HomeMy WebLinkAbout6-11-13 Agenda Packet1
City of Morro Bay
City Council Agenda
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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.
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REGULAR MEETING
TUESDAY, JUNE 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: A1-3 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
Negotiating Parties: Michael Lemos and City of Morro Bay
Negotiations: Lease Terms and Conditions
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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
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 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.
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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; (ADMINISTRATION)
RECOMMENDATION: Approve as submitted.
A-2 APPROVAL OF CITY COUNCIL MINUTES FOR THE REGULAR COUNCIL
MEETING OF MAY 14, 2013; (ADMINISTRATION)
RECOMMENDATION: 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 EXISTING 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.
B. PUBLIC HEARINGS - NONE
C. UNFINISHED BUSINESS
C-1 REVIEW OF THREE PROPOSED CONCEPT PLANS FOR IMPROVEMENTS TO
CENTENNIAL STAIRCASE; (CITY ATTORNEY)
RECOMMENDATION: 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 City Council with their recommendations.
D. NEW BUSINESS
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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)
RECOMMENDATION: 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 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)
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 MEISTERLIN 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)
RECOMMENDATION: Discuss in open session, the progress to date on the Water
Reclamation Facility (WRF) 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
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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.
MINUTES - MORRO BAY CITY COUNCIL
BUDGET WORKSHOP – MAY 22, 2013
VETERAN’S MEMORIAL HALL – 5:00P.M.
PRESENT: Jamie Irons Mayor
Christine Johnson Councilmember
George Leage 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
Eric Endersby Harbor Director
Susan Slayton Administrative Services Director
Joe Woods Recreation & Parks Director
Mayor Irons called the meeting to order at 5:00 p.m.
ESTABLISH QUORUM AND CALL TO ORDER
MOMENT OF SILENCE
PLEDGE OF ALLEGIANCE
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 with 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 $116,850 for the Tourism
Bureau/Visitor’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
AGENDA NO: A-1 MEETING DATE: 6/11/2013
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MINUTES - MORRO BAY CITY COUNCIL BUDGET WORKSHOP – MAY 22, 2013
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; ~marketing 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 City’s 50th Anniversary Celebration.
Neil Farrell, President of the Public Art Foundation has been working with the 50th 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.
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MINUTES - MORRO BAY CITY COUNCIL BUDGET WORKSHOP – MAY 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 getting 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;
50th Annviersary Celebration – amount TBD
SLO County Housing Trust - $,1000
EVC - $5,000
Tourism Bureau - $58,500
Community Art Foundation – amount TBD
Councilmember Christine Johnson spoke regarding the SLO County Housing Trust stating that
their request is focused on low, very low and moderate income building/housing 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 Measure 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.
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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 will come from in our attempt to fund those goals is important.
The meeting concluded; the next Budget Workshop is scheduled for Wednesday, June 12, 2013
beginning at 5:00pm at the Veteran’s Hall.
ADJOURNMENT
The meeting adjourned at 8:33pm.
Recorded by:
Jamie Boucher
City Clerk
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING – MAY 28, 2013
VETERAN’S MEMORIAL HALL – 6:00P.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 Attorney
Jamie Boucher City Clerk
Amy Christey Police Chief
Eric Endersby Harbor Director
Susan Slayton Administrative Services Director
Joe Woods Recreation & Parks Director
Rob Livick Public Services Director
Rick Sauerwein Capital Projects Manager
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 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/Corner
of Coral/San Jacinto; 887 Atascadero Road; and 307 Morro Bay Blvd. No reportable action
under the Brown Act was taken.
MAYOR AND COUNCILMEMBERS’ REPORTS, ANNOUNCEMENTS &
PRESENTATIONS
PUBLIC PRESENTATIONS
PUBLIC COMMENT
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, Tuesday and Thursday from 11am-8pm; Friday and Saturday, 11am-
9pm; and closed Wednesdays. They hope everybody comes out and gives them a try.
AGENDA NO: A-2 MEETING DATE: 6/11/2013
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MINUTES - MORRO BAY CITY COUNCIL – MAY 28, 2013
Barry Brannin spoke regarding a closed session item, the vacant lot/corner 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 agreement
with Cayucos. 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 Cayucos.
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 County. He also stated that Dennis Gage said that the event was well organized
and that the City 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 3rd Annual Veteran’s Benefit to support the
Veteran’ Shuttle Bus. It is being held on Sunday, June 23rd from 1-4pm. 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 Bay Natural Estuary Program stated that they
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 City staff. They also have the best management
practices for harbor maintenance, boating and projects that they have been working on with City
staff for many years.
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MINUTES - MORRO BAY CITY COUNCIL – MAY 28, 2013
Taylor Newton advertised the upcoming Green Light Eco-Faire being held this Sunday, June 2nd
at St. Timothy’s Church from noon – 5pm. 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, 2013; (ADMINISTRATION)
RECOMMENDATION: Approve as submitted.
A-2 EXECUTION OF A GRANT AGREEMENT WITH THE NATURE CONSERVANCY
FOR $35,000 TO FINALIZE CREATION OF THE MORRO BAY COMMUNITY
QUOTA FUND NON-PROFIT AND TO SUPPORT REGIONAL FISHING
ASSOCIATION DEVELOPMENT; (ADMINISTRATION/HARBOR)
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 Bay Community Quota Fund (MBCQF) and support of regional fishing
associations.
A-3 ANNUAL UPDATE ON CURRENT LEGISLATIVE BILLS PENDING IN
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 Utility Easement.
A-5 STATUS REPORT OF A MAJOR MAINTENANCE & REPAIR PLAN (MMRP) FOR
THE EXISTING WASTEWATER TREATMENT PLANT; (PUBLIC SERVICES)
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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 PLANNING 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 $35,000 TO FINALIZE CREATION OF THE MORRO BAY COMMUNITY
QUOTA FUND NON-PROFIT AND TO SUPPORT REGIONAL FISHING
ASSOCIATION DEVELOPMENT; (ADMINISTRATION/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 IN
SACRAMENTO; (CITY ATTORNEY)
Mayor Irons pulled this item to ask the City Attorney questions and to speak on the
recommendations. City 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: Mayor Irons moved the City Council approve Item A-3. The motion was
seconded by Councilmember Christine Johnson and carried unanimously 5-0.
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MINUTES - MORRO BAY CITY COUNCIL – MAY 28, 2013
B. PUBLIC HEARINGS - NONE
C. UNFINISHED BUSINESS – NONE
D. NEW BUSINESS
D-1 WATER RECLAMATION FACILITY (WRF) PROJECT STATUS AND
DISCUSSION; (ADMINISTRATION)
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 Notify Me Module on the
City’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 IN 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
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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 staff’s
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
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 forwarded 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 significance
planted by early settlers, and depended on by indigenous cultures (Chapter 12.08 of the Code).
7
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 Management 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 City’s 50th 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 staff’s 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 MARINA), 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 County, 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
8
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
along 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 long 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 property 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 money 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 Mr. 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.
9
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 ready 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.
Mayor 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.
10
MINUTES - MORRO BAY CITY COUNCIL – MAY 28, 2013
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)
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 years is very valuable.
Councilmember Smukler stated that 5 years is a long time, if we were to wait another year 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.
11
MINUTES - MORRO BAY CITY COUNCIL – MAY 28, 2013
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 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)
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
City Clerk
Staff Report
TO: Honorable Mayor and City Council DATE: June 4, 2013
FROM: Robert Schultz, City Attorney
SUBJECT: Request To Approve a Response to the Grand Jury Regarding Email
Accessibility to City Government
RECOMMENDATION
Staff recommends the Council review the attached letter and authorize its submittal to the Grand
Jury.
ALTERNATIVES
1. After Council review of the response, the Mayor signs the letter as written.
2. After Council review of the response, revisions can be made as deemed necessary, and
then the Mayor can sign the letter as revised.
FISCAL IMPACTS
No fiscal impacts result as a result of this action.
DISCUSSION
The City has received a report from the San Luis Obispo County Grand Jury regarding “Email
Accessibility to City Government”. The Grand Jury Report is attached to the staff report.
According to the report, the City is required to respond to Finding 5 and Recommendation 2
which states the City must to add to our website, a Brown Act disclosure related to the use of
official City emails by both Councilmembers and staff. This disclosure has been added to the
website as instructed. The added verbiage to the City Council site reads as follows: “Note: E-
mail correspondence sent to and from members of the City Council via the City's website are
considered public records and may be subject to disclosure and additional distribution pursuant
to the Public Records Act and/or the Brown Act.” The added verbiage to the City Staff
Directory site reads as follows: Note: E-mail correspondence sent to and from the following
people via the City's website are considered public records and may be subject to disclosure and
additional distribution pursuant to the Public Records Act and/or the Brown Act.” The City of
Morro Bay is required to respond to this request by July 1, 2013. Staff has developed the
attached response letter for the Council's review.
