Loading...
HomeMy WebLinkAboutJanuary to JuneE. E-1 F. City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. JRNED REGULAR MEETING — JUNE 29, 1989 CITY HALL CONFERENCE — 5:15 P.M. 595 HARBOR ST., MORRO BAY, CA GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION, KEYOTO—NATALIE VS. CITY OF MORRO BAY COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. 1 • MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JUNE 29, 1989 CITY HALL CONFERENCE ROOM - 5:15 P.M. Mayor Sheetz called the meeting to order at 5:15 p.m. PRESENT: Rose Marie Sheetz Mayor John Baker Councilmember John Lemons Councilmember Jeff Odell Councilmember Tom Wuriu Councilmember ABSENT: None STAFF: Gary Napper Judy Skousen City Administrator City Attorney PUBLIC COMMENTS None MOTION: Councilmember Baker moved the meeting adjourned to Closed Session. The motion was seconded by Councilmem- ber Wuriu and unanimously carried. (5-0) Mayor Sheetz announced the Council is adjourning to Closed Ses- sion to discuss pending litigation in accordance with Government Code Section 54956.9(a) in the matter of Keyoto-Natalie vs. City of Morro Bay. The meeting adjourned to Closed Session at 5:15 p.m. and returned to regular session at 6:48 p.m. MOTION: Councilmember Baker moved the meeting be adjourned to July 3, 1989 at 8:15 a.m. in the City Hall Conference Room. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Recorded GARY NAPPER " `4 Deputy City Clerk 9V,W r L City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING - JUNE 26, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section D) may do so by standing. When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments should normally be limited to three minutes. Unless an item is pulled for separate action by the City Council, the fol- lowing actions are approved without discussion. A-1 CITY COUNCIL MINUTES OF THE ADJOURNED REGULAR MEETING OF JUNE 8, 1989, THE REGULAR MEETING OF JUNE 12, 1989, AND THE SPECIAL MEETING OF JUNE 19, 1989 A-2 STATEMENT OF INVESTMENTS - MAY 1989 A-3 EXPENDITURE REPORT - MAY 1989 A-4 RESOLUTION NO. 72-89 CALLING SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 7, 1989 FOR THE PURPOSE OF VOTING ON A MEASURE TO ADOPT A SPECIAL TAX FOR MUNICIPAL EMERGENCY MEDICAL SERVICES; AND, REQUESTING THE BOARD OF SUPERVISORS OF SAN LUIS OBISPO COUNTY TO CONSOLIDATE SAID ELECTION WITH THE CONSOLIDATED DISTRICTS ELECTION TO BE HELD ON NOVEMBER 7, 1989 A-5 NOTICE OF COMPLETION FOR PROJECT NO. PW 88-05, ASPHALT STORAGE BUILD- ING AT CORPORATION YARD A-6 PROCLAMATION HONORING THE U.S. COAST GUARD CUTTER POINT WINSLOW UPON ITS ADOPTION BY THE U.S. NAVY LEAGUE, FRESNO COUNCIL A-7 RESOLUTION NO. 70-89 APPROVING ANNUAL RATIFICATION OF SAN LUIS OBISPO AREA COORDINATING COUNCIL JOINT POWERS AGREEMENT (PULLED) 1 A-8 APPROVAL OF JOB CLASSIFICATION - POLICE RECORDS CLERK (PULLED) A-9 RESOLUTION NO. 78-89 COMMENDING ARROYO GRANDE CHIEF OF POLICE JIM CLARK FOR HIS PUBLIC SERVICE UPON RETIREMENT A-10 PROCLAMATION DECLARING JULY 1-17, 1989 AS MORRO BAY'S 25TH ANNIVERSARY CELEBRATION OF INCORPORATION A-11 RESOLUTION NO. 71-89 AWARDING CONTRACT FOR PURCHASE OF VAN FOR WASTE- WATER TREATMENT PLANT (BID NO. PW 89-166) A-12 APPOINTMENT OF HARRY MARKS TO REFUSE COLLECTION FRANCHISE BOARD A-13 AWARD OF CONTRACT FOR PURCHASE OF FRONT-END LOADER FOR STREET DIVISION (PAD) A-14 DECLARATION OF 1982 DODGE WIDE -ONE DIAL -A -RIDE BUS AS SURPLUS PROPERTY (ID#2B6KB33U7CK122641) A-15 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (MAY) A-16 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (MILLER) A-17 RESOLUTION AUTHORIZING THE APPOINTMENT OF AN ASSISTANT CITY ATTORNEY (PULLED) B. UNFINISHED BUSINESS B-1 APPOINTMENT OF CITIZENS TO VARIOUS ADVISORY BOARD VACANCIES (HARBOR ADVISORY BOARD; RECREATION & PARKS COMMISSION; WATER ADVISORY BOARD; DOWNTOWN SIDEWALK SALES COMMITTEE) C. NEW BUSINESS C-1 STREET ADVISORY COMMITTEE RECOMMENDATIONS ARISING FROM STUDY OF DOWN- TOWN TRAFFIC CIRCULATION AND REGULATORY CONTROL SIGNAGE; AND, COUNCILMEMBER REQUEST FOR A TRAFFIC CONTROL SIGNAGE STUDY OF ENTIRE CITY C-2 CONSIDERATION OF NEW JOINT POWERS AGREEMENT FOR CONSOLIDATION OF COUNTY REGIONAL TRANSIT SYSTEMS (PULLED) D. PUBLIC HEARINGS, REPORTS & APPEARANCES D-1 CONTINUED HEARING AND ADOPTION OF RESOLUTION NO. 77-89 ENACTING MINOR AMENDMENTS TO THE GENERAL PLAN TEXT AND REVISING THE FORMAT OF THE GENERAL PLAN FOR CONSOLIDATION OF GENERAL PLAN ELEMENTS (GP 02-89) D-2 RESOLUTION NO. 75-89 ADOPTING FY 89-90 CITY BUDGET; RESOLUTION NO. 73- 89 ENACTING A WATER RATE INCREASE (10%); AND RESOLUTION NO. 74-89 ENACTING A SEWER RATE INCREASE (5%) E D-3 ORDINANCE NO. 353 ADOPTING THE 1988 EDITIONS OF THE UNIFORM BUILDING CODES (INTRODUCTION/FIRST READING) D-4 CONTINUED HEARING ON APPEAL OF PLANNING COMMISSION'S PRELIMINARY DETERMINATION OF LAND USE CONSISTENCY REGARDING "THE CLOISTERS" 213 HOUSING UNIT SUBDIVISION (CUP 09-87/TM 02-88/CDP 89-87; KEYOTO- NATALIE, APPELLANT) CONTINUE TO NEXT MEETING AT APPELLANT'S REQUEST D-5 HARBOR ADVISORY BOARD RECOMMENDATION AND RESOLUTION NO. 76-89 ADJUST- ING AND INCREASING RATES FOR HARBOR MOORING AND SLIP FEES D-6 PUBLIC HEARING ON PROPOSED LIVE -ABOARD BOAT ORDINANCE E-1 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION, KEYOTO-NATALIE VS. CITY OF MORRO BAY COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. 3 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 26, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. PRESENT: Rose Marie Sheetz John Baker John Lemons Jeff Odell Tom Wuriu ABSENT: None STAFF: Gary Napper Judy Skousen Louise Burt Alan Davis Ardith Davis Bill Farrel Forrest Henderson Nick Nichols Steve Wolter Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Finance Director Harbor Director City Clerk Community Develop. Dir. Asst. City Admin. Public Works Dir. Recreation & Parks Dir. Mayor Sheetz gave the invocation, and Councilmember Baker led the Pledge of Allegiance. • MAY. _. \ _ None None A. CO �i'��Z�Ii12[•3��i��11Y9�•].:71•l+lisl�l)�:�X�i+l�►.S.i��Y_Mi:I�3• - ULAR MEETING OF JUNE 12, 1989, AND THE SPECIAL y • i ; Ur. Napper- •um- •-• Council approveminutes as submitted. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 26, 1989 PAGE 2 A-3 EXPENDITURE REPORT - MAY 1989 Mr. Mapper recommended Council approve the Report,as submitted. MUM Mr. Mapper recommended Council adopt Resolution No. 72-89. _.•- .iu- •-• • -. - . . - •n• - - • Gl= Mr. Mapper recommended Council adopt Resolution No. 78-89. MapperANNIVERSARY CELEBRATION OF INCORPORATION - •in- •-• Council authorize the Mayor to sign the RESOLUTION NO,_: • • Y:_: • : PURCHASE OF _. Mr. Mapper recommended Council adopt Resolution No. 71-89 award- ing contract to Hysen-Johnson Ford in the amount of $12,696.68. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 26, 1989 PAGE 3 A-12 APPOINTMENT OF HARRY MARKS TO REFUSE COLLECTION FRANCHISE BOARD Mr. Napper recommended Council appoint Harry Marks to the Refuse Collection Franchise Board for the Term expiring 31 December 1992. A-13 AWARD OF CONTRACT FOR PURCHASE OF FRONT-END LOADER FOR STREET DIVISION (PULLED) A-14 DECLARATION OF 1982 DODGE WIDE -ONE DIAL -A -RIDE BUS AS SURPLUS PROPERTY (ID#2B6KB33UZCK122641) Mr. Napper recommended Council declare the van as property sur- plus to the City's needs, and authorize staff to dispose of the van to the highest bidder. A-15 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (MAY) Mr. Napper recommended Council deny the claim, and authorize the City Clerk to sign and mail the rejection letter. A-16 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (MILLER) Mr. Napper recommended Council deny the claim, and authorize the City Clerk to sign and mail the rejection letter. A-17 RESOLUTION AUTHORIZING THE APPOINTMENT OF AN ASSISTANT CITY ATTORNEY (PULLED) Councilmember Wuriu asked with regard to the Expenditure Report if the City is realizing additional revenues above those pro- jected due to the increase in interest rates. Mr. Burt explained the investment policy, and stated increased revenues will be realized as the various investments mature at the higher rates. Councilmember Baker referenced Item A-14 declaring the Dial -a - Ride bus as surplus property. He suggested staff stipulate a minimum bid so the City will not have to accept an unreasonably low bid. Mr. Napper noted the concern. MOTION: Councilmember Wuriu moved for approval of the Consent Calendar. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 26, 1989 PAGE 4 B. UNFINISHED BUSINESS B-1 APPOINTMENT OF CITIZENS TO VARIOUS ADVISORY BOARD VACANCIES (HARBOR ADVISORY BOARD; RECREATION 6 PARKS COMMISSION: WATER ADVISORY BOARD; DOWNTOWN SIDEWALK SALES COMMITTEE) Mr. Napper stated there are ten vacancies among the City's vari- ous advisory boards, and the City has been advertising the vacan- cies for some time. He reviewed the applications received thus far; Leland Cass for the Harbor Advisory Board, Gary Gillman for the Recreation and Parks Commission, and Kathy Fritch and Jane Wicklund for the two vacancies on the Downtown Sidewalk Sales Committee. Two applicants have been received for the one vacancy on the Water Advisory Board; Robert Enns and David Moline. Mr. Napper recommended Council appoint the applicants to the posi- tions they have applied for and determine which of the two appli- cants should fill the one vacancy on the Water Advisory Board. Mr. Napper stated no applications have been received for the vacancies on the TV Franchise and Services Board or the Ad -Hoc Transit Committee Mayor Sheetz questioned the activities of the TV Franchise and Services Board. Mr. Henderson stated the Board has been looking into amendments to the current Ordinance regulating the franchise to give more control to the City, and they have been collecting data from customers regarding service from Sonic Cable TV. Mayor Sheetz suggested Council re -advertise the TV Franchise and Services Board and Water Advisory Board vacancies, and allow the Ad -Hoc Transit Board to operate without this one member as it still gives 5 voting members to determine matters. She said the two applicants for the Water Advisory Board are contractors; there are already two contractors on the Board, and she would like to see a more diversified Board. Councilmember Lemons and Councilmember Baker disagreed with re - advertising the Water Advisory Board vacancies and were in favor of appointing this evening. MOTION: Councilmember Baker moved Leland Cass be appointed the Harbor Advisory Board, Gary Gillman to the Recreation and Parks Commission, Kathy Fritch and Jane Wicklund to the Downtown Sidewalk Sales Committee, and Robert Enns to the Water Advisory Board. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) Mr. Napper commented the Ad -Hoc Transit Committee is still work- ing on the RFP for the Dial -A -Ride service, and he has recently been approached regarding the operation of a shuttle service in the downtown and Embarcadero areas. The Committee may have valu- able input into these processes. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 26, 1989 PAGE 5 MOTION: Councilmember Baker moved staff re -advertise the vacant positions on the TV Franchise and Services Board and the Ad -Hoc Transit Committee. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) C. NEW BUSINESS .A" m-y-loi Rymw \ V 0 4 Zf - Mr. Nichols stated one of the first items of business the Street Advisory Committee ever considered was evaluating the traffic circulation in the City. At that time, they postponed study of the downtown area until the Community Center was completed and they could look at revised traffic patterns. This has now been accomplished and Council is in receipt of recommendations to alleviate the heavy traffic flows on Morro Bay Blvd. by making Pacific Street more of a through street for residential traffic. He noted Al Paul and Al Jorge of the Street Advisory Committee are present to answer questions Council may have. If Council agrees with the recommendations, staff will return at the next meeting the resolutions to formalize their action. Bill Boucher, Associate Civil Engineer, reviewed the specific traffic controls recommended by the Committee geared toward allowing residents in the Kings/Kern Avenue areas to use Pacific Street to by-pass the Kern/Morro Bay Blvd. intersection and use the 4-way stop signs at either Piney Way/Morro Bay Blvd. or Main St./Morro Bay Blvd. The Committee also made recommendations to make Dunes Street a through street so people from North Morro Bay could use it to get to the Community Center and the shopping centers. Councilmember Odell was concerned about the recommendation for Napa and Dunes; even though Napa now ends at the school in a cul- de-sac, there is still considerable traffic congestion in the area as people drop their children off at that intersection. Councilmember Wuriu commended the Street Advisory Committee for their work thus far. He believes, however, it is possible to go beyond what has been done here to make all major streets in Morro Bay safer. He would like to see a study of all major thorough- fares in the City such as Avalon, San Jacinto, San Joaquin, and Elena. Councilmember Odell stated the drainage ditch that runs down both sides of Pacific provides a natural speed bump and slows cross traffic considerably; he said anything the City can do to slow traffic on Pacific would be safer and suggested the stop signs be placed on Pacific rather than the cross streets. Mr. Nichols MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 26, 1989 PAGE 6 stated that would be creating artificial ways to make people drive the way they do not want to, which can result in more acci- dents. The recommendations from the Street Advisory Committee are designed to make it easier to travel in Morro Bay and improve traffic flows. Councilmember Lemons asked how Morro Bay rates in accidents statewide. Mr. Boucher stated the City is considerably below the State average. Councilmember Lemons believes the decision made several years ago to place a 4-way stop sign at Morro Bay Blvd. and Piney Way was erroneous. It should have been placed at Morro Bay Blvd. and Shasta thereby allowing through traffic more direct access to the Williams Brothers Shopping Center and, now, the Community Center. He suggested the situation be re-evaluated, and stated he also agrees with Councilmember Odell regarding Pacific Street and the speed people will travel on that street. Al Paul, Street Advisory Committee, said both Harbor and Pacific are collector streets. A left turn from Kern onto Morro Bay Blvd. is a real problem, and diverting traffic onto Pacific to either Piney Way or Main Street where there are 4-way stop signs will alleviate the problem somewhat. He noted the Committee's next area of study will be Avalon, San Joaquin, San Jacinto and Elena. MOTION: Councilmember Wuriu moved staff be instructed to pre- pare the implementing Resolutions for downtown traffic control signage as recommended by the Street Advisory Committee and staff; and, that the Street Advisory Com- mittee continue to analyze all major areas of the City and report recommendations to Council. The motion was seconded by Councilmember Baker and carried with Coun- cilmembers Lemons and Odell voting no. (3-2) C-2 CONSIDERATION OF NEW JOINT POWERS AGREEMENT FOR CONSALIDA- TION OF COUNTY REGIONAL TRANSIT SYSTEMS (PULLED) D. PUBLIC HEARINGS, REPORTS & APPEARANCES D-1 CONTINUED HEARING AND ADOPTION OF RESOLUTION NO, 77-89 ENACTING MINOR AMENDMENTS • THE GENERAL PLAN TEXT AND Mr. Farrel stated Council continued this matter from their last meeting in order to have more time to review the lengthy docu- ment. He noted reformatting of the General Plan consists of con- solidating all Elements into one document; no major changes to the text or policy sections have been made. He recommended Coun- r� LJ CI MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 26, 1989 PAGE 7 cil adopt Resolution No. 77-89 reformat. approving the General Plan Councilmember Lemons suggested the word "grant" in number 2 on page 2 of the Resolution be deleted; it is redundant. Council concurred. Mayor Sheetz opened the hearing to the public; there were no com- ments and the hearino was closed. MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 77-89, as amended. