HomeMy WebLinkAboutCC_2019-02-13_MinutesMINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING — FEBRUARY 13, 2019
VETERAN'S MEMORIAL HALL — 6:00 P.M.
PRESENT: John Headding
Dawn Addis
Robert Davis
Jeff Heller
Marlys McPherson
STAFF: Jennifer Callaway
Chris Neumeyer
Dana Swanson
Rob Livick
Scot Graham
Matt Vierra
Jody Cox
Eric Endersby .
Sandy Martin
Eric Casares
STAFF ABSENT: Scott Collins
AGENDA NO: A-2
MEETING DATE: March 12, 2019
Mayor
Council Member
Council Member
Council Member
Council Member
Finance Director/Acting City Manager
City Attorney
City Clerk
Public Works Director
Community Development Director
Fire Marshal
Police Chief
Harbor Director
Budget/Accounting Manager
WRF Program Manager, Carollo Engineering
City Manager
ESTABLISH QUORUM AND CALL TO ORDER
Mayor Headding called the meeting to order at 6:00 p.m., with all members present.
MOMENT OF SILENCE
PLEDGE OF ALLEGIANCE
RECOGNITION — None
CLOSED SESSION REPORT —City Attorney Neumeyer stated no reportable action was taken
by the City Council in accordance with the Brown Act.
MAYOR & COUNCILMEMBERS' REPORTS, ANNOUNCEMENTS &PRESENTATIONS
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CITY MANAGER REPORTS, ANNOUNCEMENTS AND PRESENTATIONS
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PRESENTATIONS —Erica Crawford, Morro Bay Chamber of Commerce, provided an update
regarding the Saturday Farmers' Market which was recently discontinued.
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PUBLIC COMMENT
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Ginger DeNunzio, Sandprints Photography located at 870 Main Street, provided the business
spot. Sandprints is celebrating 10 years in Morro Bay and specializes in family portraits with a
majority of work done on location.
Diane Cogdal, Morro Bay, asked the City Council to replace the Surf Street staircase and improve
the appearance of the Front Street parking lot.
Rigmor, Morro Bay, was dissatisfied with the removal of the Surf Street staircase and new fencing
placed there.
Dawn Beattie, Morro Bay, spoke in support of Council Member Addis for her statements against
gender -based harassment and agreed it was important to speak out against such behavior.
Jen Ford, Morro Bay, is an advocate for civil liberties including freedom of speech but draws the
line at hate speech. She supported Council Member Addis and asked that City staff take all levels
of harassment seriously.
John Weiss, Morro Bay resident and business owner, urged the Council to find a pipeline route
that would have a lesser impact on Quintana businesses.
Malcolm, Morro Bay, spoke in support of medical and recreational cannabis use and urged the
City to take a position against the oil pipeline.
David Nelson, Morro Bay, provided comments on the proposed water reclamation facility project.
Teddy Lovett, Morro Bay, spoke in support of Council Member Addis and thanked her for speaking
out against gender -based harassment.
Linda Merrill, Morro Bay, agreed with those who spoke against gender -based harassment,
encouraged the Council to move forward with the WRF project, and requested the Council review
facility use fees to make it affordable for a community theater group.
Susan Stewart, Morro Bay resident and business owner, hoped the Chamber will find a new
manager for the Saturday Farmers' Market. She understood safety concerns regarding the Surf
Street staircase and noted the Morro Bay Historical Society will bring forward a proposed historical
preservation ordinance.
Erica Crawford, Morro Bay Chamber of Commerce, announced several upcoming events and
workshops.
Marcus Jackson, Morro Bay, thanked the Council for their service to the community and for
daylighting comments directed to Council Member Addis.
Mayor Headding closed public comment.
The Council and staff responded to issues raised during public comment.
A. CONSENT AGENDA
https://youtu.be/a icyjFrJOw?t=4355
Unless an item is pulled for separate action by the City Council, the following actions are approved
without discussion. The public will also be provided an opportunity to comment on consent
agenda items.
A-1 APPROVAL OF MINUTES FOR THE JANUARY 8, 2019 CITY COUNCIL MEETING;
(ADMINISTRATION)
RECOMMENDATION: Approve as submitted.
A-2 APPROVAL OF MINUTES FOR THE JANUARY 22, 2019 CITY COUNCIL SPECIAL
CLOSED SESSION MEETING; (ADMINISTRATION)
RECOMMENDATION: Approve as submitted.
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MINUTES - MORRO BAY CITY COUNCIL MEETING — FEBRUARY 13, 2019
A-3 APPROVAL OF MINUTES FOR THE JANUARY 24, 2019 CITY COUNCIL SPECIAL
MEETING; (ADMINISTRATION)
RECOMMENDATION: Approve as submitted.
A-4 RECEIVE AND FILE CITY RESPONSE TO BETTY WINHOLTZ REGARDING ALLEGED
BROWN ACT VIOLATION, AND PROVIDE COMMENT AS DEEMED APPROPRIATE;
(CITY ATTORNEY)
RECOMMENDATION: Receive Cl" file.