CONCLUSION
Staff recommends that Council review the letter and authorize its submittal to the Grand Jury.
AGENDA NO: ___A-3____________ _ Meeting Date: ___June 11, 2013 ______
Prepared By: ___JB____ Dept Review:_____
City Manager Review: ________
City Attorney Review: ________
FINANCE ADMINISTRATION FIRE DEPT. PUBLIC SERVICES
595 Harbor Street 595 Harbor Street 715 Harbor Street 955 Shasta Avenue
HARBOR DEPT. CITY ATTORNEY POLICE DEPT. RECREATION & PARKS
1275 Embarcadero Road 595 Harbor Street 850 Morro Bay Boulevard 1001 Kennedy Way
City of Morro Bay
Morro Bay, CA 93442
(805) 772-6205
June 4, 2013
Ed Kreins, Foreperson
2012-2013 SLO County Grand Jury
PO Box 4910
San Luis Obispo, CA 93403
Mr. Kreins,
This letter is in response to your April 30, 2013 request for information regarding “Email
Accessibility to City Government”. First and foremost, we would like to thank you for your
Commendation for our rapid transference of City Council members’ personal emails to City
domain emails for conducting official business.
Secondly, as of June 5, 2013 the City of Morro Bay placed a Brown Act Disclosure related to the
use of official City emails on both the City Council page as well as each of our Department’s
Staff Directory pages. The verbiage for each reads as such:
Councilmember: “Note: E-mail correspondence sent to and from members of the City
Council via the City's website are considered public records and may be subject to
disclosure and additional distribution pursuant to the Public Records Act and/or the
Brown Act.”
Staff: “Note: E-mail correspondence sent to and from the following people via the City's
website are considered public records and may be subject to disclosure and additional
distribution pursuant to the Public Records Act and/or the Brown Act.”
If you have further questions, please do not hesitate to call.
Sincerely,
Jamie L. Irons
Mayor
Prepared by: __RL__ Dept. Review: RL__
City Manager Review:______
City Attorney’s Review:_____
Staff Report
TO: Honorable Mayor and City Council DATE: June 4, 2013
FROM: Rob Livick, PE/PLS - Public Services Director/City Engineer
SUBJECT: Status Report of a Major Maintenance & Repair Plan (MMRP) for the
Existing Wastewater Treatment Plant
RECOMMENDATION
Staff recommends that this report be received and filed.
ALTERNATIVES
As no action is requested, there are no recommended alternatives.
FISCAL IMPACT
No fiscal impact at this time as a result of this report. Fiscal impact is addressed through the
budget process.
DISCUSSION
This staff report is intended to provide an update on the development of the MMRP for the
WWTP. At the February 14, JPA meeting the Council and District Board approved of the
development of an MMRP and made the following motion:
Direct staff to prepare a time sensitive and prioritized MMRP for the WWTP with an
anticipated rolling 2 year budget;
That the JPA solicit proposals from a qualified firm, or firms, to provide technical
advice and analysis on an as needed basis as determined by Morro Bay’s Public
Services Director and Cayucos Sanitary District Manager; and
That the Morro Bay Public Services Director and Cayucos Sanitary District Manager
report back to the JPA on a semi-annual basis on the progress and costs associated
with the MMRP.
Development of an MMRP will assist the City and District in projecting the budgeting of
expenditures required to keep the current plant operating in compliance with regulatory
requirements.
Staff continues to make steady progress in the development of the MMRP during the last
month. Staff’s primary focus has continued to be on the next Fiscal Year and the projects
contained within the proposed FY13/14 budget. Staff has completed an initial review of
maintenance & repair expenditures over the past 10 years to determine maintenance trends and
identify a prospective project list for FY13/14 through FY17/18. It is important to recognize
AGENDA NO: A-4
MEETING DATE: June 11, 2013
2
that, except for the current budget year, this is a very tentative list which will be refined and
prioritized as the results of additional investigation and analyses are completed. The next
steps include gathering essential data to further assess equipment and facilities’ condition,
developing detailed project scope, and prioritizing each project based on the following criteria:
critical for plant safety, essential for regulatory compliance, reduces risk of plant malfunction,
reduces O&M costs, and reduces energy consumption/cost. The current work plan anticipates
an MMRP budget for FY 14/15 that is similar to the $1.3M that was recommended for FY
13/14. The following table shows the draft MMRP schedule by Fiscal Year including the
proposed project. Staff will continue to actively work on further refinement of existing
studies, structural conditions, and equipment assessments to continue to fine tune the MMRP.
DRAFT MMRP SCHEDULE
FY 13/14 FY14/15 FY15/16 FY16/17 FY 17/18
Headworks
Screening
Primary Clarifier
Repairs
Primary Clarifier
Repairs
Clean/Repair
Digester #2
Clean/Repair
Digester #1
Clean/Repair
Digester #3
Chlorine Contact
Tank Repairs
Secondary Clarifier
Repairs
SCADA
Interstage Pump
Project
Electrical Upgrade Electrical Upgrade
Chlorine Building
Rehabilitation
Biofilter
Rehabilitation
Biofilter
Rehabilitation
Flood Related
Issues
Miscellaneous
Equipment Repair
and Replacement
Miscellaneous
Equipment Repair
and Replacement
Miscellaneous
Equipment Repair
and Replacement
Miscellaneous
Equipment Repair
and Replacement
Miscellaneous
Equipment Repair
and Replacement
Facility
Maintenance
Facility
Maintenance
Facility
Maintenance
Facility
Maintenance
Facility
Maintenance
Est. Cost = $1.3M
During the past month, staff toured several wastewater facilities to evaluate treatment
processes and equipment. Staff toured the Paso Robles WWTP to better understand their
upgrade plans and goals, and to examine some of their existing equipment that might be useful
during the interim maintenance of the MBCSD plant. They have an influent screening unit
that is in good condition that they would sell at salvage value but unfortunately it will not be
taken out of service for 18-20 months. The rapidly deteriorating condition of our macerators
(grinder pumps) make it too risky to wait that long. In addition, staff toured the Thousand
Oaks WWTP and the Carpentaria WWTP to mine the experience of other operators on various
processes and equipment alternatives including influent screens. All the tours were very
informative and reinforced the need to upgrade various portions of the existing plant to
maintain reliability and redundancy.
MBCSD staff is proceeding to acquire specialty services to assist staff with further evaluation
and cost estimating. Specifically these experts would assist in the non-destructive testing of
3
the digesters to gain more knowledge about their structural condition prior to developing the
project scope to drain the digesters for cleaning, coating, and repairs. This should help
expedite repairs and limit the down time of the digesters. Additionally, they would be tasked
with reviewing the 2006 Carollo Wastewater Treatment Plant Electrical Facilities Overview
(Appendix H of the 2006 Facility Master Plan) and provide an updated condition assessment
of critical electrical infrastructure.
Finally, a review of certain portions of Chapter 6 of the FMP would also be completed to
provide current analysis and recommendations for the rehabilitation of the primary and
secondary clarifiers. This assessment will assist staff in prioritizing the proposed work tasks
as well as refine cost estimates. The electrical evaluation could begin early in the new Fiscal
Year; however staff would recommend not starting the clarifier assessments until September,
after peak summer flows have subsided. This still allows ample time to incorporate this
information for planning and budgeting for the next fiscal year.
CONCLUSION
Staff will continue to bring a status report on the development of the MMRP at City Council
meetings on a monthly basis.
RESOLUTION NO. 35-13
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
T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, on the 14th day of, December 2009 the City of Morro Bay made application to
the State of California for $600,000.00; and
WHEREAS, on the 5th day of August 2010 the State of California issued a Letter of
Commitment to the City of Morro Bay committing grant funds under the Proposition 84 Program
for the Desalination Facility Energy Recovery Project P84G-4010011-801, subject to terms and
conditions; and
WHEREAS, the City Council adopted Resolution 43-10 authorizing the Utilities/Capital
Project Manager to act on behalf of the City in the execution of various documents relating to the
grant; and
WHEREAS, subsequent to the passage of Resolution 43-10, the City Council reorganized
the Public Services department and eliminated the position Utilities/Capital Project Manager and
designated the Public Services Director to fill the role of overall utilities management.
NOW, THEREFORE, BE IT RESOLVED AND ORDERED, that the Public Services
Director, a Registered Engineer in the State of California, is hereby authorized to perform those
duties that Resolution 43-10 direct the Utilities/Capitol Projects Manager to perform; and
BE IT FURTHER RESOLVED AND ORDERED, that all other terms and conditions
stipulated in Resolution 43-10 remain in effect per the requirements of the Proposition 84 Program
for the Desalination Facility Energy Recovery Project, P84G-4010011-801.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the 11th day of June, 2013 on the following vote:
AYES:
NOES:
ABSENT:
______________________________
JAMIE L. IRONS, Mayor
ATTEST:
_____________________________
JAMIE BOUCHER, City Clerk
AGENDA NO: A-5
MEETING DATE: June 11, 2013
Staff Report
TO: Honorable Mayor and City Council DATE: June 4, 2013
FROM: Robert Schultz, City Attorney
SUBJECT: Review of Three Proposed Concept Plans for Improvements to Centennial
Staircase
RECOMMENDATION
Staff recommends that City Council 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 City Council
with their recommendations.
