notice the project for a full De Novo Public hearing at the Planning Commission level allowing for a full review of the current project as submitted and direct the applicant to pay 5138 for the required noticing. B-2 APPEAL OF ADMINISTRATIVE DECISION REGARDING STAFF AUTHORIZATION OF A FENCE ON CITY OWNED PROPERTY ADJACENT TO CHORRO CREEK ROAD N THE UNINCORPORATED AREA OF SAN LUIS OBISPO COUNTY (JOSEPH GOODWN APPELLANT; MIKE AND CARRIE BURTON. PERMITEES); (PUBLIC SERVICES) RECOINIMENDATION: Uphold staff decision to allow the access onto City real property for the installation of a fence. B-3 ZONING TEXT AMENDMENT A00-015 DRAFT SIGN ORDNANCE (MUNICIPAL CODE SECTION 17.68); (PUBLIC SERVICES) RECOMMENDATION: Open the public hearing and receive testimony and direct staff to prepare an environmental document based on the draft Sign Ordinance as forwarded by the Planning Commission on September 4, 2013 and return with the environmental document and the draft Sign Ordinance for the first reading on December 10, 2013. C. UNFNISHED BUSINESS C-1 STATUS REPORT OF A MAJOR MAINTENANCE & REPAIR PLAN (MMRP) FOR ® THE EXISTING WASTEWATER TREATMENT PLAN: (PUBLIC SERVICES) REC0NL-IENDATI0N: Receive and file this report. 3 C-2 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS AND DISCUSSION: (ADMINISTRATION) ® RECOMMENDATION: Discuss in open session, the progress to date on the Water Reclamation Facility (WRF) and provide direction to staff as necessary. D. NEW BUSINESS D-I CONSIDERATION AND DIRECTION REGARDING THE EXPANSION OF THE UNITED STATES COAST GUARD (USCG) FACILITIES N MORRO BAY, - (ADMINISTRATION) RECOMMENDATION: Review the attached documentation and provide direction regarding the USCG request to enter into a long term lease agreement with the City of Morro Bay for expansion of USCG facilities in Morro Bay. D-2 APPROVAL OF CONSENT OF LANDOWNER AGREEMENT FOR LEASE SITE 86/86W AT 801 EMBARCADERO (EMBARCADERO GRILL. CALDWELL) TO FILE AN APPLICATION FOR LEASE SITE IMPROVEMENTS AND ALLOW STAFF TO ENTER INTO LEASE NEGOTIATIONS: (HARBOR) RECOMMENDATION: Consider the three alternatives and provide direction; staff is recommending either Alternative A or Alternative B. ® D-3 APPROVAL OF RESOLUTION 48-13 DESIGNATING S399.000 N PARKING N- LIEU FUNDS FOR REVISIONS TO THE PARKING N-LIEU MAP AND IMPROVEMENTS TO THE CITY -OWNED FRONT STREET AND TRIANGLE PARKING LOT ADJACENT TO THE DYNEGY POWER PLANT. AND REVIEW AND DISCUSSION REGARDING THE CITY PARKING MANAGEMENT PLAN_: (CITY ATTORNEY/PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 48-13. E. COUNCIL 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 772-6205 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 REGULAR MEETING — OCTOBER 8, 20 L3 VETERAN'S MEMORIAL HALL — 6:00P.M. PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Lease Noah Smukler STAFF: Andrea Lueker Robert Schultz Jamie Boucher Amy Christey Steve Knuckles Susan Slayton Joe Woods Eric Endersby Rob Livick Kathleen Wold Erik Berg -Johansen ® Mayor Irons called the meeting to order at 6:00 p.m. ESTABLISH QUORUM AND CALL TO ORDER IVIOMENT OF SILENCE PLEDGE OF ALLEGIANCE AGENDA NO: A-2 MEETING DATE: 10/22/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager City Attorney City Clerk Police Chief Fire Chief Administrative Services Director Recreation & Parks Director Harbor Director Public Services Director Planning Manager Planning Intern CLOSED SESSION REPORT — City Attorney Robert Schultz reported that City Council met in a Special Closed Session on October 8, 2013 on the folImying item: Government Code Section 54956.8: 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 parcels: Lease Site 30W-33W, Bay Front Marina (Water Lease adjacent to 201 Main Street); and. 307 Morro Bay Blvd.; no reportable action under the Brown Act was taken. MAYOR AND COUNCILMEMBERS' REPORTS. ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS -None PUBLIC COMMENT John Elliott, the new owner of Mikes Barbershop, announced his Grand Opening on Friday. October 11t' featuring food and entertainment. Opened originally on December 6. 1941, it was ® sold to Mike Dominguez in 1960 who owned it until recently when John purchased it. John's ® goal is to make the barbershop a green barbershop. The shop is open Monday thru Saturday from 9am-5pin. John is also heavily invested in the community already sponsoring local youth sports teams and donating to many worthy causes. He hopes people will stop by this Friday. Steve Ekis sits on the Board of Directors of the Morro Bay Pups. He invited the public to the Pups in the Park 20L3 event being held this Saturday, October 12ih from IIam-Ipm. The purpose of the event is to celebrate the tremendous success of the Jodv Giannini Dog Park._ He also applauded the Recreation & Parks staff who have been extraordinary to work with. Rick Grantham thanked Council for their support of the upcoming Veteran's Event. He also announced the Thanksgiving Day Dinner being held at the Communitv Center on Thanksgiving Day, serving from 1-3pm. He thanked the many_ sponsors. The event will feature a full dinner with live entertainment. He also spoke on Item B-3. Draft Sign Ordinance, wanting to publicly thank his fellow Planning Commissioners for their hard work on this project. Liz Bednorz, owner of Beach House Bistro spoke on Item B-3, Draft Sign Ordinance hoping that neon signs advertising their business will be allowed to be on while they are open during the day. She read the document and sees a lot of confusion and little nit-picking throughout. She also feels that feather flags and/or A -framed signs are a necessity to the success of her business as they are in a place with little foot traffic and hoped that Council and staff would address this. Tim Crowlev stated that he is very angry, as he can't believe that a recall is being brought ® forward. He feels there is no cause for this to happen and is totally against it. He feels the Mayor has done nothing wrong and that those in favor of it should just wait until the June election. Janice Peters served on the Council for a total of 14 years and never in that time has she seen a Mayor granted complete autonomy to search, interview and enter into a contract without any oversight or review by other Councilmembers or City staff. She questioned its legality as well as definitely feels it is unethical and lacks transparency. She spoke specifically to Councilmembers Christine Johnson and Smukler, as the two councilmembers who voted in favor of this item. that they have the right to request a reconsideration of that motion at this meeting and hopes that they do. She stressed that the Mavor sets the agenda and runs the meeting but each Councilmember has equal voting power. Kathy Welles stated that she watched Andrea Lueker receive an award for being the great City Manager she has been. She stated that this seems like a circus. Both Andrea and Rob Schultz have been wonderful employees of the City. Lynda Merrill read a letter written by her husband. The letter stated that the motives of those calling for the recall seem highly suspect because their stated grounds don't seem truthful and that the whole exercise seems like unruly politics. This is another of the expensive divisions that we in Morro Bav are tired of. He urged people not to sign the recall. Julie Loving spoke on Item B-2, regarding the Appeal of Staffs Authorization of a Fence on ® City Owned Property, stating that good fences make good neighbors. The Burtons were allowed MIS\'UTES - MORRO BAY CITY COUNCIL - OCTOBER S. 2013 ® to put the fence up. She stated that in that area. dogs run around freely and there are people in and out of the Roandoak facility all the time; it's a (good thins to keep the Burtons separate from all of that as they have 2 young boys. This process was done legally and she doesn't understand why there's a problem with it: Walter Heath has confidence in the Mayor and of the intelligence of the Morro Bay voters. He urged the Morro Bay voters not to sign the recall petition. He went on to read the rules of public comment which states that all remarks should be addressed to council as a whole and not to any individual member thereof and asked anybody speaking to adhere to that. He was deeply offended by the September 12, 20L3 meeting. Susan Stewart announced that Botso Korisheli was featured on the front page of the SLO Life Magazine. She stated that Morro Bay. as a City, supported the development of this movie. It is now playing at the Palm before moving up to the Carmel Film Festival. This puts Morro Bay on the map in a good way. Garry Johnson spent the weekend at the Harbor Festival as a photographer. It was a wonderful event. He questioned whether or not City Attorney Rob Schultz had been offered a job in another City which he didn't take as his evaluation with Morro Bay had been positive. He wondered whether Mr. Schultz would have taken it had he known that this possible termination proceeding would have happened. He also spoke about the recall stating that we have 2 wonderful employees; he wishes the recall didn't have to happen and hopes that Council ® reconsiders their thoughts of termination. Bill Peirce took offense to a previous speaker's use of the phrase "carefully orchestrated". He stated that on September 12a', there Has no organized group of people: they were there because they were mad and they were concerned. He also stated that miraculously flyers have cropped up, talking about the cost of the recall which he deems. carefully orchestrated. Amy Perry spoke in support of the Mavor. She is outraged by the recall. She strongly urges the public not to sign the recall petition but instead let your voice be heard at the June election.- Carla Wixom stated that at the last Citv Council meeting. you violated your own Resolution. which states that you will do RFP's when seeking to hire contractors which a law firm is a contractor. She also feels that the Council's Policies and Procedures were also violated. She said that the fiver that has been handed out stated that it could cost the City over S50.000 for the recall: she wanted to say that it could also cost as little as S1.000 for a recall election because it would be lined up with the primary. Joan Solu spoke representing the Morro Bay Community Foundation. The iV1BCF works on behalf of the Recreation & Parks Department's Youth Services and Sports programs offering monetary scholarships for youth who qualify under the reduced or free meal program through the San Luis Coastal unified School District. They are holding their major fundraiser on Saturday, November 9h at the Community Center — Morro Bay Sings Elvis. She especially thanked the ® Galley who is providing the dinner. Every child deserves the opportunity to play. 3 MINUTES - MORRO BAY CITY COUNCIL - OCTOBER 8. 2013 Jane Heath heard somebodv say that the recall petition will go on the June ballot. She clarified that Morro Bay doesn't have a primary in Morro Bay; they have a general election in June with the possibility of a run-off in November. She questioned the wisdom of a recall that might be on the same ballot that the Mayor will run for election. The $54,000 cost. if the recall occurs in a special election, comes out to S8/voter. If the recall occurs in June, then she is confused, why would you go to all that trouble when the Mayor is running for election at that time? John Diodati stated that it could cost S54.000 for a recall election: June is when we have our normal election so why have a recall election and have our normal election at the same time. He stated that this is about divisive politics which is all the recall proponents care about. There is zero tolerance for this type of politics in Morro Bay. The recall petition states that the Mayor has allegedly proof read and edited staff reports; that is not a recallable offence. It was reported that the outgoing Citv Council allegedly increased compensation without notice in a closed session which is a recallable offence. He wondered what the real agenda of the recall proponents is. Bob Keller supports the Mayor and Council and is against the recall. He asks his fellow Vlorro Bay residents to not sign the recall. It will be costly, time consuming and wasteful. Also, it will only divide the Citv. We can vote in June and let the majority rule. He also wants to encourage the City to be more bike friendly, we need more bike racks. The Public Comment period was closed. A. CONSENT AGENDA Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MNUTES FOR THE SPECIAL CLOSED SESSION MEETING HELD ON SEPTEMBER 12. 2013: (ADMINISTRATION) RECONLIIENDATION: Approve as submitted. A-2 APPROVAL OF THE CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION CITY COUNCIL MEETING HELD ON SEPTEMBER 24. 2013: (ADMINISTRATION) RECOMMENDATION: .Approve as submitted. A-3 APPROVAL OF CITY COUNCIL MINUTES FOR THE REGULAR CITY COUNCIL MEETING HELD ON SEPTEMBER 24, 201 3; (ADMINISTRATION) RECONLMENDATION: Approve as submitted. A-4 PROCLAMATION DECLARING OCTOBER 6-12, 201.3 AS FIRE PREVENTION ® WEEK; (ADMINISTRATION) 9 MINUTES - MORRO BAY CITY COUNCIL-OCTOBER S. 2013 ® RECOMMENDATION: Approve as submitted. A-5 PROCLAMATION DECLARING OCTOBER 20-26. AS FREEDOM FROM WORKPLACE BULLIES WEEK: (ADMINISTRATION) RECOMAIENMATION: Approve as submitted. A-6 REVIEW AND APPROVE THE PUBLIC ART PROPOSAL FOR A MARBLE SCULPTURE TO BE LOCATED N FRONT OF THE MORRO BAY SENIOR. CENTER: (RECREATION & PARKS) RECOMAIENDATION: Review and approve the proposal from Ann Marie Schneztler by artist Crissa Hewitt in memory of Nicole Poucel which includes the design and installation of a marble sculpture at the Morro Bay Senior Center; located at 1001 Kennedy Way; Staff recommends Alternative 1. A-7 AUTHORIZATION TO FILE NOTICE OF COMPLETION PROJECT 3\10. N113-2010- PD1: WIRELESS COMMUNICATIONS UPGRADES: (PUBLIC SERVICES) RECOMMENDATION: File the Notice of Completion for Wireless Communications Upgrades. ® A-8 CONSIDERATION OF AMENDMENT OF SECTION 2.2 OF THE CITY COUNCIL POLICIES AND PROCEDURES REGARDING MEMBERS RECEIVNG UNEXPENDED MONTHLY DOLLARS FROM THE COST OF THEIR MEDICAL PLANS: (ADMINISTRATION) RECOMMENDATION: Return to the City Council with a Resolution amending the City Council Policies and Procedures, Section 2.2, striking the language that currently allows Council members from receiving any unexpended monthly dollars from the cost of their medical plan. A-9 APPROVAL OF RESOLUTION 49-13 FOR LEASE AGREEMENT FOR LEASE SITE . 82-85/82W-85W: 725 EMBARCADERO (ROSE`S LANDING. REDICANg: (HARBOR) RECOMMENTATION: Approve Resolution No. 49-13 approving a new Lease Agreement for Lease Site 82-85/82W-85W, located at 725 Embarcadero, with 725 Embarcadero LLC, owned by Doug Redican. Mayor Irons opened up the public comment period for items on the Consent Calendar: seeing none, the public comment period was closed. Councilmember Nancy Johnson pulled Items A-3 and Item A-8: Councilmember Smukler pulled Items A-1. A-2. A-6 and A-9: and Mayor Irons pulled Item A-4 from the Consent Calendar. 5 MIN'UTES - MORRO BAY CITY COUNCIL - OCTOBER 8. 2013 ® MOTION: Councilmember Smukler moved the Citv Council approve Items A-5 and A-7 of the Consent Calendar as presented. The motion was seconded by Councilmember Nancy Johnson and carried unanimously 5-0. A-4 PROCLAMATION DECLARING OCTOBER 6-12. 2013 AS FIRE PREVENTION WEEK; (ADMINISTRATION) Mayor Irons pulled Item A-4 to read the Fire Prevention Week Proclamation. MOTION: Councilmember Christine Johnson moved for approval of Item A-4 as presented. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION MEETING HELD ON SEPTEMBER 12, 2013; (ADMINISTRATION) A-2 APPROVAL OF THE CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION CITY COUNCIL MEETING HELD ON SEPTEMBER 24, 2013: (ADMINISTRATION) Councilmember Smukler pulled the minutes based on an email received. Out of an abundance of caution, he doesn't feel it is prudent to approve the minutes until we've had a chance to resolve ® anv issues that.have been raised regarding these meetings. MOTION: Councilmember Smukler moved to postpone approval of Item A-1 until we have time to have a discussion with outside legal counsel. The motion was seconded by Councilmember Christine Johnson and carried 3-2 with Councilmembers Nancy Johnson and Leage voting no. Discussion was held regarding this motion with Councilmember Nancy Johnson stating that the minutes are a record of what happened: and not a judgment. They are the clear representation of what happened at the meeting. whether it was legal or not is an entirely different issue. Councilmember Christine Johnson is willing to support the continuance. she too is cautious and the public can still access them from the City's website via the October 8, 2013 agenda packet. MOTION: Councilmember Smukler moved to approve Item A-2 as presented. The motion was seconded by Mayor Irons and carried unanimously 5-0. A-3 APPROVAL OF CITY COUNCIL MNUTES FOR THE REGULAR CITY COUNCIL MEETING HELD ON SEPTEMBER 24, 2013; (ADMINISTRATION) Councilmember Nancy Johnson stated that since she was not in attendance. she wants some clarification on Item A-7 and what went on at the meeting before the minutes were approved. Were Councilmember Leage-s questions answered: Councilmember Christine Johnson referred to unusual circumstances. but those weren't defined; is Council also going to ask the outside 6 MINUTES - MORRO BAY CITY COUNCIL - OCTOBER 8. 2013 ® attorney to review the legality of the meeting last April where the Council majority voted to spend SJ500 on outside counsel. MOTION: Councilmember Nancy Johnson moved not to approve the September 2=4, 20li minutes until clarification to her questions can be given. The motion was seconded by Councilmember Leage and carried unanimously 5-0. A-6 REVIEW AND APPROVE THE PUBLIC ART PROPOSAL FOR A MARBLE SCULPTURE TO BE LOCATED N FRONT OF THE MORRO BAY SENIOR CENTER; (RECREATION & PARKS) Councilmember Smukler pulled this item to discuss the possible fiscal impact of S2,000 as it relates to the significant public benefit. He asked staff if they felt comfortable that there is a nexus there - the Citv's work and expenditures and the benefit of the art project. Recreation & Parks Director Joe Woods stated that taking down the wall will create a more open and inviting atmosphere. MOTION: Councilmember Smukler moved approval of the public art proposal with a request to staff to minimize the general fund expenditure. The motion was seconded by Councilmember Christine Johnson and carried unanimously. 5-0 A-8 CONSIDERATION OF AMENDMENT OF SECTION 2.2 OF THE CITY COUNCIL POLICIES AND PROCEDURES REGARDING MEMBERS RECEIVING UNEXPENDED MONTHLY DOLLARS FROM THE COST OF THEIR MEDICAL PLANS; (ADMINISTRATION) Councilmember Nancy Johnson asked the Council for feedback on how they felt about the staff report and the alternatives given. Councilmember Smukler stated that this came about in an effort on Council's part to drastically reduce what the Council's benefit package was. He felt at the time it was excessive and voted to reduce it to the level thev are at now. Currently thev receive a single coverage at the lowest level or get cash back, in that amount, to purchase your own. He agrees that this isn't very clean and can support Alternative 41. MOTION: Councilmember Nancv_ Johnson moved for approval of Alternative 91 for agenda Item A-8. The motion was seconded by Councilmember Smukler and carried unanimously. 5-0. A-9 APPROVAL OF RESOLUTION 49-13 FOR LEASE AGREEMENT FOR LEASE SITE 82-85/82W-85W; 725 EMBARCADERO (ROSE'S LANDING, REDICAN); (H-ARBOR) Councilmember Smukler pulled this item to give Harbor Director Eric Endersby the opportunity to explain the rationale behind the lease years and the investment connection. 7 MINUTES - MORRO BAY CITY COUNCIL - OCTOBER S. 2013 ® Councilmember Leage had to recuse himself from the discussion due to the proximity of his property to the project location. MOTION: Councilmember Smukler moved to approve Resolution 49-13 for the new lease agreement for lease site 82-85/82W-85W. The motion was seconded by Councilmember Nancy Johnson and carried 4-0-1 with Councilmember Leage having to recuse himself. B. PUBLIC HEARINGS B-1 APPEAL OF THE PLANNING COMMISSION DENIAL OF CPO-246 FOR THE DEMOLITION AND RECONSTRUCTION OF A -SINGLE FAMILY RESIDENCE. (360 CERRITO PLACE, N. TURNER, APPELLANT/APPLICANT): (PUBLIC SERVICES) Planning Manager Kathleen Wold presented the staff report. Representing Vls. Turner on this project. Cathy Novak provided her presentation. Ms. Novak covered the permit and its history, the neighbor's appeal and the Planning Commission's actions. This project was originally approved administratively in October 2007 and was then appealed. . The appeal raised 3 issues: overturn or postpone the appeal until after the court settled the boundary dispute; amend the project to include the sewer easement, removal of the rooftop fire ® pit and change the side setback interpretation: and, request to overturn the approval due to incompatibility. The appeal was heard by the Planning Commission in December 2007 and continued to a date uncertain. The owners settled their disputes and the court action was withdrawn in January 2009. Discussions and correspondence has been ongoing between staff and/or Ms. Turner and/or her architect for some time regarding the need for revised plans, as well as explanations as to why this process has taken so long. The project went to the Planning Commission on August 215`. where the Commission heard that the revised plan had been submitted to the City the day_ before but that staff hadn't had the time for review before the meeting. The Commission proceeded to uphold the appeal and deny the project as well as denied staffs recommendation for a continuance. At this point; the project is at a point that it doesn't make sense for Ms. Turner to start the process over again: in addition. Ms. Turner has provided justifiable reasons and sufficient information that the length of time this has taken has been out of her control. Since both parties have invested a considerable amount of time and effort. the only fair solution would be for the Council to remand this to the Planning Commission for a full public hearing per staffs recommendation. This would also give everyone the right to review and discuss the one project without needing to question whether it is old or revised. Mayor Irons opened up the public comment period for Item B-1. Alex Beattie lives in the neighborhood and today was the first time he's ever seen a notice. He feels that there needs to be a betterjob by the appellant in noticing the property. He knows that a couple of months ago. the Planning Commission voted unanimously to deny the project and as such. he feels you should stick with what the Planning Commission decided. They need to ® submit some clear information that the entire neighborhood can understand and react to. 8 MINUTES - MORRO BAY CITY COUNCIL - OCTOBER 8. 2013 ® Berta Parrish feels there has been inconsistencv and bias surrounding this project. She feels that there are 2 values being threatened tonight - adherence to process and promotion of fairness to all parties. She feels they have had more than sufficient time to produce the documents requested by staff. The Planning Commission followed its processes perfectly even with the 3 continuances. The neighbors have received conflicting information. in fact the postcard they received for this hearing stated that the staff recommendation was to uphold the Planning Commission's decision and deny the project. She stated that a de novo hearing has never been used in Morro Bay and questioned whether or not we wanted to start now. She urged Council to uphold the Planning Commission's decision; a clean break is needed from this controversial project. Amy Perry- is completely confused. She received a notice. regarding the Planning Commission denial. The neighbors are concerned we aren't being properly notified and they don't know what is going on. Nancv Kerr is also confused but does believe that the Planning Commission's decision needs to be followed as they followed procedures. The public comment period for Item B-I was closed. Councilmember Nancv Johnson stated that it seems like the logical thing to do would be to send the current project back to the Planning Commission and start all over again with the proper ® information and noticing. Give the project a fresh start. Councilmember Smukler definitely has concerns about the process and how long this has been drawn out. His feeling is that we.need to start.over and need closure on the former process. The new proposal would have a fair representation and can remove itself from the stigma of the old proposal. The only way to do this would be to uphold the Planning Commission's findings and start the process over. He feels this would give the property owners a better chance. Councilmember Leage has lots of confusion about this. He feels that sending it back to the Planning Commission would be the right course of action. let them figure it out. Councilmember Christine Johnson stated that in her review of the staff report and the . documentation. she feels strongly_ that the Planning Commission knew exactly what thev were doing in denying the old project. It looks to her that it's not the same project as all 3 issues from before, seem like they've been resolved. She believes that the fresh start would be Alternative I. to denv without prejudice and send it back to the Planning Commission. Mavor Irons believes the Planning Commission ruled with all the information they had at their disposal. He supports Alternative 41, without prejudice. MOTION: Councilmember Smukler moved approval of Alternative 41, to uphold the Planning Commission decision to deny CPO-246 by denying the appeal subject to the ® findings made in Exhibit A without prejudice. The motion was seconded by 9 MINUTES - MORRO BAY CITY COUNCIL-OCTOBER 8.2013 Councilmember Christine Johnson and carried 3-2 with Councilmembers Nancy Johnson and Leage voting no. B-2 APPEAL OF ADMINISTRATIVE DECISION REGARDING STAFF AUTHORIZATION OF A FENCE ON CITY OWNED PROPERTY ADJACENT TO CHORRO CREEK ROAD IN THE UNINCORPORATED AREA OF SAN LUIS OBISPO COUNTY (JOSEPH GOODWN APPELLANT; MIKE AND CARRIE BURTON, PERMITEES); (PUBLIC SERVICES)\\ Public Services Director Rob Livick presented the staff report Cathv Novak spoke, representing Mr. Goodwin for his appeal of the permit that was issued for a fence on City property off Chorro Creek Road. She respectfully disagrees with staffs recommendation and urges Council to uphold the appeal and support Alternative T1 which is to revoke the permit and order the removal of the fence. Ms. Novak covered several topics: Mr. Goodwin's response to the findings made in granting the applicant's Special Encroachment permit; history regarding the subject properties; the purpose and effects; and, the easements. There is no written application or documentation on file with the City for this request, making it difficult to respond to specific points and concerns that the applicant may have in applying for this permit. The only indication of "why', comes through in the staff report that states the permittees have stated they need the fence for security and their full enjoyment of the access easement. Ms. Novak states that the fence as constructed doesn't afford the applicant any additional security and the easement granted to the Burton's is for egress and ingress and the fence doesn't enhance or detract from this so the question remains, what is the true purpose of the fence. Ms. Novak went on to give a history of the properties. It is their contention that when the LaDuc's sold the property to the Burtons; they changed the legal description for the easement right and transferred only a non-exclusive easement and not an exclusive easement which doesn't grant the right to the Burton's for them to restrict a third party from accessing the CiWs property. Regarding the access to the flag portion of the lot. Mr. Goodwin has relied on this access road for servicing his propane tank; other utility services and for access to the water tanks for fire services. The Citv has known that Mr. Goodwin has utilized this access _way and has never indicated that there was an issue or that they intended to restrict his access. iVir. Goodwin feels that this permit should be rescinded as the fence reduces fire saferv. in addition. he feels he has an implied access right as this easement has been used continuously for the last 30= years. There is an additional problem as the fence has substantially impaired access to his property for utility services. In summary. the Burton's easement is for the right of ingress and egress and not for security; the fence doesn't provide additional security; the fence doesn't do anything to provide or hinder the Burton's full enjoyment of the access easement; Mr. Goodwin relied on good faith that his ability to access this road wouldn't be jeopardized; and, the neighbors don't own the property, the City does. They are requesting the City uphold the appeal. revoke the special encroachment permit and demand the removal of the fence, and finally_ formalize the access easement with Mr. Goodwin. Representative Chris Guenther; representing the Burtons presented their side. He stated that Ms. Novak came up with a lot of reasons that Mr. Goodwin has been %Tonged. In truth. the Burtons ® have been putting up with Mr. Goodwin and the Roandoak facility for many years. Mr. 10 MINUTES - MORRO BAY CITY COUNCIL- OCTOBER 8. 2013 Goodwin is operating a boarding house illegally, necessitating the need for the additional security, as the patrons/residents come and go and they aren't exactly the best of citizens. There are 2 reasons for the fence: security from Roandoak residents because of their behavior and their conduct. The Burtons came to the City for permission for the fence. The fence acts as an insulator for possible trespassers on City property as well as the Burton's property. The right to allow Roandoak access is through the courts, not the Citv Council. this is the wrong forum for this discussion. Cal Fire has been contacted and they have no problem with the fence. The propane tanks can be moved allowing the delivery trucks access to fill those tanks. Access to these things is their problem, not the Burtons. In answer to why they went ahead and built the fence; this is outside the Citv limits and they don't believe we have the jurisdiction to issue permits. His position would be that an agreement from one property owner to another, not a conditional use permit. should have been used to secure and protect their easement. He asks Council to step up and deny the appeal. Mayor Irons opened up the public comment period for Item B-2. Susan McElhinny, Attorney for Mr. Goodwin, stated that there is a lot to respond to. The issue of no recorded easement is that the Burtons have a recorded easement but it is a non-exclusive easement. The exclusive easement that they are asserting was recorded by Fidelity Title Company and their recordation is simply a non-exclusive easement. A far as the question as to why Mr. Goodwin hasn't recorded an easement, there are 2 ways this could be done - he could bring an action under Code of Civil Procedures Section 1060, but for its use there has to be an ® actual controversy and to date. and to their knowledge. there hasn't been one. Or there could be a quiet title action to establish the implied easement that has existed for 30-40 years along that road found in Code of Civil Procedure 760.020. It states that an action may be brought to establish title under adverse claims: but until 2013. there were no adverse claims. it was a common road and no one disputed it, so there was no legal mechanism to make this claim. And as far as it being a security issue, per the photo, anybody can walk around the end of the fence to get to their property. Carrie Burton stated that as far as who was there first, it was her understanding when thev purchased their property that the Roandoak building was coming down. Mr. Goodwin didn't show up on that property until 2003. She also stated that there were several mistakes on the recorded deed some of which include the non-exclusive easement. Her recorded agreement with the City which gave her the exclusive easement is recorded and legal. She also says the title will be corrected to sav exclusive easement. She also stated that the fence has brought her a lot of peace and urged Council to allow them to keep the fence. The public comment period for Item B-2 was closed. Councilmember Christine Johnson stated that the documents recently received haven't been disclosed to the public and given that. was concerned about making a decision on this appeal. Citv Attomev Schultz stated that if you felt that based on what you've received is new information then you would have the option to continue the item. Councilmember Johnson is concerned with the fact that there could be pending litigation that would be more appropriate for ® a Closed Session meeting. 11 MINUTES - NIORRO BAY CITY COUNCIL -OCTOBER 8.2013 Councilmember Smukler was surprised this came to Council. He sees it as a cut and dry issue as to what we as a Council can discuss — fence or not fence. He wants to put it to rest and then allow the rest to follow the legal process for each of the parties. He feels we are protected here by moving forward. Mayor Irons also feels like we need to move forward on this. MOTION: Mayor Irons moved to uphold the staffs recommendation to allow the installation of the fence. The motion was seconded by Councilmember Smukler and carried 3-2 with Councilmembers Nancv Johnson and Leage voting no. B-3 ZONING TEXT AMENDMENT A00-015 DRAFT SIGN ORDINANCE (MUNICIPAL CODE SECTION 17.68); (PUBLIC SERVICES) Planning Manager Kathleen Wold presented the staff report. ivfavor Irons suggested we receive the initial reports, have the Council ask questions and then continue the item to the next meeting where it can be placed earlier in the agenda which would also allow for more public input. There was a consensus of Council to do this. Planning Intern, Erik Berg -Johansen also made a presentation regarding the proposed Embarcadero District Tourism Oriented Directional Sign Plan. This proposal is not part of the Sign Ordinance but is something that could be implemented after adoption of the new ordinance. The goals of the program include being able to advertise the name and location of businesses along the Embarcadero that are hidden from the main public right-of-way; to provide information about businesses through the use of international symbologv; and, to implement a series of directory maps that will help tourists navigate the Embarcadero and locate businesses. Over 85 businesses could be eligible under this current draft and it is suggested that staff surveys Embarcadero businesses to gauge their interest; funding for the program is still to be determined: and it should be stressed that this program is in draft form and changes can be made to it at any time. The public comment period for Item B-3 was opened: seeing none, the public comment period for the item was closed. Councilmember Smukler wants staff to provide discussion on the potential of expanding the concept of the Specialty Signage from the Embarcadero to also include the Downtown Area. This item will be brought back to the next meeting to include options for special meeting dates. Mayor Irons requested to skip over Items C-1 and C-2 and if we get through the last 3 items we can come back to Item C-1 and C-2 which are MviRP and WWTP WRF. With support; he'd like to move onto Item D-1. There was Council consensus for this. C. UNFINISHED BUSINESS 12 MINUTES - MORRO BAY CITY COUNCIL - OCTOBER S. 2013 C-I STATUS REPORT OF A MAJOR MAINTENANCE & REPAIR PLAN (vLViRP) FOR ® THE EXISTING WASTEWATER TREATMENT PLAN: (PUBLIC SERVICES) Councilmember George Lease was not present for this item as he had previously recused himself from hearing Items D-2 and D-3 due to the proximity of his property to the project locations. Public Services Director Rob Livick presented the staff report. The report was received and filed. C-2 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS AND DISCUSSION; (ADMINISTRATION) Councilmember George Leage was not present for this item as he had previously recused himself from hearing Items D-2 and D-3 due to the proximity of his property to the project locations. Councilmember Smukler asked Public Services Director Livick about the potential of our W-RF wastewater beins identified as a source for once through cooling at Diablo Canyon being presented to the Water Quality Control Board. Mr. Livick stated that we aren't far enough in the planning process to be able to comment whether or not this is a viable option for them; we may want to keep the water local to use in our own water sheds. It would be premature for the State Water Board to say that this is a viable option for their cooling water. Mr. Livick did say he ® would be comfortable in sending a letter to that fact to the State Water Quality Control Board. This report was received and filed. D. NEW BUSINESS D-1 CONSIDERATION AND DIRECTION REGARDING THE EXPANSION OF THE UNITED STATES COAST GUARD (USCG) FACILITIES N MORRO BAY: (.ADiViNISTRATION) City Manager Andrea Lueker presented the staff report. The public comment period for Item D-1 was opened. Janice Peters is delighted to see that the USCG relationship with the City is as good as it is. She also feels it is wonderful that they have a presence here. She has concerns though about the site that has been selected for the expansion. Morro Bay depends on tourism for our revenue and this is a prime tourism view site. She feels there is other land available, possible the Dynegv site if it closes down. She also stated that lighting could pose a problem. She wants the relationship to continue but hopes the City can help them locate a different location. The public comment period for Item D-1 was closed. Councilmember Leage agrees with Ms. Peters. He feels we could have a tremendous outcry over ® this. He feels there could be a better spot for their facility. I MINUTES - MORRO BAY CITY COUNCIL - OCTOBER 8, 2013 Councilmember Christine Johnson is excited that we have a harbor that could be even better protected. She also agrees that it would be very hard to take away "Mother's Beach". She cautions that moving forward at that spot wouldn't have support from the public and she is open to partnering with them to look at other sites. This proposed site would greatly impact the view and as well as inhibit bicyclists. Councilmember Nancv Johnson said that Ms. Peters said it all. She loves the Coast Guard and is glad that they are here as we need them on a lot of different levels. She would even be willing to give up the parking lot we just got. She doesn't think that "Mother's Beach" or Coleman Beach is the right place for their project. Councilmember Smukler has received strong feedback that while there is strong support for the Coast Guard. there is no support for this location. He would like to see us work to extend and renew the exploration for some joint options. He would also like to see the public process as an element to this. Mavor Irons stated that Council is all in agreement with Alternative 43 - to inform the USCG the City of Morro Bay is interested in expansion of facilities, but not this this area. There was Council consensus for staff to meet with the USCG stipulating Alternative `3 for further discussions. ® D-2 APPROVAL OF CONSENT OF LANDOWNER AGREEMENT FOR LEASE SITE 86/86W AT 801 EMBARCADERO (EMBARCADERO GRILL. CALDWELL) TO FILE AN APPLICATION FOR LEASE SITE IMPROVEMENTS AND ALLOW STAFF TO ENTER INTO LEASE NEGOTLATIONS; (HARBOR) Councilmember Leage had to recuse himself from the discussion of this item as well as the next item. Item D-3, due to the proximity of his property- to the project locations. Harbor Director Eric Endersby presented the staff report. Representing the applicant. Burt Caldwell, Cathv Novak made a presentation for the project at 801 Embarcadero. also known as Libertine Pub. The Libertine Pub has quickly become a success: and to capture this theme and expand on the marketing of the pub; Mr. Caldwell has proposed a building design that represents the connection of agriculture with a grain elevator and the finished product of the beer. The waterfront design guidelines encourage designs that incorporate different features and promote diversity to create interest. The project as proposed demolishes and rebuilds the embarcadero side of the building. remodels the harbor side of the building and eliminates the second story. A 12 foot public walkway will be created between this building and the one next door. This walkway will also have a public use area with tables, bicycle racks and trash/recycling receptacles. The walkway will also lead pedestrians to the new ten foot wide harborwalk along the bay. There is a proposed roof deck which will be accessible from both the interior and exterior stairs. A silo and grain elevator has been added for visual interest. It will be operational on a limited basis. The mash tanks located on the ground level ® will have large windows open to the Embarcadero so that visitors can see the operations. 14 NIINUTES - MORRO BAY CITY COUNCIL - OCTOBER 8. 2013 ® Removing the second story will open up views of the rock and greatly reduce the mass of the building. The project also includes a single side tie dock with a gangway entrance from the harborwalk. This project meets the Citvs waterfront design guidelines, zoning ordinance and LCP as well as provides public benefits. Mr. Caldwell is prepared to submit this project to the City so they are looking for Council to authorize staff to sign the consent of landowner form so the process can begin. The public comment period for Item D-2 was opened; seeing none, the public comment period for Item D-2 was closed. favor Irons is more in favor of Plan B as he feels it allows for more public benefit. MOTION: Mavor Irons moved to extend the meeting beyond 11:00pm. The motion was seconded by Councilmember Christine Johnson and carried 4-0-1 with Councilmember Lease having recused himself earlier due to a prior conflict of interest. Councilmember Nancv Johnson is in favor of the project and likes the Plan B version. Councilmember Smukler also is in favor of the project and also likes Plan B. He likes the open space along with some planter beds; he also likes the bicycle parking component. Councilmember Christine Johnson appreciates the fact that they are removing the second story is enthusiastic of a building on the Embarcadero which will create much better views. She is very enthusiastic about the project. MOTION: Councilmember Smukler moved to approve Alternative B, Site Plan B. and authorize the Citv Manaeer to execute the Consent of Landowner Agreement with the Leaseholder. The motion was seconded by Councilmember Christine Johnson and carried 4-0-1 with Councilmember Lease having been recused due to a conflict of interest. D-3 APPROVAL OF RESOLUTION 48-13 DESIGNATING S399.000 IN PARKING IN - LIEU FUNDS FOR REVISIONS TO THE PARKING IN -LIEU MAP AND IMPROVEMENTS TO THE CITY -OWNED FRONT STREET AND TRIANGLE PARKING LOT ADJACENT TO THE DYNEGY POWER PLANT, AND REVIEW AND DISCUSSION REGARDING THE CITY PARKING MANAGEMENT PLAN: (CITY ATTORNEY/PUBLIC SERVICES) Councilmember Lease was not present for this Item. as he had been recused during the hearing of Item D-2 due to the proximity of his property to this project location. City Attorney Rob Schultz presented the staff report. There was Council consensus to have staff bring back a discussion of the Pavement Management ® Plan as the hour was late. 15 MINUTES - MORRO BAY CITY COUNCIL - OCTOBER 8. 2013 ® MOTION: Councilmember Nancy Johnson moved approval of Resolution 48-13 designating S399,000 in Parkins in Lieu funds for revisions to the parkins in lieu map and improvements to the City -owned Front Street and Triangle Parkins lot adjacent to the Dynegy Power Plant. The motion was seconded by Councilmember Smukler and carried 4-0-1 with Councilmember Lease having recused himself due to a conflict of interest. E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS Councilmember Nancy Johnson requested a discussion of the City Council's commitment to the Citv's 60`h Anniversary Celebration: there was unanimous Council consensus. Councilmember Nancy Johnson requested Mayor Irons prepare and present a report detailing the status of the hiring of outside legal counsel: there was unanimous Council consensus. ADJOURNMENT The meeting adjourned at 11:20pm. Recorded by: amie Boucher ® City Clerk 16 MINUTES - MORRO BAY CITY COUNCIL - OCTOBER 8. 2013 ® 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 CLOSED SESSION MEETING TUESDAY, SEPTEMBER 24, 2013 CITY HALL CONFERENCE ROOM - 5:00 PAL 595 HARBOR ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER SUMMARY OF CLOSED SESSION ITEM — The Mayor will read a summary of Closed Session item. CLOSED SESSION PUBLIC COMMENTS — Members of the public may address the City Council on any matter that is listed on this Closed Session agenda. Unless additional time is ® authorized by the City Council, remarks shall be limited to three minutes. THE CITY COUNCIL WILL b1OVE TO CLOSED SESSION CS-1 GOVERNTNIENT CODE "SECTION 54956.8: 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 parcel. • Property: Property: Vacant Lot/Corner of Coral/San Jacinto Negotiating Parties: Broc Assets. Inc. and City_ of Morro Bay Negotiations: Voluntary Purchase and Sale CONVENE TO OPEN SESSION — Announcement of reportable action from closed session. if any. DATED: September 19, 201 3 ana Swanson, Deputy City Clerk IN COMPLIANCE WITH THE AMERICANS WITH DISABILITY ACT. IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY IvIEETIN'G. PLEASE CONTACT THE CITY CLERK'S OFFICE ® AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. MINUTES — MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING — SEPTEMBER 24, 2013 ® CITY HALL CONFERENCE ROOM — 5:00PM PRESENT: Jamie Irons Christine Johnson Georee Leaee Noah Smukler STAFF: Andrea Lueker Robert Schultz ESTABLISH QUORUM AND CALL TO ORDER AGENDA NO: A-2 MEETING DATE: 10/8/2013 Mayor Councilmember Councilmember Councilmember City Manaeer City Attomev SUMMARY OF CLOSED SESSION ITEMS - The Mayor read a summary_ of Closed Session items. CLOSED SESSION PUBLIC COMMENTS - Mayor Irons opened the meeting for Public Comment Matt Deal, spoke representing Broc Assets Inc., a San Diego based builder/remodeler of homes. He has been engaged by Broc Assets to find small, buildable projects located in good communities, whose property is in a good location and can be sold as a good product. This land ® meets all of those criteria and he hopes to be able to move forward working with the City in purchasing this piece of property. The Public Comment period was closed. The City Council moved to Closed Session and heard the following items: CS-1 GOVERNMENT CODE SECTION 54956.8: 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 parcel. • Property: Property: Vacant Lot/Corner of Coral/San Jacinto Negotiating Parties: Broc Assets. Inc. and City_ of Morro Bay Negotiations: Voluntary Purchase and Sale CITY COUNCIL CONVENED TO OPEN SESSION — The City Council convened to open session: City Attorney, Rob Schultz reported that no reportable action under the Brown Act was taken. ADJOURNMENT The meeting adjourned at 5:24pm. ® Recorded by: amt Citv 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 TUESDAY; SEPTEMBER 24, 2013 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., NIORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE CLOSED SESSION REPORT MAYOR & COUNCILMEMBERS' REPORTS. ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS ® • 2013 Lifeguard Program Summary PUBLIC COMMENT - Members of the audience wishing to address the Council on City business matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda. but unable to stay for the item, may also address the Council 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 AGENDA ® Unless an item is pulled for separate action by the. City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAAL CLOSED SESSION MEETING HELD ON SEPTEMBER 10, 2013; (CITY ATTORNEY) RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF THE CITY COUNCIL YIINUTES FOR THE REGULAR COUNCIL MEETIN G HELD ON SEPTEMBER 10, 2013- (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-3 APPROVAL OF CITY" COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION MEETING HELD ON SEPTEMBER 12. 2013; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-4 PROCLAMATION DECLARING OCTOBER 2013 AS ENERGY AWARENESS MONTH- (ADMINISTRATION) is RECOMMENDATION: Approve as submitted. A-5 PROCLAMATION DECLARING OCTOBER 201 3 AS RIDESHARE MONTH AND OCTOBER 9. 2013 AS INTERNATIONAL WALK TO SCHOOL DAY_: (ADMINISTRATION) RECO,VIMENDATION: Approve as submitted. A-6 APPROVAL OF ONE YEAR CONTRACT EXTENSION WITH MV TRANSPORTATION FOR MORRO BAY TRANSIT AND TROLLEY OPERATIONS AND MANAGEMENT: (PUBLIC SERVICES) RECOi FNIENDATION: Approve a one (1) year extension of the current Morro Bay Transit and Trolley Operations and Management Agreement with MV Transportation and authorize staff to prepare a Request for Proposals for the operation and management of D4orro Bay Transit and Trolley services for release in August 2014 for award by Council in November 2014.. A-7 OBTAIN OUTSIDE INDEPENDENT LEGAL COUNSEL TO ADVISE CITY COUNCIL ON CITY MANAGER AND CITY ATTORNEY CONTRACTS AND RELATED ISSUES: (MAYOR) ® RECOMMENDATION: Authorize Mayor Jamie Irons to obtain outside independent legal counsel for the purpose of guiding Council through any and all personnel matters of the City Attorney and City Manager.. B. PUBLIC HEARINGS - NONE ® C. UNFINISHED BUSNESS CA PROJECT STATUS REPORT; (ADMINISTRATION) RECOMMENDATION: Review and discuss this informational item and provide staff direction. D. NEW BUSINESS D-1 APPROVAL OF CONSENT OF LANDOWNER AGREEMENT FOR LEASE SITE 96/96W (ROCCA'S. VAN BEURDEN) TO FILE AN APPLICATION FOR LEASE SITE IMPROVEMENTS AND ALLOW STAFF TO ENTER INTO LEASE NEGOTIATIONS: (HARBOR) RECOMMENDATION: Consider the two alternatives and provide direction; staff is recommending Alternative A. D-2 DISCUSSION ON ESTABLISHING A SUBCOMMITTEE TO MEET WITH THE OWNERS OF THE PROPERTY LOCATED AT THE SEC EMBARCADERO .AND HARBOR TO DISCUSS POTENTIAL USES OF THE PROPERTY: (CITY ATTORNEY) ® RECOiIMENDATION: Do not establish an Ad Hoc Council Subcommittee to meet with the property owner to discuss potential uses for the property but instead encourage staff to meet with the property owner regarding his potential project for the property. E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS F. ADJOUTZNNIENT 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 772-6205 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. El ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 24, 2013 VETERAN'S MEMORIAL HALL — 6:OOP.M. PRESENT: Jamie Irons Christine Johnson George Leage Noah Smukler STAFF: Andrea Lueker Robert Schultz Jamie Boucher Amy Christey Susan Slayton Joe Woods Rob Livick Mayor Irons called the meeting to order at 6:00 p.m. AGENDA NO: A-2 MEETING DATE: 1/14/2014 Mayor Councilmember Councilmember Councilmember City Manager City Attorney City Clerk Police Chief Administrative Services Director Recreation & Parks Director Public Services Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE ® PLEDGE OF ALLEGIANCE CLOSED SESSION REPORT — City Attorney Robert Schultz reported that City Council met in a Special Closed Session on September 24, 2013 on the following item: Government Code Section 54956.8: 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 parcel: Vacant Lot/Comer of Coral/San Jacinto- no reportable action under the Brown Act was taken. MAYOR AND COUNCILMEMBERS' REPORTS. ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS 2013 Beach Lifeguard Program Summary — Kyle Shaffer, Lifeguard Supervisor and Reserve Harbor Patrol Officer with the City's Harbor Department presented a recap of the 2013 Beach Lifeguard Program. This has been the 5's year of conducting our own USLA Lifeguard Training Academy where we trained 11 lifeguards. Our own City lifeguards placed I` in the Annual SLO County Lifeguard Agency 5 Man Paddle Relay. The lifeguard season ran weekends only from Memorial Day until June 8a' when 7 day a week coverage began. This full covera e went through Labor Day weekend-, weekend only coverage continues through October 6 . The summer statistics include an estimated 108,000 beach goers; 3 rescues. 5 swimmer assists. 79 ® preventable actions. 19 medical aids, 3 lost and found. 2800 public contacts. 385 public safety ® lectures, 27 animal rescues/assists, assisted the Harbor Department with boating emergencies twice and most importantly, NO drownings or near-drownings. MOTION: Mayor Irons moved to pull Items A-4 and A-5 in order to present the Proclamations to those in attendance for Rideshare Month and Energy Awareness Month. The motion was seconded by Councilmember Christine Johnson and carried 4-0-1 with Councilmember Nancy Johnson not in attendance. PUBLIC COMMENT Richard Sadowski supports the Council on this issue; he feels we could do better. He feels that our attorney is more aligned with the Cayucos CSD on the W WTP issue. He also stated that he has presented evidence of clear violations of building practices, one being on Quintana and Main, and was dismissed. This is a matter of public trust and he thinks the Council should get better representation. Marla Jo Bruton also feels we could do better. She has presented examples of how we could do better with a change in administration — the following have been done improperly: wastewater treatment plant design contract, Measure D, Harbor Leases conducted behind closed doors, and the Power Plant Lease Agreement. Joan Solu stated that she has been an HR Director with at will employees and as such recognizes ® the need for clear and transparent employment practices, policies and procedures; always respecting the negative impact a poorly conducted termination would have on the financial register and the morale of the remaining employees. An at will termination must be backed by a well thought out exit strategy for the employee and a prepared succession plan. Termination of 2 top level executives could be thought of as reckless and she also feels this will place the City in extreme financial strain. She asked the Council to consider the goals that won't be able to be met with the void of upper level management. She also feels that Council should cease these actions as it is creating a hostile work environment. David Nelson stated that this is a Council decision and it is your job to determine if a majority of you feel this is a necessary step. He hopes there is a plan in place. We have to move ahead quickly and efficiently. Nicole Dorfman has questions regarding the revisions made to the contracts of the City Attorney and the City Manager back on November, 2012. She directed her questions to those Councilmembers who were in office at the time. She asked if the contracts were revised to include an additional 3 months' severance for each employee; she asked if any other employee's contracts were also revised; she asked for the reasoning behind adding the benefit: and she asked how these changes benefitted the citizens of Morro Bay. Betty Forsythe spoke on an attracted nuisance on a hillside by her home. The hillside at Driftwood was used by many visitors as a shortcut to the Avocado Margarita Festival which is ® causing a dangerous erosion issue. The City fixed a barrier for the cars but didn't fix the hillside. 2 MINUTES - MORRO BAY CITY COUNCIL - SEPTEMBER 24, 2013 ® There is no vegetation there and the hill is beginning to slide. She would like a fence placed there. Janice Peters stated that neither the City Manager nor City Attorney have had any charges or complaints filed against them. Also. the City Manager and the City Attorney both received above satisfactory reviews just 5 months ago. She also stated that Mayor Irons has said that he has been thinking about this for quite awhile but has made no efforts to work out these disagreements with either employee but instead abruptly called a meeting to discuss their termination. There is no wonder that everybody is so upset as there are no reasons for this proposed dismissal. She stated these 2 employees have served for several Councils and have always made the adjustments necessary to respond to a change in Council direction. They deserve to be respected. not terminated. She questioned what the agenda here was. Carla Wixom feels that this is a blatant abuse of power and stated that just because you can. doesn't mean you should. Both the City Manager and the City Attorney are loyal City employees who have served the City for many years. Council promised transparency, integrity and unity but this action couldn't be more divisive; unprofessional and wrong. This is a shameful waste of tax dollars. Bridgett Kessling served as the City's City Clerk from 1992-2011 and worked for 5 City Managers. Andrea Lueker by far is top notch. She is saddened by this issue and finds herself in a place of opposition with people she has a good relationship with. She doesn't understand some of the claims she has read like T-,virt Bridges or Cerrito Peak, neither of which either employee ® have had anything to do with. Both the City Manager and City Attorney are doing the jobs as - they should be done; it is Council that makes the decisions on key issues. Barbara Doerr thanked Mayor Irons. and Councilmembers Christine Johnson and Smukler. She voted for all three and finds each to be intelligent individuals and thanks them for putting their unique talents to work for us. She trusts in the decisions they are making. She has been an elected official, has been a government employee and a volunteer for many years for governmental groups and so believes she knows good elected officials when she sees them. She feels they should be proud and hopes they don't let intimidation sway them. They have encouraged public input, more public workshops, more citizen advisory committees and earlier review of important decisions facing the City. Dorothy Cutter has lived in Morro Bay for 54 years. She stated she feels there are 2 groups, a majority that just wants to live in a beautiful place and the minority whose bottom line is greed at the expense of the majority who lost control in the election of 2012 and will do anything to get it back. The newly elected Council has stopped the wasting of the City's money. Gayle Bickford stated that Council has promised transparency however, as of last week's fiasco. calling a meeting with 24 hours' notice is not transparent. John Headding loves where he lives and loves the people of Morro Bay. What he has noticed is that there is a significant amount of divisiveness in Morro Bay right now. He knows about running organizations. he looked at the history of Morro Bay and found the Management 3 ' MINUTES - MORRO BAY CITY COUNCIL - SEPTEMBER 24, 2013 ® Partners Report from 2008 which he encourages everybody to take a look at. The community needs to come together; we can't be divisive. Bill Yates is chagrined and disappointed. In 25 years of coming to Council meetings; he has never seen crowds like this. These actions are shaking up the community. He told the majority Council. "you won, take the ball and run with it". He doesn't believe the Mayor should be putting things on or taking things off the agenda on his own. Rick Grantham announced the upcoming Thanksgiving Day Dinner being sponsored by the Police Officer Association and the Rotary Club of Morro Bay. The dinner is free of charge and is being held at the Community Center from 1-3pm. He thanked the many sponsors who make this dinner possible. Marianne Shoemaker applauded the way Council handled the last meeting. She was shocked by the hostility. She stated we needed to work together to find a way to make this work. She feels that with Mayor Irons at the helm; we have good leadership. Melody DeMerritt served on the Council from 2004-2008. She served on a polite and kind Council who treated each other professionally. There were dismissals during her tenure which were taken care of swiftly which is important. Mayor Peters would never have put up with the meeting that was held on September 12a. She requested that both Council and the public treat each other with respect. She stressed that the Mayor has every right to clear the room if ® necessary. Stan House stated that never in the history of Morro Bay has so few people done so much harm in such a short period of time. He can't believe that this is being proposed during the treatment plant issue. He feels this will be the most expensive lesson the taxpayers of Morro Bay have ever learned. Maurie Garza appreciates the transparency that Council promised the public. He thanked the current Council for doing the great job they've been doing. He stated that nobody but you know what the full story is, he is trusting that you will do the right thing. Chuck Stoll stated that the wastewater debate was the deciding factor for him in this recent election. Unfortunately there are 2 very strong factions here and we stand at a crossroads. The question is, are we going to support this Council and their decision. He stated the majority was elected without a runoff election indicating widespread support among those who cared to vote. He feels these 2 employees still harbor loyalties to the previous council and their supporters which was evidenced by the raise in their severance package after the election; if a majority of Council feels it's in the best interest to replace these 2 employees, then that is their right and prerogative. Dan. Costley stated he has worked for and served those that he has supported and those he hasan't supported; in all his involvement, he has never experienced the back room. outside ® influenced politics that he is seeing going on right now. Up to now. he has never been very vocal in our local politics but he is now and will continue to be. 4 MINUTES - MORRO BAY CITY COUNCIL- SEPTEMBER 24, 2013 ® Royal Martin spoke after witnessing the unruly public response to the September 12`h meeting. He supports Mayor Irons. A majority of the voters voted Mayor Irons into office which was a message that the public wanted change. If the removal of key staff members is necessary, so be it. That is the democratic process. Don Boatman supports the Council and in reference to the September 121h meeting, he saw several people call you a corporation you aren't; you are a democratically elected body. The people expect checks and balances from their government. Mayor Irons' goal of openness at City meetings has been great and putting the town on the right path for the water reclamation facility, using citizen involvement and advice, is getting us off to a good start. This is being balanced by the personnel decisions you are making. Keith Taylor said he only had 3 things to say to Mayor Irons and Councilmembers Christine Johnson and Smukler, "Shame on you'. John Solu stated that since Mayor Irons has delivered on his number 1 promise, getting the sewer plant moved, but at the same time, he has alienated our partner, the Cayucos Sanitary District. Lack of a partner could cost the citizens of Morro Baymillions of additional dollars. Now he is deciding to play HR Director and tonight he is asking for $12,500 for legal services to advise the City how to legally fire the top 2 executives which could cost the City an additional $500,000. He asked the Mayor if he knew what $500.000 can buy that would benefit the City of Morro Bay. He asked when Council is going to stop wasting our money. ® Jane Heath watched the September 12th public meeting and was appalled by the attacks. She stated that the Council gives selflessly and deserves our respect. These 2 employees are at -will and as such, serve at the pleasure of their employers. They can be let go for a good reason, for a bad reason or for no reason. As a Council majority, you have to trust that these employees can deliver on the objective that they were sent there to meet. Severance should never be a reason to retain an employee. It is now appropriate at this time to obtain an unbiased legal opinion for taking this action. Trudy O'Brien spoke voicing her concern for the actions being taken. These actions are causing turmoil and hostility, and this is causing unnecessary division in the City of Morro Bay. Jim Hayes, who was a candidate for City Council, didn't and still doesn't understand why anybody would want to lobby the Coastal Commission to subvert a project already in planning with the goal of paying to pump sewage to a location uphill, that has to be purchased, knowing it would be expensive and unwise. He believes, as a past City employee in the collections division, his thoughts and opinions are relevant. He feels he knows what you have in mind with the City Manager's position. If you are trying to build consensus, you are going about it all wrong. Bob Keller spoke out against the personal attacks and outburst that occurred at the September 12'h meeting. He feels we all need to show professionalism with your personal comments when you disagree. Our Council serves with the best interests of Morro Bay in mind, they are doing us ® a public service and deserve our sincere respect. In the past when there were decisions made he 5 MINUTES- MORRO BAY CITY COUNCIL -SEPTEMBER 24, 2013 ® didn't agree with, he didn't attack, he just voted. He realizes there are tough decisions to be made and he is in support of the Council. Lynda Merrill told the Council that there are plenty of people in support of your decisions. Unfortunately, some people can't face the truth. She told Mayor Irons that he needs to cane on with what you believe is best for the City. Garry Johnson announced that in 2014 we are celebrating Morro Bay's 50'h Anniversary. We live in a well-balanced, diversified community. If we have transparency, he doesn't see the need to fire these people — what's your reason? What are we going to gain? And who are you going to put up there? Ahmed Kassem is interested in how a voted out City Council can make financial decisions. The severance package and the power plant lease outflow decisions that were made with 3 out of the 5 Councilmembers who had been voted out. He would like to see democracy work better. He would like to see any newly elected Councilmembers seated right away and not have to wait. Marlene Owens said that there are things she has teamed being in business for many years. First and foremost, in your business dealings with your employees, you are responsible for their security, their financial security and their mental security. With this decision, you are going to be sending ripples of insecurity through the masses of City employees which could lead to an exodus of employees. ® Bill Peirce has been a part of Council's who have had to terminate City Managers. Council has had good service with both your City Manager and City Attorney. We'll let the people decide if they still support you, at this point, he stated that Mayor Irons has been served a Notice of Intent to Circulate a Recall Petition. Barbara Jo Osborne thanked Council as she voted for them. You run the City, you deal with it. The 2 department heads know they are at risk. This takes leadership, it's not a popularity contest — do what needs to be done — the faster you do it, the better. Kevin Rice can give multiple reasons why the City of San Luis Obispo City Manager should be fired. What are this Council's reasons for these firings? These people don't trust you; tell them why you are proposing these actions. Even if there is no legal cause, you should at least be able to say that you don't get along. He stated that the turmoil of a recall will cause a lot of grief and you should back down. Colby Crotzer stated that this is a democracy and the people who are elected will be able to pick their staff. When there was an initiative that passed that forced the primary, he didn't like it but it passed. When this Council was elected, they have to have a staff to work for them that will achieve the will of the people expressed by that election. Shoosh Crotzer stated that this Council was elected in a huge overwhelming majority. We really trust and want to empower you to do what you need to do. This isn't about whether people are nice or not. The idea that the last lame duck Council gave these folks extra severance pay that MINUTES - MORRO BAY CITY COUNCIL- SEPTEMBER 24, 2013 ® might cost the citizens of Morro Bay an extra S75,000 alone; could be one of the reasons you could even think about this action. Ron Burkhart stated for the record that the last speaker said that Janice Peters said that you were overwhelmine elected and Ms. Peters never said that. Dave Burton stated that change is hard and there are lots of changes going on in Morro Bay. He has professionally seen a lot of changes and growth. He has also had to fire people that were good, qualified employees but they didn't fit with the new vision and weren't part of the change. It is this Council's prerogative and also duty to question the status quo. He believes that Council will make the best decision for Morro Bay. Ken Vesterfelt asked a hypothetical question, given the fact that this could cost upwards of $500,000, what could be bought with that money. The morale at the Police Department isn't high. He is hoping the majority of the Council will think about the safety of the City when making this decision. Troy Leage stated he is a bit flabbergasted about how to speak on this subject. He is an employer who has worked from the grass roots up. Andrea Lueker has also worked from the bottom all the way up, who could be more qualified than that? Rethink what you are doing and look at support of Morro Bay. Both Rob Schultz and Andrea Lueker live and breathe Morro Bay; please recognize that and don't do this. Gary Owens thinks that one thing that Council hasn't considered that while it will cost S300,000- $500,000 to fire them, how much is it going to cost to replace them. The Council was elected by 25% of the voters, which leaves 75% to vote in a recall election or the primary in June. Roger Anderson stated he has sat in the Council chairs probably more years than all of you combined. When the need comes to dismiss someone, it's for reasons; maybe they aren't a good fit. But when people are a good fit, when there has been economic benefit; when they have demonstrated years and years and years of excellent service, there has to be reason for making changes. Bonnie Tognazzini asked what the Council was doing. She is totally distressed. We have 2 good City employees that have stood up for her and now she is standing up for them. Doug Pasley wanted to publicly state his vote of confidence for the City Attorney and City Manager. He would hope to see Council get along with the City Attorney and City Manager: There are much bigger things coming up, in fact he talked with Cayucos recently and he feels we need Andrea Lueker and Rob Schultz to help with the wastewater treatment plant facility move forward. We need to pull together right now. Hunter Kilpatrick stated that on September 12`s, the Mayor told Mr. Schultz that the intent of the special meeting was to call to question on their contracts. To call the question means it goes ® straight to vote without discussion. That didn't happen: instead it went to closed session and 7 MINUTES - MORRO BAY CITY COUNCIL- SEPTEMBER 24, 2013 E E Ll they discussed this matter. He doesn't see any report or any minutes of that vote being taken or the results of that vote. The Public Comment period was closed. A. CONSENT AGENDA Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION MEETING HELD ON SEPTEMBER 10, 2013; (CITY ATTORNEY) RECOMMENDATION:. Approve as submitted. A-2 APPROVAL OF THE CITY COUNCIL MINUTES FOR THE REGULAR COUNCIL MEETING HELD ON SEPTEMBER 10, 2013; (ADMINISTRATION) RECONMIENDATION: Approve as submitted. A-3 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION MEETING HELD ON SEPTEMBER 12, 2013; (ADMINISTRATION) RECOi•t 1ENDATION: Approve as submitted. A-4 PROCLAMATION DECLARING OCTOBER 2013 AS ENERGY AWARENESS MONTH; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-5 PROCLAMATION DECLARING OCTOBER 2013 AS RIDESHARE MONTH AND OCTOBER 9, 2013 AS INTERNATIONAL WALK TO SCHOOL DAY; (ADMINISTRATION) RECOi•I[MENDATION: Approve as submitted. A-6 APPROVAL OF ONE YEAR CONTRACT EXTENSION WITH MV TRANSPORTATION FOR MORRO BAY TRANSIT AND TROLLEY OPERATIONS AND MANAGEMENT; (PUBLIC SERVICES) RECOMMENDATION: Approve a one (1) year extension of the current Morro Bay Transit and Trolley Operations and Management Agreement with MV Transportation and authorize staff to prepare a Request for Proposals for the operation and management of Morro Bay Transit and Trolley services for release in August 2014 for award by Council in November 2014. P] MINUTES - MORRO BAY CITY COUNCIL- SEPTEMBER 24, 2013 ® A-7 OBTAIN OUTSIDE INDEPENDENT LEGAL COUNSEL TO ADVISE CITY COUNCIL ON CITY MANAGER AND CITY ATTORNEY CONTRACTS AND RELATED ISSUES; (MAYOR) RECOMMENDATION: Authorize Mayor Jamie Irons to obtain outside independent legal counsel for the purpose of guiding Council through any and all personnel matters of the City Attorney and City Manager. Mayor Irons opened up the public comment period for items on the Consent Calendar. Marla Jo Bruton requested Council pull Item A-3 from the Consent Calendar. She requested that she would like to see the public comment portion of those minutes appear like normal minutes, with content included; as well as be presented in chronological order. Joan Solu spoke on Item A-7 requesting Council not hire outside counsel for the recommended $12,500 to guide you through a process that is unnecessary. Nicole Dorfman supports the Mayors request for the money for outside counsel. We need neutral legal advice in this situation. Betty Forsythe stated that we should be looking for this outside legal counsel from the State of Arizona or Nevada. She doesn't think we can go to the State of California because of the bar ® association. y Carla Wixom asked that the Council not waste more of our tax dollars. use it for good things like paving our streets. Bridgett Kessling wants her tax dollars to go to something more worthwhile — police, fire, streets, etc. She hoped that Council was receiving public testimony with an open mind. Barbara Doerr stated that Council is currently sitting without legal counsel and as such, she supports the request to hire outside legal counsel. She believes that past Mayors and staff have left you with problems. She also believes this Council has done everything according to the Brown Act. Kevin Rice requested, in the spirit of adhering with full transparency; Councilmember Leage asked questions at the beginning of the meeting and he would like to hear those questions answered before public comment. Nattala Merzovan supports the current Council in their actions; she has nothing against the City Manager or City Attorney. William Welles is not here to talk about the S13,000, that's chump change. Who are going to replace these people with? You need to let the people know what is going on. 0 MINUTES - MORRO BAY CITY COUNCIL- SEPTEMBER 24, 2013 ® John Fennacy stated that there are always 3 versions of the truth - yours, mine and the truth. He previously spoke encouraging the Council to seek the advice of competent counsel; that time has passed. That should have been done before public session was held. There are better uses for this money. Everybody can probably say that if this Council stepped back and just said no, we aren't going to go forward with this, the respect and healing of the community would be immense. Phil Kispersky stated that truth isn't mean, ifs just the truth. That's all people want to hear, why does Council need to release these folks? And why do you then need S 12,500 for reasons you can't state? Stand up and speak the truth, then we «ill judge. Mike Tannler stated that Council is asking for money to engage outside counsel to get rid of 2 employees who recently had good reviews which could cost the City a half million dollars. A half million dollars could buy patrol cars, patrol vests, radios, fire equipment, training; etc. What is the benefit to him as a citizen to get rid of these people. he asked Council to vote no on Item A-7. Hunter Kilpatrick has had the pleasure of working with both Andrea Lueker and Rob Schultz and while they have not always agreed. he has never felt that he was treated with anything but fairness and respect. Both employees have always made decisions based on case history and City policy. Without justified cause or complaint, there is no reason to fire these employees. Anytime you vote for any expense, it is his money you are using, as a tax paying citizen. he does A not grant your permission to use his money to continue this matter any further. ® Melinda Elster worked to help elect the present Council because they were going to provide vision and leadership for our community. As such, she supports this desire to allow additional counsel to come on to help make sure as the City moves forward, everything is does accordingly. She hopes we can come through this as a community united, not divided. Abby Diodati looks to herself to unite; not to others. She hopes we can do this with class whether we have different opinions. She stated that any decision that Council makes about our City management is not made out of self -interests, but what is in the best interest of the community of Morro Bay as a whole. She trusts this is the Council that can take Morro Bay into the future. John Diodati supports the action to hire outside counsel for the personnel issue you have. He encourages those concerned about transparency to look at the Brown Act and read it; this Council is doing the right thing. Personnel matters under the Brown Act have considerable constraints that Councils have to work under. Nancy Bast stated that we finally have a Mayor and Council majority who are working for the entire community. She requested allocation of money for the outside counsel and she stated reasons why you should which include past mismanagement of money and the City's failing infrastructure. 10 MINUTES - MORRO BAY CITY COUNCIL - SEPTEMBER 24, 2013 ® Homer Alexander stated that the 3 Councilmembers will find out that the $12,500 will be pocket change when compared to the total cost of firing these employees. The cost to handle day-to-day legal questions while you recruit will add up. He is very familiar with the current budget, and there is no expense line item for a $500.000 termination, it will have to come from reserves. Based on these expenditures, he wouldn't count on any tax measure passing. Claire Grantham spoke in opposition to Item A-7. She is concerned that Council has already made up their minds so why pay another $12:000 to hire an attorney. We are all actively trying to raise money for our police dog program and you have no idea how hard it is to raise this money. To see you spend money this way is distressing. Just because you can, doesn't mean you should. Rick Grantham was very concerned about where the funding for all of this was going to come from. It comes from our emergency fund. What you are doing is taking the money that we depend on when we have a natural disaster, which we will one day; we will need this money and it shouldn't be used to hire an attorney to fire another attorney. He fought long and hard for this emergency fund when he was on Council and doesn't want to see it spent in this way. Carrie Burton supports this request by Council. It is well known that the flash mob antics is not the way the public feels about you. She stated that the actions of those from the last meeting were very troubling to her. She knows what has been done to her. She questioned how much monev the City has spent on outside counsel on other issues. ® Janice Peters questioned why the Council is asking to bring in outside counsel on an issue already heard and no action was taken on. She disputed charges that were brought up from public comment, the City lost 3 million/year with the plant was not allowed to remodel; we lost over 1 million when the fishing industry was regulated almost out of existence. This was not a result of a Council or these 2 people; you can't blame those losses on these 2 people. She finished by stating that you can't get a better recommendation than 27 years of service to this City. Lynda Merrill supports spending the money on outside counsel, and as soon as possible; we all need to move on. Gary Owens stated that if the Brown Act has been followed, why do you need outside legal counsel? Bill Yates questioned what the outside legal counsel is about; he fired 2 Cite Managers and Janice Peters was part of a Council that fired 2 City Managers and they never needed outside legal counsel. He stated that if we are going to pay $500.000, if there «ill be a slowdown of City services, if we are taking from reserves — I'm back. The reserves are there for an emergency, not to fund severance packages. Jim Pauley stated that this is the best City Council that he has ever seen. It is the fairest, the ® most progressive, the most above board that he's been exposed to. The $12,500 is chicken feed . compared to what other Councils have spent. 11 MINUTES - MORRO BAY CITY COUNCIL -SEPTEMBER 24, 2013 ® Bob Keller has nothing personal with anybody here tonight. He asked "what Council wouldn't go for outside counsel in a situation like this'. Rick Sauerwein spoke in support of the Council, in support of the citizens of Morro Bay and to speak in support of Andrea Lueker and Rob Schultz. He has worked here for the last 8 months and has seen firsthand how hard every member of the City staff works to support the agenda that you have set for this City. We've got a lot of different tasks ahead of us and don't need diversions that divide this community. We need 5 statesmen to stand up to unite people that will take us in a direction that will benefit everybody here. S 12.500 doesn't need to be spent in this community. Garry Johnson is not in support of hiring outside legal counsel. Also, if you hire by the hour, it will likely go longer and thus go higher. The public comment period for the Consent Calendar was closed. Mayor Irons pulled Items A-3 and A-7 from the Consent Calendar. MOTION: Councilmember Smukler moved the City Council approve Items A - I, A-2, A-4. A-5 and A-6 of the Consent Calendar as presented. The motion was seconded by Councilmember Leage and carried unanimously 4-0-1; Councilmember Nancy Johnson was not in attendance. ® A-3 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION MEETING HELD ON SEPTEMBER 12, 2013: (ADMINISTRATION) Mayor Irons questioned the City Clerk as to how the minutes of the Special Meeting of September 12. 2013 were prepared. City Clerk Jamie Boucher stated that when there was such an abundance of comment, it was common to prepare the minutes as presented. Councilmember Smukler requested the public to contact the City Clerk should they request their comment be specifically noted as opposed to summarized as a group. MOTION: Mayor Irons moved to continue this item and should the public wish their comments specifically stated, they should contact the City Clerk with that request. The motion was seconded by Councilmember Smukler and carried unanimously 4-0-1; Councilmember Nancy Johnson was not in attendance. A-7 OBTAIN OUTSIDE INDEPENDENT LEGAL COUNSEL TO ADVISE CITY COUNCIL ON CITY MANAGER AND CITY ATTORNEY CONTRACTS AND RELATED ISSUES: (MAYOR) Mayor Irons read a prepared written statement in which he stated that outside legal counsel was needed. Council needs independent legal advice as there is a clear conflict of interest with our City Attorney advising City Council and representing himself in this personnel matter. At ® Thursday's meeting, the City Attorney claimed that a Brown Act violation occurred: if that is true. Nye need outside legal counsel to cure, and correct that violation. We need outside legal 12 MINUTES - MORRO BAY CITY COUNCIL- SEPTEMBER 24, 2013 ® counsel to help facilitate proper legal procedures, maintain confidentially of personnel matters and to protect the City. I am asking for Council support to hire outside legal counsel. Councilmember Leage presented Council with a list of 10 questions to which he wanted answers to: -how did you determine $250/hr; -do you have a particular firm in mind; -how is the firm going to be picked, will there be an rfp; -what kind of firm are you considering: -how are you going to tell the public which firm has been hired; --what questions are we going to ask this outside attorney; -do you plan to bring this report back to an open session so the public can hear what's in the report; -are you the only person on Council that will be able to speak to this firm and if I have questions, how do I go about asking them; -where is the money going to come from; - what other budgeted item is going to be reduced to provide for this money? He wants answers to these questions. Councilmember Christine Johnson stated that in normal circumstances. A-7 wouldn't be needed. Over the course of the days since September I Ith and especially since September 12a1 we can agree that these aren't normal circumstances. At this point, we are looking at a situation that has been created where our in-house City Attorney can't represent his own interests in a situation we currently have, it is purely a matter of a conflict of interest. Looked at that way, it would be in the best interest of all of Morro Bay to go forward with Item A-7. Councilmember Smukler looks forward to having discussion about Mr. Leage's questions. He also stated we need to follow a process that ensures the employees' privacy as well as not expose ® the City to any further litigation or challenges. His hope is that we would be involved with this contract attorney specific to these questions. He looks forward to getting answers to the questions. Mayor Irons stated that obtaining legal counsel is the path to "why'. He has done some research and found that hourly rates for lawyers run between S150-250/hour. He has 3 firms in mind. Simas & Associates, Snyders & Associates, and Meyers, Widders, Gibson, Jones & Feingold. All 3 firms are municipal law and personnel law experienced. He plans to come back with a report as to who is hired. The outside counsel will be for the use of all City Councilmembers. The money will come from the Risk Management Reserve. And no other budget items will be reduced. Councilmember Christine Johnson requested a timeline to which Mayor Irons responded that if authorized, he would initiate contact with firms immediately, then work out the contractual details, then as soon as legal representation is available, we could proceed with noticing of meetings as soon as next week. Councilmember Christine Johnson then asked if each firm would submit a proposal that would be reviewed for Council to make this decision. Mayor Irons stated that he is proposing to make the decision to select the legal counsel. There was a request made to discuss as. to who would be selecting the outside counsel. Councilmember Leage hoped that it would at least be a committee of two Councilmembers in on the decision to obtain the outside counsel - one from the 'majority' and one from the 'minority'. ® People are uncomfortable with who may be brought in. 13 MINUTES - MORRO BAY CITY COUNCIL - SEPTEMBER 24, 2013 ® Councilmember Smukler stated that time is very important and that legal counsel is a key part of that. He thinks everyone would agree that we need move as quickly as possible. This is an extreme situation which would supersede our need for review. He is confident that this Council will act in an unbiased, open manner. Councilmember Christine Johnson thinks it's important to go out; her preference would be that a firm that has had any dealings with Morro Bay not be selected. She would like to see closure on this so she would be willing to talk about a compressed timeline and allow the Mayor to select the firm. Councilmember Leage is upset about this, as this outside counsel is going to be representing him as well. Councilmember Smukler agrees that we need to move on this process but at the same time, remain within the rules. He is in support of this. Mayor Irons stands by his request. He would also support a review of the .September 12`h meeting for any possible mistakes made. MOTION: Mayor Irons moved approval of Item A-7 with the stated recommendation and addition to review the September 12'h meeting. The motion was seconded by Councilmember Smukler and carried 3-1-1 with Councilmember Leage voting no and ® Councilmember Nancy Johnson not in attendance. B. PUBLIC HEARINGS - NONE C. U\TFN'ISHED BUSINESS C-1 PROJECT STATUS REPORT; (ADMINISTRATION) City Manager Andrea Lueker presented the staff report. Mayor Irons opened up the public comment period for Item C-1. Marla Jo Bruton requested the agendas be produced that give a clear definition of what the subject is. She also doesn't have a copy of the spreadsheet that listed the projects being discussed. She continues to have concern with the North Main Street trunk line. She feels it's a shame we haven't addressed this project. She produced a series of reports regarding the condition of collection lines throughout the City and there are 2 lines that have been a main issue of concern for her and it's a shame that this issue of possible contamination of sewage into the Morro Basin Aquifer hasn't been addressed. Richard Sadowski also stated that in reviewing the report and video tape, the 60/40 line continues to have breaks and leaks in them and nothing has been done. Raw sewage is leaking into Alva Paul Creek. Also, he's said it since 2007; the JPA needs to be revised. 