A-5 RESOLUTION NO. 11-19 APPROVING ADJUSTMENT TO LEASE SITE MAPS FOR
LEASE SITES 113W, 122W AND 123W; (LEASE HOLDERS: R. FOWLER AND T.
LEAGE); (PUBLIC WORKS)
RECOMMENDATION: City Council approve the adjustment to Lease Sites 113W,
122W and 123W by adopting Resolution No. 11A9.
A-6 ADOPTION OF RESOLUTION NO. 13-19 UPDATING THE CITY'S CONFLICT OF
INTEREST CODE; (CITY CLERK)
RECOMMENDATION: City Council update the City's Conflict of Interest Code by
adopting the proposed Resolution No. 13-19,
MOTION: Council Member McPherson moved for approval of all items on the Consent
Agenda. The motion was seconded by Council Member Davis.
The public comment period for the Consent Agenda was opened.
Nancy Bast, Morro Bay, spoke regarding Item A-4, expressing concerns water/sewer funds might
be used for efforts not exclusively for the water reclamation facility. She opposed the City paying
for Carollo's travel expenses to Washington D.C.
The public comment period was closed.
Mayor Headding pulled Item A-4.
A-4 RECEIVE AND FILE CITY RESPONSE TO BETTY WINHOLTZ REGARDING ALLEGED
BROWN ACT VIOLATION, AND PROVIDE COMMENT AS DEEMED APPROPRIATE;
(CITY ATTORNEY)
https:Hyoutu.be/a *cyiFrJOw?t=4355
City Attorney Neumeyer summarized points from the City's response to allegations of Brown Act
violations submitted by Ms. Winholtz. Finance Director Callaway clarified the funding sources
for those traveling to Washington D.C. for C-MANC and WRF project meetings.
Council Member McPherson withdrew her motion and Council Member Davis withdrew his
second.
MOTION: Mayor Headding moved for approval of Item A4. The motion was seconded by
Council Member Davis and carried 5-0 by roll call vote.
MOTION: Council Member McPherson moved for approval of the rest of the Consent
agenda. The motion was seconded by Council Member Davis and carried 5-0 by
roll call vote.
MINUTES - MORRO BAY CITY COUNCIL MEETING - FEBRUARY 13, 2019
B. PUBLIC HEARINGS - None
C. BUSINESS ITEMS
C-1 APPROVAL OF WATER RECLAMATION FACILITY PROJECT CONVEYANCE
PIPELINE ALIGNMENT AND PUMP STATION STRATEGY; (PUBLIC WORKS)
https:Hyoutu.be/a icyiFrJOw?t=4355
WRF Program Manager Casares presented the report and, along with Public Works Director
Livick, responded to Council inquiries.
Council Member Heller stated for the record his opposition to the project as currently planned and
asked staff to clarify $9.4 million contingency currently built into the project.
The public comment period for Item C-1 was opened.
Barr-y Branin, Morro Bay, opposed the conveyance pipeline alignment along Quintana Road and
suggested the project not move forward.
Dan Sedley, Morro Bay, requested the Council not take action on this item until the following
questions were studied and resolved: location of existing piping below Quintana Street, potential
impacts on Quintana businesses, impacts of a proposed lift station next to Lemos, and public
participation during the consolidated permitting process.
Dale Kinder, Morro Bay property owner, encouraged work on Quintana to be done at night and to
provide daily updates and information regarding road closures on AM/FM radio.
David Nelson, Morro Bay, read a letter submitted by Betty Winholtz listing several concerns about
the proposed project and suggested funds be used to fix existing pipes.
The public comment period for Item C-1 was closed.
MOTION: Council Member Heller moved the Council approve the west alignment piping for
the WRF project contingent upon two things: 1) creation of a conceptual level
traffic control plan to be part of the conceptual package that's to be delivered in
March, and 2) earmark $4 Million of the $9.4 Million reserves to provide financial
assistance to businesses along the piping route and to rectify sales tax losses to
the City. The motion died for lack of a second.
MOTION: Council Member McPherson moved the Council approve staffs recommendation
to proceed with the west conveyance pipeline alignment and use of the dual pump
station option for the Water Reclamation Facility project. The motion was
seconded by Council Member Addis.
Council Member Heller stated the City should be more responsive to needs of business
community or acknowledge its own losses of sales tax revenue for a year or more and could not
support the motion on the table.
The majority of Council expressed its concern about potential business impacts and the
importance of minimizing and mitigating those impacts to the greatest extent possible. The
importance of a written traffic plan and effective communication/outreach to businesses and
schools (including Los Osos Middle School) was stressed with a single point of contact to address
concerns during construction.
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MINUTES - MORRO BAY CITY COUNCIL MEETING — FEBRUARY 13, 2019
The motion carried 4-1 by roll call vote with Council Member Heller opposed.
Council took a brief recess at 8:38 p.m. The meeting reconvened at 8:48 p.m. with all members
present.
C-2 PRESENTATION AND DISCUSSION OF THE FISCAL YEAR 2017/18
COMPREHENSIVE ANNUAL FINANCIAL REPORT; (FINANCE)
https:Hvoutu.be/a icyiFrJOw?t=9429
Finance Director Callaway introduced Sandy Martin, Budget/Accounting Manager, and Kenneth
Pun of The Pun Group, who presented the report.