ALTERNATIVES
1. Review proposed concept plans, schedule this item for review at Recreation and Parks
Commission and Planning Commission.
2. Review proposed concept plans, make a recommendation and send to Planning
Commission.
3. Reject proposed designs.
BACKGROUND
The City purchased two abutting parcels of land in June 2003. One was the former trailer park at
714 Embarcadero and the other was known as the Hungry Tiger property at 781 Market Avenue
(also formerly Anthony’s and Brannigan’s). The former trailer park is currently used as a public
parking lot and the Hungry Tiger property sat vacant for several years as result of an inability to
attract an investor interested in a Hotel/Conference Center Public/Private Partnership.
In 2009, the City Council decided to sell the property at 781 Market Street to George Salwasser.
After the sale, Mr. Salwasser made major improvements to the vacant building and it is now a
restaurant and wine bar. As part of the Purchase and Sales Agreement, the City negotiated for
Mr. Salwasser to pay the costs to design, engineer, and install a lift station to improve access
between the Embarcadero and Market Street.
In November 2012, the City Council reviewed two Concept Plans attached as Exhibit A and B.
One design was for a funicular, the other a traditional elevator. After deliberating, Mayor Yates
AGENDA NO: C-1 Meeting Date: June 11, 2013
Prepared By: __________ Dept Review:_____
City Manager Review: ________
City Attorney Review: ________
Staff Report – Centennial Staircase
Page 2
moved for support of the funicular, directed Staff to communicate the Council’s decision to Mr.
Salwasser and send the project directly to the Planning Commission. The motion was seconded
by Councilmember Leage and passed unanimously 5-0.
After the Council Meeting, staff communicated with Mr. Salwasser regarding moving forward
with the funicular. Mr. Salwasser stated that his position was that the City was welcome to put in
a funicular but according to his interpretation of the Agreement he was only responsible to pay
for a lift station, and that the added cost to install the funicular would have to be borne by the
City. Staff requested cost estimates from Mr. Salwasser for both proposed designs, as well as the
cost and plans for the installation of a lift station that would comply with the sales agreement. In
response to that request, Mr. Salwasser has submitted a design of an elevator shown as Exhibit C
for a cost of $325,000. Cost estimates for Exhibits A & B have not been provided.
DISCUSSION
Mr. Salwasser has submitted three different designs for the installation of a lift station where the
Centennial Staircase currently exists. The first design (Exhibit A) is for a funicular, which is a
cable attached to tram-like vehicle on rails that moves people up and down a slope. The second
design (Exhibit B) is for a more traditional elevator. The third design is also for a traditional
elevator that would satisfy the requirements of the agreement. Both designs A and B greatly
exceed the costs of Exhibit C. The City Council should review the plans and decide which
design to move forward with, or decide to send it to various advisory bodies for their input.
CONCLUSION
City Council should review and discuss the Concept Plan for Improvements to Centennial
Staircase and direct Staff accordingly.
Staff Report
TO: Honorable Mayor and City Council DATE: June 4, 2013
FROM: Eric Endersby, Harbor Director
SUBJECT: Consideration of Joint Redevelopment Project Proposed for Lease Sites
86/86W (801 Embarcadero LLC – Caldwell) and 87-88/87W-88W (V. Leage)
RECOMMENDATION
Staff recommends the Council consider the three proposed alternatives and provide staff
direction.
ALTERNATIVES
A. Accept the Leaseholders’ proposed joint project and direct the Leaseholders to file their
Application with the Planning Division and authorize staff to begin lease negotiations
with the Leaseholders for their proposed redevelopment.
B. Reject the proposed joint project and direct Leaseholders to resubmit separate proposals
for their respective lease sites.
C. Direct staff to prepare and bring back Requests for Proposals (RFPs) for each site.
FISCAL IMPACT
There is no fiscal impact at this time. Positive fiscal impact is expected if the sites are
redeveloped jointly or separately and additional percent gross revenues are realized over time.
SUMMARY
The Leaseholders on lease sites 86/86W and 87-88/87W-88W have proposed a joint land and
water lease redevelopment project. As requested by the City, they have submitted preliminary
plans for public comment and Council consideration. Council is being asked to consider their
proposal and provide staff direction on the alternatives.
AGENDA NO: D-1
MEETING DATE: June 11, 2013
Prepared By: ________ Dept Review: _____
City Manager Review: ________
City Attorney Review: ________
2
BACKGROUND
Lease Site 86/86W is a 50-year Pipkin lease that expires in September 2018. Lease Site 87-
88/87W-88W originated in 1970, had several term extensions for a total term of 48 years, and
expires in March 2018. Both of these lease sites are within the last five years of their lease term,
and pursuant to the Lease Management Policy the tenants have submitted a written proposal for
a joint redevelopment project instead of two separate redevelopment projects.
DISCUSSION
For Tidelands Trust Leases from Beach Street to Tidelands Park, the City’s Lease Management
Policy states:
“In this area, the City controls land and water areas. In this area tenants are
encouraged to propose redevelopments of lease sites to improve public benefits
on these sites, enhance the Embarcadero business environment, and renegotiate
leases to modern terms. To help accomplish this, and to provide tenants
motivation not to let long-term leases run to the very end of their terms with
degraded building/improvements, and under market lease terms, the City will
generally not renew leases with existing tenants in this area if they allow their
leases to run to a term of less than five years remaining.”
In addition, the City’s Lease Management Policy states that it will use the following standards
for determining whether it should negotiate a new lease with a tenant:
A. The tenant has a good history of performance and lease compliance and
the improvements on the site are well maintained. Example standards for
determining “good history” of lessee performance are:
1. The tenant’s record with respect to the prompt and accurate payment of
rent due the City;
2. The tenant’s record of compliance with existing lease conditions;
3. The appropriateness of the proposed tenant business with respect to the
total mix of uses and services available to the public and with respect to
the long-term planning goals of the City;
4. The tenant’s financial and personal investment in tenant business and the
leasehold improvements;
5. The contribution to the surrounding business community made by the
tenant’s business;
6. The quality of direct services to the public provided by the tenant and its
business;
7. The value received by the public in goods or services.
8. The total financial return to City from the leasehold;
9. Other pertinent considerations as may be appropriate as determined by
the City Council.
3
Pursuant to the Lease Management Policy, Caldwell and Leage have submitted a proposed
redevelopment. The joint Caldwell/Leage proposal consists of a complete demolition of both
sites, retention of the open space between 87-88/87W-88W and the neighboring lease site to the
north with the addition of more outside public and restaurant seating, and one new side-tie dock
spanning the entirety of both sites. The new building is proposed to consist of one overall lower
floor with mixed restaurant/bar, retail, hotel lobby and hotel rooms, and a second floor that is
proposed to be all hotel rooms. A copy of their joint proposal is included with this staff report.
The Leaseholders have proposed to staff that they each retain ownership of their existing lease
sites, and operate the jointly built/owned facilities in an LLC or other partnership arrangement.
Three alternatives for Council to consider are being provided. Alternative A is in keeping with
current Council direction and the Leaseholders’ desires, however, it is also the most complicated
in terms of scope and how the partnership would be proposed, operated, and legally exist with
separate lease site ownership. Should Alternative A be chosen, the Leaseholder will move
forward with their project by filing an Application with the Planning Division for a CUP/CDP.
Thereafter, there will noticed public hearings before the Planning Commission and City Council
to either approve, deny or modify the project. In addition, staff will work with both
Leaseholders on the details on their proposal and the joint ownership/operation arrangement, as
well as on preliminary lease terms and conditions while their Application is being processed
through the Planning Division. Staff will report back to Council in closed session on the status of
these negotiations.
Alternative B would retain the current lease site ownership, but require that each individual
Leaseholder submit a proposal for their individual site only, assuming that they are both
interested in continuing on separately. Should Alternative B be chosen, staff will direct the
individual Leaseholders to submit individual plans. Once the individual plans are submitted, the
item would come back to Council in open session to decide whether to allow the proposed
project to move forward through the CUP/CDP process and to begin negotiations. Staff
recommends a three month deadline for submittal should this alternative be selected.
Alternative C would put both sites out for RFPs. The existing Leaseholders could submit
proposals in this alternative. Should this alternative be chosen, staff will begin work on crafting
the RFPs for future Council approval.
