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Home My WebLink About1-3-13 Special Meeting Agenda Packet 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. MOMENT 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 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. Prepared By: ________ Dept Review:_____ City Manager Review: ________ City Attorney Review: ________ Staff Report TO: Honorable Mayor and City Council DATE: December 28, 2012 FROM: Rob Schultz SUBJECT: Discussion and Direction Relating to Continuing or Terminating the Agreement with Dudek, McCabe and/or Delzeit for Wastewater Treatment Plant Project Consultant Services RECOMMENDATION: Review the attached Status Report for the Wastewater Treatment Plant Project prepared by Project Manager Dennis Delzeit and provide direction on whether to continue or terminate the Agreement with Dudek, McCabe and/or Delzeit for Wastewater Treatment Plant Project Consultant Services. FISCAL IMPACT: Based upon the figures set forth in the attached Status Report, there is approximately $91,000 remaining to be invoiced pursuant to the Agreements. BACKGROUND: The City and Cayucos Sanitary District have entered into three separate Agreements for professional consultant services for the Wastewater Treatment Plant Project. The Agreement with Dennis Delzeit for Project Management Services is for a total of $253,000, and to date the City has been invoiced for 197,145. The Agreement with Dudek for Alternative Analysis Reports is for a total of $455,642, and to date the City has been invoiced $430,762. The Agreement with McCabe for Coastal Commission Consultant Services is for a total of $155,000 and to date the City has been invoiced $144,417. Up to the present, the MBCSD has expended $772,324 leaving approximately $91,000 remaining under the Agreements. DISCUSSION: The Agreements with Dudek and McCabe contain the same provision regarding suspension or termination of the Agreement. The provisions are as follows: AGENDA NO: V MEETING DATE: January 3, 2013 Staff Report – City Attorney Meeting Date: 1/03/13 Consultant Agreements 2 6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE (a) The City/District may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City/District suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement. The Agreement with Delzeit contains the following similar provision regarding termination of the Agreement: 8.00 TERMINATION OF AGREEMENT 8.01 TERMINATION OF NOTICE. Notwithstanding any other provisions of this Agreement, any party hereto may terminate this Agreement, at any time, without cause by giving at least ten (10) days prior written notice to the other parties to this Agreement. The City of Morro Bay certainly has the ability under the Agreements to terminate the Agreements and have no further obligation to pay any sums to Dudek, McCabe and/or Delzeit for any work performed after notice of termination is given. However, termination of the Agreements may result in exposure to ligation and damages between the City and Cayucos based upon a variety of legal theories. I have spoken with each of the Council members individually about the risk and potential exposure to litigation and damages. I am also available if the Council decides to call a closed session to discuss it further. CONCLUSION: Council should review the attached Status Report and provide direction to Staff. Prepared By: ________ Dept Review:_____ City Manager Review: ________ City Attorney Review: ________ Staff Report TO: Honorable Mayor and City Council DATE: December 28, 2012 FROM: Rob Schultz SUBJECT: Discussion and Direction Relating to the City’s Role, Position and Participation at the January 10, 2013 Coastal Commission Hearing on the Wastewater Treatment Plant Project RECOMMENDATION: Review the attached Coastal Commission staff report and provide direction to staff on the City’s role, position, and participation at the January 10, 2013 Coastal Commission Hearing on the Wastewater Treatment Plant Project. FISCAL IMPACT: None. BACKGROUND: Attached is the Coastal Commission staff report without attachments. The full staff report with attachments can be found at http://documents.coastal.ca.gov/reports/2013/1/Th23b-1-2013.pdf. Staff needs to make certain it understands its role, position, and participation at the January 10, 2013 Coastal Commission Hearing. The Mayor has also prepared Resolution No. 07-13 and Resolution No. 08- 13 for your consideration. CONCLUSION: Council should review the attached CCC Report and provide direction to Staff. AGENDA NO: VI MEETING DATE: January 3, 2013 RESOLUTION NO. 07-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA REQUESTING CALIFORNIA COASTAL COMMISSION DENIAL OF APPLICATION NUMBER A-3-MRB-11-001 THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay owns and operates 60% of a Wastewater Treatment Plant (WWTP) originally constructed in 1954; and, WHEREAS, in 2003, the City of Morro Bay and Cayucos Sanitary District (MBCSD) began work efforts on upgrading the existing WWTP in order to phase out the need for the existing 301(h) modified discharge permit; and, WHEREAS, in 2009, a flood analysis of the existing WWTP site concluded that “the flood elevation on neighboring properties would increase if new facilities are built within the existing WWTP footprint”; and, WHEREAS, as a result of the flood analysis, the MBCSD designated the property to the south as the site for a new WWTP and changed the scope of the project from an on-site upgrade to demolition, relocation and construction of a new WWTP; and, WHEREAS, on December 20, 2010 the Morro Bay Planning Commission unanimously denied the Coastal Development Permit and certification of the Environmental Impact Report, finding that the proposed project was not an upgrade but a new project and therefore required a more thorough alternative site analysis; and, WHEREAS, on January 11, 2011 the Morro Bay City Council voted 4-1 to overturn the decision of the Planning Commission, approving the Coastal Development Permit and certifying the Environmental Impact Report; and, WHEREAS, the Coastal Development Permit was appealed by numerous parties, including Commissioners Shallenberger and Stone, The Morro Bay Farmers & Ranchers Ag Coalition, Sierra Club and