14 MINUTES - MORRO BAY CITY COUNCIL- SEPTEMBER 24, 2013 ® The public comment period for item C-1 was closed. The report is for review and file. D. NEW BUSINESS D-1 APPROVAL OF CONSENT OF LANDOWNER AGREEMENT FOR LEASE SITE 96/96W (ROCCA'S, VAN BEURDEN) TO FILE .AN APPLICATION FOR LEASE SITE IMPROVEMENTS AND ALLOW STAFF TO ENTER INTO LEASE NEGOTIATIONS; (HARBOR) Councilmember Leage recused himself from the discussion due to the proximity of his property to the project location. City Manager Andrea Lueker presented the staff report. Project representative Cathy Novak spoke representing Stan Van Beurden for his project located at 945 Embarcadero. This lease site is one of the City's smallest. Add to that the extensive remodel undertaken by Mr. Van Beurden and there are limited opportunities for proposing a new project. As such, Mr. Van Beurden has proposed a plan which he believes will maximize the visitor servine uses and public opportunities for the site. This project proposes to add 173 square feet to the northern side of the building as well as reconfigure the existing western portion to ® create a new 590 square foot of dining area. Second, this project will look to relocate the trash enclosure inside the building which will free up the public walkway area. Other public benefits proposed include an improved public sidewalk from the Embarcadero to the Harborwalk along the park edge. In addition, this also proposes to construct a new angled access way from the park sidewalk to the existing public deck and Harbonvalk. Lastly, the project proposes new picnic tables in the park adjacent to the new sidewalk. Mr. Van Beurden is prepared to submit this project to the City and is respectfully requesting that the Council authorize staff to sign the consent of landowner form to begin the formal planning review process. Stan Van Beurden is currently developing the lease site known as Rocca's. The site is currently generating the maximum possible income seeing increases of revenue for the site grow from $12,000/year to almost $25,000/year. He stated that most Embarcadero lease holders are mom and pop type owners. Most of us have invested our lives. raised families and have been willing to pay back by reinvesting in the Embarcadero. Many lease holders take risks that most banks and financial institutions will not lend on due to restricted lease terms. What makes Morro Bay unique is the personalized service business owners provide. Many customers have been returning for generations. He feels that lease site information on the Embarcadero is very transparent. Any investment on the waterfront must be profitable to the investor or no one would be interested in investing here. The leases should reflect a fair and equal partnership. The emphasis shouldn't be on a set amount of money the leaseholder is required to spend but by how much the City will benefit by the investment. This particular site doesn't allow for any further improvements or additions as may be allowed by larger sites. He is more than willing to be a ® partner with the City and hopes we can make it work so that all can benefit. He hopes that this project will be moved forward tonight and negotiations can resume for the lease site. 15 MINUTES - MORRO BAY CITY COUNCIL - SEPTEMBER 24, 2013 ® Mayor Irons opened up the public comment period for Item D-1. Barbara Doerr stated that additional seating will be great. However she also feels that a 20 year lease extension for no reason at all is outrageous. She also feels that Anchor Park should be preserved. The public comment period for Item D-1 was closed. Councilmember Christine Johnson stated that the staff report and drawings is a good first step and first look at what's happening. Councilmember Smukler stated he can see the clear public benefit in the proposal as there are park improvements, removal of trash to a less visible area; as well as enhancement of public access to the waterfront area. He also likes the fact that the western side is being opened up maximizing the enjoyment of the view. He feels it would be beneficial for the Council to give staff leeway to work with these smaller lease sites as ultimately the final decision would come back to Council. Mayor Irons stated we are trying to brine sidewalks to 8 feet and should try to make this a goal with this project as well. He would like to see Rocca's stay but also feels the need to visit the sign ordinance with this location as well. He is in support of moving forward with this but would also like to look into the investment versus square footage versus return on investment. ® He suggested one of our local banks look at the proposal as it relates to return on investment. Councilmember Smukler is cautious about expanding beyond a 6 foot sidewalk as well as keep the options of the grass and what the park offers: Councilmember Christine Johnson is amenable to a 6 foot sidewalk and leaving the grass if possible; and. Mayor Irons thinks that an 8 foot sidewalk is the way to go. MOTION: Councilmember Christine Johnson moved approval of Item D-1, Alternative A. The motion was seconded by Councilmember Smukler and carried 3-0-2 with Councilmember Leage having recused himself and Councilmember Nancy Johnson was not in attendance. Councilmember Smukler wanted to restate the importance for us to be clear and give the leeway for staff to explore alternative lease terms based on size and constraints of the site. D-2 DISCUSSION ON ESTABLISHING A SUBCOMMITTEE TO MEET WITH THE OWNERS OF THE PROPERTY LOCATED AT THE SEC EMBARCADERO AND HARBOR TO DISCUSS POTENTIAL USES OF THE PROPERTY; (CITY ATTORNEY) City Attorney Rob Schultz presented the staff report. ® The public comment period for Item D-2 was opened. 16 MINUTES - MORRO BAY CITY COUNCIL- SEPTEMBER 24, 2013 Barbara Doerr agrees with staff that there isn't anything to do right now. Pam Craig stated it would be a conflict of interest to have a subcommittee if a project was being brought forward to the staff level. The public comment period for Item D-2 was closed. Councilmember Smukler says it's important to note that our intent was to In, and find a use of the property and put it to use for the community: he hopes that this project will fulfill that. Councilmember Leage stated that they have been talking about developing this property for quite some time and nothing has ever been done. There was Council consensus not to form a sub -committee. E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS Councilmember Smukler requested a discussion of and approval of a Resolution in support of participating in HERO — Home Energy Renovation Opportunity Program: Mayor Irons and Councilmember Christine Johnson concurred. ADJOURNMENT ® The meeting adjourned at 10:37pm. Recorded by: AW44--- Jkie Boucher City Clerk F] 17 MINUTES - MORRO BAY CITY COUNCIL - SEPTEMBER 24, 2013 City of Morro Bay 0 City Council Agenda Mission Statement The City of Morro Bqv 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 CLOSED SESSION MEETING THURSDAY, SEPTEMBER 12, 2013 CITY HALL CONFERENCE ROOM - 1:00 P.M. 595 HARBOR ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER SUMMARY OF CLOSED SESSION ITEMS — The Mayor will read a summary of Closed Session item. CLOSED SESSION PUBLIC COMMENTS — Members of the public may address the City Council on any matter that is listed on this Closed Session agenda. Unless additional time is authorized by the City Council; remarks shall be limited to three minutes. is THE CITY COUNCIL WILL MOVE TO CLOSED SESSION CS-1 GOVERNMENT CODE SECTION 54957(b)(1): PUBLIC EMPLOYEE DISC IPLINE/DISMISSALIRELEASE. The employees are the City Manager and the City Attorney. Pursuant to Government Code Section 54957(b)(2), the City Manager and City Attorney have requested that the complaints or charges be heard in an open session rather than a closed session. CONVENE TO OPEN SESSION — Announcement of reportable action from closed session; if any. DATED: September I I, 2013 Ja Boucher., City Clerk IN COMPLIANCE WITH THE AMERICANS WITH DISABILITY 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. U MINUTES — MORRO BAY CITY COUNCIL ® SPECIAL CLOSED SESSION MEETING — SEPTEMBER 12, 2013 CITY HALL CONFERENCE ROOM — 5:OOPM PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Leage Noah Smukler STAFF: Andrea Lueker Robert Schultz ESTABLISH QUORUM AND CALL TO ORDER Mayor Irons called the meeting to order at 1:OOpm. AGENDA NO: A-1 MEETING DATE: 1/14/2014 Mayor Councilmember Councilmember Councilmember Councilmember City Manager City Attorney MOTION: Mayor Irons moved to adjourn and continue this meeting to the Morro Bay Veteran's Hall at 269 Surf Street to begin at 1:30pm. The motion was seconded by Councilmember Smukler and carried unanimously. 5-0. The meeting adjourned at 1:O1pro. is The meeting reconvened at the Morro Bay Veteran's Hall and was called to order at 1:33pm. SUMMARY OF CLOSED SESSION ITEMS - The Mayor read a summary of the Closed Session item. CLOSED SESSION PUBLIC COMMENTS - Mayor Irons opened the meeting for Public Comment. Due to the large number of speakers. Mayor Irons limited public comment to I minute and requested that there be no applause. The following persons questioned the process and spoke in support of the City Manager and the City Attorney: Rob Kitzman. John Weiss, Stan House, Adrienne Harris. Rick Grantham, Darryl Scheck. Heather Salver -Frith. John Barta, Neil Trout, Vicki Landis, Kathleen Welles, Peter Candela, Mike Pond, Kevin Rice. Garry Johnson, Renee Sanmiengo, Bridgett Kessling, Al Romero, John Solu, Joan Solu. Sandy Christen, Jeff Eckles, Rodger Anderson, Jim Hayes; Susan Stewart, Homer Alexander, Marjory Rau, Trudy O'Brien. Todd Gailey, Bill Peirce, Janice Peters, Mike Durick, John Gajdos, Marlene Peter, Pamela Craig, Rick Algert, Rob Seitz, Lanny McKay, Ken Versterfelt, Smith Held, Jack Barrett, Bill Yates, Nancy Barta, Chris Christensen, Greg Wilson. Chris Frith, Penni Daugherty, John Fennacy, Bill Black, Cathy Novak, Hank Roth. Ken McMillan, Mick Theis. Bruce Keogh. Jeff Jones. Alex Beattie, Phil Kispersky, Rick Sauerwein, Bobbie Morrison, Paul Reicgardt, Cherie Hayes; and Stan Trapp. ® The following persons spoke in support of the process and in moving forward with discipline/dismissal/release of the City Manager and City Attorney: Rigmor, Clark Kuyler, Nancy Bast, Walter Heath, Nicole Dorfman, Jim Davis; Barbara Doerr, Lynda Merrill; Betty Forsythe, Marla Jo Bruton and Betty Winholtz. As there were no presented charges or complaints against the City Manager or the City Attorney. ® per Government Code 54957(b)(2), the City Council moved to Closed Session and heard the following item: CS-1 GOVERNMENT CODE SECTION 54957(b)(1): PUBLIC EMPLOYEE DISCIPLINE/DISMISSAL/RELEASE. The employees are the City Manager and the City Attorney. CITY COUNCIL CONVENED TO OPEN SESSION — The City Council convened to open session; Mayor Irons reported out that no actions were taken at this time. ADJOURNMENT The meeting adjourned at 4:50pm. Recorded by: Aamie Boucher City Clerk El ® 2 MINUTES - MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING -SEPTEMBER 12, 2013 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 CLOSED SESSION MEETING TUESDAY, SEPTEMBER 10, 2013 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER SUMMARY OF CLOSED SESSION ITEMS — The Mayor will read a summary of Closed Session items. CLOSED SESSION PUBLIC COMMENTS — Members of the public may address the City Council on any matter that is listed on this Closed Session agenda. Unless additional time is authorized by the City Council, remarks shall be limited to three minutes. THE CITY COUNCIL WILL MOVE TO CLOSED SESSION CS-1 GOVERNMENT CODE SECTION 54956.8: PROPERTY TRANSACTIONS: ® Instructing Citv's real property negotiator regarding the price and terms of payment for the purchase, sale; exchange. or lease of real property as to one parcel. • Proper-: Lease Site 30W-33W; Bay Front Marina, Water Lease Adjacent to 201 Main Street Negotiating Parties: Coakley and City of Morro Bay Negotiations: Lease Terms and Conditions CS-2 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 following employee organizations and giving instructions to the Designated Representative: Police Officer's Association (POA), Management and Confidential Employees. CONVENE TO OPEN SESSION — Announcement of reportable action from closed. session, if any. DATED: September 5, 2011 ana Swanson, Deputy City Clerk ® IN COMPLIANCE WITH THE AMERICANS WITH DISABILITY ACT. IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING. PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. ® MINUTES — MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING — SEPTEMBER 10. 201J CITY HALL CONFERENCE ROOM — 5:00PM PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Lease Noah Smukler STAFF: Andrea Lueker Robert Schultz Eric Endersby ESTABLISH QUORUM AND CALL TO ORDER AGENDA NO: A-1 MEETING DATE: 9/24/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager Citv Attornev Harbor Director SUMMARY OF CLOSED SESSION ITEMS - The Mayor read a summary of Closed Session items. CLOSED SESSION PUBLIC COMMENTS - Mayor Irons opened the meeting for Public ® Comment Jay and vlereline Coakley of 201 Main Street provided information regarding planned improvements for Lease Site 30W-33W and asked Council to consider a new long term lease agreement. The Public Comment period was closed. The City Council moved to Closed Session and heard the following items: CS-1 GOVERNMENT CODE SECTION 54956.8: 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 parcel. • Property: Lease Site 30W-33W; Bay Front Marina, Water Lease Adjacent to 201 Main Street Negotiating Parties: Coakley and City of Morro Bay Negotiations: Lease Terms and Conditions CS-2 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 following employee organizations and giving instructions to the Designated ® Representative: Police Officer's Association (POA), Management and Confidential Employees. ® CITY COUNCIL CONVENED TO OPEN SESSION — The City Council convened to open session; City Attorney, Rob Schultz reported that no reportable action under the Brown Act was taken. ADJOURNA/IENT The meeting adjourned at 5:50pm. Recorded bv: �a-�-Say--- Dana Swanson Deputy City Clerk MINUTES- MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING- SEPT. 10, 2013 City of Morro Bay ® City Council Agenda Mission Statement The City of Alorro 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 TUESDAY, SEPTEMBER 10, 2013 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 CLOSED SESSION REPORT MAYOR & COUNCILMENIBERS' REPORTS. ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS - None ® PUBLIC COMMENT - Members of the audience wishing to address the Council on City business matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda. but unable to stay for the item, may also address the Council 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 anv 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 Citv 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 AGENDA ® Unless an item is pulled for separate action by the City Council. the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION MEETNG HELD ON AUGUST 27, 20L3: (CITY ATTORNEY) RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF THE CITY COUNCIL MINUTES FOR THE REGULAR COUNCIL MEETING HELD ON AUGUST 27, 2013; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. B. PUBLIC HEARINGS - NONE C. UNFNISHED BUSINESS C-1 STATUS REPORT OF A MAJOR MAINTENANCE & REPAIR PLAN (MiVIRP) FOR THE EXISTING WASTEWATER TREATMENT PLAN; (PUBLIC SERVICES) RECOMMENDATION: Receive, review and file this report. ® D.. NEW BUSINESS D-I REVIEW OF THE ECONOMIC DEVELOPMENT PROGRAM AND ASSOCIATED SCOPE OF WORK; (ADMINISTRATION) RECOMMENDATION: Review the Economic Development Program and accompanying Scope of Work as is contracted with the Morro Bay Chamber of Commerce and provide direction to staff. D-2 DISCUSSION OF A VOLUNTEER BUDGET REVIEW SUB -COMMITTEE; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Direct staff accordingly. D-3 DISCUSSION AND RECOMMENDATION ON THE PROPOSALS RECEIVED FOR THE SUBLEASE OF 307 MORRO BAY BLVD.; (ADMINISTRATION) RECOMMENDATION: Review the recommendation from the Proposal Review Team and award the Sublease of 307 Morro Bay Blvd to Grandma's Frozen Yogurt and Waffle Shop at the Gathering Place, submitted by Lenny A. and Beverly J. Ford- Durrer. D-4 AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSAL (REP) FOR A RATE ® STUDY FOR WATER & SEWER RATES; (PUBLIC SERVICES) RECOMMENDATION: Prepare and issue an RFP and award a contract for the analysis of Water and Sewer rates for potential adjustments, in accordance with the ® City's Consultant Hiring Police. D-5 DISCUSSION ON POTENTIAL REVENUE BALLOT MEASURES FOR THE JUNE 2014 ELECTION INCLUDING A SALES TAX. PUBLIC UTILITIES USER TAX_. TRANSIENT OCCUPANCY TAX. AND 911 TAX: (CITY ATTORNEY) RECOMMENDATION: Review this report and the available options for revenue ballot measures and appoint two members of the City Council to select an ad hoe Citizen Committee to help craft ballot language to place on the June 2014 Election. D-6 UPDATE ON THE STATUS OF THE PAVEMENT MANAGEMENT PLAN (PMP): (PUBLIC SERVICES) RECOMMENDATION: Review and discuss this status report. D-7 RESOLUTION NO. 47-13 CONFIRMING THE CITY OF MORRO BAY'S PARTICIPATION IN THE COMMUNITY CHOICE AGGREGATION (CCA) FEASIBILITY STUDY AND APPONTMENT OF AN INDIVIDUAL TO THE CCA EXPLORATION ADVISORY COMMITTEE (CEAC): (ADMINISTRATION) RECONEMENMATION: Consider participation in the CCA feasibility study and adopt Resolution No. 47-13 recommending the City Council appoint an individual to serve ® on the CCA Exploration Advisory Committee (CEAC). D-8 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS AND DISCUSSION: (ADMINISTRATION) RECOMMENDATION: Discuss in open session, the progress to date on the Water Reclamation Facility (WRF) and provide direction to staff as necessary. E. COUNCIL 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 7 72-6205 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 COUiNNCIL REGULAR MEETING — SEPTEMBER 10. 2013 ® VETERAN`S MEMORIAL HALL — 6:00P.1k1. PRESENT: Jamie Irons Christine Johnson Nancv Johnson George Lease Noah Smukler STAFF: Andrea Lueker Robert Schultz Jamie Boucher Steve Knuckles Susan Slavton Eric Endersby Joe Woods Rob Livick Mayor Irons called the meeting to order at 6:00 p.m. AGENDA NO: A-2 MEETING DATE: 9/10/2013 _ Mavor Councilmember Councilmember Councilmember Councilmember City Manager Citv Attomev Citv Clerk Fire Chief Administrative Services Director Harbor Director Recreation & Parks Director Public Services Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE ® PLEDGE OF ALLEGIANCE CLOSED SESSION REPORT — City Attorney Robert Schultz reported that City Council met in a Special Closed Session on September 10. 2013 on the following items: Government Code Section 54956.8: 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 parcel: Lease Site 30W-33W, Bav Front Manna: and. Government Code Section 54957.6: Conference with Labor Negotiator: Conference with Citv Manager, the Citv's Designated Representative. for the purpose of reviewing the City's position regarding the terms and compensation paid to the following employee organizations and giving instructions to the Designated Representative: Police Officer's Association (POA), Management and Confidential Employees: no reportable action under the Brown Act was taken. MAYOR AND COUNCILMEMBERS' REPORTS._ ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS PUBLIC COMMENT The local business presentation was made by Jon Greisser, the Executive Director of the Central California Seafood Marketing Association (CCSivI.A). CCSM.A is a non-profit fisherman's co- op marketing association based in Morro Bay who hopes to bring high quality, locally harvested wild seafood to consumers, protecting the health and productivity of fish stocks and habitat and to help stabilize fishery activity and business in Morro Bay. They currently represent six vessel owners and operators located in Morro Bay and Half Moon Bay. Their mission is to build value ® and security for their members. their local fishing operations and their seafood products. Their goals are to build a strong foundation for an association with sufficient opportunity to be enduring. efficient and effective: build regional recognition, demand and value of association and member brands and products: and build mid to long term security in the fishery for current and prospective association members. They currently participate in the Morro Bay Chamber of Commerce's Business Incubator Program which allows them subsidized office space, office equipment and supplies, support and access to resources and business counseling for start-up businesses. Thev have appreciated all the help that Lisa. Hank. Craig and John have been able to live them. Robert Davis announced the upcoming Annual Lighthouse Century 2013 on Saturday, September 28 h. The event begins at Morro Bav High School at 7:00am and is a fundraising event for many programs including our very own Morro Bav Community Police Services as well as Morro Bav High School. They are working diligently with the local community and law enforcement to make this a safe event. Nicole Dorfman alone with her sons Avery and Eli voiced her support for a Resolution that would enable Morro Bay to choose a large percentage of renewable sources for our electric power. She believes we need to keep moving away from being a society dependent on fossil fuels and to be more reliant upon renewable energy. John Solu played a 30 second commercial advertising the upcoming Harbor Festival. There will be an ovster eating contest. Hawaiian t-shirt contest. vendors, beer and wine. incredible food and ® music. Advance tickets can be purchased at the Harbor Festival office or Albertsons for S8 or they will be $10 at the door. He reminded Council that they talked about and financially helped the Morro Bay 4"' with their event: the Harbor Festival committee has also requested Citv financial support and as of the present, hasn't heard anything back. And finally. regarding Item D-5, he hopes that Council does not look to increase the City's TOT tar. He realizes there is a road problem but the tourists and tour busses don't drive the streets slated to be fixed and as such. shouldn't be footing the bill. E Garry Johnson presented a history of Dahlia Days. This annual event was held over the weekend and was a huge success. He thanked the City and Recreation & Parks staff for all the help they gave. Also. the 50'h Year Anniversary is coming up and he continues to look for historical pictures Jan Watson commented on Item D-7. She recommends that Council vote no to join the CCA as we already have viable sources of energy with Diablo and the solar plant in our County supplying our energy needs. She feels this is a power controlling organization that will eventually eliminate all fossil fuel resources used for energy. She also feels this program would be taking away our freedoms of choice: she agrees we need to curb our use of fossil fuels but not at the risk of destroying our whole society. Lynda Merrill spoke about the street work that has just been completed in her neighborhood, around San Jacinto. She feels a dangerous situation still remains. She would like to get a traffic MINUTES - MORRO BAY CITY COUNCIL - SEPTEMBER 10, 2013 engineer to get parking off of San Jacinto and moved back to the side streets as well as realign the street where it used to be. Loren Leidinger spoke as a representative of the American Red Cross. She mentioned that thev have had a presence in San Luis Obispo County since the 1880's and their mission is to help families whose lives are affected by fires, floods and other disasters that affect their ability to live in their homes. She also presented the City Manager and the City Council with a copy of the MOU with California Emergency Management Agency, now called the Office of Emergency Services, which outlines what their role is in a disaster situation. Linda Seeley. a San Luis Obispo resident, spoke for Mothers for Peace. She stated that the San Luis Obispo Chamber doesn't have any informational brochures available regarding Diablo for their tourists and hopes we make it a point to have brochures available in the case of an emergency. She also hopes there is signage inside of hotel rooms in case there is a release of radiation. She also spoke on Item D-7 stating that energv independence is what the CCA is all about. It allows for a broad choice and hopes we will endorse the CCA and send an individual to the CCA Advisory Board. Dan Glessman spoke on Item D-5. He stated he enjoys living in a City that provides quality services, police and fire are good examples of that. He also stated we do have a defect that needs to be fixed: it's in our streets which are an expensive piece of our infrastructure. He added that we won't ever get ahead of the problem unless we invest $900,000 a year for the next 15 years. He suggested the possibility of borrowing money to fix all the streets which would allow Public Services to bargain for better pricing and delivery: pass a half cent increase to local sales tax for ® this repair, make sure that this or any new revenue source have a sundown clause so that it will go away after the loan is paid off. Tourism is a key_ source for revenue in Morro Bay: as such, he hopes we don't raise the TOT. u Bonnie Crawford. employee at Sweet Offerings, a new business featuring homemade candies and ice cream spoke in opposition to the City negotiating a contract with the selected business for 307 Morro Bav Blvd. They feel the selected business would considerably impact their business who has already invested a lot of money and time into their location. Nancy Castle announced there will be a BBQ and Concert this coming Saturday. September 14t' at St. Peter's Church beginning at 2pm. The concert will feature Jody Mulgrew and Gary Garrett and starts at 7pm. Dana Gibson supports the Council's participation in the exploration of the CCA. She hopes that the Resolution passes as it would be wonderful to have clean energy sources, we wouldn't have to worry about nuclear disasters. we could take the stacks down. and we could slow down on climate change and hopefully keep the money local to help us with our own renewable energy Tavlor Newton thanked Nancy Johnson and Janith Goldman for involving the Guerilla Gardner's in the Dahlia Daze event. It was a wonderful event and they loved being a part of it. 3 MINUTES- MORRO BAY CITY COUNCIL -SEPTEMBER 10, 2013 Phil Kaspersky spoke on Item D-7 stating that he doesn't believe it's the government's place to make these decisions for us. He doesn't think people should be put in a place where those ® choices have already been made. He urged people to think about the horrible storms that we have had in the past: what about the PG&E employees who were the ones sent out to ensure we kept our power? Christine Rogers shared a new EVC program with the Council. For a short period, they are offering a group purchasing program for solar systems. EVC will also provide educational programs on the topic: the program will run through November I". Nlavor Irons closed the public comment period. Public Services Director Rob Livick commented on the situation on San Jacinto stating that staff is looking and evaluating a couple of different solutions to restriping the area. He also reiterated that the area has a speed limit of 25 miles per hour. It was also mentioned that Councilmembers Christine Johnson and Smukler as well as the Police Chief, Public Services Director and City Attomev are working towards alleviatin-Ofising the problem. A. CONSENT AGENDA Unless an item is pulled for separate action by the City Council. the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION ® MEETING HELD ON AUGUST 27. 20L3: (CITY ATTORNEY) RECONEVIENDATION: Approve as submitted. A-2 APPROVAL OF THE CITY COUNCIL MINUTES FOR THE REGULAR COUNCIL MEETING HELD ON AUGUST 27, 2013: (ADMINISTRATION) RECONLVfENDATION: Approve as submitted. Mayor Irons opened up the public comment period for items on the Consent Calendar: seeing none, the public comment period was closed. MOTION: Councilmember Nancv Johnson moved the City Council approve Items A- 1 and A-2 of the Consent Calendar as presented. The motion was seconded by Councilmember Christine Johnson and carved unanimously 5-0. B. PUBLIC HEARINGS - NONE C. UNFINISHED BUSINESS C-1 STATUS REPORT OF A MAJOR MAINTENANCE & REPAIR PLANT (MViRP) FOR THE EXISTING WASTEWATER TREATMENT PLAN: (PUBLIC SERVICES) d MINUTES - D1ORR0 BAY CITY COUNCIL- SEPTEMBER 10. 2013 Public Services Director Rob Livick presented the staff report. ® Mayor Irons opened up the public comment period for Item C-1; seeing none; the public comment period was closed. Councilmember Leage stated that there seems to be a lot of concern about how much we are fixing up this plant which concerns him. How much money and what would it take to bring it up to secondary? Mr. Livick stated that for the plant at this site to meet secondary requirements, would require a structure/buildine to be constructed which would require a Coastal Development Permit which would inevitably be appealed to the Coastal Commission and we are quite certain how that would turn out. Given that. this site wouldn't be appropriate for secondary use. The report is for review and file. D. NEW BUSINESS D-1 REVIEW OF THE ECONOMIC DEVELOPMENT PROGRAM ,AND ASSOCIATED SCOPE OF WORK: (ADMINISTRATION) City Manager Andrea Lueker presented the staff report. Mayor Irons opened up the public comment period for Item D-1. ® Jon Greisser stated they were the first members of the Chamber's Incubator Program. As part of its mission and charge; they provide office space, supplies, office equipment, support, and access to resources and business counseling for start-up businesses. They moved in May and the Chamber has been very helpful in the transition. Susan Stewart stated that the Chamber Board is fully supportive of CEO Craig Schmidt and excited about the future of the town. She emphasized the decision by Citv leaders that an economic and business development program is an important goal for the community, demonstrates insight and recognition that a strong local economy must be supported at the'civic level. The Chamber Board believes strongly in the work of the Economic Development Program and supports those who are providing the resources and expertise to make this a viable program. This is a worthy investment in our community as well as an opportunity to provide organized business outreach; support and recruitment. The public comment period for Item D-1 was closed. Chamber CEO Craig Schmidt stated that their goals remain the same — gather information and data useful to the current business community and prospective new businesses; business retention and expansion. taking care of the businesses already here: and; new business recruitment to fill vacancies in our community. Thev have and continue to gather data relevant to demographics; commercial property inventory. retail sales gap analysis, event economic ® impact analysis, providing new business recruitment packets, and preparation of an Event 5 MINUTES-,MORRO BAY CITY COUNCIL -SEPTEMBER 10.2013 Planners Guide. To date they have met with 88 businesses to offer assistance. they will be making 20 business visits per month. they will be conducting in-depth business surveys with 100 Morro Bay businesses. and they will be providing information from those surveys in spring of 2014. They have also developed a listing of vacant commercial property, they have developed a list of desired businesses from the retail survey, they have reached out to Fresno and Bakersfield Chambers to identify businesses that may want a satellite location in Morro Bay and have worked with 15 businesses expressing a desire to relocate in Morro Bay of which 3 are up and running and 12 are on the active list. He also went on to say that Entrepreneurial Development — erowine our own businesses in Morro Bay is vital. Over 20% of the Morro Bay workforce is self-employed. He feels that with proper professional assistance, the failure rate of those businesses can be turned around after 5 years. He finished by saving that the Morro Bay Business Center is fully functional. there are 2 active incubators usine the Business Center. the business coaching team is in place, the new advisory council will resume meeting monthly, and they are lobbying the state to support Cuesta College. their most important training partner to provide more dollars for entrepreneurial development. Councilmember Smukler asked about the Shop Local program to which Mr. Schmidt answered that it is a joint project with the Tourism Bureau whose components focus on 4 different retail areas: Quintana, No. Morro Bay, the Embarcadero and the Downtown area. Each will have its own event that creates an awareness of the shops in the area. The kick-off is slated for the end of October. Councilmember Christine Johnson pointed out, from the report, that clear monthly reporting on increased sales tax and new start-ups and businesses attracted or retained will be the primary ® reporting focus. Tonight they have received a lot of information regarding the incubator program which has been really important and can also be used as a great recruitment tool. Ws also important to point out that an incubator business isn't supposed to fill a large commercial space in the first 6 months: we need to see where and how things develop over time. She feels it's important to get out word about filling the empty commercial spaces. ivir. Schmidt stated that they aren't looking at filling individual vacant spaces but instead putting together materials that will represent all the vacancies in town. Mayor Irons stated that the Council is very supportive of Economic Development. He asked for this to come forward as he felt that considering the change that transpired, and for him, it wasn't communicated very well which led him to believe the community might feel there was some instability. To ignore that might make people think Council wasn't in support of the program. This hopefully tells the community that Council is still very supportive of the program. Councilmember Nancy Johnson is a very strong supporter of this program. She would also like to recommend that the Chamber provide a brief monthly report providing numbers such as how many business packets have gone out. how many contacts/interactions have been made, how many referrals have been made. etc. Councilmember Smukler liked that idea and hoped that it would be a brief and simple report so it wouldn't take a whole lot of Craig's time but does allow for us keeping aware of what is 11 MINUTES - MORRO BAY CITY COUNCIL- SEPTEMBER 10, 2013 occurring as well as allows the Chamber to let the City know if help is needed. It will also help ® at budget time to have these performance reports. This report is to be received and filed only. D-2 DISCUSSION OF A VOLUNTEER BUDGET REVIEW SUB -COMMITTEE: (.ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton presented the staff report. The public comment period for Item D-2 was opened: seeing none, the public comment period was closed. Councilmember Leage doesn't see anything wrong with what we are doing right now and is against forming this committee. He went on to say that staff is already overloaded; they don't need to also become teachers. Councilmember Christine Johnson realizes this may not be a popular idea with staff but the City's Major Goal 75 is to Ensure Sustain Fiscal Responsibility: and, action plan, key task 'c' - continue with budget workshops to include more information and detail as well as a glossary and `e' - to evaluate the concept of a budget subcommittee. are being met. She disagrees with staff where it states that currently there is significant amount of input from people with expertise in finance without the benefit of a formal subcommittee. She didn't see this during the budget process. It is the citizen's money and we are obligated to make time to hear what they have to ® say. She is in full support of creating a budget subcommittee and thinks the City of Benicia has a good and simple outline to follow. 40 Councilmember Nancv Johnson agrees with Councilmember Leage. She feels she has received wonderful and detailed advice from citizens and is happy with the informal way that citizens help. If the majority of Council chooses to go with this. she hopes that each Councilmember is allowed to nominate somebody to the committee. Councilmember Smukler is in support of moving forward to look at how a committee could help look at priorities and strategize as well as look at other revenue generating opportunities as we move forward. He feels that we should start with a committee that is simple and build on that. He also feels that we have amazing expertise in this town willing to help out. Mayor Irons is in support of this as well. There is always the opportunity, if there are successes we can build on it. if it's not working or taking too much staff time. we can recognize that and act accordingly. MOTION: Councilmember Christine Johnson moved to approve the formation of a Citizen's Finance Committee and direct staff to prepare and bring back for Council consideration the following key elements for the Committee: mission. duties, structure, and scope of work; and Council to direct staff to use the cities of Benicia and Piedmont as guiding documents to create a working document for Citizens Finance Committee in 7 MINUTES - MORRO BAY CITY COUNCIL - SEPTEM BER 10. 2013 the Citv of Morro Bay. The motion was seconded by Councilmember. Smukler and carried 3-2 with Councilmembers Nancy Johnson and Leage voting no. ® D-3 DISCUSSION AND RECOMMENDATION ON THE PROPOSALS RECEIVED FOR THE SUBLEASE OF 307 MORRO BAY BLVD.; (ADMINISTRATION) Ciry Manager Andrea Lueker presented the staff report. Applicant Beverly Ford stated that she wanted this business location to be an interactive gathering: she has received the help of Taylor Newton who has agreed to landscape, she has spoken with local musicians who have agreed to play, and there will be board and card games. The Chamber and Merchant's Association have been her biggest cheerleaders. She is also proud to be able to offer the public restroom as well as a bike parking area which will allow for anybody to park there and be able to shop and eat downtown. Mayor Irons opened up the public comment period for Item D-3. Barbara Doerr is amazed at the wonderful collaboration efforts. She urged Council to approve. Susan Stewart thanked evervbody for the restroom: she feels this is a great choice as it brings more life and vibrance to the downtown area. Taylor Newton stated that the whole club is behind this. He appreciates working with local businesses in the community that allow for sustainable partnerships with their club. He also ® appreciates a business coming forward that allows his club members to explore their arts. He thanked the City for creating this opportunity. The public comment period for Item D-3 was closed. Councilmember Christine Johnson said it was a pleasure to work on this committee and that every idea was a great one. She is also very supportive of the businesses not selected and hopes thev work with the Chamber in an effort to find a commercial space for them somewhere as it would be great to have all of those businesses in Morro Bay. This is also meets a Major City Goal =7 Improve City Infrastructure, key task e — Determine Downtown Restroom Feasibilitv. Her efforts were focused on whose business would be able to keep the restroom open as a public restroom. She is impressed with their research efforts, of their business model and their collaboration in creating this concept of the Gathering Place. Councilmember Nancy Johnson thoroughly enjoyed being a part of the process. She also stated that Craig was a part of the committee so he will be able to contact those businesses not selected for other possible locations or to participate in the incubator program. She is very impressed with the time that Grandma's put into the process and is looking forward to approving this. Councilmember Smukler stated it is important to recognize the public comment made earlier but that each proposal had the possibility of having competition with another business in the area. Grandma's is providing a great public benefit. He is glad to see that the Chamber will be ® contacting the other businesses. He would like to talk about possible escalators to the rent to 8 MINUTES - MORRO BAY CITY COUNCIL - SEPTEMBER 10, 2013 keep up the City's escalators with the owner. Mr. Schultz stated that that was a topic for Closed Session. ® MOTION: Councilmember Nancy Johnson moved approval of Item D-3, directing staff to negotiate a sublease agreement for the sublease of 307 Morro Bav Blvd with Grandmas Place. The motion was seconded by Councilmember Leage and carried unanimously. 5-0. D-4 AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSAL (RFP) FOR A RATE STUDY FOR WATER & SEWBR RATES: (PUBLIC SERVICES) Public Services Director Rob Livick presented the staff report. The public comment period for Item D-4 was opened. Barbara Doerr posed some questions to Council regarding the funding of the WRF. Can the City use TOT or other tax measures to help pay for the WRF in an effort to help subsidize everybody equally? The public comment period for Item D-4 was closed. Mayor Irons stated that this staff report came to Council back in March of this year. Those minutes stated that this item was requested to be brought back and include a history of why we would go 20 vears without adjusting water rates as well as what a rate policy would look like. ® This report doesn't have anv of that data in it which troubles him. We need to come up with policy where we are proactively reviewing things. Before we go to an RFP. those questions need to be answered. Councilmember Christine Johnson looked at the ivlarch 26 h minutes as well and feels we need to die in and lav out for the community as to why we haven't raised water rates in the last 20 years. She would love to see some historical analysis. doesn't have to be very detailed, maybe times and dates of when things were brought forward and what the decisions were. It would be helpful to her when she makes big decisions on rates. She would like to know the thought processes that previous Council's went through and how thev struggled with it. City Attorney Rob Schultz stated that 20 years ago when the City raised its rates. we had to fund State water and subsequently the desalination plant. It was only until approximately 5 years ago that the City found itself "behind the curve' financially; we hadn't been behind prior to that. It is his recollection that water rate discussions have come forward 2 or 3 times but there was never political support and so was never moved forward. Councilmember Smukler agreed that the previous Council did discuss this issue but never came to anv agreement. He feels it is very important in moving forward to present the community the justification of why we need this as well as provide the implications of what happens if this isn't done. He too feels we need to provide the history that has brought us here, to take a little more time t6 work through this. and then make the decision as to what the rate study needs to ® accomplish. 9 MINUTES - MORRO BAY CITY COUNCIL - SEPTEMBER 10. 2013 Mayor Irons read an excerpt from the March 26 s minutes that stated "there should be more information, historical information, rate comparisons with other cities. as well a more detailed breakdown of our costs and expenses, and how our water and sewer rates tie together". The community needs to be educated as to why our water rates are where they are and why it took 20 years for us to address it. We need to look at a policy to address this issue and shouldn't be so quick to go out to RFP with this. Councilmember Smukler agrees feels there needs to be more work done internally to present the justification information discussed at the previous meeting. He also feels it's important to present historical information regarding expenditures in both the water and sewer funds and how they've been managed so far. Mayor Irons also feels that the RFP can be worked on simultaneously so that it is ready_ to be sent out as soon as the historical information is presented at a future meeting. Councilmember Christine Johnson is interested in what the historical thought process was, it isn't important who said what or when but instead. what was said. Councilmember Smukler would also like to know where our rates stand in comparison to other cities in the County. This item was continued and is to be brought back with the information requested. D-5 DISCUSSION ON POTENTIAL REVENUE BALLOT MEASURES FOR THE JUNE ® 2014 ELECTION INCLUDING A SALES TAX. PUBLIC UTILITIES USER TAX. TRANSIENT OCCUPANCY TAX, AND 911 TAX; (CITY ATTORNEY) 2 City Attorney Rob Schultz presented the staff report. Councilmember Leage is very much against increasing the TOT tax: he would rather see us look at bringing businesses into town to increase business revenues. If he had to select a revenue measure to support, it would be the sales tax. The public comment period for Item D-5 was opened. Barbara Doerr stated that any new tax should only go to the new WRF as it is the biggest project. She hoped that residents would be treated as intelligent voters and wants to see everything put out there at once. The City has had success with sales tax because they were up front with what they were asking for. She said she wouldn't support a Utility User Tax as it would have to be addressed every year. She would support a TOT tax increase. She hoped they wouldn't look at an assessment tax. The public comment period for Item D-5 was closed. Mayor Irons stated that this item came forward from the results of a Councilmember request as well as results of the Street Summit. For him. this is driven by the community and the 10 MINUTES - MORRO BAY CITY COUNCIL -SEPTEMBER 10, 2013 community wants to pave streets. He would be in support of a specific sales tat initiative dedicated to streets just as proposed through our PWAB Board. Councilmember Christine Johnson agrees with the Mayor as Streets is the City's Y2 Major Goal. She has had many conversations with residents and based on those, can only support a tax to fix our streets and she is looking at a general sales tax as the tax to move forward with as it makes the most sense and would generate the most monev. She is also looking for the public's input as to whether or not there would be support for this. Councilmember Nancy Johnson is not in favor of any of the taxes. She would much rather see a stronger, non -tourist economic base. That being said. the Citv does need the money and the only tax measure she could support is a sales tax. She felt that if we raised the TOT to 14 or 1 5%. it would discourage tourists from coming staying. A sales tax measure is fairer as it hits both residents and tourists. She would like to see an ad -hoc committee formed_: she feels that one of the reasons that the Measure Q was so successful was through the work of that ad -hoc committee. Councilmember Smukler stated the only revenue measure he could support is a sales tax measure. An increase to the TOT wouldn't be favorable to our market. He encouraged staff to continue to work with the Tourism Bureau to ensure their marketing and management is effective:_ he also stated that we needed to work towards weaning them off of the general fund monies. He agreed that the Measure Q format is a good format to work from. He also feels it would be beneficial to work this through a bit more. His number one concern is the sales tax increase that is being discussed at the County level which, if passed as well. could create a ® disincentive to shop in Morro Bay. He feels that it would be a good idea to have the Chamber do a surve"v with some of their members about this and what the impact might be to their business. He feels that PWAB is a good forum to work on this and get more details. He also definitely supports a citizen ad -hoc committee bigger than just the 2 Councilmembers. Mayor Irons agrees that a survey tool is a good idea as the higher tax rate structure is concerning. He also likes the idea of a citizen committee and is in general support of moving forward as this is just an opportunity to explore what a sales tax initiative would be — ultimately, irs up to the voters. Councilmember Smukler thinks we need to take our time and foresees this occurring at the November election. Mayor Irons restated the items being supported from Council which include having an ad -hoc committee to work towards a possible general sales tax measure: creating and implementing a survey, using the Measure Q format, and having this ready for the November election. MOTION: Mayor Irons moved for the formation of an ad -hoc committee to work with the City Attorney for the purpose of developing a sales tax initiative within the guidelines of the Measure Q format for the purpose of streets; structure a survey mechanism and polling citizens; and presenting this at a public hearing at the PWAB in October. The motion was seconded by Councilmember Smukler ® and carried unanimously_ 5-0 MINUTES - MORRO BAY CITY COUNCIL -SEPTEMBER 1012013 Discussion was held on the City Councilmembers to appoint to the ad -hoc committee. Councilmembers Nancv Johnson and Smukler volunteered to participate. MOTION: Mavor Irons moved to appoint Councilmember Nancy Johnson and Councilmember Smukler to the Ad -hoc Committee. The motion was seconded by Councilmember Christine Johnson and carried unanimously, 5-0. D-6 UPDATE ON THE STATUS OF THE PAVEMENT MANAGEMENT PLAN (PMP): (PUBLIC SERVICES) Public Services Director Rob Livick presented the staff report. Councilmember Christine Johnson thanked the Public Services staff for amending the PNIP and that the goals approved this year really did rely on us taking a more holistic view of the whole Citv and the paving. :Mayor Irons echoed those thanks recognizing it is a working document. He appreciates the attention to a cost effective strategy. There is the underlying note of the asphalt strike as well as weather that still concerns him. The public comment period for Item D-6 was opened. Jeri Ford thanked Council and staff for firing the potholes on her street. Is looking forward to seeing what happens - she said she didn't care what the streets looked like. as long as they were safe. She is comforted in knowing people are looking at this and appreciates the efforts of Lyettin2 them fixed. The public comment period for Item D-6 was closed. Councilmember Smukler announced the "Let Us Know' module found on the City's website feeling it is the best way for staff to find out about street problems. The item was received and filed. D-7 RESOLUTION NO. 47-13 CONFIRMING THE CITY OF MORRO BAY'S PARTICIPATION IN THE CON11MUNITY CHOICE AGGREGATION (CCA) FEASIBILITY STUDY AND APPOINTMENT OF AN INDIVIDUAL TO THE CCA EXPLORATION ADVISORY COMMITTEE (CEAC); (ADMINISTRATION) Citv Manager Andrea Lueker presented the staff report. The public comment period for Item D-7 was opened: seeing none, the public comment period was closed. Councilmember Christine Johnson felt there was very little risk to get involved at this point in ® the process and suggests moving forward with the City's participation. 12 MINUTES - MORRO BAY CITY COUNCIL - SEPTEMBER 10. 2013 Mayor Irons stated that earlier public comment brought out reasons for and against the City's participation in the program. He feels there a lot of interesting things about this concept both for and against. He thinks it's good to be at the table when this is being discussed as it would be smart to be a part of their discussions. Councilmember Nancy Johnson stated that since this is a feasibility study only, she sees nothing wrong in moving forward. Councilmember Smukler stated that we need to be at the table to learn more and he is very interested in leaming more. MOTION: Councilmember Smukler moved approval of Resolution 47-13. confirming the CiWs participation in the Community Choice Aggregation Feasibility Study. The motion was seconded by Mayor Irons and carried unanimously, 5-0. Mayor Irons asked for volunteers from Council to sit on the committee to which Councilmember Smukler was nominated. Councilmember Smukler stated that he is more inclined to be in favor of this concept and feels the Mayor would be a much more effective member of this committee as he would be cautious about it: he also has the background that would be the most beneficial. Mayor Irons feels it would be an interesting opportunity. MOTION: Councilmember Nancv Johnson moved to appoint Mayor Irons as the ® City's delegate to the CCA Exploration Advisory Committee. The motion was seconded by Councilmember Leage and carried unanimously. El D-8 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS AND DISCUSSION: (ADiMNISTRATION) Citv Manager Andrea Lueker presented the staff report. The public comment period for Item D-8 was opened: seeing none, the public comment period was closed. This report was received and filed. E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS Councilmember Leage requested a discussion of the Parking Management Plan concentrating on delivery truck parking on Central Embarcadero between Harbor and Pacific: Mayor Irons and Councilmember Nancy Johnson concurred. Councilmember Smukler requested an evaluation of options of use for the old Transit Building on Harbor Street: Mayor Irons and Councilmember Christine Johnson concurred. 13 MINUTES - ,MORRO BAY CITY COUNCIL - SEPTEMBER 10. 2013 Councilmember Christine Johnson requested staff schedule a Budget Report of the use of City ® funds by the Tourism Bureau to include a report of City funds used in marketing (overnight and regional) and a report of City funds used by the Visitors Center from the time of the transition of the Visitor's Center from the Chamber of Commerce to the Bureau into the present; Mayor Irons and Councilmember Smukler concurred. Councilmember Christine Johnson requested an evaluation of options to improve citywide collaboration between Economic Development, Marketing, Events and Citv Operations: Nlavor Irons and Councilmember Smukler concurred. Mavor Irons requested a discussion of what a water rate policy would look like and how to present it: Councilmembers Christine Johnson and Smukler concurred. ADJOURNMENT The meeting adjourned at 10:57pm. Recorded by Jame Boucher City Clerk E 14 1ILNUTES - b10R110 BAY CITY COUNCIL-SEPTEMBER 10. 2013 ® 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, CLOSED SESSION MEETING TUESDAY, AUGUST 27, 2013 CITY HALL CONFERENCE ROOM - 5:00 PAL 595 HARBOR ST., -,VIORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER SUMMARY OF CLOSED SESSION ITEMS — The Mayor will read a summary_ of Closed Session items. CLOSED SESSION PUBLIC COMMENTS — Members of the public may address the City ® Council on anv matter that is listed on this Closed Session agenda. Unless additional time is authorized by the City Council, remarks shall be limited to three minutes. THE CITY COUNCIL WILL MOVE TO CLOSED SESSION CS-1 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR: Conference with Citv Manager, the Citv's Designated Representative, for the purpose of reviewing the Citv's position regarding the terms and compensation paid to the following employee organizations and giving instructions to the Designated Representative: Firefighters Association (FFA), Service Employee's International Union, SEIU Local 620. Management and Confidential Employees. CONVENE TO OPEN SESSION -Announcement of reportable action from closed session, if any. DATED: August 22. 2013 Swanson, Deputy City Clerk ® IN COMPLIANCE WITH THE AMERICANS WITH DISABILITY 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 ® SPECIAL CLOSED SESSION MEETING — AUGUST 27. 2013 CITY HALL CONFERENCE ROOM — 5:OOPM PRESENT: Jamie Irons Christine Johnson Nancv Johnson George Leage Noah Smukler STAFF: Andrea Lueker Robert Schultz Susan Sla,,7on AGENDA NO: A-1 MEETING DATE: 9/10/2013 Mavor Councilmember Councilmember Councilmember Councilmember City Manager Ciry Attornev Administrative Services Director ESTABLISH QUORUM AND CALL TO ORDER SUMMARY OF CLOSED SESSION ITEMS - The Mayor read a summary of Closed Session items. CLOSED SESSION PUBLIC COMMENTS - Mayor Irons opened the meeting for Public Comment, seeing none. the Public Comment period was closed. ® The City Council moved to Closed Session and heard the following item: CS-1 GOVERNMENT CODE SECTION 54957.6: CONFERENCE WITH LABOR NEGOTIATOR: Conference with Citv Manager. the City's Designated Representative, for the purpose of reviewing the City `s position regarding the terms and compensation paid to the following employee organizations and giving instructions to the Designated Representative: Firefighters Association (FFA). Service Employee's International Union, SEM Local 620, Management and Confidential Employees. CITY COUNCIL CONVENED TO OPEN SESSION — The City Council convened to open session: City Attorney, Rob Schultz reported that no reportable action under the Brown Act was taken. ADJOURNMENT The meeting adjourned at 5:50pm. Recorded by: ® Dana Swanson Deputy City Clerk City of Morro Bay ® City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and -safety consistent with and responsive to the needs of the public. REGULAR MEETING TUESDAY, AUGUST 27, 2013 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 CLOSED SESSION REPORT MAYOR & COUNICILMEVIBERS` REPORTS. ANINI OUNCEMENTS.& PRESENTATIONS PUBLIC PRESENTATIONS ® • SLO Clean Energy PUBLIC COMMENT - Members of the audience wishing to address the Council on City business matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda- but unable to stay for the item, may also address the Council 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 AGENDA Unless an item is pulled for separate action by the City Council. the following actions are approved without discussion. A -I APPROVAL OF CITY COUNCIL Nit MI TES FOR THE SPECIAL CLOSED SESSION MEETING HELD ON AUGUST 13, 2013; (CITY ATTORNEY) RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF THE CITY COUNCIL MNUTES FOR THE REGULAR COUNCIL MEETING HELD ON AUGUST I3, 201J; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-3 APPROVAL OF THE AMENDMENT TO THE SUPPORT SERVICES MANAGER JOB DESCRIPTION: (POLICE) RECOMMENDATION: Approve the proposed amendment to the Support Services Manager job description as well as the proposed job title change to Support Services Coordinator. ® A-4 RESOLUTION 46-13) APPROVING AMENDMENT 92 TO LEASE SITE 65-66/65W- 66W, 571 EMBARCADERO (IMAM); (HARBOR) RECOMMENDATION: Approve Resolution 46-13, executing Amendment #2 to the Lease Agreement for Lease Site 65-66/65W-66W between the City of Nlorro Bay and Abba Imani. A-5 APPROVAL OF SETTLEMENT AGREEMENT BETWEEN THE CITY OF NIORRO BAY AND PACIFIC WESTERN BANK N REGARD TO THE AFFORDABLE HOUSING AGREEMENT AT 600 NIORRO BAY BLVD.; (CITY ATTORNEY) RECOMMENDATION: Approve the Settlement Agreement thereby releasing Unit 106 located at 600 Morro Bay Blvd. from the Affordable Housing Agreement Deed Restrictions. A-6 RESOLUTION 45-13 APPROVNG AN APPLICATION TO THE STATE OF CALIFORNIA'S COASTAL CONSERVANCY FOR GRANT FUNDS THROUGH ITS CLIMATE READY PROGRAM: (PUBLIC SERVICES) RECOMMENDATION: Approve Resolution 45-13 as submitted. B. PUBLIC HEARNGS - NONE ® C. UNFINISHED BUSNESS - NONE D. NEW BUSINESS f D-1 DISCUSSION OF THE FORMATION OF A GENERAL PLAN/LOCAL COASTAL ® PLAN (GP/LCP) UPDATE CITIZEN REVIEW COMMITTEE (CRC): (PUBLIC SERVICES) RECOMINIEN'DATION: Review the idea and particulars regarding formation of a GP/LCP review committee and provide direction to staff as to when the formation would be appropriate. D-2 DISCUSSION ABOUT OPTIONS TO.REDUCE UNPERVIITTED AND ILLEGAL FIREWORKS FOR THE 2014 4TH OF JULY- (POLICE) RECOMMENDATION: Staff recommends no change to the current Municipal Code 14.08.090. Additionally, staff recommends continued proactive patrol efforts, which may include increased staffing, to mitigate the. use of dangerous fireworks in the City of Morro Bay. D-3 DISCUSSION AND DIRECTION ON A CONSULTANT SERVICES HIRING POLICY; (CITY ATTORNEY) RECOMMENDATION: Review this report and the attached draft Consultant Services Hiring Policy and provide direction to staff. D-4 DISCUSSION AND DIRECTION ON LEAGUE OF CALIFORNIA CITIES ® RESOLUTIONS; (ADMINISTRATION) RECOMMENDATION: Authorize the City's voting delegate to support both Resolution No. I and Resolution No. 2 at the League of California Cities Annual Conference. D-5 QUARTERLY STATUS OF THE GOALS SET BY THE CITY COUNCIL N MARCH 2013: (ADMINISTRATION) RECOMMENDATION: Review and discuss this status report. E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS F. ADJOUR "NIENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIiME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 7 72-6205 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 — AUGUST 27. 20 13 VETERAN'S MEMORIAL HALL — 6:00P.M. PRESENT: Jamie Irons Christine Johnson Nancv Johnson Georee Leage Noah Smolder STAFF: .Andrea Lueker Robert Schultz Jamie Boucher Amy Christey Susan Slavton Eric Endersb_v Joe Woods Rob Livick Mayor Irons called the meeting to order at 6:00 p.m. AGENDA NO: A-2 MEETING DATE: 9/10/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager Citv Attomev Citv Clerk Police Chief Administrative Services Director Harbor Director Recreation & Parks Director Public Services Director ESTABLISH QUORUM AND CALL TO ORDER ® MOMENT OF SILENCE PLEDGE OF ALLEGIANCE CLOSED SESSION REPORT — City Attorney Robert Schultz reported that City Council met in a Special Closed Session on August 27. 2013 on the followine item: 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 following employee organizations and giving instructions to the Designated Representative: Firefighters Association (FFA), Service Employee's International Union, SEIU Local 620. Management and Confidential Employees.; no reportable action under the Brown Act was taken. MAYOR AND COUN-C1LMEIMBERSREPORTS_. ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS SLO Clean Energy SLO Clean Energy is a 501(c)3 and is made up of citizen volunteers exploring local. clean energv for SLO communities. Mladen Bandov presented their 'group's vision for SLO Clean Energy. Community Choice Aggregation (CCA) was signed into State law in 2002 and allowed cities and counties to purchase electrical power for ratepayers in their jurisdictions. This is a community based program that features local accountability; local priorities and reinvestment: and local jobs and economic development. CCA provides CHOICE which begins with competition among energy providers, provides better rates and contract terms and allows for an increased renewable energy portfolio. CCA promises clean. safe. reliable and affordable energy. He hopes that the City will support their venture by providing a Resolution supporting the Exploration Advisory Committee set up to study the feasibility; he also hopes the City will ® appoint a community leader to represent Morro Bav on this committee. He hopes they can count on the City's support. Public Services Director Rob Livick presented an update on the status of the Pavement Management Plan. In the 2013/14 adopted budget. there was S371.000 allocated from Measure Q. This. combined with other excesses, provides S757,557 that can go towards streets. A decision was made to allocate $150,000 to a reserve for day-to-day operations leaving S607.000. A portion of that will then be used for inspection and contract services which leaves approximately S550.000 for this year's paving plan. It appears that bids will be advertised in mid -September with the hopes -of construction beginning in mid -October. They are looking at 30 street segments. mainly sealing projects; their focus will be in North Morro Bay with some work also being done on Kind Street and South Bay Blvd from Quintana to Hwy 1. The Morro Bav Business report was given by Linda Franklin. a long-time employee at the Cotton Ball. The Cotton Ball is a full service fabric store that carries a huge selection of fabrics. quilt sections. sewing machines and other sewing/quilting necessities. They have a very knowledgeable staff. They are open Monday_ — Saturday from 10am-5pm and Sunday from l lam-4pm. They hope you will come by for a visit. PUBLIC COMMENT Don Doubledee spoke on behalf of the upcoming. Morro Bav_ Harbor Festival. Tickets for the ® event are now available at the Harbor Fest Office as well as Albertsons. This vear's event features wineries. breweries. local restaurants. a Kids Cove. the Checkerboard Stage. vendors. and 8 top notch bands. Their 30 non -profits and 200 volunteers invite. you all to come celebrate at the w%ater's edge. Garry Johnson thanked the City for providing kids the opportunity to attend surf camps. Both the Recreation & Parks and Harbor Departments did a wonderful job. He was also very impressed with a local non-profit. Project Surf Camp, for the work they do with disadvantaged and disabled children. And finally he continues to pump up the Warrior project, people can still go to Rabobank and to Bayshore Realty to get packages to send to troops in Afghanistan. Garry Hixon stated that the Citv Council is doing a really good job. He also stated that Morro Bav has become a really good place for a lot of people. Yureal Ramirez spoke on behalf of "Save our Squirrels". He stated that every squirrel in Tidelands and Anchor Park along the waterfront have been poisoned and has been done so in an inhumane way. He was worried that the poison traps were placed near playgrounds, picnic areas and waterfront areas. He feels the best wav to curb the squirrel population is through natural means. Diana Duncan stated that other animals can eat out of these poison traps and can also be killed. She too was concerned with the placement of the traps which are too close to water, playgrounds and picnic areas. As a tax paver, she doesn't want her tax dollars used to poison animals. bU,NUTES - MORRO BAY CITY COUNCIL -AUGUST 27, 2013 Marge Redican has been takine care of the rock squirrels for over 30 years. She read a letter ® from a visitor who was shocked at the poisoning efforts. She stated that ``nature takes care of nature, it isn't ourjob to do it." She urged this not to be allowed to happen again. Shirley Norcuss was very saddened and angry at how the Citv was getting rid of our squirrels. The poison is both dangerous to children and animals. She finds our actions inexcusable. She hopes we can come together to do something more humane. Bettv Winholtz suggests that this isn't a community standard we want to be known for. While she knows that the poisons/pesticides used are legal, she questioned if we wanted to use them. She requested Council agendize where this action fits into our value system. as well as have this group meet with the Recreation & Parks Department Director to try and help. Openness is very important and hopefully Council can ensure that occurs. Wavne Vogue is a student at Cuesta College in their Art Department. Cuesta is celebrating their 50 Anniversary and in celebration. the Art Department is hosing 3 Art Exhibits. the first being held on August 30'h at 5:30pm. He invited the community to attend. Dana Gibson hopes that the City of Morro Bay will be on board with the information presented by and about SLO Clean Energy. She is happy to volunteer to help move Morro Bay into joining these efforts. Susan Stewart announced the Avocado Margarita Festival being held in 2 weeks. September 1=11s ® & 15th celebrating our local avocado industry. She also wanted to thank John DiNunzio for his time laving the foundation for our next phase in the Economic Development program that we will be moving forward with. She wanted to publicly state how much we appreciated his expertise; enthusiasm and leadership. She also reminded all who are listening, GET INVOLVED!! There are many opportunities to become aware; be involved, be notified and all groups would love to hear from vou. She also thought that the CCA concept sounded like a promising idea. Mayor Irons closed the public comment period. Recreation & Parks Department Director Joe Woods spoke on the squirrel issue and is happy to explore the idea of partnering up with the group that spoke this evening. There was an overpopulation of squirrels which became an extreme situation. Thev chose to bring in a 3`d party who had the certifications for pesticides and they provided a 3 month service with all traps being removed by Friday, August 30`s. The squirrel population is now manageable. A. CONSENT AGENDA Unless an item is pulled for separate action by the City_ Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MIN-UTES FOR THE SPECIAL CLOSED SESSION MEETIVG HELD ON AUGUST li, 2013; (CITY ATTORNEY) 3 MINUTES - MORRO BAY CITY COUNCIL -AUGUST 27, 2013 RECOMMENDATION: Approve as submitted. ® A-2 APPROVAL OF THE CITY COUNCIL MNtiTES FOR THE REGULAR COUNCIL MEETING HELD ON AUGUST Li. 2013: (ADMNISTRATION) RECOMMENDATION: Approve as submitted. A-3 APPROVAL OF THE AMENDMENT TO THE SUPPORT SERVICES MANAGER JOB DESCRIPTION; (POLICE) RECOMMENDATION: Approve the proposed amendment to the Support Services Manager job description as well as the proposed job title change to Support Services Coordinator. A-4 RESOLUTION 46-13 APPROVING AMENDMENT 42 TO LEASE SITE 66-66/63W- 66W, 571 EMBARCADERO (hMAM); (HARBOR) RECOMMENDATION: Approve Resolution 46-13, executing Amendment =2 to the Lease Agreement for Lease Site 65-66/65W-66W between the City of Morro Bay and Abba Imani. A-5 APPROVAL OF SETTLEMENT AGREEMENT BETWEEN THE CITY OF MORRO BAY AND PACIFIC WESTERN BANK IN REGARD TO THE AFFORDABLE ® HOUSING AGREEMENT AT 600 MORRO BAY" BLVD.; (CITY ATTORNEY) RECOMMENDATION: Approve the Settlement Agreement thereby releasing Unit 106 located at 600 Morro Bay_ Blvd. from the Affordable Housing Agreement Deed Restrictions. A-6 RESOLUTION 45-13 APPROVING AN APPLICATION TO THE STATE OF CALIFORNIA'S COASTAL CONSERVANCY FOR GRANT FUNDS THROUGH ITS CLIMATE READY PROGRAM: (PUBLIC SERVICES) RECOMMENDATION: Approve Resolution 45-13 as submitted. .%,tavor Irons opened up the public comment period for items on the Consent Calendar. Phil Kasperskv, owner of 560 Embarcadero, spoke on Item A-4, approving a lease amendment to lease site 65-66/65W-66W; 571 Embarcadero. Earlier, he had provided pictures of the site and based on them, questioned how this lease site has been able to side-step the rules that all other lease site holders and property owners must comply with on the Embarcadero. There are currently 26 signs in front with additional signs in the back. He also questioned why, to his knowledge, they don't need dedicated parking for what appears to be 7 independent tenant locations. He feels this should be rectified while the lease is being taken care of. In addition. as signs have been added. flood lights have appeared to light the signs which is creating a light nuisance. He is requesting a delay of approval of the amendment until the parking; signage and ® lighting plans have been brought into compliance. 4 MLNUTES - MORRO BAY CITY COUNCIL- AUGUST 27. 2013 The public comment period for the Consent Calendar was closed. ® Councilmember Christine Johnson pulled Item A-4 and Mayor Irons pulled Item A-5 from the Consent Calendar. MOTION: Councilmember Nancy Johnson moved the City Council approve Items A- L. A-2. A-3 and A-6 of the Consent Calendar as presented. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. A-4 RESOLUTION 46-13 APPROVING AMENDMENT 72 TO LEASE SITE 66-66/65W- 66W, 571 EMBARCADERO (IMAM); (HARBOR) Councilmember Christine Johnson pulled this item to get answers to the questions raised by Mr. Kaspersky. Citv Attomev Rob Schultz stated that in regards to parking; this project was granted a Conditional Use Permit and was heard and approved by the Coastal Commission. The parking issues would have been addressed at that time and those issues are not a part of this lease amendment process. He also stated that the City will look into the flood light issue and ensure that they are in compliance. The amendment addresses the signage issues and they Hill be taken care of. The upstairs real estate office was grandfathered in back in 2009 or 2010, whereby Council allowed real estate offices, if they provided vacation rentals, be considered commercial visitor serving. ® Councilmember Nancy_ Johnson is willing to move forward with this but only with the understanding that this is a last chance agreement and if any of the deadlines are missed, it would be time to cease this lease. She also wants to ensure that the lighting issue is dealt with. She also feels it's very important to bring a visitor serving business to the 2"d story unit by the February 28, 2014 deadline. Councilmember Smukler feels that language needs to be added that would ensure the real estate office space located upstairs be transitioned to a visitor service business to try and be consistent. He would be comfortable with that occurring by the February 28, 2014 deadline. Councilmember Leage stated that second story businesses on the Embarcadero don't work. We need to be more lenient with this site in that regards. MOTION: Councilmember Nancy Johnson moved to approve Resolution 46-13_. approving Amendment n2 to lease site 65-66/65W-66W, 571 Embarcadero with 2 modifications — the flood lights be taken care of concurrently with the signs by October 3 L 2013; and. the upstairs use as a real estate office be converted to a visitor serving use by February 28, 2014. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. A-5 APPROVAL OF SETTLEMENT AGREEMENT BETWEEN THE CITY OF MORRO BAY AND PACIFIC R'ESTERN BANK N REGARD TO THE AFFORDABLE ® HOUSNG AGREEMENT AT 600 MORRO BAY BLVD.; (CITY ATTOR\`EY) 5 MINUTES - MORRO BAY CITY COUNCIL- AUGUST 27, 2013 Mayor Irons pulled this item to recuse himself from the discussion due to the proximity of his is property to the project location. MOTION: Councilmember Nancy Johnson moved to approve Item A-4 as presented. The motion was seconded by Councilmember Christine Johnson and carried 4-0-1 with Mayor Irons having to recuse himself. B. PUBLIC HEARINGS - NONE C. U`IFINISHED BUSINESS - NONE D. NEW BUSINESS D-1 DISCUSSION OF THE FORivLATION OF A GENERAL PLAN/LOCAL COASTAL PLAN (GP/LCP) UPDATE CITIZEN REVIEW C01M IITTEE (CRC)_ (PUBLIC SERVICES) Public Services Director Rob Livick presented the staff report. The public comment period for Item D-I was opened; seeing none, the public comment period was closed. Mayor Irons stated it was important to get this started and moved into a timeline when we can ® start the process. He also sees the importance of some education: he is in favor of convening a sub -committee. He feels the keys to this are structure and composition, identifying roles and responsibilities; look into considering bylaws, having time to implement, and education for the committee on the GP and processes. Councilmember Leage wondered where the money for this was going to come from. It's going to cost 1.5 million plus or minus to get it done, he doesn't feel we are ready for this yet and feels that making appointments to a committee without a plan is getting a little ahead of ourselves. Councilmember Christine Johnson thinks it's fine to start early; thinks it's a great idea to develop bylaws: and she would like to get a timeline discussed. She also likes the idea of going to our own Boards and Advisory Councils first as she sees them as our most committed volunteers right now and then expand to the public. Councilmember Nancy Johnson likes having the opportunity to be able to plan ahead. She wants to look carefully at the sub -committee's structure: she would like to see one member from each advisory board. She also wants to see a good balance of the at -large members. Also thinks it's a good idea to develop the parameters but wait until we have the results of the Strategic Growth Council to actually start the selection process. She also thinks the education component can be a good start after we know those results. Councilmember Smukler agrees that we ensure we don't bum the members out by bringing them on board too soon. He appreciated the way the members of the WRF Committee were selected. ® He agrees a balance of membership on the committee is important for this process to succeed and 0 MINUTES - MORRO BAY CITY COUNCIL - AUGUST 2 i. 2013 be bought into by the public. He sees 15 members at the maximum and is willing to work with ® less based on the interest level received. Mr. Livick stated that maybe the time frame the Citv_ uses to advertise and recruit for their advisory boards could be used for this process as well. Vlavor Irons suggested January being a good time to revisit how to recruit members: he also hoped that in the future we would be discussing in more detail a work program and getting ideas on how a subcommittee would coincide with the start of the work program: he also liked a board made up of 9-15 members: he wanted to see defined roles and responsibilities; he wanted to consider having bylaws; and; he too felt that education was an important factor. He felt that looking to the current Advisory Board as well as past Advisory Board members to apply for this. Councilmember Nancv Johnson stated that we had great success in getting quality people to be on the last sub -committee and thought we should follow a similar process. Councilmember Smukler agreed and asked staff to return before the January time -frame to revisit this to get more into the particulars of the formation and function. He would also like to see an update and continued tracking of the progress of the workplan. He also threw out the idea of including a member of San Luis Coastal Unified School District to be on the board. Mr. Livick reiterated that staff will bring this back in a January time frame; we will look to use our existing advisory body recruitment process; we will look at the getting members from ® advisory board or past members and the rest of committee would be nominated from the communitv at large ensuring a good cross section of members. He would also be bringing back a more detailed workplan in November. D-2 DISCUSSION ABOUT OPTIONS TO REDUCE UNPERMITTED AND ILLEGAL FIREWORKS FOR THE 2014 4TH OF JULY: (POLICE) Police Chief Amy Christey presented the staff report and timeline. The public comment period for Item D-2 was opened: seeing none, the public comment period was closed. Councilmember Nancv Johnson felt that due to the size of our police force and street miles, the only reasonable choice would be alternative 41. In addition_. it would be a good idea to do some kind of advanced education on the use of fireworks. Councilmember Smukler stated it was important to work to educate the community; he feels we are using illegal fireworks more and we need to address that. He thought it may be good to look into slightly increased staffing the night of the 4 s as well as possibly increasing the cost of the fine for the use of illegal fireworks. To be fair, it would be important to notice, through a media campaign and temporary signage, the increased fine costs. Councilmember Leage doesn't want to see the code changed. He agreed that education to the ® community on what is allowed and what isn't would be advantageous. He also agreed that 7 MINUTES - MORRO BAY CITY COUNCIL - AUGUST 27, 2013 advanced advertisement is important. He added that he doesn't see this as a real problem in ® ivlorro Bay. Councilmember Christine Johnson stated that people either love or hate fireworks. She believes we have seen a small increase in their illegal use. She also feels the majority of the problem may lie in North Morro Bay and at the beach and that if we increased patrol numbers, we could focus in those areas. She supports alternative l along with a media campaign. through Tolosa Press. Mayor Irons appreciated the information in the staff report, it was very educational. He agrees that alternative i 1 along with a media campaign is the way to go. MOTION: Councilmember Nancv Johnson moved to approve Alternative =1. to include a media campaign, as well as to allow the Police Chief to determine her staffing needs. The motion was seconded by Councilmember Lease and carried unanimously. 5- 0. - D-3 DISCUSSION AND DIRECTION ON A CONSULTANT SERVICES HIRING POLICY: (CITY ATTORNEY) Citv Attorney Rob Schultz presented the staff report stressing that this is a working document. He stipulated that a consultant provides professional services and often times are selected based on their expertise and knowledge: a contractor provides/builds/constructs something and requires competitive bidding and often times sealed bids. ® Councilmember Christine Johnson asked what the time frame was before hiring back a previous employee as a consultant. Mr. Schultz proposed the following: "former employees that subsequently work as consultants are prohibited from participating in projects directly or indirectly related to the City_ of Morro Bay for a period of one year." In addition. "the former employee may not work in the following consultant roles: an individual working as an independent consultant; an individual working for a consultant firm; the firm may bid on a City contract but may not involve the former employee on the project; an individual working for a firm that has been subcontracted by another consulting firm to perform a specific component of the contract: an exception to the prohibition may be granted under extenuating circumstances before the one year period expires; for example if the former employee with specialized skill or experience is required to work on a special project." Councilmember Smukler wondered if Council notification of this hiring could be a part of the policy; he also thought this would be a good place to put some information about summary and reporting of consultant expenditures and contracts in our budget review and presentation every year. The public comment period for Item D-3 was opened: seeing none, the public comment period was closed. Councilmember Christine Johnson stated that this is a formalization of something that is already going on and appreciates it being written. It also responds to questions from the public. She ® stated that this draft policy meets a lot of the needs on her list. She would like to add the section 0 MINUTES - MORRO BAY CITY COUNCIL- AUGUST 2 , 2013 that City Attomev Schultz read. regarding former employees; she also likes 1 year waiting ® period. She hoped that any exception to this would be based on Council approval. Councilmember Nancy Johnson hoped that the former employee section would not be added but at least the ability to make exceptions may help with that. Councilmember Smukler agrees with the changes so far. He also wants reporting regarding consultants being added along with financial expenditures to them be kept up in an ongoing document and provided in a quarterly report to Council as well as to the public. MOTION: Councilmember Christine Johnson moved to approve the Consultant Hiring Policy with the addendum read into the record by City Attorney Rob Schultz regarding previous City employees to also include "as per Council approval` as well as provide additional reporting of consultant expenses on a quarterly basis. The motion was seconded by Councilmember Smukler and carried unanimously, 5-0. D-4 DISCUSSION AND DIRECTION ON LEAGUE OF CALIFORNIA CITIES RESOLUTIONS: (ADMINISTRATION) Citv Manager Andrea Lueker presented the staff report. The public comment period for Item D-4 was opened; seeing none, the public comment period was closed. MOTION: Councilmember League moved to authorize Mavor Irons to support both Resolution 41 and Resolution Y2 at the League of California Cities Annual Conference. The motion was seconded by Councilmember Smukler and carved unanimously. 