CONCLUSION
Staff recommends that City Council take public input, consider the Leaseholders’ proposal as
submitted, and provide staff direction on the alternatives being presented. Both Leaseholders are
tenants in good standing and are considered to have a “good history of lessee performance.”
Staff Report
TO: Honorable Mayor and City Council DATE: June 4, 2013
FROM: Eric Endersby, Harbor Director
SUBJECT: Consideration of Redevelopment Project Proposed for Lease Site 62/62W
(Kayak Horizons – Krueger).
RECOMMENDATION
Staff recommends the Council considers the two alternatives and provide staff direction. Staff is
recommending Alternative A.
ALTERNATIVES
A. Accept the Leaseholder’s proposed project and direct the Leaseholder to file their
Application with the Planning Division and authorize staff to begin lease negotiations with
the Leaseholder for the proposed redevelopment.
B. Direct staff to prepare and bring back Requests for Proposals (RFPs) for the site.
FISCAL IMPACT
None expected. The existing lease is relatively modern and contains modern terms and conditions.
SUMMARY
The Leaseholder on lease site 62/62W has proposed a redevelopment project on their site. As
requested by the City, they have submitted a preliminary proposal for public comment and Council
consideration. Council is being asked to consider the proposal and provide staff direction on the
alternatives.
BACKGROUND
Lease site 62/62W is a 23-year City lease originally entered into in 1995 that expires in September
2018. This site is within the last five years of its lease term, and pursuant to the Lease Management
Policy the Leaseholders have submitted a written proposal for a modest redevelopment project on
the site. This site is one of the smallest lease sites on the waterfront.
AGENDA NO: D-2
MEETING DATE: June 11, 2013
Prepared By: ________ Dept Review:_____
City Manager Review: ________
City Attorney Review: ________
2
DISCUSSION
For Tidelands Trust Leases from Beach Street to Tidelands Park, the City’s Lease Management
Policy states:
“In this area, the City controls land and water areas. In this area tenants are
encouraged to propose redevelopments of lease sites to improve public benefits on
these sites, enhance the Embarcadero business environment, and renegotiate leases to
modern terms. To help accomplish this, and to provide tenants motivation not to let
long-term leases run to the very end of their terms with degraded
building/improvements, and under market lease terms, the City will generally not
renew leases with existing tenants in this area if they allow their leases to run to a
term of less than five years remaining.”
In addition, the City’s Lease Management Policy states that it will use the following standards for
determining whether it should negotiate a new lease with a tenant:
A. The tenant has a good history of performance and lease compliance and the
improvements on the site are well maintained. Example standards for determining
“good history” of lessee performance are:
1. The tenant’s record with respect to the prompt and accurate payment of rent
due the City;
2. The tenant’s record of compliance with existing lease conditions;
3. The appropriateness of the proposed tenant business with respect to the total
mix of uses and services available to the public and with respect to the long-
term planning goals of the City;
4. The tenant’s financial and personal investment in tenant business and the
leasehold improvements;
5. The contribution to the surrounding business community made by the
tenant’s business;
6. The quality of direct services to the public provided by the tenant and its
business;
7. The value received by the public in goods or services.
8. The total financial return to City from the leasehold;
9. Other pertinent considerations as may be appropriate as determined by the
City Council.
Pursuant to the Lease Management Policy, the Leaseholder has submitted a redevelopment proposal.
The proposal consists of removal of the existing one-story storage building in the southwest corner
of the site to open up the views, addition of the water-side walkway to eventually connect to the
neighboring lease site to the north, remodeling of the existing dock including addition of a small
storage shed on the dock, and general updating and refurbishing of the site and main building. A
copy of their proposal is included in this report.
3
Alternative A is would accept the Leaseholder’s proposal and direct staff to begin negotiating
preliminary terms and conditions of a new lease, while the Leaseholder would concurrently file an
Application with the City Planning Division to begin the development process. In addition, staff
would work with the Leaseholder on furthering the details of their proposed project. Staff is
recommending Alternative A.
Alternative B would put the lease site out for RFPs. The existing Leaseholder could submit a
proposal in this alternative. Should this alternative be chosen, staff will begin work on crafting an
RFP for future Council approval.
CONCLUSION
Based on the Leaseholder’s modest redevelopment proposal on their small but successful lease site,
staff recommends Alternative A as outlined. This Leaseholder is a tenant in good standing and is
considered to have a “good history of lessee performance.”
Staff Report
AGENDA NO: D-3
MEETING DATE: 6/11/13
Prepared By: __RL____ Dept Review:_____ City Manager Review: ________
City Attorney Review: ________
TO: Honorable Mayor and City Council DATE: June 4, 2013
FROM: Rob Livick, Public Services Director
SUBJECT: 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
SUMMARY
This item was agendized for the May 28, 2013 City Council meeting as Item D-6. It became
apparent that there was not enough time to hear all the New Business items that evening; as such, it
was decided to open up for public comment from those in attendance and then continue this item to a
future meeting.
Attached is the staff report from the May 28, 2013 meeting in its entirety.
Prepared By: __KW_ Dept Review:_____ City Manager Review: ________
City Attorney Review: ________
Staff Report
TO: Honorable Mayor and City Council DATE: May 22, 2013
FROM: Kathleen Wold, Planning Manager
SUBJECT: 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
RECOMMENDATION
Staff recommends that the Council 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.
ALTERNATIVES
An alternative would be to consider the three Zoning Ordinances separately and direct staff to
submit to Coastal Commission one, two, or three of the amendments or any combination thereof.
FISCAL IMPACT
There is no fiscal impact to this report as it only presents a status update on Zoning Ordinance
Amendments.
BACKGROUND
Staff has provided for you a packet of information for each Ordinance change. In reviewing the
minutes from each project, staff determined that there were no members of the public who spoke
regarding the Wireless or the Main Street parking amendment during the public hearing process
either pro or con. In addition, the motions that were made on these two amendments were passed
unanimously by City Council. Since these two Ordinance Amendments were approved by Council
without concerns, staff will focus on the Secondary Unit Ordinance Amendment. In order to provide
the issues that were brought up during the Public Hearing in a concise manner, staff has excerpted
from the February 14, 2012 minutes item B-2, which are as follows:
Councilmember Smukler asked for a review of history as to how we came to the
AGENDA NO: D-6
MEETING DATE: May 28, 2013
2
existing regulations of the 900 square feet to both Public Services Director Livick
and City Attorney Schultz. He followed up with a question of whether we did a
review of other coastal communities in our county of what their regulations are
for secondary units.
Mayor Yates opened the hearing for public comment.
Jamie Irons brought up the fact that there is no data from Planning staff or the
public that the current Ordinance even had a problem. He also questioned why it
wasn’t certified back in 2005. There was a 3 day public workshop when this
Ordinance was originally crafted and now Council majority is asking to revise
that process; he asked that Council reconsider these actions and send it back to a
public workshop to do it the right way.
Betty Winholtz concurred with Mr. Irons. She is concerned with the potential of
being able to build 2 homes on a lot, each 1200 square feet and then subdivide
them and sell both off. She feels there are 3 things being repeated in the staff
report that she wants to correct. She feels it is in error that: we are fixing our
Ordinance in regards to compliance with State law; that we are increasing small
affordable housing units; and, that we are ensuring compatibility with existing
neighborhoods. We should listen to public input and shouldn’t undermine the
public process.
John Barta commented that the granny unit issue is not about land being
subdivided and sold separately, never was and never will be. Granny units are
there because they allow us to have a healthy community. No one is going to be
required to build a 1200 sq foot granny unit. From 2005 to the present we have
had a more restrictive process and as a result, very few granny units have been
built. In order to have a viable community where people can afford to live, we
will need a robust granny unit program.
Mayor Yates closed the hearing for public comment.
Councilmember Smukler felt that there wasn’t enough data to move forward with
this tonight. He also feels we would be abandoning the public process by moving
forward. If we plan on changing, we should have another public workshop. He
feels that 900 square feet is a fair and more affordable number and wants to stick
with the existing Ordinance that was developed through the public process and
move forward with the certification of that.
Councilmember Leage thinks the owner of the property should have the choice of
up to 1200 square feet and agrees that just because you can, doesn’t mean you
3
will. He doesn’t feel 1200 square feet is too big as long as the property owner
feels they can rent it out.
Mayor Yates doesn’t see a problem with this and feels it’s irrelevant to compare
us with what other communities are doing. He also doesn’t feel that 1200 square
feet is too big nor does she feel that everybody building a secondary unit to 1200
square feet will occur.
Councilmember Johnson is good with this as well. She feels that 1200 square feet
is still a reasonably sized smaller home and that this subject has been “work
shopped” enough as we’ve had 2 public hearings already.
Councilmember Borchard agreed, public process has been on-going on this issue
and in fact we are having a public process on it right now. A 1200 square foot
limit would help the applicants expedite a project as well as save costs without
having to go to a CUP. This should also help with our housing inventory.