Surfrider Foundation; and, WHEREAS, on March 11, 2011 the California Coastal Commission unanimously found Substantial Issue with the WWTP proposal and directed the applicant to conduct a thorough review of alternative WWTP site locations which may, among other benefits, provide greater protection from coastal hazards, have higher potential for beneficial reuse of the treated wastewater and allow for the restoration of the existing beachfront WWTP location for visitor serving purpose; and, AGENDA NO: VII MEETING DATE: January 3, 2013 WHEREAS, the MBCSD conducted an alternative analysis and were presented the findings on November 10, 2011; and, WHEREAS, although viable alternative sites exist, along with community support of said sites, the MBCSD concluded the proposed site remained the best site; and, WHEREAS, after the decision by the MBCSD on November 10 , 2011 the MBCSD has held only four public meetings effectively limiting community dialogue on the proposed project; and, WHEREAS, the community of Morro Bay, in the June 2012 General Election, elected three candidates who supported the consideration of the viable alternative WWTP sites; and, WHEREAS, the new Morro Bay City Council was installed on December 10, 2012; and, WHEREAS, the City Council requested a special MBCSD meeting for early January in order to review the relevant facts of the proposed WWTP project and provide direction to staff; and, WHEREAS, the Cayucos Sanitary District declined to attend said meeting, citing holiday conflicts; and, WHEREAS, the City of Morro Bay held the special meeting on January 3, 2013; and, WHEREAS, the de Novo hearing for the new WWTP is scheduled for January 10, 2013; and, WHEREAS, Coastal Commission Staff recommends denial of the new WWTP, listed as application number A-3-MRB-11-001; and, WHEREAS, in their report Coastal Commission staff states “the proposed project is inconsistent with the City’s LCP, including policies related to allowable uses and land use priorities, hazard avoidance and response, sustainable public infrastructure, and public view-shed protection…”; and, WHEREAS, in their report Coastal Commission staff states “Fortunately, there appear to be feasible sites for WWTP development in the area, including inland sites evaluated by the Applicant”; and, WHEREAS, in their report Coastal Commission staff concludes “a WWTP project is needed to address ongoing coastal resource impacts, but a project at the existing WWTP site cannot be found consistent with the LCP. In fact, an LCP amendment would first be necessary to make it an allowed use at the proposed location. Staff recommends that the Commission deny the CDP for the WWTP at the existing site, and further recommends that the Commission provide direction to the Applicant to pursue an alternative site that can meet LCP objectives and requirements. Staff believes that such a recommendation is good coastal planning and public policy, that it is required for LCP consistency, and that it will provide for a WWTP project that can appropriately address coastal resource problems in a manner that provides long-term sustainable public infrastructure.”; and, WHEREAS, the Morro Bay City Council concurs with these statements, and seeks additional time to develop the most appropriate project for the MBCSD. NOW, THEREFORE, BE IT RESOLVED, that the City Council of Morro Bay concurs with the Coastal Commission staff report on application number A-3-MRB-11-001 and formally requests the Commissioners deny the application. PASSED AND ADOPTED by the City Council of the City of Morro Bay, at a special meeting thereof held on the 3rd day of January 2013, by the following vote: AYES: NOES: ABSENT: ______________________________________ JAMIE L. IRONS, Mayor ____________________________ JAMIE BOUCHER, City Clerk RESOLUTION NO. 08-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA REQUESTING CALIFORNIA COASTAL COMMISSION APPROVAL OF APPLICATION NUMBER A-3-MRB-11-001 THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay owns and operates 60% of a Wastewater Treatment Plant (WWTP) originally constructed in 1954; and, WHEREAS, in 2003, the City of Morro Bay and Cayucos Sanitary District (MBCSD) began work efforts on upgrading the existing WWTP in order to phase out the need for the existing 301(h) modified discharge permit; and, WHEREAS, in 2009, a flood analysis of the existing WWTP site concluded that “the flood elevation on neighboring properties would increase if new facilities are built within the existing WWTP footprint”; and, WHEREAS, as a result of the flood analysis, the MBCSD designated the property to the south as the site for a new WWTP and changed the scope of the project from an on-site upgrade to demolition, relocation and construction of a new WWTP; and, WHEREAS, on March 11, 2011 the California Coastal Commission unanimously found Substantial Issue with the WWTP proposal and directed the applicant to conduct a thorough review of alternative WWTP site locations which may, among other benefits, provide greater protection from coastal hazards, have higher potential for beneficial reuse of the treated wastewater and allow for the restoration of the existing beachfront WWTP location for visitor serving purpose; and, WHEREAS, the MBCSD conducted an alternative analysis and were presented the findings on November 10, 2011; and, WHEREAS, the MBCSD concluded the proposed site remained the best site; and, WHEREAS, the de Novo hearing for the new WWTP is scheduled for January 10, 2013; and, WHEREAS, Coastal Commission Staff recommends denial of the new WWTP, listed as application number A-3-MRB-11-001; and, AGENDA NO: VIII MEETING DATE: January 3, 2013 WHEREAS, the Morro Bay City Council maintains the proposed site is the best site for the community. NOW, THEREFORE, BE IT RESOLVED, that the City Council of Morro Bay disagrees with the Coastal Commission staff report on application number A-3-MRB-11-001 and formally requests the Commissioners approve the application. PASSED AND ADOPTED by the City Council of the City of Morro Bay, at a special meeting thereof held on the 3rd day of January 2013, by the following vote: AYES: NOES: ABSENT: ______________________________________ JAMIE L. IRONS, Mayor ____________________________ JAMIE BOUCHER, City Clerk