5-0. D-5 QUARTERLY STATUS OF THE GOALS SET BY THE CITY COUNCIL IN MARCH 2013); (ADMINISTRATION) City Manager Andrea Lueker presented the staff report. Councilmember Christine Johnson requested a change made to Goal 2; Key Task b — change the date from 8/27/13 to 9/10/1J. Councilmember Smukler requested a brief update on the boat haul -out status. Harbor Director Eric Endersbv stated that there is an ad -hoc committee formed that is currently working on that issue; there should be an update at the next Harbor Advisory Board meeting next week. ivlr. Endersbv went on to say that this will be contingent on 3 things: funding_. location of where an actual haul out would occur and then an actual site for a yard itself. Councilmember Smukler requested an update on the workplan for the update of the GP/LCP. Public Services Director Rob Livick stated that the focus has been on how to fund the work plan as there are some technical studies that can't be done in-house. He is anticipating bringing forward a budgetary plan, prior to the adoption of the next budget that goes along with the ® workplan for this in the future. 9 MINUTES - MORRO BAY CITY" COUNCIL - AUGUST 2 i, 2013 Mavor Irons stated that it would be worthwhile to review this program as it moves forward. Also requested was a status on the Morro Creek Bridge Project. Mr. Livick stated the target date for completion of the permitting and environmental review is April of next year. Staff has been working with Coastal Commission staff who have been very helpful. Mayor Irons also asked for a review of the progress made on street improvements. Mr. Livick stated this has to do with the modification we are doing with our Pavement Management Plan. There is no action required for this item. E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS Councilmember Smukler requested a review of the City's Chemical and Poison Application Policy; a review of applicable signage requirements: and a discussion of alternatives: klayor Irons and Councilmember Christine Johnson concurred. Councilmember Smukler requested a review and discussion of the SLO Clean Energy Policy Resolution and appointment of a member to the Exploration Committee: all Councilmembers concurred. Councilmember Smukler requested an update and discussion of the City's Affordable Housing Agreement. Mayor Irons requested a status on the direction of the Economic Development Program. to ® review the contract and discuss expectations of the program: Councilmembers Christine Johnson, Nancy Johnson and Smukler concurred. ADJOURNMENT The meeting adjourned at 9:36pm. Recorded by: Yarme Boucher City Clerk E 10 MINUTES - MORRO BAY CITY COUNCIL -AUGUST 27.2013 ® City of Morro Bay City Council Agenda Mission Statement The City of A lorro 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 CLOSED SESSION MEETING TUESDAY, AUGUST 13, 2013 CITY HALL CONFERENCE ROOM - 4:30 P.M. 595 HARBOR ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER SUMALARY OF CLOSED SESSION ITEMS — The Mayor will read a summary of Closed Session items. CLOSED SESSION PUBLIC COMMENTS — Members of the public may address the City ® Council on anv matter that is listed on this Closed Session agenda. Unless additional time is authorized by the City Council, remarks shall be limited to three minutes. THE CITY COUNCIL WILL MOVE TO CLOSED SESSION CS-1 GOVERNMENT CODE SECTION 54956.8: 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 parcels. • Property: Lease Site 65-66/65W-66W, Abba Imani, 571 Embarcadero Negotiating Parties: Abba Imam and City of Morro Bay Negotiations: Lease Terms and Conditions • Property: Lease Site 82-85/82W-85W, Rose's Landing, 725 Embareadero Negotiating Parties: Doug Redican and City of Morro Bay Negotiations: Lease Terms and Conditions CS-2 CONFERENCE WITH LEGAL COUNSEL DUE TO ANTICIPATED LITIGATION -- GOVERNAENT CODE SECTION 54956.9(b): Exposure to litigation exists based upon existing facts and the advice of legal counsel as to one matter. 0 0 Parties: First American Title Company/First California Bank and City of Morro Bay CS-3 GOVERNMENT CODE SECTION 54957.6. CONTERENCE WITH LABOR NEGOTIATOR: Conference with Citv Manager. the Citv's Designated Representative. ® for the purpose of reviewing the City's position regarding the terms and compensation paid to the following employee organizations and giving instructions to the Designated Representative: Firefighters Association (FFA), Police Officer's Association (POA), Service Employee's International Union, SElU Local 620, Management and Confidential Employees. CONVENE TO OPEN SESSION — Announcement of reportable action from closed session, if any. DATED: August 8, 201 3 Dana Swanson, Deputy City Clerk IN COMPLIANCE WITH THE AMERICANS WITH DISABILITY 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. l MINUTES — MORRO BAY CITY COUNCIL ® SPECIAL CLOSED SESSION MEETING — AUGUST 13.2013 CITY HALL CONFERENCE ROOM — 4:30PM PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Lease Noah Smukler STAFF: Andrea Lueker Robert Schultz Susan Sla-,2on Eric Endersby AGENDA NO: A-1 MEETING DATE: 8/27/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager City Attorney Administrative Services Director Harbor Director ESTABLISH QUORUM AND CALL TO ORDER SUMMARY OF CLOSED SESSION ITEMS - The Mayor read a summary of Closed Session items, noting the correct Government Code Section for Item CS-2 is 54956.9(d)(2). CLOSED SESSION PUBLIC COMMENTS - Mayor Irons opened the meeting for Public Comment. ® Wastewater Treatment Plant Manager, Bruce Keogh; spoke on behalf of Management employees and all employee groups, stating the need to find a wav to recruit and retain employees. He also asked Council to consider a change to Resolution 28-10. Doug Redican; owner of Rose's Landing, provided historical information regarding his lease site, an update on the planned boat slip project, and asked Council to consider a new long term lease agreement. Abba Imam provided Council with an update on the construction project at 571 Embarcadero. The Ciry Council moved to Closed Session and heard the following items: CS-1 GOVERNMENT CODE SECTION 54956.8: 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 parcels. • Property: Lease Site 65-66/65W-66W, Abba Imani, 571 Embarcadero Negotiating Parties: Abba Imani and Ciry of Morro Bav Negotiations: Lease Terms and Conditions • Property: Lease Site 82-85/82W-85W, Rose's Landing, 725 Embarcadero ® Negotiating Parties: Doug Redican and Ciry of Morro Bay Negotiations: Lease Terms and Conditions CS-2 CONFERENCE WITH LEGAL COUNSEL DUE TO ANTICIPATED LITIGATION ® -- GOVERNMENT CODE SECTION 54956.9(d)(2): Exposure to litigation exists based upon existing facts and the advice of legal counsel as to one matter. r • Parties: First American Title Company/First California Bank and City of Morro Bay CS-3 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR: Conference with Citv Manager, the Citys Designated Representative. for the purpose of reviewing the City s position regarding the terms and compensation paid to the following employee organizations and giving instructions to the Designated Representative: Firefighters Association (FFA), Police Officer's Association (POA), Service Employee's International Union, SEIU Local 620, Management and Confidential Employees. CITY COUNCIL CONVENED TO OPEN SESSION — The City Council convened to open session; City Attorney, Rob Schultz reported that no reportable action under the Brown Act was taken. ADJOURNMENT The meeting adjourned at 5:50pm. Recorded by: Dana Swanson Deputy City Clerk MINUTES - MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING -AUGUST 13, 2013 ® City of Morro Bay City Council Agenda .Mission Statement The City of Aforro 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 TUESDAY, AUGUST 13, 2013 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURE ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGI.ANCE CLOSED SESSION REPORT MAYOR & COUNCILMEMBERS' REPORTS. ANNOUNCEMENTS & PRESENTATIONS ® PUBLIC PRESENTATIONS • Quarterly Report from the Economic Development Program • Event Summary from the Morro Bav 4`h Committee PUBLIC COMMENT - Members of the audience wishing to address the Council on Citv business matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda. but unable to stay for the item, may also address the Council 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. • -Anv 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 AGENDA Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION MEETNG HELD ON JULY 9, 201 3: (CITY ATTORNEY) RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF THE CITY COUNCIL MINUTES FOR THE REGULAR COUNCIL MEETING HELD ON JULY 9. 2013: (ADMINISTRATION) RECOMMENDATION: Approve as submitted. ® A-3 STATUS REPORT OF A MAJOR MANTENANCE & REPAIR PLAN QvIMRP) FOR THE EXISTING WASTEWATER TREATMENT PLANT: (PUBLIC SERVICES) RECOMMENDATION: Receive report as submitted. A-4 RESOLUTION 44-13 AUTHORIZING EXECUTION OF A DEED OF TRUST FOR THE LEASE AGREEMENT ON LEASE SITE 65-66/65W-66W (ABBA IMANI): (HARBOR) RECOMMENDATION: Approve Resolution 44-13 authorizing the execution of a Deed of Trust for the Lease Agreement on Lease Site 65-66/65W-66W (.Abba Imani). A-5 REQUST FOR APPROVAL OF ASSIGNMENT OF LEASE AGREEMENT FOR LEASE SITES 87-88/87W-88W FROM VIOLET LEAGE TO B & L FLASH. INC. (833 EMBARCADERO): (HARBOR) RECOINIMENDATION: Approve the Assignment of the Lease Agreement for Lease Sites 87-88/87W-88W. B. PUBLIC HEARINGS B-1 APPEAL OF ADMINISTRATIVE DECISION REGARDING REQUEST FOR PAYMENT OF REDUCED IMPACT FEES FOR A RESIDENTIAL PROJECT ® LOCATED AT 281 MAN STREET (APPLICANT: JOHN AND ALA1R HOUGH); (PUBLIC SERVICES) RECOMMENDATION: Uphold staff decision to deny the reduction in impact fees, per Citv Council Resolution 14-13. C. UNFINISHED BUSINESS C-1 APPROVAL OF DRAFT REQUEST FOR PROPOSALS FOR LEASE SITE 69- 70/69W-70W QvIORRO BAY AQUARIUM); (HARBOR) RECOMMENDATION: Approve the draft RFP as submitted. C-2 CONSIDERATION OF ADOPTION OF RESOLUTION NO. 43-13 SUPPORTING THE CALIFORNIA COASTAL COMMISSION STAFF RECOMMENDATION OF APPROVAL WITH CONDITIONS FOR THE MORRO STRAND STATE PARK CAI'MPGROUND PROJECT NO. A-3-SLO-13-0203; (ADMINISTRATION) RECOMMENDATION: Review, amend if necessary, and consider adoption of Resolution 43-13. C-3 REVIEW AND DISCUSSION OF CO-SPONSORSHIP OF SPECIAL EVENTS_: ® (RECREATION & PARKS) RECOMMENDATION: Review and provide direction to staff. C-4 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS AND DISCUSSION; (ADMINISTRATION) IA RECOMMENDATION: Discuss in open session, the progress to date on the Water Reclamation Facility (WRF) and provide direction to staff as necessary-. D. NEW BUSINESS D-1 REVIEW OF THE CITY OWNIED PARKNG LOT LOCATED ADJACENT TO THE DYNEGY POWER PLANT AND DISCUSSION OF PARKING OPTIONS AND FUTURE USES: (PUBLIC SERVICES) RECOMM4ENDATION: Review options and provide direction to staff. D-2 REVIEW OF PROPOSED MEMORANDUM OF UNDERSTANDING WITH THE MORRO BAY BIKE PARK ORGANIZATION FOR THE DESIGN AND PERMITTING OF A BIKE PARKIN MORRO BAY: (RECREATION & PARKS) 3 RECOMMENDATION: Review and approve Memorandum of Understanding between ® the City of Morro Bap and the Morro Bay Bike Park organization (MBBP). C E. COUNCIL 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 772-6205 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. 91 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR ivlEETING — AUGUST 13, 2013 VETERAN`S MEMORIAL HALL — 6:00P.M. PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Leage Noah Smukler STAFF: Andrea Lueker Robert Schultz Dana Swanson Amy Christey Steve Knuckles Susan Slayton Eric Endersbv Joe Woods Rob Livick Mayor Irons called the meeting to order at 6:07 p.m. ESTABLISH QUORUM AND CALL TO ORDER ® MOMENT OF SILENCE PLEDGE OF ALLEGIANCE AGENDA NO: =A-2 - MEETING DATE: 8/27/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager City Attorney Deputy City Clerk Police Chief Fire Chief Administrative Services Director Harbor Director Recreation & Parks Director Public Services Director CLOSED SESSION REPORT — City Attorney Robert Schultz reported that City Council met in a Special Closed Session on'August 13. 2013 on the following items: Government Code Section 54956.8: Property Transactions related to two lease sites located at 571 Embarcadero and 725 Embarcadero: Conference with legal counsel due to anticipated litigation, noting that the correct Government Code Section is 54956.9 (d)(2): Exposure to litigation exists based upon existing facts and the advice of legal counsel as to one matter - First American Title Company/First California Bank and City of Morro Bay; concerning development at 600 Morro Bay Blvd. bank foreclosure and threatened litigation if the City does not remove the Affordable Deed Restriction: and Government Code Section 54957.6: Conference with Labor Negotiator regarding terms and compensation paid to the following employee organizations: Firefighters Association (FFA), Police Officer's Association (POA), Service Employee's International Union, SEIU Local 620, Management and Confidential Employees. With regard to these agenda items; no reportable action under the Brown Act was taken. NLAYOR AND COUNCILMEMBERS' REPORTS. ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS ® Quarterly Report from the Economic Development Program Craig Schmidt and John DeNunzio presented the Quarterly Report on the Economic Development Program. They are currently working with 15 businesses that are interested in Morro Bay. including a couple of industrial sites. 1_7 new business licenses have been issued since the first of the vear. 63% of those are located outside of !Morro Bay. The Chamber of Commerce has a new website: http://w-Ai.dobusinessinmorrobay.com/ where they are able to track prospective businesses. Along with the Tourism Bureau, they held an event planners workshop and are developing materials that will be handed out by the Recreation & Parks Department. They performed a retail survey, and discussed how the results compare to a similar survey performed in 1995. The results show that while shopping trips to the City of SLO have remained about the same, we are shopping less in Morro Bay than 18 years ago. This may be attributed to online shopping and development of other retail outlets around the County. A free consultation program for current and emerging business is being offered through the Economic Development Program and the SLO County Economic Vitality Corporation. Thus far, 33 businesses have used this service. There are currently two incubator businesses at the Chamber office: Central California Seafood Marketing Association and Fishline.com. The initial attreement with an incubator business is for ® a 12 month period. with 36 months being the maximum. Event Summary from the Morro Bav 4`h Committee Daniel Podesto. on behalf of the 4 ' of July committee; provided an event summary, thanking those that helped make the event happen. The Tourism Bureau financial contribution and Citv accommodations were tremendous. He also thanked Stax Wine Bar and Tognazzaini's Dockside Too for the fantastic fundraising events which donated 100% of proceeds to the 4`h of July. Numerous businesses were also involved including Morro Dunes RV Park, Embarcadero Inn and Morro Bay Mobil. Donations received from residents were also greatly appreciated. These donations helped to secure advertising monies. The organization partnered with El Dorado Broadcasters (4 stations) who ran ads for three months promoting fundraisers and the event. Advertising was also done through Bakersfield Clear Channel Radio_. KSBY, a TvIorro Bav Facebook page, and other social media outlets. Although there was no head count, this year seemed to be one of the best attended events. The crowd came early and staved all day. The transient occupancy tax numbers are not vet available. but anecdotally manv hotels and restaurants have done great business in the last month. The Morro Bav Albertson's store is rumored to have the highest grossing store in the California chain during the 4 h of July weekend. There are currently seven volunteers that meet vear round to put on the event. They are looking ® for more volunteers and support from the business community. MINUTES - MORRO BAY CITY COUNCIL -AUGUST I3, 2013 With regard to event costs. Mr. Podesto noted that this year`s event cost S35.000 and was ® planned similar to 2010. The fireworks are more than half of total budget at S20,000. Music makes up about 15% of the budget. This is as trim as they can get. The maximum spent on the event was S47,000 but the added expense did not pay off, so they trimmed down for this year's event. Anvone interested in getting involved should contact Mr. Podesto or any of the current board members. You can also visit the website http://morrobav4th.org for more information. PUBLIC COMMENT David Schultz, owner of The Bike Shop, presented the Morro Bay business report. The Bike Shop is located at 842 Main Street, across from Coalesce Book Store. He offers complete bikes as well as bike products, parts and service. Tune ups start at $20. The phone number is 772- 2697 and website is www.thebikeshopmb.com Garry Johnson spoke about the Morro Bay Junior Lifeguard program. The Morro Bay Recreation & Parks Department. and Morro Bay Harbor Department put on this three week program which is a great opportunity for our youth. The program teaches them the right way to have fun in the ocean. For younger kids, a one week Beach Camp is available. Annie K. Rocci. 10 years old, shared that she is attending Morro Bay Beach Camp. In addition to attending the Beach Camp, she also helped with Project Surf Camp. John Solu, the new President of Harbor Festival shared that the Harbor Festival is on its wav to ® recovery from a painful process of catching up on debt from prior years. including the City- bill. The 32"d annual event will be held October 5 h and 6 h' with a new look and lineup of entertainment including Queen Nation on Sunday afternoon. The Harbor Festival will continue to highlight our working fishing port, local wines, and craft beer. with sales that account for 30% of event revenue equaling $90.000 for the weekend. After expenses, all proceeds go to local non -profits. Last year. $25,000 was given to local non-profit groups. With regard to Item C-3 on the Council Agenda. Solu noted that until 2004 the City was a full partner in the Harbor Festival. Removing the City from the partnership discourages non-profit groups from hosting events. Year-end reports show that TOT for FY 12-13 exceeded projections. He encourages Council to invest in local events. Don Doubledee. a Morro Bay resident of 44 years, spoke regarding local events. He volunteers for the Morro Bay Car Show and Harbor Festival. The volunteers work hard to bring monies into the Ciry and he encourages Council to partner in local events. This year's Harbor Festival will feature the Young Dubliners on Saturday and Queen Nation on Sunday. Please co-sponsor, join in our effort to do good things in Morro Bay. Don Henderson of 620 Fresno Avenue presented images of overgrown vegetation at the intersection of Fresno and Manna Streets. He also presented a petition with 45 signatures asking the City to address the need for traffic control at this location. 3 MINUTES - MORRO BAY CITY COUNCIL — AUGUST 13, 2013 Liz Klinzman stated that she was in a car accident on the intersection of Fresno and Marina ® Streets six weeks ago. She is pleased that the shrubs have been cut back but asks the City to put in a vield sign at that location. Her son was involved in an accident there six vears ago. Sonja Flores is interning with the Morro Bay Economic Development Program as an Associate Planner. Her background is working as an advocate for the creation of more affordable housing for farm workers and low income families. Since then she entered the Cal Poly Masters of City and Mutual Planning Program and is half wav through that program. Since early July, she has been working to create a draft economic development action plan. It is intended to guide future economic development activities in Morro Bay for 201 3-2018, setting the framework to continue to revitalize the City's economy and business oriented design. Gary Hixon shared that he has shortened the movie Innerspace to 30 minutes. This, along with the Gary Mirror Show can be found on You Tube. He thinks evervone is doing a great job. Kim O'Brien spoke regarding the RFP for the Aquarium. She feels that AZA accreditation should be required, not desired. She also suggests having a specialty consultant in marine design as pan of the selection team. Keith Tavlor thanked volunteers on all levels. He also noted that the City is losing a really good person as Mary Sponhaltz will be leaving the Police Department after 12 years of service. He's happy for her but sad for us; she's a really great person. Councilmember Christine Johnson asked Public Services Director Rob Livick what the follow up ® would be on Mr. Henderson's petition. Director Livick noted this intersection had been studied previously by staff and does not meet the criteria for stop signs. The next step would be for Council to agendize this issue and, if desired. determine by Resolution or Ordinance to install a stop sign there. Mayor Irons asked for clarification on petitions being used for this purpose. Director Livick states the City does not currently have a petition process, but that traffic control can be added by Council action. Mayor Irons closed the public comment period. A. CONSENT AGENDA Unless an item is pulled for separate action by the City Council; the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION MEETING HELD ON JULY 9. 20L3; (CITY ATTORNEY) RECOiNI 1ENDATION: Approve as submitted. A-2 APPROVAL OF THE CITY COUNCIL MNUTES FOR THE REGULAR COUNCIL MEETIN G HELD ON JULY 9, 2013: (ADMINISTRATION) ® RECOiV MENDATION: Approve as submitted. 4 MINUTES - MORRO BAY CITY COUNCIL -AUGUST 13, 2013 A-3 STATUS REPORT OF A MAJOR MAINTENANCE & REPAIR PLAN (MMRP) FOR ® THE EXISTING WASTEWATER TREATMENT PLANT; (PUBLIC SERVICES) RECOMMENDATION: Receive report as submitted. A-4 RESOLUTION 44-13 AUTHORIZING EXECUTION OF A DEED OF TRUST FOR THE LEASE AGREEMENT ON LEASE SITE 65-66/65W-66W (ABBA IMANI); (HARBOR) RECOMMENDATION: Approve Resolution 44-13 authorizing the execution of a Deed of Trust for the Lease Agreement on Lease Site 65-66/65W-66W (Abba Imani). A-5 REQUST FOR APPROVAL OF ASSIGNMENT OF LEASE AGREEMENT- FOR LEASE SITES 87-88/87W-88W FROM VIOLET LEAGE TO B & L FLASH. INC. (833 EMBARCADERO); (HARBOR) RECOMMENDATION: Approve the Assignment of the Lease Agreement for Lease Sites 87-88/87W-88W. Mayor Irons opened up the public comment period for Items on the Consent Calendar. Richard Sadowski spoke on Item A-3 noting that Cayucos Sanitary District had recently released a report, stating that the most economical option for Cayucos would be for the WWTP to stay in the current location. A rebuttal to that report can be found on the Slo Coast Journal. Regarding ® NIIVIRP. it appears citizens of Morro Bay could be subsidizing repairs for Cayucos: he asks Council to put a stay on this item and address the joint powers agreement as it appears they are going in two different directions. The public comment period for Items on the Consent Calendar was closed. Mayor Irons pulled Items A-4 and A-5 from the Consent Calendar to allow Councilmember Lease to recuse himself. MOTION: Councilmember Nancy Johnson moved the City Council Approve Items A-1, A-2 and A-3 of the Consent Calendar as presented. The motion was seconded by Councilmember Christine Johnson and carried 5-0. Councilmember Lease recused himself for Items A-4 and A-5 due to a conflict of interest. A-4 RESOLUTION 44-13 AUTHORIZING EXECUTION OF A DEED OF TRUST FOR THE LEASE AGREEMENT ON LEASE SITE 65-66/65W-66W (ABBA IMANI): (HARBOR) RECOMMENDATION: Approve Resolution 44-13 authorizing the execution of a Deed of Trust for the Lease Agreement on Lease Site 65-66/65W-66W (Abba Imani). 5 MLNUTES - MORRO BAY CITY COUNCIL - AUGUST 13, 2013 City Attorney Schultz explained that this is a routine matter as loans are required for major ® improvement projects and through the loan process the Lender requires that they be entitled to any notice of default on the property. Council has asked that other items regarding lease compliance be addressed in a lease amendment that will be brought -back in two weeks. Staff asks Council to approve the estoppel certificate, subject to a lease amendment that will be brought back in two weeks. Staff will not execute the estoppel certificate until the lease amendment has been approved. MOTION: Councilmember Nancy Johnson moved the City Council approve Item A-4. subject to a lease amendment that will come back to Council in two weeks. The motion was seconded by Councilmember Smukler and carried 4-0-1 with Councilmember Lease havins recused himself. A-5 REQUST FOR APPROVAL OF ASSIGNMENT OF LEASE AGREEMENT FOR LEASE SITES 87-88/87W-88W FROM VIOLET LEAGE TO B & L FLASH. INC. (833 EMBARCADERO); (HARBOR) RECOi EMENDATION: Approve the Assignment of the Lease Agreement for Lease Sites 87-88/87W-88W. MOTION: Councilmember Nancv Johnson moved to approve the Assignment of Lease Agreement for Lease Sites 87-88/87W-88W from Violet Lease to B & L Flash. Inc. The motion was seconded by Councilmember Smukler and carried 4-0-1 with Councilmember Lease having recused himself. ® B. PUBLIC HEARINGS B-1 APPEAL OF ADMINISTRATIVE DECISION REGARDING REQUEST FOR PAYMENT OF REDUCED IMPACT FEES FOR A RESIDENTIAL PROJECT LOCATED AT 281 MAN STREET (APPLICANT: JOHN AND ALAIR HOUGH); (PUBLIC SERVICES) Public Services Director Rob Livick presented the staff report. Cathy Novak spoke on behalf of the Appellants, providing a detailed timeline of project submittal dates as well as Council action related to Resolution 52-12, pointing out that without an appeal to the Coastal Commission, a reasonable expectation to submit for a building permit would have been in September 2012, making the project eligible for a reduction in impact fees. However, due to delays with Coastal Commission the hearing did not occur until March 6. 2013 where they voted unanimously for a No Substantial Issue determination, thereby denying the appeal. Mayor opened up public comment for Item B-1. Betty W inholtz stated that she had appealed the Hough project to Coastal Commission. She asks Council to remember that this couple is not being penalized, they are being asked to pay what C MINUTES - MORRO BAY CITY COUNCIL- AUGUST 13, 2013 everyone else is expected to pay. Their application was submitted before Council took action to ® reduce impact fees. She asks that Council uphold the staff recommendation. The public comment period for Item B-1 was closed. Councilmember Leage stated this is a unique project and kind of border line but he feels they deserve a break. Councilmember Christine Johnson added that it's easy to feel emotional about the process being extended, but important to leave emotions aside. The first application was March 16, 2012 which was quite a bit before the deadline. She also noted the August 10 date in Ms. Novak's report; which is still prior to October 2012 council action. Logically, the decision to build was prior to the council action. Councilmember Nancy Johnson stated this project goes beyond logic and dates. It was subject to unfounded appeals which extended their time and cost them a lot of money. She would like to determine findings to reduce impact fees and support people who want to build and add to the economy in Morro Bay. Councilmember Smukler stated the property owners are in the process of building a home. and agrees with staff decision: he is particularly concerned about extending a benefit that would not be available to others. Impact fees are fair and important for maintaining our City services. Mayor Irons stated that based on the facts of the matter and timeline, he believes that Resolution 14-13 was thoughtful and addressed any project that was in the pipeline. This project just fell ® outside of that. according to the timeline. He agrees with staff recommendation and moves that we proceed with staff recommendation. MOTION: Councilmember Smukler moved to uphold staff decision and denial of the reduced impact fees per City Council Resolution 14-13. The motion was seconded by Christine Johnson and carried 3-2 with Councilmembers Nancv Johnson and Leage voting no. C. UNFINISHED BUSINESS C-I APPROVAL OF DRAFT REQUEST FOR PROPOSALS FOR LEASE SITE 69- 70/69W-70W (MORRO BAY AQUARIUM)_ (HARBOR) Harbor Director Eric Endersby presented the staff report. Mayor Irons opened up public comment for Item C-1. Marla Jo Bruton of Morro Bay takes issue with Harbor Advisory Board involvement in the selection process and asks Council to keep an ear to the ground on those discussions. Since it is Tidelands Grant area with outfalls at that sight, if not used for an aquarium, those outfalls should be used for storm water catchment/treatment. ® Betty Winholtz states that the City is presuming that all applicants or projects will need AZA approval. but that may not be true. We are about 5 years out which may allow time for 7 MINUTES - MORRO BAY CITY COUNCIL - AUGUST 13, 2013 applicants to be prepared for AZA compliance. Process wise, she suggests that changes in RFP ® that were not specifically requested by Council should riot be included in the final document. Public Comment for Item C-1 was closed. Mayor Irons commented regarding liberties by staff in the draft RFP and noted that interaction happens during the motion and during discussions with staff. Councilmember Leage asked how staff will determine how much parking is needed. Director Livick explained that it is common during redevelopment projects that calculations are based on square footage and parking requirements in place at the time of the development. Different uses have different calculations and parking is either provided with actual parking spaces or parking in -lieu. Councilmember Christine Johnson is looking forward to refining the RFP and noted this is a draft document and an opportunity for input from the community and Council to refine the process. On page six, in the bold paragraph, J,d sentence. she would like to add. 'however; it is not currently operating as a rehabilitation center." On page 9, regarding the selection panel, she likes the model used for the WRF Consultant Selection. A ten person committee worked well. and provided a wide variety of input. She suggests two Harbor Advisory Board members be included, and possiblv staff from SLO Countv Animal Services Division. She also suggests that having that input would replace sending the top two candidates to the Harbor Advisory Board. She would also like to discuss the point values on page 12-13 and putting the final numbers in priority order. ® Councilmember Nancy Johnson agrees with Councilmember Christine Johnson's suggestion to add a statement that the aquarium is not currently operating as a rehabilitation center. In addition, she doesn't believe the statement about the Tvlers being named Living Treasures should be included. and supports the selection committee model used for WRF. as it brought forward citizens with a variety of expertise. Councilmember Smukler agrees with changes on page 6, as well as comments by Councilmembers Christine Johnson and Nancy Johnson. On page 5, under Objectives. he suggests striking "economic return to Harbor Dept." as this is generally a lower priority on this specific lease site. The benefit to the community is more important. With regard to the selection committee, he suggests two councilmembers. three staff a marine specialist, possibly a Tourism Bureau or Chamber member. and Harbor Advisory Board or the fishing industry. With regard to page 5. he sees a potential for not charging the standard lease format. This language can be left in, but it's something he wants to address. Councilmember Nancy Johnson noted that a major pan of the harbor income comes from the leases. She understands the importance of visitor serving, but wants to provide income to the Harbor Department. If the language on page 5 is standard leave in. Mayor Irons agrees. Councilmember Smukler supports keeping the language on page 5 in the document. but notes we want affordable public access and a well -designed.- constructed and ® managed facility. 0 M1N'UTES - MORRO BAY CITY COUNCIL —AUGUST 13, 2013 Council discussed the desired changes to the RFP document, and agreed on the following: ® • Page 6 — Delete the last sentence of the bold paragraph, and add a statement clarifying the Aquarium is not currently operating as a rehabilitation center. • Page 9 — Selection committee - after some discussion. Council agreed that a 10 member selection panel is best. Councilmember Leage suggested two councilmembers, two staff. two Harbor Advisory Board Members and four at large. Council agreed. City Attorney Schultz suggests this be advertised in January when new advisory board members are chosen. • Page 12-13 — Council discussed and agreed that Selection criteria S is extremely important and would like to increase that to 20 points. A decision was made to reduce 43 to 10 points, reduce 94 to 10 points and increase 45 to 20 points, and add the following language to 0. "collaborating with other educatidn partners, if feasible." The selection criteria should be listed in descending order. MOTION: Councilmember Christine Johnson moved to approve the RFP for Lease Sites 69-70/69W-70W as amended. The motion was seconded by Councilmember Leage and carried 5-0. C-2 CONSIDERATION OF ADOPTION OF RESOLUTION NO. 43-13) SUPPORTING THE CALIFORNIA COASTAL COMMISSION STAFF RECOMMENDATION OF APPROVAL WITH CONDITIONS FOR THE MORRO STRAND STATE PARK CAMPGROUND PROJECT NO. A-3-SLO-13-0203: (ADMINISTRATION) ® Councilmember Christine Johnson recused herself due to a conflict of interest in the matter. Citv Manager Andrea Lueker presented the staff report. Mayor Irons stated that he had contacted Brooke Guiterrez from State Parks to discuss the project and Resolution. Mayor opened up public comment for Item C-2. Cathy Novak spoke on behalf of the Wiebenga's and other residents. sharing that the appellants and neighbors had met with State Parks and were able to resolve some of the issues. The two major items remaining are the campfire rings and the number of RV spaces. She asked the Council to support the neighbors by including these two important items in the Resolution and also to authorize staff to attend the Coastal Commission meeting to speak on the City's behalf. Harold Wiebenga, Morro Bay resident. stated that Morro Strand State Park is a pollution park. He asks the City to join the residents to object to the project and to send staff to the Coastal Commission meeting to represent clean air. Marla Jo Bruton reminded Council that during the rehabilitation at Morro Bay State Park Campground involving the removal of trees. State Parks did not address the collection system which had an added impact to the City due to an increased number of spaces. At that time. ® Schultz noted that State Parks is treated like any other customer. She asks if that policy is still E MINUTES - NIORRO BAY CITY COUNCIL - AUGUST 13, 2013 the same. With regard to Atascadero State Park campground, she asks how the State Park is ® being treated now and believes it should be a different agreement. The public comment period for Item C-2 was closed. Mayor Irons asked staff if fire pits are allowed in the City limits. Director Livick stated that fire pits are allowed in the City limits so long as they meet fire code (distance from structures). Director Livick also notes that State Parks has offered to provide campfire educational materials (dry wood and no trash in fire pits). City Attorney Schultz stated that the argument regarding fire pits is going on in southern California as well. Coastal Commission there supports allowing fire pits for campers, however the Air Pollution Control District is fighting it. This item was on the July_ Agenda for Coastal Commission. Councilmember Nancy Johnson loves camping and campfires and notes that the mobile home park near her home has fire pits, as do many residents. She believes education is good and suggests that State Parks provide dry wood at lower cost. Also notes that some areas, Yosemite as an example, limit fires until late evening which might alleviate pollution. Mavor Irons reminds Council that options have been provided in the Resolution for Council consideration. Councilmember Smukler supports option 42 in last the "Whereas' paragraph. With regard to 91 ® he willing to go along with it, but believes there are larger issues that should be included. 1) public access; suggest "enhanced public access from Beachcomber and designated corridors', 2) "expanded day use parking beyond what is proposed". 3) require timeline for amenities to be improved (showers; restrooms, interior landscape screening), 4) designation and preservation of tent/motorcycle/car camping sites, 5) coastal bluff erosion control plan. 6) ensure protection plan for viewshed. Citv Manager Lueker listed the following revisions for confirmation: Eliminate =1 — Reduction of the number of fire rings at the RV sites to every other site. Keep T2 - Removal of the fire rings at the RV sites. Keep =3 — Reduction of the number of converted RV spots from the proposed 27 to 20. Add the following: 1. Enhanced public access from Beachcomber Street and provide designated corridors through the park. 2. Expanded day use parking beyond the proposal. I Require a timeline for improvement of the restroom and showers and include interior landscape screening. 4. Preservation and designation of non -RV sites. 5. Preparation of a coastal bluff erosion plan. ® 6. Ensuring a view shed protection plan 10 MINUTES - MORRO BAY CITY COUNCIL - AUGUST 13, 2013 MOTION: Councilmember Smukler moved to approve Resolution 43-13 as amended. ® The motion was seconded by Mayor Irons and carried 4-0-1 with Councilmember Christine Johnson having recused herself. Staff asked for direction on whether to send staff to the August 1 5's Coastal Commission Meeting to speak on this item; adding that the City Manager and Public Services Director are not available due to the Water Reclamation Facilitv Community Workshop that evening. Council directed the City Attorney to attend. 1] 1 C-3 REVIEW AND DISCUSSION OF CO-SPONSORSHIP OF SPECI.AL EVENTS_: (RECREATION & PARKS) Councilmember Nancy Johnson asked if she should recuse herself as she is the chair of one of the events that is currently co -sponsored. City Attorney Schultz asked if she receives a stipend or other financial benefit from being on the Board. Councilmember Johnson confirmed that she does not. Citv Attomev Schultz stated as there is no financial benefit. she may hear the item. Recreation & Parks Director Joe Woods presented the staff report. Councilmember Christine Johnson believes that it would be good to be able to support special events but that it's difficult to know what the fiscal impact would be. She asked if this item should be brought back alone with the Aid to Agencies. She wants to see this developed as a budgetary item and prioritized as such. City Manager Lueker explained that Aid to Agencies was not handled that way in the past: but it is an option. Councilmember Nancy Johnson wants to move forward with this policy with a few changes. She does not support completely waiving fees for City support services. Mayor Irons is concerned about the potential impact of supporting all 35 events listed in the staff report and asked for clarification on Aid to Agencies. City Manager Lueker confirmed that in the past Aid to Agencies could be awarded to any non-profit organization in the community_ and that this policy could be expanded to include that. Councilmember Smukler wants to also consider how a marketing plan through Tourism Bureau could help with sponsorships and revenues. Council directed staff to bring this item back as a Public Hearing item, to encourage more public participation, and to include the fiscal impact of both the current policy and suggested policy. Information regarding sponsorship with the Tourism Bureau should also be discussed. No action was taken on this item. C-4 WATER RECLAMATION FACILITY (WRF) DISCUSSION: (ADMINISTRATION). City Manager Andrea Lueker presented the staff report. PROJECT STATUS AND MINUTES - MORRO BAY CITY COUNCIL - AUGUST 13. 2013 Mayor Irons opened up public comment for Item C-4, seeing none the public comment period ® was closed. Councilmember Smukler presented a slide presentation on the Santee Lakes `Recreation Preserve` and Water Recycling Facilitv to encourage the public to consider what values are important to Morro Bay and to bring ideas to the Community Workshop. No action taken on this item. D. NEW BUSINESS D-I REVIEW OF THE CITY OWNED PARKING LOT LOCATED ADJACENT TO THE DYNFEGY POWER PLANT AND DISCUSSION OF PARKNG OPTIONS AND FUTURE USES; (PUBLIC SERVICES) Public Services Director Rob Livick presented the staff report, and noted that whatever design is considered should consider a future bike path that may come through this area. Councilmember Christine Johnson asked staff to clarify what parking -in -lieu funds can be used for; specifically whether it could be used for street repairs. Director Livick stated that parking - in -lieu funds can be used for improvements within the parking -in -lieu district for parking purposes only. not for street repairs. Nor can street paving monies be used for parking lots. City Attorney Schultz noted that according to the parking management plan and zoning code. the ® Morro Rock parking lot is included in the parking -in -lieu area. but the Dynegy parking lot is not. However. that can be changed. Mayor Irons opened up public comment for Item D-1. seeing none the public comment period was closed. Mayor Irons restated the options are to consider rezoning the area for permanent parking, or amend for an interim use. Director Livick confirmed that interim use allows for no permanent improvements. Mayor Irons asked about driveway approach, and suggests that we consider aligning with the drive way on the other side of the road to allow for a�crosswalk, along with improved signage. Continued use as a laydown or storage area should also be addressed for the short-term. Long term, need to consider the location of the bike path and maritime museum. Councilmember Christine Johnson is leaning toward keeping it as interim use with minimal improvements and suggests bringing the item back in one year for discussion on a permanent use. She also asks that event planning teams coordinate use of that lot. Councilmember Leage stated that this parking lot is an answer to a lot of problems. He believes that removing the gate and chain link fence will make it more user-friendly. He believes the signage is fine and that discussion on further improvements is premature. Councilmember.Nancv Johnson is pleased to have the additional parking and wants to see it set ® up for use before the Harbor Festival. 12 MINUTES - MORBO BAY CITY COUNCIL -AUGUST 13, 2013 Councilmember Smukler agrees that we need to take'a better look at some of the bie uses that could end up there, such as boat haul out. maritime museum and the bike path. He agrees with minimal cost. interim use permit, and an update to parking in lieu map. Making the parking lot friendly and inviting is important and better signage, parking flow, and aesthetic improvements will help with that. He asks to be sure to include this lot on public transit maps and encourage restaurants to use it for employee parking. MOTION: Councilmember Nancy Johnson moved to direct staff to process with interim use permit and change to parking in lieu map. Councilmember Christine Johnson seconded the motion. Councilmember Smukler asked that the motion be amended to include an update on the proposed improvements and cost estimate. Staff confirmed this can be done after the interim use permit is processed. The amended motion was seconded by Councilmember Christine Johnson and carried 5-0. MOTION: Councilmember Smukler moved to continue the meeting past II:00. if needed. The motion was seconded by Councilmember Christine Johnson and carried 3-2 with Councilmembers Nancy Johnson and Leage voting no. D-2 REVIEW OF PROPOSED MEMORANDUM OF UNDERSTANDING WITH THE MORRO BAY BIKE PARK ORGANIZATION FOR THE DESIGN AND PERMITTING OF A BIKE PARK N MORRO BAY; (RECREATION AND PARKS) ® Director Woods presented the staff report. Mayor Irons opened up public comment on Item D-2, seeing none the public comment was closed. As a matter of es parse, Mayor Irons noted he is a member of CCCMB. and asked if that presented a conflict of interest. City Attorney Schultz stated that it does not. Mayor Irons asks for Council permission to write letters on the City s behalf requesting funding for the Bike Park. Mr. Schultz notes that is allowed under Council Policies & Procedures so long as it's a direction that Council supports. Council concurs. MOTION: Councilmember Nancy Johnson moved to approve the Memorandum of Understanding. The motion was seconded by Councilmember Leage and carried 5-0. E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS Mayor Irons requested a discussion regarding a traffic control device at the intersection of Marina and Fresno Streets. Councilmember Christine Johnson suggested this item be sent to PWAB first. Council concurred. Mayor Irons requested a policy discussion regarding a public process to request traffic. signs. ® This item would also be sent to PWAB first. Council concurred. 13 b1INUTES - MORRO BAY CITY COUNCIL- AUGUST 13, 2013 Mayor Irons requested a discussion regarding the parking -in -lieu Resolution for the downtown area. as the previous Resolution expired in Julv_ . Councilmembers Nancy Johnson and Christine Johnson concurred. Councilmember Leage requested a discussion to form a subcommittee to talk to the Hartzells about the vacant lot on the Embarcadero. Mayor Irons, Councilmember Nancy Johnson and Councilmember Smukler concurred. Councilmember Nancy Johnson requested Council review and possibly rescind Resolution 28- 10. Councilmember Smukler and Mayor Irons concurred. ADJOURNMENT The meeting adjourned at 11:03 p.m. Recorded b�v::,� Dana Swanson Deputy City Clerk 11 C 14 MINUTES - MORRO BAY CITY COUNCIL - AUGUST 13, 2013 ® City of Morro Bay City Council Agenda Mission Statement The City of Alorro 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 CLOSED SESSION MEETING TUESDAY, JULY 9, 2013 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER SUM'!NLARY OF CLOSED SESSION ITEMS — The Mayor will read a summary_ of Closed Session items. CLOSED SESSION PUBLIC CONLMENTS — Members of the public may address the City ® Council on anv matter that is listed on this Closed Session agenda. Unless additional time is authorized by the Citv Council, remarks shall be limited to three minutes. THE CITY COUNCIL WILL NIOVE TO CLOSED SESSION CS-1 CONFERENCE WITH LEGAL COUNSEL DUE TO ANTICIPATED LITIGATION — GOVERN\1IENT CODE SECTION 54956.9(b): Exposure to litigation exists based upon existing facts and the advice of legal counsel as to one matter. • Parties: First American Title CompanyiFirst California Bank and City of Morro Bay CONVENE TO OPEN SESSION — Announcement of reportable action from closed session, if any. DATED: Julv 3.2013 Dana Swanson, Deputy City Clerk IN COMPLIANCE WITH THE AMERICANS WITH DISABILITY ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING. PLEASE CONTACT THE CITY CLERK'S OFFICE ® AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. MINUTES — MORRO BAY CITY COUNCIL ® SPECIAL CLOSED SESSION MEETING — JUL Y 9, 2013 CITY HALL CONFERENCE ROOM — 5:OOPM PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Leage Noah Smukler STAFF: Andrea Lueker Robert Schultz AGENDA NO: A-1 MEETING DATE: 8/13/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager City Attorney ESTABLISH QUORUM AND CALL TO ORDER SUMMARY OF CLOSED SESSION ITEMS - The Mayor read a summary of Closed Session items. CLOSED SESSION PUBLIC COMMENTS - Mayor Irons opened the meeting for Public Comment; seeing none, the Public Comment period was closed. The City Council moved to Closed Session and heard the following items: CS-1 CONFERENCE WITH LEGAL COUNSEL DUE TO ANTICIPATED ® LITIGATION — GOVERNMENT CODE SECTION 54956.9(b): Exposure to litigation exists based upon existing facts and the advice of legal counsel as to one matter. • Parties: First American Title Company/First California Bank and City of Morro Bay CITY COUNCIL CONVENED TO OPEN SESSION — The City Council convened to open session; City Attorney, Rob Schultz reported that no reportable action under the Brown Act was taken. ADJOURNMENT The meeting adjourned at 5:22pm. Recorded by: Dana Swanson Deputy City Clerk El ® 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 TUESDAY, JULY 9, 2013 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 CLOSED SESSION REPORT MAYOR & COUNCILMEMBERS' REPORTS. ANNOUNCEMENTS & PRESENTATIONS ® PUBLIC PRESENTATIONS — "SLOCOG Presentation on the US 101 Mobility Study' PUBLIC COMMENT - Members of the audience wishing to address the Council on City business matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda, but unable to stay for the item, may also address the Council 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. E ® 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 AGENDA Unless an item is pulled for separate action by the City Council_ the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL AMENDED MINUTES FOR THE REGULAR CITY COUNCIL MEETNG HELD ON JUNE 11, 2013; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION MEETING HELD ON JUKE 25_ 2013; (CITY ATTORNEY) RECOMMENDATION: Approve as submitted. A-3 APPROVAL OF THE CITY COUNCIL MINUTES FOR THE REGULAR COUNCIL MEETNG HELD ON JUNE 25, 2013; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. A-4 RESOLUTION 38-13 APPROVING A NINETEEN YEAR LEASE AGREEMENT FOR MOORING AREA Al-3 BETWEEN THE CITY OF MORRO BAY AND THE MORRO BAY YACHT CLUB; (HARBOR) RECOMMENDATION: Approve Resolution 38-13 for a new lease agreement with the Morro Bay Yacht Club (MBYC) for Mooring Area Al-3.. A-5 DESIGNATION OF VOTING DELEGATE AND ALTERNATE VOTING DELEGATE AT LEAGUE OF CALIFORNIA CITIES 2013 ANNUAL CONFERENCE BUSINESS MEETNG: (ADMINISTRATION) RECOMMENDATION: Appoint of Mayor Irons as the Voting Delegate at the League of California Cities 2013 Annual Conference Business Meeting and appoint City Councilmember Christine Johnson as the alternate Voting Delegate. A-6 APPROVAL OF MASTER FIBER AGREEMENT WITH CHARTER COMMUNICATIONS; (PUBLIC SERVICES) RECOiiIMENDATION: Approve the Master Fiber Agreement with Charter Communications and authorize the City Manager to execute the agreement.. A-7 STATUS REPORT OF A MAJOR MAINTENANCE & REPAIR PLAN (MiVIRP) FOR ® THE EXISTING WASTEWATER TREATMENT PLAN; (PUBLIC SERVICES) RECONLNIENDATION: Receive and file status report as presented. A-8 RESOLUTION APPROVING ADJUSTMENT TO LEASE SITE LEAPS FOR LEASE SITES 93-95 AND 93W-9.�W; (HELD FAMILY; AND SMITH W AND HANNAH W HELD FAMILY TRUSTS): (PUBLIC SERVICES) RECOMMENDATION: Approve the adjustment to Lease Sites 93-95 and 93W-95W by Resolution No. 42-13. A-9 AUTHORIZATION TO FILE NOTICE OF COMPLETION FOR PROJECT NO. MB2010-FDO1: MORRO BAY FIRE STATION 53 OFFICE AND LIVNG QUARTERS; (PUBLIC SERVICES) RECOMitiIENDATION: Authorize staff to file the Notice of Completion for Morro Bay Fire Station 53 Office and Living Quarters. A-10 CONSULTANT SERVICES AGREEMENT WITH RRM DESIGN GROUP FOR DESIGN. PERMITTING AND ASSOCIATED ENVIRONMENTAL SERVICES FOR MORRO CREEK MULTI -USE TRAIL AND BRIDGE PROJECT; (PUBLIC ® SERVICES) RECOMMENDATION: Approve the Scope of Work and authorize the Public Services Director to execute a consultant services agreement with RRM Design Group and for a fee not to exceed 5260,257. A-11 RESOLUTION NO. 41-13 ADOPTING 2013/14 MASTER FEE SCHEDULE: (ADMINISTRATIVE SERVICES) RECOMMENDATION: Council to adopt Resolution No. 41-13. A-12 RESOLUTION NO. 40-13 ESTABLISHING THE ANNUAL PROPOSITION 4 APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2013/14; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 40-13. A43 ANNUAL ACTIVITY REPORT FOR THE -SERVICE RETIREMENT INCENTIVE (SRI) PROGRAM: (ADMINISTRATIVE SERVICES) RECOMINMNDATION: Review and file this report as presented. B. PUBLIC HEARINGS —NONE 3 ® C. UNFINISHED BUSINESS C-I CONSIDERATION OF REDEVELOPMENT PROJECTS PROPOSED FOR LEASE SITES 62/62W (KAYAK HORIZONS — KRUEGER) AND 63-64/63W-64W (GRAY'S INN - GRAY). (HARBOR) RECOMMENDATION: Consider the alternatives and provide staff direction; staff is recommending Alternative A. D. NEW BUSINESS D-I RESOLUTION NO. 39-1.3 APPROVING THE APPLICATION FOR GRANT FUNDS FOR THE LOCAL COASTAL PROGRAM SEA LEVEL RISE ADAPTATION GRANT FOR UPDATES TO THE LOCAL COASTAL PLAN UNDER THE AUTHORITY OF THE OCEAN PROTECTION ACT AND REVIEW THE CITY WORK PLAN FOR THE GENERAL PLAN/ LOCAL COASTAL PLAN UPDATE: (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution 39-13 authorizing a S250,000 grant application for the Local Coastal Program Sea Level Rise Adaptation Grant Application; receive staff report regarding draft application and corresponding review of City work plan for the update of the General Plan/ Local Coastal Plan and provide direction to staff as necessary. D-2 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS AND DISCUSSION: (ADMINISTRATION) RECOMMENDATION: Discuss in open session, the progress to date on the Water Reclamation Facility (WRF) and provide direction to staff as necessary. E. COUNCIL 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 772-6205 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 REGULAR MEETING — JULY 9. 201 3) ® VETERAN'S MEMORIAL HALL — 6:OOP.M. PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Leage Noah Smukler STAFF: Andrea Lueker Robert Schultz Jamie Boucher Dana Swanson Amv Christey Steve Knuckles Susan Slayton Eric Endersbv Joe Woods Rob Livick Kathleen Wold Cindv Jacinth is Mayor Irons called the meeting to order at 6:00 p.m. ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE AGENDA NO: A-2 - MEETLNG DATE:- 8/13/2013 , Mavor Councilmember Councilmember Councilmember Councilmember City Manager Citv Attomev_ Citv Clerk Deputy City Clerk Police Chief Fire Chief Administrative Services Director Harbor Director Recreation & Parks Director Public Services Director Planning vlanaser Associate Planner CLOSED SESSION REPORT — City Attorney Robert Schultz reported that City Council met in a Special Closed Session on July 9, 2013 on the following item: Conference with legal counsel due to anticipated litigation, Government Code Section 54956.9(b): Exposure to litigation exists based upon existing facts and the advice of legal counsel as to one matter - First American Title Company/First California Bank and City of Morro Bay; no reportable action under the Brown Act was taken. VLAYOR AND COUNCILMEMBERS' PRESENTATIONS PUBLIC PRESENTATIONS PUBLIC COMMENT REPORTS. AvIOUNCEViENTS & Gam Johnson congratulated Morro Bav for supporting the troops in Afghanistan. According to Si Tenenbem. Morro Bay is the top City in the County supporting his program of bringing care packages to the troops overseas. Si attends events providing care packages for mailing: locally. ® these packages are available at Rabobank and Bayshore Realty; all you need to do is pay for shipping. He finished by reading a thank you letter from the troops. Don Henderson. 620 Fresno, spoke in an effort to brine attention to what he considers a hazardous intersection at Marina and Fresno. On the moming of June 28. 2013. there was a 2 car ® accident that was violent enough to deploy both vehicles' airbags. He hopes that this intersection can be monitored more closely and eventually get a stop or vield sign installed. Public Services Director Rob Livick noted that there was not sufficient traffic to install signs but citizens can collect signatures and submit a petition. He promised that they would do a traffic study and asked Mr. Henderson to contact him for further information. Mavor Irons closed the public comment period. A. CONSENT AGENDA Unless an item is pulled for separate action by the City Council. the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL AMENDED MINUTES FOR THE REGULAR CITY COUNCIL MEETNG HELD ON JUNE 1 I, 2013; (ADN[INISTRATION) RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF CITY COUNCIL MNUTES FOR THE SPECIAL CLOSED SESSION MEETING HELD ON JUNE 25, 2013; (CITY ATTORNEY) ® RECOMMENDATION: Approve as submitted. A-3 APPROVAL OF THE CITY COUNCIL MINUTES FOR THE REGULAR COUNCIL MEETNG HELD ON JUNE 25, 2013; (.ADMINISTRATION) n LJ RECOMMENDATION: Approve as submitted. A-=4 RESOLUTION 38-13 APPROVING A NNETEEN YEAR LEASE AGREEMENT FOR MOORING AREA AI-3 BETWEEN THE CITY OF MORRO BAY AND THE MORRO BAY YACHT CLUB; (HARBOR) RECOMMENDATION: Approve Resolution 38-13) for a new lease agreement with the Morro Bav Yacht Club (MIBYC) for Mooring Area AI-3.. A-5 DESIGNATION OF VOTING DELEGATE AND ALTERNATE VOTING DELEGATE AT LEAGUE OF CALIFOR\TIA CITIES 2013) ANNUAL CONFERENCE BUSINESS MEETNG; (ADMINISTRATION) RECOMMENDATION: Appoint of Mayor Irons as the Voting Delegate at the League of California Cities 2013 Annual Conference Business Meeting and appoint City Councilmember Christine Johnson as the alternate Voting Delegate. MINUTES - MORRO BAY CITY COUNCIL - JULY 9. 2013 A-6 APPROVAL OF MASTER FIBER AGREEMENT WITH CHARTER ® COtMMUNICATIONS; (PUBLIC SERVICES) RECOMMENDATION: Approve the Master Fiber Agreement with Charter Communications and authorize the City Manager to execute the agreement.. A-7 STATUS REPORT OF A MAJOR MAINTENANCE & REPAIR PLAN (MMRP) FOR THE EXISTING WASTEWATER TREATMENT PLAN: (PUBLIC SERVICES) RECOMMENDATION: Receive and file status report as presented. A-8 RESOLUTION APPROVING ADJUSTMENT TO LEASE SITE MAPS FOR LEASE SITES 93-95 AND 93W-95W; (HELD FAMILY; AND SMITH W AND HAN"NAH W HELD FAMILY TRUSTS): (PUBLIC SERVICES) RECOMMENDATION: Approve the adjustment to Lease Sites 93-95 and 93W-95W by Resolution No. 42-13. A-9 AUTHORIZATION TO FILE NOTICE OF COMPLETION FOR PROJECT NO. ivIB2010-FDO1:. MORRO BAY" FIRE STATION 53 OFFICE AND LIVING QUARTERS; (PUBLIC SERVICES) RECOMMENDATION: Authorize staff to file the Notice of Completion for Morro Bay Fire Station 53 Office and Living Quarters. ® A-10 CONSULTANT SERVICES AGREEMENT WITH RRM DESIGN GROUP FOR DESIGN. PERMITTING AND ASSOCI.ATED ENVIRONMENTAL SERVICES FOR MORRO CREEK MULTI -USE TRAIL AND BRIDGE PROJECT: (PUBLIC SERVICES) REC.0MfMENDATION: Approve the Scope of Work and authorize the Public Services Director to execute a consultant services agreement with RR-M Design Group and for a fee not to exceed $260,257. A-11 RESOLUTION NO. 41-13 ADOPTING 2013/14 MASTER FEE SCHEDULE: (ADMINISTRATIVE SERVICES) RECOMMENDATION: Council to adopt Resolution No. 41-13 A-12 RESOLUTION NO. 40-13 ESTABLISHING THE ANNUAL PROPOSITION 4 APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2013/14; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 40-13. A-13 ANNUAL ACTIVITY REPORT FOR THE SERVICE RETIREMENT INCENTIVE ® (SRI) PROGRAM: (ADMINISTRATIVE SERVICES) 3 MINUTES - MORRO BAY CITY COUNCIL -JULY 9.2013 REC0MMEND ATIONI: Review and file this report as presented. Is Mayor Irons opened up the public comment period for items on the Consent Calendar: seeing none; the public comment period was closed. Councilmember Christine Johnson pulled Items A-3 and A-1 L Councilmember Smukler pulled Items A-7 and A-10 and Mayor Irons pulled Item A-4 from the Consent Calendar. MOTION: Councilmember Nancy Johnson moved the City Council approve Items A- 1, A-2, A-5 A-6, A-8, A-9. A-12 and A -I') of the Consent Calendar as presented. The motion was seconded by Councilmember Leage and carried unanimously 5-0. A-3 APPROVAL OF THE CITY COUNCIL MINUTES FOR THE REGULAR COUNCIL MEETING HELD ON JUNE 25. 2013: (ADiVINISTRATION) Councilmember Christine Johnson pulled this item to add a phrase to paragraph 4 of page 8 ...many organization's parts in support of the Tylers.". Mayor Irons also wanted an addition made to paragraph 2 of page 8 so that it reads as follows: `Mayor Irons met with the Tylers as well as the Central Coast Aquarium; an invitation for the Tylers to meet with the Central Coast Aquarium was also extended but never materialized. Mayor Irons also feels..." MOTION: Councilmember Christine Johnson moved to approve the City Council minutes for the regular meeting of June 25, 2013 as amended. The motion was seconded by Councilmember Leage and carried unanimously 5-0. ® A-4 RESOLUTION 38-13 APPROVING A NINETEEN YEAR LEASE AGREEMENT FOR MOORNG AREA Al-3 BETWEEN THE CITY OF MORRO BAY AND THE MORRO BAY YACHT CLUB: (HARBOR) El Mayor Irons pulled this item as he had questions regarding the Clean Marinas Program. Harbor Director Eric Endersby stated that the Clean Marinas program is a program of industry self -inspection as a result of some water quality issues down in the San Diego Bay area. It is an industry led effort to self -certify certain best management practices of harbor and marina operations in order to meet water quality control goals. The City of Morro Bay gained certification in 2006 and were recertified in 2011: it has been a goal of the Harbor Department to slowly get Clean Marina certification into leases that have larger numbers of slips and moorings and the Yacht Club is the first to come along. During the negotiations with the Yacht Club on their mooring lease. it was discussed and determined to use language "will make all reasonablelbest efforts" to comply with the Clean Marina efforts. It is and always has been the Yacht Clubs intention to make a commitment to Clean Marinas. Mayor Irons feels that we should keep the language "...shall commit to...' as it is and has been the intent of the City and Harbor Department to become a Clean Marina and if something were to happen, the lease would come back to Council and the Yacht Club wouldn't be in default 'of their lease. He would like to see the Ciry set the standard and commitment to Clean Marinas. 4 MINUTES - MORRO BAY CITY COUNCIL -JULY 9. 2013 Councilmember Smukler prefers to hold the language to the standard rather than to allow ® flexibility. He would like to see a commitment from the Yacht Club to commit to the Clean 'Marina set standard and that if it becomes prohibitive, then they can come back for discussions as to why. Mayor Irons also brought up a question on lease language regarding revetments to which Harbor Director Endersbv stated that this particular lease site doesn't have a seawall or a revetment. Citv Attomev Rob Schultz stated that all the Master Lease Site language is consistent and it would be his goal that it remains that way: it makes it easier to have all master leaseholders on the same lease template as there is consistency when discussing different sections. MOTION: . Mayor Irons moved to approve Item A-4 as amended with the language in the Clean Water Marina section. The motion was seconded by Councilmember Smukler and carried 5-0. A-7 STATUS REPORT OF A MAJOR MAINTENANCE & REPAIR PLAN (MivMRP) FOR THE EYISTNG WASTEWATER TREATMENT PLAN; (PUBLIC SERVICES) Councilmember Smukler pulled this item to get a bit more dialogue about his recent tour of the plant which focused on the items in the major maintenance and repair plan including headworks and the screening process. This new system we will be installing will allow for products to be screened out earlier and have less of an impact on the system. He also spoke on the location of the lift station for the new WRF. There is the potential for maintaining and modifying the existing headworks to remain which will be a decision needed to be made in the future. ® Public Services Director Rob Livick discussed the potential of retaining the existing headworks- facility and retool it in some form of pump station. There are some plusses and minuses with doing that. While there could be cost savings, there could also be regulatory and physical hurdles to pass. That area is also deep within the flood plain so would need to have significant improvements made for flood protection. is MOTION: Councilmember Smukler moved to approve Item A-7, status report of a 1/LMRP for the existing WWTP. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. A-10 CONSULTANT SERVICES AGREEMENT WITH RR -NI DESIGN GROUP FOR DESIGN. PERMITTING AND ASSOCIATED ENVIRONMENTAL SERVICES FOR MORRO CREEK NfULTI-USE TRAIL AND BRIDGE PROJECT: (PUBLIC SERVICES) Councilmember Smukler pulled this item for public information. He also spoke on the timeline in the contract whose language gives us the opportunity for strong public participation. He was under the assumption that there would be work done on the northern side of the creek around the "pit" but due to funding we won't be able to complete any. He wanted to ensure we didn't end up in a situation where the south side looks great and complete but that the north side looks neglected. He would also like to see us anticipate future improvement needs. 5 MINUTES - b10RRO BAY CITY COUNCIL- JULY 9, 2013 Public Services Director Rob Livick will work with the consultant to see if we/they can ® accommodate future improvements in the northern end without affecting any major changes in the price. He feels there may be ways to incorporate these improvements into the planning document. MOTION: Councilmember Smukler moved to approve Item A-10, the consultant agreement with RIUM Design Group for designing, permitting and associated environmental services for the Morro Creek Multi -use Trail and Bridge project. The motion was seconded by Mavor Irons and carried 5-0. A-11 RESOLUTION NO. 41-13 ADOPTING 2013/14 ivLASTER FEE SCHEDULE: (ADMINISTRATIVE SERVICES) Councilmember Christine Johnson pulled this item to have Administrative Services Director Susan Slavton discuss an edit needed on Footnote 6 on page 7 — Impact Fees. Ms. Slayton stated that the note in question was carried over from the prior Master Fee Schedule and that note should have been red -lined out based on Resolution No. 14-13 and 16-13 which rescinded the reduced impact fees. In fact she will also be removing Note 10 as well. Councilmember Christine Johnson also asked Harbor Director Eric Endersbv to discuss 2 items in the Master Fee Schedule. The first was City Moorings Monthly and why they were lower than the market rate. Mr. Endersbv responded that the rate increases are tied to the CPI whereas the market rates prices are based on demand. In this case, the City is bringing up the fees is incrementally over the course of years in an effort to catch up to the market rate. The second fee in question is the Master Lease Approval Fee which is a new fee. Mr. Endersbv explained that this S810 Master Lease Approval Fee has been implemented in an attempt to recoup more of the staff costs associated with a lease coming to the end of its time. This new fee is being proposed as the new process is more time consuming and costs more to implement. El MOTION: Councilmember Christine Johnson moved to approve Resolution 41-13. adopting the 2013/14 Master Fee Schedule as amended. The motion was seconded by Mayor Irons and carried unanimously 5-0. Councilmember Nancv Johnson stated that while discussions on items are very important, the Consent Agenda is not the place for them. When there are items that need to be discussed they should be placed under Unfinished Business or as Discussion Items. it is her understanding that Consent Items are things that we can more easily approve and not require extensive dialogue. B. PUBLIC HEARINGS - NONE C. UNFNISHED BUSNESS C-1 CONSIDERATION OF REDEVELOPMENT PROJECTS PROPOSED FOR LEASE SITES 62/62W (KAYAK HORIZONS — KRUEGER) AND 63-64/63W-64W (GRAY'S INNI - GRAY); (HARBOR) 3 MINUTES - MORRO BAY CITY COUNCIL - JULY 9. 2013 Harbor Director Eric Endersby presented the staff report. ® Dennis Krueger. lease site holder at Kayak Horizons. stated that he has been the leaseholder since 2004. he loves what he does and would like to continue to do it. After lookingat the Waterfront Master Plan. he understands what the City is trying to accomplish with their waterfront plan with the setbacks, view corridors and walkways and is prepared to do that. He also realizes a big concern for the City is that there are lots of leaseholders located in a small area and there is a need for them to work together. He has met with the Gray's Inn proposed leaseholders and he has a good picture of what can be done on his property and will work with neighboring lease sites to make it happen. He realizes that ADA will have to be dealt with. He also realizes that everyone will have to work together which should be what everybody's goal should be. His end project will look very nice as well as give the properties the privacy they need. Proposed Lease Site holder for Gray's Inn. Tamara Gray Baston made her presentation. She and her husband Todd are 'very interested in purchasing Gray's Inn and continuing the lease past its 5 years. They have met with Abba Imani and Dennis regarding the mandated improvements needed in the property. Their proposal is very general because they are a bit in the dark about the specifics the City needs but are willing to put those together as they progress. Councilmember Smukler asked them to review some of the improvements that they have proposed. Ms. Bastoh spoke on their proposal which includes the waterfront pedestrian walkway on the waterfront side. connecting the walkway from Abba Imam's site to Kayak Horizons. enhancing the view corridor from the street to the waterfront walkway - the view is already there ® in the 2"d story. the boardwalk states it's been reduced to 5 feet. they will be maintaining the slips as well as improving the ADA compliance standards of the slips, they also plan on making some ADA adjustments in at least one of the room's restrooms. It is their intent to negotiate a long tetra lease, initially taking over Josie's last 5 years and then would like to see an extension of at least 1 5-20 years. Councilmember Lease ensured that there was appropriate parking for the project to which Ms. Baston stated there were 3 parking spots on site as well as 3 City parking spaces. Councilmember Christine Johnson spoke on the reduction on Item E — Boardwalk reduction to 5 feet. The architect for the proposal. Gene Doughty, stated that the 5 foot on the Boardwalk is on the site to the north by Abbas. They are proposing a minimum of 8 foot and probably 10 feet in the remaining area. He also stated that the structure is only 20 years old and doesn't feel there is any need to knock it down and reconstruct it. Mayor Irons opened up public comment for Item C-1. Keith Swanson, son-in-law of the current Gray's Inn owner thanked staff for their patience with this process and appreciates the fact that the City has worked with them getting this back in line. Gray's Inn has a great reputation in this community and is hopeful that that can continue. He feels confident with the new leaseholders that they have a dedication just like Bob and Josie did. ® The public comment period for Item C-1 was closed. 7 MINUTES - MORRO BAY CITY COUNCIL - JULY % 2013 Mavor Irons established that the first course of business was to determine whether or not these ® sites should be looked at as separate sites or to combine them and go out for an RFP. Councilmember Nancy Johnson feels that an RFP should be sent out with the option for combining the sites. We have a highly underutilized piece of property in the heart of the Embarcadero. Councilmember Smukler is not in favor of combining sites. He feels they are both unique sites and we have current proposals for both and each proposal satisfies the City commitments such as the harborvalk. Both sites are in good condition. He is not interested in pursuing an RFP for combination. Councilmember Leage wants to give the people the chance with each proposal. Both Kayak Horizons as well as Gray's Inn should each have the right to bring us a plan and he likes the potential of the small unique lease sites. Gray's Inn has a long history of people coming for years. He's definitely for keeping them separate. Councilmember Christine Johnson agrees with keeping the lease sites separate. We have 2 unique sites and she is in favor of keeping them that way. She is impressed with the vision of the two applicants and the time they took to research what the City is hoping to do with the Waterfront Master Plan. Mavor Irons agrees that it's important to keep the lease sites separate for many of the reasons already stated. We have 2 sound sites. ® The majority of Council would like to see the lease sites looked at separately. The Council then began to discuss the Kavak Horizon site. Councilmember Leage is very much against sending this out for RFP, he'd rather see a proposal brought forward and give the people a chance to do the things being proposed. Councilmember Christine Johnson is in agreement and is also impressed with the thoughtful proposal. ',vtr. Krueger has been very proactive in meeting with neighbors; especially those under construction right now to get estimates on what things will be costing_: he seems to be a very motivated lease holder. Councilmember Nancy Johnson stated that of the 2 proposals; she feels that the Kavak Horizon proposal is better. She stated he needs to do something about the 2"d floor and ensure it is used for permitted visitor serving uses. Councilmember Smukler agrees with all comments made so. far. He has spoken with Mr. Krueger about the use of the 2"d floor and it is his expectation that the final proposal will have a visitor serving use. He too feels that a strong component is Mr. Krueger's proactive .work with his neighbors.. Mavor Irons has concerns about being able to maximize the use of the property, especially the 2"d floor. He also stated there are 2 parking spaces that are not necessarily being utilized and MINUTES - MORRO BAY CITY COUNCIL -JULY 9, 2013 wondered if they could become some kind of public benefit. As the majority of Council is in ® favor of moving forward and not sending this out for RFP. he would like to send the message that through the negotiation process, we see something that maximizes this lease site's 2Id floor and /or parking spaces. Councilmember Leage stated that the Embarcadero has always had a real problem with requiring visitor serving on the 2°d floor as not many have worked. Both Councilmembers Smukler and Nancv Johnson feel we need to remain strong on keeping a visitor serving business on the 2"d floor. MOTION: Councilmember Smukler moved to accept the preliminary lease holder proposal for lease site 62-62 W. Kayak Horizons and direct staff and Mr. Krueuer to work towards an in-depth proposal and bring back for concept plan approval at the Planning Commission level and then for City Council approval. The motion was seconded by Councilmember Leage and carried unanimously 5-0. Discussions regarding Gray's Inn began regarding negotiating with the proposal they have or going out for RFP. Councilmember Nancy Johnson didn't feel that the proposal was acceptable as the amount of work being proposed didn't equate to an additional 15-20 years on a lease site. Councilmember Smukler felt that the basic foundation of the proposal was good. They are ® looking to satisfy all the standards we have for improvements on the boardwalk side as well as the harborwalk side in addition to the viewshed. He doesn't feel the site would be compatible to a large expansion of rooms. He is willing to move forward with this proposal; if there was a failure in the details. it can be brought back and sent out for RFP if necessary. Councilmember Leage agrees with Councilmember Smukler completely. He would like to move on with this and let these people come back with ideas they have. The lease site isn't that large. if they make improvements, they will be able to demand more in rents which will bring up the City's revenues. Councilmember Christine Johnson echoed manv of Councilmember Leage's sentiments. Grans Inn is almost always full. She wants to recognize the Bastons are wading into new waters and that isn't a simple process. Considering that, if you look at the aspects of their proposal, it hits the bullets that we have required. She also believes that they will find more improvements that need to be done as they dig further. She is comfortable in moving forward as this is still the initial phase; we can still come back and issue an RFP at that point. She is very impressed with their proactive outreach to the neighbors. Mavor_Irons feels that this is a very general proposal. He instinctively wondered why we are considering a lease purchase when the current leaseholder doesn't want to continue on; we should probably go to RFP and see what else is out there. He feels it's the Council's duty to take care of the fiduciary responsibility of the lease site. He realizes where the Council majority lies; ® he is pleased with the overall proposal as it does address all the key points and he likes the 9 MINUTES - MORRO BAY CITY COUNCIL - JULY 9, 2013 outreach to the neighbors but he is still hesitant. With that, he will go along with his colleagues on Council and agree to move forward with this, realizing it can go to RFP if necessary. City Attorney Rob Schultz procedurally discussed the process of an Assignment and Assumption Agreement. As we do not negotiate new leases with potential buyers; the assignment has to come first. The first procedure that would happen if an RFP wasn't gone out for would be to wait for the assignment and assumption of lease, then the new owners would file their project with the planning department which would be followed up with lease terms / lease negotiations. Councilmember Smukler is feeling inspired to move this forward, everything so far gives him the feeling this will .be successful going out for RFP increases the risk of not completing the assignment process. Mayor Irons requested clarification from Council as to go out for RFP or to direct staff to work with the applicant towards an assignment. klayor Irons, with consensus from Council, reopened up public comment for Item C-1. Keith Swanson stated that they have an interested party wanting to purchase the business; they also want to preserve the time in order for the process of the assignment of the lease; in order to move forward they need to be assured that the City supports them as the buyers. The public comment period for Item C-1 was closed. ® Mayor Irons stated that the applicant is willing to take on the risk of this process. Instinctively; the wav to go on this is to go out for RFP. Councilmember Leage feels that if people are willing to purchase the business with a certain amount of risk; he wants them to have a shot and does not want to go out for RFP. He feels the risk is veto minimal. Councilmember Christine Johnson stated that the current leaseholder, who doesn't want to have the lease anymore, has found a potential purchaser and that potential purchaser has the vision for what we would want on the Embarcadero. The willingness of both parties involved to make a proposal to the City that contains pretty much everything we want has swayed her away from going to the RFP. Councilmember Nancy Johnson thinks we should proceed with the assignment recommendation to purchase then go back and look at the RFP situation. Councilmember Smukler is in agreement with both Councilmembers Christine Johnson and Leage. The proposal is clear. Their compatibility with the vision for the site, the history of the site and the future of the site seems like a very good fit. He would like to move the towards assignment process. [to] MINUTES - MORRO BAY CITY COUNCIL - JULY 9. 2013 MOTION: Councilmember Nancv Johnson moved to direct staff to proceed with the assignment recommendations and at this point, not go out for an RFP. The motion was seconded by Councilmember Leage and carried unanimously 5-0. D. NEW BUSINESS D-1 RESOLUTION NO. 39-13 APPROVING THE APPLICATION FOR GRANT FUNDS FOR THE LOCAL COASTAL PROGRAM SEA LEVEL RISE ADAPTATION GRANT FOR UPDATES TO THE LOCAL*COASTAL PLAN UNDER THE AUTHORITY OF THE OCEAN PROTECTION ACT AND REVIEW" THE CITY WORK PLAN FOR THE GENERAL PLAN/ LOCAL COASTAL PLAN UPDATE: (PUBLIC SERVICES) Public Services Director Rob Livick presented the staff report with added input from Planning Manager Kathleen Wold. The public comment period for Item D-I was opened; seeing none, the public comment period was closed. Mayor Irons stated as far as tonight noes. this needs to move forward so that it can be submitted by Monday. He would also like to see this come back to Citv_ Council for a discussion of the advisory board/sub-committee concept, similar to the 2020 sub -committee, whose members would stick to this all the wav through from the start to the end. The committee would be advisory in nature and would provide continuity and outreach to the public throughout the ® process. Councilmember Leage doesn't believe in the concept of sea level rise. Councilmember Christine Johnson is pleased to see the City pursuing all grant opportunities; she is pleased to see the close collaboration with the California Coastal Commission; and, she is pleased to see the Work Program for the GP and the LCP update in this item as well. She stated that this is one of the major City goals. MOTION: Councilmember Nancv Johnson moved to adopt Resolution 39-13, authorizing a S250,000 grant application. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. D-2 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS AND DISCUSSION; (ADMINISTRATION) City Manager Andrea Lueker presented the staff report and timeline. Councilmember Smukler was concerned with the August 6. 2013 date for the I" public workshop and hoped we could schedule it for the following week. That would give us an additional Council meeting which could provide for more public participation as well as allow for more people to be in town. His proposed date for the workshop would be August 15, 2013. ® There was Council majority to move the I" public workshop to August 15`s. MRNUTES - MORRO BAY CITY COUNCIL - JULY 9. 2013 The public comment period for Item D-2 was opened: seeing none, the public comment period was closed. Councilmember Christine Johnson is pleased that we moved the workshop to the 1 5th as we will have had a Council meeting on the U`" and we will be back in full session: she feels by August 15'h the residents summer plans will have wound down. Councilmember Leage feels we should shoot for September in an effort to wait for everybody to Qet back from vacations. Mavor Irons stated that if we push meetings out too far, we start losing the ability to stay on schedule. A majority of the Council is present on the 15'' and hopefully more of the public will be back from vacations. Also. Rickenbach outreach staff member. Debbie Rudd stated that she will be available for a move to the 1 S'h. Councilmember Smukler would also like to ensure that we have outreach efforts for this I" workshop: all advisory boards notified with a strong invitation to them that they could share as well as support of the consultant. There was no action taken on this item. E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS Mayor Irons requested a discussion and formation of a Cite Council Subcommittee / Advisory Board for the General Plan / LCP Update: Councilmembers Christine Johnson, Nancy Johnson and Smukler concurred. Councilmember Smukler requested a discussion about options to reduce unpermitted and illegal fireworks for 4`s of July, 2014; Councilmembers Christine Johnson and Nancy Johnson concurred. Councilmember Smukler requested evaluating options for Morro Transit weekend coverage during winter months following the end of the trolley season with the hopes of the item going to PWAB. entail a rider survev and then bringing it back to Council: Mayor Irons and Councilmember Christine Johnson concurred. ADJOURNMENT The meeting adjourned at 8:45pm. Recorded by: Jamie Boucher City Clerk 12 MINUTES- MORRO BAY CITY COUNCIL -JULY 9.2013 City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to thepreservation 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 CLOSED SESSION MEETING TUESDAY, JUNE 25, 2013 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER SUMMARY OF CLOSED SESSION ITEMS — The Mayor will read a summary of Closed Session items. CLOSED SESSION PUBLIC COMMENTS — Members of the public may address the City Council on any matter that is listed on this Closed Session agenda. Unless additional time is ® authorized by the City Council, remarks shall be limited to three minutes. THE CITY COUNCIL WILL MOVE TO CLOSED SESSION CS-1 CONFERENCE WITH LEGAL COUNSEL DUE TO ANTICIPATED LITIGATION — GOVERNMENT CODE SECTION 54956.9(b): Exposure to litigation exists based upon existing fads and the adNice of legal counsel as to two matters. • Parties: First American Title Company/First California Bank and City of Morro Bay • Parties: Burton and City of Morro Bay CONVENE TO -OPEN SESSION — Announcement of reportable action from closed session, if any. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. DATED: June 20, 2013 ana Swanson, Deputy City Clerk ® IN COMPLIANCE WITH THE AMERICANS WITH DISABILITY ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. MINUTES — MORRO BAY CITY COUNCIL ® SPECIAL CLOSED SESSION MEETING — JUNE 25, 2013 CITY HALL CONFERENCE ROOM — 5:OOPM PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Leage Noah Smukler STAFF: Andrea Locker Robert Schultz Rob Livick Rick Sauenvein AGENDA NO: A-2 MEETING DATE: 7/9/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager City Attorney Public Services Director Capital Projects Manager ESTABLISH QUORUM AND CALL TO ORDER SUMMARY OF CLOSED SESSION ITEMS - The Mayor read a summary of Closed Session items. CLOSED SESSION PUBLIC COMMENTS - Mayor Irons opened the meeting for Public Comment. Cathy Novak spoke on behalf of Joseph Goodwin and Roandoak of God, asking Council to 1) ® Deny the Burton request to construct a fence, 2) Determine there is a non-exclusive easement and formalize this to prevent future property issues, and 3) Record the Utility Easement from the November 2010 Agreement. The City Council moved to Closed Session and heard the following items: CS-1 CONFERENCE WITH LEGAL COUNSEL DUE TO ANTICH'ATED LITIGATION — GOVERNMENT CODE SECTION 54956.9(b): Exposure to litigation exists based upon existing facts and the advice of legal counsel as to two matters. • Parties: First American Title Company/First California Bank and City of Morro Bay • Parties: Burton and City of Morro Bay CITY COUNCIL CONVENED TO OPEN SESSION — The City Council convened to open session; City Attorney, Rob Schultz reported that no reportable action under the Brown Act was taken. ADJOURNMENT The meeting adjourned at 5:35pm. orded ® Dana Swanson Deputy City Clerk ® Cityof Morro Bay Y City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of die 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 TUESDAY, JUKE 25, 2013 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 CLOSED SESSION REPORT VLAYOR & COUNCILMEIVIBERS' REPORTS. ANNOUNCEMENTS & PRESENTATIONS ® PUBLIC PRESENTATIONS — "SLOCOG Presentation on the US 101 Mobility Studv" PUBLIC COMMENT - Members of the audience wishing to address the Council on City business matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda. but unable to stay for the item, may also address the Council 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 anv 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 AGENDA Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION MEETING HELD ON INLAY 30: 2013; (CITY ATTORNEY) RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION MEETING HELD ON JUKE I I, 2013: (CITY ATTORNEY) RECOMMENDATION: Approve as submitted. A-3 APPROVAL OF THE CITY COUNCIL MINUTES FOR THE REGULAR COUNCIL MEETNG HELD ON JUNE 11. 2013; (ADMINISTRATION) ® RECONUMENDATION: Approve as submitted. A-4 APPROVAL OF THE CITY COUNCIL MINUTES FOR THE BUDGET WORKSHOP HELD ON JUNE 12: 2013; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-5 RESOLUTION NO. 37-13 ADOPTING THE FISCAL YEAR 2013/14 OPERATING BUDGETS; (.ADMINISTRATIVE SERVICES) RECOMMENDATION: Approve Resolution No. 37-13 Adopting the Fiscal Year 2013/14 Operating Budgets. A-6 RESOLUTION NO. 36-13 AUTHORIZING SAN LUIS OBISPO COUNTY ASSESSOR TO ASSESS AMOUNTS DUE ON DELINQUENT SOLID WASTE COLLECTION ACCOUNTS AS TAX LIENS AGAINST THE PROPERTIES_: (PUBLIC SERVICES/ADMINISTRATIVE SERVICES) RECOMMENDATION: Approve Resolution 36-13. ® A-7 REVIEW AND SUPPORT THE AMENDED MEMORANDUM OF UNDERSTANDING BETWEEN THE SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT. ESTERO BAY COMMUNITY POOL FOUNDATION, AND CITY OF MORRO BAY: (RECREATION & PARKS) RECOMMENDATION: Review the attached information, and support the amended Memorandum of Understanding (MOU) between the San Luis Coastal Unified School District, Estero Bay Community Pool Foundation, and City of Morro Bay to establish a community pool in the City of Morro Bay. A-8 APPROVAL OF LICENSE AGREEMENT BETWEEN THE CITY OF MORRO BAY AND LEMOS FEED & PET SUPPLY: (CITY ATTORNEY) RECOMMENDATION: Approve the License Agreement with Lemos Feed & Pet Supply to allow for the use of City property located next to the southbound onramp for Highway 1 at Main Street, and adjacent to the property owned by Lemos Feed & Pet Supply at 1320 Nlain Street. B. PUBLIC HEARINGS B-1 RESOLUTION NO. 33-13 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND ® LIGHTNG MAINTENANCE ASSESSMENT DISTRICT: (RECREATION & PARKS) RECOMMENDATION: Complete the public protest hearing and approve the levy of the annual assessment for the North Point Natural Area Landscaping and Lighting Maintenance District. B-2 RESOLUTION NO. 34-13 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT: (RECREATION & PARKS) RECOMMENDATION: Complete the final public hearing on the annual levy of assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District, and then adopt Resolution No. 34-13 confirming the levy of assessment for Fiscal Year 2013-14. C. UNFINISHED BUSINESS - NONE D. NEW BUSINESS D-1 CONSIDERATION OF FUTURE OF LEASE SITE 69-70/69W-70W. MORRO BAY AQUARIUM (DEAN AND BERTHA TYLER): (HARBOR) ® RECOMMENDATION: Council to consider the alternatives and provide staff direction. 3 D-2 UPDATE AND IDENTIFY THE CITY'S WAY-FNDNG SIGNAGE INVENTORY AND STATUS OF SIGNAGE IMPROVEMENT EFFORTS: (ADMNISTRATIONIPUBLIC SERVICES/RECREATION & PARKS) RECOWNIENDATION: Receive this report regarding the status of the following signage issues: directional signage for the Visitor's Center within the City; update from Caltrans regarding signage from Highway I to the Visitors Center; and, an update regarding the signage from the State Park(s) to the Visitors Center. E. COUNCIL 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 772-6205 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. 91 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 25, 20L3 VETERAN'S MEMORIAL HALL — 6:OOP.M. PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Lease Noah Smukler STAFF: Andrea Lueker Robert Schultz Jamie Boucher Dana Swanson Amv-Christey Steve Knuckles Susan Slavton Eric Endersby Joe Woods Rob Livick is Mayor Irons called the meeting to order at 6:00 p.m. ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE AGENDA NO: A-3' MEETING DATE: 7/9/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager Citv Attomev Ciry Clerk Deputy City Clerk Police Chief Fire Chief Administrative Services Director Harbor Director Recreation & Parks Director Public Services Director CLOSED SESSION REPORT — City Attorney Robert Schultz reported that City Council met in a Special Closed Session on June 25. 2013 on the following item: Conference with legal counsel due to anticipated litigation. Government Code Section 54956.9(b): Exposure to litigation exists based upon existing facts and the advice of legal counsel as to two matters - First American Title Company/First California Bank and City of Morro Bay; and. Bruton and City of Morro Bay; no reportable action under the Brown Act was taken. ivLAYOR AND COUNCILMEMBERS' REPORTS, ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS - "SLOCOG Presentation on the US 101 Mobility Study' SLOCOG Presentation on the US 101 Mobility Study SLOCOG's Reuional Transportation Planner Geiska Baker Velasquez and Kendal Flint of Flint Strategies spoke on the upcoming US 101 Corridor Mobility Master Plan. SLOCOG, Caltrans and the Cities and County are working together to make sure our investments on the US 101 Corridor are the right ones for our communities. Thev are taking public comment through a variety of ways and based on that input and traffic analysis, will suggest improvements which ® will then help SLOCOG choose which projects to fund over the next 25 vears. ® PUBLIC COMMENT Summer Birchell, new owner of Summer Expressions Hair Salon, presented the Morro Bay business report. Located at 735 Napa Street, this is a completely remodeled facility featuring hair styling for women. men and children. They are open Tuesday — Fridays from 9am-5pm; Saturdays and Mondays from 9am-]pm: and Sundays by appointment walk-ins are welcome. Summer believes the kevs to success are great customer service, great prices and a great product. Hilary Grant. writer and producer of "Botso". a movie about Botso Korisheli advertised the showing of the movie at the Bay Theater on Saturday. July 6"' and Sunday_. July 7a' at noon. All profits from their project go to support scholarships for young musicians through the San Luis Symphoriv. Botso, a Morro Bay_ local, has taught over 10,000 children and has lived his life "daring to do enoueh". Elizabeth Scott Graham. also with the Botso film group, feels that this film will be big for klorro Bay, just as the film Sideways was big for Santa Ynez. They are currently in need of funds for marketing, posters, contract lawyers. and music rights. and asked the Council to underwrite the showing of the film at the Bav Theater at the cost of $800. Gary Hixon spoke about his many television projects, he felt the Aquarium is cool and he feels that everybodv is doing a great job. Susan Heineman advertised the upcoming l0a' Annual Estero Bay Garden BBQ being held on ® Sunday. June 30`' at the Estero Community Garden from 1-4pm. There will be a chicken bbq and live music. Tickets can be purchased at Coalesce Bookstore or at the event. Julie Thomas advertised their new mobile telephone app called Fishline which is now available for all smart phones and tablets. Fishline was developed partially with the support of a grant from the Central California Cable Fisheries Liaison Committee. The purpose of the app is to make it easy for fishermen. seafood markets and restaurants to announce to the public that they have fresh local seafood. Trina Dougherty read a letter from Robert "Red" Davis thanking the Council for including a donation to the library remodel project in this year's budget. yShe stated that the remodel campaign is coming along very well and you can check the progress and make a donation on their website: www.mbfol.org. She also spoke of the tremendous success of the ECO Rotary Fair. They reached their goal of 105 solar reading lights for the orphanage in Ghana as well as 50 lights for the San Luis Obispo homeless shelter. It was a fun, educational and focused event. She also thanked the sponsors for their help. Judy Heintzelman, President of Morro Bay Senior Citizen's Inc. let the public know that they have been awarded the SLO County Senior Program of the Year for 2012. She thanked both Heather Salver -Frith and Joe Woods for their continued support. Dawn Beattie has yet to hear from staff about her request made 6 weeks ago. She is looking for who to contact to rebuild the Overlook at Cloisters. She would like an update. MINUTES - MORRO BAY CITY COUNCIL-JUNE 25, 2013 ® Melissa Peters of SLO Tobacco Control Program of SLO County congratulated Casa de Flores Apartments for their commitment to provide a smoke free livine to their tenants. She asked that if anybody were interested in tobacco free policies to contact their office at 781-5564. Mayor Irons closed the public comment period. A. CONSENT AGENDA Unless an item is pulled for separate action by the City Council. the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MNUTES FOR THE SPECIAL CLOSED SESSION MEETING HELD ON MAY 30, 2013: (CITY ATTORNEY) RECONVOENTATION: Approve as submitted. A-2 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CLOSED SESSION MEETING HELD ON JUNE 11. 2013; (CITY ATTORNEY) RECON13VIENDATION: Approve as submitted. A-3 APPROVAL OF THE CITY COUNCIL MINUTES FOR THE REGULAR COUNCIL ® MEETNG HELD ON JUNE I I, 2013: (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-4 APPROVAL OF THE CITY COUNCIL MINUTES FOR THE BUDGET WORKSHOP HELD ON JUNE 112013: (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-5 RESOLUTION NO. 37-13 ADOPTING THE FISCAL YEAR 2013/14 OPERATING BUDGETS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Approve Resolution No. 37-13) Adopting the Fiscal Year 2013/14 Operating Budgets. A-6 RESOLUTION NO. 36-13 AUTHORIZNG SAN LUIS OBISPO COUNTY ASSESSOR.TO ASSESS AMOUNTS DUE ON DELINQUENT SOLID WASTE COLLECTION ACCOUNTS AS TAX LIENS AGAINST THE PROPERTIES: (PUBLIC SERVICES/ADMINISTRATIVE SERVICES) RECOMMENDATION: Approve Resolution 36-1 3 A-7 REVIEW AND SUPPORT THE AMENDED MEMORANDUM OF ® UNDERSTANDING BETWEEN THE SAN LUIS COASTAL UNIFIED SCHOOL 3 MINUTES - MORRO BAY CITY COUNCIL -JUNE 25, 20I3 DISTRICT, ESTERO BAY COM,tifUNITY POOL FOUNDATION, AND CITY OF ® MORRO BAY: (RECREATION & PARKS) RECOMMENDATION: Review the attached information, and support the amended Memorandum of Understanding (MOU) between the San Luis Coastal Unified School District, Estero Ba_v Community Pool Foundation_. and City of Morro Bay to establish a community pool in the City of Morro Bay. A-8 APPROVAL OF LICENSE AGREEMENT BETWEEN THE CITY OF MORRO BAY AND LEMOS FEED & PET SUPPLY: (CITY ATTORNEY) RECOMMENDATION: Approve the License Agreement with Lemos Feed & Pet Supply to allow for the use of City property located next to the southbound onramp for Highway 1 at Main Street. and adjacent to the property owned by Lemos Feed & Pet Supply at IJ20 Main Street. Mayor Irons opened up the public comment period for items on the Consent Calendar: seeing none, the public comment period was closed. Councilmember Christine Johnson pulled Item A-3, Councilmember Nancv Johnson pulled Item A-5. Councilmember Smukler pulled Item A-7. and Mayor Irons pulled Item A-8 from the Consent Calendar. ® MOTION: Councilmember Smukler moved the City Council approve Items A-1. A-2. A-4 and A-6 of the Consent Calendar as presented. The motion was seconded by Councilmember Nancy Johnson and carried unanimously 5-0. I� A-3 APPROVAL OF THE CITY COUNCIL MINUTES FOR THE REGULAR COUNCIL NLEETNG HELD ON JUNE 11. 2013: (ADMINISTRATION) Councilmember Christine Johnson pulled this item to point out a tvpographical error on page 4. Item A-4; it read "Councilmember `der pulled this item..." it should have read "Councilmember Christine Johnson pulled this item..." Mavor Irons also requested that the City Clerk review the recording on Item D-3 regarding Secondary Units and brine back a revised accounting of the minutes. A-5 RESOLUTION NO. 37-13 ADOPTING THE FISCAL YEAR 2013/14 OPERATING BUDGETS: (ADMINISTRATIVE SERVICES) Councilmember Nancy Johnson pulled this item to state that she has been giving much thought on her vote to give expenditures of City funds from the general fund to the variety of groups. After discussions with her constituents and hours of thought. she has changed her mind and as a result. will be voting no on the budget 4 MINUTES - MORRO BAY CITY COUNCIL -JUNE 25, 2013 ® MOTION: Councilmember Smukler moved the City Council approve Item A-5, adopting the fiscal year 2013/14 operating budgets. The motion was seconded by Councilmember Christine Johnson and carried 4-1 with Councilmember Nancy Johnson voting no. A-7 REVIEW AND SUPPORT THE AMENDED MEMORANDUM OF UNDERSTANDING BETWEEN THE SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT. ESTERO BAY COMMUNITY POOL FOUNDATION_. AND CITY OF viORRO BAY: (RECREATION & PARKS) Councilmember Smukler pulled this item as he was concerned that when this item was brought forward. Council had made a point to have staff reach out to the County to ensure they would be a part of this to the greatest possible extent. For the record. he wants to continue to try and bring the County into the program and the effort and also say that for the County staff to move forward with support, we need to continue to reach out to our County constituents. especially Supervisor Gibson. MOTION: Councilmember Smukler moved the City Council approve the MOU between the SLCUSD. Estero Bay Community Pool Foundation and the City of Morro Bay. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. ® A-8 APPROVAL OF LICENSE AGREEMENT BETWEEN THE CITY OF VIORRO BAY AND LEMOS FEED & PET SUPPLY; (CITY ATTORNEY) Mayor Irons asked City Attorney Rob Schultz as far as the contract goes, is there consideration for a repair clause. Mr. Schultz responded that Mr. Lemos has to return the land in the exact same condition. MOTION: Mayor Irons moved the City Council approval of Item A-8. approval of license agreement between the City of Morro Bay and Lemos Feed and Pet Supply. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. B. PUBLIC HEARINGS B-1 RESOLUTION NO. 33-13 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING NIANTENANCE ASSESSMENT DISTRICT: (RECREATION & PARKS) Recreation & Parks Director Joe Woods presented the staff report. Mayor Irons opened up the public comment period for Item B-1; seeing none, the public comment period was closed. MOTION: Councilmember Nancy Johnson moved approval of Item B-1 directing the ® levy of the annual assessment for the North Point Natural Area and Landscaping and 5 MINUTES - MORRO BAY CITY COUNCIL - JUNE 25, 2013 ® Lighting Maintenance Assessment District. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. B-2 RESOLUTION NO. 34-13 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT: (RECREATION & PARKS) Recreation & Parks Director Joe Woods presented the staff report. Mayor.lrons opened the public comment period for Item B-2. Dawn Beattie stated that every year, the Council receives a number of protest letters against this levy. She questioned how long she and her neighbors are supposed to solely fund a public park. She requested the City invest some general fund monies into Cloisters maintenance. Her issue is fairness; others only have to pay property tares even though thev have benefit of recreational areas. beach access. etc. Residents of the Cloisters have to pay greater property taxes as a result of their access as well as the assessment. She doesn't believe the developers intended for this assessment to go on in perpetuity. Instead she believes the developers in conjunction with the City were intending for increased property tax revenues to supplement and/or supersede the assessment for the Cloisters Park and surrounding area maintenance. John Lauffer hopes Council has had the opportunity to review his letter. He hopes that Council ® will exercise their dutv to represent the citizens and hohor their oath of office where they are swom to uphold the law. The law as its written is very clear; the City has the right to establish a special assessment district but has the responsibility to ensure that taxes collected are spent on a special benefit not available to the general public. He hopes Council will do the right thing and vote no tonight. The public comment period for Item B-2 was closed. Councilmember Christine Johnson stated that if she were currently under the assessment. she would want to ensure that the City .had proper oversight over the funds. She asked staff to continue the quarterly meetings at the end of the fiscal year, and to also include Administrative Services Director Susan Slayton in those discussions on the accountability of their expenditures. She also hoped to bring back the possibility of having a Councilmember serve as a liaison to the Cloisters. Councilmember Nancy Johnson understands and appreciates the. concern of the Cloisters' residents. The developers were granted several exceptions to be able to develop there; the property owners who bought property in the area, agreed to pay the assessment. We have added quite a bit of staff and they have made a significant amount of improvements. We need to vote to continue the assessment. Councilmember Smukler agrees with Councilmember Nancy Johnson. He has observed and been a part of the process to ensure that staff has is working on holding up our side of the process 6 MINUTES - MORRO BAY CITY COUNCIL-JUNE 25, 2013 ® with maintenance and transparency of the budget. He likes Councilmember Christine Johnson's suggestion of including Ms. Slayton at the end of year budget and financial meeting. Mayor Irons questioned the deferred maintenance account. He would like to see, perhaps in the Engineer's Report each year, have us incorporate the deferred maintenance schedule into the report. He also supports Councilmember Christine Johnson's comments. MOTION: Councilmember Nancy Johnson moved approval of Item B-2, directing the levy of the annual assessment for the Cloister's Landscaping and Lighting Maintenance Assessment District. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. C. UNFINISHED BUSINESS - NONE D. NEW BUSINESS D-I CONSIDERATION OF FUTURE OF LEASE SITE 69-70/69W-70W. MORRO BAY AQUARIUM (DEAN AND BERTHA TYLER); (HARBOR) Harbor Director Eric Endersby presented the staff report. Applicant Dean Tyler made a presentation. He stated that the building is safe; it was tested after ® the San Simeon earthquake. He also feels he should have been invited to participate in a meeting with the people from Avila. The facility has been remodeled three times. The Department of Agriculture makes the rules and regulations for tank depth and resting areas and they provide greater than what is required. They have made their tanks deeper. The first time they remodeled_. they shut the facility down which was a mistake. The next two times, they staved open and moved specimens from tank to tank; as such, people may not be aware that improvements were made. He has visited over 31 different aquariums over the years and many are smaller than ours. He stated that seals need depth and enough water but they don't need size. He feels they have done a lot of good things here. He hopes that Council will allow them to work with Nelson Company to provide a better project. He concluded by saving that all these things they are doing that have given them unfavorable publicity is coming from people that don't know what they are talking about. Mayor Irons opened up public comment for Item D-1. The following citizens spoke in favor of staff preparing and bringing back a Request for Proposal for the lease site: Lynda Merrill, Francesca Henderson, Holly Sletteland, Erika Satkoski, Sandra Jouglard. Jenny Jones, Lois Barber, Abe Perlstein, Chuck Dishmon, Laurence Vallens. Dr. Courtney Carman, Renee Rubin, Debbie Buckheim, Sarah Spengeman. Genete Bowen, Susan Tripp. Kim O'Bryan. Christine Husk. Mandy Davis. Briana Weise. Hunter Kilpatrick, Claudia Ferriday, Liz Ochoa, Karen Crolev, Lucille Craig, and Betty Winholtz. The following citizens spoke in favor of the City accepting the Leaseholder's proposal and ® authorizing staff to begin lease negotiations: Trudy O'Brien. Judy Cross, Steven Rebuck, 7 MINUTES - MORRO BAY CITY COUNCIL -JUKE 25. 2013 ® Jeremiah O'Brien, Susan Fortman. Lupe W illhite, Patti James. Debra Hesch. Bertha Oliver Hopkins. Sylvester. Melinda Rice, Edward Sylvester, Len Tyler, Tave Holland, Tom Rex, Leo Ramos and Ivfavor Irons met with the Tvlers as well as the Central Coast Aquarium: an invitation for the Tvlers to meet with the Central Coast Aquarium was also extended but never materialized. Mavor Irons also feels that having the opportunity to go out for UP, especially knowing that the Central Coast Aquarium is interested in this site is an opportunity that we should consider. It is still an aquarium: it would allow for carrying on the legacy that the Tvlers have built and still allows the Tvlers the opportunity to participate in the process. Councilmember Leage stated that the Tvlers have been dedicated to this business and the animals: the facility is tired: mavbe this is the time to brine something new in: he hopes there is a way to keep the Tylers involved and give them the respect they deserve. Councilmember Christine Johnson stated that all are probably in agreement that the aquarium needs some physical improvements. She hoped we could help the aquarium re -envision the next 50 years and continue a tradition here of helping others interpret what we live with in Morro Bay every single day: we have such a wide variety of wildlife. How can we help and also, how can we leverage this kind of interest to support and continue this kind of facility in Morro Bay that moves us in perhaps a different direction but join together and find something we can be proud of. She hopes there will be collaborative efforts on many organization's parts in support ® of the Tylers. Councilmember Nancy Johnson echo's Councilmember Leage's comments about the good work the Tvlers have done over the vears. She felt that since the Tvlers still have 5 years in their current lease_. we should give them 6 months to a year to work with someone to find a better proposal. Councilmember Smukler stated it's important to talk about what the direction should be if we go out for an UP. He wants to ensure we encourage, through UP language, an aquarium or marine education facility. He wants to see. thru the proposals, a better articulation of a vision, a financial plan, and be clear that retail and other uses aren't a priority for that site. Councilmember Leage also feels that Council should give the Tvlers more time as it wouldn't hurt the process. They could team up with somebody to come up with a great proposal. He agrees that it's important to keep it an aquarium or marine themed site. Councilmember Christine Johnson supports the UP process with clear staff direction and timeline for all involved. Councilmember Nancy Johnson feels we can all agree we want an aquarium but she doesn't feel we should be micromanaging what happens down there. She restated her desire to give the Tylers 6 additional months to come up with something far more adequate. E3 MINUTES - MORRO BAY CITY COUNCIL-JUNE 25, 2013 ® Councilmember Smukler feels it's important to go out for RFP as it still gives the Tylers the opportunity to participate. For us to have a'viable project in 2018, we need ensure. we move forward. We need to be explicit that revenue production/rents to the Harbor fund isn't a top priority. We should also be in discussion of what form of accreditation or standard of care would be involved in the next step of an aquarium/marine education center. Councilmember Leage stated that since the Tylers have an established business, they have a better chance of getting something completed by 2018. If we go, out for an RFP, we will be lucky to have something completed by 2030. Mayor Irons believes the RFP will allow the Tylers to be successful as the 6-9 months that this RFP process will take. is the amount of time it would take to put together a proposal. This will also allow the City the opportunity to see what the options out there are. Mayor Irons provided a synopsis of the details they hope to see in a proposal: that the RFP stipulates an aquarium/marine education center, provides a financial plan, establishes a turnaround time, and provides an accreditation component. MOTION: Mayor Irons moved to approve Alternate B. sending the lease site out to RFP with specific direction that directs that the RFP is for a marine education center/aquarium, accredited facility, provide a financial plan to ensure success, and turnaround time to deliver the product. The motion was seconded by Councilmember Smukler and carried 3-2 with Councilmembers Nancv Johnson and Leaee voting no. D-2 UPDATE AND IDENTIFY THE CITY'S WAY -FINDING SIGNAGE INVENTORY AND STATUS OF SIGNAGE IMPROVEMENT EFFORTS_: (ADMNISTRATION/PUBLIC SERVICES/RECREATION & PARKS) City Manager presented the staff report. Mayor Irons opened up the public comment period for Item D-2. Lucille Craig stated that we need more directional signage to the beaches. The public comment period for Item D-2 was closed. All Councilmembers thanked staff for putting this together. Councilmember Christine Johnson stated that with the new Director of Tourism and new Visitors Center there has been a lot of discussion of business owners and the Tourism Business members of how to get people into town. The Economic Development Committee did discuss signs at one of their prior meetings. Councilmember Smukler feels it is good we are moving forward with directional signage to the Visitors Center. he feels we should continue our work with the Economic Development Program to identify other key areas that they could bring back recommendations for our updates. He also ® thinks we need to research and find a way to get signage advertising Beach Access Points. 9 MINUTES - MORRO BAY CITY COUNCIL - JUNE 25, 2013 Councilmember Nancv Johnson would like to see increased use of banners in the banner poles. Mayor Irons stated he would like to see this move forward to the Public Works Advisory Board, maybe even with a workshop that would include our Economic Development group covering directional signage. He would also like to see us come up with a design guideline for what our signs are going to look like to include wav signage. He would like to see the event signage at City Park included in the discussion and public input. Councilmember Nancv Johnson wonders how we can clarifv how events get scheduled on the banners and incoming City signs billboards. Event signage is an important part of this issue that we want to forward. She supports this going to the PWAB with some of these comments we have. Councilmember Christine Johnson wanted to suggest a roadtrip to collect photos of signs from here to Cambria in an effort to find out how manv brown beach access signs there are that we can use in our talks with CalTrans. There was no action taken on this item. E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS Councilmember Christine Johnson requested discussion of naming a City Council liaison each year to the North Point and Cloisters Assessment Districts_: Mayor Irons and Councilmember Smukler concurred. Mayor Irons requested to bring back the concept of Aid to Agencies for discussion prior to the next budget process: Councilmembers Christine Johnson and Smukler concurred. Mayor Irons requested a discussion of the current Compact Infill Ordinance: Councilmembers Christine Johnson and Smukler concurred. Councilmember Leage requested a status update on Parking on Central Embarcadero; Mayor Irons and Councilmember Nancy Johnson concurred. ADJOURNMENT The meeting adjourned at 10:26pm. Recorded by: J ie Boucher City Clerk 10 MINUTES - NIORRO BAY CITY COUNCIL -JUNE 25. 2013 ® City of Morro Bay Morro Bay, CA 93442 (805) 772-6205 NOTICE OF PUBLIC BUDGET WORKSHOP NOTICE 1S HEREBY GIVEN that the Morro Bay City Council will be holding a Public Budget Workshop on Wednesday, June 12, 2013 at 5:00 p.m. to be held in the Morro Bay Veteran's Hall, 209 Surf Street, Morro Bay, California. The City Council will continue their review of the proposed budget for Fiscal Year 0 2013/2014. DATED: June 5, 2013 JamW Boucher, City Clerk IN CO11'IPLIANCE 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. ® MINUTES - MORRO BAY CITY COUNCIL BUDGET WORKSHOP — JUNE 12. 2013'r VETERAN'S MEMORIAL HALL — 5:OOP.VI. PRESENT: Jamie Irons Christine Johnson Nancv Johnson George Leage Noah Smukler STAFF: Andrea Lueker Jamie Boucher Rob Livick Amy Christey George Rees Eric Endersbv Susan Slayton Joe Woods Mayor Irons called the meeting to order at 5:00 p.m. ESTABLISH QUORUM AND CALL TO ORDER ® MOMENT OF SILENCE PLEDGE OF ALLEGIANCE AGENDA NO: A-4 MEETING DATE: 6/25/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager City Clerk Public Services Director Police Chief Fire Captain Harbor Director Administrative Services Director Recreation & Parks Director PUBLIC COMMENT - For Special Meetings. members of the audience may address the Council only on items that are listed on the agenda. John Dinunzio. the Economic Development Program Coordinator at the Chamber of Commerce thanked the Council for their leadership, cooperation and support. He stated that their commitment to economic development is to champion the voice and the value of the business community while moving our economy to new and brighter heights. Currently they are working with 10 potential new business accounts for Morro Bay. They have 2 businesses now operating out of the incubator program at the Chamber: watching these will provide a key benchmark to evaluating the overall performance. As a business resource center they are making relevant information available to business prospects: they are also adapting to new technology platforms. He concluded by hoping that Council will approve the $58,000 in the budget for the continued funding of the Chamber/Economic Development Program. Christine Rogers. the Economic Vitality Corporation's Program Manager reiterated their request for additional funding for the EVC. The EVC supports technology by enhancing broadband infrastructure. tourism. implementation of economic initiatives which support the clusters of opportunity. and direct business engagement ensuring all our businesses have access to the resources they need to thrive. This additional funding request is also related to the Economic ® Analysis Program which is a pilot project being undertaken with the County, providing economic analvsis of individual development projects and providing information related to jobs. earnings ® and sales: and information relative to short and long term planning. She thanked the Council for their continued support. Bruce Keogh. both a resident and Manager of the Citv's WWTP referenced the S90.000 contingency discussed at the last budget workshop meeting. He urged the Council to keep this S90.000 contingency in the budget to be used for good faith labor related negotiations. He is also concerned about salary compaction between the Management Unit; the POA and SEIU employees and looks forward to discussing this issue in upcoming negotiation meetings with the staff. There needs to be resolution of this issue for successful long term management strategy for the Citv. As a manager for the Citv; he is very concerned about the morale of City employees as well as recruitment and retention due to compensation. He also urged Council to consider revenue generation measures. Damn Scheck; Field Rep for SEIU Local 620 stated they have been at the bargaining table since February and understand that the City has difficult decisions to make. In years past; the employees have taken concessions and had contracts imposed on them. Members' wages are not keeping up with cost of living and health costs are rising. Members have given over the years; all thev are asking for is to be treated equitably and fairly. Mike Woods; Field Rep for SEIU Local 620 stated that he has been the representative for Morro Bay for the last 3 years and he has seen the City employees falling behind in salary. The employees have received no salary increase in the last 5 vears whereas the CPI has risen 11%. ® He asked Council to keep the S90;000 set aside in the budget for compensation purposes. He echoed that Morro Bay is one of the lowest paid employee groups in the County and the Citv ,�xRll end up as a training ground. He hopes the Council will make the employees a priority. Karin Moss; ivlorro Bay Director of Tourism spoke in hopes that Council will not make any cuts to their proposed 2013/14 budget. She hoped that Council recognizes the quantifiable in -roads made with the Destination; Local and Regional marketing campaigns. Any cuts to the marketing budget will definitely result in a reduction of the market share. Over the last six months. the Tourism Bureau has flourished into a "one stop shopping" resource producing marketing collateral materials for both tourism and local organizations. They have been proactive in assisting the community with media and community relations; event planning and promotion; targeted media pitching, social media and marketing consultation. She thanked Council for their ongoing support and is requesting these monies so that they can keep the Morro Bay brand consistently in the public eve. John Nlevers; member of the TBID and Tourism Bureau requested the Council continue their support for funding for the tourism effort at the same level as this year. He presented reasons for their request: —projecting to turn in, in excess of 2.2 million of TOT revenue to the City which is up S400;000 from 2010; —people don't recognize that a 10% increase in TOT equates to substantial growth in Economic Development for the City. Mike Mobley, City employee and SEIU Local 620 Steward stated that the S90;000 can ® potentially be used as a 3% salary increase. Last year SEIU had their contract imposed on them MINUTES - INIORRO BAY CITY COUNCIL BUDGET WORKSHOP—JUNE 12, 2013 ® and employees went through a tough time. He concluded by stating that the City's reserves are high. Dale Cullum. Morro Bay resident and member of the Police Officer Association (POA), stated that one of the City's top goals was to maintain core public safety services and incentives to retain safety employees. He stated that nearly half of the police staff are topped out and haven't received a raise or COLA in over 3 years. Officers are required to work mandatory_ over -time that vacancies have created. When an officer leaves. it definitely affects employees` morale and the agency becomes reactive vs proactive as it takes years for a new officer to be able to feel comfortable enough to handle the problems that come with a City. Jody Cos; representative of the POA is one of the department's newest members. Based on information provided at the last Closed Session regarding the history. high turnover. costs of training. etc. the feedback they received at their next negotiation meeting they felt was insulting. He urged the Council take a good faith look at the numbers provided. look at the high turnover rate and reconsider these in the negotiation process. Part of the problem is the CalPERS situation but that isn't happening for 3 years, irs going to be difficult for employees to pick up some of these costs without any type of cost of living increase. Robbyn Smith. Public Safety Dispatcher and representative of the POA. has worked for the City for 10 years. Their department spends 80% of the time with only 2 officers on duty. They have lost 5 officers and dispatchers over the last 2 Years, some of which were training officers. Due ® to their staffing levels. they have had to change plans. miss speical family occasions and cancel vacations more times then she can remember. Money isn't everything. being appreciated is also important. She would love to help work with Council to help find creative solutions. The public comment period was closed. CONTINUED DISCUSSION OF THE 2013/14 FISCAL YEAR BUDGET Citv Manager. Andrea Lueker presented a staff report based on questions Council had during the last budget workshop. Administrative Services Director Susan Slayton also presented additional information that Council requested from the prior workshop. There was Council discussion and then consensus on the following: —maintain the S90.000 built in the budget for ongoing employee negotiations —funding as requested in the body of the proposed/presented operating budgets Council then went onto discuss the various Outside Agency Funding requests. Councilmember Christine Johnson felt that giving the Friends of the Library the use of the City facility during their remodel would suffice as a"gift in kind": she felt that since the Housing ® Authority monies didn't come out of the general fund and instead from an Affordable Housing Fund. she's comfortable funding that: downtown restroom can almost be funded via a "pay it 3 MINUTES- MORRO BAY CITY COUNCIL BUDGET WORKSHOP -JUNE 12. 2013 ® forward" from a future sales tax revenue philosophy and can be funded through the S30.000 Council contingency fund for now: the 4 h of July is a feel good. all aces. free, all volunteer. entirelv funded by the community, national holiday event that brings together our tourists with our residents and she would like to see it funded; she felt it important to wait on ivlWs 50'h El Anniversary Celebration as there isn't a specific monetary request vet Councilmember Nancy Johnson felt that these requests should be funded out of the S30.000 Council contingency funds; she also feels that we should fund all the events or none of the events as they are all valuable — she doesn't want to vote on them one by one; she agreed with coming back at the mid -year budget for the MB 50'' Anniversay Celebration. Councilmember Smukler agrees that the S30.000 contingency should be used to fund these requests. He felt the request of the Housing Trust Fund was benign and from a separate fund so he supports it; he's on the fence re: the Friends of the Library request but at same time we are doing a lot to help them thru the transition; he agrees with postponing any discussion on MB's 50ih Anniversav Celebration until mid -year: as far as 4`" of July, because of how it is structured as a stand-alone. all -volunteer effort he feels it deserves special consideration and would be willing to move forward with finding a way to fund it tonight: and, Council needs to identify_ the funding for the downtown restroom. Mavor Irons agreed with the Library's gift in kind as a good compromise: as far as the Housing Trust Fund. he agrees Nth funding it through the Housing Fund: since Council agreed to move forward with the restroom. we need to fund it tonight he agrees. the 4 of July event is worthwhile to fund: and. waiting until mid -year for MWs 50'h Anniversary Celebration is smart. There is the S30,000 contingencv and he feels its a given that will be put on the table. He doesn't feel comfortable in making any adjustment to the General Fund Reserve and in fact wants to find a way to restore it back to the 27.5% level that policy dictates. He suggests starting with the $200,000 in excess Risk Management Reserves with these funding requests.- Councilmember Leage stated that the 4`' of July is here and a decision needs to be made on what to do with it quickly; the TBID is bringing in the money and while their request is a lot of money_ it's the most important thing on the list to fund; he feels confident we will be able to sublease the restroom property which will help with the required lease costs: and as far as the Friends of the Library, he feels we have done our part. Mayor Irons asked Council if there was consensus to keep the reserves at 27.5% to which there was unanimous support. Councilmember Smukler stated he is willing to work with the excess monies in the Risk Management Fund as these are one time funding requests and still respects the City's policies. He stated another source of funding is the City Council budget of $2.000 for Leadership & Team Building. He also feels we can pull the S5.000 allocated to Goal Setting. Along with the $30.000 in contingencv funds. those monies along with cautiously working using the excess Risk Management Funds should allow for the funding opportunities that Council decides on. MLYUTES - MORRO BAY CITY COUNCIL BUDGET WORKSHOP -JUNE 12. 2013 ® Councilmember Nancv Johnson feels it's essential that we fund both TBID and EVC to help with our economic development base. Mavor Irons stated that there is approximately $190,000 in excess in our Risk Management Reserve that is accessible to use in addition to the S30.000 of Council contingency and $2,000 from Leadership/Team Building for a total of S222.000. At that time he began deducting the funding requests from the excess monies. The total expenditures that Council is looking to potentially fund is $121.195 (S38,195 to re -fund the general fund reserves; S5.000 to the EVC. S16,000 to restroom. S4.000 to 4`" of July. S58,000 to TBID/Tourism Bureau). There was unanimous Council consensus to bring back the MB 50t' Anniversav Celebration to mid -year. Regarding the Council's potential support of funding the TBID/Tourism Bureau request: Councilmember Nancy Johnson feels that TBID is an engine that drives our economy, they have a concise budget and they intend to raise their TOT levels: she feels the same about EVC who spends a lot of time and energy helping our Economic Development Program as well also our Tourist Bureau getting things done — she supports funding both of them; Councilmember Smukler likes the fact the TBID budget has an element of working with the Chamber of Commerce and the Merchant's Association to develop a "Shop Local" campaign. He is in support of funding this in full this year and also hopes to receive a clear tracking, reporting and performance standard so that these general fund dollars are accounted for. He also hopes they ® recognize this could be one-time only support as we need to begin weaning them off the general fund as much as possible. He is cautious of funding the EVC but also knows there is a lot of value there as they have a great working relationship with the Chamber of Commerce. Councilmember Christine Johnson agrees with this direction and wanted to comment on our three revenue streams, property tax. sales tar and TOT; there is such large an increase in our TOT in just 2 years working towards this. Having one dedicated professional to market Morro Bay in order to increase our TOT will pay dividends both to the City and the residents. Councilmembers Leage and Mayor Irons are also both in agreement to support the TBID as there is a direct benefit of our tax dollars transitioning into other City services_: they also all agree to the need to wean them off this these monies over time. There was unanimous support to utilize the excess Risk Management Funds to help fund these requests. as long as the excess funds are available. Councilmember Smukler added that no monies should be spent until the General Fund Reserves was back filled to its 27.5% level. Since all requests were being funded. Councilmember Christine Johnson requested further discussion about funding the Friends of the Library request using the philosophy that if Council chooses to fund all of these requests, then the Library should be considered as well. There was unanimous consensus to move forward with funding the Library's request at an additional $5.000. Council moved onto Measure Q funding. Administrative Services Director Susan Slayton ® presented the Measure Q funding requests from the "A List". Council unanimously supported the "A List` requests in full. 5 MINUTES - MORRO BAY CITY COUNCIL BUDGET WORKSHOP-JUNE 12.2013 11 Councilmember Christine Johnson encouraged staff to prepare and present a "fact sheer' that would be easy to understand explaining the budget in bullet form and easier reading format. Hopefully that fact sheet could be ready and posted on the internet when we go to adopt the budget. Councilmember Smukler requested that staff bring back. hopefully in August, the 2011/12 audit to allow a Council review as well as continue to investigate a budget advisory/financial planning committee concept. ADJOURNMENT The meeting adjourned at 8:1Opm. Recorded by: V w��- Jamie Boucher City Clerk 0 MINUTES- MORRO BAY CITY COUNCIL BUDGET WORKSHOP - JUNE 12. 2013 ® 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 TUESDAY, TUNE 11, 2013 CLOSED SESSION CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER SUMMARY OF CLOSED SESSION ITEMS - The Mayor will read a summary of Closed Session items. ® CLOSED SESSION PUBLIC COMMENTS - Members of the public may address the City Council on any matter that is listed on this Closed Session agenda. Unless additional time is authorized by the City Council, remarks shall be limited to three minutes. THE CITY COUNCIL WILL MOVE TO CLOSED SESSION 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 following employee organizations and giving instructions to the Designated Representative: Firefighters Association (FFA), Police Officer's Association (POA), and Service Employee's International Union. SEIU Local 620. CS-2 GOVERNMENT CODE SECTION 54956.8; 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 parcels. • Property: Al-3 Mooring Zone next to 541 Embareadero Negotiating Parties: Morro Bay Yacht Club and City of Morro Bay Negotiations: Lease Terms and Conditions ® • Property: APN 068-168-022, Vacant Lot next to 1320 Main Street Negotiating Parties: Michael Lemos and Citv_ of Morro Bay Negotiations: Lease Terms and Conditions ® CS-3 CONFERENCE WITH LEGAL COUNSEL DUE TO ANTICIPATED LITIGATION -- GOVERNMENT CODE SECTION 54956.9(b): Exposure to litigation exists based upon existing facts and the advice of legal counsel as to one matter. • Parties: First American Title Company/First California Bank and City of Morro Bav RECONVENE TO OPEN SESSION — Announcement of reportable action from closed session. if any. PUBLIC SESSION VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGI.ANCE CLOSED SESSION REPORT MAYOR & COL NCILNIEMBERS' REPORTS_.:ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS ® PUBLIC COMMENT - Members of the audience wishing to address the Council on City business matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda but unable to stay for the item, may also address the Council 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 AGENDA Unless an item is pulled for separate action by the City Council. the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE BUDGET WORKSHOP ON OF MAY 22. 20li: (ADMINISTRATION) RECOMi\IENDATION: Approve as submitted. A-2 APPROVAL OF CITY COUNCIL MINUTES FOR THE REGULAR COUNCIL MEETING OF MAY 14. 2013: (-ADMINISTRATION) RECOMNitENDATION: Approve as submitted. A-3 REQUEST TO APPROVE A RESPONSE TO THE GRAND JURY REGARDING EMAIL ACCESSIBILITY TO CITY GOVERNMENT; (CITY ATTORNEY) RECOMMENDATION: Review the attached letter and authorize its submittal to the Grand Jury. A-4 STATUS REPORT OF A MAJOR MAINTENANCE & REPAIR PLAN (MMRP) FOR ® THE EXISTNG WASTEWATERTREATVIENT PLANT; (PUBLIC SERVICES) RECON VIENDATION: Staff recommends that this report be received and filed. A-5 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF _kIORRO BAY. CALIFORNIA AMENDNG RESOLUTION 43-10 FOR A CALIFORNIA DEPARTMENT OF PUBLIC HEALTH GRANT FOR MODIFICATIONS TO THE DESALINATION PLANT; (PUBLIC SERVICES) RECOi%LiN,IENDATION: Approve Resolution 35-13 B. PUBLIC HEARINGS - NONE C. UNFNISHED BUSINESS C-1 REVIEW OF THREE PROPOSED CONCEPT PLANS FOR IMPROVEMENTS TO CENTEtiNIAL STAIRCASE; (CITY ATTORNEY) RECOi\I\IENDATION: Review and discuss the three different Concept Plans for Improvements to Centennial Staircase and direct Staff to schedule this item for review at the Recreation and Parks Commission and the Planning Commission and return to the Citv Council with their recommendations. D. NEW BUSINESS 3 D-1 CONSIDERATION OF JOINT REDEVELOPMENT PROJECT PROPOSED FOR ® LEASE SITES 86/86W (801 EMBARCADERO LLC — CALDWELL) AND 87- 88/87W-88W (V. LEAGE),- (HARBOR) RECOi\UMENDATION: Council to consider the three proposed alternatives and provide staff direction. D-2 CONSIDERATION OF REDEVELOPMENT PROJECT PROPOSED FOR LEASE SITE 62/62W (KAYAK HORIZONS — KRUEGER); (HARBOR) RECOMMENDATION: Council to consider the three alternatives and provide staff direction; staff is recommending Alternative A. D-3 STATUS REPORT ON A?vfENDIvfENTS TO THE ZONNG ORDNANCE (TITLE 17) AS IT RELATES TO SECTION 17.48.32 (SECONDARY UNITS), SECTION 17.44.020.1 (NORTH NIAN STREET COMMERCIAL AREA PARKING) AND SECTION 17.27 (ANTENNAS AND WIRELESS TELECONEMU`NICATIONS FACILITIES: (PUBLIC SERVICES) RECOMMENDATION: Review the materials presented in the packet by staff and direct staff to submit to Coastal Commission a Local Coastal Plan amendment to include all three Zoning Ordinance Amendments.. D-4 APPROVAL OF LEASE AGREEMENT BETWEEN THE CITY OF MORRO BAY AND SCOTT MEISTERLN FOR PROPERTY LOCATED AT 307 MORRO BAY BLVD. FOR A PUBLIC RESTROOM AND OPEN SPACE AREA; (CITY ATTORNEY) RECOMMENDATION: Approve the lease agreement with Scott Meisterlin for the use of property located at 307 Morro Bay Blvd. (corner of Morro Bay Blvd. and Main St.) for a public restroom and open space area. D-5 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS AND DISCUSSION: (ADMINISTRATION) RECOi\IMENDATION: Discuss in open session, the progress to date on the Water Reclamation Facility (WRIT) and provide direction to staff as necessary. D-6 APPOINTMENT OF VOTING DELEGATE(S) TO THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY: (ADMINISTRATION) RECOMMENDATION: Council to appoint Mayor Irons as the official representative of the City of Morro Bay on the California Joint Powers Insurance Authority (CJPIA). It is also recommended that City Attorney Robert Schultz and City Manager Andrea Lueker are appointed as alternates. ® E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS 4 L,J 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 i i2-6205 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. 5 MINUTES — MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING — JUNE It. 2013 CITY HALL CONFERENCE ROOM — 5:00PIvt PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Leage Noah Smukler STAFF: Andrea Lueker Robert Schultz Susan Slayton Laurie Goforth Eric Endersbv Bill Avery (by phone) ESTABLISH QUORUM AND CALL TO ORDER AGENDA NO: A-2 MEETING DATE: 6/25/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager Citv Attorney Administrative Services Director Human Resources Analyst Harbor Director Chief Negotiator ® SUMMARY OF CLOSED SESSION ITEMS - The Mayor read a summary of Closed Session items. CLOSED SESSION PUBLIC COMMENTS Mayor Irons opened the meeting for Public Comment. Mike Lemos requested the ability to rent the City owned vacant lot adjacent to li20 Main Street to erect a tent and continue to sell and service pet industry during their construction project. He expects construction to last 6 months. The City, Council moved to Closed Session and heard the following items: CS-1 GOVER\IMENT 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 following employee organizations and giving instructions to the Designated Representative: Firefighters Association (FFA), Police Officer's Association (POA), and Service Employee's International Union. SEIU Local 620. CS-2 GOVERMENT CODE SECTION 54956.8; 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 parcels. • Property: Al-3 Mooring Zone next to 541 Embarcadero Negotiating Parties: Morro Bay Yacht Club and City of Morro Bay_ Negotiations: Lease Terms and Conditions • Property: APN 068-168-022. Vacant Lot next to 1320 Main Street Negotiatine Parties: Michael Lemos and City of Morro Bay Negotiations: Lease Terms and Conditions CS-3 CONFERENCE WITH LEGAL COUNSEL DUE TO ANTICIPATED LITIGATION -- GOVERNMENT CODE SECTION 54956.9(b): Exposure to litigation exists based upon existing facts and the advice of legal counsel as to one matter. Parties: First American Title Company/First California Bank and City of Morro Bay CITY COUNCIL CONVENED TO OPEN SESSION — The City Council convened to open session: City Attomev. Rob Schultz reported that no reportable action under the Brown Act was taken. ADJOURNMENT The meeting adjourned at 5:55pm. Recorded by: Dana Swanson Deputy City Clerk MINUTES- MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING -JUKE 11, 2013 ® AMENDED MINUTES MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 11_. 2013 VETERAN'S MEMORIAL 14ALL — 6:00P.M. PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Leage Noah Smukler STAFF: Andrea Lueker Robert Schultz Jamie Boucher Amy Christey Eric Endersbv Susan Slayton Joe Woods Rob Livick Rick Sauerwein ® Mayor Irons called the meeting to order at 6:00 p.m. ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE AGENDA NO: A-1 MEETING DATE: 7/9/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager Ciry Attomev City Clerk Police Chief Harbor Director Administrative Services Director Recreation & Parks Director Public Services Director Capital Projects Manager CLOSED SESSION REPORT — City Attorney Robert Schultz reported that City Council met in a Special Closed Session on May 30, 2013 on the following item: 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 following employee organizations and giving instructions to the Designated Representative: Firefighters Association (FFA), Police Officers Association (POA), and Service Employee's Intemational Union; SEIU Local 620: no reportable action under the Brown Act was taken. City Attorney Robert Shultz reported that City Council met in Closed Session on June I I, 201 3 on the following items: Government Code Section 54957.6. Conference with Labor Negotiator - Conference with Citv .Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the following employee organizations and giving instructions to the Designated Representative: Firefighters Association (FFA), Police Officer's Association (POA), and Service Employee's Intemational Union, SEIU Local 620; Government Code Section 54956.8. 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 parcels: Al-3 Mooring Zone nest to 541 ® Embarcadero and APN 068-168-022. Vacant Lot next to 1320 Main Street: and, Conference with legal counsel due to anticipated litigation. Government Code Section 54956.9(b): Exposure to litigation exists based upon existing facts and the advice of legal counsel as to one matter - First American Title Company/First California Bank and City of Morro Bay; no reportable action under the Brown Act was taken. MAYOR AND COUNCILMEMBERS- REPORTS._ ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS PUBLIC COIviMENT Meredith Bates, owner of Bates Care Management, presented the Morro Bay business report. Bates Care Management is a geriatric care management firm that covers the entire County. It is her goal that loved ones are able to stay safely in their own homes or transition into assisted living. VIs. Bates works carefully with the familv. For those with loved ones outside of the County, you can locate a care manager by going to caremanager.org and then put in your zip code. To contact Ms. Bates you can call 771-9124 or go to her website at batescare.com. She urged people contact her with any questions they may have. Stephanie Pipan, the City's K-9 Officer advertised the 3rd Annual K-9 Walk being held on li. Saturday. June 22, 20It is the annual fundraiser for Xello and the Canine Unit. The event is being held at Citv Park, there will be vendors, demos, and will also feature a dog walk. The ® cost is a S20 donation which will also get your dog a "goodie bag". Police Commander Bryan Millard urged the community to support Officer Pipan in her fundraising goals; it takes between $7,000-10,000 to maintain a police K9 in our community per year. He also advertised the upcoming Tip -a -Cop Dinner being held on Friday. June 28d' benefitting Special Olympics. The event is being held at the Community Center and the cost is S20/adult and S5/child or SI50/table. At this time. Mayor Irons requested the Council consider pulling Item D-2, Consideration of Redevelopment Project Proposed for Lease Site 62/62W (Kavak Horizons — Krueger) and continue it to a future meeting so that it could be heard in conjunction with the Gray's Inn item. Councilmembers Nancy Johnson and Lease both wanted to hear the item tonight as scheduled. Councilmembers Christine Johnson and Smukler both felt it was important to hear this item alongside the Gray's•Inn item. MOTION: Mayor Irons moved to continue Item D-2. Kayak Horizons. and to bring it back with Gray's Inn. The motion was seconded by Councilmember Smukler and carried 3-2 with Councilmembers Nancy Johnson and Lease voting no. Brian Stacy stated that he was a victim of the largest conspiracy in human history. Tonight he wanted to talk about crime and Council's obligation to follow through on these allegations. ® Craig Schmidt advertised upcoming Morro Bay events. On June 12`h. there will be a Morro Bav/Los Osos Chamber miser at Sea Pines Restaurant from 630-730pm; on June 20th there will MINUTES - MORRO BAY CITY COUNCIL - JUN E 11, 2013 ® be a Morro Bav Mixer at Casa de Flores from 530-7pm: on June 20t' there will be a Community Forum upstairs at Embarcadero Grill from 9-10am and will feature Police Chief Amy Christey; and. on June 215i. the Economic Vitality Corporation will be providing business consultation at the Chamber offices from 9am-5pm, please call the Chamber for an appointment. Susan Stewart spoke on Item D-4, approval of a lease agreement between the City of Morro Bay and Scott Meisterlin for property located at 307 Morro Bay Blvd for a public restroom and open space area. She is so pleased to see this as a real possibility for the downtown core area; it's a great concept and hopes that Council will approve it tonight. Aaron Ochs wanted to remind people that on June 25 h. there will be a discussion on the Morro Bay Aquarium at the Council level. He spoke to an email he received last week which appealed to extremes and emotions which he felt was in very- poor taste. The Tylers have contributed a lot to the community and they are entitled to whatever the free market process allows. He hopes people will focus on solutions and that we all can keep a cool head. Lynda Merrill stated that. at this moment. there is a dangerous situation at Highwav 41 as there are cars extending into the right turn lane. She felt that the Council and Police Chief should know this. Bob Keller thanked Ken Vesterfelt for all the work he provided at the Car Show. This year's car show was one of the best ones we ve ever had and bringing in Dennis Gage to cover the event ® was a great idea as it will provide local, national and international coverage Kate Crocker spoke on Item D-4 in support of the restroom. It would be great to have a restroom in the downtown area. Mavor Irons closed the public comment period. A. CONSENT AGENDA Unless an item is pulled for separate action by the City Council. the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE BUDGET WORKSHOP ON OF MAY 22. 2013; (.ADMNISTRATION) RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF CITY COUNCIL MNUTES FOR THE REGULAR COUNCIL MEETNG OF MAY 14, 201 3; (ADMNISTRATION) RECOMMENTATION: Approve as submitted. A-3 REQUEST TO APPROVE A RESPONSE TO THE GRAND JURY REGARDNG is EMAIL ACCESSIBILITY TO CITY GOVERNNIENT; (CITY ATTORNEY) 3 MINUTES - NIORRO BAY CITY COUNCIL -JUNE 1112013 RECOMMENDATION: Review the attached letter and authorize its submittal to the Grand ® Jurv. A-4 STATUS REPORT OF A MAJOR MAINTENANCE & REPAIR PLAN (v4MRP) FOR THE EXISTNG WASTEWATER TREATMENT PLANT; (PUBLIC SERVICES) RECOMMENDATION: Staff recommends that this report be received and filed. A-5 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY. CALIFORNIA AMENDING RESOLUTION 43-10 FOR A CALIFORNIA DEPARTMENT OF PUBLIC HEALTH -GRANT FOR MODIFICATIONS TO THE DESALINATION PLANT; (PUBLIC SERVICES) RECOMMENDATION: Approve Resolution 35-13. Mayor Irons opened up the public comment period for items on the Consent Calendar; seeing none, the public comment period was closed. Mayor Irons pulled Item A-1 and Councilmember Christine Johnson pulled Item A-4 from the Consent Calendar. MOTION: Councilmember Nancy Johnson moved the City Council approve Items A- ® 2. A-3, and A-5 of the Consent Calendar as presented. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE BUDGET WORKSHOP ON OF NMY 22. 2013; (ADMINISTRATION) Mayor Irons pulled this item to point out a typographical error on page 3; it read "... for the 420 million we have in asset replacements." and it should have read "... 142 million we have in asset replacements." A-4 STATUS REPORT OF A MAJOR MAINTENANCE & REPAIR PLAN' (MMRP) FOR THE EXISTNG WASTEWATER TREATMENT PLANT; (PUBLIC SERVICES) Councilmember Stnulder Christine Johnson pulled this item to have Public Services Director Rob Livick give the public an update on the MNIRP. MOTION: Councilmember Christine Johnson moved the City Council approve Items A-1 as amended and A-4. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. B. PUBLIC HEARINGS - NONE isC. UNFNISHED BUSINESS .! MINUTES - ttORRO BAY CITY COUNCIL -JUNE 11. 2013 ® C-1 REVIEW OF THREE PROPOSED CONCEPT PLANS FOR IMPROVEMENTS.TO CENTENNIAL STAIRCASE; (CITY ATTORNEY) Citv Attomev Rob Schultz presented the staff report. Mayor Irons opened public comment for Item C- I,- seeing none, the public comment period was closed. Councilmember Nancy Johnson would love to see a funicular but it is far too expensive. Councilmember Smukler is anxious to move forward on this project, keeping in mind what we can afford. He favors Option C as it preserves the Centennial Staircase. He also hopes that signage would be a component in the continued effort to bring the Embarcadero together with the downtown area. Councilmember Leage stated that for years, there has been talk about tying the Embarcadero to the Uptown District. Now we have that opportunity. He doesn't necessarily know where to find the money but the funicular would be such a wonderful attraction for Morro Bay and he would like to find a way to make that happen. Councilmember Christine Johnson stated that at this point, we wouldn't be doing anything to stop a funicular from being built in the future but at this time, the owner of the property is willing ® to place a connector from the Embarcadero to the downtown area with an elevator that hopefully would have full glass views. She also hoped that maybe the City could negotiate with the owner to help fix up the staircase. She would like this to go to the Recreation & Parks Commission, as long as it doesn't slow down the process, as well as the Planning Commission. Tvlayor Irons feels that in Exhibit C. the elevator is tucked too far into the existing restaurant and almost hides it. Exhibit B places it more towards the center and it is more visible. He would like to see the elevator brought out to make it more of an attraction and centrally located. MOTION: Councilmember Nancy Johnson moved to forward this report to the Planning Commission with all three Exhibits as possibilities and report back to the Council with their best idea. The motion died for lack of a second. Mavor Irons agreed that while it has to go to Planning Commission. as Council, they need to provide clear direction. Councilmember Smukler is attracted to Option C but not necessarily exactly as it is proposed. The attraction is the view shed which is the value for that spot. If we adjusted the elevator we could enhance our gathering opportunities. He agreed that moving Exhibit C forward to the Planning Commission as a concept as well as asking the Recreation & Parks Commission for ® their input is valuable. 5 MINUTES- MORRO BAY CITY COUNCIL -JUNE 11, 2013 ® Councilmember Leage agreed that Planning Commission's input is vital but that we should send all three Exhibits over to them without our parameters so we get their specialized opinion. Councilmember Christine Johnson was concerned that what if we send all three options to the advisory boards and they only like 1 and its one that we can't afford. Councilmember Nancv Johnson wanted the Planning Commission to still be able to see all three options with the understanding that there are cost differences in all of them. There is always the possibility of available grant opportunities. Councilmember Christine Johnson stated that there is unanimous enthusiasm for this project. She looks at this as a good neeotiation for a piece of property that brings us access and mobility enhancements. But we need to realistically put facts before emotion and move Plan C to the Planning Commission and get this moving. She would be amenable to sending the entire packet so they can see the other options but realistically Plan C is what is affordable. Mayor Irons hoped to send all three to the Planning Commission with the emphasis on Exhibit C being the cost choice. He would like to see the downtown visioning concepts included and see how those all fit together. Councilmember Nancv Johnson doesn't feel the need to include the visioning concepts included in this decision. ® MOTION: Mayor Irons moved to send Exhibit A, B, and C concurrently to the Recreation & Parks Commission and the Planning Commission with Exhibit C as the cost choice for the design, look for the views or viewshed opportunities to be featured with regards to the elevator, include the downtown visioning elements into the process that specifically deal with this area, include a connection signage component and to direct staff to ask the buver to refine Exhibit C even before it goes to show the cross sections to better develop the plan. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. D. NEW BUSINESS D-1 CONSIDERATION OF JOINT REDEVELOPMENT PROJECT PROPOSED FOR LEASE SITES 86/86W (801 ENIBARCADERO LLC — CALDWELL) AND 87- 88/87W-88W (V. LEAGE); (HARBOR) Councilmember Leage had to recuse himself due to a conflict of interest in the matter. Harbor Director Eric Endersby presented the staff report. Cathy Novak, representing the applicants, presented the proposal. She covered a brief history, _ she addressed concerns regarding the Alternative A proposal, she presented the proposed project ® highlights and she addressed the Alternative B from the staff report. She stated that early on, the two leaseholders got together and designed a joint project that could operate independently while 6 MINUTES - MORRO BAY CITY COUNCIL -JUNE I1, 2013 ® at the same time providing the maximum benefit for the visitor serving uses. They had originally planned to form an LLC for the purpose of submitting a project while at the same time keeping their own lease sites. However, this approach would require the City to consolidate both the lease sites into one new Master Lease. Several items taken into consideration regarding this proposal include Ms. Leage's previous plan that was used as a stepping stone for the new design; recognition that two restaurants were not likelv in the best interest of both sites: the design should focus on visitor serving uses: there are limitations for feasible uses on the second floor: questions on how to maximize the lease space with required view corridors and other City standards; and. the overall construction. The major plan points include both retail and hotel units: the building at 833 Embarcadero will be moved easterly 16 feet to allow for the construction of the Harbor Walk as well as a continuous single dock cross both leases: docks will have a shared gangwav: the sidewalk along the Embarcadero will be enlarged to 8 feet: and the restaurant at 833 Embarcadero will be smaller and the restaurant at 801 Embarcadero will be removed. Other design benefits include public restrooms. elevator. hotel lobby and easy restaurant access from the hotel. In response to staffs Alternative B. the most important matter for both leaseholders is clear direction from Council. Both applicants are amenable to Alternative A or B. Mayor Irons opened up public comment for Item D-1; seeing none, the public comment period was closed. Councilmember Smukler is inclined towards separate projects, he wants to retain as much of the ® sites as are currently useful, it would be less of a shakeup and would be more affordable for each applicant. Councilmember Nancy Johnson strongly believes in Option B. Keeping the 2 smaller leases under the control of the current lease holders will be a real advantage. It should help with sublease issues. should remain cleaner and create fewer vacancies. Councilmember Christine Johnson stated we have combined lease sites before which have allowed for shared costs with architects, construction. etc. While we have a precedent for doing joint projects, she likes the mix we have now. She hopes to see us retain our "quirkiness" (large and small sites) as well as expand the boardwalk and sidewalk. She is leaning towards having two separate proposals come back to maintain that nice. individual, independent kind of look. Mayor Irons feels that going towards separate projects would be the most feasible way to go and would agree to Alternative B. Councilmember Smukler would hope they would have public restrooms, enhance the view corridors. would look to temper the size of an upper 2Id floor and have a bicycle parking area. MOTION: Councilmember Smukler moved to direct the applicants and staff to work on Alternative B, to resubmit separate proposals for their respective lease site and for each of them to consider mutual benefits and public bse opportunities as they see fit. The ® motion was seconded by Councilmember Nancy Johnson and carried 4-0-1 with Councilmember Leage having to recuse himself. 7 MINUTES - MORRO BAY CITY COUNCIL -JUKE It. 2013 D-2 CONSIDERATION OF REDEVELOPMENT PROJECT PROPOSED FOR LEASE SITE 62/62 W (KAYAK HORIZONS — KRUEGER)-. (HARBOR) Per the motion made earlier in the meeting: this item was pulled and continued to a future meeting. D-3 STATUS REPORT ON AMENDMENTS TO THE ZONING ORDINANCE (TITLE 17) AS IT RELATES TO SECTION 17.48.32 (SECONDARY UNITS), SECTION 17.44.020.1 (NORTH MAIN STREET COMMERCIAL AREA PARKING) AND SECTION 17.27 (ANTENNAS AND WIRELESS TELECOMMUNICATIONS FACILITIES: (PUBLIC SERVICES) Planning Manager Kathleen Wold presented the staff report. Mayor Irons opened up the public comment period for Item D-3: seeing none. the public comment period was closed. Mavor Irons feels that the Ordinances regarding the Antennas and Wireless and the North Main Street Parking are preen- straight forward and there is some discrepancy on the Secondary Unit Ordinance. There was unanimous consensus that Council would have staff move forward on the Antenna/Wireless and Parking Ordinances. ® MOTION: Councilmember Nancy Johnson moved to approve the Antenna and Wireless amendment. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. Councilmember Nancy Johnson stated that this was done in conjunction with Ivis. Wold as a plan to help commercial businesses in North Main. It was a good idea and it should continue. Councilmember Smukler thinks we should move forward with this as well; there is a potential for parking issues but given that this concept is working within the existing footprint of a building, this is a good way to avoid new parking scenarios. MOTION: Councilmember Smukler moved to approve Section 17.44.020.1, the North Main Street Commercial Area Parking. The motion was seconded by Councilmember Nancy Johnson and carried unanimously 5-0. Council agreed to open up public comment for Item D-3. Roger EMng has spoken against increasing the square footage of secondary units for as long as this discussion has taken place. For example, on Pacific, there are two homes on the same lot, both with the same square footage and both identical. The ability to add a 1200 square foot home to your property creates a mansionization effect as well as it creates parking problems. He hopes that Council will not allow secondary units over 900 square feet. ® The public comment period for this item was closed. F? MINUTES - MORRO BAY CITY COUNCIL- JUNE 11. 2013 Mayor Irons clarified the Ordinances - #3 is the amended version; 92 is the one we are operating on which meets the legal requirements because it does allow for 1200 square feet, however it doesn't allow for parking within the front yard setbacks; he has spoken out against the amended version as realistically, there was nothing that would protect against two 1200 square feet houses on an R1 home. In effect we are making duplex homes out of our R1 neighborhoods which isn't in keeping with our town. Others felt the same way which led us to the #2 Ordinance. Councilmember Smukler agrees completely, the effort that went into the public input in developing the second update was a compromise as it expanded and increased the size of a home and we need to follow through with it. The suggestion to send this to the Planning Commission to discuss the parking component as an additional thing to analyze is a good way to approach this as it gives more opportunity for public input. Councilmember Christine Johnson is amenable to going in this direction as well as. MOTION: Mayor Irons moved not to forward the Secondary Unit Ordinance as amended forward for certification: take the 92 Ordinance back to the Planning Commission for review to address parking and parking setbacks in an open format for further public comment/input. The motion was seconded by Councilmember Smukler and carried 3-2 with Councilmembers Nancv Johnson and Leage voting no. ® D-4 APPROVAL OF LEASE AGREEMENT BETWEEN THE CITY OF MORRO BAY AND SCOTT MEISTERLN FOR PROPERTY LOCATED AT 307 MORRO BAY BLVD. FOR A PUBLIC RESTROO-k1 AND OPEN SPACE AREA; (CITY ATTORNEY) u Citv Attorney Rob Schultz presented the staff report. Mayor Irons opened up public comment for Item D-4; seeing none, the public comment period for this item was closed. Councilmember Nancy Johnson heard from a couple of business owners that are very interested in having a public restroom and wants to see this item moved forward. Councilmember Smukler feels this is the way to go. He also suggested having Councilmembers Nancy and Christine Johnson, as part of the Economic Development Committee, be part of a sub -committee that would review the proposals received for leasing the building MOTION: Councilmember Nancy Johnson moved approval of the lease; to seek proposals; to request the Chamber of Commerce Director and the Director of the Economic Development Program along with the Economic Development Committee to help find a sublease for the building and recommend a tenant. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. E MINUTES- MORRO BAY CITY COUNCIL-JUNE 11, 2013 D-6 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS AND DISCUSSION; (ADMNISTRATION) Citv Manager Andrea Lueker presented the staff reportAimeline adding that Council will be seeing this report at the first meeting of each month now. Public Services Director added that the kickoff meeting will be held within a week after signing the contract, probably by the end of next week. Approximately ; weeks after the kickoff meeting; we will hold the first stakeholders meeting. Then approximately I week later, the first public workshop will be held. D-6 APPOINTMENT OF VOTING DELEGATE(S) TO THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY: (ADMNISTRATION) Ciry Manager Andrea Lueker presented the staff report stating that this is an administrative / housekeeping issue only. Mayor Irons opened up public comment for Item D-6; seeing none, the public comment period was closed. MOTION: Councilmember Nancy Johnson moved to approve the recommendations made in Item D-6. The motion was seconded by Councilmember Leage and carried 40 unanimously 5-0. E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS Councilmember Christine Johnson requested the creation of a Chorro Valley Subcommittee; there was Council consensus to move this forward ADJOURNMENT The meeting adjourned at 9:27pm. Recorded bv: Jamie Boucher Citv Clerk r1L 10 MINUTES - MORRO BAY CITY COUNCIL -JUNE I1, 2013 EN City of Morro Bay MORRO BAY, CA 93442 (805)772-6205 NOTICE OF SPECIAL CLOSED SESSION MEETING CITY HALL CONFERENCE ROOM — 4:00 P.M. 595 HARBOR ST., MORRO BAY, CA NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Closed Session Meeting on Thursdav, Mav 30, 2013 at 4:00pm to be held in the Ciry Hall Conference Room located at 595 Harbor Street, Morro Bay. California. Below is an agenda of the meeting: • ESTABLISH QUORUM AND CALL TO ORDER • SUMMARY OF CLOSED SESSION ITEMS - The Mayor will read a summary of Closed Session items. ® CLOSED SESSION PUBLIC COMMENTS - Members of the public may address the City, Council on any matter that is listed on this Closed Session agenda. Unless additional time is authorized by the City_ Council_, remarks shall be limited to three minutes. • THE CITY COUNCIL WILL MOVE TO CLOSED SESSION 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 following employee organizations and giving instructions to the Designated Representative: Firefighters Association (FFA), Police Officer's Association (POA), and Service Employee's International Union. SEIU Local 620. • RECONVENE TO OPEN SESSION — Announcement of reportable action from closed session, if any. DATED: May 15, 201 1 (0�� Ja6de Boucher. City Clerk EN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL. ASSISTANCE TO PARTICIPATE IN A CITI' MEETING, PLEASE CONTACT THE CITY CLERKS OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGE.IESI'S CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE.MEETING. �J AGENDA NO: A-] MEETING DATE: 6/25/2013 MINUTES - MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING — MAY 30, 2013 MORRO BAY CITY HALL CONFERENCE ROOM — 4:00P.M. PRESENT: Jamie Irons Mayor Christine Johnson Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attornev Susan Slayton Administrative Services Director Laurie Goforth Human Resources Analyst Bill Avery Chief Negotiator Mavor Irons called the meeting to order at 4:00 p.m. ESTABLISH QUORUM AND CALL TO ORDER SUMMARY OF CLOSED SESSION ITEMS — The Mayor read a summary_ of Closed Session Items. CLOSED SESSION PUBLIC COMMENTS Mayor Irons opened the meeting for Public Comment. Police Detective. Dale Cullum, spoke regarding the Police Departments high turnover rate over the past five years and the substantial cost to the City to replace these positions while continuing to provide adequate police services to the community. He also stated that the goal of the MBPD Police Officers Association is to help reduce the high turnover rate, retain experienced officers, and reduce the high costs of repeated hiring and training, and to bring iviorro Bay PD to a more comparable level to other surrounding agencies within the County. Harbor Patrol Supervisor, Becka Kelly, spoke regarding the SEIU Proposal to clarify the employee requests. She also reminded Council that in July 2011 employees received a pay cut, accepted multi -tier retirement plans and medical increases. SEIU employees ask for some compensation to repay what has been taken away. Wastewater Treatment Plant Manager, Bruce Keogh, spoke on behalf of Management employees and as a citizen of Morro Bay. He asked Council to consider putting a revenue generating item on the ballot. He spoke about the importance of retaining existing employees and asked Council to consider a cost of living increase. He also stated there is a compaction issue between the top ® paid emplovees and management that should be addressed, and noted that the 3% cut in pay Management received in 2009 added to this problem. Darryl Scheck of SEIU presented a salary comparison for Council review and stated that Morro Bav SEIU employees are among the lowest paid in the county. and have no other way to make up for cost of living increases and increased retirement costs. He noted that Morro Bay employees took on the employee share of retirement way ahead of other jurisdictions. Mike Woods of SEIU stated that city employees are falling behind. CPI for the last five vears shows 11% increase. SEIU employees haven't seen any increase during that time. He noted that the handout provided by Mr. Scheck shows inflationary impacts and reminded Council that the SEIU proposal is a negotiable proposal. The Ciry Council moved to Closed Session and heard the following item: CS-1 GOVERrNb4ENT 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 following employee organizations and giving instructions to the Designated Representative: Firefighters Association (FFA), Police Officer's Association (POA), and Service Employee's International Union. SEIU Local 620. The City Council convened to open session; City Attorney, Rob Schultz reported that City ® Council met in Closed Session and no reportable action under the Brown Act was taken. ADJOURNMENT The meeting adjourned at 5:20pm Recorded by: Dana Swanson Deputy City Clerk MINUTES - MORRO BAY CITY COUNCIL SPECIAL CLOSED SESSION MEETING - MAY 30. 2013 ® City of Morro Bay City Council Agenda Mission Statement The City• of flforro 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 ;vith and responsive 10 the needs of the public. REGULAR MEETING TUESDAY, MAY 28, 2013 CLOSED SESSION CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER SUMMARY OF CLOSED SESSION ITEMS - The Mayor will read a summary of Closed Session items. ® CLOSED SESSION PUBLIC CO--'vILMENTS - Members of the public may address the City Council on any matter that is listed on this Closed Session agenda. Unless additional time is authorized by the City Council, remarks shall be limited to three minutes. THE CITY COUNCIL WILL MOVE TO CLOSED SESSION CS-1 GOVERIMNIENT CODE SECTION 54956.8; PROPERTY TRANSACTIONS: Instructing City's real propem, negotiator regarding the price and terms of payment for the purchase, sale, exchange; or lease of real property as to three parcels. • Property: Vacant Lot/Corner of Coral/San Jacinto Negotiating Parties: Jeff Edwards and City of Morro Bay Negotiations: Voluntary Purchase and Sale • Property: 887 Atascadero Road Negotiating Parties: Clarice E. Righetti Trust and City of Morro Bay Negotiations: Voluntary Purchase and Sale • Property: 307 Morro Bay Blvd Negotiating Parties: Scott Meisterlin and City of Morro Bay Negotiations: Lease Terms and Conditions RECONVENE TO OPEN SESSION — Announcement of reportable action from closed session. if any. ® PUBLIC SESSION 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 CLOSED SESSION REPORT MAYOR & COUNCILMEMBERS' REPORTS. ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS PUBLIC COMMENT - Members of the audience wishing to address the Council on Citv business matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda, but unable to stay for the item, may also address the Council 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 anv 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 cam 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 AGENDA Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MMTES FOR THE CITY COUNCIL MEETING OF MAY 14, 2013; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. 11 A-Z EXECUTION OF A GRANT AGREEMENT WITH THE NATURE CONSERVANCY FOR S35.000 TO FINALIZE CREATION OF THE MORRO BAY COMMUNITY ® QUOTA FUND NON-PROFIT AND . TO SUPPORT REGIONAL FISHNG ASSOCIATION DEVELOPMENT: (ADMINISTRATION/HARBOR) RECOMMENDATION: Authorize execution of the attached S35,000 grant agreement with The Nature Conservancy (TNC) to provide staff and outside legal counsel support for formation of the Morro Bay Community Quota Fund (MBCQF) and support of regional fishing associations.. A-3 ANNUAL UPDATE ON CURRENT LEGISLATIVE BILLS PENDING N SACRAMENTO: (CITY ATTORNEY) RECOMMENDATION: Review this report and if there are any pending Legislative Bills that are of interest or concern, discuss them with your Cih, Attorney. A-4 APPROVAL OF TRACT MAP 3031 (1885 IRONWOOD AVE.) AND ACCEPT THE DEDICATION FOR A PUBLIC UTILITY EASEMENT (MORRO DEL MAR PROPERTIES LLC, SUBDIVIDER); (PUBLIC SERVICES) RECOMMENDATION: Approve the Tract Map 3031 with the acceptance of associated Public Utilitv Easement. ® A-5 STATUS REPORT OF A MAJOR ivLAINTENANCE & REPAIR PLAN (MMRP) FOR THE EXISTING WASTEWATER TREATMENT PLAN; (PUBLIC SERVICES) RECOMMENDATION: Staff recommends that this report be received and filed. A-6 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, SUPPORTING THE EFFORTS N CELEBRATING THE CITY OF MORRO BAY'S 50TH ANNIVERSARY OF IN -CORPORATION: (ADMINISTRATION) RECOMMENDATION: Adopt Resolution 31-13. A-7 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA. SUPPORTING INCREASED FUNDING TO THE CALIFORNIA COASTAL COMMISSION (CCC) TO SUPPORT ENHANCED LOCAL COASTAL PLAN PLANNING AND UPDATES RECOMMENDATION: Adopt Resolution 30-13 B. PUBLIC HEARINGS - NONE C. UNFNISHED BUSINESS - NONE ® D. NEW BUSINESS 3 D-1 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS AND ® DISCUSSION: (ADMINISTRATION) RECONUNIENDATION: Discuss" in open session, the progress to date on the Water Reclamation Facility (WRF) and provide direction to staff as necessary. D-2 HISTORY AND STATUS OF WATER RIGHTS ISSUES N THE CHORRO VALLEY: (PUBLIC SERVICES/CITY ATTORNEY) RECOMMENDATION: Review the staff report on the City's water history and our current ongoing practices related to the City's water rights and issues surrounding the Chorro Valley. After review, public comment and discussion, provide any further direction to Staff. D-3 RECOMMENDATION FROM THE PUBLIC WORKS ADVISORY BOARD REGARDING THE REQUEST FROM THE MORRO BAY CITIZEN'S TREE CONE IITTEE FOR LISTING OF LANDMARK TREES: (PUBLIC SERVICES) RECOMMENDATION: Approve the listing of the 20 Landmark Trees at ten locations as recommended by the Public Works Advisory Board (PWAB) on May 23, 2013. D-4 DISCUSSION AND DIRECTION ON FUTURE EXPIRING LEASES AND CONSIDERATION OF PROPOSALS RECEIVED FOR LEASE SITES 30W-33W (COAKLEY- BAY FRONT MARINA). 