MOTION: Councilmember Borchard moved the City Council approve Item B2 as
presented in the staff report. The motion was seconded by Councilmember
Leage and carried 4-1 with Councilmember Smukler voting no
The minutes indicate that there was discussion by the public and the Council over the issue of the
appropriate size of a secondary unit and whether or not the existing Ordinance is flawed.
CONCLUSION
Staff recommends that the Council review the materials presented in the packet and provide
direction on how to proceed. If the Council determines that the three Ordinance amendments are
ready to submit to the Coastal Commission as presented in this staff report, staff will immediately
prepare an application and submit to the Commission by June 14, 2013. If the Council does not feel
that all three are ready, staff will prepare any amendment deemed ready for submittal to the Coastal
Commission.
ATTACHMENTS
1. Section 17.48.32 (Secondary Units) materials
2. Section 17.44.020.1 (North Main Street Commercial Area Parking)
3. Section 17.27 (Antennas and Wireless Telecommunications Facilities.
Prepared By: __________ Dept Review:_____
City Manager Review: ________
City Attorney Review: ________
Staff Report
TO: Honorable Mayor and City Council DATE: June 5, 2013
FROM: Robert Schultz, City Attorney
SUBJECT: Approval of 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.
RECOMMENDATION
Staff recommends that the City Council 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.
ALTERNATIVES
1. Approve the Lease Agreement as is.
2. Recommend changes to the Lease Agreement for further negotiation.
FISCAL IMPACT
$ 16,800 Annually
SUMMARY
The approval of the attached Lease Agreement will allow the City of Morro Bay to use the
property at 307 Morro Bay Blvd. for a public restroom and open space area. It is Staff’s
recommendation that the City sublease the property in order to offset the cost to maintain the
public restroom and open space area.
DISCUSSION
For a number of years it has been a high priority and goal of the City Council to obtain a
public restroom in the downtown area. The property at the corner of Morro Bay Blvd. and
Main Street has been previously rented out as a wine bar and more recently as Todd’s Green
Machine which rented Segways to the public. The property has been vacant for
approximately a year. The building already has a handicapped approved bathroom that with
AGENDA NO: D-4
MEETING DATE: June 11, 2013__
Staff Report
307 Morro Bay Blvd. Lease Agreement
Page 2
slight modifications can be ready for public use.
The City has negotiated the attached Lease Agreement. The Lease is for 5 years with an
option to extend it for an additional 5 years. The Lease also has a clause that if the owner
decides he wants to sell the property the City has a right of first refusal to purchase the
property.
It is Staff’s recommendation that the City Council approve the attached Lease Agreement
and direct Staff to solicit proposals to sublease the space in order to reduce the General Fund
costs.
CONCLUSION
Staff recommends that the City Council approve the attached Lease Agreement.
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L E A S E
This lease agreement (the “Lease”) is made and entered into by and between the CITY
OF MORRO BAY, a municipal corporation of the State of California herein called TENANT,
and Scott Meisterlin, herein called LANDLORD, and shall be deemed effective on the 1st day of
June, 2013 (the “Effective Date”), notwithstanding the final date of execution by the parties, or
the date of formal municipal approval by TENANT.
WITNESSETH
WHEREAS, TENANT is in need of public restroom facilities and open public space in
the downtown area for purposes of fulfilling the needs of the residents and visitors of the City of
Morro Bay; and
WHEREAS, TENANT desires to lease a certain portion of the LANDLORD’S real
property for the purpose of providing public restroom facilities and creating a quality and
attractive open space area for the public in the downtown area. The proposed public restroom
facilities and open space, which is described on Exhibit “A” (the “Premises”), is located on
Assessor’s Parcel Number 006-062-006, in Morro Bay, California, and is more particularly
described as 307 Morro Bay Blvd., Morro Bay, CA 93442.
NOW, THEREFORE, in consideration of the covenants to be performed and the rent to
be paid by TENANT to LANDLORD, LANDLORD hereby leases the Premises to TENANT,
upon the terms, covenants and conditions herein set forth.
ARTICLE 1 FIXED TERM
Section 1.01 Term.
The term of this Lease shall be a period of five (5) years, commencing June 1, 2013 (the
"Commencement Date"). The term of this Lease shall terminate without notice on May 30,
2018, unless sooner terminated as herein provided.
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Section 1.02 Option and Right of First Refusal to Purchase.
The term of this Lease may be extended by the TENANT for an additional period of
five (5) years provided that written notice of TENANT’S unequivocal and unambiguous
intention to exercise this option is given by TENANT to LANDLORD prior to July 1, 2017. All
provisions of this Lease applicable to the original term thereof shall apply with equal force to the
extended term.
In addition to the option to extend the Lease for five (5) years, the LANDLORD and
TENANT are currently working together and negotiating to process a subdivision of
LANDLORD’s property as depicted in Exhibit “B”. If the LANDORD and TENANT are
successful in the subdivision of LANDLORD’s property, then the LANDLORD hereby grants
TENANT a right of first refusal to purchase the leased premises depicted in Exhibit “A” during
the term of occupancy. TENANT agrees not to rezone said premises during the term of
occupancy without LANDLORD’s written approval. Should the subdivision be successful and
LANDLORD decide to attempt to sell leased premises hereunder during the term of TENANT's
right of first refusal, LANDLORD shall provide TENANT with a written notice of the terms on
which LANDLORD is willing to sell. Said notice to TENANT shall identify the leased premises
for which the notice is given, include a sale price for said leased premises and provide the terms
of payment for said sale price. LANDLORD shall also have the right to amend said notice;
however, said amended notice shall be treated as a new notice. For a period of forty-five (45)
days after receipt of said written notice, TENANT shall have the option to purchase the premises
on the terms stated in the notice. Should TENANT fail to exercise the option within the option
period, LANDLORD shall have the right to sell the premises to a third party provided such sale
is at a price equal to or greater than that in the notice given to TENANT. Any sale at a lesser
price reinstates TENANT's right of first refusal. If LANDLORD has not closed a sale of the
property within seven (7) months after TENANT's receipt of written notice, TENANT's right of
first refusal shall be reinstated.
Section 1.03 Hold Over.
With the express written consent of LANDLORD, TENANT shall have the right to hold
over after the expiration of this lease, with the tenancy to continue on a month to month basis,
terminable on thirty (30) days written notice from either party, at a monthly rental equal to the
amount paid per month for the twelve (12) months immediately preceding the expiration of the
Lease, and otherwise subject to each and every term, covenant and condition of this Lease.
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ARTICLE 2 RENT
Section 2.01 Annual Rent.
TENANT agrees to pay to LANDLORD a rental amount for the use and occupancy of
the Premises, in the amount of $1,400 per month or $16,800 per year (the "Rent"), payable in
advance either on June 1st, of each year or the 1st day of each month, which payment method
shall be at the election of LANDLORD, during the term of the Lease. All Rent shall be paid in
lawful money of the United States of America, without offset or deduction and shall be paid to
LANDLORD at 3647 Laketree Drive, Fallbrook, CA 92028, or at such other place or places
LANDLORD may from time to time designate by written notice delivered to TENANT.
Notwithstanding the foregoing the initial payment for rent due hereunder for June 1, 2013, shall
be due and payable upon TENANT’S execution of this Lease.
Section 2.02 Adjustment to the Rent.
Commencing June 1, 2016, the rental amount for the use and occupancy of the Premises
shall be adjusted to $1,600 per month or $19,200 per year. If TENANT exercises its option under
Section 1.02 to extend the Lease for five (5) years, then commencing June 1, 2020, the rental
amount for the use and occupancy of the Premises shall be adjusted to $1,800 per month or $21,600
per year.
Section 2.03 Reimbursements.
If TENANT fails to perform any term or covenant of this Lease, LANDLORD may, but
is not obligated to, perform such term or covenant, and TENANT shall reimburse LANDLORD
for any and all costs incurred by LANDLORD, including any attorney’s fees and costs, as
additional Rent hereunder. Such additional Rent shall be due and payable within thirty (30)
calendar days following LANDLORD’S written notice to TENANT requesting reimbursement
hereunder. As an illustration and not as a limitation, if TENANT fails to procure the insurance
required by this Lease, LANDLORD may, but is not obligated to, obtain such insurance, with the
cost of the premiums paid by LANDLORD would be thereafter due to LANDLORD as
additional Rent within thirty (30) following LANDLORD’S written demand for reimbursement,
as additional Rent.
Section 2.04 Real Property Taxes.