The public comment period for Item C-2 was opened; seeing none, the public comment period
was closed.
No formal action was taken by the City Council.
C-3 DISCUSS AND PROVIDE DIRECTION ON RATE SETTING (COLLECTION, PENALTY
AND INTEREST) FOR MORRO BAY COMMERCIAL CANNABIS TAX IN VOTER -
APPROVED CHAPTER 3.70 (CANNABIS TAX) OF TITLE 3 OF THE MORRO BAY
MUNICIPAL CODE; (CITY ATTORNEY)
https:Hyoutu.be/a OcyiFrJOw?t=12307
City Attorney Neumeyer provided the report and responded to Council inquiries.
The public comment period for Item C-3 was opened.
Sean Donahoe, SLO Retail Group LLC, spoke in favor of the staff recommendation.
Nick Andre, Natural Healing Center, spoke in support of the staff recommendation.
The public comment period for Item C-3 was closed.
There was Council support to bring back a resolution establishing cannabis tax rates
recommended by the Council sub -committee, as follows:
1. Commercial cannabis operations tax set at 504 of proceeds
2. Penalty rate for late payment of taxes set at 25%
3. Interest rate for late payment of taxes set at 10% and affirm monthly on principle of unpaid
tax.
C-4 ADOPT RESOLUTION NO. 12-19 ESTABLISHING THE CITY OF MORRO BAY
COMMUNITY GRANTS POLICY; (FINANCE)
https:Hyoutu.be/a Icy*FrJOw?t=13704
Finance Director Callaway provided the report and responded to Council inquiries.
The public comment period for Item C4 was opened; seeing none, the public comment period
was closed.
MOTION: Council Member McPherson moved the Council send the proposed Community
Grants Policy back to staff to make needed changes and then bring back to Council
at subsequent meeting. The motion was seconded by Mayor Headding.
The Council requested the following items be changed or clarified:
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MINUTES - MORRO BAY CITY COUNCIL MEETING — FEBRUARY 13, 2019
• Must have a clear purpose statement.
• Establish criteria that is similar in terms of background information needed, what they do,
and community benefit.
• Establish a process for holding the recipient accountable at the end — reporting back how
funds were spent and how those activities benefit Morro Bay.
• The application and reporting mechanism should be simplified to fit smaller organizations
with an application process that could also be used for TBID grants.
• Determine how the process will be advertised to community groups.
The Council agreed it was not necessary to approve the policy prior to the FY 19/20 budget
process and that a placeholder could be established with allocations done at a later date.
The motion carried 5-0 by roll call vote.
MOTION: Council Member McPherson moved establishing the following purpose statement
for the Community Grants Program, "It is discretionary money allocated to the City
Council for making monetary grants to community non-profit organizations that
provide a direct benefit to the city and/or provide social services to City of Morro
Bay residents." The motion was seconded by Council Member Davis.
AMENDED MOTION: Council Member Addis requested the motion be amended to remove the
word "social." Council Member McPherson accepted the friendly amendment. The
amended motion was seconded by Council Member Davis and carried 5-0 by roll
call vote.
There was Council consensus the TBID Grant Policy should have the same reporting
requirements.
C-5 HARBOR DEPARTMENT LEASE MANAGEMENT POLICY UPDATE; (HARBOR)
https://youtu.be/a icyjFrJOw?t=13704
Harbor Director Endersby provided the report and responded to Council inquiries.
The public comment period for Item C-5 was opened; seeing none, the public comment period
was closed.
Council feedback included the following comments:
• Item 6.C. Fair Market Rent is too prescriptive and should not be delineated by commercial,
non -profits and government.
• Section 6.0, Financial Partnership Criteria and Financing - provide detail that
encompasses some pro forma analysis.
• Consider establishing standards for lease extension (term) compared to work being done,
taking public benefit amenities into consideration.
• Explore possibility of having a professional lease manager, ratherthan Harbor Department
manage leases.
No formal action was taken by the City Council,
D. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
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Council Member Davis requested discussion of Barbara Spagnola's recommendations for
advisory board procedures for possible incorporation into the handbook, including establishing
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MINUTES - MORRO BAY CITY COUNCIL MEETING - FEBRUARY 13, 2019
clear expectations, appointment for specific terms, leaving positions vacant if applicants are not
qualified, and considering appointment of alternates to limit need for recruitments when a member
resigns. There was full Council support for this item.
Council Member Addis asked the Council to agendize a resolution opposing the Plains All
American Pipeline project that requires trucking oil across Santa Barbara, San Luis Obispo and
Kern County. There was full support to bring this item to the next meeting.
Mayor Headding requested review and tightening of the City's smoking ordinances in light %J the
recent report by the American Lung Association. There was full Council support for this item.
E. ADJOURNMENT
The meeting adjourned at 10:45 p.m.
Recorded by:
&& �r
ana Swanson
City Clerk
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MINUTES - MORRO BAY CITY COUNCIL MEETING — FEBRUARY 13, 2019