34W (CRIZER), 35W-36W (VACANT); AND ® 37W (MEYER - MORRO BAY MARNA INC.); (HARBOR) RECOMMENDATION: Consider alternatives and provide direction to staff. D-5 REVIEW OF THE 2008 MANAGEMENT PARTNER STUDY (ASSESSMENT OF CITY ORGANIZATION AND FINANCIAL OPTIONS), INCLUDING PROGRESS ON THE 21 EXPENDITURE CONTROL STRATEGIES. 13 REVENUE CREATION STRATEGIES AND 4 LONG RANGE STRATEGIES AND PROVIDE FURTHER DIRECTION TO STAFF; (ADMINISTRATION) RECOMMENDATION: Review the attached report on the progress made on the 21 Expenditure Control Strategies, 13 Revenue Creation Strategies and 4 Long Range Strategies from the 2008 Management Partners Assessment of City Organization and Financial Options document and provide staff direction. D-6 STATUS REPORT ON AMENDMENTS TO THE ZONING ORDNANCE (TITLE 17) AS IT RELATES TO SECTION 17.4832 (SECONDARY UNITS), SECTION 17.44.020.1 (NORTH MAIN STREET COMMERCIAL AREA PARKING) AND SECTION 17.27 (ANTENNAS AND WIRELESS TELECOMMUNICATIONS FACILITIES: (PUBLIC SERVICES) RECOMMENDATION: Council review the materials presented in the packet by staff is direct staff to submit to Coastal Commission a Local Coastal Plan amendment to include all three Zoning Ordinance Amendments. 4 ® E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS E C J 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 772-6205 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. C ® M MITES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 28, 2013 VETERAN`S MEMORIAL HALL — 6:OOP.M. PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Leage Noah Smukler STAFF: Andrea Locker Robert Schultz Jamie Boucher Amy Christey Eric Endersby Susan Slavton Joe Woods Rob Livick Rick Sauerwein Mayor Irons called the meeting to order at 6:00 p.m. ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE AGENDA NO: A-2 MEETLNG DATE: 6/11/2013 Mayor Councilmember Councilmember Councilmember Councilmember City, Manager City Attorney Citv Clerk Police Chief Harbor Director Administrative Services Director Recreation & Parks Director Public Services Director Capital Projects Manager CLOSED SESSION REPORT — City, Attorney Robert Shultz reported that City Council met in Closed Session on the following items: Government Code Section 54956.8. Property Transactions instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange or lease of real property as to three parcels: Vacant Lot/Comer of Coral/San Jacinto; 887 Atascadero Road; and 307 Morro Bay Blvd. No reportable action under the Brown Act was taken. MAYOR AND COUNCILMEMBERS' PRESENTATIONS PUBLIC PRESENTATIONS PUBLIC COMMENT REPORTS. ANNOUNCEMENTS & Jason Scheer spoke advertising the opening of their new restaurant. The Grill Hut, located at 3118 No Main Street. It is a family owned bbq restaurant that offers take out, eat in. and catering. All their meat is fresh. never frozen_ and all their recipes are family produced. They are open Sunday. Monday, Tuesdav and Thursday from I Iam-8pm; Friday and Saturday. 1Iam- 9pm; and closed Wednesdays. They hope everybody comes out and gives them a try. n U ® Barry Brannin spoke regarding a closed session item, the vacant lot/comer of Coral/San Jacinto. He stated that property was originally supposed to be a Fire Station but now has been subdivided into developable lots. The City has recently gone through the Cloisters annual assessment and he hopes that if this property is sold. that each parcel would be subject to the Cloister assessment amount as they should share in the cost. Roger Ewing spoke in support of Item D-3, request from the Morro Bay Citizen's Tree Committee for the listing of Landmark Trees. This process has taken many years and he is pleased that PWAB is recommending all 20 trees. He is glad that we can once again call ourselves a Tree City. He publicly thanked Councilmember Noah Smukler. Wally McRea and Taylor Newton as the energy behind this movement. Richard Sadowski followed up on the property at Coral and San Jacinto. He stated that Jeff Edwards was a facilitator for Shea homes. He also attended the Brown Act Study Session and wanted to let the public know that District Attorney Shea is the first responder to Brown Act violations. Also, in 2007 he co -wrote a report on the shortcomings of the current JPA ageement with Cavucos. He feels that to move in a reasonable direction; the City needs to protect its citizens as currently there is a risk of the sewage coming into the City from Cawcos. Ken Vesterfelt spoke on the very successful car show that was held the first weekend in May. He especially thanked David Owens for putting on the BBQ and John Lewan and the Police Explorer Unit for all their help. There were 532 vehicles on the street of which only 8% were ® from within the Countv. He also stated that Dennis Gage said that the event was well organized and that the Citv is a gem. His television show taped during the car show will tape next April. Lynda Merrill also spoke on Item D-3 thanking the Tree Committee for their efforts to bring awareness to these spectacular trees. Some of the unfunded mandates in Item A-3. the annual update on current legislative bills pending in Sacramento, scare her. She also spoke on Item A-5, the status report on the MMRP for the existing wastewater treatment plant stating that no doubt, we need to keep the old plant functioning; it's too bad it will be so expensive. And finally, she spoke in support of Item A-7. a Resolution supporting increased funding to the California Coastal Commission to support enhanced local coastal plan planning and updates. Jim Davis advertised an upcoming event. the 3`d Annual Veteran's Benefit to support the Veteran' Shuttle Bus. It is being held on Sunday, June 23`d from I-4pm. The event will feature a bbq, live music, and a silent and live auction. All funds go towards the support of the shuttle bus. Bill Martoney announced the passing of his long time neighbor. Eleanor Kolb. Adrienne Harris. Executive Director of the Morro Bav Natural Estuary Program stated that thev have the finalized comprehensive management plan completed and on the website for the Morro Bay Estuary and Watershed. ( www.mbnep.org ) She also thanked all the community members who commented -on this document as well as Citv staff. Thev also have the best management ® practices for harbor maintenance, boating and projects that they have been working on with City staff for many years. MINUTES - MORRO BAY CITY COUNCIL- MAY 28.2013 ® Tavlor Newton advertised the upcoming Green Light Eco-Faire being held this Sunday, June 2"d at St. Timothy's Church from noon — ipm. The event is being sponsored by Eco Rotary. He also thanked those helping out and getting the Landmark Trees presented and passed. The point of a Landmark Trees is to educate our adults and children about the history and heritage of trees in our community. Gary Hixon is still doing Mirror Vision, the Gary Tyler Moore Show and Ozzy Osbourne. He also thinks that everybody is doing a great job. Mayor Irons closed the public comment period. A. CONSENT AGENDA Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE CITY COUNCIL MEETING OF MAY 14, 20li; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 EXECUTION OF A GRANT AGREEMENT WITH THE NATURE CONSERVANCY FOR S35,000 TO FNALIZE CREATION OF THE MORRO BAY COMMUNITY ® QUOTA FUND NON-PROFIT AND TO SUPPORT REGIONAL FISHING ASSOCIATION DEVELOPMENT: (ADMNISTRATIONIHARBOR) RECOMMENDATION: Authorize execution of the attached $35.000 grant agreement with The Nature Conservancy (TNC) to provide staff and outside legal counsel support for formation of the Morro Bav Community Quota Fund (MBCQF) and support of regional fishing associations. A-3 ANNUAL UPDATE ON CURRENT LEGISLATIVE BILLS PENDNG N SACRAMENTO- (CITY ATTORNEY) RECOMMENDATION: Review this report and if there are any pending Legislative Bills that are of interest or concern. discuss them with your City Attorney. A-4 APPROVAL OF TRACT MAP 3031 (1885 IRONWOOD AVE.) AND ACCEPT THE DEDICATION FOR A PUBLIC UTILITY EASEMENT (MORRO DEL MAR PROPERTIES LLC, SUBDIVIDER); (PUBLIC SERVICES) RECOMMENDATION: Approve the Tract Map 3031 with the acceptance of associated Public Utilitv Easement. ® A-5 STATUS REPORT OF A MAJOR MAINTENANCE & REPAIR PLAN (MVIRP) FOR THE EXISTNG WASTEWATER TREATMENT PLANT; (PUBLIC SERVICES) 3 MINUTES - MORRO BAY CITY COUNCIL— MAY 28, 2013 ® RECOMMENDATION: Staff recommends that this report be received and filed. A-6 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA. SUPPORTING THE EFFORTS IN CELEBRATING THE CITY OF MORRO BAY'S 50TH ANNIVERSARY OF INCORPORATION: (ADMINISTRATION) RECOMMENDATION: Adopt Resolution 31-13. A-7 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY. CALIFORNIA. SUPPORTING INCREASED FUNDING TO THE CALIFORNIA COASTAL COMMISSION (CCC) TO SUPPORT ENHANCED LOCAL COASTAL PLAN PLAN`NNG AND UPDATES RECOMMENDATION: Adopt Resolution 30-13 Mayor Irons opened up the public comment period for items on the Consent Calendar: seeing none, the public comment period was closed. Councilmember Smukler pulled Item- A-2 and Mayor Irons pulled Item A-3 from the Consent Calendar. ® MOTION: Councilmember Nancy Johnson moved the City Council approve Items A- 1. A-4, A-5. A-6 and A-7 of the Consent Calendar as presented. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. A-2 EXECUTION OF A GRANT AGREEMENT WITH THE NATURE CONSERVANCY FOR S35.000 TO FNALIZE CREATION OF THE MORRO BAY COMMUNITY QUOTA FUND NON-PROFIT AND TO SUPPORT REGIONAL FISHING ASSOCIATION DEVELOPMENT: (ADMNISTRATION/HARBOR) Councilmember Smukler pulled this item to allow Rick Algert the opportunity to provide status on this project. MOTION: Councilmember Smukler moved the City Council approve Item A-2. The motion was seconded by Councilmember Nancy Johnson and carried unanimously 5-0. A-3 ANNUAL UPDATE ON CURRENT LEGISLATIVE BILLS PENDING N SACRAMENTO: (CITY ATTORNEY) Mavor Irons pulled this item to ask the City Attorney questions and to speak on the recommendations. Citv Attorney Rob Schultz stated that he takes his lead from the League of California Cities. His primary concern is to review the bills that could bring loss of local control. ® MOTION: Mavor Irons moved the City Council approve Item A-3. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. 4 MINUTES -MORRO BAY CITY COUNCIL -MAY 28, 2013 ® B. PUBLIC HEARINGS - NONE C. UNFNISHED BUSINESS —NONE D. NEW BUSNESS D-1 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS AND DISCUSSION; (ADMNISTRATION) City Manager Andrea Lueker presented the staff report/time line. Mayor Irons hoped to begin moving this item to a monthly report; being heard at the second meeting starting in June. Councilmember Christine Johnson would rather see this every two weeks; especially as more things are starting to happen. Both Councilmembers Nancy Johnson and Leage felt hearing this once a month is plenty; especially given the fact that the agendas are so full. Councilmember Smukler thought we should keep this flexible with the possibility of having a consent calendar item at the off -meeting which could then be moved to New Business if there is ® significant progress to announce. There was a majority of Councilmembers requesting this be heard once a month, at the second meeting: with the understanding that if something major occurs. it would be brought up. Public Services Director Rob Livick announced that there is a new NotiN Me Module on the Cirv's website for the WRF project that people can now enroll in. Mayor Irons opened up the public comment period for Item D-1; seeing none, the public comment period was closed. This report was received and filed. D-2 HISTORY AND STATUS OF WATER RIGHTS ISSUES N THE CHORRO VALLEY; (PUBLIC SERVICES/CITY ATTORNEY) City Attorney Rob Schultz and Public Services Director Rob Livick presented the staff report. Mayor Irons opened the public comment period for Item D-2; seeing none, the public comment period was closed. Councilmember Smukler wants to ensure the Council is kept in the loop with use of outside ® counsel and costs of that use. He also announced that the NEP has grants with NOAH and Trout Unlimited to develop a water budget and stewardship plan for that area and they are very 5 MINUTES- MORRO BAY CITY COUNCIL -MAY 28, 2013 ® interested in working with the City on this. He was happy with the presentation, it's important to respect the 1633 order: to work towards the stream gauge and get it installed to gather the data; and to honor our water delivery commitments out there. State water has been a blessing but has also has caused us to lose track of our local sources/resources. This is a good reminder we need to try and be as self-sustaining/self-sufficient as possible. He is comfortable with staffs recommendation of moving forward carefully. He would also like to involve PWAB more in this; they can be used as a sounding board as updates become timely as well as provide community awareness. Mayor Irons totally agrees with the use of PWAB as it will bring more attention of this to the public. We need to move forward with the stream gauge. He feels that Chorro Valley water needs to be looked at as part of our portfolio. He also wants to make sure we can protect and hopefully enhance our water portfolio. Councilmember Christine Johnson also hoped that Council would keep abreast of outside counsel costs. To summarize, this item will brought back as a yearly update; staff is directed to work with the NEP to participate in their project: and this item should be brought to the PWAB. D-3 RECOMMENDATION FROM THE PUBLIC WORKS ADVISORY BOARD REGARDING THE REQUEST FROM THE MORRO BAY CITIZEN'S TREE is COMMITTEE FOR LISTING OF LANDMARK TREES; (PUBLIC SERVICES) Public Services Director Rob Livick presented the staff report. Mayor Irons opened up the public comment period for Item D-3. Nancy Bast stated that trees are a miracle of nature. She congratulated PWAB and the Tree Committee for bringing this forward. She urged Council to accept the recommendation. She feels that an iconic grove of trees has been overlooked: she would like Council to put on the list for consideration of heritage status, the trees that are on the Jordan Terrace public right of way at Cerritos Peak. The public comment period for Item D-3 was closed. Councilmember Nancy Johnson wanted to ensure the public was aware that anybody can nominate a tree or group of trees for landmark status. This can be done via email, letter or phone call to the Public Services office along with the criteria of why they feel it qualifies as a Landmark Tree. The information would be then analyzed and forwaided to PWAB who would then forward their recommendation to the Council. Councilmember Smukler presented the criteria for being declared a landmark tree which included significant habitat value. size and beauty. cultural heritage. age, agricultural ® significance, important functional role in City parks or City Planning, of special significanceplanted by early settlers, and depended on by indigenous cultures (Chapter 12.08 of the Code). 6 MINUTES - MORRO BAY CITY COUNCIL - MAY 28, 2013 ® He also wanted to publicly recognize the three Tree Committee members Wally McRae. Bob Shriber, and Taylor Newton for all their work on putting this together. He hopes the landmark tree concept will be included in the Urban Forest IvIanaoement Plan as well as include the expansion of a public education and awareness component into the plan. He also stated he'd had the opportunity to talk to the Historical Society who plans to incorporate these trees into their walking tour for the Citys 50'h Anniversay Celebration. He supports this and feels we should assist the Historical Society in the mapping and outreach effort. He would also like to try and identify sponsors for these trees to help with their care and maintenance. Councilmember Leage also supports staffs recommendations and wanted to thank those involved. Councilmember Christine Johnson would like to accept the entire recommendation from the committee and staff and say congratulations as well. Mayor Irons acknowledged the great work from the Committee and staff as well. Councilmember Smukler would like to see how we could include trees other than those in the public right of way as part of the general plan update. MOTION: Councilmember Smukler moved to approve, with the comments made, the 20 Landmark Trees. The motion was seconded by Councilmember Leage and carried ® unanimously 5-0. D-4 DISCUSSION AND DIRECTION ON FUTURE EXPIRING LEASES AND CONSIDERATION OF PROPOSALS RECEIVED FOR LEASE SITES 30W-33W (COAKLEY — BAY FRONT MARLNA), 34W (CRIZER). 35W-36W (VACANT). AND 37W (MEYER — MORRO BAY MARINA INC.): (HARBOR) Harbor Director Eric Endersby presented the staff report. Jay Coakley made his presentation: in 1947 when the State of California turned the lease sites over to the Countv, the bylaws stated that lease sites south of Tidelands Park should rent to upland owners as long as they are good tenants and in his opinion, they are good tenants. He also doesn't feel that combining the lease sites is a good idea as there won't be adequate parking and you will have to get a Coastal Permit which will be very hard. He is asking for a long term lease because at the end of the lease which is January. he doesn't want to have to remove the pier as it will prove to be very costly. He would rather keep it there and be responsible for pier maintenance and upkeep. Bob Crizer is the current leaseholder of lease site 34W which is not contiguous with upland property. In that process they went thru creating easements for site access and the use of bathroom facilities, water and power. These easements went through and were acceptable to the City Attorney. Parking also came with the lease site. His proposal is a clear lease renewal based ® on good stewardship of the lease site. Records will reflect that he has met the lease requirements and has met them on time. He continues to maintain his lease. dock floats, updated fire 7 MINUTES - MORRO BAY CITY COUNCIL -MAY 28, 2013 ® suppression system and rotten timbers. Best practices would allow him to provide new structures and.have the City provide an automatic extension of the lease once he has made those improvements. He can't financially budget for these improvements without an automatic extension. Bill Martoney spoke on behalf of lease sites 34W and 35-36W. Regarding 34W, he doesn't' feel the lease for the site should be extended as the document is defective and flawed. That aside. this water lease site has always been attached to the land. He feels the restrooms haven't been maintained and he will replace the failing walkway. He also feels it makes common sense that alone with having parking rights. to reattach to the land as it would be a much more usable scenario as well as eliminate lot of potential future legal issues. Regarding Lease Site 35-36W. he would like to move forward with the mariculture proposal. The side tie floating dock will be 120 foot lone and will have 240 running feet of side tie floating capability. This can be used for multiple uses. it doesn't all have to be mariculture. This is not a complicated area; if you have upland propertv owners leasing the lease sites then your problem is solved; if you mix and match owners and outside leases you will create a can of worms. Mayor Irons opened up public comment for Item D-4. Nancy Bast spoke regarding the general policy of the City. She feels that a majority of the City's promotional monies are aimed at waterfront and associated businesses. One of her concerns is the City be compensated accordingly for the residents' promotional monies that go into the ® success of the Embarcadero businesses. The Embarcadero used to have a vast diversity of individual businesses. Now an entire block of lease sites can be bought and consolidated into one. The direction towards consolidations of lease sites has cost the City_ monev as there was no financial certification of subleases. These and all lease sites should be used for the highest and best interest for the people of California. She asked what this Council's policy towards consolidation was. Barry Brannin feels it obvious that the property owners immediately adjacent to the water lease can do the best job, provide public services and actually run a business. He urged Council to look at alternative uses other than boat slips: look for what the public wants; the City needs industry. He felt it important for the people who have the land lease to have the opportunity for the water lease sites. Bernadette Pecarick, owner of the Cannery property; spoke regarding Lease Site 34W stating that they have the fire access to that entire area and fir. Crizer doesn't, all he has is a fire hose. If there were a fire. it could be a huge liability to all the properties down there. The public comment period for Item D-4 was closed. Councilmember Leage feels these discussions should have taken place in Closed Session first before hearing it in open session because of the legal questions. He also believes that an upland owner should have the lease site which would then eliminate consolidation. He also feels that a ® master plan for the sites with the individual leaseholders for the entire area would be a good idea. I MINUTES - MORRO BAY CITY COUNCIL - MAY 28. 2013 Councilmember Christine Johnson posed a general question to the Council — do we want to take a once in a lifetime view of this area. She felt it might be important to hear from the public and their vision for this area one more time before sending this to closed session. Councilmember Smukler was readv to make some decisions this evening but is inclined to bring this back to the next meeting to hear from the public on the community's vision for the area. Council's first responsibility should be to take this new process calmly and provide the public input opportunities by posing the question to the community directly. Councilmember Nancy Johnson also feels that a master plan for the area is important. She feels that going to closed to discuss this should be the first step as there are legal questions. As there were questions to applicants, public comment was re -opened: seeing none, public comment period was closed. Mavor Irons sees Lease Site 30-33W as something we can direct staff to go to the applicant and begin negotiations with unless we decide we want to consolidate. Councilmember Smukler feels fairly confident that the community doesn't want consolidation in that area. He feels we can move forward with most of this as the proposals don't make much of a change. ® There was Council consensus to move forward with negotiations on Lease Site 30-33W; in addition, Councilmember Smukler asked staff to explore public access, the vertical boardwalk concept and investment versus lease length. There was Council consensus to move forward with negotiations on Lease Site 37W with a request for staff to consider public access, lease term versus investment, as well as evaluating some hazardous materials containment options. Regarding Lease Site 35W-36W, Mayor Irons was hesitant to tie this lease site up if there isn't a viable project or something that will be followed through on. Before moving forward, it might be helpful to have more of a business plan. Councilmember Leage still feels that having a master plan for the entire area would be very helpful. All the lease site holders could work together to provide an overall view. Councilmember Christine Johnson felt that the concept of mariculture was intriguing and would like to see a strong robust business proposal before sending it on. Both Councilmembers Nancy Johnson and Smukler thinks we need to move everything forward so staff can begin negotiations and would like to see more details on the proposal for 35W-36W. MOTION: Councilmember Nancy Johnson moved to proceed to negotiations with ® upland owners on Lease Sites 30W-33W, 35W-36W, 37W and 34W. The motion was seconded by Councilmember Leage and carried unanimously 5-0. 9 MINUTES - MORRO BAY CITY COUNCIL - MAY 28. 2013 E D-5 REVIEW OF THE 2008 MANAGEMENT PARTNER STUDY (ASSESSMENT OF CITY ORGANIZATION AND FINANCIAL OPTIONS). INCLUDING PROGRESS ON THE 21 EXPENDITURE CONTROL STRATEGIES. B REVENUE CREATION STRATEGIES AND 4 LONG RANGE STRATEGIES AND PROVIDE FURTHER DIRECTION TO STAFF; (ADMNISTRATION) City Manager Andrea Lueker presented the staff report. Mayor Irons opened up public comment for Item D-5: seeing none, the public comment period was closed. Mayor Irons thinks that revising this now is a good idea as we are entering into our budget process. Councilmember Smukler feels it is important to have this discussion now so that if we want to do something, it can be addressed in the budget. He would want to know that what we spent would come back to us in value. He is cautious about throwing money at this when the City can discuss and move forward on many of these items ourselves. Councilmember Christine Johnson wants/needs us to think about cost. If we need to reevaluate expenditures and revenues then we would possibly go in a different direction. She is very willing to look at a different study, possibly paying half as much. and using a different group with a different point of view. Mayor Irons wants to be prudent with the investment we make so he understands the hesitation on Council's behalf. The ability to explore the 2008 version and do a self -check assessment every 5-7 vearsis very valuable. Councilmember Smukler stated that 5 years is a long time, if we were to wait another vear before we address this study. we will be able to see how some of these changes have worked: ie: new management of the lease sites and the economic development program. He feels good about deferring this until next year where we will have even more information and results to evaluate. He also feels regardless of what way Council goes, annual updates of this report will be valuable. Councilmember Nancy Johnson concurs that annual updates and reviews are valuable. It is important though to look at revenue generating possibilities now. There needs to be discussion and public input on what is practical for citizens to do to increase revenues. Councilmembers Leage states that Council talks about bringing more revenue into town but we don't talk about making it as easy as possible to bring business into town which he feels we are neglecting to do. Councilmember Christine Johnson agrees which is why putting dedicated money into economic development and tourism marketing should show a payoff. 10 MINUTES - MORRO BAY CITY COUNCIL- MAY 2812013 There was no motion or action taken on this item. It will be agendized for annual update/review as an informational item. D-6 STATUS REPORT ON AMENDMENTS TO THE ZONING ORDNANCE (TITLE 17) AS IT RELATES TO SECTION 17.48.32 (SECONDARY UNITS). SECTION 17.44.020.1 (NORTH MAIN STREET COMMERCIAL AREA PARKING) AND SECTION 17.27 (ANTENNAS AND WIRELESS TELECOMMUNICATIONS FACILITIES; (PUBLIC SERVICES) Mayor Irons opened up public comment for Item D-6; seeing none, the public comment period was closed. This item was never heard and was continued to a future meeting. E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS - NONE ADJOURNMENT The meeting adjourned at 10:29pm. Recorded by: Jamie Boucher Citv Clerk MINUTES - MORRO BAY CITY COUNCIL - MAY 28, 2013 ] U E City of Morro Bay Morro Bay, CA 93442 (805) 772-6205 NOTICE OF PUBLIC BUDGET WORKSHOP NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Public Budget Workshop on Wednesday, Mav 22, 2013 at 5:00 p.m. to be held in the Morro Bay Veteran's Hall, 209 Surf Street, Morro Bay, California. The City Council will be reviewing the proposed budget for Fiscal Year 2013/2014. DATED: May 16, 2013 Ja ie Boucher, 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 MEETINGS. ® MINUTES - MORRO BAY CITY COUNCIL BUDGET WORKSHOP — MAY 22, 2013 VETERAN'S MEMORIAL HALL — 5:OOP.M. PRESENT: Jamie Irons Christine Johnson George Leage Noah Smukler STAFF: Andrea Lueker Robert Schultz Jamie Boucher Amy Christey Steve Knuckles Eric Endersby Susan Slayton Joe Woods Mayor Irons called the meeting to order at 5:00 p.m. ESTABLISH QUORUM AND CALL TO ORDER ® MOMENT OF SILENCE PLEDGE OF ALLEGIANCE AGENDA NO: A-1 MEETING DATE: 6/11/2013 Mayor Councilmember Councilmember Councilmember City Manager Ciry Attorney Ciry Clerk Police Chief Fire Chief Harbor Director Administrative Services Director Recreation & Parks Director PUBLIC COMMENT - For Special Meetings, members of the audience may address the Council only on items that are listed on the agenda. Craig Schmidt. CEO of the Morro Bay Chamber of Commerce, referred Council to page 16 of the proposed budget. He thanked Council for their continued commitment to economic development and understanding that a healthy business community is a necessary component to the well-being of Morro Bay. They currently have 2 start-up businesses in the business incubator with the goal of nurturing them to the point where they can grow and occupy vacancies in the community. The Chamber is asking for funding in the amount of $58.424 v ith all funds being used for salaries for the Economic Development Coordinator and part time business liaison position whose efforts will be focused on economic data collection; business retention and growth, recruitment of new businesses and creation of a nurturing entrepreneurial climate for the start-up and growth of new businesses. Jayne Behman. hotelier and member of the MBTBID spoke requesting $1 16.850 for the Tourism BureauNisitor's Center from the 2013/14 budget. Their marketing efforts have been working and any cut in local spending will result in a cut to what the TBID can spend in their marketing efforts which will result in lower revenues. ® Karin Moss. the Director of the Morro Bay Tourism Bureau, stated that she was here tonight to answer any questions or provide any feedback the Council may have regarding the TBID's ® budget request. She urged Council to keep the Bureau's budget intact as it will continue to keep the Morro Bay brand in the public eye. She made the following points: —look at marketing dollars as an investment, not as an expense: —cuts will only yield short term gains: — if we cut advertising we are cutting our market share:—marketine in a recession will give you a competitive edge: —marketing is never stagnant, if you're not moving forward. you are moving backwards. Christine Rogers of the Economic Vitality Corporation thanked Council on EVC`s behalf for their continued support over the past year. The EVC continues to work with local business owners to make sure they have access to resources they need to continue to grow and thrive. Listening to our business owners about what they need and working with them to provide what they need is at the heart of the economic strategy project. The 6 clusters of industry identified as providing the majority of our job growth in our new businesses continue to be our local economic drivers. What the EVC is doing is meaningful and now isn't the time to stop. Lynda Merrill asked Council that when they make decisions about spending the City_ 's money, pretend that you yourself earned the money. Joan Solu stated that local tourism has had substantial economic gains during the recession. The TBID/Tourism Bureau has a vision into the future, part of which are goals for economic growth in the tourism industry. They are partnered hand in hand with the Chamber of Commerce's Economic Development Department who has put together a good program with solid research ® and measurable goals. Please support both of those programs as they move forward. She also requested Council set aside monies in the budget for some funding and/or partnership of events celebrating the Citv's 50'' Anniversary Celebration. 11 Neil Farrell_. President of the Public Art Foundation has been working with the 50`h Anniversary Committee and hopes that Council will set aside some funding for a public art project at the round -a -bout. He will be urging others in the community to get on board with this project as well. He feels the entire project could cost approximately $100.000. John Headding sees a significant need to develop a singular point of contact for Economic Development, recruitment and retention. With that as a driving force, things can happen quicker, less costly and more efficiently. The public comment period was closed. PRESENTATION & DISCUSSION OF THE 2013/14 FISCAL YEAR BUDGET Administrative Services Director Susan Slayton gave an overview of the City's budget process. She then presented the FY 2013/14 Budget. She stated that the budget was balanced. Each Department Head then gave a brief overview of their department's requests; Discussion was then brought back to the City Council for questions and comments. MINUTES - MORRO BAY CITY COUNCIL BUDGET WORKSHOP - bLAY 22.2013 ® Councilmember Christine Johnson hoped to begin discussions on the additional funding requests received; revenue generating opportunities, and budget philosophy (zero based philosophy vs a program based philosophy). Mayor Irons hoped to wait for discussions on revenue generating ideas in hopes of waiting for Councilmember Nancy Johnson to be here. Councilmember Smukler also thought it important to touch base on Measure Q. There was a discussion on the difference between zero based budgeting and program based budgeting. Administrative Services Director Susan Slayton reviewed the concepts/philosophies of each. The program based philosophy, while possible, would take much more staff time to implement. There were would be surveys, workshops, priority selection, etc. and would almost have to be started soon after this budget was adopted. This led Councilmember Christine Johnson to try and consider Betting community feedback on the budget during the goal setting process and then tying our goals to our budget. Both Councilmember Smukler and Mayor Irons agreed that having the nexus of goals to budget and community involvement would be important. There was discussion of funding requests which included: • Friends of the Library - $5.000: • 50`h Annviersary Celebration -'amount TBD • SLO County Housing Trust - S.1000 ® EVC - S5,000 • Tourism Bureau - $58,500 • Community Art Foundation - amount TBD El Councilmember Christine Johnson spoke regarding the SLO County Housing Trust stating that their request is focused on low, very low and moderate income buildin-Ohousing projects. She hoped they could fund this request stating that maybe the funds could come from the Affordable Housing Fund. Councilmember Smukler spoke on the Tourism Bureau request stating that he would need to see clearly how funding this would affect us positively in the City's revenue stream and how we would track the impacts of those funds: how those funds would be involved in events and regional marketing components: and the ..Shop Local" campaign. He doesn't want those funds generically rolled into their overall budget. He doesn't want to just see their detailed budget presentation: he wants to see the plan and strong justification behind the budget. Councilmember Smukler also spoke on ikleasure Q hoping for more detail on the overall streets maintenance picture. He also wants detail on City contracts and consulting costs. Further, he wants a clear description of cost allocations to different funds - a "clear map" of where employee costs are allocated. He would also like to begin hearing recommendations on how to start budgeting/funding for the 420 million we have in asset replacements. And finally, he wanted to look at alternative healthcare options outside of PERS. 3 MINUTES - MORRO BAY CITY COUNCIL BUDGET WORKSHOP — MAY 22, 2013 ® Mayor Irons concurred that reflecting on the adopted goals each year in an effort to determine where the funding vrill come from in our attempt to fund those goals is important. The meeting concluded; the nest Budget Workshop is scheduled for Wednesday. June 12. 2013 beginning at 5:00pm at the Veteran's Hall. ADJOURNMENT The meeting adjourned at 833pm. Recorded by: amie Boucher City Clerk CJ 4 MINUTES - MORRO BAY CITY COUNCIL BUDGET WORKSHOP- MAY 22. 2013 City of Morro Bay ® Morro Bay, CA 93442 (805) 772-6205 NOTICE OF MORRO BAY STUDY SESSION REGARDING THE BROWN ACT AND FAIR POLITICAL PRACTICES COMMISSION (FPPC) REQUIREMENTS, AND COUNCIL POLICIES & PROCEDURES The City of Morro Bay will be holding a Study Session to review and discuss the Brown Act and FPPC Requirements, and Council ® Policies & Procedures on Tuesdav, Mav 21, 2013 at 6:00 D.m. in the Veteran's Memorial Buildine located at 209 Surf Street, Morro Bay, California. The public is encouraged to attend and participate in a review of these subject matters. DATED: May 14, 2013 Ja Boucher, City Clerk IN COMPLIANCE WITH THE A1,'IERICANS 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. ® 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 TUESDAY, MAY 14, 2013 PUBLIC SESSION 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 isCLOSED SESSION REPORT MAYOR & COUNCILMEMBERS` REPORTS. ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS PUBLIC COMMENT - Members of the audience wishing to address the Council on City business matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda. but unable to stay for the item; may also address the Council at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mavor, 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 anv 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 0 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 AGENDA 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 JOINT CITY COUNCILIPLANNNG COMMISSION MEETING OF APRIL 23, 2013; (ADMINISTRATION) RECOMVIENI)ATION: Approve as submitted. A-2 APPROVAL OF CITY COUNCIL MINUTES FOR THE CITY COUNCIL MEETING OF APRIL 23, 201 3; (ADMINISTRATION) RECOMI�IENDATION: Approve as submitted. A-3 APPOINTMENT OF ONE (1) RECREATION & PARKS COMMISSION MEMBER TO A CURRENT BOARD VACANCY: (ADMINISTRATION) is RECOMMENDATION: Appoint Bob Swain to the vacancy on the Recreation & Parks Commission for the remainder of the term which expires January 31, 2014. A-4 AUTHORIZATION TO FILE NOTICE OF COMPLETION FOR PROJECT NO. MB2012-WCO1: MORRO BAY LIFT STATION 3 AND SSFM UPGRADE (PUBLIC SERVICES) RECOMMENDATION: Authorize staff to file the Notice of Completion for Morro Bay Lift Station 3 and Sanitary Sewer Force Main Upgrade Project and transfer required funds from the Server Accumulation fund to the Lift Station 3 SSFM Upgrade project.. A-5 RESOLUTION AUTHORIZING MATCHING FUNDS AND GRANT AGREEMENT FOR THE MORRO CREEK ivfULTI-USE TRAIL AND BRIDGE PROJECT; (PUBLIC SERVICES) RECOiNLNIENDATION: Adopt Resolution 29-13 authorizing execution of the grant agreement and approving matching requirements amounting to 20% of project costs. B. PUBLIC HEARINGS l ® B-I RESOLUTION NO. 28-13 CONTINUING THE PROGRAM AND LEVYNG THE ASSESSMENTS FOR THE 2013/14 FISCAL YEAR FOR THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT (MBTBID); (ADMINISTRATIVE SERVICES) RECOMMENDATION: continuation of Hold a public the N BTBID, and hearing, adopt record testimony for/against the Resolution No. 28-13 levying the assessments for. B-2 RESOLUTION APPROVING THE ENGINEERS REPORT AND DECLARING THE INTENT TO LEVY THE ANNUAL ASSESSMENT FOR THE NORTH PONT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 26-13 declaring the intent to levy the annual assessment for the maintenance of the North Point Natural Area and approving the Engineers Report. B-3 RESOLUTION APPROVING THE ENGINEERS REPORT AND DECLARING THE INTENT TO LEVY THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING NIAINTENANCE ASSESSMENT DISTRICT: (RECREATION & PARKS) ® RECOMMENDATION: Adopt Resolution No. 27-13 declaring the intent to levy the annual assessment for the maintenance of the Cloisters Park and Open Space and approving the Engineers Report. B-4 PUBLIC HEARING TO RECEIVE PUBLIC COMMENTS. AND PROVIDE FURTHER DIRECTION TO STAFF AND APPLICANT REGARDING A REQUEST FOR AN ABANDONMENT (E00-103) AND COASTAL DEVELOPMENT PERMIT (CPO-391) TO ALLOW THE ABANDONMENT OF A PORTION OF THE PUBLIC RIGHT OF WAY (ROW) NOT USED FOR PUBLIC STREET PURPOSES USING THE PROCEDURES PROVIDED BY THE CALIFORNIA STREETS AND HIGHWAYS CODE, SECTION 8300 ET SEQ. THE ABANDONMENT IS LOCATED WESTERLY OF THE EXISTING BACK OF CURB OF TORO LANE, BETWEEN YERBA BUENA AND NORTH PONT SUBDIVISION. (GREG FRYE, 3420 TORO LANE. APPLICANT); (PUBLIC SERVICES) RECOMMENDATION: Receive public comment regarding the proposed abandonment and provide direction to staff based on the listed alternatives. C. UNFNISHED BUSINESS - NONE D. NEW BUSINESS 3 ® D-1 CONSIDERATION OF ALLOWING THE COUNTY OF SAN LUIS OBISPO TO USE THE FACILITY AT 535 HARBOR STREET FOR AN INTERIM LIBRARY DURING THE MORRO BAY LIBRARY REMODEL: (ADMINISTRATION) RECOMMENDATION: Authorize the County of San Luis Obispo to utilize the facility located at 535 Harbor Street as a temporary library facility during the remodel of the Morro Bay Library. Staff further recommends the City Council review the provided alternatives with staff recommending Alternative 3. D-2 REVIEW OF THE MASTER FEE SCHEDULE AS IT RELATES TO MINOR USE PERMIT FEES FOR THE BUSNESS PROPOSED FOR 1700 PARK AVENUE. (TROSS MOBILE AUTOMOTIVE AND RN REPAIR BUSNESS); (PUBLIC SERVICES) RECOMMENDATION: Require the payment of the fees for the processing of a Minor Use Permit for the relocation of a mobile automotive repair business at 1700 Park Avenue. D-3 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS AND DISCUSSION: (ADMINISTRATION) RECOMMENDATION: Discuss in open session, the progress to date on the Water ® Reclamation Facility (WRF) and provide direction to staff as necessary. D-4 AUTHORIZE PUBLIC SERVICES DIRECTOR TO FINALIZE THE CONTRACT FOR THE PLANNING CONSULTANT FOR THE NEW WRY AND APPROVE THE DRAFT "SCOPE OF WORK"; (PUBLIC SERVICES) u { RECOINIMENDATION: Authorize finalizing the contract for the Planning Consultant and approve the draft Scope of Work. D-5 HISTORY AND STATUS OF WATER RIGHTS ISSUES IN THE CHORRO VALLEY: (CITY ATTORNEY/PUBLIC SERVICES) RECOMMENDATION: Review the comprehensive staff report on the City's water history and our current ongoing practices related to the City's water rights and issues surrounding the Chorro Valley. After review, public comment and discussion provide any further direction to Staff. D-6 COUNCIL CONSIDERATION OF REQUESTS FOR PROPOSALS FOR CURRENTLY VACANT LEASE SITES 138-139 (BETWEEN NORTH T-PIER PUBLIC RESTROOM AND CRILL'S), 107W-108W (ADJACENT TO SOUTH T- PIER), AND 49/49W (SOUTH OF ASSOCIATED PACIFIC CONSTRUCTORS): (HARBOR) 4 ® RECOMb'IENDATION: Approve Requests for Proposals (RFPs) for vacant Lease Sites 138-139, 107W-108W, and 49/49W. E D-7 DISCUSSION ON OPENING THE BATHROOM AT LIFT STATION 2 ON THE ENIBARCADERO DURING SUMMER MONTHS; (RECREATION & PARKS) RECOMMENDATION: Discuss the possibility of opening the bathroom to the public which is located at Lift Station 2 at the north end of Front Street for the summer months. D-8 REVIEW OF THE 2008 MANAGEMENT PARTNER STUDY (ASSESSMENT OF CITY ORGANIZATION AND FINANCIAL OPTIONS), INCLUDING PROGRESS ON THE 21 EXPENDITURE CONTROL STRATEGIES. 13 REVENUE CREATION STRATEGIES AND 4 LONG RANGE STRATEGIES AND PROVIDE FURTHER DIRECTION TO STAFF: (ADMNISTRATION) RECOMMENDATION: Review the attached report on the progress made on the 21 Expenditure Control Strategies, 13 Revenue Creation Strategies and 4 Long Range Strategies from the 2008 iNlanagement Partners Assessment of City Organization and Financial Options document and provide staff direction. E. COUNCIL 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 772-6205 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. 5 11 MINUTES —MORRO BAY CITY COUNT 1CIL REGULAR MEETING —MAY 14, 2013 VETERANWS MEMORIAL 14ALL — 6:OOP.M. PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Leage Noah Smukler STAFF: Andrea Lueker Robert Schultz Jamie Boucher Amy Christey Steve Knuckles Eric Endersby Susan Slayton Joe Woods Mayor Irons called the meeting to order at 6:00 p.m. ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE AGENDA NO: A-1 MEETING DATE: 5/28/2013 Mayor Councilmember Councilmember Councilmember Councilmember Citv Manager Citv Attomev City Clerk Police Chief Fire Chief Harbor Director Administrative Services Director Recreation & Parks Director CLOSED SESSION REPORT — There was no closed session. MAYOR AND COUNCILMEMBERS' REPORTS_. ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS PUBLIC COMMENT Colleen Wall. Choir Director at Morro Bay High School, thanked everybody for their support and commitment to the MBHS Music program. She advertised the upcoming Bands on the Run event. She then introduced the Chamber Choir who sang "Chattanooga Choo Choo" Bettv Winholtz spoke on Item B-4, the Toro Lane Abandonment proposal stating that this disturbed her for 3 reasons: —the community is completely 99% saying don't abandon; —the City_ Council directed staff to come back with options; and. --there are no options to choose from. Steve Shivelv sat on the Selection Committee for the New WRF Consultant and wanted to thank all 5 Councilmembers for giving him the opportunity. He felt the process worked well and that the committee was able to select a very good consultant to move forward with. He encourages the City utilize this same process in the future. And he also encourages more of the community, for and against, to be part of the process as it is the way to be heard. Debbie Clark. President of the MBHS Music Boosters. advocated for music on behalf the ® booster's program as they provide for the needs of the MBHS music department and students. filling the gap between the school budget and the needs of the music program. education and scholarships. She invited the community to their inaugural event. Bands on the Run with a spaghetti feed being held on Friday, May 24d' and the Fun Run on Saturday. May 25d'. Rigmore thanked the City for the sidewalk repair on Market Avenue between Beach and Surf, it was a beautiful job. She is now looking forward to tree planting. She also hopes the City will grant her son a permit to put concrete by the windows on the Sun Bulletin building. Brian Stacy is looking for help as he feels he has no civil rights and is being blocked access to law enforcement and civil liberties. He is hopeful that the Council can help get his civil liberty back. Trina Dougherty spoke on behalf of Eco Rotary advertising their upcoming event — Green Light Eco Faire benefitting Unite to Lights solar reading lights which are distributed worldwide to underdeveloped areas where there is little to no electricity. The event is being held on Sunday. June 2"d from noon — 5pm at St. Timothy's. This is a zero waste event, admission is free, and to date. they have over 30 Eco-focused vendors attending. Lynda Merrill spoke in support of Item B-2 and B-3, approving the intent to levy the assessments at North Point and Cloisters. She also spoke on Item B-4, the Toro Land Abandonment proposal and she asked Council to terminate the abandonment proceedings as open space is rare. this is ® priceless property and there may be wonderful future uses. She also supports Item D-1. allowing the Library to use a City facility; she says no to Item D-2 as she says no special privileges please and asked Council to carry on with Item D-3. the WRF Status Report. John Dinunzio spoke on behalf of the Chamber of Commerce/Economic Development Program advertising 3 upcoming activities/events: —Morro Bay City Services and Retail Needs Survey urging residents to please fill it out; --Event Planners Meeting being held on Wednesday. May 29d' from 830-1030am at the Fire Dept: and a Job Seeker Academy on June 9d' from 830am- 430pm at the Veteran's Hall. Michele Jacquez, Chair of the MBTBID, urged Council's continued support of the Tourism Bureau by passing the Resolution levying the TBID assessments. Joan Solu, on behalf of the Community Foundation, promoted a fundraising event being sponsored by Studio Fitness benefitting the Community Foundation. She also thanked the City for their ongoing support of the Foundation. Regarding Item B-1. the MBTBID Assessment, she stressed that Morro Bay and the MBTBID has a wonderful, open -line of communication with the Hoteliers and are happy to hear from them at any time. Also, regarding Item A-5, she supports the Morro Creek project feeling it is a wonderful project for the community. Dmvn Beattie, resident at the Cloisters. brought up a request to direct staff to provide history of and further direction to. get the raised overlook at the south end of the Cloisters community ® beach access rebuilt. And if staff doesn't have the information. to let the Cloisters residents know who they can contact in order to move forward. 7 MINUTES - MORRO BAY CITY COUNCIL — MAY 1412013 Carrie Burton spoke on Item D-5. History and Status of Water Rights Issues in the Chorro ® Valley. She stated that when these issues started in the Chorro Valley; residents were told they had no contracts. they had no rights and they were done. Since that time. she has found 3 contracts issuine her water on 3 different dates. Her issue lately is - does the City even know what their rights are. She has recently dug up 2 Resolutions from back in 1964 where the County of SLO transferred over a water district to the City of Morro Bay which also included assets such as her wells, her pipelines, her property. the land, etc. The Resolutions also talk about incorporated boundaries and service boundaries of the Chorro Valley. Susan Stewart encouraged everybody to fill out the Survey that was mailed to residents. It's almost a duplicate of a survey done 20 years ago; the value will be in the comparison from then to now. This is an important way to look at what residents are wanting and feel they are missing in town. Mayor Irons closed the public comment period. A. CONSENT AGENDA 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 JOINT CITY COU-NCIL/PLANNING COMMISSION MEETING OF APRIL 23, 2013; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF CITY COUNCIL MINUTES FOR THE CITY COUNCIL MEETING OF APRIL 23, 2013; (ADMINISTRATION) 1 J RECOMMENDATION: Approve as submitted. A-3 APPOINTMENT OF ONE (1) RECREATION & PARKS COMMISSION MEMBER TO A CURRENT BOARD VACANCY; (ADMINISTRATION) RECOMMENDATION: Appoint Bob Swain to the vacancy on the Recreation & Parks Commission for the remainder of the term which expires January 31, 2014. A-4 AUTHORIZATION TO FILE NOTICE OF COMPLETION FOR PROJECT NO. M132012-WCO1: MORRO BAY LIFT STATION 3 AND SSFM UPGRADE (PUBLIC SERVICES) RECOMMENDATION: Authorize staff to file the Notice of Completion for Morro Bay Lift Station 3 and Sanitary Sewer Force Main Upgrade Project and transfer required funds from the Sewer Accumulation fund to the Lift Station 3 SSFM Upgrade project.. 3 MINUTES- MORRO BAY CITY COUNCIL -MAY 14. 2013 f A-5 RESOLUTION AUTHORIZING MATCHING FUNDS AND GRANT AGREEMENT ® FOR THE MORRO CREEK NiULTI-USE TRAIL AND BRIDGE PROJECT: (PUBLIC SERVICES) RECOiVLMENDATION: Adopt Resolution 29-13 authorizing execution of the grant agreement and approving matching requirements amounting to 20% of project costs. Mayor Irons opened up the public comment period for items on the Consent Calendar; seeing none, the public comment period was closed. Councilmember Christine Johnson pulled Items A-3 and A-5 from the Consent Calendar. MOTION: Councilmember Nancy Johnson moved the City Council approve Items A- 1. A-2, and A-4 of the Consent Calendar as presented. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. A-3 APPOINTMENT OF ONE (1) RECREATION & PARKS COMMISSION MEViBER TO A CURRENT BOARD VACANCY; (.ADMINISTRATION) Councilmember Christine Johnson pulled this item to recognize Bob Swain for his desire to serve on the Commission. Councilmember Noah Smukler thanked Bob Swain for his perseverance. is MOTION: Councilmember Smukler moved the City Council approve Item A-3. The motion was seconded by Councilmember Nancy Johnson and carried unanimously 5-0. A-5 RESOLUTION AUTHORIZING MATCHING FUNDS AND GRANT AGREEMENT FOR THE MORRO CREEK NIULTI-USE TRAIL AND BRIDGE PROJECT: (PUBLIC SERVICES) Councilmember Christine Johnson pulled this item stating that in 2012. the bridge over Morro Creek was the.#1 unmet bike and pedestrian need in the City. She feels it would be wonderful if it were open by July 4. 2014. She thanked staff for bringing this forward. Councilmember Smukler added that the RFP for this project has been released. MOTION: Councilmember Christine Johnson moved the City Council approve Item A-5. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. PUBLIC HEARINGS B-I RESOLUTION NO. 28-13 CONTINUING THE PROGRAM AND LEVYING THE ASSESSMENTS FOR THE 2013/14 FISCAL YEAR FOR THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT (MBTBID); (ADMINISTRATIVE SERVICES) ® Administrative Services Director Susan Slayton presented the staff report. 4 MINUTES -MORRO BAY CITY COUNCIL -MAY 13. 2013 Mayor Irons opened the public comment period for Item B-1; seeing none, the public comment ® period was closed. Councilmember Smukler recognized the work put in getting to this point and has been impressed to see the new leadership of the Director of Tourism. Mayor Irons stated there has been positive movement and the transition has been swift and positive. MOTION: Councilmember Christine Johnson moved approval of Resolution 28-13. levying the assessments for the 2013/14 fiscal year for the MBTBfD. The motion was seconded by Councilmember Leage 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) Recreation & Parks Director Joe Woods presented the staff report. Mayor Irons opened the public comment period for Item B-2: seeing none. the public comment period was closed. ® MOTION: Councilmember Christine Johnson moved to approve Item B-2, 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. The motion was seconded by Mayor Irons and carried unanimously 5-0. B-3 RESOLUTION APPROVING THE ENGINEERS REPORT AND DECLARING THE INTENT TO LEVY THE AN`ii UAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT: (RECREATION & PARKS) Recreation & Parks Director Joe Woods presented the staff report. Mayor Irons opened up the public comment period for Item B-3 John Lauffer. a Cloisters resident. urged the Council to review the Engineer's Report for accuracy and determination of which costs are applicable. He also supplied a list of questions that he hoped would assist Council in their review. Is the report current, complete and accurate? Which of the estimated costs are to maintain areas that are a special benefit to the residents of the special tax district that are not available to the general public? He maintains that the only special benefit is the watering and maintenance of each of the parcel parkways, between the sidewalk and curb. ® Dawn Beattie. a Cloisters resident, questioned the dollar amount in the Engineer's Report. The S148,944 amount never changes, year to year. She states that the residents have never seen a 5 MINUTES - MORRO BAY CITY COUNCIL - MAY 14. 2013 true -bottoms up estimate of what contractually needs to get done at how much that will cost. She ® also states that the breakout of dollar amounts in excess of the outside contractor amount have been hard to come by. Before approving this year's Engineer's Report, she requests that the last section of the report titled "extra work" be expanded to include items in the budget that are not described anywhere else in the report, especially deferred maintenance. The public comment period for Item B-3 was closed. Mayor Irons requested that the questions raised by citizens in public comment be answered in the next staff report. MOTION: Councilmember Smukler moved to approve Item B-3, approving the Engineer's Report and declaring the intent to levy the annual assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District. The motion was seconded by Councilmember Christine Johnson and carried unanimously. 5-0. B-4 PUBLIC HEARING TO RECEIVE PUBLIC CONLMENTS. AND PROVIDE FURTHER DIRECTION TO STAFF AND APPLICANT REGARDING A REQUEST FOR AN ABANDONMENT (E00-103) AND COASTAL DEVELOPMENT PERMIT (CPO-391) TO ALLOW THE ABANDONMENT OF A PORTION OF THE PUBLIC RIGHT OF WAY (ROW) NOT USED FOR PUBLIC STREET PURPOSES USING THE PROCEDURES PROVIDED BY THE CALIFORNIA STREETS AND HIGHWAYS CODE, SECTION 8300 ET SEQ. THE ABANDONMENT IS LOCATED ® WESTERLY OF THE EXISTING BACK OF CURB OF TORO LANE. BETWEEN YERBA BUENA AND NORTH POINT SUBDIVISION. (GREG FRYE. 3420 TORO LANE, APPLICANT): (PUBLIC SERVICES) Public Services Director Rob Livick presented the staff report. Applicant Greg Frye made a presentation in which he offered an option for the surplus land which he felt would provide more usable land for use by the City as well as sell a smaller, less usable portion of the surplus land. His proposal would require a lot line adjustment trading a section of his land for a section of City owned land. This proposal would increase the land depth from 25 — 40 feet on the northern end and from 20-30 feet on the southern end. The City land would now have a much greater usefulness for our community compared with what the City owns and is more than adequate for additional perpendicular parking increasing the current 4 spaces to possibly as many as 10 spaces with room for loading and unloading. In addition to the lot line adjustment, he would be interested in purchasing the remainder of the surplus land adjacent to his Parcel 1. This surplus land has very little additional use for the City due to the topography, slope and ESH. The City can also generate some revenue from the sale. He feels that this proposal represents a win -win solution for both parties. He requests that Council proceed with a vote for this proposal tonight so that the process can be completed in an efficient and timely manner. He also requests an appraisal to establish the square footage price of the surplus land. ® Mayor Irons opened up the public comment period for Item B-4. 0 MINUTES - MORRO BAY CITY COUNCIL - MAY 14. 2013 Bill Martoney has spoken in the past against the abandonment. He can possibly understand the ® tradeoff for parking; but doesn't want to sell the northern piece as it is the prime piece. That said, he also doesn't think that any of this should be abandoned. Before considering abandonment, the City has options regarding parking and using this property in total without abandoning it. He would use the northern part as a pocket park. Dorothy Cutter feels you should save the property until you can think creatively about its future or keep it and sell it for real market price. This property contains more than just the 6000 square feet: it is ocean view and could be sold for hundreds of thousands of dollars. There is no benefit to give it away but it can be of benefit for the future. Barbara Doerr spoke stating that this idea is short-sighted and counter -productive. She also requested that we look into something environmentally positive for our community; don't transfer public lands to benefit private property owners to create more pollution, hardscape and urban runoff to pollute the ocean and environmentally sensitive natural areas. She requested we plan ahead, do an inventory of vacatable lands and then set policy. Barry Brannin stated that this City property has a path that runs diagonally through it to the beach. Those that live on the east side of Highway 1 use the path to go down to the beach; this path is also used by surfers. If the Coastal Commission sees that we've cut off coastal access to the beach. they will be confused. There is no public access being proposed on this project. Nancy Bast agrees wholeheartedly with the previous speakers. This is one of the most Is picturesque ocean view pieces of land in Morro Bay and we own it; keep it for us. Bob Geller agrees with the previous speakers. He requests denial of the abandonment. The land is one of our greatest resources. once we give it away_. we can never take it back. He urged Council consider all benefits we could lose by doing this tonight. Applicant Greg Frye responded to questions raised by those speaking in public comment. First, when they went into escrow on this property, the prospect of abandonment had already been raised by the previous owner and had never been on their radar. Second, the City owns the strip of land and while there is a path that goes across their property, there is trespassing across there; providing some kind of public access is fine but giving up the surplus land doesn't change the access. Third, as far as degrading it, right now it's been unmaintained for 50 years: any development would include beautification which could only be a plus. He feels that parking is a big issue and he has done his best to provide something feasible. The public comment period for Item B-4 was closed. Councilmember Nancy Johnson likes the proposed changes the applicant has recommended as it gives us additional parking that people want and gives him access and property he can use for his front yard and/or driveway. If we agree to his idea, we aren't cutting people off to the beach as there is access up at North Point as well as access on Yerba Buena. Councilmember Smukler feels that if we want to move forward we need some more details to include some better understanding of public access possibilities, the parking component as well 7 MINUTES - MORRO BAY CITY COUNCIL -MAY 14, 2013 as preliminary financial estimates. He also wants to focus on the strength of the public benefit ® todav and in the long term. He is interested in moving forward and evaluating the various options. Knowing the range of property value to both the City and the applicant would be important when making this decision. Councilmember Leage likes the idea of the property swap. He agrees its 2 transactions and yes. there is benefit for the property owner but there is also a lot of benefit to the City. We need to find out if Mr. Frye is willing to do these separately. Mayor Irons recognizes that this proposal brings public benefit in the form of additional parking. Councilmember Smukler feels it's possible to satisfy the historical public access and that we can greatly increase the parking opportunities for the public and we can come up with a fair land value that could be traded or sold. He feels we are fairly close to a win -win situation. His thought is to direct staff to go back to pursue development scenarios with the applicant; reach out to the Coastal Commission and come back with a more clear presentation of the existing public access and the possible new public access and some different parking scenarios. Councilmember Nancy Johnson feels this is taking more time than it needs to. She thinks we have a really good compromise out there and wants to move forward with the Resolution of Intention to Abandon. Councilmember Leage agrees with moving forward with the Abandonment. is Councilmember Christine Johnson feels that the applicant has had the benefit of time to prepare a plan while the City hasn't and we do need to do our due diligence. This North Point parking lot will be one of the access points for the Ca_yucos Morro Bay Bike Path. She feels we need to think about day use parking needs. She also wants to take enough time to ensure we take into account the public benefit. She would like staff come back with 2 or 3 options for parking; better maps, clean daytime photos, what the beach access would be; and possible some proactive dialogue with the neighbors. She also doesn't feel that the Yerba Buena access point is comparable to the access point at this property. Mayor Irons agrees that moving forward in a continuation type of manner as we work out all the details along with providing a Resolution of Intention. He summarized the item as follows: explore what setback would look like at 20 feet and compare that to the North Point development area; since we are talking about the.Coastal Trail; we should reach out to SLOCOG to get their input which can only make it better; parking options; reaching out to the Coastal Commission; public access through the ESH area; fair value of the property; better maps; daytime photos; and reaching out to neighbors. He feels we should challenge ourselves to come to the next meeting with all that information and be prepared. Staff was directed to bring back the Resolution of Intention along with a staff report answering the questions above to the next Council meeting. is C. UNFINISHED BUSINESS — NONE 0 MINUTES - MORRO BAY CITY COUNCIL - MAY 14, 2013 D. NEW BUSINESS is D-1 CONSIDERATION OF ALLOWING THE COUNTY OF SAN LUIS OBISPO TO USE THE FACILITY AT 535 HARBOR STREET FOR ANI INTERIM LIBRARY DURNG THE MORRO BAY LIBRARY REMODEL; (ADMINISTRATION) City Manager Andrea Lueker present the staff report. Mayor Irons opened up the public comment period for Item D-1. Barbara Doerr requested Council do anything SLO County wants to assist in preserving our City's library access during construction. One of our most valuable public assets in this City is our library and we should do what we can to accommodate them. The public comment period for Item D-1 was closed. Councilmember Smukler agrees it's a very important service and he is glad we are able to help them. Councilmember Christine Johnson presented some library facts. She also stated that reasons to have a temporary library location is that it will serve as a delivery location for ordered books and dvd's. There is also a very vibrant book club/discussion group that will be meeting there. The ability to check out some books and dvd's will also be available. There should also be at least 1 ® public computer on -site. She appreciates the City partnering with the County u Councilmember Leage approves of this temporary use. MOTION: Councilmember Christine Johnson moved to approve Item D-1, alternative T3, allowing the the County of SLO to use the facility at 535 Harbor Street for an interim library during the Morro Bay Library remodel. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. D-2 REVIEW OF THE MASTER FEE SCHEDULE AS IT RELATES TO MINOR USE PERMIT FEES FOR THE BUSINESS PROPOSED FOR 1700 PARK AVENUE. (TROSS MOBILE AUTOMOTIVE AND R/V REPAIR BUSINESS): (PUBLIC SERVICES) Public Services Director Rob Livick presented the staff report. Mayor Irons opened the public comment period for Item D-2. Applicant Steve Tross has been trying to get his business started since December 2012 and this permit fee is holding him up. Irs a lot of money to pay: he even had to show staff where the location was, they didn't know as it isn't on the address book. These types of fees aren't good for business as they deter people from opening a business in Morro Bay. E MINUTES - MORRO BAY CITY COUNCIL - MAY 14, 2013 Barbara Doerr realizes that we can`t waive the fees but maybe we can set up a payment plan if he ® truIv can't afford them. She also felt it necessary to establish a moratorium on anv further development of new businesses in that area until we come up with a new General Plan and Local Coastal Plan. The public comment period for Item D-2 was closed. Councilmember Nancy Johnson doesn't see any reason to waive the fees: she mentioned that there is an empty auto repair shop on Quintana that wouldn't necessitate a use permit fee. Councilmember Smukler stated it would be dangerous for the City to waive fees as it opens the door to additional requests. The City is only trving to recover its costs. In this case however it offers up the opportunity to track staff costs as thev deliver these kinds of processes which could allow us to be more efficient. Mayor Irons remembered that the last time a fee waiver was requested, we denied the waiver but offered up a payment plan: he thinks the same can be done here. He also thought it might be a good idea for the applicant to check out other locations that might not require the permit fees. He would also support staff tracking their time and materials but doesn't want the applicant to have to pay more than the specified fee. MOTION: Councilmember Smukler moved to deny the application for waver of permit fees; work with the applicant on a payment plan: and direct staff to track all ® building and planning permit staff time across the board and return to council in an appropriate period with a review of the results of that tracking and in this case, do not exceed $698. The motion was seconded by Mavor Irons and carried unanimously 5-0. D-3 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS AND DISCUSSION; (ADMINISTRATION) City Manager Andrea Lueker presented the staff report/time line. Mayor Irons opened up the public comment period for Item D-3. Don Boatman thanked the Council for electing him to the WRF Selection Committee. The discussions held were honest and fair and he was extremely impressed with the selection committee's choice. The public comment period for Item D-3 was closed. There was no Council discussion on this item. D-4 AUTHORIZE PUBLIC SERVICES DIRECTOR TO FINALIZE THE CONTRACT FOR THE PLANNING CONSULTANT FOR THE NEW WRF AND APPROVE THE DRAFT "SCOPE OF WORK": (PUBLIC SERVICES) ® Public Services Director Rob Livick presented the staff report. 10 MINUTES - MORRO BAY CITY COUNCIL - MAY IA. 2013 ® Mayor Irons opened up public comment for Item D-4: seeing none, the public comment period was closed. Councilmember Smukler recognizes how good he feels about this process. He would like to see additional opportunities to include the public in this sort of capacity whether it's advisory; technical or financial committees. He thinks it would be beneficial to have site tours be public in the form of special public meetings in order to create better understanding and help all of us to be able to come to the best choice. Councilmember Christine Johnson stated it was important to recognize that the 5 citizen's served the City very well. It should be viewed as a model for the future; by incorporating professionals who live in Morro Bay into the process was very fortunate for us. This also allowed the process to be viewed as professional, transparent and rigorous to the applicant. Based on the interview process; she is confident the team understands Morro Bay and is happy to see the balance that they bring; they have great project management experience and have lots of technical advisors as well. Mayor Irons had some questions with the provided scope of work, amendments were made as follows: Page 3. Task 43, add ...stakeholder group will be identified with the assistance of City staff and City Council...: Page 6. Deliverables. add ...our team will meet with City staff and Coastal staff to go over the preliminary conclusions...: and Page 10, Task #li.... meeting with staff and Coastal staff.... ® MOTION: Councilmember Christine Johnson moved for approval of Item D-4. authorizing the Public Services Director to finalize the contract for the planning consultant services for the new WRF and approve the draft "scope of work". The motion was seconded by Mayor Irons and carried 5-0. D-5 HISTORY AND STATUS OF WATER RIGHTS ISSUES IN THE CHORRO VALLEY; (CITY ATTORNEY/PUBLIC SERVICES) This item was moved down on the agenda so Council could address Items D-6 and D-7. Mayor Irons opened up public comment for Item D-5 and Item D-8. Lexie Bell who works at the Morro Bav National Estuary Program thanked the Citv for continuing to work at coming into compliance with their requirements on flow monitoring. They wanted to let the City know they are working on a number of projects in Chorro Valley and working with water users there to look at innovative solutions to winter water storage and other water conservation measures. Barbara Doerr stated that it appears we are in violation by not having continuous flow monitoring for Chorro Creek; she suggested that if we postpone this item then we need to do something about the continuous flow monitoring in the creek. ® The public comment period for Items D and D-8 was closed. 11 MINUTES - MORRO BAY CITY COUNCIL -MAY 14, 2013 This item was never heard and was continued to a future meeting. D-6 COUNCIL CONSIDERATION OF REQUESTS FOR PROPOSALS FOR CURRENTLY VACANT LEASE SITES 138-1-)9 (BETWEEN NORTH T-PIER PUBLIC RESTROOM AND CRILUS), 107W-108W (ADJACENT TO SOUTH T- PIER). AND 49/49W (SOUTH OF ASSOCIATED PACIFIC CONSTRUCTORS): (HARBOR) Harbor Director Eric Endersby presented the staff report. Mayor Irons opened the public comment period for Item D-6. Bill Martoney stated that the three lease sites have potential but haven't been rented due to limitations. He also brought up the fact that the Morro Bay Manna has 10 more years left on it; if the Harbor Department is looking at generating revenue, it may be a site that the City can take over as irs only slips and shouldn't be a big add -on to operate. The money could supplement the loss of income from the power plant. Barbara Doerr spoke advocating postponement of any action on these RFP's until you have reviewed and established suitable building standards for these parcels. She feels the sites are too small for any development and if developed, may degrade surrounding currently profitable sites. She also thought that once the Library was done usine the 535 Harbor site. then the Harbor ® Department could move up there, in a more central City location and leave the coastal dependent Harbor employees along the Embarcadero. 11 The public comment period for Item D-6 was closed. Councilmember Nancy Johnson would like to see the RFP's put out: with the power plant closing we need to move forward, even with small projects. You never know when something has the potential for development unless you try. She does have a small concern with parkins at the 138-139 lease site as there is limited parking there. Councilmember Smukler thinks it doesn't hurt to put these RFP's out. In 138-1339, we need to recognize that there could be a loss of parking. Mayor Irons spoke on lease site 138-139 stating that he knows this site is being used for parking and for storage. He questioned whether or not site 107W-108W was useable or not leading to consideration if the City could build slips on that site. Regarding 49-49W has the potential for recreational fishing slips there. y MOTION: Councilmember Nancy Johnson moved' for approval of Item D-6. consideration of requests for proposals for currently vacant lease sites 138-139. 107W- 108W. and 4449W. The motion was seconded by Councilmember Leage and carried unanimously 5-0. 12 MINUTES - MORRO BAY CITY COUNCIL - MAY 1412013 D-7 DISCUSSION ON OPENNG THE BATHROOM AT LIFT STATION 2 ON THE EMBARCADERO DURING S , , fER MONTHS; (RECREATION & PARKS) Recreation & Parks Director Joe Woods presented the staff report. As the time was approaching I1:00pm. there was Council discussion on continuing the meeting or not. MOTION: Mayor Irons moved to continue the City Council meeting past the 11:00pm hour. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. Mayor Irons opened up the public comment period for Item D-7. Barbara Doerr urged Council open this new restroom to the public for year round use. The waterfront should serve visitors of all economic levels and that means numerous, clean restrooms. The public comment period for Item D-7 was closed. Councilmember Leage has mixed emotions; any relief for people using restrooms at the restaurants would be nice but this particular restroom is in a funny location and he doesn't feel it will get used very much. ® Councilmember Christine Johnson is supportive of opening this restroom on a trial basis over the summer; she also likes that it will give us the opportunity to sign it and sign the nearby parking lot. Councilmember Nancv Johnson is in favor of opening the restroom for visitors and residents alike. She wants the restroom opened on a year-round basis or at least on weekends in the off tourist season. She agreed we need to sign the parking lot. if a motion was made to only open this for the summer. she would have to vote no as she needs to be responsible to the residents who have repeatedly asked her for this. Councilmember Smukler definitely agrees with initiating summer usage now, especially pairing it with signage for the parking lot. Then for next year. take a look during budget for beyond the summer months. MOTION: Mayor Irons moved approval of Alternative 92, opening the bathroom at Liftstation 42 from Memorial Dav through Labor Day to include way finding public restroom and parking lot signs with staff to come back with analysis for additional review. The motion was seconded by Councilmember Christine Johnson and carried 4-1 with Councilmember Nancv Johnson voting no. D-8 REVIEW OF THE 2008 MANAGEMENT PARTNER STUDY (ASSESSMENT OF Is ON ORGANIZATION AND FINANCIAL OPTIONS), INCLUDING PROGRESS ON THE 21 EXPENDITURE CONTROL STRATEGIES. 13 REVENUE CREATION 13 MINUTES - MORRO BAY CITY COUNCIL - MAY 14. 2013 STRATEGIES AND 4 LONG RANGE STRATEGIES ARID PROVIDE FURTHER DIRECTION TO STAFF; (ADMNISTRATION) Mayor Irons opened up public comment for Items D-6 and D-8 earlier in the meeting; there was no public comment for Item D-8 and the public comment period was closed. This item was never heard and was continued to a future meeting. E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS Councilmember Smukler requested a status report of the State Park Marina Agreement as it relates to Operations and Management; Mayor Irons and Councilmember Christine Johnson concurred. Mayor Irons requested the preparation and discussion of a Parking Plan for uses at the Power Plant Parking Lot Councilmembers Christine Johnson and Leage concurred. ADJOURNMENT The meeting adjourned at 11:19pm. Recorded by: ® "' &ieoucher City Clerk 14 MINUTES - MORRO BAY CITY COUNCIL - MAY 1412013 City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement ojthe 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 TUESDAY, APRIL 23, 2013 PUBLIC SESSION VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., NIORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE ® CLOSED SESSION REPORT MAYOR & COUNCIL MEMBERS` REPORTS. ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS PUBLIC COMMENT - Members of the audience wishing to address the Council on City business matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda. but unable to stay for the item, may also address the Council at this time. To increase the effectiveness of the Public Comment Period._ the followine 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 AGENDA Unless an item is pulled for separate action by the City Council. the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE CITY COUNCIL MEETING OF APRIL 9. 201 3); (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 STATUS REPORT OF A.MAJOR MAINTENANCE & REPAIR PLAN (MMRP) FOR THE EXISTNG WASTEWATER TREATMENT PLAN: (PUBLIC SERVICES) RECOMMENDATION: Receive and file this report. A-3 REVISED RECOMMENDATION FROM THE CITIZENS OVERSIGHT COMM TTEE ON THE REALLOCATION OF STORM DRAIN CARRYOVER FUNDS N THE DISTRICT TRANSACTION TAX (MEASURE Q) FUND; ® (ADMNISTRATIVE SERVICES) RECOMi•IENDATION: Staff recommends accepting the Citizens Oversight Committee's recommendation to reallocate the S471,000 Measure Q storm drain carryover, with S385,000 going to street maintenance, and S86,000 to update the 1987 Storm Drain Master Plan. A-4 QUARTERLY FINANCIAL STATUS REPORT FOR THE FISCAL YEAR ENDED MARCH 31, 201 3); (ADMINISTRATIVE SERVICES) RECOMMENDATION: Accept the reports as presented. A-5 REAFFIRM COUNCIL ACTION OF APRIL 9, 2011 PERTAINING TO THE SELECTION OF FIVE (5) CITIZEN MEMBERS TO PARTICIPATE ON THE SELECTION COMMITTEE FOR CONSULTATION SERVICES FOR THE WATER RECLAMATION FACILITY: (CITY ATTORNEY) RECOMMENDATION: Reaffirm and approve its previous decision by selecting Don Boatman, Stephen Shively, Donald Smith, Paul Donnelly and Valerie Levulett to serve as Citizen Members to Participate on the Selection Committee for Consultation Services for the Water Reclamation Facility. lE C. ® A-6 PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY DECLARNG MAY 2013 AS BIKE MONTH; MAY 13 TO MAY 17. 2013 AS BIKE TO WORK WEEK: AND MAY 8. 2013 AS BIKE TO SCHOOL DAY: (ADMNISTRATION) RECOMMENDATION: Adopt Proclamation. A-7 RESOLUTION 25-13 ADOPTNG FNDNGS TO UPHOLD THE APPEAL AND OVERTURN THE PLANNING COMMISSION'S APPROVAL OF COASTAL DEVELOPMENT PERiMIT (nCPO-390), MORRO STRAND CAMPGROUND IMPROVEMENTS PROJECT: (PUBLIC SERVICES) RECOMiNIENDATION: Approve Resolution No. 25-13 adopting findings to uphold the appeal and overturn the Planning Commission's approval of Coastal Development Permit (#CPO-390). B. PUBLIC HEARINGS B-1 RESOLUTION NO. 24-13 DECLARING THE NTENTION TO CONTINUE THE PROGRAM AND ASSESSMENTS FOR THE 2013/14 FISCAL YEAR FOR THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT (MBTBID) AND SCHEDULING A PUBLIC HEARING TO LEVY THE ASSESSMENTS: ® (ADMNISTRATIVE SERVICES) RECOi\ MENMATION: Approval to hold a public hearing to record testimony for/against the continuation of the MBTBID; review the Morro Bay Tourism Bureau Annual Report and draft FY 2013/14 budget; adopt Resolution No. 24-13; and set the date of May 14, 2013 for a public hearing to levy the assessments. B-2 APPROVAL OF CONSENT OF LANDOWNER FOR LEASE SITE 82-85/82W-85W (ROSE'S LANDNG) TO FILE AN APPLICATION FOR DOCK IMPROVEMENTS AND ALLOW STAFF TO ENTER INTO LEASE NEGOTIATIONS; (HARBOR) RECOMMENDATION: Consider the three alternatives and provide staff direction; staff is recommending Alternative B. C. UNFINISHED BUSINESS - NONE D. NEW BUSINESS D-1 PRESENTATION BY ECONOMIC DEVELOPMENT PROGRAM RECOMMENDATION: Listen to presentation, discuss and provide direction as necessary. 11 3 D-2 REVIEW AND DISCUSSION OF CO-SPONSORSHIP OF SPECIAL EVENTS TO ® INCLUDE INITIAL REVIEW OF THE SPONSORSHIP POLICY: (RECREATION & PARKS) RECOMMMENDATION: Review and consider the Co -Sponsorship Application and process, and provide staff with direction for further refinement. D-3 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS AND DISCUSSION: (ADMINISTRATION) RECOMMENDATION: Discuss the progress to date on the Rater Reclamation Facility (RRF) and provide direction to staff as necessary. D-4 CONFIRMATION OF CITY GOALS AND GOAL OUTLINES FOR 2013: (.ADMINISTRATION) RECOMMENDATION: Adopt the attached City Goals and Goal Outlines for 2013 as designated priorities by the City Council of the City of Morro Bay. D-5 SELECTION OF REAL ESTATE CONTRACT SERVICES AND AUTHORIZATION TO EXECUTE A RESIDENTIAL LISTNG AGREEMENT FOR EXCLUSIVE AUTHORIZATION AND RIGHT TO SELL THE CITY -OWNED PROPERTY ON ® THE CORNER OF CORAL AVENUE AND SAN JACNTO STREET: (CITY ATTORNEY) RECONMIENDATION: Review the five proposals for real estate contract services that have been received, select a real estate broker, and authorize the City Manager to execute a Residential Listing Agreement for exclusive authorization and right to sell the City -Owned Property at the SEC of Coral Avenue and San Jacinto Street.. E. COUNCIL 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 772-6205 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 M1LL'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 REGULAR MEETING — APRIL 23. 2013 VETERAN`S MEMORIAL HALL — 6:OOP.M. PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Leage Noah Smukler STAFF: Andrea Lueker Robert Schultz Jamie Boucher Amy Christey Steve Knuckles Eric Endersbv Susan Slayton Joe Woods . Mayor Irons called the meeting to order at 6:00 p.m. ESTABLISH QUORUM AND CALL TO ORDER ® MOMENT OF SILENCE PLEDGE OF ALLEGIANCE AGENDA NO: A-2 MEETING DATE: 5/14/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager Citv Attornev Citv Clerk Police Chief Fire Chief Harbor Director Administrative Services Director Recreation & Parks Director CLOSED SESSION REPORT — City Attorney Robert Shultz reported that City Council met in Closed Session on April 16`" and 17`", 2013 on the following items: Government Code Section 54957, Personnel Issues regarding one (1) public employee regarding evaluation, specifically the City Attornev: and. Government Code Section 54957.6. Conference with Citv Council. the City's Designated Representative; for the purpose of reviewing the City's position regarding the terms and compensation paid to the following unrepresented employee: City Attornev. No reportable action under the Brown Act was taken. MAYOR AND COUNCILMEMBERS' PRESENTATIONS PUBLIC PRESENTATIONS PUBLIC COMMENT REPORTS. ANNOUNCEMENTS & Janice King. owner of Vibrant Life; a new artist cooperative located at 315 Morro Bay Blvd., on the corner of Morro Bay Blvd and Main Street. They sell beautiful products, paintings, candles, mosaic mirrors. handmade items for the home. etc... They are looking for other artists to join them in their venture. They will also be holding art classes for middle and high school students. Their hours are Wednesday — Saturday, 10-5pm and Sundays noon-5pm. Their phone number is 0 541-218-8275 ® Ken Vesterfelt publicized the great success of Morro Bay's Emergency Car Show. He also advertised the upcoming 17`" Annual Morro Bay Cruisn' Car Show being held on May 2nd — May 5d'. Dennis Gage of My Classic Car will be in attendance, taping one of his show's segments. Stan House spoke on behalf of Friends of the Fire Department congratulating Steve Knuckles on his promotion to Fire Chief. He also said that the fundraising efforts of the Friends of the Fire Department have been very successful. Just recently_ Assemblyman Katcho Achadjian donated $995 for the purchase of a King Vision Video Larvngoscope. He also thanked all those who purchased bricks. Don Doubledee spoke as a Board Member/Director for the Harbor Festival and Car Show regarding City fees charged for these events. He stated that both events brine thousands of people into town who shop, buy gas; stay in motels; all of which bring additional sales tax to Morro Bay. Both events are volunteer run and both donate money to non-profit community groups. He urged Council to consider rethinking charging fees for these events as they would much rather partner with the City. Keith Tavlor stated that the Emergencv Car Show was a huge success and wanted to thank everybody for their support; it was wonderful to see the kids enjoying themselves so much. He also spoke on the Cruisn' Morro Bay Car Show thanking people for "doing what they do" and making visitor's feel so welcome. ® Father Ed urged that Council not support the adoption of an official policy on signs in Morro Bay. We need more signage in Morro Bay promoting events, businesses, religious services; etc... He said that during elections they are everywhere and there is no attempt to limit them. Visitors and residents need a greater awareness of the attractions in Morro Bay. Limiting signs is an unnecessary distraction from the more important work of promoting Morro Bay. Mandy Davis. as a representative of Coast Alliance, presented a short report on what's happening with the seismic testing. She/they have been going to meetings to make sure that those entities intervene with the California State Lands Commission and ensure the process for issuing permits for seismic testing are appropriate. Coast Alliance is drafting a Resolution to put before Morro Bay and she hopes we will be that proactive progressive City to lead the way with Marine Protection. She also applauded the efforts of the Harbor Department staff. Wally Auerbach requested Council pull Item A-7 from the Consent Calendar and take the procedural steps necessary to reconsider the item in hopes of providing the residents of the beach tract an opportunity to unify behind a single position on the project so that Council can approve the project with appropriate conditions. He is asking that we would postpone rehearing the matter for 2 weeks to give us enough time to unify behind a single position made clear in a document to the City and the State Parks. If after that there is a need to still hear an appeal, at least everyone will have been heard. MINUTES - MORRO BAY CITY COUNCIL — APRIL 23. 