In addition to the annual Rent described in Section 2.01, TENANT shall pay, as
additional rent due hereunder, all and any additional real property taxes, or other assessments,
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which arise or are otherwise assessed, levied or imposed upon the Premises, or the real property
which the Premises are a part of, whether said taxes are imposed as secured or unsecured taxes,
as to all such taxes or assessments which are based upon the improvements and facilities or other
installations which are made or maintained by TENANT at the Premises during the term of this
Lease. Said additional rent shall be due and payable on April 1st and December 1st of each
calendar year during the term of this Lease. LANDLORD shall provide TENANT with a copy of
the LANDLORD’s annual property tax billing statement not less than thirty (30) days prior to
such additional rent being due, together with LANDLORD’S computation of the additional rent
due hereunder, if any.
Section 2.05 Penalty and Interest.
(1) If any Rent is not received within five (5) days following the date on which the Rent
first became due, TENANT shall pay a late charge of ten percent (10%) of the amount of the
unpaid delinquent Rent, said charge shall be paid in addition to the Rent on the first day of the
following month.
(2) In addition to the late Rent charge, TENANT shall pay interest at the rate of one
percent (1%) per month on the amount of the Rent, exclusive of the late Rent charge, such
interest shall begin accruing thirty ( 30) days from the date on which Rent first became due until
paid. The term "Rent" includes any sums advanced by the LANDLORD and any unpaid
amounts due from TENANT to the LANDLORD under the terms of this Lease.
ARTICLE 3 USE OF PREMISES
Section 3.01 Permitted Uses.
The Premises shall, during the term of this Lease, be used for the purpose of TENANT
fulfilling the need of a public restroom facilities and open public space in the downtown area for
purposes of fulfilling the needs of the residents and visitors of the City of Morro Bay; and as may
be determined by the TENANT to be required for carrying out and enjoying the rights and
privileges granted hereunder on said property. The LANDLORD understands that TENANT
intends to sublease the premises to a third party to operate and maintain the restroom and public
area and TENANT agrees to comply with Section 8.02 of this Lease.
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Section 3.02 Unauthorized Use.
TENANT agrees to allow only those uses authorized in Section 3.01 herein above or any
other uses approved in writing by the LANDLORD and that any unauthorized use thereof shall
constitute a breach of this Lease and shall, at the option of LANDLORD, terminate this Lease.
Section 3.03 Compliance with Law.
TENANT shall, at no cost to LANDLORD, comply with all of the requirements of all
local, municipal, county, state and federal authorities now in force, or which may hereafter be in
force, pertaining to the Premises, and shall faithfully observe in the use of the Premises all local,
municipal and county ordinances and state and federal statutes, rules, regulations and orders now
in force or which may hereafter be in force (collectively, "Legal Requirements") provided that
TENANT shall not be required to comply with any Legal Requirement imposed by the
LANDLORD that would substantially deprive TENANT of a material benefit under this lease
unless such Legal Requirement has been imposed or required by a county, state or federal
authority. The judgment of any court of competent jurisdiction, or the admission of TENANT in
any action or proceeding against TENANT, whether LANDLORD be a party thereto or not, that
TENANT has violated any such Legal Requirement in the use of the Premises shall be
conclusive of that fact as between LANDLORD and TENANT.
Section 3.04 Waste or Nuisance.
TENANT shall not commit or permit the commission by others of any waste on or at the
Premises; TENANT shall not maintain, commit, or permit the maintenance or commission of
any nuisance as defined by law on the Premises; and TENANT shall not use or permit the use of
the Premises for any unlawful purpose.
ARTICLE 4 CONSTRUCTION, ALTERATION AND REPAIRS
Section 4.01 Construction Approval.
TENANT shall not make or permit any other person to make any alterations or structural
additions or structural modifications to the Premises or to any structure thereon or facility
appurtenant thereto if the cost thereof shall exceed ten thousand dollars ($10,000), without the
prior written consent of LANDLORD.
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Section 4.02 Mechanics' Liens.
At all times during the term of this Lease, TENANT shall keep the Premises and all
buildings, installations and other improvements now or hereafter located on the Premises free
and clear of all liens and claims of liens for labor, services, materials, supplies, or equipment
performed on or furnished to the Premises. TENANT further agrees to at all times, hold
LANDLORD free and harmless and defend and indemnify LANDLORD against all claims for
improvements, labor or materials in connection with any improvement, construction work,
repairs, or alterations on or at the Premises, and the cost of defending against such claims,
including reasonable attorneys' fees. Should TENANT fail to pay and discharge or cause the
Premises to be released from such liens or claim of liens within ten (10) days after the filing of
such lien or levy, TENANT shall upon written notification be required to immediately deposit
with LANDLORD a bond conditioned for payment in full of all claims on which said lien or
levy has been filed. Such bond shall be acknowledged by TENANT as principal and by a
company or corporation, licensed by the Insurance Commissioner of the State of California to
transact the business of a fidelity and surety insurance company as surety. LANDLORD shall
have right to post and keep posted on the Premises notices of non-responsibility and any other
notices that may be provided by law or which LANDLORD may deem proper for the protection
of LANDLORD and Premises from such liens. TENANT shall give LANDLORD notice at least
twenty (20) days prior to commencement of any work on the Premises to afford LANDLORD
the opportunity to post such notices.
Section 4.03 Ownership of Improvements.
All non-structural improvements contemplated by this Lease and installed by TENANT
shall be the sole and exclusive property of TENANT. The parties agree that LANDLORD has
the right to require TENANT to remove, at TENANT’S sole cost and expense, all buildings,
structures, installations, improvements of any kind or other property belonging to or placed upon
the Premises by TENANT (“TENANT Improvements”), at the termination of this Lease, for
whatever reason and however occurring, providing LANDLORD gives notice, in writing, no
later than ten (10) days following the termination of the Lease, of its decision to require that such
improvements be removed. The parties agree that if the LANDLORD exercises its option, then
at the termination of this Lease, however occurring, TENANT shall have two (2) months
thereafter to remove all nonstructural TENANT Improvements from the Premises. Those
TENANT Improvements remaining after the two month period shall be deemed the property of
LANDLORD. During the course of such removal, TENANT shall pay to LANDLORD a
monthly removal license fee (the “Monthly License Fee”) equal to 1/12 of the annual rent
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accruing under this Lease immediately prior to the termination of this Lease. Said Monthly
License Fee shall be payable on the first calendar day of each month, until the date that all of the
TENANT Improvements have been removed in accordance with this Paragraph. In addition,
TENANT shall pay all costs and expenses associated with said removal, including the costs to
repair the Premises, and any lost rent incurred by LANDLORD. Should the TENANT fail to
remove all TENANT Improvements subject to the LANDLORD’S notice hereunder at the end of
said two (2) month period, then LANDLORD shall have the right to remove the same, and
TENANT shall reimburse LANDLORD for all of LANDLORD’S costs and expenses incurred in
the course of the removal of the TENANT Improvements.
ARTICLE 5 MAINTENANCE, INSPECTION AND DESTRUCTION
Section 5.01 Maintenance by TENANT.
At all times during the term of this Lease, TENANT shall, at TENANT'S own cost and
expense, keep and maintain the Premises in good order and repair and in a safe and clean
condition, also including all pipes and wires (such as any gas, water, sewage or electricity lines)
that service the premises but which lines may extend beyond the boundaries of the premises.
Section 5.02 Legal Requirements.
At all times during the term of this Lease, TENANT, at no cost to LANDLORD,
shall:
(1) Make all legally required alterations, additions, or repairs to the Premises
or the improvements or facilities on the Premises;
(2) Observe and comply with all laws and regulations now or hereafter made
or issued respecting the Premises or the improvements or facilities located thereon;
(3) Obtain all required permits pursuant to the Morro Bay Municipal Code,
State law, or any other legal authority, prior to the initiation of any improvement, repair or
maintenance to the Premises; and
(4) Indemnify and hold LANDLORD and the property of LANDLORD,
including the Premises, free and harmless from any and all liability, loss, damages, fines,
penalties, claims and actions resulting from TENANT'S failure to comply with and perform the
requirements of this section, including TENANT’S attorney’s fees and costs.
Section 5.03 Inspection by LANDLORD.
LANDLORD or LANDLORD'S agents, representatives, or employees may enter the
Premises at all reasonable times with adequate reasonable notice to the TENANT for the purpose
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of inspecting the Premises to determine whether TENANT is complying with the terms of this
Lease and for the purpose of doing other lawful acts that may be necessary to protect
LANDLORD'S interest in the Premises under this Lease, or to perform LANDLORD'S duties
under this Lease, or to exercise LANDLORD’S rights under this Lease.
Section 5.04 Termination of Lease for Destruction.
Notwithstanding the provisions of this Lease, upon sixty (60) days written notice to
LANDLORD, TENANT shall have the right to terminate this Lease if the Premises are so
damaged or destroyed by any cause not the fault of TENANT or LANDLORD (with the
exception of illegal acts of others) such that the Premises are incapable for their intended use
under this Lease, subject to LANDLORD’S right to cure within that sixty (60) day period.