2013 ® Shaun Farmer spoke on behalf of the upcoming Morro Bay Kite Festival. He hopes that everyone will come out and join them in flying a kite this weekend. He thanked all those responsible for helping put this event on. Mayor Irons closed the public comment period. A. CONSENT AGENDA Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE CITY COUNCIL MEETING OF APRIL 9, 201 3; (ADMINISTRATION) RECOiV MENDATION: Approve as submitted. A-2 STATUS REPORT OF A MAJOR TvLAINTENANICE & REPAIR PLAN (MMRP) FOR THE EXISTING WASTEWATER TREATMENT PLAN; (PUBLIC SERVICES) RECOMMENDATION: Receive and file this report. A-3 REVISED RECOMMENDATION FROM THE CITIZENS OVERSIGHT COMMITTEE ON THE REALLOCATION OF STORM DRAIN CARRYOVER ® FUNDS N THE DISTRICT TRANSACTION TAX (MEASURE Q) FUND; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Staff recommends accepting the Citizens Oversight Committee's recommendation to reallocate the S471,000 Measure Q storm drain carryover, with $385,000 going to street maintenance, and S86,000 to update the 1987 Storm Drain Master Plan. A-4 QUARTERLY FINANCIAL STATUS REPORT FOR THE FISCAL YEAR ENDED MARCH 31, 2013; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Accept the reports as presented. A-5 REAFFIRM COUNCIL ACTION OF APRIL 9, 2013 PERTAINING TO THE SELECTION OF FIVE (5) CITIZEN MEMBERS TO PARTICIPATE ON THE 'SELECTION COMMITTEE FOR CONSULTATION SERVICES FOR THE WATER RECLAMATION FACILITY: (CITY ATTORNEY) RECOMINIENDATION: Reaffirm and approve its previous decision by selecting Don Boatman, Stephen Shively, Donald Smith, Paul Donnelly and Valerie Levulett to serve as Citizen Members to Participate on the Selection Committee for Consultation Services for the Water Reclamation Facility. 3 MINUTES - MORRO BAY CITY COUNCIL - APRIL 23. 2013 ® A-6 PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY DECLARING MAY 2013 AS BIKE MONTH: MAY 13 TO MAY 17. 20L3 AS BIKE TO WORK WEEK: AND MAY 8. 2013 AS BIKE TO SCHOOL DAY: (ADMINISTRATION) RECONLNNIENDATION: Adopt Proclamation. El A-7 RESOLUTION 25-13 ADOPTING FNDNGS TO UPHOLD THE APPEAL AND OVERTURN THE PLANNING COMMISSION'S APPROVAL OF COASTAL DEVELOPMENT PERMIT (#CP0-390), MORRO STRAND CAMPGROUND IMPROVEMENTS PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Approve Resolution No. 25-13 adopting findings to uphold the appeal and overturn the Planning Commission's approval of Coastal Development Permit (#CPO-390). Mayor Irons opened up the public comment period for items on the Consent Calendar. Betty Winholtz spoke on Item A-3 feeling all of this money should be put towards streets: on Item A-7 stating there is a need to have findings before anything can happen next so she is in favor of us eoine ahead with the findings this evenine: and Item A-5 statine that the issue isn't just a matter of whether or not expansion was aired but whether or not if people had known that more applicants would be chosen. would they have chosen to apply. Mavor Irons closed public comment for the Consent Calendar. Councilmember Smukler pulled Item A-5 and A-7; Councilmember Christine Johnson pulled Item A -I and recused herself from Item A-7; and Mayor Irons pulled Item A-6 so that a Proclamation can be read. MOTION: Councilmember Nancy Johnson moved the City Council approve Items A- 2. A-3, and A-4 of the Consent Calendar as presented. The motion was seconded by Councilmember Christine Johnson and carried unanimouslv 5-0. A-] APPROVAL OF CITY COUNCIL MINUTES FOR THE CITY COUNCIL MEETING OF APRIL 9, 2013; (ADMINISTRATION) Councilmember Christine Johnson pulled this item to read into the record the amended section of the minutes; she had previously spoken with the City Clerk and it was determined that the chanee was warranted. MOTION: Councilmember Christine Johnson moved the City Council approve Item A-1 as amended. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. 4 MINUTES - MORRO BAY CITY COUNCIL - APRIL 23. 2013 ® A-5 REAFFIRM COUNCIL ACTION OF APRIL 9. 2013 PERTAINING TO THE SELECTION OF FIVE (5) CITIZEN N[E VIBERS TO PARTICIPATE ON THE SELECTION COMMITTEE FOR CONSULTATION SERVICES FOR THE WATER RECLAMATION FACILITY: (CITY ATTORNEY) Councilmember Smukler pulled this item stating that there was public concern this process didn't follow the Brown Act. Citv Attornev Rob Schultz stated that when this was brought up by a citizen via an email complaint, it triggered a time period where the City can tell the person that they don't believe there was a Brown Act violation or we can bring it back to cure. Even if there is a difference in opinion as there is in this case, it is the Citv_ 's position is that we didn't violate the Brown Act, it's always best to brine the item back to cure and give the Council the opportunity reaffirm their original decision Councilmember Smukler went on to say that he has studied the issue the last couple of weeks and feels the committee members are committed and as such, he trusts that they will have Morro Bay's best interests in mind. Councilmember Nancy Johnson felt this was a good idea when it came up and still does: Council continually asks for more public input: she feels using 2 panels will be very valuable and would hate to start all over again. Councilmember Leage states that is important to start moving ahead. Councilmember Christine Johnson agrees with the sentiments that if we change direction now, it will delay the process which concerns her. While the process was unfortunate, she did speak to all the applicants and was incredibly impressed with their qualifications. Mavor Irons is in favor of proceeding with this and is very happy with the quality of applicants. MOTION: Councilmember Leage moved for City Council approval of Item A-5. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. A-6 PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY DECLARING MAY 2013 AS BIKE MONTH: MAY 13 TO MAY 17. 2011 AS BIKE TO WORK WEEK: AND MAY 8, 2013 AS BIKE TO SCHOOL DAY: (ADMINISTRATION) Mayor Irons read the Bike Month Proclamation MOTION: Councilmember Nancy Johnson moved for approval of the Bike Month Proclamation. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. A-7 RESOLUTION 25-13 ADOPTING FINDINGS TO UPHOLD THE APPEAL AND OVERTURN THE PLANNING COMMISSION`S APPROVAL OF COASTAL DEVELOPMENT PERMIT (-CP0-390). MORRO STRAND CAMPGROUND ® IMPROVEMENTS PROJECT: (PUBLIC SERVICES) 5 M11NUTES - MORRO BAY CITY COUNCIL - APRIL 23, 2013 ® Councilmember Christine Johnson had to recuse herself from this item due to a conflict of interest. Public Services Director Rob Livick presented the staff report. Mayor Irons spoke with State Parks Sector Chief. Nick Franco who expressed that they are going to the Coastal Commission as we speak and would not be in favor of extending this for 2 weeks. As such. this item is being heard to establish the findings which needed to be delineated as well as continue the City's support of the Morro Strand State Park. Councilmember Nancy Johnson feels we need to move forward with this and tell our citizens who are still concerned to meet with State Parks_. with Nick Franco of State Parks and with the Coastal Commission. Councilmember Smukler left the last meeting wishing we could have been able to work with State Parks to create a better plan. He didn't feel we went as far as we needed to in order to be clear about what we wanted to address about this project. He wants to address the possibility of not approving this tonight and bringing it back to a Public Hearing giving everybody_ more time to come up with an agreement that meets evervbodv's needs. He has concerns that State Parks, when meeting with the Coastal Commission, may be delayed even further without a better support of the City and neighborhood. ® Mayor Irons reminded Council that at the last meeting. the applicant didn't want us to approve this and in fact asked for a denial so they can move forward and take it directly to the Coastal Commission. They made no indications that thev want to come back in front of Council as it will be an appealed project anyway and they wanted to get to Coastal Commission as soon as possible. Councilmember Nancy Johnson stated that State Parks is a superior agency; they made their position very clear that they want it denied so that they can move forward. She feels we should move forward emphasizing our support for the Park and neighbors. Councilmember Smukler stated that we still have the responsibility to push this project to be the best it can be. At a minimum. we should strengthen the Resolution to recognize the concerns of both Council and the neighborhood and we follow through with having a Public Hearing that is timelv so we are clear about the issues that are important to the community. ivlavor Irons says we are in support of State Parks being successful as well as being in support of our community and the potential impacts of this project but we do want to move this forward. Councilmember Smukler is still interested in working with the neighborhood to come up with a Resolution or a clear message to Coastal Commission and State Parks as to what the issues are, making sure the neighborhood had a strong voice in the process. P MINUTES - MORRO BAY CITY COUNCIL - APRIL 23. 2013 ® Councilmember Nancv Johnson stated that the Resolution as written is a very strone statement: State Parks has made it very clear what thev want to do and thev need this information tonight so thev can move forward: and. we are still coming back with a hearing where we can take public input. Irs important that we move forward with this tonight. MOTION: Councilmember Nancy Johnson moved for approval of Resolution 25-13. The motion was seconded by Councilmember Leage and carried 3-1-1 with Councilmember Smukler voting no and Councilmember Christine Johnson having been recused from the item. B. PUBLIC HEARINGS B-1 RESOLUTION NO. 24-13 DECLARING THE INTENTION TO CONTINUE THE PROGRAM AND ASSESSMENTS FOR THE 2013/14 FISCAL YEAR FOR THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT (MBTBID) AND SCHEDULING A PUBLIC HEARING TO LEVY THE ASSESSMENTS_: (ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton presented the staff report. Mayor Irons opened the public comment period for Item B-1; seeing none, the public comment period was closed. ® MOTION: Councilmember Leage moved approval of Resolution 24-13. declaring the intention to continue the program and assessments for the 2013/14 fiscal year for the Morro Bay Tourism Business Improvement District and scheduling a public hearing to levy the assessments. The motion was seconded by Councilmember Nancy Johnson and carried unanimously 5-0. n�L B-2 APPROVAL OF CONSENT OF LANDOWNER FOR LEASE SITE 82-85/82W-85W (ROSE'S LANDNG) TO FILE AN APPLICATION FOR DOCK IMPROVEMENTS AND ALLOW STAFF TO ENTER INTO LEASE NEGOTIATIONS; (HARBOR) Councilmember Leage had to recuse himself from this item due to a conflict of interest. Harbor Director Eric Endersby presented the staff report. Mayor Irons opened the public comment period for Item B-2. Steve Paglessi, Project Architect, agrees with staff and would also opt for Alternative B. He reminded Councif that Mr. Redican is a significant stakeholder in Morro Bay and has already invested upwards of 2 million dollars in Roses Landing. In addition, this project with slips has been vetted with the City already. 7 MINUTES - MORRO BAY CITY COUNCIL - APRIL 23. 2013 ® Betty Winholtz hopes that Council will address 2 issues: one is the policy change which is significant: the other is the conditions under which you are granting him what he wants. At the Lease Holder Studv Session. one of the major concerns is that you are equitable to everybody. She feels this decision represents a larger decision for all the lease holders because Council hasn't made the definitive decision about what the policy is. She feels this decision is premature and she wonders if this is how you will handle the nest guy and the nest guy, and etc... She feels you need to postpone the decision. Mavor Irons closed the public comment period for Item B-2. Councilmember Christine Johnson finds it appealing to see this this kind of project at this stage because in 2018. there will a number of lease sites that will be expiring. Because of the policy, folks are coming forward to start to think about the future of those lease sites. It is in the best interest of the community for us to be able to participate in what the next 40-50 years will look like on the Embarcadero. She recognizes people are making incredible investments in Morro Bav so there needs to be a balance we will want to make. Councilmember Smukler agrees we wouldn't be tying ourselves into an agreement. He is willing to move forward as it gives us the opportunity to see how much staff time this may take and in fact wants staff to keep track of their time. He feels comfortable as Vlr. Redican has historically proven to be a good leaseholder. He does want to be cautious of the view shed and the navigable channel as slips may infringe in those areas. He also wants to include affordability and access of slips into the universal policy when we get to that point. ® Mavor Irons wanted to be assured that the current lease management policy is performing properly. He also wanted to be assured we aren't circumventing the concept approval process. He has concerns that slips 6 & 7 may need adjusting to allow proper access to the working dock next to it. Councilmember Nancy Johnson likes the new possible process: she recognizes that ivir. Redican has made extensive improvements over the years; and he is proposing 6 new slips which will hopefully help our Measure D situation. Councilmember Christine Johnson wondered if we should set a time line to revisit this new process and wondered if want to go deeper into any of the lease issues that were brought up at the study session. She suggested revisiting this after the summer. It was directed by Council consensus to have the Harbor Advisory Board review the Harbor Lease Site Policy before coming to Council. MOTION: Councilmember Christine Johnson moved to approve Item B-2. Alternative B as presented in the staff report. The motion was seconded by Councilmember Nancy Johnson and carried 4-0-1 with Councilmember Leage being recused from this item. ® C. UNFNISHED BUSNESS —NONE F:l MINUTES - MORRO BAY CITY COUNCIL - APRIL 23. 2013 ® D. NEW BUSINESS D-1 PRESENTATION BY ECONOMIC DEVELOPMENT PROGRAM Chamber of Commerce CEO_ Craig Schmidt made a presentation. This is the Chamber's first report to the Council regarding the formation and actions of the newly formed Economic Development Program. The goal of this partnership is to ensure that Morro Bay's local economy is vibrant. strone and sustainable over the long term by providing strategies, programs, and policies that will help improve the business climate in Morro Bay. This can be accomplished through Data Collection and Analvsis, Business Retention and Expansion (BRE), and Business Attraction. The Chamber is helping to grow new businesses in Morro Bay. As indicated by the high percentage of self-employed, the entrepreneurial spirit is alive and well in Morro Bay. The Chamber has developed and is operating the !Morro Bay Incubator in the hopes that these will mature to provide jobs and fill vacant commercial property. Economic Development Director John DiNunzio made a presentation on the current progress of the Economic Development Program. The presentation covered "What is the Economic Development Program", the roles and responsibilities of the ED Program Coordinator, Upcoming ED Program Initiatives. a run-down of businesses who have received direct assistance from the Chamber for business retention or expansion, contacts made to or were received from businesses. contacts made with prospective businesses in Morro Bay, jobs in Morro Bay, regional job trending, and growing and declining occupations and industries. ® D-2 REVIEW AND DISCUSSION OF CO-SPONSORSHIP OF SPECIAL EVENTS TO INCLUDE INITIAL REVIEW OF THE SPONSORSHIP POLICY: (RECREATION & PARKS) Recreation & Parks Director Joe Woods presented the staff report. Mayor Irons opened the public comment period for Item B-1; seeing none, the public comment period was closed. Councilmember Christine Johnson stated that the reason for additional City_ services tend to be as a result of increased traffic, alcohol and pyrotechnics. Councilmember Smukler is cautious due to potential financial impacts to the City. He is willing to explore the concept but wants to ensure we are covering ourselves and we have a strong program to not overextend ourselves. Before we talk about criteria. he feels we should wait and hear from the Recreation & 'Parks Commission and the participants from the event planning meeting with the Chamber that's coming up. If we sponsor, we need to hold the events to a high standard of reporting. He also recommends expanding and requiring a recycling component for these events to include a zero waste initiative. Mavor Irons shares the concerns of the Council and feels that the results from the events meeting ® will help in making this decision. 9 MINUTES - MORRO BAY CITY COUNCIL- APRIL 23, 2013 Councilmember Christine Johnson stated that the optimum solution is not to have to choose one organization over another. She remains cautious about funding. She recommended looking to discuss adding an alcohol free policy to co-sponsorship. The question of "who does events in Morro Bay' needs to be answered. Councilmember Leage doesn't feel that the S 18.000 in fees is that big of a hurdle for the Citv_ to find for the revenues that the events bring in. Councilmember Smolder hoped that with the events meeting coming up, it's more important to focus on a general direction, work the process more and then bring the item back to the Council. He agreed that an alcohol free component could be very effective. Councilmember Nancy Johnson agrees with much of what has been discussed and also agrees that we need more information. She felt it important to know how much the events bring to the Citv — what is the fmancial return? She would also like to see the following added to the co- sponsorship application: The cost of putting the event on; where the monev goes at the conclusion of the event; and then to have a requirement that the event organizer(s) bring back a balance sheet. It was the consensus of Council to bring this item back at a later date (July) following input from the events meeting_, look into alcohol free, analyze the financial return and know who is doing events. D-3 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS AND DISCUSSION; (ADMNISTRATION) City Manager Andrea Lueker presented the staff report. Mayor Irons opened up the public comment period for Item D-3: seeing none; the public comment period was closed. There was no Council discussion on this item. D-4 CONFIRMATION OF CITY GOALS AND GOAL OUTLINES FOR 2013: (ADMINISTRATION) City Manager Andrea Lueker presented the staff report. Mayor Irons opened up public comment for Item D-4: seeing none, the public comment period was closed. Councilmember Smukler spoke on Goal 43 hoping to add under Key Tasks an e. Update the Circulation Element to include Complete Streets Initiative: he also spoke on Goal 116 hoping to add under Kev Tasks a g. Update Way -Finding Signage within the City and on Highway 1: ® he also spoke on Goal 47 hoping to add under Key Tasks an i. Work with Non-profit Group to 10 MINUTES - MORRO BAY CITY COUNCIL- APRIL 23, 2013 ® move the Bike Park Project forward-. and he spoke on Goal #5 hoping to add under Key Tasks an e. Evaluate concept of Budget Sub -Committee. Councilmember Christine Johnson spoke on Goal #6 hoping to add under Key Tasks an a. ...fund Economic Dev. Program, Tourism Marketing and the Visitor's Center Mayor Irons spoke on Goal #3 hoping to add under Key Tasks an f. Develop work plan for the update of the General Plan and the Local Coastal Plan. MOTION: Councilmember Christine Johnson moved for approval of the City Goals as amended. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. D-5 SELECTION OF REAL ESTATE CONTRACT SERVICES AND AUTHORIZATION TO EXECUTE A RESIDENTIAL LISTING AGREEMENT FOR EXCLUSIVE AUTHORIZATION AND RIGHT TO SELL THE CITY -OWNED PROPERTY ON THE CORNER OF CORAL AVENUE AND SAN JACINTO STREET; (CITY ATTORNEY) Mayor Irons and Councilmember Nancy Johnson recused themselves as there was a potential for a conflict of interest. ® City Attorney Rob Schultz presented the staff report. E Vice-Mavor George Leage opened up public comment for Item D-5: seeing none, the public comment period was closed. Councilmember Smukler stated that after looking at all the proposals. Ciano Real Estate stood out, especially since they were willing to take a commission of 3.5% Councilmember Christine Johnson stated that all the agents would be able to sell this property. The monev for the sale of this property will go to the Fire Station debt service which then would free up some Measure Q monies. She liked Ciano Real Estate due to the fact they are familiar with the Cloisters as their consultant was very involved with the original sale of Cloisters lots. Vice Mayor Leage feels that we could be just as successful and make more money if we just tried to sell it ourselves. MOTION: Councilmember Smukler moved to accept the proposal from Ciano Real Estate to list City owned property on the comer of Coral Avenue and San Jacinto Street. The motion was seconded by Councilmember Christine Johnson and carried 3-0-2 with Mayor Irons and Councilmember Nancy Johnson having been recused from the item. MINUTES - MORRO BAY CITY COUNCIL - APRIL 23. 2013 0 E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS Councilmember Smukler requested a discussion and evaluation of updated Resolution and Communication to Coastal Commission regarding the Atascadero Beach Campground Appeal to clarify the Citv's and Neighborhood Concerns; all Councilmembers concurred. Mavor Irons requested developing a work plan for the General Plan and the Local Coastal Plan update; all Councilmembers concurred. Councilmember Leage requested a discussion of Measure D; Mayor Irons and Councilmember Christine Johnson concurred. Councilmember Smukler requested an update and review on the status of the Centennial Stairway Project; Mayor Irons and Councilmember Nancy Johnson concurred. ADJOURNMENT The meeting adjourned at 10:43pm. Recorded "by: � is Jame Boucher Citv Clerk l 12 MENUTES - MORRO BAY CITY COUNCIL - APRIL 23, 2013 ® 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. CITY COUNCIL/PLANNING COMMISSION JOINT MEETING TUESDAY, APRIL 23, 2013 VETERANS MEMORIAL HALL - 4:30 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE ® CLOSED SESSION REPORT MAYOR & COUNCILMEMBERS` REPORTS. ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS PUBLIC COMMENT - Members of the audience wishine to address the Council on Citv business matters not on the agenda may do so at this time. y To increase the effectiveness of the Public Comment Period_. the following rules shall be followed: y • When recognized by the Mavor, 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 cam 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. 1. JONT MEETING DISCUSSION ITEMS City Council Requested Discussion Items: • Discussion of Goal 93 - Update Plans for Current and Future Land Use Needs • Discussion of Projects Appealed to City Council • Discussion on the Interpretation of Measure D • Discussion of Creation of a Specific Plan Overlay District from No. Embarcadero to Cloisters. West of Hiuhway I IL ADJOURNMENT — This meeting will adjourn to the regularly scheduled City Council meeting. L] �J ® MINUTES - MORRO BAY CITY COUNCIL/PLANIN NG CONMSSION JONT MEETING — APRIL 23. 2013 VETERANS MEMORIAL HALL - 4:30 RM. Mayor Irons called the meeting to order at 4:30 p.m. AGENDA NO: A-1 SLEETING DATE: 5/14/2013 PRESENT: Jamie Irons Mavor George Leage Councilmember Christine Johnson Councilmember Nancy Johnson Councilmember Noah Smukler Councilmember Rick Grantham Chair John Solu Vice Chair John Fennacy Planning Commissioner Michael Lucas Planning Commissioner Robert Tefft Planning Commissioner STAFF: Andrea Lueker City Manager Robert Schultz Citv Attomev Rob Livick Public Services Director ® Kathleen Wold Cindy Jacinth Planning Manager Associate Planner Jamie Boucher Citv Clerk ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE CLOSED SESSION REPORT MAYOR & COUNCILMEMBERS' REPORTS. ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS PUBLIC COMMENT Rigmore purchased the Sun Bulletin building and she is hoping that the Los Osos ivlesican Market will get their business license soon. She thanked the two new Councilmembers for their service. She thanked the City for getting ready to put in new sidewalks in on Market. She also stated that she met with staff last week to talk about planting trees along Market Street. Bill Martoney spoke on Measure D stating that Joe Giannini was instrumental in putting Measure D in place for a specific purpose. He saw the future and saw how the Embarcadero was turning towards tourism: he wanted to preserve the northern section for fishermen and the fishing industry. He urged Council and the Commission to keep in mind what the original ® intent was as he feels the Measure D area has been crept into over the years. ® Sharon Moore of Virg's Sportftshing was here when Measure D was voted in; Virg and Joe Giannini wrote it to protect the industry. She stated that the Paddle Board business. in the winter time is fine but in the summer; her sportfishing business can't operate with them there as there isn't enough room in the parking lot. To protect the industry is to protect the creep. Mayor Irons closed Public Comment. I. JOINT MEETING DISCUSSION ITEMS A) Planning Commission bylaws, duties and expectations of City Council Councilmember Christine Johnson discussed the importance of the Bylaws stressing that they are fluid documents and can be adjusted; Councilmember Smukler stressed while its challenging. the General Plan and LCP are documents that should be guiding the Commission's decisions, and on some items he senses deviation from following those documents as guiding principles: and Ylayor Irons stressed that the Planning Commission's dutv was to advocate for the General Plan and to act in the best interests of the public. Commissioner Fennacy responded that he looks forward to opportunities like this to share ideas specific to planning and looks forward to working with the Council on the issues before us. Commissioner Solu appreciates the opportunity to serve and realizes that the Commissioners serve at Council's pleasure. He thought it would be a good idea to get ® specific examples of how Councilmember Smukler felt they deviated from the General Plan and didn't do as well. Commissioner Teffl also appreciates the opportunity to meet jointly and agrees with the several of the Councilmembers that the current General Plan is difficult to work with. Councilmember Lucas stated he is happy to serve and it's important to remember that the General Plan and LCP are living documents and it's equally important to be able to exchange dialogue as to where things are going and coming from: those currently serving represent different groundings and different aspects of being here. Chair Grantham is pleased to be here and feels it's an honor to serve: he hopes that everybody can work to be a part of the solution. Councilmember Nancy Johnson stated that one of the overriding things to remember is that anything that comes to the Planning Commission is very unusual — a variance or an exception — and these projects don't fit neatly into a box. B) Discussion of Goal 43 - Update Plans for Current and Future Land Use Needs Commissioner Fennacy stated that by definition. the General Plan is general and inconsistent. If a project is coming to the PC. it is because something is falling in the fringes of the General Plan or LCP, otherwise it would be dealt with at the administrative level. He favors constantly looking at it and being open minded, especially if there are problem areas that are tripping up staff. the Planning Commission or the public. ® Commissioner Tefft stated that the overriding aspect of the General Plan is that it's primarily a negative document: ie: you can't do this and you can't do that. A major ® improvement would be to make it a more positive document expressing the vision of each. area of town and gives people an overall community vision of those areas. Commissioner Lucas initially provided information to everybody prior to the meeting. Reading through the documents. a lot of the vision elements that are in there have been accomplished and a lot of them have been changed. When we don't have a black and white law in front of us. it would be a good idea to have the discernment of the vision of the City that would help us interpret these situations. Chair Grantham stated that when the document was completed it was a good document but now it needs revising. Unfortunately it will take a lot of time and monev which we don't have. He felt it necessary to establish reasonable goals and follow through on ones that we can and work on the ones we know we have to do. Commissioner Solu agrees 100% with Commissioner Tefft and hopes that when we look at the General Plan. it will be more positive. If we are going to be a friendly City to do business, it needs to be more positive. Public Services Director Rob Livick stated that the update has been something we've tried to do for manv vears. The Citv's current goal is to look for grant funding. If no grant monies are available, then possibly we would strategize to supplement current staffing on the lower end to give more experienced staff the ability to look at long range ® planning. Its also important to put together a work program for the LCP and GP. The Circulation Element will necessitate external help as well as it is too technical. Planning Manager Kathleen Wold agrees stating that she feels we will also need additional help with the environmental documentation. Councilmember Christine Johnson in encouraged to hear from staff that even if it's difficult. we are going to move forward. have a work plan, we're going to put together an outline and will have a scope. Councilmember Nancy Johnson is happy to see staff has a plan to work through this. She asked staff to consider using an intern who may have a fresh perspective on items. Councilmember Smukler is also glad to hear that work has already been done in preparation of this plan in the upcoming budget. He feels it's important to try to get a foundational plan together and then take some time to strategize and consider the different options particularly given the funding challenges. He would be willing. if necessary depending on the finances, to prioritize and be strategic about specific elements if we can't fund the whole chunk at once. C) Discussion of Projects Appealed to City Council Councilmember Smukler has seen a number of appeals come to the Council in the last couple of months: at times staffs presentation of information is lighter than in the past. - he'd like to see more robust staff reports/presentations. Also. the Planning Commission 3 ® has heard some "non-standard" projects and it would be his wish that if they felt that they've been presented an incomplete project that taking a little more time at the Planning Commission level could make for a stronger and more complete project. Continuing a project to make it stronger would be preferable to an approval. Councilmember Nancy Johnson disagrees as over the years she has seen several projects come to the Council and projects that come are unusual in the first place. Also; anytime we deal with a superior agency. things tend to get complicated and convoluted. She feels the Planning Commission is doing a good job: there will always be appeals because projects that come before Planning Commission are always unusual and different and there are people who disagree with things that are different and outside of the box. Councilmember Christine Johnson stated that where Council has been strongest is when we have continued an item and stepped back and learned. This gives Council time to think and allows staff to spend more time flushing out things for us. Mayor Irons echoes all these comments and.recognizes there a lot of challenging projects. He is in support of taking more time. having discussion and if needed, continuing an item could make for a better project. Chair Grantham stated that by the time Council gets the project on appeal. the Council can often get much more information than the Planning Commission ever had when ® making their initial determination. Commissioner Solu agrees: in fact he gets angry when something that is appealed is overturned as often times the PC doesn't have the information. The Planning Commission does its due diligence and will continue something if we don't feel good about it but that realistically if there is a 3-2 vote it will likely get appealed anyway, that's the reality of things. The Planning Commission will do its best to make sure their decisions are in the best interest of the City and in compliance with the General Plan. is Commissioner Fennacy wanted to reinforce the position that a factor out of the Planning Commissioners control is the appellants and the motivation for their appeal. It would be good to educate the general public as we move forward with the General Plan and LCP which he feels would diminish the "off the wall" and political appeals. Commissioner Lucas stated that in his experience, part of the issue is time versus information. He doesn't think that at times the information is satisfactory in order to make a proper decision or to understand what's being proposed. Commissioner Tefft feels that they are being asked to be deliberate and thorough. He is not offended if an appeal is overturned by the Council as it is a way that Council can send a message as to what their priorities are. He is okay with the appeals process and will try and do his job the way the Council would like him to. 4 ® Mayor Irons stated that as appeals come forward, he encourages the Commissioners to let their reasoning for their position be known to the Council. D) Discussion on the Interpretation of Measure D Councilmember Smukler stated that since he's been on Council. there has never been any action to chance Measure D and that any change would need to be made through the public process and initiative process. We are seeing a recovery in the fishing industry and as such; we need to hold Measure D strong unless it's changed through the public process. ktavor Irons stated that Measure D is vital to the area and strenethens our fishing community. Chair Grantham stated that Measure D protects the rights of our local commercial fishermen and definitely supports it, and supports the businesses that are in the area that support Measure D. He hopes we don't crowd it out so much that there won't be enough room for slips for the fishermen. Commissioner Solu met with those affected by Measure D and stated that there is a sense among the local fishermen that we may circumventing the system. and there is a question about whether we are changing language; their number one complaint ® is that they don't have slips and are worried that future slip fees will go up. The goal is to keep the fishermen whole and if language changes need to be made, that has to be kept at the forefront. Commissioner Fennacy is a proponent of Measure D and that strict adherence is in the best interest unless it goes to a vote of the people. He doesn't want the City to diminish the amount of slips; there are places along the Embarcadero to increase slips for non- commercial boats. Commissioner Lucas completely agrees; the fishing industry should be an asset we want to enhance as best we can. As we look forward, the question should be — how can we support this longer term as a healthy industry? It's amazing they have had such resiliency during such difficult times. Commissioner Tefft agrees with a strict interpretation of Measure D; without that, the influx of other commercial/recreational vessels for the slips and landside uses will push the fishing community out of the market on the Embarcadero. Measure D preserves the area for commercial fishing and maybe we need to look at actively providing some additional facilities or support. Councilmember Leage stated that Measure D is one of the most important things we have for our fishing community. There is a lot of concern about what is and what has been ® going on. He�suggested bringing this back as a stand-alone Council item to talk about it in more depth. 5 Councilmember Smukler agrees that bringing Measure D back as a stand-alone item is a good idea and in fact, believes it should start at the Planning Commission level first. Councilmember Nancy Johnson agrees and would like to see this as a Future Agenda Item at the Council level as we need to enforce Measure D. Councilmember Christine Johnson stated that what makes Morro Bay different than every other coastal communitv is Measure D. She would like to see the fishing community invited in on a discussion as we move forward. E) Discussion of Creation of a Specific Plan Overlay District from No. Embarcadero to Cloisters, West of Highway I There was not time for discussion on this item. II. ADJOURNMENT — 5:55 p.m. This meeting adjourned to the regularly scheduled City Council meeting. Recorded by: Jamie Boucher City Clerk 1 0 a City of Morro Bay MORRO BAY, CA 93442 (805)772-6205 NOTICE OF SPECIAL CLOSED SESSION MEETING CITY HALL CONFERENCE ROOM - 1:30 P.M. 595 HARBOR ST., MORRO BAY, CA Councilmember Noah Smukler will be communicating by teleconference from the following location: 72840 Arboleda Dr., Palm Desert, CA. 92260; (760) 340-0169 NOTICE IS HEREBY GIVEN that the Morro Bav City Council will be holding a Special Closed Session Meeting on Tuesday', April 16, 2013 at 1:30Pm and Wednesdav, April 17, 2013 at 1:30pm to be held in the City,Hall Conference Room located at 595 Harbor Street, Morro Bay, California. Below is an agenda of the meeting: • ESTABLISH QUORUM AND CALL TO ORDER • SUMMARY OF CLOSED SESSION ITEMS - The Mavor will read a summary of Closed Session items. • CLOSED SESSION PUBLIC COMMENTS - Members of the public may address the City Council on any matter that is listed on this Closed Session agenda. Unless additional time is authorized by the City Council_, remarks shall be limited to three minutes. • THE CITY COUNCIL WILL MOVE TO CLOSED SESSION CS-1 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES Discussions regarding Personnel Issues including one (1) public employee regarding evaluation; specifically the City Attorney. CS-2 GOVERNMENT CODE SECTION 54957.6; CONFERENCE R7TH LABOR NEGOTIATOR: Conference with City Council, the Citv's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the following unrepresented employee: City Attorney. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. DATED: April xl ® Jamieffioucher, City Clerk IN COMPLIANCE WITH THE AMERICANS WIT11 DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITI' MEETING, PLEASE CONTACT TIIE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEME:\"1'S CAN BE MADE TO PROVIDE ACCESS I B I LITI'TO THE MEETING. City of Morro Bay MORRO BAY, CA 93442 (805)772-6205 NOTICE OF SPECIAL CLOSED SESSION MEETING CITY HALL CONFERENCE ROOM - 4:00 P.M. 595 HARBOR ST., MORRO BAY, CA NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Closed Session Meeting on Tuesday, April 9, 2013 at 4:00pm to be held in the City Hall Conference Room located at 595 Harbor Street, Morro Bay, California. Below is an agenda of the meeting: ® • ESTABLISH QUORUM AND CALL TO ORDER • SUMIMARY OF CLOSED SESSION ITEMS - The Mayor will read a summary of Closed Session items. • CLOSED SESSION PUBLIC COMMENTS - Members of the public may address the City Council on any matter that is listed on this Closed Session agenda. Unless additional time is authorized by the City Council, remarks shall be limited to three minutes. • THE CITY COUNCIL WILL MOVE TO CLOSED SESSION 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: 307 and 315 Morro Bay Blvd Negotiating Parties: Meisterlin and City of Morro Bay Negotiations: Lease price and terms and/or voluntary Purchase and Sale CS-2 CONFERENCE WITH LEGAL COUNSEL REGARDING PENDING LITIGATION - GOVERNi1IENT CODE SECTION 54956.9(a): 0 • Parties: Meisterlin v. City of Morro Bay ® CS-3 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR: Conference with City Manager; the City's Designated Representative. for the purpose of reviewing the City's position regarding the terms and compensation paid to the following employee organizations and giving instructions to the Designated Representative: Firefighters Association (FFA), Police Officers Association (POA), and Service Employee's International Union. SEIU Local 620. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. DATED: April4.2013 awa��� Jami&,Boucher, City Clerk IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITI' CLERK'S ® OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITI' TO THE MEETING. ®F9 City of Morro Bay MORRO BAY, CA 93442 (805) 772-6205 NOTICE OF SPECIAL CLOSED SESSION MEETING CITY HALL CONFERENCE ROOM - 4:00 P.M. 595 HARBOR ST., MORRO BAY, CA NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Closed Session Meeting on Tuesday. April 9, 2013 at 4:00pm to be held in the City Hall Conference Room located at 595 Harbor Street, Morro Bay, California. Below is an agenda of the meeting: ® • ESTABLISH QUORUM AND CALL TO ORDER • SUMMARY OF CLOSED SESSION ITEMS - The Mayor will read a summary of Closed Session items. • CLOSED SESSION PUBLIC COMMENTS - Members of the public may address the City Council on any matter that is listed on this Closed Session agenda. Unless additional time is authorized by the City Council, remarks shall be limited to three minutes. • THE CITY COUNCIL WILL MOVE TO CLOSED SESSION 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: 307 and 315 &form Bay Blvd Negotiating Parties: Meisterlin and City of Morro Bay Negotiations: Lease price and terms and/or voluntary Purchase and Sale CS-2 CONFERENCE WITH LEGAL COUNSEL REGARDING PENDING LITIGATION - GOVERNMENT CODE SECTION 54956.9(a): 0 0 Parties: Meisterlin v. City of Morro Bay CS-3 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR: Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the following employee organizations and giving instructions to the Designated Representative: Firefighters Association (FFA), Police Officer's Association (POA), and Service Employee's International Union, SEW Local 620. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. DATED: April 4, 2013 Jamie Boucher, 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. l ® City of Morro Bay City Council Agenda Mission Statement The City• of Morro Bay is dedicated to the preservation and entrancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING TUESDAY, APRIL 9, 2013 PUBLIC SESSION VETERANS MEMORIAL HAIL - 6:00 P.M. 209 SURF ST., �IORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE ® CLOSED SESSION REPORT MAYOR & COUNCILMEMBERS' REPORTS_. ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS PUBLIC COMMENT - Members of the audience wishing to address the Council on City_ business matters not on the agenda 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 meetine. A. CONSENT AGENDA Unless an item is pulled for separate action by the City Council. the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE CITY COUNCIL MEETING OF MARCH 26, 2013: (ADMINISTRATION) RECOWNIENDATION: Approve as submitted. A-2 ANNUAL REPORTING ON THE NIORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT AND SCHEDULING OF A PUBLIC HEARING: (ADMINISTRATIVE SERVICES) RECOMMENDATION: Acknowledge receipt of the annual report and set the date for the public hearing to be held on April 23, 2013, in order to continue the MBTBID activities and assessments. ® A-3 PROPOSED AMENDMENTS TO THE LEAGUE OF CALIFORNIA CITIES BYLAWS; (.ADMINISTRATION) RECOMMENDATION: Staff recommends the City Council submit a "yes" vote adopting the two proposed amendments to the League of California Cities Bylaws. A-4 RESOLUTION NO. 21-13 AUTHORIZING EXECUTION OF A DEED OF TRUST FOR THE LEASE AGREEMENT ON LEASE SITE 78-81/78W-81W (VAN BEURDEN INVESTMENTS): (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution 21-13 authorizing the Mayor to execute a consent agreement regarding a deed of trust for Lease Sites 78-81/78W-81W with Rabobank, N.A., and Van Bearden Investments for refinancing of improvements at 701 and 715 Embarcadero. A-5 A PROCLAMATION OF THE CITY" COUNCIL OF THE CITY" OF MORRO BAY DECLARING THE MONTH OF APRIL `FAIR HOUSNG MONTH": (ADMINISTRATION) RECONMIENDATION: Approve Proclamation A-6 AUTHORIZATION TO FILE NOTICE OF COMPLETION FOR THE 2012 STREET ® REHABILITATION PROGRAM (MB-2012-S2): (PUBLIC SERVICES) ® RECOMMENDATION: Authorization for staff to File Notice of Completion for the 2012 Street Rehabilitation Program (MB-2012-52). B. PUBLIC HEARINGS B-1 APPEALS OF COASTAL DEVELOPMENT PERMIT (#CP0-390) TO ALLOW THE UPGRADE OF EXISTING CAMPSITES LOCATED AT MORRO STRAND STATE PARK CAMPGROUND; (PUBLIC SERVICES) RECOMMENDATION: Deny the appeals and uphold the Planning Commission's approval of Coastal Development Permit 9CPO-390 subject to the Findings included as Attachment "A" and the Conditions of Approval as included as Attachment "B." B-2 RESOLUTION NO. 22-13 INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPNG AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT: (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 22-13, ordering the preparation of an Engineer's Report detailing the expenses projected for Fiscal Year 2013-14 for the maintenance of the North Point Natural Area. B-3 RESOLUTION NO. 23-13 NITIATNG PROCEEDINGS TO LEVY THE ANNUAL ® ASSESSMENT FOR THE CLOISTERS PARK AND OPEN SPACE LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT: (RECREATION & PARKS) u RECOMMENDATION: Adopt Resolution No. 23-13 ordering the preparation of an Engineer's Report detailing the expenses projected for Fiscal Year 2013-14 for the maintenance of the Cloisters Park and Open Space. C. U-NFNISHED BUSINESS - None D. NEW BUSINESS D-1 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS UPDATE AND DISCUSSION: (CITY COUNCIL) RECOMMENDATION: Discuss in open session, the progress to date on the Water Reclamation Facility (WRF) and provide direction to staff as necessary. D-2 SELECTION OF TWO (2) CITIZEN MEMBERS TO PARTICIPATE ON THE SELECTION COMMITTEE FOR CONSULTATION SERVICES FOR THE WATER RECLAMATION FACILITY: (ADMINISTRATION) 3 ® RECOMMENDATION: Review the attached letters of interest and select two citizen members to serve on the selection committee for consultation services for the Water Reclamation Facility (WRF). D-3 CONSIDERATION TO CO-SPONSOR THE 2013 JULY 4TI SPECIAL EVENT WITH THE MORRO BAY 4T", INC.: (RECREATION & PARKS) RECOMMENDATION: Review and consider the proposed co-sponsorship application from the Morro Bay 4th; Inc., as well as the recommendation from the Recreation and Parks Commission; and provide staff with direction to complete the Public Area Use permitting process. D-4 DISCUSSION OF ITEMS TO PLACE ON THE JOINT CITY COUNCIL / PLANNING CONVAISSION MEETNG AND RESCHEDULNG OF THE JOINT MEETING TO TUESDAY. APRIL 23, 2013: (.ADMINISTRATION) RECOiNtMENDATION: Discuss and direct staff to agendize items for the Joint City Council / Planning Commission Meeting. Staff further recommends that this meeting be rescheduled to Tuesday, April 23, 2013 beginning at 4:30pm. E. COUNCIL 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 i i2-6205 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 LIDRARY 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 , I UTES — MORRO BAY CITY COUNCIL SPECIAL MEETING — APRIL 9. 2013 ® VETERAN'S MEMORIAL HALL — 5:00P1vI Mayor Irons called the meeting to order at 5:00pm. PRESENT: Jamie Irons Christine Johnson Nancv Johnson George Leage Noah Smukler STAFF: Andrea Lueker Robert Schultz Jamie Boucher Amy Christen Eric Endersbv Susan Slavton Joe Woods AGENDA NO: A-1 MEETLNG DATE: 4/23/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager Ciry Attorney City Clerk Police Chief Harbor Director Administrative Services Director Recreation & Parks Director Mayor Irons opened up the public comment period; seeing none, public comment was closed. ITEM: 2013 GOAL SETTING WORKSHOP MAJOR CITY GOAL RESULT OUTLINES ® GOAL #a -MAINTAIN CORE PUBLIC SAFETY SERVICES Discussion was held by Council: -under `Brief Discussion', add an f. Opportunities. GOAL 95 — ENSURE FINANCIAL SUSTAI\ABILITY Discussion was held by Council: -under 'Brief Discussion', add an f. Opportunities; under "Action Plan, Key Tasks" add to c....workshops to include more information and detail as well as a glossary (terms and definitions); change d. from C,,.�.f� review... to Quarterly review... GOAL 96 — SUPPORT ECONONHC DEVELOPivlENT Discussion was held by Council: -under "Action Plan, Key Tasks' add an f. Opportunities% GOAL #7 — IMPROVE CITY INFRASTRUCTURE Discussion was held by Council —under 'Brief Discussion' add an f. Opportunities: under "Action Plan; Key Tasks" add an f. Continue to work on boat haul -out and T-pier projects/improvements; g. Continue to refine the Let us Know module; h. Investigate/report on the development/status of a maintenance plan for City pathways and ® sidewalks - similar to the PMP. MINUTES - MORRO BAY CITY COUNCIL REGULAR iviEETING — APRIL 9. 20 ® VETERAN'S MEMORIAL HALL — 6:00P.110. PRESENT: Jamie Irons Christine Johnson Nancv Johnson George Leage Noah Smukler STAFF: Andrea Lueker Robert Schultz Jamie Boucher Amy Christey Eric Endersbv Susan Slayton Joe Woods Kathleen Wold Cindy Jacinth Mayor Irons called the meeting to order at 6:00 p.m. Mayor Councilmember Councilmember Councilmember Councilmember City Manager Ciry Attomev Citv Clerk Police Chief Harbor Director Administrative Services Director Recreation & Parks Director Planning Manager Associate Planner ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE ® PLEDGE OF ALLEGIANCE CLOSED SESSION REPORT — City Attorney Robert Shultz reported that City Council met in Closed Session on the following items: 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 307 and J 1 5 Morro Bay Blvd.. Meisterlin and Ciry of Morro Bay: Government Code Section 54956.9(a), Conference with Legal Counsel regarding pending litigation; Meisterlin and City of Morro Bay; and, Government Code Section 54957.6. Conference with City Manager. the City's Designated Representative; for the purpose of reviewing the City's position regarding the terms and compensation paid to the following employee organizations and giving instructions to the Designated Representative: Firefighters Association (FFA), Police Officer's Association (POA), and Service Employee's International Union_ SEIU Local 620. No reportable action under the Brown Act was taken. MAYOR AND COUNCILN[EMBERS' PRESENTATIONS PUBLIC PRESENTATIONS PUBLIC COMMENT REPORTS. ANIVOUNCEivIENTS & Robert Davis spoke on behalf of the Library inviting everybody to the Community Open House at the Library to kick off their remodel campaign. The event occurs on Sunday. April 14`s from ® 2-4pm and will feature raffles, tours and food. MINUTES - MORRO BAY CITY COUNCIL- APRIL 9, 2013 Brain Stacv feels he is being terrorized in his own neighborhood and would appreciate the City getting somebody on it to stop it. ® Matt Reid spoke on behalf of Mind Over Matter, a non-profit Post Traumatic Stress & Suicide Awareness Foundation whose aim is to empower Veteran's from all generations. They are hosting a free conference on Saturday, April 27 s at New Life Church in Pismo from 10am-noon where they will be discussing the stigmas surrounding PTS_. mental -health and suicide amongst our veterans. Gam Johnson spoke on Morro Bay's 50`h Anniversary Celebration. He. along with Bill and Tracy of Suite 1 Photography. have been asked to help gather historical photographs. He urged anybody with photos to contact Suite 1 or himself. John Solu spoke on behalf of the Morro Bay Harbor Festival which is being held on October 5`s & 6 ". He specifically spoke on Item D- ). Consideration to Co -Sponsor the 20li July 4 s Special Event with the Morro Bay 4c'. Inc. The Harbor Fest's $260,000 budget equates to approximately 1 million dollars in economic impact to Morro Bay. and is a child friendly, multi -day event. He asked that Council consider co -sponsoring the Harbor Festival as well as other events that have an economic impact on Morro Bay. Richard Sadowski spoke representing the Surfrider Foundation on the WRY issue. He has and continues to share his thoughts on the project with Council. In his opinion the capacity issues faced need to be addressed prior to designing a plant. He also feels there is a severe hydrogen sulfide gas issue in North Morro Bav which comes from the dedicated Cavucos line. Finallv. we ® need to start recharging our aquifers and need to have recycling Ken Vesterfelt promoted Morro Bay's Emergencv Vehicle Car Show being held on Saturday. April 20t° from 9-3pm. He also advertised Morro Bay's Cruisn' Car Show being held May 2°d - Mav 5 s. He stated that the Morro Bav Car Show brings in between S30-S35.000 in TOT and sales tax and hopes that City fees for non-profit groups can be seriously addressed Keith Tavlor solicited trophy sponsorship for the Morro Bav_ Cruisn' Car Show. People can sponsor a trophy for only $25.00. He thanked those who have already purchased trophies. Craig Schmidt stated that there has been a new electric vehicle charging station installed at the Chamber's parking lot at 695 Harbor. It has been open to the public since early March. He also advertised the fact that the Economic Vitality Corporation will be at the Chamber on Friday. April 19ei from 9am-5pm. Business owners can call to schedule an appointment with them. Lvnda Merrill stated that she is very impressed with the outcome of the Goal's Workshop and thanked evervbody for their hard work. She also spoke on Item D-2. Selection of 2 Citizen Members to Participate on the Selection Committee for Consultation Services for the WRF stating that she knows both Don Boatman and Barry Brannin and feels they have both followed the treatment plant issue from the start and recommends them both. George Daniels spoke on the Morro Strand State Park issue wondering who took care of the ® plants by the ocean as he feels "his ocean is disappearing". He wants to know why it has become so overgrown. 3 MINUTES - NIORRO BAY CITY COUNCIL - APRIL 9, 2013 Mayor Irons closed the public comment period. ® A. CONSENT AGENDA Unless an item is pulled for separate action by the City Council. the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE CITY COUNCIL MEETING OF MARCH 26, 2013; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 ANNUAL REPORTING ON THE IYIORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT AND SCHEDULING OF A PUBLIC HEARING: (ADMINISTRATIVE SERVICES) RECOMMENDATION: Acknowledge receipt of the annual report.and set the date for the public hearing to be held on April 23, 2013, in order to continue the MBTBID activities and assessments. A-3 PROPOSED AMENDMENTS TO THE LEAGUE OF CALIFOR\1A CITIES BYLAWS: (ADMINISTRATION) RECOMMENDATION: Staff recommends the Citv Council submit a "ves" vote ® adopting the two proposed amendments to the League of California Cities Bylaws. A-4 RESOLUTION NO. 21-13 AUTHORIZING EXECUTION OF A DEED OF TRUST FOR THE LEASE AGREEMENT ON LEASE SITE 78-81/78W-81W (VAN BEURDEN NVESTMENTS): (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution 21-13 authorizing the Mayor to execute a consent agreement regarding a deed of trust for Lease Sites 78-81/78W-81W with Rabobank, N.A., and Van Beurden Investments for refinancing of improvements at 701 and 715 Embarcadero. A-5 A PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY DECLARING THE MONTH OF APRIL FAIR HOUSING MONTH"; (ADMINISTRATION) RECOMMENDATION: Approve Proclamation A-6 AUTHORIZATION TO FILE NOTICE OF COMPLETION FOR THE 2012 STREET REHABILITATION PROGRAM (MB-2012-S2); (PUBLIC SERVICES) RECOMMENDATION: Authorization for staff to File Notice of Completion for the 2012 Street Rehabilitation Program (;\IB-2012-S2). vlay r Irons opened up the public comment period for items on the Consent Calendar. 4 MINUTES - MORRO BAY CITY COUNCIL - APRIL 9. 2013 Betty W inholtz spoke on Item A-4, Approval of a Budget Allocation for Gangway Repair at the South Launch Ramp Commercial Boat Slips cautioning Council about putting the lease up for ® collateral. While it has been done before, it was uneasy; she hopes this doesn't become a pattern. Mayor Irons closed public comment for the Consent Calendar. MOTION: Councilmember Nancv Johnson moved the City Council approve Items A- 1. A-2, A-3, A-4, A-5 and A-6 of the Consent Calendar as presented. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. B. PUBLIC HEARINGS B-1 APPEALS OF COASTAL DEVELOPMENT PERMIT (:UCP0-390) TO ALLOW THE UPGRADE OF EXISTING CAMPSITES LOCATED AT MORRO STRAND STATE PARK CAMPGROUND: (PUBLIC SERVICES) Councilmember Christine Johnson had to recuse herself from this item due to a conflict of interest. Associate Planner Cindy Jacinth presented the staff report which included materials presented by the appellants for denial of the project. She also read into. the record a portion of the LCP. 2. Policies by Planning Area, Area I — North Morro Bay, Policy 1.10 which after additional research into the Local Coastal Plan, is a policy that requires additional conditions of approval be added to development permits that are issued to Atascadero State Beach projects. Cathy Novak spoke on behalf of Harold Wiebenga, one of the two appellants. The questions raised are: is this a prudent use of tax paver money and is this proposed project consistent with the goals and objectives of State Parks and the City of Morro Bav? Of great concern to the neighbors is: noxious odors from campfires and diesel powered vehicles, hillside/bank slippage, restrooms should be brought up to ADA standards, need for additional parking, need for better community relations and interactions with surrounding residents. landscaping and ongoing maintenance that has not been addressed. providing showers for campers, removal of lower cost camp sites, and pedestrian access. Regarding the second question. the crux of the problem with the proposed project is: smaller camp sites will be replaced with larger and higher end RV camp sites, this is a small park within a residential neighborhood that should be left as is to be in keeping with the character of the area; there is no plan for additional landscaping of camp site areas, only enlargement of asphalt areas; there is no plan to address the renovation of the existing restroom and shower facilities: and, there are no measures to address the other concerns and impacts that have been previously identified. They don't want the park to lose the funding however thev believe that there needs to be more creativity with the proposed project that will accomplish the objective for additional revenues and at the same time protect and enhance the goals of the community and visitors in Morro Bay. There is a request to either continue the hearing to a future meeting or to deny the project without prejudice so as to work towards keeping the funding source alive for the necessary Park renovation work. Harold Wiebenga stated that he is tired of the air pollution that the park generates. He would ® like to have Council take a look at all the pollutants coming from the park. MINUTES - MORRO BAY CITY COUNCIL - APRIL 9. 2013 Wally Auerbach; as the second appellant, appealed the project for 3 reasons: first. the proposed project has come too far too fast for everybody to fully absorb it which has created a lack of ® trust; second. the discourse at the Planning Commission was short on facts and short on depth: and finally, in his opinion, the project is not consistent with the various General Plan and Local Coastal Plan and that should first be discussed and resolved before moving forward. He is hopeful that Council will deny the project without prejudice and send State Parks back to create a partnership with the community that works to address these problems. Brooke Gutierrez spoke on behalf of the applicant, Morro Strand State Park. This all started due to scheduled Statewide park closures; in order to keep Morro Strand open and keep it off the closure list, they needed to generate more monev. The money for this project was granted by the State in a competitive fashion. There is a 2 vear moratorium for park closures so this money is only available for a finite period of time. They are very open to suggestions and recommendations; however there is a tight window of opportunity to improve the park before the moratorium period ends. They also feel that the issues that they have been made aware of. while very valid, are outside the scope of the project as proposed. Mayor Irons opened up public comment for Item B-1. Keith Taylor lives on Beachcomber and what worries him is that this will take away from sites that low and moderate income people can stay. He is also bothered by the lack of park maintenance. there is no handicapped access, and there are no showers. Fred Wickman also lives on Beachcomber and it is his sincere hope that the Council table this ® item but if you choose to move forward, he hopes that you will provide 2 additional conditions of approval having to do with beach access and parking issues. Bill Martoney stated that sometimes bigger isn't better. He doesn't see the need to spend 5800.000 on 25 RV spaces and feels that money would be better spent on revitalizing the restrooms, putting in showers and providing a better park design. Bettv W inholtz stated that this plan doesn't meet the City's General Plan and Local Coastal Plan. nor does it meet the State Parks General Plan. Also, staff didn't present an informative staff report; it should have shown access, circulation and visual resources. none of which were talked about; you also need to talk about the municipal code as it relates to landscaping and lighting issues. There is also a need to explore what the addition of 25 RV's means to air pollution in the area. She hopes that this will be postponed or continued as it is not ready to be decided tonight. Barry, Brannin feels this is moving too quickly. He also feels it will get appealed to the Coastal Commission and doesn't want Morro Bav to go through another embarrassment with the CCC. He feels it should be studied further. Lvnda Merrill disagrees with the staff report that states that there is no evidence of air, noise or ground pollution exists. She wondered if State Parks could put in gas fire pits; she questioned additional noise pollution; she agrees with the need for new restrooms and feels that the landscaping should be extensive and beautiful. n. MINUTES- MORRO BAY CITY COUNCIL - APRIL 9, 2013 Steve Simas stated that the Park hasn't been updated in years. He also doesn't think that the occupancy rate will go up that much as the RV'ers he's talked to don't feel that Morro Stand will ® ever have the amenities that they look for in a park. George Daniels doesn't see a reason to close the park down. He also agrees that the Park hasn't been kept up in years. He suggested that there be a time limit for the use of the fire pits. He also feels there should be beach access at the south end. Mayor Irons closed the public comment period. Tom Kidder from State Parks stated that the restroom situation is being addressed pursuant to the 2005 court case Tucker vs. California State Parks, but is subject to funding availability and bathroom priority lists and will be 4-5 years before the State will be able to upgrade the bathrooms. Doug Barker from State Parks disputed comments that the project was inconsistent with the Cirv's LCP and the State Parks General Plan and summarized goals from the State Parks General Plan which demonstrate the project's consistency and stated that while many, they are working towards accomplishing their goals. Councilmember Smukler stated that the Park is an incredible asset to Morro Bay and he also recognizes the Park has been neglected and needs to be invested in. He feels we need a better plan for the park and doesn't see that the City has those assurances with this project. He feels we need stronger neighborhood buy -in as well as better day use provisions. He also feels that if the ® plan isn't refined that the Coastal Commission won't approve it. He feels the key areas that need attention are public access/day use from Beachcomber, parking including day use and overflow, view shed protections, landscaping, overall park amenities, and general impacts to both the neighborhood and the park experience. He would like to see this approached from a master planning perspective. Councilmember Nancy Johnson agrees with most of what Councilmember Smukler stated. She feels that it's important for State Parks to talk to neighbors in the area and that compromise on some of the items needs to take place. She feels it's important to move the bathroom up the list: she feels it's important to continue to have this park meet the needs of the many mid to lower income campers: maybe we can compromise in the number of RV spaces that are put in; and, possibly limit the time for evening camp fires. Councilmember Leage feels that the State Park has to consider the people living in the area and do the best they can to try to satisfy them. He agrees 100% with Councilmembers Nancv Johnson and Smukler's comments. Mayor Irons reviewed and reaffirmed the City's conditions of approval for the project. He also confirmed that access and parking were of great importance. He was concerned that there wasn't a height limitation on the landscaping and how it would protect the screening area. Councilmember Nancv Johnson doesn't feel that we should be the ones planning this. Instead it ® would be her choice to deny the project without prejudice and allow them to come back with a 7 MINUTES - MORRO BAY CITY COUNCIL- APRIL 9, 2013 new and better plan. She also wants to possibly limit the amount of RV spaces to ensure that the tent camping component remains. is Planning staff clarified for the record that tent campsites will not be displaced or removed. The project is proposed to be an upgrade of existing RV campsites to larger size RV campsites. Also, regarding air pollution. the County Air Pollution Control District (APCD) governs recreational buming which is allowed under Rule 50LC.Lf. Councilmember Smukler agrees with Councilmember Nancy Johnson, this needs more neighborhood outreach and also feels we should deny this without prejudice and focus in on how a master plan could be developed. He also wants to ensure we reach out to the Legislature in Sacramento so that thev/we are allowed as much time as necessary to do this right as well as have this project continue to receive the funds. Mayor Irons thinks it's important to receive as much public input so as to give the appellant as much information as possible. The ultimate goal.is to keep the park open. Brooke Gutierrez stated that Parks would be more than happy to convert a space or two into day use parking which would hopefully alleviate some of the parking issues on Beachcomber. She agreed the project seems rushed because it is rushed as they only have a 2 year -window before the State Park closure moratorium ends. She feels that if their project was denied that they would forgo coming back to Council and instead Qo straight to the Coastal Commission. MOTION: Councilmember Smukler moved to uphold the appeal and deny the project ® without prejudice and requests the applicant to work with the City to develop a phased proposal with performance standards. The motion was seconded by Mayor Irons and carved 4-0-1 with Councilmember Christine Johnson having been recused from the item. B-2 RESOLUTION NO. 22-13 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 presented the staff report. Mayor Irons opened the public comment period for Item B-2; seeing none, the public comment period was closed. MOTION: Councilmember Nancy Johnson moved for adoption of Resolution 22-13 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. B-3 RESOLUTION NO. 23-13 NITIATNG PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE CLOISTERS PARK AND OPEN SPACE LANDSCAPING AND LIGHTNG MAINTENANCE ASSESSMENT DISTRICT: (RECREATION & PARKS) ® Recreation & Parks Director Joe Woods presented the staff report. II MINUTES - MORRO BAY CITY COUNCIL - APRIL 9, 2013 Mayor Irons opened the public comment period for Item 13-3; seeing none. the public comment - — period was closed. MOTION: Councilmember Christine Johnson moved approval of Resolution 23-13 initiating 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 Lease and carried unanimously 5-0. C. UN FNISHED BUSINESS — NONE D. NEW BUSINESS D-1 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS UPDATE AND DISCUSSION: (CITY COUNCIL) City Manager Andrea Lueker presented the update: to date the City has received 1 WRF RFP back: there has alreadv been conversation about the selection committee held at this meeting: the appraisal is currently underwav for the Righetti property and is expected back by the end of April; JPA will be meeting on Thursday. April 11. 2013 in Cayucos; staff is working with Council to find a date for the WRF Study Session and hopes that one can be selected tonight. there is a decision to be made as to whether or not the study session should be taped. Mayor Irons opened up the public comment period for Item D-1; seeing none, the public comment period was closed. ® Discussion was held on a date for the studv session and Monday, April 29, 2013 was selected. There was Council consensus to have the Study Session taped by AGP. There was also a request to issue an addendum to the original WRF RFP to include the fact that the selection committee will include 5 citizen participants. D-2 SELECTION OF TWO (2) CITIZEN MEMBERS TO PARTICIPATE ON THE SELECTION COMMITTEE FOR CONSULTATION SERVICES FOR THE WATER RECLA1vfATION FACILITY: (ADMINISTRATION) City Manager Andrea Lueker presented the staff report. Councilmember Nancy Johnson requested that more than 2 citizens be appointed to the selection committee. Councilmember Lease suggested that each Councilmember appoint one member each. Mayor Irons would be in support of increasing the numbers. Councilmember Nancy Johnson suggested having 2 panels doing the interviews and meeting together at the end to make the selection — similar to how hiring selections are often made. Mayor Irons opened the public comment period for Item D-2. Don Boatman spoke stating that it was a good idea to have citizen participation on this selection committee. He did feel that it could be overwhelming if there was too much citizen ® participation. E MINUTES - MORRO BAY CITY COUNCIL - APRIL 9, 2013 Barry Brannin stated the size could be overwhelming and that 3 would be a good number. He felt that "if there were too manv voices, you won't be able to hear the music" Ken Vesterfelt felt that the WRF is of great concern to all the citizens of Morro Bay. In fact he doesn't feel that even 10 citizens in a town of 10,000 would be too many. Lvnda Merrill believes this whole process has been going smoothly. She feels that the sticking with the original plan of 2 citizens would work best. ivlayor Irons closed the public comment period. Councilmember Leage hoped that by having 5 citizen members, with each Councilmember appointing one member each would provide for a more balanced committee. Councilmember Christine Johnson is willing to expand but wants to be able to vote on each. not make an appointment per Councilmember. She also wanted to ensure everybody was cognizant of the calendar as scheduling this many people could prove difficult. Councilmember Smukler personally reached out to the applicants to hear from them regarding their qualifications and was very impressed which draws him towards expanding: even given that, he is still very cautious about expanding as it could "muddy the waters". Mayor Irons is willing to add 2 more and also feels there needs to be ground rules for the selection process so it continues to move forward and isn't stalled due to scheduling issues. It was determined that the sub -committee will determine how the panels and interviews will take place. It was also unanimously decided that 5 citizens would be selected to serve on the ® committee but that they would be voted on. A written vote was then taken by each Councilmember with the following results: Stephen Shively — 4 votes: Linda Stedje — 0 votes: Barry Brannin — 2 votes: Rick Grantham - 2 votes: Don Boatman - 4 votes_: Donald Smith - 3 votes: Paul Donnelly — 5 votes: Valerie Levulett — 5 votes. The Councilmembers voted as such: Smukler. Stephen Shively_ . Don Boatman. Donald Smith, Paul Donnelly, Valerie Levulett C. Johnson: Stephen Shively, Barry Brannin, Don Boatman. Paul Donnelly, Valerie Levulett N. Johnson: Stephen Shively. Rick Grantham, Donald Smith. Paul Donnelly, Valerie Levulett Leage: Rick Grantham, Don Boatman. Donald Smith, Paul Donnelly. Valerie Levulett Irons: Stephen Shively, Barry Brannin. Don Boatman, Paul Donnelly_ Valerie Levulett The following citizens were appointed to the Selection Committee: Stephen Shively. Don Boatman. Donald Smith, Paul Donnelly and Valerie Levulett. D-3 CONSIDERATION TO CO-SPONSOR THE 2013 JULY 4TH SPECIAL EVENT WITH THE YIORRO BAY" 4TH. INC.; (RECREATION & PARKS) 0 Recreation & Parks Director Joe Woods presented the staff report. 10 MINUTES - MORRO BAY CITY COUNCIL - APRIL 9, 2013 Mayor Irons opened up the public comment period for Item D-3; seeing none; the public - comment period was closed. Councilmember Christine Johnson felt that this is the time to take a big picture look at our events as this is the 2nd event that has come before this Council requesting co-sponsorship just this year, this could include discussions about the impacts of events as well as events in general. She was also very appreciative to the Chamber and other groups for creating a Morro Bay events overview table as it gives us a good start at who's doing what as well as how many people are attending, it is her hope that we can add a column for financial impact. Councilmember Leage stated that staff charges for special events can be overkill. Councilmember Nancy Johnson was concerned that this could open up pandora's box as there are so many special events sponsored by non-profit organizations. Ws also difficult to determine the City fiscal impact of each as each event is so very different. Citv Manager Andrea Lueker stated that staff thinks we could bring back a more global staff report that would deal with most/all of the non-profit events to the second meeting in April or first meeting in May. Councilmember Smukler agrees that we need to look at this more globally. At the same time. he feels that there is something special about the Morro Bay 4`" of July event as it is a 100% volunteer based, no charge to participate, family friendly event. ® Mayor Irons discussed the possibility of creating a budget item specifically for this and having non-profit groups apply for the funds. El There was no motion made or action taken_; this item will be brought back to the next meeting with a more global emphasis. D-4 DISCUSSION OF ITEMS TO PLACE ON THE JOINT CITY COUNCIL / PLANNING COMMISSION MEETING AND RESCHEDULING OF THE JOINT MEETNG TO TUESDAY. APRIL 23, 2013; (ADIViINISTRATION) City Manager Andrea Lueker requested Council bring forth items to be discussed at the April 23, 2013 Joint City Council / Planning Commission meeting. Mayor Irons opened up public comment for Item D-4; seeing none, the public comment period was closed. Discussion was held by Council. the following topics were brought up as possible topics: Measure D. Specific Plan Overlay. Council's expectation levels of more public dialogue at the Planning Commission level-, and, the possibility of a grant for compact infill. It was decided to agendize 1) Measure D; 2) Specific Plan Overlay; 3) Discussion of Appeals; and. 4) Discussion of Goal 43 - Update Plans for Current and Future Land Use Needs. MINUTES - MORRO BAY CITY COUNCIL - APRIL 9, 2013 MOTION: Mayor Irons moved to reschedule the Joint City Council / Planning Commission meeting to Apiil 23. 2011. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS Councilmember Nancy Johnson requested a discussion on ways to help State Parks get their project done and keep their funding: Councilmember Leage and Smukler concurred. Mayor Irons requested an update identifying the City's Signage Inventory and coordinate the status of ongoing Signage Improvement Efforts: there was Council consensus for this item. Mayor Irons requested discussion on opening the restroom at the lift station building during the summer months on the Embarcadero: there was Council consensus for this item. ADJOURNMENT The meeting adjourned at 10:47pm. Recorded by: &teBoucher ® City Clerk LI 12 MINUTES - ,MORRO BAY CITY COUNCIL - APRIL 9, 2013 F� City of Morro Bay MoRRo BAY, CA 93442 ® mop" (805) 772-6205 NOTICE OF SPECIAL CLOSED SESSION MEETING CITY HALL CONFERENCE ROOM - 3:30 P.M. 595 HARBOR ST., MORRO BAY, CA NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Closed Session Meeting on Monday, April 8, 2013 at 3:30pm to be held in the City Hall Conference Room located at 595 Harbor Street, Morro Bay, California. Below is an agenda of the meeting: • ESTABLISH QUORUM AND CALL TO ORDER • SUMMARY OF CLOSED SESSION ITEMS - The Mayor will read a summary of Closed Session items. ® • CLOSED SESSION PUBLIC COMMENTS - Members of the public may address the City Council on any matter that is listed on this Closed Session agenda. Unless additional time is authorized by the City Council, remarks shall be limited to three minutes. • THE CITY COUNCIL WILL MOVE TO CLOSED SESSION CS-1 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES Discussions regarding Personnel Issues including one (1) public employee regarding evaluation, specifically the City Manager. CS-2 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR: Conference with City Council; the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the following unrepresented employee: City Manager. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. DATED: April 5, 20 � ® Jami - oucher. City Clerk IN COMPLIANCE WITH THE AMERICANS \VITH 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. FCity of Morro Bay MORRO BAY, CA 93442 ® lopp" (805)772-6205 NOTICE OF SPECIAL CLOSED SESSION MEETING CITY HALL CONFERENCE ROOM - 4:00 P.M. 595 HARBOR ST., MORRO BAY, CA NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Closed Session Meeting on Tuesday, April 2, 2013 at 4:00pm to be held in the City Hall Conference Room located at 595 Harbor Street; Morro Bay, California. Below is an agenda of the meeting: • ESTABLISH QUORUM AND CALL TO ORDER • SUMMARY OF CLOSED SESSION ITEMS - The Ma_vor will read a summary of Closed Session items. • CLOSED SESSION PUBLIC COMMENTS - Members of the public may address ® the City Council on an), matter that is listed on this Closed Session agenda. Unless additional time is authorized by the City Council._ remarks shall be limited to three minutes. • THE CITY COUNCIL WILL MOVE TO CLOSED SESSION CS-1 GOVERNMENT CODE SECTION 54957. PERSONNEL ISSUES Discussions regarding Personnel Issues including two (2) public employees regarding evaluation, specifically the City Manager and the City Attorney. CS-2 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR: Conference with Citv Council. the Citv's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the following unrepresented employees: City Manager and City Attorney. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. DATED: March 26, 2013 ® Jami 0 oucher, City Clerk IN COMPLIANCE WITH THE AMERICANS wrru DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A Crr\' MEETING, PLEASE CONTACT THE CFrICLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE NIADE TO PROVIDE ACCESSIBILITY TO TIIE MEETING. ®Fq City of Morro Bay MORRO BAY, CA 93442 (805) 772-6205 a NOTICE OF SPECIAL CLOSED SESSION MEETING CITY HALL CONFERENCE ROOM - 4:00 P.M. 595 HARBOR ST., MORRO BAY, CA NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Closed Session Meeting on Tuesday, March 26, 2013 at 4:00pm to be held in the City Hall Conference Room located at 595 Harbor Street, Morro Bay. California. Below is an agenda of the meeting: • ESTABLISH QUORUM AND CALL TO ORDER • SUMDIARY OF CLOSED SESSION ITEMS - The Mayor will read a summary of Closed Session items. • CLOSED SESSION PUBLIC CONINIENTS _ Members of the public may address the City Council on any matter that is listed on this Closed Session agenda. Unless additional time is authorized by the City Council, remarks shall be limited to three minutes. • THE CITY COUNCIL WILL MOVE TO CLOSED SESSION CS-1 GO«RNMENT 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: 315 Main Street Negotiating Parties: Meisterlin and City of Morro Bay Negotiations: Lease price and terms and/or voluntary Purchase and Sale CS-2 CONFERENCE Q17TH LEGAL COUNSEL REGARDING PENDING LITIGATION - GOVERNMENT CODE SECTION 54956.9(a): 0 • Parties: Meisterlin v. City of Morro Bay ® IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEI\1PT FROM DISCLOSURE. DATED: March 20, 2013 JaW Boucher; City Clerk IN COMPLIANCE WITH THE. ANIERICANS 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 AIADE TO PROVIDE ACCESSIBILITY TO THE AIEETING. n F� City of Morro Bay Morro Bay, CA 93442 (805) 772-6205 NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Tuesday, March 26, 2013 at 5:00 p.m. to be held at the Veterans' Memorial Building, 209 Surf Street, Morro Bay, California. The City Council will be discussing the 2013 Goal Setting Workshop Major City Goal Result Outlines. The City Council will adjourn to its regular City Council meeting at 6:00 p.m. IN COMPLIANCE WITH THE AMERICANS NVITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. DATED: March 20, 2013 Ja'�u is Boucher. City Clerk ® FINANCE ADMINISTRATION 595 Harbor Street 595 Harbor Street HARBOR DEPT. 1275 Embareadero Road CITY ATTORNEY 595 Harbor Street FIRE DEPT. 715 Harbor Street POLICE DEPT. 850 Morro Bay Boulevard PUBLIC SERVICES 955 Shasta Avenue RECREATION @ PARKS 1001 Kennedy Way City of Morro Bay ® 1 City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quali4! of life. The City shall be committed to this purpose and )vill provide a level of municipal service and safet}° consistent ivith and responsive to the needs of the public. REGULAR MEETING TUESDAY, MARCH 26, 2013 PUBLIC SESSION 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 CLOSED SESSION REPORT MAYOR & COUNCILMEMBERS - REPORTS. ANNOUNCEMENTS & PRESENTATIONS PUBLIC PRESENTATIONS ® PUBLIC COMMENT - 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 AGENDA Unless an item is pulled for separate action by the Cite Council, the following actions are ® approved without discussion. A-] APPROVAL OF CITY COUNCIL MINUTES FOR THE CITY COUNCIL MEETING OF MARCH 12, 201 3; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 QUARTERLY PROJECT STATUS REPORT; (ADMINISTRATION) RECOMMENDATION: Informational item only. A-3 STATUS REPORT OF A MAJOR MAINTENANCE &: REPAIR PLAN (MMRP) FOR THE EXISTING WASTEWATER TREATMENT PLANT (PUBLIC SERVICES) RECOMMENDATION: Staff recommends that this report be received and filed A-4 APPROVAL OF A BUDGET ALLOCATION FOR GANGWAY REPAIR AT THE SOUTH LAUNCH RAMP (TIDELANDS PARK) COMMERCIAL BOAT SLIPS: (HARBOR) RECOMMENDATION: Approve a Harbor Department budget amendment to allow repairs to the slip gangway approach walkway to the City slips on the south side of the public launch ramp at Tidelands Park. A-5 A PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY DECLARING MARCH 31 — APRIL 6. 2013 AS "CHILDHOOD CANCER AWARENESS WEEK"; (ADMINISTRATION) RECOMMENDATION: Approve Proclamation B. PUBLIC HEARINGS - None C. UNFINISHED BUSINESS - None D. NEW BUSINESS D-I REQUEST FOR A FEE WAIVER FOR BOAT SLIP FEES — BRIAN STACY: (HARBOR) RECOMMENDATION: Deny waiving past -due slip fees for City slip holder Brian Stacy. D-2 DISCUSSION ON THE STATUS OF THE PLANNING COMMITTEE'S PROGRESS FOR THE CITY'S 50TH ANNIVERSARY: (ADMINISTRATION) ® RECOMMENDATION: Provide direction to Committee. D-3 APPROVAL OF THE SERVICE RETIREMENT INCENTIVE (SRI) PROGRAM; (ADMINISTRATIVE SERVICES) ® RECOMMENDATION: Approve the Service Retirement Incentive Program in perpetuity with an annual reporting requirement every July, presented as a Council consent item. D-4 CONSIDERATION OF THE ADDITION OF TWO MEMBERS FROM THE GENERAL PUBLIC FOR THE SELECTION OF A CONSULTANT FOR THE DEVELOPMENT OF A NEW WATER RECLAMATION FACILITY (WRF); (PUBLIC SERVICES) RECOMMENDATION: Approve the addition of two citizen representatives for the Consultant Services Selection Committee, open nominations and set the date for appointment for said representatives, for the development of the new Water Reclamation Facility. D-5 DISCUSSION OF THE PUBLIC WORKS ADVISORY BOARD'S (PWAB) MEMO FROM THE STREETS SUMMIT MEETING; (PUBLIC SERVICES) RECOMMENDATION: Review and provide direction to staff. D-6 DISCUSSION OF POTENTIAL WATER AND SEWER RATE INCREASE: (PUBLIC SERVICES) RECOMMENDATION: Provide direction to staff to commence the analysis of Water ® and Sewer rates for potential increases and prepare a schedule for the requisite Proposition 218 protest vote. D-7 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS UPDATE AND DISCUSSION; (CITY COUNCIL) RECOMMENDATION: Discuss and provide direction to staff. E. COUNCIL 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 772-6205 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 BAN' LIBRARY LOCATED AT 625 HARBOR STREET: AND NIILL'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. 3 MINUTES — MORRO BAY CITY COUNCIL SPECIAL MEETING — MARCH 26, 2013 VETERAN`S MEMORIAL HALL — 5:00PM Mayor Irons called the meeting to order at 5:00pm. PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Leage Noah Smukler STAFF: Andrea Lueker Robert Schultz Jamie Boucher Rob Livick Amy Christey Steve Knuckles Eric Endersby Susan Slayton Joe Woods AGENDA NO: A-1 MEETING DATE: 4/9/2013 Mavor Councilmember Councilmember Councilmember Councilmember City Manager Citv Attomev Citv Clerk Public Services Director Police Chief Fire Chief Harbor Director Administrative Services Director Recreation & Parks Director Mayor Irons opened up the public comment period; seeing none; public comment was closed. ® ITEM: 2013 GOAL SETTING WORKSHOP MAJOR CITY GOAL RESULT OUTLINES GOAL 91 - DEVELOP A NEW WATER RECLAMATION FACILITY (WRF) Discussion was held by Council: -under `Brief Discussion'. add to c. ...timeline. community support/buy-in; add L Opportunities: Community support and communication, diversify the City's water supply; under "Key Tasks' add a g. Engage public in all possible phases: add an h. Provide quarterly status report. GOAL #2 - IMPROVE STREETS Discussion was held by Council: -under "Action Plan_. Key Tasks' add to a. ...and revise to include day to day maintenance activities; add a d. Continue to maintain and improve streets — thru 2014; add an e. Complete a Street Summit Repo rt/Nleetin g Annually (Jan) GOAL #3 - UPDATE PLANS FOR CURRENT AND FUTURE LAND USE NEEDS Discussion was held by Council: -under "Action Plan. Key Tasks' b. add to the end ... planning) or contract for project, d. add to the end ...update, strategies and review options. ® MOTION: Councilmember Nancv Johnson moved to continue this meeting to after the conclusion of the regular meeting. The motion was seconded by Councilmember Smukler and carried unanimously 5-0 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MARCH 26. 2011 VETER --N'S MEMORIAL 14ALL — 6:00P.M. Mayor Irons called the meeting to order at 6:00 p.m. ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE CLOSED SESSION REPORT — City Attornev Robert Shultz reported that City Council met in Closed Session on the following items: 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 31 5 Main Street Meisterlin and Citv of Morro Bav; and. Conference with Legal Counsel regarding pending litigations. Government Code Section 54956.9(a). Nleisterlin v City of Morro Bay. No reportable action under the Brown Act was taken. MAYOR AND COUNCILMEMBERS PRESENTATIONS PUBLIC PRESENTATIONS PUBLIC COMMENT REPORTS. ANNOUNCEMENTS & ® Elena Ramos presented the Morro Bay business report. The John Ramos Gallen, has opened up at 407 Morro Bay Blvd. Thev are open Tuesdays — Sundays from 11-5pm. They wanted to thank everybody for the warm welcome they have received since their opening. She also announced that on April 18d' they will be holding the Del Mar PTA Chamber Mixer from 530- 730pm. 11 Brian Stacy stated that there continues to be no public outreach from the Nature Conservancy and the Fishing Community Quota to make sure everybody is notified of events. This speaks to public corruption and the need to self -police ourselves to ensure there is opportunity for all. Ken Vesterfelt announced the 3rd Annual Emergency Vehicle Car Show being held on Saturday. April 20Lh. as well as the Morro Bay Car Show beine held on Mav 3`d, 4d" and 3h. Dennis Gage. the host of "Mv Classic Car with Dennis Gaee" will be in Morro Bay the weekend of the car show which is a bie boom for the event and the City. He also urged those attending the Annual Yard Sale to drive safely. Hank Roth spoke advertising the Annual Yard Sale being held April 6 h and 7 h. The last day to sign up in order to be placed on the map is March 27d' You can contact the Chamber at 772- 4467 with any questions. Nlorro Bay Beautiful will be hosting their own yard sale fundraiser at 2360 Main Street. He cautioned drivers and yard sellers to be extra cautious as there will be lots of people in town over the weekend. MINUTES - MORRO BAY CITY COUNCIL - MARCH 26.2013 Sy Tenenberg thanked Morro Bay businesses and residents who have helped him in his efforts to ® get care packages to the troops overseas. Morro Bay has been a part of sending over 300 boxes to the troops and he himself has been responsible for sending over 9500 boxes overseas. He especially thanks the Dollar Store for their efforts. Wanda Durri&announced the Annual Yard Sale stating that the deadline to register is March 27, 2013. The cost to register is $10 and by doing so, your sale will be placed on the map with your address clearly marked, you will also receive an official sign. Garry Johnson attended the Harbor Lease Site Studv Session. He was dismayed when the topic of the aquarium came up, he feels that the Tvlers have liven so much to this community: thev should be allowed to stay. Haley Revlee and Mava Burton, student representatives from Del Mar Elementary School. thanked the many businesses for so generously helping and sponsoring their 2013 Jog-a-thon. Sandy Tannler spoke on the lack of signage for the new Visitor's Center. She asked when it would be coming and when it would be put up. Keith Taylor spoke on the upcoming Morro•Bav Car Show. This year you can purchase/sponsor a trophy for the show's entrants for a very nominal fee. The money raised goes to the Morro Bay Police Explorers Post 943). Sid Symington, the new Rector of St. Peters Episcopal Church introduced himself. He is glad to be here. He holds services on Sundays at 8am and 1030am. Betry Winholtz announced that the Methodist Church will be holding a mini car show on Saturday; April 13a'. Thev will be serving homemade soups and sandwiches. Their address is 3000 Hemlock and the event will take place in the morning. Joan Solu thanked all those who attended the Dixon's Spaghetti Feed. She also thanked Joe Woods and his staff for all their hard work. They presented a special award to Marlene Peters who has been involved with the Community Foundation for many, many years. Brad Snook of the local Surfrider Foundation announced a benefit concert being held on April 13thin Shell Beach. They will be showing 5 films. there will be a raffle, live music, food and drink. Admission is S15 at the door: the event goes from 6-9pm. Bill Martoney thanked Council and staff for holding the Harbor Lease Site workshop. It was extremely well attended. the discussion was great and staff made a good presentation. He was disappointed that AGP didn't film it. He also questioned the closed session item regarding activities going on at 31 5 Main Street. Mavor Irons closed the public comment period. A. CONSENT AGENDA n U 3 b1INUTES - MORRO BAY CITY COUNCIL - MARCH 26, 2013 Unless an item is pulled for separate action by the City Council. the following actions are ® approved without discussion. A-1 APPROVAL OF CITY COUNCIL viNUTES FOR THE CITY COUNCIL NIIEETNG OF MARCH 12. 2013: (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 QUARTERLY PROJECT STATUS REPORT: (ADMINISTRATION) RECOMMENDATION: Informational item only. A-3 STATUS REPORT OF A MAJOR MAINTENANCE & REPAIR PLAN (MVIRP) FOR THE EXISTING WASTEWATER TREATMENT PLANT (PUBLIC SERVICES) RECOMMENDATION: Staff recommends that this report be received and riled. A-4 APPROVAL OF A BUDGET ALLOCATION FOR GANGWAY REPAIR AT THE SOUTH LAUNCH RAMP (TIDELANDS PARK) COMMERCIAL BOAT SLIPS: (HARBOR) RECOMMMENDATION: Approve a Harbor Department budget amendment to allow repairs to the slip gang vay approach walkway to the City slips on the south side of the public launch ramp at Tidelands Park. is A-5 A PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY DECLARING MARCH 31 — APRIL 6. 2013 AS "CHILDHOOD CANCER AWARENESS WEEK"; (ADMINISTRATION) E RECOiNUNI[ENDATION: Approve Proclamation. Mayor Irons opened up the public comment period for items on the Consent Calendar: seeing none, public comment was closed. Mayor Irons pulled Items A-2 and A-4 from the Consent Calendar. MOTION: Councilmember Nancy Johnson moved the City Council approve Items A- 1. A-3, and A-5 of the Consent Calendar as presented. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. A-2 A-2 QUARTERLY PROJECT STATUS REPORT; (ADMINISTRATION) Mayor Irons pulled this item to ask staff questions. MOTION: Mayor Irons moved for approval of Item A-2. Quarterly Project Status Report. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. 4 MINUTES - MORRO BAY CITY COUNCIL- MARCH 26.2013 A-4 APPROVAL OF A BUDGET ALLOCATION FOR GANGWAY REPAIR AT THE ® SOUTH LAUNCH RAMP (TIDELANDS PARK) CONLMERCIAL BOAT SLIPS: (HARBOR) Mayor Irons pulled Item A-4 so that Harbor Director Eric Endersby had a chance to provide an oral presentation for informational purposes. MOTION: Mayor Irons moved for approval of Item A-4, Approval of ,Budget Allocation for Gangway Repair at the South Launch Ramp Commercial Boat Slips. The motion was seconded by Councilmember Christine Johnson and carved unanimously 5-0. B. PUBLIC HEARINGS - NONE C. UNFNISHED BUSINESS - NONE D. NEW BUSINESS D-1 REQUEST FOR A FEE WAIVER FOR BOAT SLIP FEES — BRIAN STACY: (HARBOR) Harbor Director Eric Endersbv presented the staff report. Applicant Brian Stacy presented his case. ® iviavor Irons opened up the public comment period for Item D-1. C Betty Winholtz spoke on behalf of Brian Stacy stating that he has put in an incredible amount of work representing the Morro Bay and Avila fishermen on the seismic testing issue. She doesn't know about waiving the total fees but maybe a percentage: hopefully the City can look at the months that he was so involved in the work on the seismic testing and make some adjustments. Brad Snook agreed with Ms. Winholtz's comments in support of Brian. Brian was instrumental in providing information for articles appearing in the SLO Coast Journal. Mayor Irons closed the public comment period for Item D-1. Mayor Irons reopened the public comment period for Item D-1. Brian Stacy stated that a break down occurs when information is given to City staff first: it doesn't get passed onto all fishermen, just a select few. Bill Mahoney wondered if there is a discrimination of this nature. it couldn't hurt to dig a little deeper to find out if this is or isn't so. Mayor Irons closed the public comment period for Item D-1. 5 MINUTES - MORRO BAY CITY COUNCIL - MARCH 26, 2013 Mayor Irons wondered if staff had the leeway to waive the late fees:_ Mr. Endersbw stated that the ® department has worked well with other slip holders with payment plans in addition to waiving late fees. Mayor Irons then spoke on the concept of waiving fees stating that would need to be done in the form of a claim against the City, otherwise the fees have to be the responsibility of the slip holder. Councilmember Leage stated that this is a difficult topic as we try to help fishermen anytime we can. He feels it's best to try and work out a payment plan in order to get it caught up; he is also in favor of waiving the penalties. He went on to say that if we did this; it would set a precedent which would run us into a hard time. Councilmember Christine Johnson stated that she has no doubts that Mr. Stacy is a passionate caretaker of our ocean and wants to commend the work he does on all our behalf. That being said, she could support waiving the penalties and setting up a flexible and reasonable payment plan. Councilmember Nancv Johnson agrees with waiving the late fees, requiring him to begin making his current monthly slip payments and then setting up a payment plan to start catching up on the past due. Councilmember Smukler agrees with his colleagues and hopes that Mr. Stacy will follow up with the Harbor Department in an effort to Let him back in the water. MOTION: Mayor Irons moved to direct staff to waive the late fees for Mr. Stacy and ® set up a payment plan to even up his slip fee tab. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. El D-2 DISCUSSION ON THE STATUS OF THE PLANNING COMMITTEE'S PROGRESS FOR THE CITY'S 50TH ANNIVERSARY; (ADMINISTRATION) Joan Solu and Susan Stewart, representing a local citizen's group, presented a concept plan for the Citv's 50`h Anniversary Celebration to see if there was City interest. The City's 50`h Anniversary is Julv 17. 2014. This group is laying groundwork for a possible launch in 100 days with up to 18 months filled with special activities and events spotlighting Morro Bay_ 's unique qualities. Councilmember Nancv Johnson brought this forward as a Council item. She would like to see a Proclamation/Resolution supporting this event. She loves all the ideas brought forth; she also loves the outreach to the community. She supports this wholeheartedly and would like to volunteer to be a Council liaison to the committee. Mayor Irons opened up the public comment period for Item D-2; seeing none, the public comment period was closed. Councilmember Christine Johnson is absolutely in support of the efforts and enthusiasm to date. She likes the idea of partnering with our current events. G9 MINUTES - INIORRO BAY CITY COUNCIL- MARCH 26. 2013 Councilmember Smukler feels that 50 is significant, that the ideas are positive; he likes the ® incorporation of a theme into the year`s events, he is also supportive of a Resolution as soon as possible. He does have some caution regarding City funding at this time. Mayor Irons thought it would be good to provide some kind of kick-off notice letting the public know how they can help. He feels that coming back to Council in 30 days with a kickoff notice. an idea of what they plan on doing as well as a request for funding support would be appropriate. Councilmember Nancy Johnson feels that waiting 30 days will work out as we are headed into our budget process. The most important thing is the recognition that this is a celebration of the incorporation of our City and it needs City support. Councilmember Christine Johnson realizes that meeting places are.often difficult to come by; the City could offer support by allowing meeting space free of charge. By Council consensus. Councilmember Nancy Johnson and Leage were designated as City liaisons to the City's 50`s Anniversary Celebration Committee. MOTION: Mayor Irons moved staff bring back a Resolution in support of this event to include providing City facilities for meetings at no cost. The motion was seconded by Councilmember Nancy Johnson and carried unanimously 5-0. D-3 APPROVAL OF THE SERVICE RETIREMENT INCENTIVE (SRI) PROGR�'vi; ® (ADMNISTRATIVE SERVICES) Administrative Services Director presented the staff report Mayor Irons opened up the public comment period for Item D-3. Barry Brannin feels that this is a -wonderful program but is not in favor of having the program continue in perpetuity. He feels it necessary to come back to Council every year. Mayor Irons closed the public comment period for Item D-3. Councilmember Smukler was also concerned about this program continuing in perpetuity. He wondered how we can ensure the cost savings are being tracked. Councilmember Nancy Johnson stated that as long as they were getting an annual report, she is comfortable in the program as presented. Councilmember Christine Johnson would be comfortable in putting a 2 year limit. she is uncomfortable with "in perpetuity". Mayor Irons is struggling with the idea of incentivizing employees to retire. 7 MINUTES - MORRO BAY CITY COUNCIL- MARCH 26. 2013 Councilmember Smukler struggled with this program when it was first brought forward but he ® also realizes that the PERS rates at the higher percentages are more than we can sustain. He supports this program but not in perpetuity. Mavor Irons would like to approve this annually as well as have staff come back with an annual detailed financial fiscal impact report. MOTION: Councilmember Christine Johnson moved approval of the Service Retirement Incentive Program with an annual reporting requirement every July to include proper financial fiscal data. The motion was seconded by Councilmember Smukler and carried 3-2 with Councilmembers Nancv Johnson and Leage voting no. D-4 CONSIDERATION OF THE ADDITION OF TWO MEMBERS FROM THE GENERAL PUBLIC FOR THE SELECTION OF A CONSULTANT FOR THE DEVELOPMENT OF A NEW WATER RECLANIATION FACILITY (WRF); (PUBLIC SERVICES) Mayor Irons requested that Public Services Director Rob Livick present the staff report. ivlayor Irons opened up public comment for Item D-4. Brad Snook stated that the Surfrider Foundation has been involved with this issue since before the appeal. Surfrider would like to continue being a part of the process and would encourage the Citv Council to have a seat available to a Surfrider member. ® Mavor Irons closed public comment period for Item D-4. n LJ Councilmember Nancv Johnson has serious concerns about the way this process has been set up. The turnaround time is too quick. She also feels that as a member of the Council who wasn't considered for the Selection Committee. she has concerns about how these committee members will be selected. She feels it could be a very one sided situation. Councilmember Smukler stated that these appointments will be made by Council as a whole at a public meeting. The basic foundation in selecting this position is to get public buy -in as well as get as diverse a background and experience level as possible. Mavor Irons reinforced that the selection process will be in a public forum and hopes this can be supported so that we can move forward. He was perplexed by Councilmember Nancy Johnson's assertions that she was excluded from the selection process. Councilmember Nancy Johnson firmly believes in the public process. She also restated her concern about the turnaround time. April 2"d is only one week away; if we want to do this at the April 9i° meeting; we should at least allow people to apply through the end of next week. She is also concerned that the 3-2 Council will select those that follow their agenda. Councilmember Leage also feels that these people have already been selected. 8 MINUTES - MORRO BAY CITY COUNCIL — MARCH 26, 2013 Councilmember Christine Johnson feels there are mixed messages. .Initially there was an ® impetus to "go. go. go" and now there is a request to slow down. Councilmember Smukler gets the feeling that there is an assumption that this Council is pursuing the project like the last Council pursued the prior project - with a single focus. In going forward, it's important to balance out the efforts. He recalls there was no specific sign of interest from either Councilmember Nancv Johnson or Leage to participate in the committee. If we can give more time to those hoping to apply, that would be fine but he feels we need to ensure the selection is made at the April 9 h Council meeting. He is approaching this as trying to provide the best and most beneficial project possible for the City. Mayor Irons brought this forward to provide additional public input. He views this as a S person Council and hopes to hear input from everybody. he welcomes everybody's thoughts. MOTION: Mayor Irons moved approval of Item D-4 with the idea of the selection committee to include 2 citizens; the application due date set at April 4, 2013 at 5:00pm, and is noticed on the website; and also asks Council to solicit applications from the public. The motion was seconded by Councilmember Smukler and passed 4-1 with Councilmember Nancv Johnson voting no. D-5 DISCUSSION OF THE PUBLIC WORKS ADVISORY BOARD'S (PWAB) MEMO FROM THE STREETS SUMMIT MEETING; (PUBLIC SERVICES) Public Services Director Rob Livick presented the staff report. is Mayor Irons opened the public comment period for Item D-5; seeing none, the public comment period was closed. Councilmember Smukler was very impressed with the Street Summit itself. Many of the ideas are worthwhile and he would like to see them looked into. This problem is so large that he is also open to allowing the voters the opportunity to vote on a sales tax initiative, or at least explore those options. He also sees the need to update the Pavement Master Plan (PIMP) as the day to day maintenance needs to be addressed. He would also like to see an Annual State of the Streets. Councilmember Nancv Johnson understands the PIMP needs to be updated/modified. She would like to leave the development and update to staff. Councilmember Leage feels we need to get aggressive with the streets; it seems to be the cry of the public. A sales tax initiative may be what we need to do. Councilmember Christine Johnson totally agrees that the community probably sees this as the'-. 1 challenge and is the City's '2 Overall Goal. She is appreciative of the work put into the Public Works Advisory Board's memo. much of which we are already doing. If we tried to go to. the community for a general purpose tax, approximately % of the monies generated would come from tourists. She is ready to make a motion to have staff look at a dedicated sales tax -ballot ® measure. 9 MWUTES - MORRO BAY CITY COUNCIL - MARCH 26. 2013 C Mayor Irons isn't comfortable with blanketly dedicating excess monies to streets as each year could bring different situations, priorities and needs. He likes the idea of an Annual State of the Streets report or even an Annual Street Summit. He also feels we can update the PMP in-house. Councilmember Nancv Johnson has concerns with a sales tax initiative. The part that bothers her the most is assuming that tourists spending money in town will cover the sales tax which is directly in contrast with our shop local project that all of our merchants have been doing. Councilmember Smukler feels this speaks to the importance of having a committee of citizens working towards helping to increase the awareness of this being the best option of getting the streets done. Councilmember Christine Johnson sees this as a good example of being able to see where our tar dollars are being spent. Mayor Irons is in agreement that while we don't want to see any more tares; he is surprised to hear the public at the Street Summit state they are willing to pay a bit more to have their streets fixed. MOTION: Councilmember Christine Johnson moved to direct staff to begin the process to, and develop a timeline for, a dedicated sales tax ballot measure to repair streets infrastructure. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. MOTION: Councilmember Nancv Johnson moved to direct staff to flush out the Public Works Advisory Board's memo from the Street Summit as they develop a revised Pavement Management Plan. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. D-6 DISCUSSION OF POTENTIAL WATER AND SEWER RATE INCREASE: (PUBLIC SERVICES) Public Services Director Rob Livick presented the staff report. Mayor Irons opened the public comment period for Item D-6. Betty Winholtz stated that this item was much too important to be hearing at 10:00pm. She also stated that there was no data other than oral presentation that would support this. With regards to the sewer, there have been incremental rate increases over time and doesn't feel this is also warranted, especially in light of looking at doing another sales tax increase. This is too aggressive and isn't fair. This isn't a decision that should be made tonight: it should be brought back with additional information. Mayor Irons closed the public comment period. 10 MINUTES - MORRO BAY CITY COUNCIL -MARCH 26, 2013 Councilmember Smukler also feels there needs to be clear information, where the costs lie and why this would be necessary or not. The community needs to feel assured that monies have been managed properly. He feels Council needs a very clear detail of expenses. Councilmember Nancy Johnson would like to see this postponed until the next ,meeting. It's too late in the evening to deal with this. She too would like to see more information. She would also like to see the City seriously consider separating the water and sewer bills. Councilmember Leage agrees that it is too late to be discussing something this important. The public should be provided more information. Councilmember Christine Johnson needed clarification on why we haven't raised water rates for almost 20 years. She also wanted to reaffirm that Council didn't authorize a sales tax increase: they authorized staff to consider it because it's been asked of Council to consider it. Mayor Irons reiterated that we haven't done anything — we just want to do is to explore options. He would like to see a history of what took us here without adjusting our water rates. He would also like to see policy should be in place to at least have Council look at this more frequently instead of avoiding it. This item was continued to a future meeting. When it is heard. there should be more information, historical information, rate comparisons with other cities; as well a more detailed breakdown of our costs and expenses, and how our water and sewer rates tie together. ® D-7 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS UPDATE AND DISCUSSION; (CITY CODICIL) Mayor Irons stated that this item continues to be agendized for status, discussion and possible direction to staff. Public Services Director provided a short update. Mayor Irons opened up the public comment period for Item D-7; seeing none, the public comment period was closed. City Attorney Rob Schultz stated that the appraisal of the Righetti property in ongoing. The appraisers will be at the property Thursday, March 28th at I Iam. Hopefully we will receive that appraisal by the end of April. City Manager Andrea Lueker stated that staff was sending out an email to verify_ Council's availability for the Water Reclamation Facility Study Session. Councilmember Christine Johnson requested information about reaching out to Chevron and the possible use of their site. It was in the top 3 sites that were initially looked at. Councilmember Smukler stated it was important to gather information on other possible sites for ® the facility to include CMC and,Chevron. He also made it clear to staff that should they have 11 MINUTES - MORRO BAY CITY COUNCIL- MARCH 26, 2013 any ideas or if they feel Council is missing something, please bring them forward; there is no need to wait. Councilmember Nancy Johnson stated that at an EVC Committee meetine she attended. Chevron made a presentation about their beginning a process of developing the property they own on both sides of Tank Farm Road so they may be very busy. She also sits on the Citizen's Advisory Committee at CMC: at their last meeting the Chair mentioned that he understands that Morro Bay may be looking at working with them with their wastewater treatment plant. The Warden responded that no way, no how will they get involved with our wastewater treatment plant. CMC has had too many horrible problems with theirs. They are also having problems with working with Camp San Luis regarding their West Facility. There was no action taken on this item. E. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS Councilmember Smukler requested the Master Fee Schedule be visited as it relates to Use Permit Fees: Mayor Irons and Councilmember Christine Johnson concurred. Councilmember Smukler requested the City provide a presentation on the Landmark Tree Nominations as submitted by the Volunteer Tree Committee and approved by the Public Works Advisory Board. Councilmember Nancy Johnson would like to somehow include the Morro Bay Historical Society_ in the selection of a Landmark Tree: there was unanimous Council consensus for this item. MOTION: Councilmember Christine Johnson moved to continue the Goals Outline Review to the April 9, 2013 Citv Council Meeting. The motion was seconded by Mayor Irons and carried unanimously. ADJOURNMENT The meeting adjourned at 10:43pm. R corded bv: 3 �u� amie Boucher Citv Clerk 71 , 12 MINUTES - MORRO BAY CITY COUNCIL - MARCH 26, 2013 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. REVISED REGULAR MEETING TUESDAY, MARCH 12, 2013 CLOSED SESSION CITY HALL CONFERENCE ROOM - 5:00 PAL 595 HARBOR ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER ® CLOSED SESSION PUBLIC COMMENTS - Members of the public may address the City Council on any matter that is listed on this Closed Session agenda. Unless additional time is authorized by the City Council, remarks shall be limited to three minutes. D " SUMMARY OF CLOSED SESSION ITEi•IS - The Mayor will read a summary of Closed Session items. THE CITY COUNCIL WILL MOVE TO CLOSED SESSION 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 following employee organizations and giving instructions to the Designated Representative: Firefighters Association (FFA), Police Officer's Association (POA), and Service Employee's International Union, SEW Local 620. CS-2 GOVERNMENT CODE SECTION 54957.6. CONFERENCE WITH LABOR NEGOTIATOR: Conference with Citv Council, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the following unrepresented employees: City Manager and City Attorney. ® IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. PUBLIC SESSION 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 CITY COUNCIL MINUTES FOR THE CITY COUNCIL MEETNG OF FEBRUARY 26, 201 3; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 19-13 AMENDING COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING MEETING GUIDELINES & PROCEDURES, (CITY ATTORNEY) '® REC0i4UfENDATION: Adopt Resolution 19-13. A-3 APPROVAL OF LEASE AGREEMENT FOR LEASE SITE 93-95/93W-95W: 901- 91 5 EMBARCADERO (HARBOR) ® RECOMMENDATION: Approve Resolution No. 17-13 for a new Lease Agreement for Lease Site 93-95/93W-95W. A-4 AUTHORIZATION FOR . ATTENDANCE AT THE C-MANC ANNUAL WASHNGTON D.C.: (ADMINISTRATION) RECOMMENDATION: Approve authorization for a two -person delegation to attend the California Marine Affairs and Navigation Conference (C-MANC) Washington Week meetings. A-5 APPROVAL OF THE 2013/14 BUDGET CALENDAR; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Approve Calendar. A-6 STATUS REPORT ON THE UTILIZATION OF BIG BELLY GARBAGE RECEPTACLES AT THE MORRO ROCK PARKING LOT: (RECREATION & PARKS) RECOMMENDATION: Receive status report; no action is required. A-7 DISCUSSION ON THE STATUS OF THE SALE OF CITY -OWNED PROPERTY AT ® THE SOUTHEAST CORNER OF CORAL AVENUE AND SAN JACNTO STREET, AND AUTHORIZATION FOR STAFF TO SOLICIT A REQUEST FOR PROPOSALS FOR REAL ESTATE CONTRACT SERVICES TO ASSIST IN THE SALE OF THE PROPERTY: (CITY ATTORNEY) RECOMMENDATION: Authorize staff to solicit proposals for real estate contract services to assist in the sale of City -owned property located at the southeast corner (SEC) of Coral Avenue and San Jacinto Street. A-8 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY SUPPORTING THE DEVELOPMENT OF A PUBLIC BIKE PARK WITHIN THE CITY LIMITS (RECREATION & PARKS) RECODI I ENDATION: Adopt Resolution 20-13. A-9 A PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY DECLARING APRIL 2013 AS "AUTISM AWARENESS MONTH": (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES - None ® C. UNFNISHED BUSINESS 3 C-1 RESOLUTION NO. 15-13 ADOPTING THE MID -YEAR BUDGET AMENDMENTS; (ADMNISTRATIVE SERVICES) ®, RECOMMENDATION: Adopt Resolution No. 15-13, authorizing the budget amendments as revised at this meeting. D. NEW BUSINESS D-1 INITIATION OF THE PROCESS TO CONSIDER THE ABANDONMENT (VACATION) OF A PORTION OF THE PUBLIC RIGHT OF WAY WESTERLY OF THE EXISTNG BACK OF CURB OF TORO LANE, BETWEEN YERBA BUENA AND NORTH POINT SUBDIVISION. USING THE PROCEDURES PROVIDED BY THE CALIFORNIA STREETS AND HIGHWAYS CODE. SECTION 8300 ET SEQ. (GREG FRYE, 3420 TORO LAME. APPLICANT); (PUBLIC SERVICES) RECONINIENDATION: Adopt Resolution Number 18-13, a Resolution of Intention to abandon a portion of Toro Lane; and finding that the right -of -Way abandonment is consistent with the General Plan no longer needed for its intended purpose and setting the date for the public hearing ordering the final abandonment. D-2 APPROVAL OF A REQUEST FOR PROPOSAL (RFP) FOR CONSULTANT SERVICES TO STUDY OPTIONS FOR MORRO BAY N THE DEVELOPMENT OF A WASTEWATER TREATMENT PLANT PROJECT: (PUBLIC SERVICES) RECOMMENDATION: Approve the RFP for consultant services. ® D-3 REVIEW AND DISCUSSION OF WASTEWATER TREATMENT PLANT DRAFT SCHEDULE OF TASKS NEEDED TO PROCEED WITH THE NEW WASTEWATER TREATMENT PLANT PROJECT RECOMIfENDATION: Review and provide direction to staff. 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 772-6205 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 NIP UTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 12. 2013 ® VETERAN'S MEMORIAL HALL — 6:OOP.M. Mayor Irons called the meeting to order at 6:00 p.m. PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Leage Noah Smukler STAFF: Andrea Lueker Robert Schultz Jamie Boucher Rob Livick Amy Christey Steve Knuckles Eric Endersby Susan Slayton Joe Woods AGENDA NO: A-1 MEETING DATE: 3/26/2013 Mavor Councilmember Councilmember Councilmember Councilmember Citv Manager Citv Attornev Citv Clerk Public Services Director Police Chief Interim Fire Chief Harbor Director Administrative Services Director Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER ® MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS. AiWOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT — City Attorney Robert Shultz reported that City Council met in Closed Session on the following items: Conference with Citv Manager. the Citv's Designated Representative. for the purpose of reviewing the City's position regarding the terms and compensation paid to the following employee organizations and giving instructions to the Designated Representative: Firefighters Association (FFA), Police Officer's Association (POA), and Service Employee's International Union. SEIU Local 620: and. Conference with City Council, the CiWs Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the following unrepresented employees: City Manager and City Attorney; no reportable action under the Brown Act was taken. MOTION: Councilmember Smukler moved for approval and presentation of Item A-9. a Proclamation Declaring April 2013 as "Autism Awareness Month. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. PUBLIC COMMENT Marlys McPherson. as Chair of the Morro Bay Winter Bird Festival. thanked Council and the ® City for their support and sponsorship of their biggest and most successful event yet. There were 546 people registered. 70% of which came from outside the County. Hank Roth spoke on behalf of Morro Bay Beautiful advertising the upcoming City-wide Yard Sale. This annual event is being held the weekend of April 6d' and 79. You can sign up as a "seller" at the Chamber of Commerce. 695 Harbor. and the deadline to register is March 27d'. ® Brad Snook. Chair of the SLO Surfrider Association, spoke on Item D-3. Review and Discussion of Wastewater Treatment Plant Draft Schedule of Tasks Needed to Proceed with the New Wastewater Treatment Plant Project. It is their hope that Council will support a bolder vision than is on the schedule: they feel it is feasible to move forward by 2017. Garry Johnson let the public know that the Photo Expo that had been scheduled for April 18d' and 19d' has been postponed to September. He also let people know that care packages for our troops overseas are available to be mailed for S 14.85. They can be picked up at Bayshore Realty and Carla's Country Kitchen. Daniel Podesto spoke as President of Morro Bay 4d' stating they are actively looking for volunteers to join their group to help with both the event and fundraisers leading up to the event. The committee meets the I" and 3`d Friday of the month at noon, upstairs at the Embarcadero Grill. He also announced the Annual Oyster and Beer Feast is being held at Tognazzini's II sometime in May; the date for the 3`d Annual Wine Raffle is also in the process being set. His last request was to ask the Council for some help: he'd like to see an agenda item at a future meeting, giving financial support for the event in the form of waiving some City staff costs. Greg Frye spoke on Item D-1, Consideration of the Abandonment of a Portion of the Public Right of Way Westerly of the Existing Back of Curb of Toro Lane. He is in favor of further investigation and feels that his proposal will allow for additional needed parking in the area. He ® would like a chance to present his concept at a Public Hearing to provide options for this land. Brian Stacy spoke on the PG&E Seismic Surveys as well as the need for a State audit as to why the City didn't receive any mitigation. He also feels there is a small group of fishermen who get all the information and then a bunch of money but the "rest of us don't`. Betty Winholtz spoke on Item A-3, Approval of Lease Agreement for Lease Site 93-95/93W- 95W; 901-915 Embarcadero. She questioned what the justification for a 40 year lease was as there was nothing in the lease document that listed what the investment of money by the lessee there was. She also wondered if there was anyone else who had received a 40 year lease like this. She also spoke on Item D-1. disagreeing with the applicant stating that the request of intention to abandon is not consistent with the General Plan as there is need for this property for public use. Doug Hamp also spoke on Item D-1 and urged Council not to jump into any quick decisions. He feels we need to look at all the alternatives of what may be possible. Bill Martoney spoke on Item D-1 thanking Council for bringing this forward. He recommends not adopting the Resolution of Intent as he feels that it locks the City into the process of abandonment. Barbara Doerr concurs with Mr. Martonev. She feels we should preserve our environment as it ® is critical to keep this land. She also spoke about her disappointment at the actions in closed MINUTES - MORRO BAY CITY COUNCIL - MARCH 12, 2013 session. She feels we advertise incorrectly, and we have announcement requirements that we don't follow. She also provided amendments to the February 26, 2013 meeting minutes. She further spoke on Item A-3, 47 years is an outrageous amount of time and she feels it may ® establish a policy on length and terms of future leases. Barry Branin reported on a Special Meeting on March 5a' of the Cavucos Sanitary District. He stated that Cayucos wants to move forward expeditiously and look at all of the concepts for Cayucos before they commit to Morro Bav which he feels is a good idea. At the end of the meeting. Chairman Ears made the comment that maybe we should think about putting the plant at Chorro Vallev or CMC. Susan Stewart attended the Goal Setting and commended all on a really good job; it was positive and all worked together well. She is very supportive of the Morro Bay 0; the City service fees are approximately 10% of their costs. If there is any way to waive some or all of those fees, it would be very helpful. Nancy Castle spoke promoting Supper and Singing this Friday night with dinner at 530pm and music by Tangos & More at 7pm. She also stated that there won't be a Sock Hop during the Morro Bav Car Show. She also advertised the Morro Bay Fundraiser Follies whose theme is music from the '50's. Cathy Novak spoke on behalf of the applicant for Item D-1 hoping to provide clarity to the situation. She stated that the Resolution before Council did the following: approving the Resolution is only the intent to abandon the right of way: the resolution doesn't make the abandonment final; the resolution includes a public service easement that allows the Council to ® use the area for public purposes in the future; the resolution includes an easement for public utilities: a public hearing is set for April 23`d to consider the final abandonment. Coastal Development Permit, environmental determination and alternative options; and. it doesn't authorize the Council to sell all or a portion of the property. In addition, the applicant has submitted an alternative option to Council that will provide added public benefits above and bevond those that currently exist. Approving this only allows the opportunity to present this idea in a public forum. 11 Lvnda Merrill agrees with those speaking against Item D-1; she feels there needs to be more public comment. She also is in favor of Item D-2 and Item D-3. Mark Starbol spoke on Item D-1 and would like to see it not move forward. He is concerned with parking especially now with the possibility of the State Park project; there could be too many cars parking on Beachcomber. The City needs to take into account the needs of the residents, not just tourists. when making these decisions; the public needs access to the beach. If there are lots of cars parked there, it can cause a lot of confusion and congestion which is dangerous. Harold Wiebenga spoke out against an item that will be coming to Council as an appeal re: Morro Strand State Beach. He feels the park is in total violation of all new pollution laws — visual, dust. smell as well as state nuisance laws. He feels that State Parks have fallen short of their responsibilities and the park should be closed. 3 MINUTES - MORRO BAY CITY COUNCIL - MARCH 12, 2013 RECOMMENDATION: Authorize staff to solicit proposals for real estate contract services to assist in the sale of City -owned property located at the southeast corner ® (SEC) of Coral Avenue and San Jacinto Street. A-8 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY SUPPORTING THE DEVELOPMENT OF A PUBLIC BIKE PARK WITHIN THE CITY LIMITS (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution 20-13. A-9 A PROCLAMATION OF THE CITY" COUNCIL OF THE CITY OF MORRO BAY DECLARING APRIL 2013 AS "AUTISM AWARENESS MONTH": (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember Smukler pulled Items A-2, A-3 and A-5 from the Consent Calendar. MOTION: Councilmember Christine Johnson moved the City Council approve Items A-1. A-4, A-6. A-7 and A-8 of the Consent Calendar as presented. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. A-2 RESOLUTION NO. 19-13 AMENDING COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING MEETING GUIDELINES & PROCEDURES; (CITY is ATTORNEY) Councilmember Smukler pulled this item so that he could thank Mayor Irons for his time workine with the City Attorney; he feels this is a major improvement. MOTION: Councilmember Smukler moved for approval of Item A-2, approving Resolution 19-13. amendine Council Policies and Procedures ivlanual reeardine Meetine Guidelines & Procedures. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. A-3 APPROVAL OF LEASE AGREEMENT FOR LEASE SITE 93-95/93W-95W: 901- 915 EMBARCADERO (HARBOR) Councilmember Smukler pulled Item A-3 so that Harbor Director Eric Endersby has a chance to respond to the public's continents/concerns. Mr. Endersby stated that this process began in November. 2011, the lease and its terms are on the website as well as in the staff report and has been publicly available. In this case, there is significant financial risk by the lessees. MOTION: Councilmember Smukler moved for approval of Item A-3, Approval of Lease Aereement for Lease Site 93-95/93W-95W. 901-915 Embarcadero. The motion was seconded by Councilmember Lease and carried unanimously 5-0. ® A-5 APPROVAL OF THE 2013/14 BUDGET CALENDAR; (.ADMINISTRATIVE SERVICES) 5 MINUTES-MORRO BAY CITY COUNCIL- MARCH 12, 2013 Councilmember Smukler pulled this item for public information purposes. Administrative Director Susan Slayton provided a short description of the budget process. ® MOTION: Councilmember Smukler moved for approval of Item A-5, Approval of the 2013/1=4 Budget Calendar. The motion was seconded by Mavor Irons and carried unanimously 5-0 B. PUBLIC HEARINGS. REPORTS & APPEARANCES - NONE C. UNFINISHED BUSINESS C-1 RESOLUTION NO. 15-13 ADOPTING THE MID -YEAR BUDGET ArIN4ENDMENTS: (ADMNISTRATIVE SERVICES) Administrative Services Director Susan Slayton presented the staff report. Councilmember Nancy Johnson has a problem with seeing the S30.000 listed as a Council Contingency Fund and would rather see it listed in the general budget. Mavor Irons wondered about the Measure Q Funds and asked whether or not any of these funds could be allocated to an immediate need for streets or storm drains or should an_v be held back for adjustments. Public Services Director Rob Livick stated it would cost approximately S86.000 to prepare and provide an updated Storm Drain Management Plan which he recommends being done. Mayor Irons would like to reagendize this to see if a Storm Drain ® Master Plan would be a good use of Measure Q monies. Councilmember Smukler doesn't want to see the S30.000 listed as a Council Discretionary fund. He thinks it's important to keep these monies separate and designated for special projects as deemed necessary and approved by a majority of Council. He thinks that updating the plan is a good idea and an efficient use of Measure Q funds but feels it's important that we should ask the Measure Q Committee as to the appropriateness of the use. Mavor Irons thinks we can leave the $30.000 where it is for now. floating it into the general fund during the budget process wouldn't be that difficult. Councilmember Nancy Johnson stated that if you don't want to put it into the general fund then at least put it into a Special Projects Fund, not a Contingency Fund for Council. Ms. Slayton stated that the money can be placed into a special fund called a 515 Trust & Agency Fund, with the Council's approval. MOTION: Mayor Irons moved to adopt Resolution 15-13 as written, to approve the Measure Q recommendations; and to place the S30.000 contingency monies into a 515 Trust & Agency Fund. The motion was seconded by Councilmember Nancy Johnson and carried 5-0. D. NEW BUSINESS E. MINUTES - MORRO BAY CITY COUNCIL - MARCH 12. 2013 D-1 INITIATION OF THE PROCESS TO CONSIDER THE ABANDONMENT (VACATION) OF A PORTION OF THE PUBLIC RIGHT OF WAY WESTERLY OF ® THE EXISTNG BACK OF CURB OF TORO LANE. BETWEEN YERBA BUENA AND NORTH PONT SUBDIVISION, USING THE PROCEDURES PROVIDED BY THE CALIFORNIA STREETS AND HIGHWAYS CODE. SECTION 8300 ET SEQ. (GREG FRYE, 3420 TORO LANE, APPLICANT); (PUBLIC SERVICES) Public Services Director Rob Livick presented the staff report. Councilmember Smukler doesn't feel we are ready to proceed with the Resolution of Intention: he feels we owe it to the community to take more time for the public to look at it. He also feels Council needs to provide staff with clear direction to analyze various parking proposals; options and benefits that can come back to the City. He has spoken with neighbors and concerned citizens and most see parking as a key issue which has been exaggerated by the State Park issue. After reviewing the Morro Bay Cayucos Connector EIR. he is concerned we are setting ourselves up for pretty severe issues in the area and the connector project could backfire. He is also interested in looking for a fair market value concept of the property. Councilmember Nancy Johnson thinks that many of Councilmember Smuklers concerns would be answered if we approved the Resolution of Intention tonight and initiate the process to consider the abandonment as the nest step would be to bring it back to a Public Hearing where all the concerns can be addressed. She also questioned the idea of developing a parking lot right outside the state park which would encourage people to park there, enter Morro Strand, not paying the entrance fee. She would like to move ahead with the process looking at all our ® options. Councilmember Leage agrees with Councilmember Nancy Johnson. Councilmember Christine Johnson wondered if it was possible to bring this item forward as a public hearing without passing the Resolution of Intention. She is most comfortable with moving forward to a Public Hearing to discuss the issue without passing the Resolution of Intention. Mayor Irons was concerned that the Planning Commission didn't see the most recent proposal from Mr. Frye. He also doesn't see any harm in doing the Public Hearing as it answers concerns from the public as well as gives everybody a fair opportunity to address the issue. MOTION: Mayor Irons moved not to adopt Resolution of Intention 18-L3 but direct the applicant and staff to come forward at a Public Hearing to work out details of the development and/or partnership and/or acquisition of the property to include exploring and evaluating scenarios of existing and maximized parking opportunities. The motion was seconded by Councilmember. Smukler and carried 3-2 with Councilmembers Nancy Johnson and Leage voting no. D-2 APPROVAL OF A REQUEST FOR PROPOSAL (RFP) FOR CONSULTANT SERVICES TO STUDY OPTIONS FOR MORRO BAY N THE DEVELOPMENT OF A WASTEWATER TREATMENT PLANT PROJECT: (PUBLIC SERVICES) ® Public Services Director Rob Livick presented the staff report. 7 MINUTES - MORRO BAY CITY COUNCIL - bLARCH 12.2013 Discussion was held on the make-up of the Selection Committee for the Project Manager. Councilmember Smukler suggested 2 Councilmembers be part of the selection process. Mayor Irons showed some concern that we want the process to be expedited and hopes that the selection committee doesn't slow down the process. Councilmember Lease felt that Cayucos should be involved. Councilmember Christine Johnson would be interested in being involved but understands it also makes sense to so with the JPA Sub -committee members. MOTION: Mavor Irons moved approval of the RFP as proposed and cleaned up with the Selection Committee being comprised of ivlavor.Irons and Councilmember Christine Johnson along with staff. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. D-3 REVIEW AND DISCUSSION OF WASTEWATER TREATMENT PLANT DRAFT SCHEDULE OF TASKS NEEDED TO PROCEED WITH THE NEW WASTEWATER TREATMENT PLANT PROJECT; (PUBLIC SERVICES) Public Services Director Rob Livick presented the staff report reaffirming that this is a working document that will be added to as things come up. Questions were asked of staff and discussion held. The thought of throwing in the CMC, the Chorro Valley and Tri-W option for possible sites was discussed. E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Christine Johnson requested the City Develop a Consultant Services Hiring Policy; Mayor Irons and Councilmember Smukler concurred. Councilmember Nancy Johnson requested the Completion of the City Sign Ordinance (for June 2013); 'Mayor Irons and Councilmember Christine Johnson concurred. Councilmember Smukler requested the City provide an Update on the Storm Drain Management Plan to include Review of Funding Options; there was unanimous Council consensus for this item. ADJOURNMENT The meeting adjourned at 9:37pm. Recorded by: amber City Clerk E MINUTES - MORRO BAY CITY COUNCIL - MARCH 12.2013 City of Morro Bay Morro Bay, CA 93442 (805) 772-6205 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 Monday, March 11, 2013 from 5:30n.m. — 8:30n.m. to be held in the Community Center Studio located at 1001 Kennedv Wav, California. Public Comment will begin at 5:30p.m. NOTICE IS FURTHER GIVEN that the Morro Bay City Council will be holding a Goal Setting Workshop on Wednesdav, March 13, 2013 ® from 1:00P.m — 4:30D.m. to be held in the Community Center Studio located at 1001 Kennedy Way, California. Public Comment will begin at 1:00p.m. The City Council will discuss priorities, review and prioritize goals and identify and define success factors. DATED: March 4, 2013 kalu' J mie Boucher, 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 MEETINGS. E ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and ivill provide a level of municipal service and safety consistent ivith and responsive to the needs of the public. REVISED REGULAR MEETING TUESDAY, FEBRUARY 26, 2013 CLOSED SESSION 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 following employee organizations and giving instructions to the Designated Representative: Firefighters Association (FFA), Police Officer's Association (POA), and Service Employee's International Union, SEIU Local 620. CS-2 REAL PROPERTY TRANSACTIONS -- GOVERNMENT CODE SECTION 54956.8: Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale; exchange, or lease of real property as to one parcel. Property: Right of Way Adjacent to 3420 Toro Lane Negotiating Parties: G. Frye 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. 11 PUBLIC SESSION 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 Ai�iNOUNCEMENTS & 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 Mavor, 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 anv 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 wrill 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 CITY COUNCIL MNUTES FOR THE CITY COUNCIL MEETING OF FEBRUARY L3, 201 3: (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION OF THE. CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA RESCINDING RESOLUTION 45-11 AND RESTORING ® COMMERCIAL IMPACT FEES TO THEIR PRE JULY 1. 2011 LEVEL: (PUBLIC SERVICES) I RECOMMENDATION: Adopt Resolution 16-13. ® A-3 AWARD OF CONTRACT FOR MB-2012-H2. HARBOR PATROL VESSEL REPLACEMENT AND BUDGET AMENDMENT TO COMPLETE FUNDING: (HARBOR) RECOMMENDATION: Award Contract and authorize necessary budget amendment. A-4 A PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY SUPPORTING THE BUY" LOCAL POLICY OF THE COUNTY OF SAN LUIS OBISPO (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation A-5 A PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY DECLARING TUESDAY, FEBRUARY 26, 2013) AS "WORLD SPAY DAY": (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-6 PRESENTATION BY THE MORRO BAY NATURAL HISTORY MUSEUM_: (ADMINISTRATION) RECOMMENDATION: Receive presentation; no action is required. ® B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 PUBLIC NPUT ON 2011 CITY COUNCIL GOALS; (ADMINISTRATION) RECOMMENDATION: Open the public hearing and accept comment from the public on Goals for the City of Morro Bay. C. UNFINISHED BUSNESS: None D. NEW BUSINESS D-1 RESOLUTION NO. 15-13 ADOPTING THE MID -YEAR BUDGET AMENDMENTS. PLUS THE MEASURE Q COMMITTEE REPORT AND THE DECEMBER 2012 PORTFOLIO PERFORMANCE; (ADNNISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 15-13, authorizing the budget amendments as revised at this meeting. D-2 DISCUSSION OF THE TEMPORARY IMPROVEMENTS AT THE CORNIER OF SHASTA AND DUNES STREETS; (RECREATION & PARKS) ® RECOMMENDATION: Review the Recreation and Parks Commission's recommendation and provide staff with direction to either improve the area or continue with its current use. 3 D-3 SELECTION OF TWO (2) PUBLIC WORKS ADVISORY BOARD MEMBERS: (ADMINISTRATION) ® RECOMMENDATION: Discuss applicant pool and appoint 2 members to the Public Works Advisory Board. D-4 DISCUSSION AND DIRECTION ON THE PROPOSAL TO UPDATE THE 2008 MANAGEMENT PARTNERS STUDY (ASSESSMENT OF CITY ORGANIZATION AND FINANCIAL OPTIONS); (ADMINISTRATION) RECOMMENDATION: Review the proposal from Management Partners to update the 2008 Assessment of Citv Organization and Financial Options document and provide staff direction. D-5 DISCUSSION AND RECOMMENDATION ON PROPOSED REVISIONS TO THE COUNCIL POLICIES AND PROCEDURES; (CITY COUNCIL) RECOMMENDATION: Review and discuss the proposed red -lined changes to the Council Policies & Procedures and authorize changes to be made as approved by a majority of Council. D-6 DISCUSSION ON THE STATUS OF THE CITY OF MORRO BAY AND CAYUCOS SANITARY DISTRICT WASTE WATER TREATMENT PLANT PROJECT AND REVIEW AND APPROVAL OF LETTERS TO STATE AND FEDERAL ® LEGISLATORS REGARDING SUPPORT AND FUNDING FOR THE PROJECT; (CITY COUNCIL) RECOMMENDATION: Provide status update and review, revise and approve letter for distribution. 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 772-6205 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 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING FEBRUARY 26, 2013 CLOSED SESSION 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 Nth Citv Manager. the City's Designated Representative, for the purpose of revie�ti2ng the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 26. 2013 VETERAN'S MEMORIAL HALL — 6:00P.M. Mayor Irons called the meeting to order at 6:00 p.m. PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Lease Noah Smukler STAFF: Andrea Lueker Robert Schultz Jamie Boucher Rob Livick Steve Knuckles Eric Endersby Susan Slayton Joe Woods AGENDA NO: A-1 MEETING DATE: 3/12/2013 Mavor Councilmember Councilmember Councilmember Councilmember City Manager Citv Attomev Ciry Clerk Public Services Director Interim Fire Chief Harbor Director 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 Shultz reported that City Council met in Closed Session and no reportable action under the Brown Act was taken on the following item: Conference with Citv Manager. the Cit 's Designated Representative, for the purpose of reviev,ine the City's position regarding the terms and compensation paid to the following employee organizations and giving instructions to the Designated Representative: Firefighters Association (FFA). Police Officer's Association (POA), and Service Employee's International Union. SEI J Local 620. Resardins Closed Session Item Real Property Negotiations: Right of Way Adjacent to 3420 Toro Lane. the Council did not discuss or deliberate on this item except to direct staff to proceed with abandonment proceedings in open session. Citv Attorney Schultz reported that City Council met in a Special Closed Session on Monday, February 25, 2013 to review 23 lease sites. Councilmember George Lease recused himself from participation on all 23 items. Council directed staff to hold a Study Session on the Tidelands leases which has been scheduled for Monday. March 25, 2013 at 6pm; the location to be announced. MOTION: Councilmember Nancy Johnson moved for approval and presentations of ® Proclamation Items A-4 and A-5. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. PUBLIC COMMENT Alexis and Joanne, employees at Thread, a Vintage clothing store located at 400 Morro Bay Blvd, presented the Morro Bay business report. They also sell furniture, jewelry; shoes, hats. etc... They are going to be holding a fashion show in April which should be great fun. They are open 7 days a week from 1030am-530pm and are dog friendly. Bonnie Johnson asked for the City's and Council's support for a Morro Bay Bike Park. She hoped the concept could parallel the Morro Bay Dog Park. Thev would raise funds and commit to volunteer hours. There is no other outdoor bike park in the County, the closest one being over 2= hours away. They would try to get the local youth involved. They have looked at a few locations which include Radcliffe and Main: the Teen Center and the Cloisters property. They have over 250 signatures in support of the project as well as have a Facebook page with over 170 "likes'. Jonelle Muff announced that its Girl Scout cookie time. She introduced the following girls who spoke about their involvement in girls scouts and their cookie sales: Madison Neville, Erica Walker. Mary Grace Stouwie . Hannah Colletti_. Maggie Mav Muff. Gwen Muff. Carly Muff_. Katie Doot and Carris Leicester-Cadaret. Bill Martony spoke on the Special Closed Session on February 251h. He felt that one business day noticing didn't allow enough time for the public to be informed. He was glad to hear there will be a public workshop. In the future, he feels that closed session should be limited to actual negotiations of price and terms, everything else should be dealt with in open session. ® Alex Kachlakev a professional mountain biker. spoke on the proposed Bike Park. He has seen first-hand the positive impacts a bike park can give the youth. It offers up a sense of discipline, keeps kids out of trouble and provides the opportunity for kids to learn the value of responsibility as they can help with maintenance of the park. Drew Sidaris spoke representing the Recreation & Parks Commission on the City's Pocket Park / Community Garden project. They are in total support of moving forward with the project and recommend either Park #1 or Park 115 as they are the easiest to maintain and are the most cost effective. Emily Gacad spoke in support of the Bike Park. She garnered 100 signatures at the high school in support of bringing a bike park to Morro Bay. Bem, Winholtz let the City know that Davey Company, a local tree company, was contracted by PG&E to work around some utility lines by Black Hill. They chose to ignore the City's Ordinance prohibiting tree trimming during the bird nesting season. February 1 thru June 1. She also is in support of a Community Garden over a Pocket Park. Garry Johnson spoke on the New Times, specifically the Shredder section. He was "shredded" based on the support he gives his wife. He also advertised the Morro Photo Expo being held April 18a' — April 21" MINUTES - MORRO BAY CITY COUNCIL- FEBRUARY 26, 2013 Lynda Merrill spoke in support of Items A-3, A-4 and A-5. She is concerned about the differences between newly elected officials and our policies. Maybe the policies need to be ® reviewed to possibly reflect new ideas. Nancv Castle is dedicated to having fun in 201 She advertised the first Singing and Supper being held at St. Peters Church on March 15 . Tango and More will be plaving and it promises to be a great time. She also advertised the first ever Sock Hop being held on Saturday. May 4`h. during the Annual Crusin Car Show weekend. Jordan Smith thinks the Bike Park is a great idea. Santa Cruz is the closest legal bike park. This would make Morro Bay a great destination place for mountain bikers. Barbara Doerr lent her support to the Bike Park as it would be great for the kids. She also spoke on Item D-5. Discussion and Recommendation on Proposed Revisions to the Council Policies and Procedures. She performed a survey of 25 Channel Cities as to the way they do their public comment. She is pleased that Mavor Irons has brought the item forward as it provides Council continuity and understanding of each agenda item. She also requested that we record or video the public participation of the Closed Session meetings. Bam, Branin spoke on Item D-6. Discussion on the Status of the City of Morro Bay and Cayucos Sanitary District Waste Water Treatment Plant Project and Review and Approval of Letters to State and Federal Legislators Regarding Support and Funding for the Project. He attended the Cavucos Sanitary District's Board meeting where a proposal was presented by Water Systems Consulting, offering professional engineering services to help develop preliminary conceptual is District. to the treatment and disposal of wastewater collected by the Cavucos Sanitary District. He also said that Cayucos is holding a workshop on March 5, 20133. u Mavor Irons closed the public comment period. 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 CITY COUNCIL MNUTES FOR THE CITY COUNCIL MEETING OF FEBRUARY li. 2013: (ADMINISTRATION) RECOMNIENDATION: Approve as submitted. A-2 RESOLUTION OF THE CITY" COUNCIL OF THE CITY OF NIORRO BAY, CALIFORNIA RESCINDING RESOLUTION 45-11 _-ViND RESTORING COMMERCIAL IMPACT FEES TO THEIR PRE JULY 1. 2011 LEVEL: (PUBLIC SERVICES) RECONMIENDATION: Adopt Resolution 16-13. 3 MINUTES - MORRO BAY CITY COUNCIL - FEBRUARY 26. 2013 A-3 AWARD OF CONTRACT FOR MB-2012-1-12. HARBOR PATROL VESSEL REPLACEMENT AND BUDGET AMENDMENT TO COMPLETE FUNDING: ® (HARBOR) RECOMMENDATION: Award Contract and authorize necessary budget amendment. A-4 A PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY SUPPORTING THE BUY LOCAL POLICY OF THE COUNTY OF SAN LUIS OBISPO (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation A-5 A PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY DECLARING TUESDAY_. FEBRUARY 26, 2013 AS "WORLD SPAY DAY": (ADMINISTRATION) RECOMIMENDATION: Adopt Proclamation. A-6 PRESENTATION BY THE MORRO BAY NATURAL HISTORY MUSEUM_: (ADMINISTRATION) RECOMNIENDATION: Receive presentation; no action is required. Item A-6. Presentation by the Morro Bay Natural History Museum was not made. ® Councilmember Nancy Johnson pulled Item A-2 and Mayor Irons pulled Item A-3 from the Consent Calendar. MOTION: Councilmember Christine Johnson moved the City Council approve Items A-1 and A-6 of the Consent Calendar as presented. The .motion was seconded by Councilmember Smukler and carried unanimously 5-0. A-2 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA RESCINDING RESOLUTION 45-11 AND RESTORING COMMERCIAL IMPACT FEES TO THEIR PRE JULY 1, 2011 LEVEL; (PUBLIC SERVICES) Councilmember Nancy Johnson pulled this item so that she could vote no. MOTION: Councilmember Smukler moved for approval of Item A-2. rescinding Resolution 45-11 and restoring commercial impact fees to their pre July 1. 2011 level. The motion was seconded by Councilmember Christine Johnson and carried 3-2 with Councilmembers Nancy Johnson and Leage voting no: A-3 AWARD OF CONTRACT FOR MB-2012-H2. HARBOR PATROL VESSEL REPLACEMENT AND BUDGET AMENDMENT TO COtiiPLETE FUNDING: ® (HARBOR) 4 MINUTES - MORRO BAY CITY COUNCIL - FEBRUARY 26. 2013 Mayor Irons pulled Item A-3 so that Harbor Director Eric Endersby could give a short report on the need for the boat replacement. ® MOTION: Councilmember Nancy Johnson moved for approval of Item A-3, Award of Contract for M13-2012-1-12, Vessel Replacement and Budget Amendment to Complete. Funding. The motion was seconded by Councilmember Leage and carried unanimously 5-0. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 PUBLIC INPUT ON 2013 CITY COUNCIL GOALS: (ADMINISTRATION) City ivfanaQer Andrea Lueker announced the second of rwo opportunities for the public to address Council on goals for the upcoming year. Mayor Irons opened the Public Hearing for public comments. Lynda Merrill spoke on behalf of friends of hers who were unable to attend the meeting. She stated there should be more bicycle and pedestrian paths. She also stated that we need a men's clothing store and a Rexall Drug. Also, empty storefronts need to get full so that Morro Bav residents have somewhere to shop. Barbara Doerr feels we should adopt a Gift Ban Ordinance: she also feels we should adopt a Sunshine Ordinance which allows government to go above and beyond what the Brown Act ® might legally require: she also feels the Power Plant property should be rezoned. Mayor Irons closed the Public Hearing. C. UNFINISHED BUSINESS - None D. NEW BUSINESS D-1 RESOLUTION NO. 15-13 ADOPTING THE MID -YEAR BUDGET AMENDMENTS. PLUS THE MEASURE Q COMMITTEE REPORT AND THE DECEMBER 2012 PORTFOLIO PERFORMANCE; (ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton presented the staff report. Barbara Spagnola, representing the Citizen's Oversight Committee (Measure Q) presented the Measure Q report. Highlights of the report include: total revenue for fiscal year was S976,000; total expenditures were S508.000; ending fund balance was $1.556.000. Funds for the Police Department were used to service vehicle debt. laserfiche software upgrade and purchase of 3 ballistic vests. Funds for the Fire Department were used towards the construction of the new Fire Station and funded a fourth Firefighter per shift. Funds for Street Maintenance included street repairs, cross guttering and tree work. Funding for Storm Drains included minor storm drain projects with a carryover of $445,000. most of which was reallocated to the Pavement ® Management Plan. The Committee was pleased that Measure Q revenues have been spent consistent with the guidelines of the 2006 ballot measure. They requested that Measure Q funds MINUTES - D10RRO BAY CITY COUNCIL - FEBRUARY 26. 2013 continue to be spent in a timely manner so as to reduce carryover amounts as well as to demonstrate to the citizens, visible progress in areas identified in the ballot initiative. ® Mayor Irons hoped to continue this item to the nest meeting to try and find an additional S20.000-S30.000. His hopes were to be able to spend that money on funding the Management Partners Study upgrade. Councilmember Smukler hoped that Council could see a more detailed transaction report on accounts — specifically the contracts line. MOTION: Mayor Irons moved to continue Item D-1, Adoption of the Mid -Year Budget Amendments with direction to stretch it a little bit to come back with a target range of $30,000 as well as include detailed transaction reporting. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. D-2 DISCUSSION OF THE TEMPORARY IMPROVEMENTS AT THE CORNER OF SHASTA AND DUNES STREETS: (RECREATION & PARKS) Recreation & Paik Director Joe Woods presented the staff report. Councilmember Nancy Johnson brought this item forward as an agenda item. She has had extensive conversations with the Garden Club and the 4H Garden Club and they both fully understand that this could be a temporary thine. She is in favor of something simple and likes Park option Y1. Both the Garden Club and the 4H will be looking for donations of trees. they ® would be doing the planting and they would also like to have a flower garden. Councilmember Smukler is definitely in support of the project, with the understanding that it could be temporary. He feels the corner would benefit from having a park there. He also likes the direction the Garden Club is going in and feels we should defer to them for park concepts as they will be adopting it. He made a couple of plant location suggestions based on solar orientation. He has also talked to the Tree Committee who is willing to volunteer to help with the installation efforts. Councilmember Christine Johnson thinks it's great to have collaboration which she feels is what makes these efforts successful. She wanted to make sure we had a good plan for garbage and recycling. She is looking forward to the "naming" of the park. MOTION: Councilmember Nancy Johnson moved to proceed with the Community Pocket Park project with the Morro Bay Garden Club. the 4H Garden Club and the Public Arts Foundation to develop a plan with the Recreation & Parks Director and the Adopt a Park Program with the understanding that this could be a temporary situation. The motion was seconded by Councilmember Leage and carried unanimously 5-0. D-3 SELECTION OF TWO (2) PUBLIC WORKS ADVISORY BOARD MEMBERS: (ADMINISTRATION) City Manager Andrea Lueker requested that City Council vote to fill the 2 open seats on the Public Works Advisory Board with the following candidates: Deborah Owen. Stewart Skiff. 6 MINUTES - MORRO BAY CITY COUNCIL - FEBRUARY 26. 2013 Eliane Wilson and Janith Goldman. Each of the candidates originally interviewed back on Monday. January 29 ° and each candidate is still interested in fulfilling the role of Advisory ® Board member. Each Councilmember voted in the first round: Janith Goldman received 4 votes (Councilmembers Nancy Johnson, Leage, Christine Johnson and Mayor Irons) and Deborah Owen received 1 vote (Councilmember Smukler). Each Councilmember voted in the second round: Deborah Owen received 2 additional votes (Councilmembers Nancy Johnson and Leage). Stewart Skiff received two votes (Councilmembers Christine Johnson and Smukler) Eliane Wilson received I vote (Mayor Irons). Based on those results. Janith Goldman (4 votes) and Deborah Owen (3 votes) were selected to the Public Works Advisory Board. D-4 DISCUSSION AND DIRECTION .ON THE PROPOSAL TO UPDATE THE 2008 MANAGEMENT PARTNERS STUDY (ASSESSMENT OF CITY ORGANIZATION AND FINANCIAL OPTIONS): (ADMINISTRATION) City Manager Andrea Lueker presented the staff report. iviavor Irons brought this forward as he feels it's important to reassess ourselves from time to time. Councilmember Nancy Johnson discussed this with the City Manager and feels that staff could summarize a report on the status of these proposals without spending the money on Management Partners. With the budget as tight as it is, she finds it difficult to spend this kind of money when ® staff could do a majority of it. Feels that the best approach would be to go through each item individually. get status on each item and then go from there. Councilmember Smukler agrees with Councilmember Nancy Johnson even though he realizes that it would also be a good thing to get an unbiased outside firm to do the work. He finds himself wanting to start with an in-house analysis/review of the 38 recommendations as well as have staff bring forward any new ideas/options/initiatives: then have a discussion as to what Council would like to see pursued. Councilmember Leage agrees that doing this in-house first would be important, bring back a report and then go from there. Councilmember Christine Johnson agrees. We have many staff members still here and have much historical knowledge that could be helpful. She hoped we could do an in-house review this fiscal year and then potentially go out to RFP in the nest fiscal year. There was a lot of money and time spent on the Management Partner Study and there is still a lot of value we can get out of it. As far as the structure of how the status report would be prepared — a short update on each of the 38 items followed by future analysis that would lead to further discussion and direction. Mayor Irons realizes that while a majority of the Council is in favor of an update, they are also in favor of doing it in-house. If we proceed in-house, he feels it's important to craft exactly the ® kind of direction we want out of this, either open ended or brine back to Council for their review and direction. K MINUTES - MORRO BAY CITY COUNCIL - FEBRUARY 26, 2013 MOTION: Mayor Irons moved to update the Management Partners Study in-house. update the 38 recommendations as proposed with Department Head input, explore additional items and provide a report in April/May. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. D-5 DISCUSSION AND RECOMMENDATION ON PROPOSED REVISIONS TO THE COUNCIL POLICIES AND PROCEDURES; (CITY COUNCIL) Mayor Irons presented the staff report. He proposed these amendments to Council for their input, comment and approval. Council and staff went through the documents red -lined changes making comments and/or revisions. Citv Attorney Rob Schultz will be bringing the document back to the Consent Calendar along with a Resolution for adoption of changes to the next Council meeting. D-6 DISCUSSION ON THE STATUS OF THE CITY OF MORRO BAY AND CAYUCOS SANITARY DISTRICT WASTE WATER TREATMENT PLANT PROJECT AND REVIEW AND APPROVAL OF LETTERS TO STATE AND FEDERAL LEGISLATORS REGARDING SUPPORT AND FUNDING FOR THE PROJECT: (CITY COUNCIL) Mayor Irons hoped that Council would support forwarding this letter onto Cayucos requesting their participation as well. is The letter was accepted as is and there was Council majority to forward it onto Cayucos. MOTION: Mayor Irons moved to approve the letter as written. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. City Attorney Rob Schultz has set up a meeting to proceed with the appraisal of the Righetti property and we should have a document prepared in 45-60 days. Councilmember Nancy Johnson proposed that the City hire a hydrologist, paid for out of the water fund, to investigate possible sites for the plant to include formally dismissed sites and report back to Council with what our options are. Councilmember Smukler would like to see a refined project timeline brought back to the next meeting to include short-term. mid-term and long-term. He also feels it's important to talk about the timeline at the next Cayucos JPA meeting. He feels we should be clear on how they are going to compensate us for this work. Mayor Irons felt that the outline provided by staff was.a great start. He asked staff what direction is needed from Council in order to proceed. Public Services Director Rob Livick gave an overview of necessary steps that would prove helpful to proceed. MOTION: Mayor Irons moved to direct staff to bring back an RFP for a Project Manager, a selection process for the Selection Committee as well as a refined 8 MINUTES - ,MORRO BAY CITY COUNCIL - FEBRUARY 26. 2013 outline/timeline. The motion was seconded by Councilmember Nancy Johnson and carried unanimously 5-0. ® E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Christine Johnson requested staff look at creating a Vehicle Maintenance and Replacement Policy; Mayor Irons and Councilmember Smukler concurred. Councilmember Smukler requested City support of the Bike Park concept; Mayor Irons and Councilmember Nancv Johnson concurred. ADJOURNMENT The meeting adjourned at 10:50pm. Recorded bv: y4k��� Jamie Boucher City Clerk 11 4 MINUTES - MORRO BAY CITY COUNCIL - FEBRUARY 26, 2013 City of Morro Bay MoRRo BAY, CA 93442 (805)772-6205 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 Monday, February 25, 2013 at 3:30 p.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; 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 twenty three parcels. is • Property: Lease Site 27W; Vacant Water Lease Adjacent to Inn at Morro Bay Negotiating Parties: City of Morro Bay and Potential Lessees Negotiations: Lease Terms and Conditions • Property: Lease Site 49/49W; Vacant Lease Site, 431 Embarcadero Negotiating Parties: City of Morro Bay and Potential Lessees Negotiations: Lease Terms and Conditions • Property: Lease Site 107W-108W; Vacant Water Lease Site, 1155 Embarcadero Negotiating Parties: City of Morro Bay and Potential Lessees Negotiations: Lease Terms and Conditions • Property: Lease Site 138-139; Vacant Lease Site, 1253 Embarcadero Negotiating Parties: City of Morro Bay and Potential Lessees Negotiations: Lease Terms and Conditions • Property: Lease Site 30W-33W; Bay Front Marina, Water Lease Adjacent to 201 Main Street Negotiating Parties: J. Coakley and City of Morro Bay ® Negotiations: Lease Terms and Conditions • Property: Lease Site 34W; Water Lease Adjacent to 225 Main Negotiating Parties: R. Crizer and City of Morro Bay Negotiations: Lease Terms and Conditions • Property: Lease Site 35W-36W; Water Lease Adjacent to 235 Main Negotiating Parties: Cite of Morro Bay and Potential Lessees Negotiations: Lease Terms and Conditions • Property: Lease Site 37W; Morro Bay Marina, Inc., Water Lease Adjacent to 261 Main Negotiating Parties: Morro Bay Marina. Inc. and Cite of Morro Bay Negotiations: Lease Terms and Conditions • Property: Lease Site 62/62N4'; Kayak Horizons, 551 Embarcadero Negotiating Parties: D. Krueger and City of Morro Bay Negotiations: Lease Terms and Conditions • Property: Lease Site 63-64/63W-64W; Gray's Inn, 561 Embarcadero Negotiating Parties: J. Gray and City of Morro Ba% Negotiations: Lease Terms and Conditions • Property: Lease Site 65-66/65N1'-66NV; Salt Building, 571 Embarcadero Negotiating Parties: A. Imani and City of Morro Bay Negotiations: Lease Terms and Conditions • Property: Lease Site 67/67W; 575 Embarcadero Negotiating Parties: Viole Family LLC and Cite of Morro Bay ® Negotiations: Lease Terms and Conditions • Property: Lease Site 68/68R'; 591 Embarcadero Negotiating Parties: Smith and Hannah Held and City of Morro Bay . Negotiations: Lease Terms and Conditions • Property: Lease Site 69-70/69W-70W; Morro Bay Aquarium, 595 Embarcadero Negotiating Parties: D. Tyler and City of Morro Bay Negotiations: Lease Terms and Conditions • Property: Lease Site 102/102W and 105.1 W/105.2; Central Coast Seafoods Negotiating Parties: DeGarimore and City of Morro Bay Negotiations: Lease Terms and Conditions • Property: Lease Site 129W-131W; 1231 Embarcadero Negotiating Parties: MBFC Acquisition Corp and City of Morro Bay Negotiations: Lease Terms and Conditions • Property: Lease Site 78-81/78W-81W; Flying Dutchman, 701 Embarcadero Negotiating Parties: L. Van Beurden and City of Morro Bay Negotiations: Lease Terms and Conditions ® • Property: Lease Site 86/86NN'; Embarcadero Grill, 801 Embareadero Negotiating Parties: B. Caldwell and City of Morro Bay Negotiations: Lease Terms and Conditions • Property: Lease Site 87-88/87W-88W; Off the Hook, 833 Embarcadero ® Negotiating Parties: V. Leage and City of Morro Bav Negotiations: Lease Terms and Conditions • Property: Lease Site 96/96W; Rocca's, 945 Embarcadero Negotiating Parties: S. Van Beurden and City of Morro Bay Negotiations: Lease Terms and Conditions • Property: Lease Site 110W-112W; 1185 Embarcadero Negotiating Parties: George Leage (GAFCO) and City of Morro Bay Negotiations: Lease Terms and Conditions • Property: Lease Site 122-123/122W-123W; 1205 Embarcadero Negotiating Parties: Troy & Heather Leage (Harbor Hut) and Cite of Morro Bay Negotiations: Lease Terms and Conditions • Propero,: Lease Site 124-128/124W-128W & 113R'; 1215 Embarcadero Negotiating Parties: MMBS, LLC 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. DATED: February 22, 2013 41MV40- Ja ie Boucher. 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. El ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING FEBRUARY 13, 2013 CLOSED SESSION CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.8; PROPERTY TRANSACTIONS Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange; or lease of real property as to three parcels. ® • Property: Lease Site 93-95/93W-95W; 901 Embareadero Negotiating Parties: Smith & Hannah Held and Citv of Morro Bav Negotiations: Lease Terms and Conditions • Property: Lease Site 96/96W; 945 Embareadero Negotiating Parties: Stan VanBeurden and City of Morro Bay Negotiations: Lease Terms and Conditions • Property: Lease Site 129W-131W; 1231 Embareadero Negotiating Parties: MBFC Acquisition Corp and City of Morro Bay Negotiations: Lease Terms and Conditions • Property: 887 Atascadero Road Negotiating Parties: Clarice E. Righetti Trust and Cit_v of Morro Bay Negotiations: Voluntary Purchase and Sale IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 11 PUBLIC SESSION ® 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 COUNCILMENIBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishine to address the Council on Citv 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 CITY COUNCIL MINUTES FOR THE CITY COUNCIL MEETING - OF JANUARY 22, 2013; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 PRESENTATION BY THE MORRO BAY NATURAL HISTORY MUSEUM: ® (ADMLISTRATION) RECOMMENDATION: Receive presentation; no action is required. A-3 ADOPTION OF ORDINANCE NO. 582 REPEALING AND REPLACING MORRO ® BAY NfUNICIPAL CODE SECTIONS 5.28 AND 530 WITH NEW SECTION 530 RELATING TO VIDEO SERVICE PROVIDERS; (PUBLIC SERVICES) RECOMMENDATION: Adopt Ordinance 582. A-4 AUTHORIZATION TO FILE NOTICE OF COMPLETION FOR PROJECT NO. MB2011-S2: MORRO BAY LIFT STATION 92 REPLACEMENT; (PUBLIC SERVICES) RECOMMENDATION: File the Notice of Completion for Morro Bay Lift Station 92 Replacement Project. A-5 RESOLUTION NO. I1-I3 ACCEPTING S100.000 GRANT FROM THE STATE OF CALIFORNIA CITIZENS OPTION FOR PUBLIC SAFETY (COPS) PROGRAM; (POLICE) RECOMINIENDATION: Adopt Resolution No. 11-13. A-6 RESOLUTION 13-13 AMENDING THE CITY OF MORRO BAY ADVISORY BOARDS HANDBOOK AND BY-LAWS: (CITY ATTORNEY) RECOMMENDATION: Review the attached Advisory Board Handbook and By -Laws and approve Resolution 13-13. ® A-7 2012 TROLLEY SEASON SUMMARY; (PUBLIC SERVICES) RECOMMENDATION: Receive and file the 2012 Trolley season summary. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 PUBLIC INPUT ON 2013 CITY COUNCIL GOALS: (ADMINISTRATION) RECOMMENDATION: Open the public hearing and accept comment from the public on Goals for the City of Morro Bay. B-2 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM FUNDING RECOMMENDATIONS FOR 2013/2014 (PUBLIC SERVICES) RECONENIENBATION: Review and approve funding recommendations for the 2013 Community Development Block Grant (CDBG) program and approve adjustment of awards on a proportional basis upon final receipt of the 2013/2014 funding allocation from the Department of Housing and Urban Development (HUD). B-3 2012 ANNUAL WATER REPORT; (PUBLIC SERVICES) ® RECOMMENDATION: Adopt Resolution No. 12-13. 3 C. UNFNISHED BUSIESS ® C-1 ADOPTION OF RESOLUTION 14-13 RESTORING RESIDENTIAL IMPACT FEES TO THEIR PRE-OCTOBER 23, 2012 LEVEL AND DISCUSSION OF COMIVIERCIAL IMPACT FEES; (PUBLIC SERVICES) RECONINIENDATION: Adopt Resolution 14-13 rescinding Resolution 52-12 and restoring Residential Impact fees to their pre October 23, 2012 level, and provide additional direction regarding commercial impact fees. C-2 DISCUSSION ON POTENTIAL REZONE AND GENERAL PLAN AMENDMENT FOR THE M-1 AREA ALONG ATASCADERO ROAD SPECIFICALLY THE WASTEWATER FACILITY SITE AND SURROUNDNG AREA (PARCELS 066331032, 066331033. 066331034. 066331038. 066331039 (PORTION). 066332001. 066332001 066333002).