ARTICLE 6 INDEMNITY AND INSURANCE
Section 6.01 Indemnity Agreement.
(1) TENANT shall indemnify and hold LANDLORD, and the property of LANDLORD
(including the Premises and any improvements now or hereafter on the Premises), and the
LANDLORD'S Trustees, agents, officers, officials, employees and volunteers, harmless, and
defend such parties from any and all liability, claims, loss, damages, and expenses, including
attorney fees and litigation expenses, resulting from TENANT'S occupation and use of the
Premises, or any negligent act or omission of the TENANT, or the acts or omissions of
TENANT’S employees, contractors or anyone for whom TENANT may be liable, specifically
including, without limitation, any liability, claim, loss, damage, or expense arising by reason of:
(a) The death or injury of any person, including TENANT or any person who is
an employee or agent of TENANT, or by reason of the damage to or destruction of any property,
including property owned by TENANT or by any person who is an employee or agent of
TENANT, from any cause whatever while such person or property is in or on the Premises or in
any way connected with the Premises or with any of the improvements or personal property on
the Premises;
(b) The death or injury of any person, including TENANT or any person who is
an employee or agent of TENANT, or by reason of the damage to or destruction of any property,
including property owned by TENANT or any person who is an employee or agent of TENANT,
caused or allegedly caused by either (i) the condition of the Premises or any improvement
placed or maintained on the Premises by TENANT, or (ii) any act or omission on the Premises
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by TENANT or any person in, on, or about the Premises with or without the permission and
consent of TENANT;
(c) Any work performed on the Premises or materials furnished to the Premises at
the instance or request of TENANT or any person or entity acting for or on behalf of TENANT;
(d) TENANT'S failure to perform any provision of this Lease or to comply with
any Legal Requirement imposed on TENANT or the Premises.
(2) TENANT'S obligations pursuant to this Section to indemnify and hold harmless do
not extend to any liability, claim, loss, damage or expense arising from LANDLORD'S gross
negligence or willful misconduct.
Section 6.02 Liability Insurance.
During the term of this Lease, TENANT shall maintain at its cost Commercial General
Liability insurance. Such insurance shall initially afford protection in amounts no less than One
Million Dollars ($1,000,000) per occurrence for bodily injury, personal injury and property
damage, provided that if insurance with a general aggregate limit is used, either the general
aggregate limit shall apply separately to the Premises or the general aggregate limit shall be
twice the occurrence limit stated in this Section. LANDLORD shall have the right, during the
term of this Lease, or any extension thereof, to require TENANT to increase the policy limits
herein provided for, based upon the customary insurance requirements then being required by
commercial landlords for real property leases in the Morro Bay vicinity.
ARTICLE 7 UTILITIES
Section 7.01 Utilities.
TENANT shall pay, or cause to be paid, and hold LANDLORD and the property of
LANDLORD, including the Premises, free and harmless from all charges for the furnishing of
gas, water, electric, trash, telephone service, and for other public utilities to the Premises during
the term of this Lease.
ARTICLE 8 ASSIGNMENT AND SUBLEASING
Section 8.01 No Assignment Without LANDLORD'S Consent.
TENANT shall not assign or otherwise transfer this Lease, any right or interest in this
Lease, or any right or interest in the Premises or any of the improvements that may now or
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hereafter be constructed or installed on the Premises without the prior express written consent of
LANDLORD. Any assignment or transfer by TENANT without the prior written consent of
LANDLORD, whether it be voluntary or involuntary, by operation of law or otherwise, is void
and shall, at the option of LANDLORD, terminate this Lease. A consent by LANDLORD to one
assignment shall not be deemed to be a consent to any subsequent assignment of this Lease by
TENANT. LANDLORD shall not unreasonably nor arbitrarily withhold its approval to the
assignment or transfer of this Lease to an assignee who is financially reliable and qualified to
conduct the business for which this Lease was granted. It is mutually agreed that the TENANT'S
financial and unique municipal qualifications are a part of the consideration for granting of this
Lease and that TENANT does hereby agree to maintain active control and supervision of the
operation conducted on the Premises.
Section 8.02 No Sublease Without LANDLORD'S Consent.
TENANT shall not sublease the whole nor any part of the Premises, or license, permit, or
otherwise allow any other person (the employees of TENANT excepted) to occupy or use the
Premises, or any portion thereof, without the prior written consent of LANDLORD. A consent
to one subletting, occupation, licensing or use shall not be deemed to be a consent to any
subsequent subletting, occupation, licensing or use by another person. Any sublease or license
without LANDLORD'S written consent shall be void, and shall at LANDLORD'S option,
terminate this Lease. LANDLORD shall not unreasonably nor arbitrarily withhold its consent to
sublet to any assignee who is both objectively qualified and financially reliable. LANDLORD'S
consent to any occupation, use, or licensing shall be in LANDLORD'S sole and absolute
discretion. In the event that any sublet or assignment involves radio-transmission facilities,
LANDLORD’S consent may be reasonably conditioned up the LANDLORD’S right to receive
additional rent from any proposed subtenant or assigned.
Section 8.03 Subtenant Subject to Lease Terms.
Any and all subleases shall be expressly made subject to all the terms, covenants, and
conditions of this Lease. In no event shall the term of any sublease extend beyond the term of
this Lease. Termination of this Lease prior to the natural term expiration of this Lease term, or at
the natural term expiration shall also terminate any and all subleases unless otherwise
specifically agreed by LANDLORD. A breach of the terms of this Lease by a subtenant shall
constitute a breach on the part of TENANT and shall subject both the subtenant and TENANT to
all the remedies provided to LANDLORD herein and by law.
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ARTICLE 9 DEFAULT AND TERMINATION
Section 9.01 Termination for a Non-Rental Breach by TENANT.
All covenants and agreements contained in this Lease are declared to be conditions to this
Lease and to the term hereby demised to TENANT. Should TENANT fail to perform any
covenant, condition, or agreement contained in this Lease, except for payment of any Rent or
other monetary amount due hereunder, and such failure is not cured within thirty (30) days after
written notice thereof is served on TENANT, then LANDLORD may terminate this Lease
immediately, and in the event of such termination, TENANT shall have no further rights
hereunder and TENANT shall thereupon forthwith remove from the Premises, subject to the
provisions of Section 4.03, and shall have no further right or claim thereto and LANDLORD
shall immediately thereupon have the right to re-enter and take possession of the Premises,
subject only to appropriate legal process.
Section 9.02 Termination for Failure to Pay Rent.
If any payment of Rent is not made as herein provided and such failure to pay is not
cured within three (3) days after written notice thereof is served on the TENANT, LANDLORD
shall have the option to immediately terminate this Lease; and in the event of such termination
TENANT shall have no further right or claim hereunder and LANDLORD shall immediately
thereupon have the right to re-enter and take possession of the Premises under applicable law,
subject only to appropriate legal process and the requirements related to ownership of
Improvements, and removal of the same set forth in Section 4.03.
Section 9.03 Cumulative Remedies.
The remedies available to LANDLORD in this Article shall not be exclusive but shall be
cumulative with and in addition to all remedies now or hereafter allowed by law or elsewhere
provided in this Lease.
Section 9.04 Waiver of Breach.
The waiver by LANDLORD of any breach by TENANT of any of the provisions of this
Lease shall not constitute a continuing waiver or a waiver of any subsequent breach by TENANT
either of the same or a different provision of this Lease.
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ARTICLE 10 MISCELLANEOUS
Section 10.01 Attorneys' Fees.
Upon the execution of this agreement, TENANT agrees to pay to LANDLORD, the
LANDLORD’S estimated attorneys in the amount of Two Thousand Dollars ($2,000.00) in
consideration for the costs of negotiating and executing this lease agreement and reviewing the
necessary attachments and descriptions.
To the extent that LANDLORD is required to retain counsel, in order to assert, protect or
address LANDLORD’S interests in this lease as a result of a default of TENANT under Sections
9.01, 9.02, or as a result of a petition or filing by TENANT under Title 11 of the United States
Code, TENANT shall either retain and pay for LANDLORD’S legal representation or shall pay
LANDLORD’S attorney’s fees and costs incurred.
Section 10.02 Notices.
Any and all notice or demands by or from LANDLORD to TENANT, or TENANT to
LANDLORD, shall be in writing. They shall be served either personally, or by registered or
certified mail. Any notice or demand to LANDLORD may be given to:
Any notice or demand to TENANT may be given at:
City of Morro Bay
City Attorney’s Office
595 Harbor Street
Morro Bay, CA 93442
Any notice or demand to LANDLORD may be given at:
Scott Meisterlin
3647 Laketree Drive
Fallbrook, CA 92028
Such addresses may be changed by written notice by either party to the other party.
Notice hereunder shall be deemed received one (1) calendar day following the deposit of such
notice in the U.S. Mail, first class postage pre-paid, and addressed in accordance with the
provisions of this Section.
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Section 10.03 Governing Law and Jurisdiction.
This Lease, and all matters relating to this Lease, shall be governed by the laws of the
State of California in force at the time any need for interpretation of this Lease or any decision
concerning this Lease arises. LANDLORD and TENANT consent to exclusive personal and
subject matter jurisdiction in the Superior Court of the State of California in and for the County
of San Luis Obispo, California, and each party waives any claim that such court is not a
convenient forum. Each party hereby specifically waives the provisions of California Code of
Civil Procedure Section 394, and any successor statute thereto.
Section 10.04 Binding on Successors.
Subject to the provisions herein relating to assignment and subletting each and all of the
terms, conditions, and agreements herein contained shall be binding upon and inure to the benefit
of the successors and assigns of any and all of the parties hereto; and as their respective
obligations, each party and their respective successors and assigns shall be jointly and severally
liable hereunder.
Section 10.05 Partial Invalidity.
Should any provision of this Lease be held by a court of competent jurisdiction to be
either invalid, void, or unenforceable, the remaining provisions of this Lease shall remain in full
force and effect unimpaired by the holding.
Section 10.06 Sole and Only Agreement.
This Lease, which includes all exhibits and the negotiations incorporated by reference,
constitutes the sole and only agreement between LANDLORD and TENANT respecting the
Premises and the leasing of the Premises to TENANT. Any other agreements or representations
respecting the Premises and their leasing to TENANT by LANDLORD, which are not expressly
set forth in this Lease, are null and void. The lease terms herein specified correctly set forth the
obligations of LANDLORD and TENANT as of the date of this Lease. No modification,
amendment, or alteration of this Lease shall be valid unless it is in writing and signed by both
parties.
Section 10.07 Modification.
This agreement shall not be modified except pursuant to a written agreement executed by
the TENANT and LANDLORD. TENANT understands that this agreement may not be
modified by oral statements by any person representing the LANDLORD.
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Section 10.08 Time of Essence.
Time is expressly declared to be the essence of this Lease.
Section 10.09 Memorandum of Lease for Recording.
LANDLORD and TENANT shall, at the request of either at any time during the term of
this Lease, execute a memorandum or "short form" of this Lease, which shall describe the
parties, set forth a description of the leased premises, specify the term of this Lease, and
incorporate this Lease by reference.
EXECUTED on the dates set forth below, at Morro Bay, County of San Luis Obispo, California.
LANDLORD
Scott Meisterlin
_________________________________
By: Scott Meisterlin
Dated: _______________________
TENANT
CITY OF MORRO BAY, a municipal
corporation of the State of California
_________________________________
By: Jamie L. Irons, Mayor
ATTEST:
By: Jamie Boucher
City Clerk for the CITY OF MORRO BAY
Dated: _________________________
Dated:___________________________
Staff Report
TO: Honorable Mayor and City Council DATE: 06/04/13
FROM: Andrea K. Lueker, City Manager
SUBJECT: Water Reclamation Facility (WRF) Project Status and Discussion
RECOMMENDATION
Discuss in open session, the progress to date on the Water Reclamation Facility (WRF) and provide
direction to staff as necessary.
ALTERNATIVES
Not applicable at this time.
FISCAL IMPACT
Not applicable at this time.
SUMMARY
Staff has provided this report as a bi-weekly update to the progress made to date on the new WRF
project. As discussed and decided by consensus at the May 28, 2013 City Council meeting, staff
will be providing this report on a monthly basis, at the first City Council meeting of the month.
BACKGROUND
With the denial of the permit for the WWTP project in its current location, the City has embarked on
a process for a WRF. This staff report provides a review of what has occurred to date as well as
provides the City Council an opportunity for open discussion on the WRF project.
DISCUSSION
Below is a brief review of dates, status and accomplishments on the WRF facility project. Note the
bolded information has been added since your last review on 5/14/13.
Date Action_________________________________________________________
01/03/13 Special City Council meeting – City Adopted Resolution No. 07-13
recommending denial of the WWTP project.
01/08/13 WWTP Project denied by the California Coastal Commission (CCC).
01/08/13 January JPA not held due to CCC meeting.
AGENDA NO: D-5
MEETING DATE: 06/11/13
Prepared By: ________ Dept Review:_____ City Manager Review: ________ City Attorney Review: ________
2
01/24/13 City Staff, Morro Bay JPA Sub-Committee, Cayucos SD representatives, staff
and attorney meet and discuss strategy and moving forward.
02/14/13 February JPA meeting held, “Discussion and Consideration of Next Steps for
the WWTP Upgrade Project” was on the agenda and discussed.
02/26/13 City Council meeting - draft schedule/project timeline presented to City
Council.
City Council directed staff to prepare an RFP for a project manager.
03/11/13 City Council goal session, WRF established as Essential City Goal.
03/14/13 City Council goal session, WRF established as Essential City Goal.
03/14/13 March JPA meeting held, “Status Report on the Discussion with RWQCB
Staff Renewal Process for the WWTP NPDES Permit No. CA0047881”
and “Verbal Report by the City and District on the Progress of the future
WWTP” were on the agenda and discussed.
03/18/13 RFP issued.
03/26/13 City Council meeting - City Council approves citizens to serve on the RFP
selection committee.
03/27/13 Announcement placed on City website, etc. regarding citizen selection
committee application period.
04/05/13 Citizen selection committee deadline.
04/09/13 City Council meeting - appointment of 5 citizens for the RFP selection
committee at City Council meeting.
04/10/13 Addendum to RFP issued, re: selection committee
04/11/13 April JPA meeting held, “Verbal Report by the City and District on the
Progress of the future WWTP” and Discussion and Approval to
Terminate the Consultant Services Agreements with Delzeit; Dudek,
McCabe and Company; and Montgomery Watson Harza (MWH)” were
on the agenda and discussed.
04/15/13 RFP due.
04/16/13 Study Session on WRF facility announced for April 29, 2013
04/23/13 City Council meeting –reaffirmation of 5 members of citizen
selection committee.
04/25/13 Quarterly Meeting with California Coastal Commission staff, WRF
discussion and status report on the meeting agenda.
04/25/13 Initial meeting with Selection Committee for the RFP for Planning Services
for the WRF.
04/29/13 WRF Study Session at Veteran’s Hall.
05/02/13 Interviews to recommend the individual/team for the WRF project
manage
05/09/13 May JPA meeting held, “Verbal Report by the City and District on the
Progress of the future WWTP” was on the agenda and discussed.
05/14/13 City Council meeting – Approval of John F. Rickenbach, Consulting as the
Preliminary Planning Consultant for the WRF project.
05/14/13 City Council meeting – Approval of John F. Rickenbach, Consulting as
the Preliminary Planning Consultant for the WRF project
05/15/13 Public Services staff continues to work with John F. Rickenbach,
Consulting to finalize the consultant contract.
05/28/13 Closed Session Item scheduled to discuss Righetti appraisal.
3
06/13/13 JPA Meeting – Cayucos Veteran’s Hall
CONCLUSION
City Council, since the denial of the WWTP permit in January has made measured and deliberate
progress in the WRF project, as outlined above.
Staff Report
AGENDA NO: D-6
MEETING DATE: 6/11/2013
Prepared By: __JB____ Dept Review:_____
City Manager Review: ________ City Attorney Review: ________
TO: Honorable Mayor and City Council DATE: (bold/no capital)
FROM: Andrea Lueker, City Manager
SUBJECT: Appointment of Voting Delegate(s) to the California Joint Powers Insurance
Authority
RECOMMENDATION
It is recommended the City Council 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.
ALTERNATIVES
1. The City Council can appoint a Councilmember to serve as the City’s representative and/or
alternate(s) to the CJPIA Board of Directors.
FISCAL IMPACT
There is no fiscal impact to this decision.
DISCUSSION
On June 23, 2003, the City Council adopted Resolution 38-03 approving the City’s membership in
CJPIA. The rules of this Joint Powers Agency call for each member agency to appoint a member of
its governing board to serve as a representative to the CJPIA Board of Directors. The CJPIA also
allows for member agency staff to serve as alternates. The full Board of Directors meets once a year
in July, this year the meeting is being held on Wednesday, July 17th at the CJPIA office in La Palma,
to elect officers and review claims history. Historically the City has appointed the Mayor to fulfill
the duties as the official representative on the CJPIA Board of Directors. It has also been common
for the City Attorney to attend these meetings in the Mayor’s stead.
CONCLUSION
As the annual meeting doesn’t occur for several months, it is staff’s recommendation that the
Council appoint Mayor Irons as the official representative to the CJPIA as well as City Attorney
Robert Schultz and City Manager Andrea Lueker as alternates. This gives the City enough time to
confirm who will be able to attend this meeting.