- (PUBLIC SERVICES) RECOMiNIEN"DATION: Review information and provide direction to staff. C-3 DISCUSSION AND RECOMMENDATION ON THE SELECTION PROCESS FOR VOLUNTEER COMMUNITY SERVICES COORDINATOR; (CITY COUNCIL) RECOMMENDATION: Review the staff report, the previous staff report from August 14, 2012, approve the job description and determine a selection process for the Volunteer Community Services Coordinator. D. NEW BUSINESS D-1 APPROVAL OF MOU BETWEEN THE ESTERO BAY COMMUNITY POOL FOUNDATION. SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT AND CITY OF MORRO BAY REGARDING THE ESTERO BAY COMMUNITY POOL PROJECT ' ; (RECREATION & PARKS) RECOMMENDATION: Approval of the NIOU as proposed. D-2 DISCUSSION ON THE STATUS OF THE CITY OF MORRO BAY AND CAYUCOS SANITARY DISTRICT WASTE WATER TREATMENT PLANT PROJECT AND APPROVAL FOR CITY TO SEND LETTERS TO STATE AND FEDERAL LEGISLATORS REGARDING SUPPORT AND FUNDING FOR THE PROJECT: (CITY COUNCIL) RECOMMENDATION: Discuss and authorize the City to send letters regarding support and funding for the project. E. DECLARATION OF FUTURE AGENDA ITEMS ® F. ADJOURNMENT 4 THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME - SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 7 72-6205 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 \J MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 13, 2013 VETERAN'S MEMORIAL HALL — 6:00P.M. Mayor Irons called the meeting to order at 6:00 p.m. PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Lease Noah Smukler STAFF: Andrea Lueker Robert Schultz Jamie Boucher Rob Livick Amv Christey Steve Knuckles Eric Endersby Susan Slayton Joe Woods Kathleen Wold Cindy Jacinth AGENDA NO: A-1 MEETING DATE: 2/26/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager Citv Attomev City Clerk Public Services Director Police Chief Interim Fire Chief Harbor Director Administrative Services Director Recreation & Parks Director Planning Manaeer Assistant Planner ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS. AIN iOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT — City Attorney Robert Shultz reported that City Council met in Closed Session and no reportable action under the Brown Act was taken on the following items: Lease Site 93-95/93W-95W. 901 Embarcadero: Lease Site 96/96W. 945 Embarcadero: and. Lease Site 129W-131 W, 1231 Embarcadero. Regarding Closed Session Item 887 Atascadero Road. Council authorized staff to obtain an appraisal of the property. PUBLIC COMMENT Robert Davis; President of Morro Bay Friends of the Library discussed their upcoming remodel of the library. He also advertised that they will be speaking at the Chamber Business Forum on February 215t at 9am at the Embarcadero Grill. Violette Nava. Hattie Taylor, Marisa Dinsmoor. and Maia Burton. all members of Del Mar's Student Council presented a report of what's going on at Del Mar Elementary School. They are ® participating in a school service project helping Woods Humane Society_ they are celebrating Read Across America Day on March Is` where they can dress as their favorite storybook character: and. thev are raising monies thru recvcling efforts. Karen Crolev announced the Morro Bay Community_ Pool Foundation's fundraising event. "Cavucos Cellars Zinfandel Partv 99" being held on Saturday. March 16'h. The event will ® feature entertainment, an auction and a Hawaiian buffet dinner. Valerie Seymour expressed her support of the pool's MOU that is being voted on tonight. This has been a collaborative effort with huge commitments being made by all three of the organizations. She feels though that the MOU is vague and instead w6uld like to see the involved groups' commitment to Ws of dollars they are willing to commit to. Pat Starkey, the Community Outreach Person for the pool project, also spoke on behalf of the Morro Bay Community Pool Foundation and their efforts to build a pool locally. Silvio DiSantis spoke as a new member of the Pool Foundation. He has spoken with many local businesses and most are really enthused about the group's commitment to getting a pool established in Morro Bay. Karen Crolev also spoke on behalf of the City's Recreation & Parks Commission stating that they are in full support of the MOU. Mandy Davis continues to be pleased with the City's stance on the issue of acoustic seismic testing. In Coast Alliance's work, they came across information that PG&E has been doing acoustic seismic testing which they called LESS (low energy seismic study). This is of great concern as the decibel level of the testing is at 220 decibels or more. The Alliance has requested the permits that allowed for this but have vet to receive them. ® BarrBrannon spoke on an item he feels will be coming before Council in the future; the abandonment of a piece of property which has been approved at the Planning Commission level. He feels it is the City's responsibility and primary goal to uphold and maintain the Local Coastal Plan which he feels this abandonment doesn't do. Bill Martonv_ also spoke on the abandonment of the property which is located on the west side of Highway 1. The City owed piece of property is 15,000 square feet and Mr. Martony feels that there are better uses of this property; City land should be used for the good of all. Bill Shirkev spoke on the adoption of Resolution 14-13, restoring residential impact fees to their pre -October 23. 2012 levels. His concern is with the grandfathering language as he has a current project in the pipeline. He has submitted plans and made payments in September 2012 and January 2013. And as of today, he submitted complete plans and paid for his permit. He is hopeful Council will take fair consideration in performing due diligence in grandfathering in his and other applications. Phil Kemo also spoke in support of the Pool's NIOU. This is a coastal community who should have a thriving swim culture. Elias Nimeh spoke as the Executive Director of the County Senior Nutrition Program. This program serves 200 seniors in the Morro Bay area, most of those free of charge. The meal ® program is important to seniors as it extends their good health as well as extends their 2 MLNUTES - MORRO BAY CITY COUNCIL - FEBRUARY 13, 2013 opportunities for independent living. They need every communities' help to keep this important lifesaving program going and urged Council's support. ®' Lynda Merrill spoke in support of Item C-2 (Discussion on Potential Rezone and General Plan Amendment for the M-1 area along Atascadero Road Specifically the Wastewater Facility Site and Surrounding Area) and Item D-2 (Discussion on the Status of the City of Morro Bay and Cayucos Sanitary District Waste Water Treatment Plant Project and Approval for City to Send Letters to State and Federal Legislators Regarding Support and Funding for the Project). She also hoped that at the conclusion of the goal setting workshop, there would be a report about what is being considered, in what order things might be taken care of and what we can and what we can't do. Carla Wixom addressed the Closed Session Property Transaction Item: Property: 887 Atascadero Road, Negotiating Parties: Clarice E. Righetti Trust and Citv of Morro Bay._ Negotiations: Voluntary Purchase and Sale. She spoke of the Coastal Commissions site visit and it was her understanding that they felt that this was an inferior site. Other issues present on the site include: it is outside of the City limits and would require rezoning by the County, it is prime ag grazing land: it floods every year; it is a large archeological site; the Cambria earthquake fault runs through it: it interferes with coastal ranges and is a view shed: and. it abuts approximately 50 Nforro Bay homes. There would be visual impacts on the street and to the neighbors. She urged Council that before you spend S2 million of rate pavers' dollars, to reconsider this location. Mayor Irons closed the public comment period. ® 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 CITY COUNCIL MINUTES FOR THE CITY COUNCIL MEETNG OF JANUARY 22, 2013: (ADMINISTRATION) RECONINIENDATION: Approve as submitted. A-2 PRESENTATION BY THE MORRO BAY NATURAL' HISTORY MUSEUM: (ADMINISTRATION) RECONLNIENDATION: Receive presentation; no action is required. A-3 ADOPTION OF ORDNANCE NO. 582 REPEALING AND REPLACING MORRO BAY MUNICIPAL CODE SECTIONS 5.28 AND 5.30 WITH NEW SECTION 5.30 RELATING TO VIDEO SERVICE PROVIDERS: (PUBLIC SERVICES) RECONINIENDATION: Adopt Ordinance 582. A-4 AUTHORIZATION TO FILE NOTICE OF COMPLETION FOR PROJECT NO. �fB2011-S2: MORRO BAY LIFT STATION #2 REPLACEMENT: (PUBLIC ® SERVICES) 3 MINUTES - MORRO BAY CITY COUNCIL - FEBRUARY 13, 2013 RECONYID4ENDATION: File the Notice of Completion for Morro Bay Lift Station 92 Replacement Project. ® A-5 RESOLUTION NO. I1-13 ACCEPTING S100,000 GRANT FROM THE STATE OF CALIFORNIA CITIZENS OPTION FOR PUBLIC SAFETY (COPS) PROGRAYI; (POLICE) RECOVIiNIENDATION: Adopt Resolution No. 11-13. A-6 RESOLUTION 13-13 AMENDING THE CITY OF MORRO BAY ADVISORY BOARDS HANDBOOK AND BY-LAWS; (CITY ATTORNEY) RECOMMENDATION: Review the attached Advisory Board Handbook and By -Laws and approve Resolution 13-13. A-7 2012 TROLLEY SEASON SUNCV1ARY: (PUBLIC SERVICES) RECONE IENDATION: Receive and file the 2012 Trolley season summary. Item A-2. Presentation by the Morro Bay Natural History Museum was not made. Councilmember Smukler pulled Item A-6 from the Consent Calendar. MOTION: Councilmember Christine Johnson moved the City Council approve Items ® A-1. A-3. A-4. A-5, and A-7 of the Consent Calendar as presented. The motion was seconded by Councilmember Nancy Johnson and carried unanimously 5-0. E A-6 RESOLUTION 13-11 AIvtENDING THE CITY OF MORRO BAY ADVISORY BOARDS HANDBOOK AND BY-LAWS; (CITY ATTORNEY) Councilmember Smukler pulled this item for public information as he wanted to point out that the Public Works Advisory Board would be increasing its members from 5 to 7. He also requested information on the Planning Commission's meeting schedule change. He feels it's important to continue to have that Commission meet bimonthly. MOTION: Councilmember Nancy Johnson moved for approval of Item A-6, adoption of Resolution 13-L3 as presented. The motion was seconded by Councilmember Leage and failed 2-3 with Ylayor Irons and Councilmembers Christine Johnson and Smukler voting no. MOTION: Councilmember Smukler moved for approval of Resolution L -L ; the Advisory Board Bylaws as presented with the exception of the section of the Planning Commission's Procedures: remove "... held monthly..." and replace with "... held twice a month...". The motion was seconded by Councilmember Christine Johnson and carried 3-2 with Councilmembers Nancy Johnson and Leage voting no. a] MINUTES - MORRO BAY CITY COUNCIL - FEBRUARY 13, 2013 B. PUBLIC HEARINGS. REPORTS & APPEARANCES ® B-1 PUBLIC INPUT ON 2013 CITY COUNCIL GOALS; (ADM INI NTRATIO\9 Citv Manager Andrea Lueker announced the first of two opportunities for the public to address Council on goals for the upcoming year. Mayor Irons opened the Public Hearing for public comments. Bill Martonv felt that it was important for tourism and locals alike for the parking lot at Morro Rock to be more aesthetic and user friendly — possibly landscaped and have stairs down to the beach. Dorothy Cutter requested the Council look at the Granny Unit Law/Secondary Units. Karin doss hoped . that Council continues making tourism marketing a major goal of the community. She reminded Council that Morro Bav tourism is a primary source of our revenue and income. Kathleen Karle hoped Council would consider a City Tobacco Retail Licensing Ordinance which would allow for consistent compliance as well as it is the best strategy for reducing sales of tobacco to underage minors. Melissa Peters concurred with Kathleen Karle. ® Aaron Ochs feels we should be offering incentives to bring in more and more diverse entertainment/music/events to Morro Bay. After speaking with many business owners, he found that it takes 5-7 years to construct and get businesses operational in Morro Bay and many get frustrated with that — his hope is that we could make this more streamlined (process and codes). We need to grow Morro Bav organically. Barry Brannon feels a big issue is how we look to tourists. Highway One in North Morro Bav is very unattractive as the dead trees that Cal Trans cut are still there. He feels we should reinstate Code Enforcement as that will make our City look better. Silvio DiSantis also feels that Highway One could look much better. If we replaced the chain linked fence with a better quality and more aesthetic looking fencing. that would enhance our look. Mayor Irons closed the Public Hearing. B-2 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM FUNDING RECOMMENDATIONS FOR 2013/2014 (PUBLIC SERVICES) Assistant Planner Cindy Jacinth presented the staff report. ® Mayor Irons opened the Public Hearing for public comments. 5 MINUTES - MORRO BAY CITY COUNCIL - FEBRUARY 13. 2013 Elias Nimeh reiterated his program's need for community and public funds in order for their program to continue. He also said he is available for questions if there were any. ® Mayor Irons closed the Public Hearing. MOTION: Councilmember Nancy Johnson moved approval of B-2 as submitted. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. B-3 2012 ANNUAL WATER REPORT; (PUBLIC SERVICES) Planning Manager Kathleen Wold presented the staff report. Mayor Irons opened the Public Hearing for public comments. BarrBrannon stated that we haven't had anv rain which will affect our water supply. He also said that starting this year, there will be cutbacks, to our state water supply delivery. This is the time to talk about water. Mayor Irons closed the Public Hearing. Councilmember Smukler stated that while we are stable right now, we are just a drought away from trouble. MOTION: Councilmember Smukler moved for approval of the 2012 Annual Water ® Report. The motion was seconded by Councilmember Nancy Johnson and carried unanimously 5-0. C. UNFINISHED BUSINESS C-1 ADOPTION OF RESOLUTION 14-13 RESTORING RESIDENTIAL IMPACT FEES TO THEIR PRE-OCTOBER 23, 2012 LEVEL AND DISCUSSION OF COMMERCIAL IMPACT FEES: (PUBLIC SERVICES) Public Services Director Rob Livick presented the staff report. Mayor Irons requested that this item be looked at in two parts — residential and commercial. Councilmember Smukler affirmed his support for the definition of "in the pipeline". MOTION: Mavor Irons moved approval of Resolution 14-13 restoring residential impact fees to their pre -October 23. 2012 levels. The motion was seconded by Councilmember Smukler and passed 3-2 with Councilmembers Nancy Johnson and Leaee voting no. Councilmember Nancv Johnson agrees with information that Citv Attornev Rob Schultz shared and suggests making the commercial impact fee waivers City-wide until July 2014. She did find ® out that we currently don't have an agreement with Rabobank for the loan program. She is also no MINUTES - NIORRO BAY CITY COUNCIL - FEBRUARY 13, 2013 in favor of workine with the Economic Development Director letting business property owners. manyofwhom don't live in Morro Bay, know that this program exists. In the long run, this will ® prove to be valuable as the ,increased income from better looking business properties will improve our City's sales tar revenues. Councilmember Christine Johnson wanted to focus this on the Old Town area but understands that without an AB1600 Impact Fee Study; we can't. She would like to see the Chamber. through their Economic Development program, flesh out what it is that would be the kinds of projects Morro Bay needs, and then incentivize those to come. She said that the Chamber is gettine ready to send a survev to the entire Morro Bay community to see what kinds of businesses we are lacking. She thinks we should wait until the results of that study are known. giving us more knowledge and a better plan; before looking at the potential of moving forward with waiving anv commercial impact fees. Councilmember Leage would like to see the commercial impact fee waiver that is currently in place continue through July 2014. We need to try and stimulate work. He doesn't feel a lot of people received the initial information. Councilmember Smukler continues to feel that the City's infrastructure is the first priority. He is willing to have future discussion about what a program could look like but at this point we need to start at square I as opposed to backing into square 1. He would like to see us move forward without the impact fee reductions. Mayor Irons wants to spur on economic development revitalize our downtown. We also have a ® Parking -in -Lieu Fee Resolution about to expire. Economic Development should be something we set as one of our goals. For our commercial areas to see the benefit of impact fee reductions; he feels we need to do something more robust, not just through 2014. Considering the amount of time it takes to bring forward a project to construction, we need to set economic development as a goal specific to our commercial sector. If we want to make incentives for commercial growth, it needs to be done bevond 2014 and it needs to be restructured into an entire economic development plan that will include much more than just impact fee reductions. E Councilmember Christine Johnson stated that it is the Council's responsibility to find balance in promoting commercial development and ensuring we have a strong future with our infrastructure needs. With a new focus and direction. Council hopes to have a full court press on how to help the entire City. MOTION: Councilmember Smukler moved to reestablish the commercial impact fees to the 2007 level. The motion was seconded by Councilmember Christine Johnson and carried 3-2 with Councilmembers Nancv Johnson and Leaee voting no. C-2 DISCUSSION ON POTENTIAL REZONE AND GENERAL PLAN AIMENI)NIENT FOR THE M-1 AREA ALONG ATASCADERO ROAD SPECIFICALLY THE WASTEWATER FACILITY SITE AND SURROUNDNG AREA (PARCELS 066331032. 066331033. 066331034, 066331038. 066331039 (PORTION), 066332001. 066332002. 066333002); (PUBLIC SERVICES) 7 MINUTES - MORRO BAY CITY COUNCIL- FEBRUARY 13, 2013 Public Services Director Rob Livick pointed out in the analysis of the various parcels surrounding the area, we inadvertently attributed ownership of some of the parcels to the City of Morro Bay and instead should be designated as jointly owned property with the City and Cayucos. Planning Manager Kathleen Wold presented the staff report. Councilmember Smukler feels that with the treatment plant being moved, this is a good time to be looking at this. Also; with the construction of the bridge over the creek happening soon. the potential.for this land is big as it is being severely underutilized. This is the only City owned beachfront property. Now is the time to start planning more aggressively for our long term vision for Morro Bay. Councilmember Nancy Johnson is opposed to doing a single re -zoning. The City's LCP has to be updated, the maps are outdated and incomplete, and the General Plan has to be updated. This is in direct conflict to long term planning — we are just taking one small section of town. She also wondered how people's businesses were going to be affected by this. The Citv needs an industrial zone for its economic base. Finally, she wondered when construction of the bridge over the creek will begin. Public Services Director Livick stated that we were waiting for a signed agreement from Cal Trans so that we can begin the planning and design process for the bridge; the construction dollars are planned to come in the year 14/1 5. ® Councilmember Christine Johnson believes this falls into our overall plan for the City. The area hadn't been on the table for discussion as it had a different use. As a side benefit, we will get a map update. The number one reason people come to California is the beaches and that's what we have here: and this would be a good time to discuss what else could be there in the future. Councilmember George Leage stated that the high school is there. how are we going to make this a thru-way down there? There will be a lot of added congestion. He also wondered that if we can't find a place for the wastewater treatment plant and it has to come back — would the area have to be rezoned again? Mavor Irons agreed that the City has a lot on its plate and doesn't want to see something like this distracting us from getting the General Plan and LCP completed. At the same time, having discussions and moving forward on this wouldn't mean that it is going to take precedent as we still have to go through the goal setting process. A majority of Council felt it important to move forward in gathering information on costs, realizing that through goal setting, this may or may not take precedent. Staff was directed to gather information with consultants through an RFP process — get proposals on more refined costs for environmental review, costs to prepare maps, etc... Once the goal setting occurs, it will be determined where this falls in with the priorities. This information needs to be provided by March U. 201 C-3 DISCUSSION AND RECOMMENDATION ON THE SELECTION PROCESS FOR is VOLUNTEER COMMUNITY SERVICES COORDINATOR; (CITY COUNCIL) 8 MINUTES - MORRO BAY CITY COUNCIL- FEBRUARY 13. 2013 Citv Manager Andrea Lueker presented the staff report. She recommended that an adjustment be ® made to the job description in the "housing" of the volunteer position. She suggested that the phrase "...located at the Senior Citizen's Inc...." be replaced with"... located in a City facility..." Councilmember Nancy Johnson has been working on this for quite some time and would be in favor of moving forward in the process and begin the advertising process. Councilmember Smukler is glad to see this item back and is support of moving forward. He felt there were kev items that he would like to see added to the job description in order for it to function more efficiently: a phone number. voice mail account, physical computer; email account. business cards. and miscellaneous office supplies. He would see those being added to the section that stated: "... and physically located at a City facility and would likely be supplied with the following resources: (above)". Councilmember Nancy Johnson felt it important that this person be allowed the use of a City vehicle. She also felt it important to advertise the position; she would like to see the most qualified person receive this position. Councilmember Christine Johnson has been very inspired by the work of the EBAC — Estero Bay Alliance for Care. Councilmember Leaee felt this is a wonderful thing that is being done. ® Mayor Irons asked if there had been anv consideration as to the length of time for the person's commitment to the position — I year then reapply or what kind of timeframe. Councilmember Johnson felt that there should and could be a quarterly report given and likes the potential of a 2 year commitment. MOTION: Councilmember Nancy Johnson moved approval of the job description with the amendment of physical location to read "City facility" and approve the selection process. The motion was seconded by Mayor Irons and carried unanimously 5-0. D. NEW BUSINESS D-1 APPROVAL OF VIOU BETWEEN THE ESTERO BAY COViVIUNITY POOL FOUNDATION. SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT AND CITY OF MORRO BAY REGARDNG THE ESTERO BAY_ COMMUNITY POOL PROJECT (RECREATION & PARKS) Recreation & Parks Director Joe Woods presented the staff report. Councilmember Nancy Johnson is totally and completely in favor of this MOU. She did question the lack of % monetary commitment from the various organizations though. 9 MINUTES - MORRO BAY CITY COUNCIL - FEBRUARY 13. 2013 Councilmember Smukler is also very excited we are moving forward with this. He wasn't aware that the Countv was no longer interested: he contacted Supervisor Gibson's office and he said ® they felt there was some potential interest. Also; given the cost of energy, he challenged the project to the highest standards of energy efficiency. Mavor Irons directed Director Woods to contact the County and report back to Council with an update on how that dialogue is proceeding. MOTION: Councilmember Christine Johnson moved approval of Item D-L Approval of MOU between the Estero Bay Community Pool Foundation. San Luis Coastal Unified School District and the Citv of Morro Bay regarding the Estero Bay Community Pool Project. The motion was seconded by Councilmember Smukler and carried unanimously >-0. D-2 DISCUSSION ON THE STATUS OF THE CITY OF MORRO BAY AND CAYUCOS SANITARY DISTRICT WASTE WATER TREATMENT PLANT PROJECT AND APPROVAL FOR CITY TO SEND LETTERS TO STATE AND FEDERAL LEGISLATORS REGARDING SUPPORT AND FUNDING FOR THE PROJECT:_ (CITY COUNCIL) Mayor Irons presented a brief oral report requesting consensus of Council to reach out to State and Federal constituents by sending letters asking for support and to put on their radar screen that we are looking for funding potentials. Councilmember Nancv Johnson feels we are being premature as we haven't met with Cawcos is yet. She doesn't feel we can send out letters without a project manager and without the status of our joint agreement. CA Councilmember Leage also feels the need to see what Cawcos has in mind. Councilmember Christine Johnson is looking forward to meeting with our JPA partners. If we are looking for sources of funding then it is in the best interest of the rate payers in both communities to find funding sooner than later. Councilmember Smukler stated that it is never too soon to reach out. We are moving forward with building a new wastewater treatment plant and looks forward to any help that they could bring. He also hopes that we will continue to have a placeholder on the agenda to talk about wastewater treatment plant project issues. Councilmember Nancv Johnson thanked Mr. Enns for staving through this meeting. She reiterated that we don't have a project yet: we don't know what Cawcos is going to do until tomorrow: and it can't hurt to wait one more day to formulate letters. Mayor Irons stated that the remarks regarding Cayucos are well founded. He is in support of drafting these letters to be brought back in 2 weeks requesting help and funding support. The sooner the letters get sent out, the quicker we get on their radar screens. 10 D4LNUTES - MORRO BAY CITY COUNCIL - FEBRUARY 13. 2013 There was no motion taken on this item: draft letters are to be'brou2ht back in 2 weeks to the nest meeting. E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Christine Johnson requested a report summarizing the outcome of the Street Summit: Mavor Irons and Councilmember Smukler concurred. Councilmember Smukler requested a review of what a Volunteer Budget Review Committee would look like: Mayor Irons and Councilmembers Christine Johnson and Leage concurred. Councilmember Smukler requested an update on LESS (Low Energy Seismic Study): Councilmembers Christine Johnson and Lea2e concurred. ADJOURiNIMENT The meeting adjourned at 9:50pm. Recorded by: �G� J ie Boucher Citv Clerk E E MINUTES- MORRO BAY CITY COUNCIL - FEBRUARY 13. 2013 0 n U F City of Morro Bay Morro Bay, CA 93442 (805) 772-6205 REVISED NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Mono Bay City Council will be holding a Special Meeting on Tuesday, January 29, 2013 at 6:00 p.m. to be held at the Veterans' Memorial Building, 209 Surf Street, Morro Bay, California. • Interviews to fill vacancies on the Planning Commission, Recreation & Parks Commission, Harbor Advisory Board, Public Works Advisory Board, Tourism Business Improvement District Advisory Board and Citizen's Oversight Committee. • Reconsideration of the Dates for the City Council Goal Setting Workshop • Consideration of the Dates for the Special Closed Session Meeting on Real Property Negotiations Related to Harbor Lease Sites 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: January 28, 2013 Jami oucher, City Clerk ® FINANCE ADMINISTRATION 595 Harbor Street 595 Harbor Street HARBOR DEPT. 1275 Embarcadero Road CITY ATTORNEY 595 Harbor Street FIRE DEPT. PUBLIC SERVICES 715 Harbor Street 955 Shasta Avenue POLICE DEPT. RECREATION S PARKS 850 Alorro Bay Boulevard 1001 Kennedy NVay City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING JANUARY 22, 2013 CLOSED SESSION CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.8; PROPERTY TRANSACTIONS Instructing City's real property negotiator regarding the price and terms of payment for ® the purchase; sale. exchange. or lease of real property as to three parcels. • Property: Lease Site 30W-33W - Bay Front Marina Negotiating Parties: Coakley and City of Morro Bay Negotiations: Lease Terms and Conditions Property: 315 Main Street Negotiating Parties: Meisterlin and City of Morro Bay Negotiations: Lease Terms and Conditions Property: Vacant Lot/Corner of Coral/San Jacinto Negotiating Parties: Potential Buyers 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. PUBLIC SESSION ® 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 13) 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 cam 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 Citv 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 CITY COUNCIL MINUTES FOR THE SPECIAL CITY COUNCIL MEETING OF JANUARY 3. 2013 AND THE REGULAR MEETING OF JANUARY 8. 2013; (ADMNISTRATION) RECOMMENDATION: Approve as submitted. E A-2 RECONSIDERATION OF APPOINTMENT OF REPRESENTATIVES ON THE ® DISCRETIONARY BOARDS. COUNCIL LIAISON ASSIGNMENTS AND COUNCIL SUB -COMMITTEES; (CITY COUNCIL) RECOMMENDATION: Appoint Councilmember Christine Johnson to the Chamber of Commerce Economic Development Committee. A-3 APPROVAL OF RESOLUTION NO. 10-13 DIRECTING A TIMELNE FOR COMPLETION OF CAPITAL PROJECTS APPROVED BY THE CITY COUNCIL AND RESCINDING RESOLUTION NO. 45-12: (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 10-13. A-4 RESOLUTION NO. 09-L3 AUTHORIZNG SUBMISSION OF RURAL TRANSIT FUND GRANT APPLICATION: (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 09-13 A-5 PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY SUPPORTING THE START BY BELIEVING PUBLIC AWARENESS CAMPAIGN; (ADMINISTRATION) RECOMMENDATION: Present Proclamation. ® A-6 PRESENTATION BY THE NEP RECOMMENDATION: Receive presentation; no action is required. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I ORDNANCE NO. 582 INTRODUCTION AND FIRST READING — REPEALING AND REPLACING MORRO BAY MUNICIPAL CODE SECTIONS 5.28 AND 530 WITH NEW SECTION 530 RELATING TO VIDEO SERVICE PROVIDERS: (PUBLIC SERVICES) RECOMMENDATION: Accept public comment and then move for introduction and first reading of Ordinance 582. C. UNFNISHED BUSINESS - None D. NEW BUSINESS D-1 DISCUSSION AND REVIEW OF RESOLUTION NO. 45-11. "ESTABLISHING A THREE YEAR MORATORIUM FOR THE PAYMENT OF DEVELOPMENT IMPACT FEES FOR COMMERCIAL PROJECTS WITHIN A COMMERCIAL ZONE DISTRICT" AND RESOLUTION NO. 52-12. "ESTABLISHNG A REDUCTION FOR ® THE PAYMENT OF DEVELOPMENT IMPACT FEES FOR RESIDENTIAL PROJECTS".- (PUBLIC SERVICES) RECOMI IENDATION: Review Councils' past actions and provide direction to staff. 3 D-2 APPROVAL OF AGREEMENT BETWEEN THE CITY OF MORRO BAY AND THE ® MORRO BAY TOURISM BUREAU TO PROVIDE SERVICES TO THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT: (CITY ATTORNEY) RECOMMENDATION: Approve the Agreement attached hereto between the City of Morro Bay and the Morro Bay Tourism Bureau for the purpose of providing services for the Morro Bay Tourism Business Improvement District (MBTBID). D-3 APPROVAL OF AGREEMENT BETWEEN THE CITY AND THE MORRO BAY" TOURISM BUREAU TO FUND THE VISITOR CENTER: (CITY ATTORNEY) RECOMMENDATION: Approve the Agreement attached hereto between the City of Morro Bay and the Morro Bay Tourism Bureau to fund the Visitor Center. D-4 APPROVAL OF ASSIGNMENT OF CONTRACT WITH BARNETT COX & ASSOCIATES FOR ADVERTISING AND MARKETING SERVICES TO THE .MORRO BAY TOURISM BUREAU; (CITY ATTORNEY) RECOMMENDATION: Approve the attached Assignment to transfer the contract between the City of Morro Bay and Barnett Cos & Associates for Advertising and Marketing Services to the Morro Bay Tourism Bureau. D-5 DISCUSS THE JANUARY LOTH. 2011 CALIFORNIA COASTAL COMMISSION is HEARING AND DECISION ON THE CITY OF MORRO BAY AND CAYUCOS SANITARY DISTRICT WWTP APPLICATION. CURRENT WWTP NEEDS. REGULATION REQUIREMENTS, AND A FUTURE WWTP. AND PROVIDE DIRECTION TO STAFF ON THE ABOVE: (CITY COUNCIL) RECOMI IENDATION: Discuss the decision of the California Coastal Commission, our current WWTP needs and regulation requirements, and future WWTP as it relates to the City of Morro Bay and Cayucos and provide direction to staff. 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 772-6205 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 ® REGULAR MEETNG — JANUARY 22, 2013 VETERAN'S MEMORIAL HALL — 6:OOP.M. Mayor Irons called the meeting to order at 6:00 p.m. PRESENT: Jamie Irons Christine Johnson Nancv Johnson George Leage Noah Smukler STAFF: Andrea Lueker Robert Schultz Jamie Boucher Rob Livick Amy Christey Steve Knuckles Eric Endersby Susan Slayton Joe Woods AGENDA NO: A-1 MEETING DATE: 2/1312013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager Ciry Attorney City Clerk Public Services Director Police Chief Fire Captain Harbor Director Administrative Services Director Recreation & Parks Director ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL IVIENIBERS REPORTS_. ANNOUNCEMENTS & PRESENTATIONS Consent Calendar Item A-5 was pulled in order for Mayor Irons to present a Proclamation to Jane Pomeroy, a Crisis Services Specialist with the Sexual Assault Recovery & Prevention Center (SARP). Consent Calendar Item A-6 was pulled in order to hear a presentation from Adrienne Harris, Executive Director of the Morro Bay National Estuary Program. CLOSED SESSION REPORT — City Attorney Robert Shultz reported that City Council met in Closed Session and no reportable action under the Brown Act was taken. PUBLIC COMMENT Robert Davis spoke, referring to the letter submitted by the Morro Bay Citizen's Bike Committee detailing this year's requests made by the Committee. He highlighted a couple which include a new crosswalk at Atascadero Road/Main Street to include flashing lights in the pavement: and, removing the metal bollards found in the middle of the Bike Path at Cloisters and Main Street. is Susan Heineman expressed her concerned about the growing amount of "Jesus" graffiti/vandalism that has shown up at the Cloisters. the Harborwalk and the organic garden by Del Mar Park. She appealed to fellow citizens to take a moment and note the vandalism: she wants Morro Bav to be noted for its beauty, not its graffiti. ® John Fennacy thanked Council and the citizens of Morro Bay for a very successful Fire Department dedication. He also noted that the Friends of the Fire Department raised over S15,000 in the sales of bricks and stones. He wanted to recognize that Keith Taylor had been named Morro Bav's Citizen of the Year. He also advertised the Rotary Club of Morro Bay's upcoming Fundraiser. Evening with Heart being held on Saturday, February 9, 201 3: Richard Sadowsky feels that Morro Bav and Cavucos need to rewrite the JPA and that with the new project: a renegotiation of the agreement needs to take place. He also feels the City should require Cavucos to get an NPDES Permit for the disposal of sewage into the City limits. Ken Vesterfelt spoke advertising some upcoming Morro Bay events. April 20`s is the 3`d Annual Emergency Vehicle Car Show, May 4`" — 6'h is the 17ei Annual Cruisn' Morro Bav Car Show and August will bring over 100 Ford F100's to our City. He also spoke on Item D-1_(Discussion of current Residential and Commercial Impact Fee Waivers) hoping that the City_ doesn't kill them vet and hopes that we can extend the program(s) for another 6 months at least. Karin Moss. the new Director of Tourism publicized the Grand' Opening of the Visitor's Center being held on Thursday; February 7. 2013 from 4-7pm at 255 Morro Bay Blvd. She hopes to see everybody there. Jim Pauley spoke on the 2 big water tanks proposed for the Righetti property which will have ® huge visual impacts as it seems like thev will be built above the ridge line. He hopes that we will agendize a public hearing, notifying neighboring homes, to discuss this. Joan Solo, speaking on behalf of the ivLB TBID and the newly formed Tourism Bureau. stated that they fully support moving forward with the contracts as proposed in items D-2. D-3 and D-4. She feels that their rebranding and refocused efforts in marketing have really been paying off. Susan Stewart- the newly seated President of the Morro Bav Chamber of Commerce_. announced that Keith Taylor was named Morro Bav's Citizen of the Year. Wilmar Tognazzini was named the Citv's Living Treasure and Central Coast Music was named Business of the Year. She also spoke on Item D-1 stating that the original intent of the waiver was to boost the downtown business district as well as North Morro Bay. She asked Council to consider rather than eliminating the whole waiver, mavbe redirect it'a little bit: there could be value in taking more time to look into the positives and negatives. There could also be some additional outreach to current business owners who maybe haven't heard, we could use the Economic Development Program to develop additional outreach opportunities to these business and/or property owners. Roger Ewing spoke on Item D-1. He is opposed to a moratorium on impact fees as it's through these fees that the City helps finances its infrastructure. He doesn't recommend a blanket denial. instead when a commercial project is brought forth. look at each project to -see the potential long term benefit to the community. it may warrant some reduction in the impact fees. He also spoke on Item D-5 (WWTP Issues) stating that the CCC made their opinions quite clear and hopes that those in opposition to moving the plant, join in making what will be a very substantial and MINUTES - MORRO BAY CITY COUNCIL- JANUARY 22, 2013 unique WWTP. He stressed the need for the whole community to come together with this project. He also acknowledged, thanked and applauded Keith Taylor. ® BarrBrannon wondered that since we are looking at placing tanks at the Righetti site as well as possibly the WWTP, can we get a "two for' if we put both of them there. Bill Marton spoke on a parcel of land at Yerba Buena and Highway 1.which is being proposed for abandonment. He doesn't believe it should be abandoned as it still has value and can be used. The abandonment would go to the property owner next door and instead feels it should be, and can be, used for the public good. Linda Merrill would like to see the alternative WWTP site revisited. hire an ensineerins firm for design and if we can't set partners, we need to cam on alone. She also requested that all City Boards and Commission meet once a month. Mayor Irons closed the public comment period. 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 CITY COUNCIL MINUTES FOR THE SPECIAL CITY COUNCIL MEETNG OF JANUARY 3, 2013 AND THE REGULAR MEETING OF JANUARY 8. ® 2013; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RECONSIDERATION OF APPOINTMENT OF REPRESENTATIVES ON THE DISCRETIONARY BOARDS. COUNCIL LIAISON ASSIGNMENTS AND COUNCIL SUB -COMMITTEES; (CITY COUNCIL) REMNIMENDATION: Appoint Councilmember Christine Johnson to the Chamber of Commerce Economic Development Committee. A-3 APPROVAL OF RESOLUTION NO. 10-13 DIRECTING A TIMELNE FOR COMPLETION OF CAPITAL PROJECTS APPROVED BY THE CITY COUNCIL AND RESCINDING RESOLUTION NO. 45-12; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 10-13. A-4 RESOLUTION NO..09-L3 AUTHORIZNG SUBMISSION OF RURAL TRANSIT FUND GRANT APPLICATION; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 09-13 A-5 - PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF titORRO BAY SUPPORTING THE START BY BELIEVNG PUBLIC AWARENESS CAMPAIGN; Is (ADMINISTRATION) . 3 MINUTES - MORRO BAY CITY COUNCIL-JANUARY 22, 2013 RECOMMENDATION: Present Proclamation. ® A-6 PRESENTATION BY THE NEP RECOMMENDATION: Receive presentation; no action is required. Councilmember Christine Johnson pulled Item A-1 from the Consent Calendar. Councilmember Smukler pulled Item A-2 from the Consent Calendar. MOTION: Councilmember Nancy Johnson moved the City Council approve Items A- A-3. A-4, and A-5 of the Consent Calendar as presented. The motion was seconded by Mavor Irons and carried unanimously 5-0. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CITY COUNCIL MEETING OF JANUARY 3, 2013 AND THE REGULAR MEETING OF JANUARY 8. 2013: (ADMNISTRATION) Councilmember Christine Johnson pulled this item to point out edits to names. She had already spoken to the City Clerk and as the amendments covered the clarification of names only with no content chanees. the amendments were made. MOTION: Councilmember Christine Johnson moved for approval of Items A -la and ® A -lb with amendments as discussed. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. A-2 RECONSIDERATION OF APPOINTMENT OF REPRESENTATIVES ON THE DISCRETIONARY BOARDS. COUNCIL LIAISON ASSIGNMENTS AND COUNCIL SUB -COMMITTEES: (CITY COUNCIL) Councilmember Smukler pulled this item to let the public know that he will still be an active advocate to the Chambers Economic Development Committee: he also feels that the Committee will be stroneer with both Nancy and Christine on it. MOTION: Councilmember Smukler moved for approval of Item A-2 as presented. The motion was seconded by Councilmember Nancy Johnson and carried unanimously 5- 0. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 ORDNANCE NO. 582 INTRODUCTION AND FIRST READING — REPEALING AND REPLACING MORRO BAY MUNICIPAL, CODE SECTIONS 5.28 AND 5.30 WITH NEW SECTION 5.30 RELATNG TO VIDEO SERVICE PROVIDERS_: (PUBLIC SERVICES) Manasement Analyst Janeen Burlingame presented the staff report. 4 MINUTES - MORRO BAY CITY COUNCIL -JANUARY 22, 2013 Mayor Jamie Irons opened the Public Hearing for public comments; seeing none. Mayor Irons closed the Public Hearing. ® MOTION: Councilmember Smukler moved for introduction and first reading of Ordinance 582 repealing Morro Bay Municipal Code Sections 5.28 and 5.30, replacing them with new Section 5.30 relating to video service providers by number and title only. The motion was seconded by Councilmember Leage and carried unanimously 5-0. C. UNFINISHED BUSINESS - NONE D. NEW BUSINESS D-I DISCUSSION AND REVIEW OF RESOLUTION NO. 45-11. "ESTABLISHING A THREE YEAR MORATORIUM FOR THE PAYMENT OF DEVELOPMENT IMPACT FEES FOR COMMERCIAL PROJECTS WITHIN A COMMERCIAL ZONE DISTRICT" AND RESOLUTION NO. 52-12. "ESTABLISHING A REDUCTION FOR THE PAYMENT OF DEVELOPMENT IMPACT FEES FOR RESIDENTIAL PROJECTS"; (PUBLIC SERVICES) Public Services Director Rob Livick presented the staff report. Councilmember Nancv Johnson wants to ensure we have economic growth and doesn't feel that rescinding these fees will accomplish that. The reduction of commercial impact fees was brought to Council last year as part of a 3-pronged plan. Elimination of parking requirements on ® No Main for commercial properties that wanted to expand or change their business: fee waivers; and. low interest business improvement loans that would be guaranteed by the City. Based on that, she feels this should continue at least 6 months as it will take that long before we see what potential improvements may have been made to our sales and/or property tares. Most importantly. when this was originally proposed, it was geared towards the core of Morro Bay — Morro Bay Blvd. all of Main Street and Quintana. Somehow, the entire City was included: she would like to reestablish a concentration on the downtown. In order for this to work. we should be working with the Economic Development Committee to see what contributions they can make to our growth. This group can do additional outreach to business owners via letters, phone calls and follow-ups to encourage additional business. In terms of residential. we have seen some building but not a lot. The continued fee reduction would put more buildings on our property tax rolls as well askeep and/or put people to work. Councilmember Smukler wondered if it would be possible to review these projects on a case by case basis based on benefits to the community. He also has strong concerns with the residential rates as we have a lot of work to do with our public infrastructure: right now we are struggling and while there is some benefit in removing the impact fees to spur growth. there isn't a direct nexus to see that that is how you actually get growth to happen. He is inclined to remove the waiver to the residential side and return to the 2007 fee schedule which he doesn't feel will put an undue burden on the single family residential projects. He is also concerned about the commercial rates but sees there is a much stronger argument to see this continue. He would also like to look at adding a completion deadline requirement. r MINUTES - MORRO BAY CITY COUNCIL-JANUARY 22. 2013 Councilmember Leage is disappointed that people haven't taken advantage of what has been offered to date. He also doesn't feel that we have reached out enough. He would like to see these reductions go through to July, 2014; if not, at least 6 months to give it a try to stimulate 40 some construction business and put people back to work. Councilmember Christine Johnson sees this as 2 separate windows residential and commercial. She has a stronger sense of what could be possible with a completion deadline date on the commercial side as she feels we have opportunities for commercial development that could enhance our town. She would also like to establish zones that the impact fees could continue the way they are now with a completion date put in. She feels that 6 months is a short amount of time. if we are committed to expanding we should give ourselves more time. As far as the residential side, she has concerns with continuing on without charging the full 2007 rates. Mavor Irons tends to agree with bringing the residential impact fees back to where they were in 2007; we will still be on the low end throughout the Countv. As far as the commercial impact fees. he is willing to keep that fee structure waived is the current practice, but he'd like to discuss establishing zones and possibly time frames; he also agrees that 6 months is short. He also feels that our infrastructure is in need, especially street paving as confirmed through the recently held Street Summit and these impact fees can go a long way to paving the streets. He agrees that more outreach is very critical and maybe a letter to affected property owners should even come from Council. Councilmember Nancy_ Johnson agrees that these 2 discussions should be taken and voted on separately. And while there isn't a lot of residential building going on. she feels that the property ® tar increases would far outweigh the impact fees that might be collected and hopes to keep the current fee structure in place, at least while information is being collected on possible increases to sales and property taxes. Councilmember Smukler doesn't feel we would necessarily recoup our monies through property tax increases based on building and is still definitely opposed to continuing with the residential impact fee waiver program in any form. especially given the needs of our infrastructure. He is willing to go along with the commercial concepts and likes the idea of promotion work with the Economic Development Program. He is intrigued by zones but feels the concept would need to be vetted. He doesn't feel the water, wastewater and traffic fees should remain reduced but instead increased to the 2007 levels. He would also be willing to go to 1 year if we put the water, wastewater and transportation 2007 fees into play. MOTION: Councilmember Smukler moved we rescind Resolution 52-12 "Establishing a Reduction for the Payment of Development Impact Fees for Residential Projects" and return the fee structure to the 2007 levels. All completed applications that have been turned in prior to the adoption of the new resolution to be brought forth, qualify for the rates established by Resolution 52-12. The motion was seconded by Mayor Irons and carried 3-2 with Councilmembers Nancy Johnson and Leage voting no. Discussions continued focusing on commercial impact fees. rl MINUTES - MORRO BAY CITY COUNCIL-JANUARY 2212013 Councilmember Nancv Johnson feels either all fees should continue to be waived or none: reinstating the water, wastewater and traffic fees and waiving the rest don't help. She continues ® to feel strongly that all fees_ need to be waived. Councilmember Leage agrees that waiving all the fees through the original date of 2014 would be in everybody's best interest. Councilmember Christine Johnson feels that a year is more realistic to see if there is anv real impact especialh� given that we will be doing a public relations campaign. Councilmember Smukler still feels that charging the water. wastewater and traffic fees is important to the City's infrastructure. However. a zoning fee structure could focus the program to where we need it. Mavor Irons is leaning towards waiving all fees but wants to bring the concept of zones into the discussion. There was discussion on defined. zones in the City. Councilmember Nancy Johnson stated that the zones originally focused on were the Downtown area — (Morro Bay Blvd. Bernardo to its end) and Main Street (Pacific to Yerba Buena). Councilmember Christine Johnson wondered if zones had been established when the discussion took place regarding the sign ordinance. ® Councilmember Leage questioned the legality and fairness of charging properties located in some zones a fee and charging properties located in another zone with a different or no fee. It was brought up that this isn't an all-inclusive list and Councilmember Smukler suggested that we bring this back with more explanation of the legality of zones. MOTION: Mayor Irons moved to continue the commercial impact fee schedule as established by Resolution 45-11 pending information from the City Attorney on the legality of establishing zones for commercial impact fees or whether we would have to waive commercial impact fees in their entirety. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. D-2 APPROVAL OF AGREEMENT BETWEEN THE CITY OF MORRO BAY AND THE MORRO BAY TOURISM BUREAU TO PROVIDE SERVICES TO THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT- (CITY ATTORNEY) City Attorney Rob Schultz presented the staff report. Councilmember Smukler wanted to publicly recognize the amount of work that has gone into this. Mayor Irons hopes that in 6 months. we can incorporate performance standard language into the next contract. 7 MINUTES -MORRO BAY CITY COUNCIL-JANUARY 22, 2013 MOTION: Councilmember Nancv Johnson moved to approve the Agreement between the City and the Morro Bav Tourism Bureau to provide services to the Morro ® Bav Tourism Business Improvement District. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. D-3 APPROVAL OF AGREEMENT BETWEEN THE CITY AND THE MORRO BAY TOURISM BUREAU TO FUND THE VISITOR CENTER; (CITY ATTORNEY) City Attorney Rob Schultz presented the staff report stating that there was one correction to the dollar amounts found in the staff report as well as the Agreement. It should read; 'The maximum amount due and payable during the term of this contract is S51,245. City_ shall pay said amount to Bureau in monthly increments of S8540.83." MOTION: Councilmember Smukler moved to approve the Agreement between the Citv and the Morro Bav Tourism Bureau to fund the Visitors Center with the monetary amendments to page I of the Agreement as discussed. The motion was seconded by Councilmember Nancy Johnson and carried unanimously 5-0. D-4 APPROVAL OF ASSIGNMENT OF CONTRACT WITH BARNETT COY & ASSOCIATES FOR ADVERTISNG AND _kLARKETNG SERVICES TO THE MORRO BAY TOURISM BUREAU; (CITY ATTORNEY) Citv Attorney Rob Schultz presented the staff report. Councilmember Smukler feels this will maximize our tourism dollars. MOTION: Councilmember Christine Johnson moved to approve the assignment of the contract with Barnett Cox & Associates for advertising and marketing services to the Morro Bav Tourism Bureau. The motion was seconded b_v Nlavor Irons and carried unanimously 5-0. D-5 DISCUSS THE JANUARY LOTH. 2013 CALIFORNIA COASTAL COMMISSION HEARING AND DECISION ON THE CITY OF MORRO BAY AND CAYUCOS SANITARY DISTRICT WWTP APPLICATION. CURRENT WWTP NEEDS, REGULATION REQUIREMENTS, AND A FUTURE WWTP. AND PROVIDE DIRECTION TO STAFF ON THE ABOVE: (CITY COUNCIL) Mayor Irons presented the staff report stating that this is an opportunity following the Coastal Commission hearing to discuss this in open session. In an effort to keep moving forward. he wanted to discuss the current needs of our current WWTP. Public Services Director Rob Livick gave an overview of our application for the 401 h waiver process. He also gave an overview of the current plant and the need to be able to proceed with a capital project program for current and continued maintenance needs. Councilmember Leage feels this is JPA business and questions any discussion that has the ® potential of giving direction to staff. It doesn't seem right not to have Ca_yucos as a part of the discussion. 8 MINUTES -MORRO BAY CITY COUNCIL-JANUARY 22. 2013 Councilmember Smukler thinks it's good to have an item like this once a month to keep the ® public. informed about the progress. He also feels it's necessary to evaluate the update of the LCP and the General Plan which will look into the zoning of the industrial area surrounding the WWTP to see what's involved. He also feels that we should place an agenda item on the JPA regarding a preliminary discussion on possible scenarios. Councilmember Nancy Johnson feels that the LCP and General Plan need to take place but as a separate discussion item from the WWTP. She also feels we should not be moving forward unless we are in discussion with the JPA and we have an idea what their thoughts are. She feels it is imperative for Mayor Irons to sit down with Ca_wcos's Chair before setting any agenda items. Councilmember Leage feels it's going to be 10-12 years before we even see a new plant so it would best to get an idea about what to do and how to move forward with our current plant and develop a maintenance schedule. Mayor Irons agrees that we need to meet with our partners; Cayucos. But having this meeting allows us to have the discussion in an open format, allows for the community to become informed. and affords the people the opportunity to have public comment on the issue on a regular basis. Councilmember Christine Johnson stated that cost and a time line are on the minds of all residents in Morro Bav and Cayucos and that both issues need to be communicated to the public. She doesn't feel it helps the process by bringing up the situation occurring in Los Osos. they are a different situation. This item was a discussion item only and no action was taken. E. DECLARATION OF FUTURE AGENDA ITEMS - Councilmember Smukler requested a discussion of an LCP and General Plan Amendment Specific to the Industrial Zone at the Current WWTP Site; Councilmember Christine Johnson and Mayor Irons concurred. ADJOURNMENT The meeting adjourned at 10:13pm. Xrded bv:�' n Uz'2 ! _ Jamie Boucher City Clerk 11 M MINUTES - MORRO BAY CITY COUNCIL - JAN'UARY 22. 2013 ® 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 JAi\`UARY 8, 2013 CLOSED SESSION 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 CONTIDENTIAL AND EXEMPT FROM DISCLOSURE. PUBLIC SESSION VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., NIORRO 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. 11 A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council. the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CITY COUNCIL MEETING OF DECEMBER 10. 2012 AND THE REGULAR MEETING OF DECEMBER 11, 2012; (ADMINISTRATION) RECOtNIMENDATION: Approve as submitted. A-2 RESOLUTION NO. 03-13 ADOPTING THE VANTAGECARE RHS EMPLOYER INVESTMENT PROGRAM (EIP) FOR PRE -FUNDING OTHER POSTEMPLOYMENT BENEFITS (OPEB); (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution 03-13. A-3 RESOLUTION NO. 04-13 AUTHORIZING A CONTRACT AMENDMENT WITH ICivfA-RC TO ALLOW EMPLOYEE LOANS ON 457 DEFERRED COMPENSATION ACCOUNTS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 04-13. I ® A-4 AWARD OF CONTRACT TO SPECIALTY CONSTRUCTION. INC OF SAN LUIS OBISPO. CA FOR THE PROJECT NO. ivtB-2012-WI: 2012 CITY WATER TREATMENT PLANT IMPROVEMENTS; (PUBLIC SERVICES) RECOMMENDATION: Award the Project contract to Specialty Construction in the amount of S995,278. A-S RESOLUTION NO. 05-13 APPROVING AMENDMENT 43 TO THE LEASE AGREEMENT FOR LEASE SITE 50-51/50W-5]W LOCATED AT 451 ENIBARCADERO (WHIBLEY); (HARBOR) RECOMMENDATION: Adopt Resolution 05-13. A-6 RESOLUTION NO. 06-13 AMENDING THE SAN LUIS OBISPO TRANSIT AUTHORITY JOINT POWERS AGREEMENT; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution 06-13. A-7 A PROCLAMATION OF THE CITY OF MORRO BAY COMMENDING AND HONORING POLICE SERGEANT MANUAL A. SILVA ON HIS RETIREMENT: (ADMINISTRATION) RECOMMENDATION: Present Proclamation. ® A-8 A PROCLAMATION OF THE CITY OF MORRO BAY CONEVIENDNG AND HONORING FIRE CHIEF MICHAEL S. POND ON HIS RETIREMENT_: (ADMINISTRATION) RECOi11MENDATION:. Present Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES - None C. UNFINISHED BUSINESS - None D. NEW BUSINESS D-1 RESOLUTION NO. 01-13 ADOPTING THE CITY OF MORRO BAY INVESTMENT POLICY AND DELEGATING AUTHORITY TO THE CITY TREASURER TO INVEST IDLE FUNDS; (ADMINISTRATIVE SERVICES) RECOi`IMENDATION: Adopt Resolution 01-13. D-2 RESOLUTION NO. 02=13 AUTHORIZING THE EXAMINATION OF SALES OR TRANSACTIONS AND USE TAX RECORDS; (ADMINISTRATIVE SERVICES) ® RECOMMENDATION: Adopt Resolution 02-13. 3 D-3 DISCUSSION OF THE GOAL SETTING WORKSHOP PROCESS AND TIMELINE ® FOR 2013; (ADMINISTRATION) RECOMMENDATION: Contract with Don Maruska & Company to conduct the City's Goal Setting process for 2013. D-4 DISCUSSION AND REVIEW OF RESOLUTION NO. 45-11. "ESTABLISHNG A THREE YEAR MORATORIUM FOR THE PAYMENT OF DEVELOPMENT IMPACT FEES FOR COMMERCIAL PROJECTS WITHIN A COMMERCIAL ZONE DISTRICT" AND RESOLUTION NO. 52-12, "ESTABLISHNG A REDUCTION FOR THE PAYMENT OF DEVELOPMENT IMPACT FEES FOR RESIDENTIAL PROJECTS"- (PUBLIC SERVICES) RECOMMENDATION: Review, discuss and make recommendations as deemed necessary. D-5 CITY COUNCIL ANNUAL MEETING SCHEDULE - 201J; (ADMINISTRATION) RECOMMENDATION: Adopt the proposed meeting schedule for calendar year 2013. D-6 APPOINTMENT OF VICE -MAYOR AND APPOINTMENT OF REPRESENTATIVES ON DISCRETIONARY BOARDS. COUNCIL LIAISON ASSIGNIMENTS AND ® COUNCIL SUB -COMMITTEES (ADMINISTRATION) RECOMMENDATION: Appoint the Vice -Mayor as well as Representatives to serve on the various County or Regional Discretionary Boards, Council Liaison Assignments and Sub -Committees. E. DECLARATION OF FUTURE AGENDA ITEMS F. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENI)NIENT 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 772-6205 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 rIILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED ® SPECLA-L ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 4 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JANUARY 8, 2013 VETERAN'S MEMORIAL HALL — 6:00P.M. Mavor Irons called the meeting to order at 6:00 p.m. PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Leaee Noah Smukler STAFF: Andrea Lueker Robert Schultz Jamie Boucher Rob Livick Amy Christey Viike Pond Steve Knuckles Susan Slayton Joe Woods AGENDA NO: A -lb MEETING DATE: 1/22/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager City Attorney City Clerk Public Services Director Police Chief Fire Chief Fire Captain 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 Consent Calendar items A-7 and A-8 were pulled in order for Mayor Irons to present Proclamations to retiring City employees. Sergeant Manny Silva and Fire Chief Mike Pond. There was a request from Mayor Irons to hear a Special Emergency Item regarding a request from the Cayvcos Sanitary District to discuss the potential withdrawal of our Wastewater Treatment Plant Project application. This would take a 4/5 h vote to be heard. MOTION: Councilmember Nancy Johnson moved that Council add an item to the agenda to entertain discussions regarding the Cayucos Sanitary District's withdrawal of the Wastewater Treatment Plant project application. The motion was seconded by Councilmember Leaee and failed 3-2 with Councilmembers Christine Johnson and Smukler voting no. CLOSED SESSION REPORT — City Attorney Robert Shultz reported that City Council met in Closed Session and no reportable action under the Brown Act was taken. 11 PUBLIC COi /IMENT ® Rose Morrison. owner of New Asian Gourmet, presented the Morro Bay Business Report. Located at 430 Morro Bay Blvd, they serve Chinese. Thai and Japanese food. They use locally grown fresh vegetables. They are open Thursday — Sunday for lunch and dinner from I I30am- 8pm. She hopes people will visit them soon and give them a in,. Gam Johnson expressed his concern with where we are going with our wastewater treatment plant. He is confused with why the PERC plant was thought to be an option at the current site but that same site isn't an option for a new wastewater treatment plant. He is also concerned that the Coastal Commission's denial made the current site's property useless. He believed that Morro Bay should have joined with Cayucos and withdrawn the project. Marlys McPherson is the Chair of the Winter Bird Festival which begins on Friday. January 18'h and runs through Monday. January 215`. To date they have 504 people registered. most of them from out of the county. She also thanked the City for co -sponsoring the event. Marla Jo Bruton requested that Item A-4 be pulled (Award of Contract to Specialty Construction. Inc of San Luis Obispo. CA for the Project No. NIB-2012-WI: 2012 City Water Treatment Plant Improvements) so that it can be discussed. She feels that the City doesn't have a valid permit for the operation of the plant which leads to legal concerns that need to be addressed. Mandy Davis applauded the Council's decision they came to at their last meeting. She also encouraged Council to show up at the Coastal Commission hearing on Wednesday, January 9 h ® to speak on the PG&E Seismic project supporting the suspension of all seismic testing in the area. Betty Winholtz spoke on Item D-1 (Resolution No. 01-13 Adopting the City of Morro Bay Investment Policy and Delegating Authority to the City Treasurer to Invest Funds) and Item D-2 (Resolution No. 02-13 Authorizing the Examination of Sales or Transactions and Use Tax Records). Both items state that the Council will receive less financial information and receive it less frequently which she cautions against doing. She also spoke on Item D-3 (Discussion of the Goal Setting Workshop Process and Timeline for 2013). She is very strong believer of goal setting and encourages staff to look at facilitators that charge less. Brian Stacy spoke on the PG&E Seismic Surveys. He feels this entire process has been a failure - of government at all levels. The fisherman. the City. and businesses have all been deprived of mitigation measures. Barbara Doerr spoke on Item A-5 (Resolution No. 05-13 Approving Amendment 03 to the Lease Agreement for Lease Site 50-51/50W-51W located at 451 Embarcadero) wondering what the City benefit would be to approve this. She also feels the City is setting a bad precedent for future leases by allowing them to make this change. Cathv Novak thanked both Sergeant Manny Silva and Chief Mike Pond for all their years of service and for all they have done. 2 MINUTES-,MORRO BAY CITY COUNCIL -JANUARY S. 2013 Bob Doerr thanked the Fire Department for their quick response to a request for medical aid at the golf course that morning. ® Mayor Irons closed the public comment period. 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 CITY COUNCIL MINUTES FOR THE SPECIAL CITY COUNCIL MEETNG OF DECEMBER 10. 2012 AND THE REGULAR MEETNG OF DECEMBER I I, 2012: (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 03-13 ADOPTNG THE VANTAGECARE RHS EMPLOYER INVESTMENT PROGRAM (EIP) FOR PRE-FUNDNG OTHER POSTENIPLOYMENT BENEFITS (OPEB): (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution 03-13. A-3 RESOLUTION NO. 04-13 AUTHORIZING A CONTRACT AMENDMENT WITH ICNIA-RC TO ALLOW EMPLOYEE LOANS ON 457 DEFERRED COMPENSATION ACCOUNTS: (ADMINISTRATIVE SERVICES) ® RECOMMENDATION: adopt Resolution No. 04-13. A-4 AWARD OF CONTRACT TO SPECIALTY CONSTRUCTION. NC OF SAN LUIS OBISPO. CA FOR THE PROJECT NO. NIB-2012-WI: 2012 CITY WATER TREATMENT PLANT IMPROVEMENTS; (PUBLIC SERVICES) RECOMMENDATION: Award the Project contract to Specialty- Construction in the amount of S995,278. A-3 RESOLUTION NO. 05-13 APPROVNG AMENDMENT '3 TO THE LEASE AGREEMENT FOR LEASE SITE 50-51/50W-51 W LOCATED AT 451 EMBARCADERO (WTIIBLEY); (HARBOR) RECOMMENDATION: Adopt Resolution 05-13. A-6 RESOLUTION NO. 06-13 AMENDNG THE SAN LUIS OBISPO TRANSIT AUTHORITY JONT PORTERS AGREEMENT: (ADMINISTRATION) RECOMMENDATION: Adopt Resolution 06-13. A-7 A PROCLANLATION OF THE CITY OF MORRO BAY COMMENDING AND ® HONORNG POLICE SERGEANT MANUAL A. SILVA ON HIS RETIREMENT; (ADMINISTRATION) 3 MINUTES - MORRO BAY CITY COUNCIL-JANUARY 8. 2013 RECOMMENDATION: Present Proclamation. ® A-8 A PROCLAMATION OF THE CITY OF MORRO BAY COMMENDING AND HONORING FIRE CHIEF MICHAEL S. POND ON HIS RETIREMENT: (ADMINISTRATION) RECOMMENDATION: Present Proclamation. Councilmember Christine Johnson pulled Item A - la from the Consent Calendar. Councilmember Smukler pulled Items A-4 and A-5 from the Consent Calendar. MOTION: Councilmember Nancy Johnson moved the City Council approve Items A- 2. A-3, A-6, A-7 and A-8 of the Consent Calendar as presented. The motion was seconded by Councilmember Smukler and carried unanimously 5-0. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL CITY COUNCIL MEETING OF DECEMBER 10. 2012 AND THE REGULAR MEETING OF DECEMBER I L 2012: (ADMINISTRATION) Councilmember Christine Johnson pulled this item to point out 3 amendments to Item A -la. the December 11. 2012 minutes. She had already spoken to the City Clerk and as the amendments covered the clarification of names only with no content changes, the amendments were made. ® MOTION: Councilmember Christine Johnson moved for approval of Item A-1 and A- la with amendments as discussed. The motion was seconded by Mayor Irons and carried unanimously 5-0. A-4 AWARD OF CONTRACT TO SPECIALTY CONSTRUCTION. INC OF SAN LUIS OBISPO. CA FOR THE PROJECT NO. ivIB-2012-WI: 2012 CITY WATER TREATMENT PLANT IMPROVEMENTS: (PUBLIC SERVICES) Councilmember Smukler pulled this item to allow staff to elaborate on the questions raised by the public. Public Services Director Rob Livick provided an update on the plants permit status. MOTION: Councilmember Smukler moved for approval of Item A-4 as presented. The motion was seconded by Councilmember Christine Johnson and carried unanimously 5-0. A-5 RESOLUTION NO. 05-13 APPROVING AMENDMENT 43 TO THE LEASE AGREEMENT FOR LEASE SITE 50-51/50W-51 W LOCATED AT 451 ENIBARCADERO (WHIBLEY); (HARBOR) Councilmember Smukler pulled this item to allow staff to elaborate on the questions raised by the public. City Attorney Rob Schultz provided information regarding the lease site amendment INrequest. 4 MINUTES - MORRO BAY CITY COUNCIL-JANUARY S, 2013 MOTION: Councilmember Smukler moved for approval of Item A-5 as presented. The motion was seconded by Mayor Irons and carried unanimously 5-0. 0. B. PUBLIC HEARINGS. REPORTS & APPEARANCES - NONE C. UNFINISHED BUSINESS - NONE D. NEW BUSINESS - NONE D-I RESOLUTION NO. 01-13 ADOPTING THE CITY OF MORRO BAY INVESTMENT POLICY AND DELEGATING AUTHORITY TO THE CITY TREASURER TO INVEST IDLE FUNDS; (ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton presented her staff report. Both Councilmembers Nancv Johnson and Smukler asked if Ms. Slayton could bring the portfolio forward as part of the quarterly report. MOTION: Councilmember Smukler moved approval of Resolution 01-13, with the adjustment to the reporting component that the portfolio is presented to Council on a quarterly basis. The motion was seconded by Councilmember Nancy Johnson and carried unanimously. 5-0. D-2 RESOLUTION NO. 02-13 AUTHORIZING THE EXAIMNATION OF SALES OR ® TRANSACTIONS AND USE TAX RECORDS_ (ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton presented her staff report. Councilmember Nancv Johnson feels it's important for Council to continue to receive this information. She also noted that. the Council is used to receiving confidential information. She feels this information is important as we gauge and try to help out our local economic climate. Councilmember Smukler is comfortable with what is proposed as long as Council still receives the generalized category and/or geographical category information. Councilmember Leage agrees with Councilmember Nancv Johnson. There haven't been any problems in the past and sees no reason to make anv changes at this time. Mayor Irons doesn't see a need to have information for a specific business. He also understands the reasons for this action are to protect Council. Also. he believes there has to be a reason most cities don't do this. He is inclined to remove Councilmembers from the list. MOTION: Mayor Irons moved approval of Resolution No. 02-13 as presented. The motion was seconded by Councilmember Christine Johnson and carried 3-2 with Councilmembers Nancv Johnson and Leage voting no. ® D-3 DISCUSSION OF THE GOAL SETTING WORKSHOP PROCESS AND TIMELINE FOR 201 3; (ADMNISTRATION9 5 MINUTES - MORRO BAY CITY COUNCIL - JANUARY 8.2013 City Manager Andrea Lueker presented the staff report. Councilmember George Leage feels that the money spent last year didn't produce any results. He also feels this could be done in-house_. as an agendized item and could be facilitated by the Mavor. Councilmember Christine Johnson shares some of the same thoughts as Councilmember Lease and feels the process could be done in-house with our staff facilitating. She believes in a very strong goal setting process including a very strong public role. She also sees value to team building exercises and feels the money might be better spent on those activities. Councilmember Nancy Johnson agrees with Councilmember Lease but also feels that much was accomplished as a result of last years goal setting process. She thinks we could do it here at the Council level. She firmly believes that we should adhere to the $5,000 that was budgeted. She also feels that if we move forward with this process, we should postpone it for awhile as she feels it may take some time for this Council to come to consensus on issues. She also feels that the public participation component can be done as part of an agenda item at a City Council meeting. Councilmember Smukler is a big fan of the goal setting process. The results can send a clear message to staff prior to the budget process as the information discussed can help them in the preparation of their department budgets. Given the prices provided, he thinks that financially, we shouldn't go beyond the budgeted S5_000. He feels it would be important to have a neutral. ® outside person to facilitate the process. He also feels we can improve on the public comment and public participation component. Mayor Irons feels that a public goal setting workshop is important as it relates to community. Without setting goals_, how will Council and staff set anvthins done? He also feels it is best to have it facilitated by someone outside of staff as he feels a facilitator will help us get the most out of the process: and, they will be able to guide us through the workshops to help identify our goals outside of/ in addition to the wastewater treatment plant project. He too, would like to see us stay within the $5.000 budget. Other reasons for the need of a facilitator include: time constraints for all of Council and staff: and; the ability for a neutral part to put together the list of goals that everybody has had input on. Councilmember Christine Johnson is comfortable with contracting out if it's within the budget. She wondered if it would be possible to blend with in-house and outside facilitation. Councilmembers Nancy Johnson. Christine Johnson and Smukler are all willing to contract with Mr. Maruska if he is willing to work within the S3,000 budget. It was also felt that his experience with Morro Bay would be helpful. Councilmember Lease continued with the thought that Mayor Irons could be a good facilitator. Councilmember Nancy Johnson feels that we could save some money by having the public input ® part of the process as a part of a public hearing at a City Council meeting. It is also important to R MINUTES - MORRO BAY CITY COUNCIL-JANUARY 8. 2013 advertise this well. in an effort to have as wide a cross section of people as possible attend. She is unavailable on February 27a'. ® Councilmember Smukler feels it is important to have the public have a chance to comment early to help guide the conversations as well as a second chance to comment as the information is defined and we get closer to the final product. He is available for all dates provided. Councilmember Christine Johnson feels that a public component early is important. She is available for all dates provided. She also wondered if the potential of meeting on Saturdays could be looked into. Councilmember Leage also wants to hear public comment but continues to feel the goal setting could be done in-house during a Council meeting. He is available for all dates provided. It is Mayor Iron's intent to allow for 2 opportunities for public input; an earl public workshop as well as a follow-up. One of these could possibly occur at a City Council meeting. He hopes that the City is able to work with the consultant to iron out the costs. He requested that Saturdays be looked into as a meeting date option. He is available for all dates provided. MOTION: Mayor Irons moved approval of a contract with Don Maruska & Company for the City's goal setting process not to exceed S3,000. The motion was seconded by Councilmember Smukler and carried 3-2 with Councilmembers Nancy Johnson and Lease voting no. D-4 DISCUSSION AND REVIEW OF RESOLUTION NO. 45-11, "ESTABLISHNG A THREE YEAR MORATORIUM FOR THE PAYMENT OF DEVELOPMENT IMPACT FEES FOR COMMERCIAL PROJECTS WITHIN A COMMERCIAL ZONE DISTRICT" AND RESOLUTION NO. 52-12. "ESTABLISHING A REDUCTION FOR THE PAYMENT OF DEVELOPMENT IMPACT FEES FOR RESIDENTIAL PROJECTS (PUBLIC SERVICES) This item was pulled from the agenda prior to the start of the meeting. D-5 CITY COUNCIL ANNUAL MEETNG SCHEDULE - 2013; (ADMINISTRATION) City Manager Andrea Lueker presented the staff report. MOTION: Councilmember Nancy Johnson moved approval of the annual meeting schedule as presented. The motion was seconded by Councilmember Leage and carried unanimously 5-0. There was discussion about scheduling the Joint Planning Commission/City Council meetings. There was consensus to look into scheduling them on the 5 h Tuesdays of the months of April and October. D-6 APPONTNIENT OF VICE -MAYOR AND APPOINTMENT OF REPRESENTATIVES ® ON DISCRETIONARY BOARDS. COUNCIL LIAISON ASSIGNMENTS AND COUNCIL SUB -CO VIVIITTEES (ADMINISTRATION) 7 MINUTES - MORRO BAY CITY COUNCIL -JANUARY 8.2013 All Councilmembers were fine with the discretionary appointments proposed by Mayor Irons. ® MOTION: Councilmember Nancv Johnson moved to appoint Councilmember George Lease as Vice-Mavor. The motion was seconded by Councilmember Smukler and carried unanimouslv 5-0. E. DECLARATION OF FUTURE AGENDA ITEMS - Mayor Irons requested a discussion of the City's options to hire a consultant to help find funding opportunities for City projects: Councilmembers Nancy Johnson, Christine Johnson and Smukler concurred. ADJOURNMENT The meeting adjourned at 8:43 P.M. Recorded bv: *W4-- nie Boucher Citv Clerk CJ C MINUTES - MORRO BAY CITY COUNCIL-JANUARY 8. 2013 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 THURSDAY, JANUARY 3, 2013; 6:00 P.M. VETERAN'S HALL - 209 SURF STREET, MORRO BAY, CA I. ESTABLISH QUORUM AND CALL TO ORDER II. i•IOMENT OF SILENCE III. PLEDGE OF ALLEGIANCE IV. PUBLIC COMMENT ® V. DISCUSSION AND DIRECTION RELATING TO CONTINUING OR TERMINATING THE AGREEMENT WITH DUDEK, MCCABE, AND/ OR DELZEIT FOR WASTEWATER TREATMENT PLANT PROJECT CONSULTANT SERVICES VI. DISCUSSION AND DIRECTION RELATING TO THE CITY'S ROLE, POSITION AND PARTICPATION AT THE JANUARY 10, 2013 COASTAL COMMISSION HEARING ON THE WASTEWATER TREATMENT PLANT PROJECT VII. APPROVAL OR DENIAL OF RESOLUTION NO. 07-13 OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA REQUESTING CALIFORNIA COASTAL COMMISSION DENIAL OF APPLICATION NUMBER A-3-MRB-11-001 VIII. APPROVAL OR DENIAL OF RESOLUTION NO. 08-13 OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA REQUESTING CALIFORNIA COASTAL COMMISSION APPROVAL OF APPLICATION NUMBER A-3-MRB-11-001 2 VII. 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 772-6205 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN'' THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. C MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING — JANUARY 3. 2013) ® VETERAN'S MEMORIAL HALL — 6:OOP.M. Mavor Irons called the meeting to order at 6:00 p.m. PRESENT: Jamie Irons Christine Johnson Nancy Johnson George Leage Noah Smukler STAFF: Andrea Lueker Robert Schultz Jamie Boucher Rob Livick Amv Christev Steve Knuckles AGENDA NO: A -la MEETING DATE: 1/22/2013 Mayor Councilmember Councilmember Councilmember Councilmember City Manager City Attorney City Clerk Public Services Director Police Chief Fire Captain 1. ESTABLISH QUORUM AND CALL TO ORDER II. MOMENT OF SILENCE II1. PLEDGE OF ALLEGIANCE ® IV. PUBLIC COMMENT The following speakers spoke in support of approving Resolution 07-13. supporting the California Coastal Commission staffs recommendation for denial of Application Number A-3- MRB-11-001: Betty Winholtz, Dorothy Cutter. David Weisman, Richard Sadowski. Julie Tacker. Marla Jo Bruton. Matt Makowetski. Walter Heath. Glenn Siloway. Marlys McPherson, Abby Diodati. Michael Lucas, Brad Snook. Jeri and Travis Ford, Barry Brannon, Karen Croley, Don Boatman, David Nelson, Barbara Doerr, Bob Tefft. Amy Burton, Steve Griffith. Nancy Bast. Nicole Dorfman. Jane Heath. Bill Martonv. Mandv Davis. Bill Weatherford. Steve Hennigh. Alex Beattie. Bob Swain and John Diodati. Reasons for the support of the denial included the following: sea -level rise; located in a flood plain, located in a tsunami zone. improper zoning for facility. seismic considerations, the drinking water aquifer is being polluted, need to look to the future. shouldn't be built on prime ocean -front land, need to consider 21s` century technology. the smell is ridiculous, erosion impacts, project doesn't include recycled water, project needs to recharge our groundwater, project needs to provide the ability_ to reclaim the water. we need to care for our ocean environment and possible depreciation of property values. The following speakers spoke in support of terminating the Agreements with Dudek. McCabe and/or Delzeit for Wastewater Treatment Plant Project Consultant Services: Betty Winholtz. Dorothv Cutter_. David Weisman, Julie Tacker. Marla Jo Bruton, Michael Lucas, Karen Croley. - Barbara Doerr. Bob Tefft. Steve Griffith. Mandv Davis. Steve Hennigh. and Ales Beattie. ® The following speakers spoke in support of requesting the California Coastal Commission's approval of Application Number A-3-MRB-11-001: Rob Kitzman. John Galarde. Gam' Johnson and Sandy Tannler. Reasons for the support of approval included: the outfall line needs to be protected at all costs. gravity issue of pumping the waste to an uphill site, costs; and Righetti property is too far away. The question also arose that if the area poses such a threat, what about ® the high school and cloisters areas? Mayor Irons closed the public comment period. Items VII and VIII were moved to the beginning of the agenda at this time. VII. APPROVAL OR DENIAL OF RESOLUTION NO. 07-13 OF THE CITY COUNCIL OF THE CITY OF MORRO BAY. CALIFORNIA REQUESTING CALIFORNIA COASTAL COMMISSION DENIAL OF APPLICATION NUMBER A-3-MRB-11-001 Mayor Irons presented an amended redlined version of Resolution No. 07-13 largely based on comments received. Councilmember Nancy Johnson requested additional language be added to the "Now Therefore be it Resolved" language and change it to read "Now. Therefore, be it Resolved, that the City Council of Morro Bay supports the Coast Commission staff report on application and formally requests additional time to develop the most. appropriate project." She also felt that the word "declined" was too strong in the 15'h "Whereas": "... Cavucos Sanitary District declined to attend said meeting..." and hoped that we could soften the statement by taking out that word. She finished by stating that if we read the Coastal Commission staff summary_ then we need to realize that nothing can ever be built on the current property. ® Councilmember Leage agreed with Councilmember Nancv Johnson comments about the lack of need for this meeting. He doesn't feel this fosters a good relationship with Cavucos. He also feels that no matter what decisions are made tonight. it won't change the Coastal Commission's mind. Councilmember Smukler feels it's important for us on behalf of the citizens of Morro Bay as well as staff to come up with a formal statement affirming a clear message and action plan as the direction of the project has changed. He proposed the word "unable" to replace the word "declined". He is in support of Resolution 07-13 as presented in its amended form. Councilmember Christine Johnson is comfortable with the way that Resolution 07-13 is written and is willing to accept an amendment to the word "decline". blavor Irons stands by his original statement in the "Now. Therefore Be It Resolved..." section of the Resolution. MOTION: Councilmember Smukler moved approval of Resolution 07-13 with the amended language as found in the reclined version as well as replace the word "...the Cayucos Sanitary District declined..." with "the Cayucos Sanitary District was unable to ...". The motion was seconded by Councilmember Christine Johnson and carried 3-2 with Councilmembers Nancy Johnson and Leage voting no. ® VIII. APPROVAL OR DENIAL OF RESOLUTION NO. 08-13 OF THE CITY COUNCIL OF THE CITY OF MORRO BAY. CALIFORNLA REQUESTNG CALIFORNIA MINUTES - MORRO BAY CITY COUNCIL - JANUARY 3, 2013 COASTAL COMMISSION APPROVAL OF APPLICATION NUMBER A-3-bIR13-11- 001 ® MOTION: Councilmember Nancy Johnson moved approval of Resolution 08-13. The motion was seconded by Councilmember Lease and failed 2-3 with Councilmembers Christine Johnson. Smukler and Mayor Irons voting no. V. DISCUSSION AND DIRECTION RELATNG TO CONTINUING OR TERMINATING THE AGREEMENT WITH DUDEK, MCCABE, AND/ OR DELZEIT FOR WASTEWATER TREATMENT PLANT PROJECT CONSULTANT SERVICES Councilmember Christine Johnson feels that we should tell McCabe that she no longer should be pursuing the project for Morro Bay. As far as Dudek and Delzeit, if we take the denial forward then we would very likely terminate those contracts but it would first be good to vet their information/knowledge that they have gained to date. Councilmember Nancy Johnson stated that it takes a 10 day notice to terminate. the Coastal Commission meets within that 10 day period — she feels this is a subject for a JPA meeting and she isn't sure that we have the ability/right to terminate a contract held with the JPA. She also felt that since most of the money had already been paid out, why terminate them now as they may prove to be important to us in the future. Councilmember Smukler feels there is existing value to the work that both Delzeit and Dudek have generated for the Citv. That work can be used as a launching pad for work towards alternative sites. As it stands now though, and with the approval of the Resolution tonight. he ® feels we are ready to sever our relationship with all three consultants now as we move forward. Citv Attomev Rob Schultz stated that the Citv does have the abilitv to terminate the iviorro Bav portion of the consultant contracts as the contracts are 3 party contracts: not a single contract between the consultants and the JPA. Mavor Irons brought up the concept of suspension of contracts versus termination of contracts to which City Attorney Rob Schultz responded that the City_ could do either: however, it would be important to give clear direction to said consultants if the intent was to suspend the contracts. As to the question of suspension versus termination. Councilmember Smukler supported termination: Councilmember Christine Johnson supported termination: Councilmember Lease feels that by terminating. we are driving a wedge between us and Cavucos_. none of these decisions should be made without having Cayucos involved. MOTION: Councilmember Smukler moved to terminate the contracts with Dudek. McCabe and Delzeit for Wastewater Treatment Plant project consultant services. The motion was seconded by Councilmember Christine Johnson and failed 2-3 with Mayor Irons. and Councilmembers Nancy Johnson and Lease voting no. Mayor Irons preferred suspension of the contracts as he would prefer being able to have a discussion with the entire JPA board level before taking action. 3 MINUTES - MORRO BAY CITY COUNCIL - JANUARY 3, 2013 Councilmember Smukler felt it very important that we do take some kind of formal action or the consultants may very likely continue on with their efforts on behalf of the project. MOTION: Mayor Irons moved to suspend the contracts with the current consultants. Dudek. Delzeit and McCabe with the direction that no work can be performed on behalf of the City of Morro Bay until the two boards can convene and discuss these contracts. The motion was seconded by Councilmember Christine Johnson and carried 3-2 with Councilmembers Nancv Johnson and Lease voting no. VI. DISCUSSION AND DIRECTION RELATNG TO THE CITY'S ROLE. POSITION AND PARTICIPATION AT THE JANUARY 10, 2013 COASTAL COMMISSION HEARING ON THE ON TREATMENT PLANT PROJECT Councilmember Christine Johnson hoped to have a joint comment period/presentation where a Councilmember and the City Manager express the change that's happened in Morro Bay. She would like to move forward in a way that has staff and Mayor or Councilmember working together on any kind of presentation that is made at the meeting. Councilmember Smukler agrees completely with Councilmember Christine Johnson. :flavor Irons would like to take the message forward alone with the City Manager in presenting the Citv's Resolution during the applicant presentation portion of the meeting. ACTION: Mavor Irons and City_ Manager Andrea Lueker would attend the California Coastal Commission hearing and present the City's new position on the Wastewater Treatment Plant Project during the applicant portion of the agenda. Councilmember Nancy Johnson requested her final comment be read into the record: `Since it would appear that we will be starting over again with a new plant at a new location, it is impossible to really know how this project will eventually end up. There is a chance that we could be involved in protracted litigation with the Cawcos Sanitary District, the permitting process could bog down and take years and costs could skyrocket. For the sake of our citizens I truly hope that this does not happen. In your perfect world, maybe you will be able to get the folks in Cayucos to come around to your way of thinking, you will find a good location, all the permits will be fast tracked and you will build a state of the art water reclamation plant quickly and for a reasonable cost. Onlv time will tell. However. after tonight's vote, there is one thine that I am certain about. At the conclusion of this meeting. for better or worse the three of you will own this project. Thank You" VIL ADJOURNMENT The meeting adjourned at 8:43 p.m. Recorded by: amie Boucher City Clerk 4 MINUTES - MORRO BAY CITY COUNCIL-JANUARY 3, 2013