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) D-2 RESOLUTION NO 75-89 ADOPTING FY 89-90 CITY BUDGET• RESOL•U- Mr. Napper reviewed the major highlights of the FY 89-90 Budget and the changes made by Council during the budget workshops. Also included as part of the Budget is a 10% increase in water rates as proposed by the City Council during Budget Workshops, in addition to the original staff recommendation of a 5% increase in sewer rates. He recommended Council appropriate the $80,100 in increased water rate revenues to the $25,000 leak detection pro- gram and the remainder to replace the second Elena Street water tank. This latter project will cost approximately $58,000, so Council will need to allocate another $3,000 to the project from the Water Fund, which is available from the $6,200 Water Fund Balance. By these actions, the FY 89-90 City Budget will remain in an overall annual balance by $203. Mayor Sheetz opened the hearing to the public for comments. Ken Cess, Pacific Care Center, stated his facility uses a lot of water as they have 275 senior residents living at the Center. He is currently paying $15.99 per person for water and sewer; the average household pays $6.35 per person. The increased water rates will cost him an additional $6,000 or $7,000 per month, and he will have to reduce services in order to pay it; he suggested Council cut -back services rather than requiring him to do so. He noted 60% of his residents are on fixed incomes. Charles Palmer presented graphs illustrating the different types of water users in the City, and suggested rates need to be adjusted to fit the type of use by establishing water markets. Bruce Risley asked Council if they are going to consider the rec- ommendations of the Water Advisory Board regarding revenues for new water projects? He also suggested the water revenue picture would be different if the City would not give retrofit fee cred- its to developers. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 26, 1989 PAGE 8 Nancy Bast agreed with Mr. Palmer's suggestions for adjusting water rates for different types of users. She noted her laundro- mat business serves local citizens rather than tourists, and there is a difference between penalizing the over -user versus those that need the water for their type of use. Anne Freeman, 785 Cabrillo Place, stated the citizens have con- served water, and now the City is penalizing them with increased water and sewer rates; she said it isn't fair. Howard Gaines, 441 Orcas, said the citizens have a right to know what the City's operating costs are, and he doesn't know of any effort the City has made to show where it can cut operating expenses. He also believed residents should not have to pay for capital projects 10-20 years down the road. Jeannie Nix, American Red Cross, requested Council reconsider their decision not to fund the Red Cross in their Aid to Agencies Budget. She reviewed the services the American Red Cross pro- vides to Morro Bay emphasizing the assistance during the South T- Pier fire which cost approximately $8,000. She noted they do not receive funding from the National Red Cross except in cases simi- lar to the T-Pier fire where the cost was high; the local chap- ters depend on local funding. Mayor Sheetz noted the purpose of a public hearing is to receive input from citizens; not to engage Councilmembers in discussion. She stated Council is not considering the Water Advisory Board's recommendations for funding new water projects this evening because they have not yet received the report. Those recommenda- tions will be considered at a later meeting. She asked the Finance Director to explain the formula for sewer fees. Ms. Burt stated there is more involved than just treating the sewerage. The City recently rebuilt the wastewater treatment plant at a cost of $13 million; the funds came from the Federal Government and they stipulated a revenue program to pay for future improve- ments. The rate schedule has a built-in adjustment for water uses not entering the sewer system. Councilmember Odell said he understands why citizens have posed questions about operation costs, and stated Council has to believe staff when they say operational costs have increased. Ms. Burt noted water rates have not increased in two years and a 10% increase at this time is in line with inflation. Councilmember Wuriu asked how our water rates compare with other cities in the area. Ms. Burt stated every agency is considering increased water rates at this time. Morro Bay typically charges less for the minimum amount of water, and more than other cities as the use of water increases; we have more steps to our water rate schedule than other cities. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 26, 1989 PAGE 9 Councilmember Wuriu stated he appreciates the comments from the public this evening. One of the problems the City has is it has to save water because of low rainfall. Also, it is impossible to run the City unless we get enough money. The figures from staff show the cost of supplying water is increasing every year and its necessary to maintain the health of the City by making sure the costs are covered. Councilmember Lemons invited everyone to return when the City meets with the Water Advisory Board to review their proposed pro- gram for new water project revenues. ,The action this evening is a means of adopting a budget where The do not exceed anticipated revenues. Some of the types of uses of water in the community will also be evaluated later. Councilmember Wuriu stated Council has to consider both operation of the current water system and new water development; he believes the current users should pay for the operation of the existing system, and that is the purpose of the 10% water rate increase to cover the two-year increase in operational expense of the existing system. MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 73-89 (water rate schedule). The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 74-89 (sewer rate schedule). The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 75-89 (FY 89-90 City Budget). The motion was seconded by Councilmember Baker and unanimously carried. (5-0) MOTION: Councilmember Lemons moved Council adopt the staff rec- ommendation to use the remaining $55,100 in additional water rate revenues by the 10% rate increase to replace the second Elena Street water tank for $58,000, and allocate another $3,000 to the project from the Water Fund. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) Mr. Napper stated every three years, the International Conference of Building Officials issues updated version of the Uniform Building and related Codes. Cities then adopt the Codes as part MINUTES - MORRO REGULAR MEETING PAGE 10 BAY CITY COUNCIL - JUNE 26, 1989 of the Municipal Code to ensure consistency. date was in 1985. The last City up - Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. MOTION: Councilmember Odell moved Ordinance No. 353 be read by title and number only. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mr. Napper read Ordinance No. 353 by title and number only. MOTION: Councilmember Odell moved for approval of the first reading of Ordinance No. 353. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) Councilmember Lemons asked what progress the City was at in com- plying with the State -mandated seismic safety plan, and requested an update. Mr. Napper stated the City is progressing with the requirement to have a Plan by January 1990, and a status report can be provided to Council. D-4 CONTINUED HEARING ON APPEAL OF PLANNING COMMISSION'S PRELIM- INARY DETERMINATION OF LAND USE CONSISTENCY REGARDING "THE CLOISTERS" 213 HOUSING UNIT SUBDIVISION (CUP 09-87/TM 02- 88/GDP 89-87; KEYOTO-NATALIE. APPELLANT) CONTINUE TO NEXT MEETING AT APPELL•ANT!S REQUEST Mayor Sheetz stated the applicant has again requested this item be continued. MOTION: Councilmember Wuriu moved this item be continued to the next meeting pursuant to the applicant's request. The motion was seconded by Councilmember Baker and unani- mously carried. (5-0) D-5 HARBOR ADVISORY BOARD RECOMMENDATION AND RESOLUTION NO, 76- 89 ADJUSTING AND INCREASING RATES FOR HARBOR MOORING AND SLIP FEES Alan Davis reviewed this item stating the Harbor Advisory Board has reviewed the harbor mooring and pier fees and made recommen- dations for increases. The recommended increase amounts to approximately 25%; fees are based on vessel length. The Board also recommends charging four times the normal rate for time spent in excess of established time limits. Mayor Sheetz opened the hearing to the public for comments. Jody Giannini, 800 Little Morro Creek Road and Chairman of the Harbor Advisory Board, encouraged Council to adopt the Resolution increasing mooring and slip rates. The Harbor Advisory Board MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 26, 1989 PAGE 11 spent a considerable amount of time on the rate schedule and believes it to be fair and equitable. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Lemons moved for adoption of Resolution No. 76-89. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) D-6 PUBLIC HEARING ON PROPOSED LIVE -ABOARD BOAT ORDINANCE Alan Davis stated this item was last before Council in May of 1988. Since that time, contact has been made with the various State agencies requesting their response to provisions of a pro- posed ordinance. The City was re -notified in April 1989 by the Regional Water Quality Control Board of the necessity for the City to adopt a liveaboard ordinance. Mr. Davis discussed the issues still unresolved and the responses from State agencies. With regard to the number of liveaboard permits, the State Lands Commission does not believe that a 20% occupancy can be justified under any circumstance, and maintains, as they have in the past, residential use of tidelands is incon- sistent with the Public Trust. It is possible to allow a 3-5% of available berths be liveaboard to provide security to the harbor, thereby demonstrating a public benefit warranting the residential use. On the subject of transferability of liveaboard permits, the State Lands Commission and the Harbor Advisory Board recommend against the practice. The ability to transfer permits results in limited public access, loss of management prerogatives by the Harbor Department, and the potential for excessive private gain from publicly owned lands. Permit holders can transfer their permit to another vessel they may purchase within a 6 month period. Mr. Davis also discussed the cluded in a liveaboard ordina determined liveaboards are n Measure specifically applies Council provide guidance to will then draft an ordinance numerous other provisions to be in - ace. He noted the City Attorney has :)t affected by Measure F since the to building permits. He requested staff on the various issues; staff for Council consideration and then forward it to the State agencies for their comments. Councilmember Odell asked if the City could enforce vessel dis- charge requirements without proper pumpout facilities? Mr. Davis said he has not seen any official rulep however, the Morro Bay Marina has a pumpout facility which is rarely used. The Regional Water Quality Control Board will be requiring marine terminals install pumpout facilities, and the City is also looking at sev- eral locations for the same. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 26, 1989 PAGE 12 Councilmember Lemons commented on the every two liveaboard permits taken out of sued to those on a waiting list. If the in the harbor, is able to reduce that by 22 years to reduce the 60 liveaboards to that proposal has not be considered by sion, and they may not approve. attrition proposal for use, one could be reis- City has 60 liveaboards 4 per year, it will take 15! Mr. Davis commented the State Lands Commis- Councilmember Wuriu asked how Mr. Davis came up with the 20% fig- ure. Mr. Davis stated the Harbor Patrol estimates there to be 20%, or 60, liveaboards in the 300 mooring locations in the Har- bor; this does not include the State Park Marina. The liveaboard community estimates that number to be much less. Mayor Sheetz opened the hearing to the public for comments. Bill Troutner, Morro Bay Yacht Club, requested the City allow 3 liveaboards for the Yacht Club Mooring Area A1-3. These are used to allow persons to get ready for extended cruises. He also asked for a readjustment to the permit fee for those staying at the Yacht Club, as services are provided by the Club rather than the City. Larry Shears disagreed with the proposed sanitation and naviga- bility requirements. He requested Council hold this item over so the liveaboard community can be notified and attend a future meeting. Mel Lowery, Morro Bay Yacht Club, stated the 20% figure has been contested; liveaboards believe its is 10%. He does not believe the City is being required to enact this ordinance, and stated Ventura is advertising for liveaboards as a good thing. Dr. Richard F. Smith, liveaboard at Morro Bay Marina since 1980, said liveaboards are part of the character of the Bay, and is a lifestyle which should be protected. He asked to see the data on the sanitation problem purportedly causing this ordinance to be required. Councilmember Lemons asked if the City initiated this subject? Mr. Davis stated the City was notified by the Regional Water Quality Control Board to adopt and enforce a liveaboard ordi- nance. The State Lands Commission is the regulatory agency over the City for State Tidelands property. Wes Marks, liveaboard resident, stated the City should get rid of the people breaking the law with regard to bay pollution. He objected to the permit fee stating his services are provided by Morro Bay Marina. Liveaboards serve a beneficial purpose in his mind. MINUTES - MORRO BA• ITY COUNCIL • REGULAR MEETING - JUNE 26, 1989 PAGE 13 Ted Jacobson stated the liveaboard people serve a purpose on the bay; they watch for the property and safety of the people who do not live on the bay. He said the Attorney General Opinion regarding liveaboards is not law. The 2-5% figure cited by the State Lands Commission is intolerable. Jody Giannini, Harbor Advisory Board Chairman, commented on the need for additional pumping facilities in the marinas. He re- quested Council act on this item, and not postpone it any longer. Bill Troutner commented he lives aboard his boat at the State Park Marina, and the liveaboard community does not have anything to do with the liveaboards such as those involved in the South T- Pier Fire. If this ordinance had been effective a year ago, the T-Pier fire may never have happened. Mayor Sheetz closed the hearing to the public. Mayor Sheetz stated the water and lease sites in Morro Bay do not belong to the City, they belong to the State of California. The City is attempting to abide by what the State is telling us we have to do. She noted this item has been under discussion for over a year. Councilmember Wuriu referred to some of the disparaging comments made this evening against the Harbor Director, and stated he spent a considerable amount of time with Mr. Davis going over this subject. Mr. Davis considers the liveaboard community to be a very valuable part of the harbor. He assured the public Mr. Davis has been trying to deal with a difficult problem the best way he can. Councilmember Baker asked if there is a State law setting forth the percentage of liveaboards allowed? Ms. Skousen stated the City has had discussion and is in receipt of opinions from vari- ous State agencies saying there is a problem in Morro Bay and they have directed the City to do something; the threat is they can and will take the Tidelands Trust away or sue the City to enforce their regulations. The City cannot simply say we will not follow ctheirdirections. There is no law that sets forth the percentage of liveaboards allowed in the harbor; however, the State is providing the City with a loophole in the law to allow a certain amount of liveaboards based on security reasons. Ms. Skousen stated she was not aware the City of Ventura was adver- tising for liveaboards; however, when she talked with that city some months ago they were struggling with the same problem, and their proposed ordinance was more restrictive than the one we are considering. There was discussion with regard to obtaining an accurate figure of the amount of liveaboards currently in the harbor, providing a more accelerated rate of attrition, and possibly modifying the 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 26, 1989 PAGE 14 permit fee if liveaboards currently receive services through another provider than the City. MOTION: Councilmember Lemons moved staff be directed to draft an ordinance for Council consideration generally along the lines presented in the staff report; the ordinance to return to Council before forwarding to the State agencies for comment. The motion was seconded by Coun- cilmember Odell and unanimously carried. (5-0) Mayor Sheetz emphasized to the public no ordinance is being enacted this evening. F. ADJOURNMENT MOTION: Councilmember Odell moved the meeting be adjourned to Closed Session on Wednesday, July 29th at 5:15 p.m. in the City Hall Conference Room. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mayor Sheetz stated the Closed Session will be held in accordance with Government Code Section 54956.9(a), pending litigation, in the matter of Keygto-Natalie vs City of Morro Bay. The meeting adjourned at 8:57 p.m. Recorded by: ARDITH DAVIS City Clerk NOT 2 C E O F S P E C= AL MEET = NG ' NOTICE IS HEREBY GIVEN that a Special Meeting of the Morro Bay City Council is hereby called to be held on Monday, June 19, 1989 at 5:00 p.m. in the Morro Bay City Hall Conference Room, 595 Harbor Street, Morro Bay, CA. Said Special Meeting shall be for the purpose of holding a Closed Session to consider pending litigation in accordance with Government Code Section 54956.9(a), Kevoto Natalie vs. City of Morro Bay. DATED: June 15, 1989 ROSE MARIE SHEETZ, Mayor City of Morro Bay, California MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - JUNE 19, 1989 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Sheetz called the meeting to order at 5:03 p.m. PRESENT: Rose Marie Sheetz Mayor John Lemons Councilmember Jeff Odell Councilmember Tom Wuriu Councilmember John Baker Councilmember STAFF: Gary Napper Judy Skousen Bill Farrel City Administrator City Attorney Community Develop. Dir. PUBLIC COMMENTS None MOTION: Councilmember Baker moved the meeting adjourn to Closed Session. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mayor Sheetz announced Council is adjourning to Closed Session for the purpose of discussing pending litigation in accordance with Government Code Section 54956.9(a) in the matter of Keyoto- Natalie vs. City of Morro Bay. Council adjourned to Closed Session at 5:03 p.m. and returned to regular session at 5:37 p.m. MOTION: Councilmember Baker moved the meeting be adjourned. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) The meeting adjourned at 5:37 p.m. Recorded GARY NAPPER Deputy City carj 1 q, 0 City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. ADJOURNED REGULAR MEETING — JUNE 14, 1989 CITY/COUNTY LIBRARY COMMUNITY ROOM — 3:00 P.M. 995 PALM ST., SAN LUIS OBISPO, CA C. NEW BUSINESS C-1 DISCUSSION OF WATER PROJECTS WITH SAN LUIS OBISPO CITY COUNCIL ADJOURNED REGULAR MEETING — JUNE 14, 1989 CITY HALL CONFERENCE ROOM — 6:00 P.M. 595 HARBOR STREET, MORRO BAY, CA B-1 CONTINUATION OF FY 89-90 BUDGET WORKSHOPS COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. 1 MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING, BUDGET WORKSHOP - JUNE 14, 1989 CITY HALL CONFERENCE ROOM - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. PRESENT: Rose Marie Sheetz Mayor John Baker Councilmember John Lemons Councilmember Jeff Odell Councilmember Tom Wuriu Councilmember ABSENT: None STAFF: Gary Napper City Administrator Louise Burt Finance Director Nick Nichols Public Works Director Council discussed the dilemma of funding the various requests within the $6,500 budget proposed. Numerous funding formulas and caps were suggested, including no funding for arts programs and no funding for new agency requests. MOTION: Councilmember Wuriu moved Council allocate a total of $6,515 to the Aid to Agencies budget in the following manner: Caring Callers $ 100 Crime Stoppers 400 Family Services Center 1,000 Hospice of SLO 500 Hotline 500 RSVP 500 Salvation Army 1,000 EOC-Sr. Health Screening 965 Agency on Aging-Sr.Nutrition 750 Women's Shelter 500 Long Term Care Ombudsman 300 The motion was seconded by Councilmember Odell and unanimously carried. (5-0) Louise Burt reviewed an alternative new rate schedule which adds additional tiers and increases the base minimum charge. Council directed staff to raise water rates 10% across-the-board within the existing rate schedule; Council noted it will await MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING, BUDGET WORKSHOP - JUNE 14, 1989 PAGE 2 the Water Advisory Board's suggestions on financing new water projects before revising the rate schedule. Councilmember Lemons asked if all of the City's water projects are in the hands of consultants, is the Water Engineer position a 40 hour per week job? Mr. Nichols stated no, and the position does not handle other water system improvements either. Discus- sion followed focusing on the efficacy of a specific water engi- neer position or some other organizational structure in the Engi- neering Division that will create greater efficiencies in the assignment of the City's engineering needs. MOTION: Councilmember Lemons moved staff perform a classifica- tion study on the Water Engineer position. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) MOTION: Councilmember Lemons moved the meeting be adjourned. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) The meeting adjourned at 7:22 p.m. Recorded 4V_�. GARY NAPPER Deputy City crty.of son LuIs6061spo COMMUNITY ROOM • CITY/COUNTY LIBRARY • PALM S OSOS STREETS A G E N 0 :i JOINT MEETING OF THE CITY COUNCILS OF MORRO BAY AND SAN LUiS OBISPO WEDNESDAY, JUNE 14. 1989. 3:00 - 5:00 P.NI. CI99.5 PALM LIBRARY. COMMUNITY ROOM P1,; �__993 PAL?f STREET. SAN L;;IS OB[SPO� L IUp, L5 CALL TO ORDER: Mayor Ron Dunin J(JN o �O8J ROLL CALL: CITY OF MI RRIC DAI.y San Luis.Obispo: Vice -Mayor Peg Pinard, Councilmembers Penny Rappa, Jerry Reiss, Allen K. Settle, and Mayor Ron Dunin Morro Bay INVITED GUESTS: Whale Rock Commission: Vice -Mayor Tom Wuriu, Councilmembers Jeff Odell, John Lemons, John Baker and Mayor Rose Marie Sheetz Doug Gerard, Carmen Salvato, Carlos Madrid, John Dunn, Ron Dunin, Bill Statler PUBLIC COMMENT (Not to exceed 15 minutes) Immediately prior to scheduled items, members of the public may address the City Council on items that DO NOT appear on the printed agenda. Please observe the time limit of three minutes. A speaker slip (available in the Foyer) must be filed with the City Clerk prior to the beginning of the meeting. As a general rule, action cannot be taken on issues not listed on the agenda. Staff will generally be asked to follow-up on such items. The Council is interested in hearing from the public regarding issues or concerns of the community and welcome your input. WATER SUPPLY MATTERS 1. Overview of the purpose of the meeting, to discuss coordination and possible joint action by the two cities on water supply matters. A. Water supply sourres under review by the two cir.ics (1) Mr. Nick Nichols - Director of Public Works. City of Morro Bay P,'-- 1 of 2 MINUTES - MORRO BAY CITY COUNCIL/SAN LUIS OBISPO CITY COUNCIL ADJOURNED REGULAR MEETING - JUNE 14, 1989 CITY/COUNTY LIBRARY, SAN LUIS OBISPO - 3:00 P.M. SAN LUIS OBISPO: ABSENT: MORRO BAY: SAN LUIS OBISPO: MORRO BAY: Ron Dunin Peg Pinard Penny Rappa Jerry Reiss Allen K. Settle Rose Marie John Baker John Lemons Jeff Odell Tom Wuriu John Dunn Allen Short Mayor vice -Mayor Councilmember Councilmember Councilmember Sheetz Councilmember Councilmember Councilmember Councilmember Councilmember Gary Napper Nick Nichols Chief Admin. Off. Water Div. Manager City Administrator Public Works Dir. Mr. Nick Nichols, Director of Morro Bay Public Works, reviewed Morro Bay's available water resources and explained alternatives for its augmentation. He gave an overhead presentation summariz- ing the proposed water resource projects: 1. Coastal Stream Diversion 2. San Bernardo Reservoir 3. State Water 4. Domenghini Flat Groundwater Wells 5. Toro Creek Groundwater Wells 6. Wastewater Reclamation 7. Desalination 8. Nacimiento He stated the Morro Bay City Council had given direction to staff to begin implementation of Projects 1, 2, and 3. Mr. Allen Short, Water Division Manager, reviewed the City of San Luis Obispo's long term water supply alternatives: 0 0 MINUTES - MORRO BAY CITY COUNCIL/SAN LUIS OBISPO CITY COUNCIL ADJOURNED REGULAR MEETING - JUNE 14, 1989 PAGE 2 1. Cooperative Use - 800 AFY 2. Groundwater - 1000 AFY - $300,000/AF 3. Salinas Reservoir Expansion - 1300 AFY - $2,700,000 - $240/AF 4. Coastal Stream Diversion Project - 938 AFY - $2,502,000 - $320/AF 5. San Bernardo Creek Dam - 1065 AFY - $4,104,000 - $390/AF Coastal Streams Phase II 6. State Water Project - 3000 AFY - $310/AF 7. Nacimiento - 3000 AF - $359/AF 8. Wastewater Reclamation 9. Hansen & Gularte Creeks - 500 AF - $750,000 - $275/AF 10. Desalination - 5000 AF - $1,500/AF Mr. Nichols then reviewed a flow chart identifying the process to develop municipal water wells for the City of Morro Bay. Bob Sverak, of Leeds -Hill Herkenhoff, gave an update on the Coastal Streams Diversion Project including preliminary conclu- sion of potential cost, water supply potential, project timing and feasibility. Mssrs. Nick Nichols and Robert Born reported on the San Bernardo Creek Dam Project including costs, water supply, project timing, and feasibility. The Councils held a question and answer period. Upon general consensus, it was agreed to hold another joint session regarding the joint water issues within a 6-month period. There being no further business to come before the joint meeting, upon motion by Councilmember Lemons, seconded by Councilmember Baker, the Morro Bay City Council adjourned to 6:00 p.m., Wednes- day, June 14, 1989, in the City Hall Conference Room in Morro Bay, to discuss further the proposed City Budget for FY 89-90. The motion unanimously carried, and the joint meeting concluded at 5:09 p.m. Deputy City Clerk City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING - JUNE 12, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section D) may do so by standing. When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments should normally be limited to three minutes. DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the fol- lowing actions are approved without discussion. A-1 CITY COUNCIL MINUTES OF THE SPECIAL MEETING OF MAY 17, 1989; THE REGULAR MEETING OF MAY 22, 1989; THE ADJOURNED REGULAR MEETING OF MAY 25, 1989; AND THE ADJOURNED REGULAR MEETING OF MAY 31, 1989 A-2 APPROVAL OF PUBLIC AREA USE PERMITS FOR VARIOUS EVENTS DURING CITY'S 25TH ANNIVERSARY CELEBRATION (STREET FAIRE; ANNIVERSARY PARADE; CHILI COOK -OFF) A-3 SET JOINT MEETING DATE WITH SAN LUIS OBISPO CITY COUNCIL TO DISCUSS VARIOUS WATER PROJECTS (JUNE 14, 1989; 3 PM; SAN LUIS OBISPO CITY/COUNTY LIBRARY) A-4 ACCEPTANCE OF RESIGNATION FROM CABLE TV FRANCHISE BOARD (BAEZ) A-5 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (D. DAVIS) A-6 ACCEPTANCE OF NEW MERCHANTS ASSOCIATION REPRESENTATIVE TO CITY COMMUNITY PROMOTIONS COMMITTEE (SMITH) A-7 COMMUNITY PROMOTIONS COMMITTEE RECOMMENDATION FOR APPROPRIATION OF $1,300 FOR PURCHASE OF HARDWARE TO INSTALL 24 NEW POLE BANNERS ON MORRO BAY BOULEVARD 1 E E-1 F GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION, KEYOTO-NATALIE VS. CITY OF MORRO BAY COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. A-8 ACCEPTANCE OF RESIGNATION FROM REFUSE COLLECTION FRANCHISE BOARD (SCHROEDER) B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 352 AMENDING THE MUNICIPAL CODE TO REQUIRE THE INSTALLA- TION OF ULTRA -LOW FLUSH AND FLOW FIXTURES IN ALL NEW CONSTRUCTION AND WHEN REPLACING PLUMBING FIXTURES IN EXISTING STRUCTURES (SECOND READING/ADOPTION) B-2 RESOLUTION NO. 64-89 AMENDING THE NOVEMBER 1989 MUNICIPAL EMERGENCY MEDICAL SERVICES BALLOT MEASURE TO INCORPORATE PROVISIONS FOR A PROPORTIONAL INCREASE IN THE CITY'S (GANN) APPROPRIATIONS LIMIT C. NEW BUSINESS C-1 RESOLUTION NO. 61-89 DETERMINING UNPAID ASSESSMENTS AND PROVIDING OF THE ISSUANCE OF BONDS; RESOLUTION NO. 62-89 AWARDING SALE OF BONDS TO FIRST CALIFORNIA REGIONAL SECURITIES, INC.; AND RESOLUTION NO. 65-89 APPOINTING PAYING AGENT -REGISTRAR (MIMOSA STREET IMPROVEMENTS) C-2 RESOLUTION NO. 63-89 APPROVING CONSENT TO SUBLEASE A PORTION OF LEASE SITE 93/95W (HARBOR CENTER; M/M GEORGE, LESSEE) FOR GIFT SHOP OPERATIONS (JOANNE SHIFLETT, SUBLESSEE; DBA SEASIDE GENERAL STORE) C-3 POSITION ON SB 1440 (DILLS), HIGH SCHOOL DRIVER TRAINING FUNDING C-4 ACQUISITION OF 1978 SEAGRAVE 100' AERIAL REARMOUNT LADDER TRUCK AND DECLARATION OF 1963 CENTRAL PUMPER ENGINE AS SURPLUS CITY PROPERTY D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 RESOLUTION NO. 68-89 APPROVING CITY MASTER FEE SCHEDULE FOR FISCAL YEAR 1989-90 D-2 MORRO BAY COMMERCIAL FISHERMEN'S ORGANIZATION PROPOSAL FOR COOPERATIVE INSTALLATION OF EMERGENCY TELEPHONES IN THE MORRO ROCK AREA D-3 APPEAL HEARING OF PLANNING COMMISSION APPROVAL TO ALLOW CONSTRUCTION OF A GUEST HOUSE ABOVE AN EXISTING DETACHED GARAGE AT 246 KERN AVENUE (CUP 05-89; MARSHALL, APPELLANT; DOHERTY, APPLICANT) D-4 APPEAL HEARING OF PLANNING COMMISSION'S PRELIMINARY DETERMINATION OF LAND USE CONSISTENCY REGARDING "THE CLOISTERS" 213 HOUSING UNIT SUBDIVISION (CUP 09-87/TM 02-88/CDP 89-87; KEYOTO-NATALIE, APPELLANT) D-5 CONTINUED HEARING ON RESOLUTION ENACTING MINOR AMENDMENTS TO THE GENERAL PLAN TEXT AND REVISING THE FORMAT OF THE GENERAL PLAN FOR CONSOLIDATION OF GENERAL PLAN ELEMENTS D-6 REQUEST FOR AFFORDABLE HOUSING INCENTIVES FOR A POSSIBLE 10-UNIT CONDOMINIUM PROJECT AT THE SOUTH-EAST CORNER OF MAIN STREET AND WHIDBEY AVENUE (SWAUGER/HURLBERT, APPLICANTS) K MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 12, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. ROLL CALL PRESENT: Rose Marie Sheetz Mayor John Baker Councilmember John Lemons Councilmember Jeff Odell Councilmember Tom Wuriu Councilmember ABSENT: None STAFF: Gary Napper City Administrator Judy Skousen City Attorney Louise Burt Finance Director Alan Davis Harbor Director Ardith Davis City Clerk Bill Farrel Community Develop. Dir. Forrest Henderson Asst. City Admin. Nick Nichols Public Works Dir. Steve Wolter Recreation & Parks Dir. Bernie Zerr Fire Chief Reverend Woody Shoemaker, Coast Christian Fellowship, gave the invocation, and Horace Strong led the Pledge of Allegiance. Mayor Sheetz announced Council is instituting a new method of voting and timing public comments this evening. She explained how Council will vote on an item and the result displayed on a board for the public. The timer is similar to a traffic signal and lets a speaker know when he has 30 seconds left with a yellow light; his time is up when the red light flashes and, buzzer sounds. PUBLIC COMMENT 1. Leland Ramsey, attorney, requested permission to speak on Item C-2 on the agenda; Mayor Sheetz said he would be given the opportunity to speak. DECLARATION OF FUTURE AGENDA ITEMS 1. Councilmember Wuriu requested an item be scheduled to discuss conducting a traffic control sign survey over the entire City. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 12, 1989 PAGE 2 2. Councilmember Lemons requested an item be scheduled to discuss the "used car lot" evolving on Morro Bay Blvd. near the Quintana Road/Highway 1 intersection. Mr. Napper noted this sub- ject had previously been considered by the Street Advisory Com- mittee with no conclusions to remedy the problem. Council re- quested the matter be referred to the Street Advisory Committee a second time for their input prior to scheduling the matter before Council. Mayor Sheetz also noted similar problems occurring on private property at San Jacinto and Main Street intersection, and Radcliffe and Main Street intersection. A. CONSENT CALEND A-1 CITY COUNCIL MINUTES OF THE SPECIAL MEETING OF MAY 17, 1989: THE REGULAR MEETING OF MAY 22, 1989: THE ADJOURNED REGULAR MEETING OF MAY 25, 1989; AND THE ADJOURNED REGULAR MEETING OF MAY 31, 1989 Mr. Napper recommended Council approve the minutes as submitted. A-2 APPROVAL OF PUBLIC AREA USE PERMITS FOR VARIOUS EVENTS DURING CITY'S 25TH ANNIVERSARY CELEBRATION (STREET FAIRE: ANNIVERSARY PARADE: CHILI COOK -OFF) Mr. Napper recommended Council approve the Permits as submitted. A-3 SET JOINT MEETING DATE WITH SAN LUIS OBISPO CITY COUNCIL TO DISCUSS VARIOUS WATER PROJECTS (DUNE 14. 1989; 3 PM; SAN LUIS OBISPO CITY/COUNTY LIBRARY) Mr. Napper amended his recommendation from setting the joint meeting date and time, to setting the agenda. He said the Gov- ernment Code requires Council meetings be held within the corpo- rate limits of the City. In order to comply, Council must ad- journ this evening's meeting to the joint meeting with the San Luis Obispo City Council on Wednesday; it can then be considered a "field trip" to discuss water projects. Council will then be required to return to Morro Bay to formally adjourn the meeting. Mr. Napper recommended Council set the agenda as submitted. A-4 ACCEPTANCE OF RESIGNATION FROM CABLE TV FRANCHISE BOARD (BAEZ) Mr. Napper recommended Council accept the resignation of Kim Baez, and authorize staff to advertise the vacancy. A-5 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (D. DAVIS) Mr. Napper recommended Council deny the claim, and authorize the City Clerk to sign and mail the rejection notice. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 12, 1989 PAGE 3 =0324!�VQLW41DO �lZf�i ��1 :IN ►:� Y_��: YK +:VV_t•](1:��# :1 �J�4_VV_Y_�f1 .VC• Mr. Mapper recommended Council appoint Richard Smith to replace Lynn Budden as the Morro Bay Merchants Association representative on the Community Promotions Committee. Mr. Mapper recommended Council allocate $1,300 from FY 88-89 Out- side Community Promotions Fund to purchase 24 hardware brackets to hold new banners on Morro Bay Boulevard. A-8 ACCEPTANCE OF RESIGNATION FROM REFUSE COLLECTION FRANCHISE BOARD (SCHROEDER) Mr. Mapper recommended Council accept the resignation of Ardis Schroeder, and authorize staff to advertise the vacancy for citi- zen applications. MOTION: Councilmember Wuriu moved for the approval of the Con- sent Calendar with the amendment to Item A-3. The motion was seconded by Councilmember Baker and unani- mously carried. (5-0) _s. •A • _S_:. �. a :_+• --A. W11*10RW_\ _ .\_ Mr. Mapper stated this is second and final reading of Ordinance No. 352 which will go into effect July 12th. He noted the re- quirement for lh gallon flush toilets will not become effective until January 1990. Councilmember Wuriu noted several other jurisdictions are requir- ing the 1'k gallon toilets and people are having difficulty obtaining them. He said it may be necessary to further extend the January 1990 date as the time draws closer. MOTION: Councilmember Lemons moved Ordinance No. 352 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Mapper read Ordinance No. 352 by title and number only. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 12, 1989 PAGE 4 MOTION: Councilmember Baker moved for adoption of Ordinance No. 352 as second and final reading. The motion was sec- onded by Councilmember Odell and unanimously carried. (5-0) B-2 RESOLUTION NO, 64-89 AMENDING THE NOVEMBER 1989 MUNICIPAL EMERGENCY MEDICAL SERVICES BALLOT MEASURE TO INCORPORATE PROVISIONS FOR A PROPORTIONAL INCREASE IN THE CITY'S (GANNI APPROPRIATIONS LIMIT Mr. Napper stated last November Council decided to ask the Morro Bay voters to approve a special tax to fund the City's emergency medical services and upgrade personnel to Paramedic profession- als. The Resolution placing the matter on the ballot did not contain a provision to increase the City's appropriation limit by the annual amount of the tax; this provision will keep the City from approaching or exceeding the limit beyond which no expendi- tures are allowed and refunds must take place. The proposed Res- olution includes this provision. Mr. Napper noted the County has designated this measure as "Measure B" on the November ballot. Councilmember Lemons noted number 1 in Resolution No. 64-89 should be amended to rescind Resolution No. 136-88, rather than No. 64-89. MOTION: Councilmember Lemons moved for approval of Resolution No. 64-89 as amended to rescind Resolution No. 136-88. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mayor Sheetz announced Item D-4 is being continued at the request of the applicant; it will be scheduled on the next agenda. MOTION: Mayor Sheetz moved Item D-4 be continued to the next meeting. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) C. NEW BUSINESS C-1 RESOLUTION NO, 61-89 DETERMINING UNPAID ASSESSMENTS AND PRO- VIDING OF THE ISSUANCE OF BONDS; RESOLUTION NO. 62-89 AWARD- ING SALE OF BONDS TO FIRST CALIFORNIA REGIONAL SECURITIES. INC.; AND RESOLUTION NO, 65-89 APPOINTING PAYING AGENT - REGISTRAR (MIMOSA STREET IMPROVEMENTS) Mr. Nichols stated the Mimosa Street Assessment District was formed at the request of the property owners within the area to construct curbs, gutters and street improvements. All property owners were notified of their individual assessments for this project and given an opportunity to pay that assessment in full or partially. If they did not pay, the amount will be placed on the tax roll as a lien against their property and the amount will MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 12, 1989 PAGE 5 be collected annually. It is now in order to issue the bonds to fund the uncollected amounts. The Resolutions for Council action this evening are: Resolution No. 61-89 determining unpaid assessments and providing for the issuance of bonds pursuant to the "Improvement Act of 1915" Resolution No. 62-89 awarding sale of bonds to Fire California Regional Securities, Inc. Resolution No. 65-89 appointing Paying Agent -Registrar Council was provided at the meeting with an insert for Resolution No. 61-89 which sets forth the bond maturity schedule, and there is also a letter from the First California Regional Security, Inc. offering to purchase the bonds. Mayor Sheetz asked if there has been an appraisal of the street which is the Price's property? Terry Orton, Westland Engineering and engineer of this project, stated the appraisal has recently been received but not reviewed; he does not believe the Price's will be satisfied with it. Mayor Sheetz asked if the Prices sue the City because of the ap- praisal, will it hold the project up? Ms. Skousen said contest- ing the appraisal will not delay the project; the City antici- pates having to go to court to take possession of the property. Councilmember Baker asked how long the archaeological survey will take? Terry Orton estimated 40 days. Councilmember Wuriu asked if there is a difference in payment for those who are letting the assessment be placed on the tax rolls rather than paying the full amount now? Mr. Nichols stated there is a uniform 7% interest rate applied; the bonds are sold at an interest rate. MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 61-89 with the bond maturity information as submitted. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) MOTION: Councilmember Wuriu moved for the adoption of Resolu- tion No. 62-89. The motion was seconded by Councilmem- ber Lemons and unanimously carried. (5-0) MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 65-89. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 12, 1989 PAGE 6 Mr. Davis stated the Georges are requesting Council approval to sublease a portion of their site to Joanne Shiflet to operate a gift shop. The proposed sublessee has been found acceptable by the Finance Department after review of their financial statement. Staff's concern regarding this request is the $9,000 in outstand- ing parking in -lieu fees still due from subleases approved in September 1988. Also, two of the sites are occupied by the Georges for which parking in -lien fees have not been paid, and, if Council approves this final and sixth occupation, a total of $18,000 in parking in -lieu fees is due. Mr. Davis outlined an offer by Georges to pay the $18,000 by a promissory note secured by real property, due within six months time from approval of this last sublease. If Council is agree- able, staff recommends the note be secured by the lease site and no other real estate; and, interest charged until the amount is paid in full. He noted the Georges are also responsible for pay- ing our legal expenses generated by the problems with past -due rents. Leland Ramsey, attorney for the Georges, read excerpts from the Parking Agreement which he maintained indicated the in -lieu fees must be paid within six month of a certificate of occupancy. He stated there is no certificate of occupancy on the entire opera- tion, so payment of parking in -lieu fees is still six months away. He also detailed the Georges' past efforts to comply with lease terms and bring lease payments up to date. Ms. Skousen stated there is no question the Parking Agreement re- quires the in -lieu fee of $3,000 be paid as each unit is sub- leased. The excerpt quoted by Mr. Ramsey is in reference to a possibility the Georges operated all units themselves and did not sublease. She also reiterated the provision if the City Attor- ney's time is taken to enforce any of the terms of the agreement, the lessee is responsible to pay those costs. She estimated three hours of her time should be charged to the balance due. MOTION: Councilmember Lemons moved for adoption of Resolution No. 63-89, and authorize acceptance of a properly - secured promissory note by the Lessees with appropriate City legal approval for the payment of the $18,000 in parking in -lieu fees. The motion was seconded by Coun- cilmember Baker and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 12, 1989 PAGE 7 C-3 POSITION ON SB 1440 (DILLS). HIGH SCHOOL DRIVER TRAINING FUNDING Mr. mapper reviewed SB 1440 which proposes assured funding and an increase in funding for the behind -the -wheel high school driver training programs. The Bill contains provisions to raise the cap on the amount of monies per pupil for training from $80 to $120. He noted the bill passed from the Senate Appropriations Committee this week with an amendment for the per pupil funding cap to be $97. MOTION: Councilmember Odell moved Council support SB 1400 as amended, and instruct staff to notify our legislators and interested parties. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) Councilmember Wuriu commented the bill should include adults as well as he has noted Morro Bay citizens are terrible drivers. TRUCK AND DECLARATION OF -963 CENTRAL PUMPER SURPLUSPROPERTY Chief Zerr stated during 1985, the Fire Master Plan Committee explored the possibility of obtaining a ladder truck; however, the cost for a new one is in the area of $500,000. Recently, the Department received a flyer advertising a used 1978 ladder truck for sale in Pennsylvania for $150,000. The City's mechanic was sent to evaluate the condition of the truck and determined it is in good condition and suitable for the City's needs. The cost was negotiated to $135,000 for the truck, plus $3,500 for trans- porting the vehicle to Morro Bay, and $10,000 to outfit the truck and install a radio; the total purchase cost would be $148,500. Councilmember Baker commended Chief Zerr for his efforts in obtaining this vehicle, and commented on the competition between small, private fire departments in the East which keep their vehicles in top condition; he believed this a very good purchase. He also commended Mr. Napper for his efficacy in pursuing the purchase. Mayor Sheetz asked how much the City can expect from the sale of the used 1963 Pumper? Chief Zerr said possibly $5,000. Councilmember Wuriu asked why Morro Bay needs a ladder truck? Chief Zerr stated there are many three-story building in Morro Bay which cannot be reached with present equipment, as well as the P.G.&E. power plant. Structures occupying large areas such as the High School and Williams Brothers require a ladder truck in order to have the extension reach to the center of the build- ings; it was also necessary to use a ladder truck to ,fight the South T-Pier fire. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 12, 1989 PAGE 8 a• Mayor Sheetz stated ten years ago she would not have voted in favor of this item; however, the T-Pier fire and the more recent fire on the Embarcadero at Southern Port Traders demonstrates the need for the equipment. She also believed it will be advanta- geous for fighting fires in some of the hillside homes in Morro Bay, should they occur. MOTION: Councilmember Lemons moved Council allocate $148,500 from the General Fund Reserve Budget for the purchase of a 1978 Seagrave Ladder Truck; and, declare the 1963 Central Fire Pumper (ID No. C95RU351374) as property surplus to the City's needs and authorize staff to ad- vertise and sell the used pumper engine to the highest bidder. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) Councilmember Wuriu noted the funds for this purchase are taken from reserve which is established for just such a purpose. D-1 RESOLUTION NO, 68-89 APPROVING CITY MASTER FEE SCHEDULE FOR FISCAL YEAR 1989-90 Louise Burt reviewed the 1989-90 Master Fee Schedule noting sev- eral new fees and changes; the overall 4.6% increase is in accor- dance with the Consumers Price Index change and allowed by Morro Bay voters when they adopted Measure A in November 1988. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the matter was returned to Council for action. MOTION: Councilmember Baker moved for the adoption of Resolu- tion No. 68-89. The motion was seconded by Councilmem- ber Wuriu and unanimously carried. (5-0) D-2 MORRO BAY COMMERCIAL FISHERMEN'S ORGANIZATION PROPOSAL FOR COOPERATIVE INSTALLATION OF EMERGENCY TELEPHONES IN THE MORRO ROCK AREA Mr. Davis reviewed a proposal by Steve Rebuck, representing the Al French Memorial Fund, to install an emergency telephone at Morro Rock thereby enhancing harbor accident reporting time by the public. Precious moments are lost in the time it takes an individual to travel from the scene of a harbor accident to the Harbor Office to report an accident. Mr. Davis reviewed the proposed sites of a telephone positioned to allow a caller to maintain visual contact with the most likely accident areas. Pacific Bell would provide a Charge -a -Call tele- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 12, 1989 PAGE 9 phone that does not accept coins; only the operator or 911 may be called or a telephone charge card used. He reviewed the costs involved in placing telephones on the water side of Coleman Drive and in the parking area overlooking the surfing areas north of Morro Rock, which amount to approximately $10,000 because of the amount of trenching needed to underground telephone lines at these locations. Staff is suggesting an alternative which requires virtually no funding; this is to place the telephone at the restroom located at Morro Rock. No trenching will be required, and although visual contact with accidents while on the telephone would not be maximized, it would provide emergency communications near the area. The Harbor Advisory Board recommended placing an emergency tele- phone at the gate just west of Target Rock as soon as possible, and the second telephone on the north side of the Morro Rock be looked into when time and money are available. Staff recommends the telephone be installed near the existing restroom where lines and power already exist from an earlier pay phone. Staff will then continue to work with the proponents of this project to re- fine responsibility and funding for the original concept. Mayor Sheetz opened the matter to the public for comments; there were no comments and the item was returned to Council. Councilmember Lemons asked if it would be possible to extend telephone lines overhead to eliminate the trenching costs? Mr. Nichols stated the Morro Rock/Coleman Drive area is an under- ground utility district area and any utilities must go under- ground. He indicated he could research the matter to see if there are any exceptions. Councilmember Wuriu stated the telephone could be placed at the restroom now, and if funds later became available, the telephones could be placed at the preferred locations. Mr. Davis stated the telephone company is donating the telephone at this time; he does not know if they would be willing to relocate it or install other ones at a future date in time. MOTION: Councilmember Wuriu moved Council authorize staff to arrange the installation of a Charge -a -Call telephone at the Morro Rock restroom, and instruct staff to con- tinue to work with the proponents on refining responsi- bility and funding for the original concept. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 12, 1989 PAGE 10 D-3 APPEAL HEARING OF PLANNING COMMISSION APPROVAL TO ALLOW CONSTRUCTION OF A GUEST HOUSE ABOVE AN EXISTING DETACHED GARAGE AT 246 KERN AVENUE (CUP 05-89; MARSHALL. APPELLANT; DOHERTY. APPLICANT) Mr. Farrel reviewed Jim Doherty's application to build a 301x25' guest house over an existing garage at 246 Kern Avenue, and applicable zoning consideration. The Planning Commission ap- proved the request with conditions, and their action was appealed by Clyde Marshall on May loth. Mr. Farrel noted there is usually a concern with guest houses being used as rentals; one of the conditions of the permit is a deed restriction prohibiting rental of the unit. Mr. Marshall is also concerned as to the impact to his view of the golf course, and the intrusion on the privacy of his back yard. However, the Zoning Ordinance does allow two- story structures in this area, and staff recommends Council deny the appeal and uphold the Planning Commission determination. Councilmember Wuriu asked about the concern the unit will be used as a rental and the City's ability to enforce the deed restric- tion. Mr. Farrel stated while staff does not frequently check on whether or not the proper use is being maintained, neighbors are typically very good enforcement agents. Mayor Sheetz opened the hearing to the public for comments. Clyde Marshall, 234 Kern Avenue, stated his concern on enforcing the guest house status of the structure has been answered. He noted when he was building his house, various structural and drainage requirements were made which cost him an additional $900. He believes the same requirements should be placed on this addition. Mr. Farrel stated when the building plans are re- viewed, he will make sure they comply with code requirements. MOTION: Councilmember Odell moved Council uphold the Planning Commission action and adopt Resolution No. 66-89. The motion was seconded by Councilmember Wuriu and unani- mously carried. (5-0) ___ • _ \ • _ _\ •MGM._ • �� _V_�. _i_ _ 44_Aus This item was earlier continued to the next meeting at the writ- ten request of the applicant. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 12, 1989 PAGE 11 Mr. Farrel reviewed this item which has been evaluated and recom- mended for approval by the Planning Commission. It consists of a reorganization of the General Plan which contains the various elements (Land Use, Circulation, Safety, Seismic Safety, Noise, Open Space/Conservation, Housing, Scenic Highways, and Park and Recreation). In 1985, Council directed the various elements be combined into a single document for convenience, and the Morro Group consulting firm was hired to do the work. No action is recommended at this meeting because of the length of the Plan and because Council may wish to take some time reviewing it. Mr. Farrel noted this is only a reformatting of the various elements of the General Plan and not a rewrite of the Plan; poli- cies have not been changed. He recommended Council continue this item to the next meeting. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the matter was returned to Council. MOTION: Mayor Sheetz moved this item be continued to the meet- ing of 26 June 1989. The motion was seconded by Coun- cilmember Wuriu and unanimously carried. (5-0) Mr. Farrel reviewed the request of Ron Hurlbert and Gary Swauger to construct a 10-unit condominium on North Main Street between Whidbey Way and Vashon Streets. The request at this time con- sists of various incentives to be offered by the City to support a moderate -income housing project. He reviewed zoning ordinance provisions allowing incentives such as reduced fees, modified development standards, expedited processing procedures, provision of water at reduced cost, direct financial subsidy, or grant assistance. He noted this is a negotiated process and the City is not obligated to agree to those incentives requested by the developer. Mr. Farrel reviewed the site consideration, reduction of site development standards, and the recommended incentives and pro- jects features most appropriate. He discussed the developer's request for priority status under the water operating procedures for low and moderate income housing projects. Although there are provisions in the code for allowing water incentives, the lottery system and long waiting list were not envisioned when the code was adopted. He suggested Council may wish to have staff analyze MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 12, 1989 PAGE 12 the concept of priority to low/moderate income housing for next year's Water Operating Procedures. Gary Swauger, applicant, emphasized they are most interested in the priority status for water allocation, and believes the other incentives can be worked out with staff. Mr. Swauger quoted from City ordinances and the Coastal Act emphasizing priority water status for low/moderate income housing. Mayor Sheetz asked what the units will be sold for? Mr. Swauger stated the maximum allowed is $98,700 for a two -bedroom unit of approximately 850-915 sq.ft. Robert Enns stated the issue on this project is water. He dis- cussed the current water waiting list for multi -family projects. If Council allows this incentive, all people on the waiting list- ing will apply for low/moderate cost housing and request priority status. Mayor Sheetz closed the hearing to the public and returned the matter to Council. Councilmember Wuriu stated the system should have some modifying effect on the other established policies so only a percentage of low and moderate income applicants would be able to proceed. Councilmember Lemons believes the definitions of low and moderate income housing have changed to what today is called low and very low income housing. He asked how the City makes sure the housing maintains its low income status when it is sold? Mr. Skousen stated there is a deed restriction that gives the City enforce- ment opportunities. The City is notified at the time of a sale and the price of the sale; the purchaser must be screened and qualify and the City supervises the sale cost. Regarding the question of water priority, Ms. Skousen stated it is her opinion the Coastal Act that set the priorities is not longer binding on the City since the City's Local Coastal Program has been certi- fied. The City can set local procedures and give some incen- tives, but whether or not to give water priority is the Council's discretion to set. Councilmember Odell stated he likes this type of project but could not support approval of the project based on what has been presented. At the time he and Councilmember Lemons were putting together the incentive ordinance, there was no lottery and the water situation in the City was not the same. Mayor Sheetz commented $98,000 per unit does not sound like affordable housing. She believes it is necessary to establish rules for this type of water priority. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 12, 1989 PAGE 13 MOTION: Councilmember Wuriu moved Council endorse the Planning Commission's list of incentives for this project. The motion was seconded by Councilmember Baker. Councilmember Lemons asked for an explanation of the "equivalent value" for waiving permit fees. Mr. Farrel stated that has not been calculated yet, and will be a difficult task to do. It means the value that would be equivalent to a density bonus if that were an option, and the applicants are not considering increased density because the site cannot even support the requested 10 units. There was further discussion regarding the priority of low/moderate income housing in water allocation with direction for staff to review and recommend changes to allow a percentage of this type of housing priority in 1990. The motion was unanimously carried. (5-0) E. CLOSED SESSION MOTION: Councilmember Odell moved the meeting adjourn to Closed Session. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mayor Sheetz stated Council is adjourning to Closed Session to discuss pending litigation in accordance with Government Code Section 54956.9(a) in the matter of Keyoto-Natalie vs. City of Morro Bay. The meeting adjourned to Closed Session at 8:44 p.m. and returned to regular session at 9:23 p.m. F. ADJOURNMENT MOTION: Councilmember Odell moved the meeting adjourn to Wednesday, June 14, 1989, 3:00 p.m. at the San Luis Obispo City/County Library, 995 Palm St., San Luis Obispo, for a joint meeting with the San Luis Obispo City Council regarding water projects. The motion was seconded by Councilmember Baker and unanimously car- ried. (5-0) The meeting adjourned at 9:24 p.m. Recorded by: ARDITH DAVIS City Clerk MINUTES - MORRO BAY CITY COUNCIL BUDGET WORKSHOP - JUNE 7, 1989 LIBRARY COMMUNITY ROOM - 8:30 A.M. Mayor Sheetz called the meeting to order at 8:30 a.m. PRESENT: Rose Marie Sheetz Mayor John Baker Councilmember John Lemons Councilmember Jeff Odell Councilmember Tom Wuriu Councilmember ABSENT: None STAFF: Gary Napper City Administrator Judy Skousen City Attorney MOTION: Councilmember Lemons moved the meeting adjourn to Closed Session. The motion was seconded by Councilmem- ber Wuriu and unanimously carried. (5-0) Mayor Sheetz announced the meeting adjourning to Closed Session to discuss personnel matters in accordance with Government Code Section 54957. The meeting adjourned to Closed Session at 8:30 a.m. and returned to regular session at 9:05 a.m. Council continued Budget Workshop sessions. Staff present were Louise Burt, Finance Director; Nick Nichols, Public Works Direc- tor; and Forrest Henderson, Assistant City Administrator. Mr. Napper stated the Water Operating and Maintenance Budget (excluding capital projects) has increased by 10% since July 1987 without any corresponding rate increase. Mr. Nichols reviewed the proposed Water Budget, noting funded and unfunded capital projects and the timing of new water needs for the City. Mayor Sheetz suggested the bed tax be raised 2% to pay for new water projects; it would add $200,000 per year to the budget. Councilmember Lemons remarked revenues are also needed to address sinking -fund system needs arising today. Councilmember Lemons said the City should pursue the leak detec- tion project in the amount of $20,000 to $30,000 to test old mains and transmission lines which have never been tested. MINUTES - MORRO BAY CITY COUNCIL BUDGET WORKSHOP - JUNE 7, 1989 PAGE 2 MOTION: Councilmember Lemons moved a leak detection project be funded in FY 89-90 Budget in the amount of $25,000, if the water rates are raised during the budget process. The motion was seconded by Councilmember Wuriu and car- ried with Mayor Sheetz voting no. (4-1) Councilmember Lemons requested staff prepare a summary of the most -likely new water projects, and ideas on how to fund them. Mayor Sheetz requested the Finance Director prepare a new water rate schedule adding additional tiers on the high end. Coun- cilmember Lemons stated the minimum charge rate should also be examined for possible increase to cover fixed costs of operating the water system. Mr. Napper noted the Sewer Budget's Operating and Maintenance ex- penses have increased by 19% since July 1987 without a corre- sponding rate increase. Mr. Nichols reviewed the budget requests for this department. Mr. Napper stated staff is proposing a 5% sewer rate increase for renewal of the treatment plant NPDES Permit necessary for our effluent discharge to the ocean. Mayor Sheetz opened the meeting to the public for comments regarding the Water and Sewer Budgets. Charles Palmer stated all projects will cost money and it would behoove the City to begin collecting the money now. He dis- tributed a sample rate schedule dated April 1989 for Council con- sideration. His plan is to charge different rates for different types of uses; single family dwelling, condominiums, rest homes. Bruce Risley asked why a new chlorine building will cost $100,000. Mr. Nichols explained the standards required and equipment needed for the new building, but also noted it is not being proposed for funding. Mr. Risley also referred to the Water Revenue Budget Improvement Fund noting rebates on developer retrofit fees equals $750,000 since 1982-83; he urged Council to do something about this fallout in water revenues. MOTION: Councilmember Lemons moved Council adjourn to the Cayucos Sanitary District Joint Powers Agreement meet- ing on June 7, 1989 at 7 p.m. in Cayucos. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) The meeting adjourned at 10:58 a.m. • - • • - • • �,1��i. Deputy.l' [-A MINUTES - MORRO BAY CITY COUNCIL BUDGET WORKSHOP - JUNE 6, 1989 VETERANS MEMORIAL HALL - 8:30 A.M. Mayor Sheetz called the meeting to order at 8:31 p.m. PRESENT: Rose Marie Sheetz Mayor John Baker Councilmember John Lemons Councilmember Jeff Odell Councilmember Tom Wuriu Councilmember ABSENT: None STAFF: Gary Napper Louise Burt Forrest Henderson Dave Howell Bernie Zerr City Administrator Finance Director Asst. City Administrator Police Chief Fire Chief Chief Howell reviewed his departmental budget noting it has in- creased by approximately 2%. He requested additional personnel, Records Clerk and Police Officer, and indicated the Records Clerk position was recommended; he noted the department is currently down 3 officers in deployment. Councilmember Lemons expressed concern with filling the officer vacancies and Councilmember Wuriu questioned salary levels being too low and no vehicle replacements. No changes were made in the Police Department budget. Council discussed how they should allocate the Aid to Agencies budget to the various agencies requesting assistance. Mayor Sheetz did not think "the Arts" fit into this category, and sug- gested putting a cap on the amount given to individual agencies. Councilmember Lemons was not in favor of placing a cap on the amounts. He suggested those agencies having high administrative costs and receiving aid from United Way should receive very lit- tle from the City. Mayor Sheetz requested Councilmembers prepare a list on how they would like to allocate the funds and bring it to the next meeting for discussion. MINUTES - MORRO BAY CITY COUNCIL BUDGET WORKSHOP - JUNE 6, 1989 PAGE 2 Chief Zerr reviewed his budget noting the non -funded request of $100,000 for installment purchase of a ladder truck. He also commented on the emergency medical services ballot measure to be on the November 1989 ballot. Councilmember Baker noted staff is working on the acquisition of a used ladder truck; Mr. Napper remarked this subject will be brought to the City Council for action shortly if negotiations can be finalized. Councilmember Lemons asked about extending fire and emergency medical services to unincorporated areas adja- cent to the City. Chief Zerr responded the City has mutual aid but not automatic aid agreements with the County for these ser- vices, as the County has indicated they will not reimburse the City for our expenses to respond in these areas. There were no changes made to the Fire Department budget. Alan Davis stated revenues have increased by $200,000 per -yea * over the last several years. He noted his future needs for addi- tional office personnel and a harbor patrol officer; but, the re- enactment of the Harbor Reserve program will provide necessary weekend relief. Council directed staff to begin advertising now for the Harbor Reserve Officer positions. Council discussed the South T-Pier options with regard to the fire, and the status of the engineer's report to rebuild the pier. Mr. Napper stated the costs to install sprinkler systems on the piers is in the area of $125,000 for each pier, rather than the $25,000 for each pier cited in the Fire Master Plan sev- eral years ago. There were no changes to this budget. ENGINEERING & ADMINISTRATION Mr. Nichols reviewed this budget; there were no changes. PROPERTY MAINTENANCE Mr. Nichols reviewed this budget; it was noted the existing Facility Maintenance Worker will be transferred to the Recreation and Parks Department by this budget for purposes of consolidating personnel involved in maintaining and repairing our facilities. There were no Council changes to the remainder of this particular budget now involving only the mechanics. *Amended 7-10-89 Council meeting. MINUTES - MORRO BAY CITY COUNCIL BUDGET WORKSHOP - JUNE 6, 1989 PAGE 3 YW.R, Councilmember Wuriu asked what each trip in the Dial -A -Ride costs the City? Mr. Napper stated $3.50. Mr. Upton stated Morro Bay costs for a regional transit consolidated services budget would be $23,310 for minimum services, and up to $30,100 for maximum service. In either situation, Morro Bay's costs would be lower than currently projected in the proposed budget. No changes were made in the Transit Budget. Council recessed from 10:41 to 10:49 a.m. STREETS Mr. Nichols reviewed this budget noting funding comes from Traf- fic Safety (5$), Gas Tax (25%), and General Fund (70%). Council made various comments on this budget. Councilmember Lemons suggested a Citywide assessment district to fund street improvements. Councilmember Baker suggested streets be swept earlier in the morning on Main Street between Morro Bay Blvd. and Harbor Street. Councilmember Wuriu stated the budget message should emphasize the fact the City has a Mid -Year Budget as well for capital projects, which is the need in the Streets program budget. No changes were made in this budget. MOTION: Councilmember Odell moved the meeting adjourn to June 7, 1989 in the Library Community Room at 8:30 a.m. for a Closed Session in accordance with Government Code Section 54957, personnel, to be followed by the regular Budget Workshop Session. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) The meeting adjourned at 11:42 a.m. Recorded GARY NAPPER' Deputy City MINUTES - MORRO BAY CITY COUNCIL BUDGET WORKSHOPS - JUNE 5, 1989 LIBRARY COMMUNITY ROOM - 8:30 A.M. Mayor Sheetz called the meeting to order at 8:30 a.m. PRESENT: Rose Marie Sheetz Mayor John Baker Councilmember John Lemons Councilmember Jeff Odell Councilmember Tom Wuriu Councilmember ABSENT: STAFF: None Gary Napper Louise Burt Forrest Henderson City Administrator Finance Director Asst. City Administrator Mr. Napper provided a summary of the FY 89-90 Proposed City Bud- get, noting the total budget represents a 2.4% increase over FY 88-89. Over the next three days, the City Council will review each department's budget and provide direction on changes and program policies. Ms. Burt provided an overview of the projected revenues, noting staff is recommending a 53 sewer rate increase, but no increase in water rates or Dial -A -Ride fares at this time. The sewer rate increase is necessary to offset a 19% increase in sewer operating and maintenance expenses the last two years. Mayor Sheetz stated the Area Coordinating Council consolidation may cost the City additional funds. Council indicated it was not supportive of consolidation if it involves Morro Bay paying higher cost for transit services. Mr. Napper reviewed the City Council, Administration/City Clerk, and City Attorney proposed budgets. Councilmember Lemons stated a dual recording console is needed for recording Council meetings; he also believes the 100 mileage reimbursement rate for City business travel using one's own vehi- cle is too low. Mr. Henderson remarked the City's Travel Policy is presently under review. There were no changes made in the Administration budgets. MINUTES - MORRO BAY CITY COUNCIL BUDGET WORKSHOPS - JUNE 5, 1989 PAGE 2 FINANCE Mr. Burt reviewed this item noting Harbor lease and slip billings are being transferred to the Harbor Department to administer this function. A corresponding overhead reduction to the Harbor Department has been made. There were no changes offered to this budget. Ms. Burt gave the summary of the expenditures in this section of the Budget; these are expenses that cannot be attributed to any particular Department. Items of interest discussed by Council were: Mr. Napper reviewed the amounts requested by various agencies throughout the County. A total budget of $6,500 has been sug- gested to fund these items, and the requests for funding total $10,175. The Council received short presentations by 14 of the 15 groups requesting funds. Council decided to wait until the end of the Budget Workshop ses- sions to make a decision on this item. B. Community Promotions Mr. Napper reviewed this budget that includes a 5% increase for the Local Visitors Bureau contract typically awarded to the Cham- ber of Commerce; membership fee in the County Visitors Conference Bureau; and the Community Promotions Budget having no increase over last year. There were presentations from Bill Mazzacane, Chamber of Commerce; and Jonni Eylar, Visitors Conference Bureau. C. Animal Regulation Councilmember Lemons commented the fee for leash -law violations is too high; Councilmember Odell agreed, but it was noted the City contracts with the County for these services. COMMUNITY DEVELOPMENT Mr. Farrel reviewed the highlights of this budget. He noted future needs for capital projects and another full-time planner. There were no changes made in this budget. • • MINUTES - MORRO BAY CITY COUNCIL BUDGET WORKSHOPS - JUNE 5, 1989 PAGE 3 RECREATION & PARKS Mr. Wolter gave an overview of his department budget, by Divi- sions. Council discussed necessary improvements to the Veterans Memorial Hall, specifically outside lighting and painting. Jim Hartzell and Chuck Clarke, members of the Recreation and Parks Commission, provided input on the need to maintain and repair City facilities. Discussion followed on the idea of getting civic groups and individuals to donate paint and labor to paint the outside of the Veterans Hall. Councilmember Lemons asked how close the department is to being self-supporting. Mr. Wolter stated the Arts and Sports Divisions are approximately 75% self-sustaining, but the total Department includes many non -revenue generating services (e.g. Parks; Facil- ities), and therefore the total Department is probably 208-25% self-supporting. Council made no changes to this Budget. MOTION: Councilmember Wuriu moved the meeting adjourn to the Veterans Memorial Hall, June 5, 1989 at 8:30 a.m. to continue discussion of the budget. The motion was sec- onded by Councilmember Odell and unanimously carried. (5-0) The meeting adjourned at 11:34 a.m. Recorded bv: GARY NAPPER ` Deputy City C1 i • C, E. E-1 F. City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. ADJOURNED REGULAR MEETING — JUNE 8, 1989 CITY HALL CONFERENCE ROOM — 5:15 P.M. 595 HARBOR STREET, MORRO BAY, CA CLOSED SESSION GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION, KEYOTO—NATALIE V. CITY OF MORRO BAY OPEN SESSION CONTINUATION OF 1989-90 BUDGET WORKSHOPS COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JUNE 8, 1989 CITY HALL CONFERENCE ROOM - 5:15 P.M. Mayor Sheetz called the meeting to order at 5:19 p.m. PRESENT: Rose Marie Sheetz Mayor John Baker Councilmember John Lemons Councilmember Tom Wuriu Councilmember ABSENT: Jeff Odell STAFF: Gary Napper Judy Skousen Bill Farrel Nick Nichols Councilmember City Administrator City Attorney Community Develop. Dir. Public Works Dir. E. CLOSED SESSION MOTION: Councilmember Wuriu moved the meeting adjourn to Closed Session. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mayor Sheetz announced Council is adjourning to Closed Session in accordance with Government Code Section 54956.9(a), pending liti- gation, in the matter of Keyoto-Natalie vs. City of Morro Bay. Councilmember Odell arrived at 5:50 p.m. Council adjourned to Closed Session at 5:19 p.m. and returned to regular session at 7:05 p.m. There was no discussion or action on this item. F. ADJOURNMENT MOTION: Councilmember Odell moved the meeting be adjourned. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) The meeting adjourned at 7:05 p.m. Recorded GARY NAPPER' Deputy City Cl ?11/m S 1 & - 7 4-�gc /- `,ue9&ab p-,o CITY OF MORRO BAY BUDGET WORKSHOPS 1989/90 The Morro Bay City Council will meet at the following times to study the proposed budget for the 1989/90 fiscal year. The Monday and Wednesday meetings will be held in the Library Community Room, located at the corner of Shasta and Harbor Streets. The Tuesday meeting will be held in the Veteran's Hall at 209 Surf Street. A copy of the proposed budget will be available for public review in City Hall and the Morro Bay Library. JUNE 5, 1989 - MONDAY Library Community Room 8:30 a.m. - 12:00 Noon 8:30 - Revenue 9:00 - Administration 9:30 - Finance 9:45 - Non -Departmental (includes Aid to Agencies and Community Promotions) 10:00 - Community Development 10:30 - Recreation JUNE 6, 1989 - TUESDAY Veteran's Hall 8:30 a.m. - 12:00 Noon 8:30 - Police 9:30 - Fire 10:30 - Harbor JUNE 7, 1989 - WEDNESDAY Library Community Room 8:30 a.m. - 12:00 Noon 8:30 - Engineering & Administration 9:00 - Vehicle Maintenance 9:30 - Transit 10:00 - Streets 10:30 - Water 11:30 - Sewer i 0 r 5l) 19 r9 City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. ADJOURNED REGULAR MEETING — MAY 31, 1989 COMMUNITY CENTER CONFERENCE ROOM — 5:30 P.M. 1001 KENNEDY WAY, MORRO BAY, CA E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION, KEYOTO—NATALIE V. CITY OF MORRO BAY h • 1.L�lu. � 9 COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. 1 0 MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - MAY 31, 1989 COMMUNITY CENTER CONFERENCE ROOM - 5:30 P.M. Mayor Sheetz called the meeting to order at 5:35 p.m. PRESENT: Rose Marie Sheetz Mayor John Lemons Councilmember Jeff Odell Councilmember Tom Wuriu Councilmember ABSENT: John Baker STAFF: Gary Napper Judy Skousen Bill Farrel Nick Nichols Councilmember City Administrator City Attorney Community Develop. Dir. Public Works Dir. Council went into Closed Session at 5:35 p.m. for the purpose of discussing pending litigation in accordance with Government Code Section 54956.9(a) in the matter of Keyoto-Natalie vs. City of Morro Bay. Councilmember Baker arrived at 6:02 p.m. Council returned to regular session at 6:36 p.m. MOTION: Councilmember Odell moved the meeting be adjourned. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) The meeting adjourned at 6:36 p.m. Recorded GARY NAPPERL/ Deputy City C City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. ADJOURNED REGULAR MEETING — MAY 25, 1989 CITY HALL CONFERENCE ROOM — 4:00 P.M. 595 HARBOR ST., MORRO BAY, CA Fp1100K4K414A A6044440Ni E-1 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION, KEYOTO—NATALIE V. CITY OF MORRO BAY RNEEFT13rour—Irk-1r_ T _ COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. 1 MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - MAY 25, 1989 CITY HALL CONFERENCE ROOM - 4:00 P.M. Mayor Sheetz called the meeting to order at 4:07 p.m. PRESENT: Rose Marie Sheetz Mayor John Baker Councilmember John Lemons Councilmember Tom Wuriu Councilmember ABSENT: Jeff Odell Councilmember STAFF: Gary Napper City Administrator Judy Skousen City Attorney Nick Nichols Public Works Dir. Council went into Closed Session at 4:07 p.m. and returned to regular session at 6:04 p.m. MOTION: Councilmember Lemons moved the meeting adjourn to Closed Session on Wednesday, May 31, 1989 at 5:30 p.m. in the Community Center Conference Room, 1001 Kennedy Way, Morro Bay. The motion was seconded by Councilmem- ber Wuriu and unanimously carried. (4-0) The meeting adjourned at 6:04 p.m. GARY NAPPER" Deputy City Clerk ?9�7 ate, igy-? City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING - MAY 22, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section D) may do so by standing. When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments should normally be limited to three minutes. DECLARATION OF FUTURE AGENDA_ ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the fol- lowing actions are approved without discussion. A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF MAY 8, 1989 A-2 STATEMENT OF INVESTMENTS - APRIL 1989 A-3 EXPENDITURE REPORT - APRIL 1989 A-4 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (BUDD) A-5 NOTICE OF COMPLETION PROJECT PW 85-01, PIPELINE REPLACEMENT PROGRAM PHASE I A-6 NOTICE OF COMPLETION PROJECT PW 86-04, PIPELINE REPLACEMENT PROGRAM PHASE II A-7 APPROVAL OF FINAL MAP FOR TRACT NO. 1521 (SOUTH STREET/MORRO AVENUE CONDOMINIUM CONVERSION) A-8 SET DATE (JUNE 12) FOR APPEAL OF PLANNING COMMISSION'S PRELIMINARY DETERMINATION OF LAND USE CONSISTENCY REGARDING "THE CLOISTERS" 213 HOUSING UNIT SUBDIVISION (CUP 09-87/TM 02-88/CDP 89-87; KEYOTO- NATALIE, APPELLANT) 1 A-9 APPROVAL OF PUBLIC AREA USE PERMITS FOR VARIOUS EVENTS DURING CITY'S 25TH ANNIVERSARY CELEBRATION (PULLED) A-10 HARBOR ADVISORY BOARD RECOMMENDATION REGARDING CIVIC ACTION LEAGUE REQUEST FOR PROHIBITION OF DETONATION OF EXPLOSIVES ON SAND SPIT AREA A-11 SET HEARING DATE (JUNE 12) FOR APPEAL OF PLANNING COMMISSION APPROVAL TO ALLOW CONSTRUCTION OF A GUEST HOUSE ABOVE AN EXISTING DETACHED GARAGE AT 246 KERN AVENUE (CUP 05-89; MARSHALL, APPELLANT; DOHERTY, APPLICANT) A-12 RESIGNATION FROM TV SERVICES AND FRANCHISE BOARD (ROSSETTI) B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 350 AMENDING CHAPTER 17 OF THE MORRO BAY MUNICIPAL CODE (ZONING ORDINANCE) ESTABLISHING THE NORTH MAIN STREET SPECIFIC PLAN (SECOND READING/ADOPTION) B-2 ORDINANCE NO. 351 AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF MORRO BAY AND PUBLIC EMPLOYEES RETIREMENT SYSTEM REGARDING SAFETY EMPLOYEES RETIREMENT BENEFITS (SECOND READING/ADOPTION) C. NEW BUSINESS C-1 DECLARATION OF FIRE STATION NO. 1'S ANTIQUATED FIRE SIREN AS SURPLUS PROPERTY AND AUTHORIZATION TO DONATE SIREN TO SMALL VOLUNTEER FIRE DEPARTMENT IN MISSISSIPPI C-2 RESOLUTION NO. 56-89 PROHIBITING ON -STREET PARKING ON A PORTION OF KENNEDY WAY ADJACENT TO THE MORRO BAY COMMUNITY CENTER PARKING LOT ENTRANCE (3 SPACES) C-3 POSITION ON AB 1000 (HAYDEN) REGARDING PROPOSED OCEAN POLLUTION LEGISLATION AND HARBOR ADVISORY BOARD RECOMMENDATION D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 HEARING FOR CITIZENS' APPEALS TO NOTICES TO ABATE WEEDS IN 1989 WEED ABATEMENT PROGRAM D-2 RESOLUTION NO. 57-89 ESTABLISHING THE FY89-90 CITY BUSINESS LICENSE FEE SCHEDULE D-3 HEARING ON PROPOSED CITY BUDGET FOR FY89-90 D-4 ORDINANCE NO. 352 AMENDING THE MUNICIPAL CODE TO REQUIRE THE INSTALLA- TION OF ULTRA -LOW FLUSH AND FLOW FIXTURES IN ALL NEW CONSTRUCTION AND WHEN REPLACING PLUMBING FIXTURES IN EXISTING STRUCTURES (INTRODUCTION/FIRST READING) 2 D-5 CONTINUED APPEAL HEARING ON PLANNING COMMISSION DENIAL (RESOLUTION NO. 92-88) TO RE -ISSUE WATER EQUIVALENCIES TO THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION (FSLIC) FOR COMPLETION OF BAYSHORE VILLAGE CONDOMINIUM PROJECT (FEDERAL ASSET DISPOSITION ASSOCIATION, AGENT; 188 BAYSHORE DRIVE, 48 UNITS) D-6 CONSIDERATION OF CONCEPT PLAN CUP 08-89 TO ALLOW A 2-STORY ADDITION AND WHARF IMPROVEMENTS TO EXISTING COMMERCIAL BUILDING AT 1001 FRONT STREET IN THE WATERFRONT/PLANNED DEVELOPMENT DISTRICT (CENTRAL COAST SEAFOODS, APPLICANT) D-7 HARBOR ADVISORY BOARD RECOMMENDATIONS REGARDING CIVIC ACTION LEAGUE'S REQUESTS TO PROHIBIT JET SKIING WITHIN MORRO BAY HARBOR, ENFORCEMENT OF 5-MILE PER HOUR SPEED LIMIT IN HARBOR, AND PLACEMENT OF TRASH RECEPTACLES ON NORTH T-PIER D-8 REQUEST FOR AFFORDABLE HOUSING INCENTIVES FOR A POSSIBLE 10-UNIT CONDOMINIUM PROJECT AT THE SOUTH-EAST CORNER OF MAIN STREET AND WHIDBEY AVENUE (SWAUGER/HURLBERT, APPLICANTS) E. CLOSED SESSION NONE i • .):171 COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 22, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. PRESENT: Rose Marie John Baker John Lemons Jeff Odell Tom Wuriu Sheetz Mayor Councilmember Councilmember Councilmember Councilmember ABSENT: None STAFF: Gary Napper Judy Skousen Louise Burt Alan Davis Ardith Davis Bill Farrel Forrest Henderson Nick Nichols City Administrator City Attorney Finance Director Harbor Director City Clerk Community Develop. Dir. Asst. City Admin. Public Works Dir. Reverend Donald Carey gave the invocation, and Councilmember John Baker led the Pledge of Allegiance. •� 1. Andy Zatko presented Mayor Sheetz with a perpetual tro- phy he had devised containing a bottle of prohibition whiskey; her name had been added to the trophy along with previous City Mayors. 2. Anne Freeman, 785 Cabrillo Place, complimented City workers on the pipeline replacement program in her neighborhood; she said the job was well done and the workers very courteous during construction. None. A. CONSENT CALENDAR • 4. �l ��•7�Y'.i�i:{�iH►��:iw'���F�_�L���i�`ili[IL:] Mr. Napper recommended Council approve the minutes as.submitted. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 22, 1989 PAGE 2 A-2 STATEMENT OF INVESTMENTS - APRIL 1989 Mr. Napper recommended Council receive the report for file. A-3 EXPENDITURE REkORT - AP-RIL 1989 Mr. Napper recommended Council approve the Expenditure Report as submitted. A-4 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (BUDD) Mr. Napper recommended Council deny the claim, and authorize the City Clerk to sign and mail the rejection notice. A-5 NOTICE OF COMPLETION PROJECT PW 85-01, PIPELINE REPLACEMENT PROGRAM PHASE I Mr. Napper recommended Council accept the completion of Project No. PW 85-01, and authorize the recordation of the Notice of Completion. A-6 NOTICE OF COMPLETION PROJECT PW 86-04, PIPELINE REPLACEMENT PROGRAM PHASE II Mr. Napper recommended Council accept the completion of Project No. PW 86-04, and authorize the recordation of the Notice of Completion. A-7 APPROVAL OF FINAL TRACT MAP NO. 1521 (SOUTH STREET/MORRO AVENUE CONDOMINIUM CONVERSION) Mr. Napper recommended Council adopt Resolution No. 58-89. A-8 SET DATE (JUNE 12) FOR APPEAL OF PLANNING COMMISSION'S PRELIMINARY DETERMINATION OF LAND USE CONSISTENCY REGARDING "THE CLOISTERS" 213 HOUSING UNIT SUBDIVISION (CUP 09-87 TM 02-88/CDP 89-87: KEYOTO-NATALIE. APPELLANT) Mr. Napper recommended Council set 12 June 1989 as the hearing date, and authorize staff to prepare and mail the appropriate re- ports and notices. Mr. Napper stated this item has been pulled from the Agenda. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 22, 1989 PAGE 3 Mr. Napper stated no action is required as use of the lands for detonations will be discontinued per previous administrative actions. Mr. Napper recommended Council set 12 June 1989 as the date to hear the appeal, and staff be authorized to prepare and mail the appropriate reports and notices. Mr. Napper recommended Council accept the resignation of Gabe Rossetti from the Cable TV Services and Franchise Board, and rat- ify staff's action to advertise the vacancy. MOTION: Councilmember Lemons moved for approval of the Consent Calendar. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) B. UNFINISHED BUSINESS •;!_,s_� _ �• mow__ !_� ,_;' • :._ � ;S• Vim_ � _4: - - � •`• ' � _,:_ _; •`• 4�-_•f Mr. Napper stated this item constitutes the second reading and adoption of the North Main Street Specific Plan. Upon adoption, the Plan will be submitted to the Coastal Commission for certification. MOTION: Councilmember Lemons moved Ordinance No. 350 be read by title and number only. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) Mr. Napper read Ordinance No. 350 by title and number only. MOTION: Councilmember Lemons moved for approval of the second reading and adoption of Ordinance No. 350. The motion was seconded by Councilmember Odell and unanimously carried by roll call vote. (5-0) • • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 22, 1989 PAGE 4 Mr. Napper stated this Ordinance enacts a 2% at 50 Retirement Plan and other retirement benefits for safety employees in accor- dance with Memorandum of Understanding agreements; the benefits become effective July 1989. MOTION: Councilmember Baker moved Ordinance No. 351 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Napper read Ordinance No. 351 by title and number only. MOTION: Councilmember Baker moved for approval of the second reading and adoption of Ordinance No. 251. The motion was seconded by Councilmember Lemons and unanimously carried by roll call vote. (5-0) C. NEW BUSINESS ILS _AP_ !J11rW1f17 Mr. Napper stated the City of Arroyo Grande Fire Department is collecting surplus fire equipment to donate to a small volunteer fire department in Mayersville, Mississippi. The City has a 110 volt fire siren it no longer uses which Chief Zerr would like to donate; the City uses pagers instead to call reserves to the Fire Station. MOTION: Councilmember Baker moved Council declare the fire siren system property surplus to the City's needs, and authorize the disposal of the system through donation to the Volunteer Fire Department of Mayersville, Mississippi. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) C-2 Mr. Nichols stated the City has received a number of complaints regarding the restricted sight distance for vehicles leaving the Community Center. The Engineering Division conducted a sight distance study and recommends three on -street parking spots adja- cent to the driveway on the north side be eliminated . MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 22, 1989 PAGE 5 MOTION: Mayor Sheetz moved for the adoption of Resolution No. 56-89. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) C-3 POSITION ON AB 1000 (HAYDEN) REGARDING PROPOSED OCEAN POLLU- TION LEGISLATION AND HARBOR ADVISORY BOARD RECOMMENDATION Alan Davis stated AB 1000 would create a Department of Ocean Resources to enact the Ocean, Bays and Estuaries Protection Act. An analysis of the bill from Assemblyman Eric Seastrand's office states the bill is "costly and unnecessary"; there are existing programs which cover most of the proposals in the bill. The Har- bor Advisory Board unanimously recommends Council oppose the leg- islation as another redundant layer of bureaucracy. MOTION: Councilmember Lemons moved Council go on record oppos- ing AB 1000. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) D. PUBLIC HEARINGS REPORTS & APPEARANCES D-1 HEARING FOR CITIZENS' APPEALS TO NOTICES TO ABATE WEEDS IN 1989 WEED ABATEMENT PROGRAM Mr. Napper stated approximately 700 notice have been mailed to property owners advising them to abate their weeds. This hearing is for the purpose of allowing those property owners the opportu- nity to appeal abatement of their weeds. No written appeals have been received to date; weeds will be abated between May 15th and June llth. Mayor Sheetz opened the hearing to the public; no appeals were presented. MOTION: Councilmember Lemons moved the hearing to be closed to the public for appeals to City notices to abate weeds. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) D-2 RESOLUTION NO 57-89 ESTABLISHING THE FY89-90 CITY BUSINESS LICENSE FEE SCHEDULE Louise Burt stated in November 1988, voters approved Measure A which allows for an annual CPI adjustment to Business License rates retroactive to 1986. From 1986 to 1985, the CPI increased 13%; the proposed rate schedule reflects the 13% increase. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 22, 1989 PAGE 6 MOTION: Councilmember Baker moved for adoption of Resolution No. 57-89. The motion was seconded by Councilmember Wuriu and unanimously carried by roll call vote. (5-0) D-3 HEARING ON PROPOSED CITY BUDGET FOR FY89-90 Mr. Napper reviewed the highlights of the FY89-90 Budget noting the total is $7.97 million which represents an increase over last year of 2.4%. Mayor Sheetz opened the hearing to the public for comments. Howard Gaines reminded Council of the spirit of a 1980 measure which limited the amount of revenue allocated to Community Promo- tions; the measure was declared invalid by the courts. He noted past financial problems within the Chamber of Commerce, and sug- gested the Council insist the Chamber furnish the City with a fiduciary bond for performance using City monies. Nancy Bast, 450 Fairview, noted the loss of City revenue because of less water and sewer hook-up fees and suggested Council charge full fees for retrofit applications. Joan Mihay stated the sewer rate should be a set amount and not go up and down according to water usage since a good portion is used for irrigation and does not go into the sewage system. Howard Gaines spoke against raising sewer rates and said Council should borrow the monies from the General Fund instead. Mayor Sheetz closed the hearing to the public. Louise Burt explained the sewer rate is based on a complex for- mula and includes much more than just the flow through the sys- tem; there are costs relating to ocean outfall testing, person- nel, and insurance which are required regardless of flow. Mr. Napper also noted replacement of sewer lines and maintenance of the collection system have caused the operational expenses to increase in the Sewer Fund. Councilmember Baker referenced the comments regarding the Chamber of Commerce and stated no one in the Chamber of Commerce has taken money and left with it. The City contracts with the Cham- ber for a visitors service bureau and all things contracted for have been done. Mayor Sheetz stated the Budget would be further deliberated dur- ing Budget Workshops to be held beginning June 5th in the Library Community Room at 8:30 a.m. MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 22, 1989 PAGE 7 • • : • _ • v • �+L��].L�ll�t{•��i:��C•l•]!]_�il.K•i;C�I•1.1����i IgpQ Mr. Napper stated Council considered this matter at their last meeting and directed the Ordinance be amended to require the lk gallon toilets as of January 1990. The amended Ordinance is be- fore Council and it is in order to approve it for first reading. Councilmember Wuriu asked if 3k gallon toilets can be retrofitted to 1k gallons and qualify for water equivalency units? Mr. Napper stated under the theory that the units use less water, such a retrofit would be permissible. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. MOTION: Councilmember Lemons moved Ordinance No. 352 be read by title and number only. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mr. Napper read Ordinance No. 352 by title and number only. Councilmember Lemons asked if it is necessary to provide for a penalty if someone installs the 1k gallon toilet and later replaces it with a 3k gallon toilet. Ms. Skousen stated if an individual exchanges the low flow fixtures for higher flow fix- tures, they are violating their building permit and the Municipal Code and could be prosecuted if caught. MOTION: Councilmember Lemons moved for approval of Ordinance No. 352 as first reading. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) pq •.- , - - - JNHFW Councilmember Wuriu stated he wished to make an amendment to the Resolution at this time so it can be considered during the public MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 22, 1989 PAGE 8 hearing portion of the meeting. He requested a condition be added to require the project be done in phases; the first phase has been completed, Phase II or 24 homes can be built this year (1989), and Phase III next year. He is concerned about the impact of 48 homes on the City's water supply, and said the City should also retain the ability to stay the issuance of water if the City is forced to implement more stringent water conservation measures. Ms. Skousen stated both suggestions are legal and can be implemented by Council. Mr. Mapper stated Council is currently in Step 2 of a 4 step water conservation program; Mayor Sheetz stated if Council imple- ments Step 4, a moratorium could be imposed on current development. 60 MOTION: Councilmember Wuriu moved Resolution No. 99-89 be amended to require the project be done in phases; Phase II to be done this year, and Phase III next calendar year; and, the City reserves the right to stay the water equivalencies for construction in the event the City reaches Level 4 of its water conservation program. The motion was seconded by Mayor Sheetz and unanimously carried by roll call vote. (5-0) Mayor Sheetz opened the hearing to the public for comments. Suzanne Fryer of Sinsheimer, Schiebelhut & Baggett, attorney rep- resenting FSLIC, was present and stated she would answer ques- tions if Council had any. Spike Lynch of Inland West Development was concerned with the amendment proposed by Councilmember Wuriu. He stated the Depart- ment of Real Estate will not issue the public report to allow sales to commence unless they can be assured Inland West can com- plete all units in the project because common area funds are spread over the entire project. From a construction standpoint it is not a problem, but he will need to demonstrate to the Department of Real Estate he has the approvals necessary to com- mence sales; he said their only concern is the welfare of the buyers. Mr. Lynch stated his lender also wants the project com- pleted in one phase; he requested the permits be issued but be allowed automatic time extensions. Mayor Sheetz asked how long it would take to build the project? Mr. Lynch said each phase would take approximately 8 months. Mayor Sheetz commented the first phase would not be completed until next year at any rate. Mr. Lynch stated time is not the problem as much as being issued all the permits up -front; he does not oppose the phasing as long as all the permits are issued. Sue Devoe, 184 Main Street, discussed the sight distance problem because of the fence, and stated because of the construction MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 22, 1989 PAGE 9 impacts to her living situation, phasing the project is not a good idea. Elizabeth Baker stated the City is not stuck with the project the way it is; the City is in primary control and can change the pro- ject. She said the project does not enhance Morro Bay. Joan Mihay, 785 Cabrillo Place, stated the response from FSLIC attorneys does not address the fact the rights to this project expired October 23, 1985. She stated Council has no right to grant any permits or pipeline water for this project, and should treat it as though it is a new owner. Anne Freeman, 785 Cabrillo Place, was outraged an agency of our government is threatening to sue and use taxpayers money to bail out a Savings and Loan; they ignore the existing buildings on the site are worth $4 million if nothing else is placed on the prop- erty. Ms. Freeman pointed out staff states the changes proposed by the developer are minor and FADA states they are major; she agrees with FADA and the project should go back to the Planning Commission because of that fact. She suggested Council refer this matter to an impartial party for settlement. Hilda Heifetz, 140 Main Street, distributed and read a prepared statement advising the City to protect the community's rights, and stating they may file a lawsuit to make sure the City does so. She distributed and read another statement regarding contact with the Coastal Commission about this project and the need for the Coastal Commission to review any changes. She requested Council postpone a decision on this item until review by the Coastal Commission. Spike Lynch, Inland West Development, outlined concessions he had made on the project as a result of meeting with the neighbors, and charged certain neighbors with being self-serving. He stated he did not develop the property and is not responsible for the existing conditions of the site. He is requesting re -issuance of the water equivalencies in exchange for a completed project. Randy Ruff commented on the chaotic administration of this ill- conceived project, and suggested it be sorted out in the courts. Bruce Risley, President of Civic Action League, said they had previously recommended Council treat this developer like any cit- izen and let him stand in line for water. He charged the devel- oper with making a commitment to property owners in the area to visit them and listen to their concerns, and he did not fulfill it. William Manley spoke in opposition to allocating water to this project, and suggested an election on it to let the people decide. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 22, 1989 PAGE 10 Mayor Sheetz closed the hearing to the public. Mayor Sheetz asked Mr. Farrel if the Coastal Commission had con- tacted him regarding this project? Mr. Farrel stated Les Strnad of the Coastal Commission did call. He said Coastal Commission Development Permits are assigned to individuals, not to proper- ties, so the permit will have to be transferred which may be an administrative function by the Coastal Commission. If there are changes, the Coastal Commission will have to make them, and it is not the City's responsibility to be concerned about the Coastal Commission's permits. He does not see a problem with the Coastal Permit at this point. Mayor Sheetz stated the only people who are going to lose if law- suits are filed on this item is the community; they are the ones who pay for the lawsuits. She said at this point Council can approve the project, deny it, or ask the courts to make the decision. Councilmember Wuriu stated he believes strongly in the phasing of the project, and would be willing to vote in favor of it with that condition. Councilmember Lemons was concerned if the area is left in its present condition for an extended period of time, there will be problems with transients and vandalism. He will support approval of the Resolution with the amendments suggested by Mr. Napper and Councilmember Wuriu. Councilmember Baker commended the neighbors of the Bayshore development and their diligent determination and intelligence in presenting their position on this item. He believes their biggest problem with the project is their loss of view, rather than issuance of the water. He agrees with Councilmembers Lemons and Wuriu and will vote in favor of the project. Councilmember Odell commented on the complex and messy history of this project, and stated there is no easy way out. He proposed a motion to let the project go forward: MOTION: Councilmember Odell moved a condition be added to the Resolution to allow them to gain water equivalencies through the credit they would earn by installing 1.5 gallon flush toilets, and the remainder of the water equivalencies are to be earned and awarded to the pro- ject through a credit program by their installation of water conservation fixtures and/or other water conser- vation technologies at high -use facilities such as schools, commercial and coin -operated laundries, conva- lescent centers, car washes, campgrounds, trailer MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 22, 1989 PAGE 11 parks, apartment buildings, motels, etc. Mayor Sheetz seconded the motion for discussion. Councilmember Lemons was not in favor of the motion. He said the issue is whether or not they are entitled to the original pipeline water they were given; he believes they are, and is not in favor of imposing additional water conditions. There was considerable discussion regarding the motion; Coun- cilmember Wuriu thought the idea is good, but it does not seem Council will be able to work out the details this evening. He believed Council should make a decision on this project tonight. He said he would be willing to amend the motion to require the developer to take whatever water saving/retrofit steps are possi- ble and leave it up to the discretion of the Community Develop- ment Department. Councilmember Baker reminded Council this project was issued water equivalencies 10 or 12 years ago; if the Savings and Loan had not gone bankrupt, the project would be behind us and the water already allocated. Councilmember Odell noted the developer went bankrupt before the Savings and Loan did. Mayor Sheetz asked how much water the project is saving by build- ing now with water saving fixtures as opposed to having been built several years ago? Mr. Napper stated if the project were completed in a timely manner when first begun, it would have averaged a 7 acre foot usage per year; now the estimate is 4.1 acre feet per year. The motion failed on the following roll call vote: AYES: Odell NOES: Baker, Lemons, Wuriu, Sheetz MOTION: Councilmember Lemons moved the Resolution be amended to include the conditions the existing fence be lowered to 4 feet and all outdoor lighting be capped or shielded to reduce the glare. The motion was seconded by Coun- cilmember Wuriu and unanimously carried. (5-0) MOTION: Councilmember Baker moved for the adoption of Resolu- tion No. 60-89 as amended. The motion was seconded by Councilmember Wuriu and carried on the following roll call vote: AYES: Baker, Lemons, Wuriu, Sheetz NOES: Odell Councilmember Wuriu commented the derogatory statements made by Mr. Lynch about the neighborhood residents were inappropriate; they are concerned citizens and have worked hard. He does not MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 22, 1989 PAGE 12 believe people who stand up to be counted should be castigated for their efforts. Mayor Sheetz agreed. Council recessed from 8:25 p.m. to 8:37 p.m. Mr. Napper stated he had received a request from the applicant on Item D-8 that it be continued to the next meeting. Mayor Sheetz asked if any members of the public were to present to speak on Item D-8; there were no responses. MOTION: Councilmember Lemons moved Item D-8 be continued to the next meeting. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) y 11 • 1 �r ' � 4 � i• V • • • VI4 � _ Mr. Farrel stated the application is a Conditional Use Permit Concept Plan to add to and enlarge an existing development con- sisting of repair and extension of the wharf, expansion and enclosing the commercial fish processing plant, adding a second floor to part of the processing plant for additional office, enclosing the shipping and receiving area, fencing and improving truck -loading area, adding two 35-foot long floating docks to replace parts of the existing wharf, paving and landscaping of the parking lot for 23 spaces, and signage. He displayed an illustration of the proposal detailing the improvements; there were also schematic drawings of the impact to views from various sides of the project. Mr. Farrel gave a detailed report on the concerns and conditions proposed for the project. Mayor Sheetz asked if this is a land or water lease site? Alan Davis said it is primarily a water lease, with a small land por- tion; most of the site is private property. Council asked questions regarding the height limitation of 17 feet and the proposed 24 feet for this project. Mr. Farrel stated it is not possible to get 2 stories out of seventeen feet; the second story is for functional office uses adjacent to the business. The existing building is 20 feet; the project is in the Planned Development (PD) Zone which allows height variances in return for public benefits. Mayor Sheetz opened the hearing to the public for comments. Steven Wise, project architect, stated the facility contains gross deficiencies which need correction. The proposal meets all operational needs; a single story will not accommodate those i • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 22, 1989 PAGE 13 needs. He requested Council allow exception to the 17 foot height limitation as the second story is necessary to oversee wharf operations and is a significant business benefit. Unsightly equipment located on the roof of the current structure will be enclosed in a pitched roof. He noted the vacated office space on the second story will not be leased and the space will be used for storage; therefore, a recalculation of reduced park- ing requirements is necessary. Bruce Risley, President of CAL, cited various Municipal Code and Land Use Plan regulations regarding height limits. He reminded Council the Bandstand project was limited to 17 feet. He stated the public access areas need to be maximized and it does not appear they are from the plans presented. Also, the parking requirements do not conform to what the Coastal Commission has required for the Marina project. He requested Council send the project back to the Planning Commission for further study because of the importance of it. Nancy Bast stated the project violates the LUP and Ordinance; the view from the adjacent park needs to be considered. She was con- cerned the extension of the project into the water leaves little room for boats to be tied alongside within the lease boundaries and for other boats to navigate the adjacent channel. She cited parking as another concern. Ed Ewing, 238 Pacific, encouraged Council to approve the project but would not want the structure to be used for other commercial visiting purposes. Mike DeGarimore, applicant, stated he has been in Morro Bay since 1958 and involved in the commercial fishing business the entire time. He purchased this business 4 years ago, and produces 7 to 8 times the volume the Brebes family did when they had the site. He requested Council approve the concept plan. Warren Dorn, 212 Beach Street, spoke in favor of the project. He noted he looks down on the site from his residence, and looks forward to the improvements as being more sightly than what is there now. Joan Mihay stated she is in favor of enforcing the laws; if there is a height limitation, Council should not keep making excep- tions. There is no public benefit for the exception, the benefit is for the applicant. Anne Freeman stated she cannot support the concept of violating the height limitation on the Embarcadero. Howard Gaines was concerned the parking requirements are not suf- ficient; if the office space on the second floor is leased, the applicant should be required to provide additional parking. He 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 22, 1989 PAGE 14 said the City should collect the parking fees at the beginning of the project rather than later. Dale Reddell, 680 Sequoia, supported the project. He said the City needs this development as it will provide numerous jobs for young people. Dan Reddell stated this project will contribute to keeping Morro Bay a working harbor. He said Mr. DeGarimore instituted a pro- cess to use salt water in his business 8 months ago to conserve water. Mayor Sheetz closed the hearing to the public. Councilmember Odell questioned whether approval could be condi- tioned on retaining the commercial fishing use as proposed. He said the City is responsible to protect commercial fishing on lease sites and he would like assurances the use will stay the same. Ms. Skousen stated Council could condition the CUP and require an amendment to the lease stipulating the uses not be changed so long as the building is in existence. Mayor Sheetz stated 2 other projects on the Embarcadero have requested additional height limitations and she voted against them because she did not believe the additional height was neces- sary to the project; however, she views this project differently. The Coastal Commission identifies the fishing industry as the number one priority; this project improves existing facilities and adds to keeping Morro Bay a working harbor. In this case, she supports the height exception. She questioned if there is enough lease area to dock boats alongside the wharf without chan- nel interference? Mr. Davis stated he believes there is. Councilmember Lemons stated he is in favor of the concept plan. He suggested perhaps the ordinance restricting heights to 17 feet needs to be changed for certain uses. Mr. Farrel explained the 17 feet height limit is the standard for buildings on the west side of the Embarcadero. The area, however, is covered by a Planning Development (PD) overlay which allows standards to be adjusted by the Planning Commission and City Council if it would result in a superior project. MOTION: Councilmember Odell moved for the adoption of Resolu- tion No. 59-89 with an additional Condition No. 26, "The use of structures over the lease sites shall not be inconsistent with those commercial fishing related uses permitted by the terms of Tidelands Leases No. 102, 102W, 105.2, and 105.1W.11; and, the parking calcu- lations shall include any additional on -site parking that may be required to be calculated prior to the pre- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 22, 1989 PAGE 15 cise plan approval based on the standards in the Zoning Ordinance. The motion was seconded by Mayor Sheetz and unanimously carried by roll call vote. (5-0) Mr. Davis stated the Harbor Advisory Board (HAB) reviewed corre- spondence from Civic Action League regarding the detrimental effects of jet skis on Morro Bay Harbor. The Harbor Advisory Board initially recommended the 5 MPH speed limit be strictly enforced from Target Rock east into the bay for any power driven vessel; however, the Harbor Patrol Officers were concerned about the recommendation because of safety issues, enforcement prob- lems, and loss of officer discretion. Upon consideration of the Harbor Patrol concerns, the HAB revised their recommendation to recommend the speed limits be strictly enforced for any power driven vessel, with the exception of the Cal Poly Crew Team, at 15 MPH from Target Rock to the harbor entrance, and 5 MPH from Target Rock eastward through the balance of the bay. The HAB was concerned the vessels need the 15 MPH to check engine operation before leaving the protection of the inner harbor. The Harbor Patrol believes allowing 15 MPH speeds anywhere in the inner harbor will create problems, and request if they are to enforce the speed limit, it be maintained at 5 MPH from the breakwater into the bay. Staff agrees with this recommendation and additionally recommends the Harbor Patrol begin more strict enforcement of the speed limit inside of the breakwater. Mayor Sheetz opened the hearing to the public. Bruce Risley, President of Civic Action League (CAL), stated they support the staff recommendation. Bill Buckavich, 1060 Monterey and President of the Central Coast Jet Skiers, responded to the various allegations by CAL. Tom Neffer, 584 Napa and on the Conservation Committee of the Sierra Club, stated the Sierra Club supports CAL's position and staff position that the speed limit remain at 5 MPH. They object to the use of jet skis around the bay area. Ed Ewing, 238 Pacific, stated he has not had a problem or seen a problem with jet skiers in the bay. He has, however, seen prob- lems with wind surfers going 30 or 40 knots in the bay. Julianne Wilson, 353 Travis, spoke in favor of jet skiing; all jet skiers should not be responsible for a few who may be harass- ing wildlife. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 22, 1989 PAGE 16 Others speaking on behalf of jet skiers were Gary Holstock, 500 Atascadero Road; and Chris Robertson, 2985 Clark Valley Road, Los Osos. Mayor Sheetz closed the hearing to the public and returned the matter to Council. Councilmember Odell stated he has a number of friends who surf, and the fumes from the jet skis are a problem to the surfers. He said there is a difference between fishing vessels coming in and out of the harbor and jet skis using the harbor; jet skis stay in the harbor area. He believes those who are able to use the wind and the sea without the use of petroleum are doing a favor for people. Mayor Sheetz stated she favored the staff recommendation; she also does not believe in allowing one group to use the bay and not another. Councilmember Lemons asked how enforcing the 5 MPH speed limit will affect fishing vessels who need to speed up to blow out their engines before leaving the harbor? Mr. Davis stated it has been the policy to allow people to exceed the speed limit for this purpose. Councilmember Lemons stated this puts the Harbor Patrol in the position of selective enforcement. Mr. Napper stated the 5 MPH speed limit has worked well in the past with the Harbor Patrol Officers exercising good judgment in enforcement; the basic speed law, "no faster than is safe", would seem to apply here. MOTION: Councilmember Odell moved to retain the existing 5 MPH speed limit in the Harbor to the breakwater only, and to allow jet skiing to continue within the Harbor. The motion was seconded by Councilmember Wuriu. Councilmember Wuriu believed it important the Council not raise the speed limit. SUBSTITUTE Councilmember Lemons offered a substitute motion to MOTION: retain the existing speed limit in the Harbor, allow jet skiing to continue within the Harbor, and there shall be no discrimination in enforcing the speed limit. The substitute motion was seconded by Mayor Sheetz. Councilmember Odell requested staff return with an Ordinance to eliminate City enforcement of the speed limit outside the breakwater. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 22, 1989 PAGE 17 The substitute motion was unanimously carried by roll call vote. (5-0) MOTION: Councilmember Wuriu moved Council allocate $1,600 from the FY 88-89 Harbor Fund Contingency for the purchase, placement, and service of two (2) trash receptacles at the entrance to the North T-Pier. The motion was sec- onded by Councilmember Lemons and unanimously carried. (5-0) The item was previously continued to June 12, 1989 at the request of the applicant. E. CLOSED SESSION None • • �Luw k MOTION: Councilmember Lemons moved the meeting adjourn to Closed Session on Thursday, May 25, 1989 at 4:00 p.m. in the City Hall Conference Room, 595 Harbor Street, Morro Bay. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mayor Sheetz stated the Council is adjourning to Closed Session in accordance with Government Code Section 54956.9(a), pending litigation, in the matter of Keyoto-Natalie vs. City of Morro D-4y - The meeting adjourned at 11:07 p.m. Recorded by: ARDITH DAVIS City Clerk 0 4 NOT = C E O F S P E C= AL MEETING NOTICE IS HEREBY GIVEN that a Special Meeting of the Morro Bay City Council is hereby called to be held on Wednesday, May 17, 1989 at 5:15 p.m. in the Morro Bay City Hall Conference Room, 595 Harbor Street, Morro Bay, CA. Said Special Meeting shall be for the purpose of holding a Closed Session to consider pending litigation in accordance with Government Code Section 54956.9(a), Keyoto Natalie vs. City of Morro Bay. DATED: May 15, 1989 City of Morro Bay, Cali 0 MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - MAY 17, 1989 CITY HALL CONFERENCE ROOM - 5:15 P.M. Mayor Sheetz called the meeting to order at 5:18 p.m. PRESENT: Rose Marie Sheetz Mayor John Baker Councilmember John Lemons Councilmember Jeff Odell Councilmember Tom Wuriu Councilmember ABSENT: STAFF: None None Gary Napper Judy Skousen Bill Farrel Nick Nichols City Administrator City Attorney Community Develop. Dir. Public Works Dir. It was noted the Special Meeting was called for the purpose of holding a Closed Session regarding Keyoto Natalie vs. City of Morro Bay. Dr. Skousen informed the Council an item involving potential litigation arose after the agenda was posted, and should therefore be added to the agenda for Closed Session. This procedure is allowed in accordance with Government Code Section 54954.2(2), the need to take action arose subsequent to the agenda being posted. MOTION: Councilmember Lemons moved Council add to the Closed Session agenda a matter of potential litigation that arose after the agenda was set. The motion was sec- onded by Councilmember Baker and unanimously carried. (5-0) MOTION: Councilmember Wuriu moved Council adjourn to Closed Session. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) Mayor Sheetz announce Council is adjourning to Closed Session to consider pending litigation in accordance with Government Code Section 54956.9(a), and potential litigation in accordance with Government Code Section 54956.9(b)(1). Council adjourned to Closed Session at 5:20 p.m. and returned to regular session at 7:35 p.m. 0 MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - MAY 17, 1989 PAGE TWO MOTION: Councilmember Odell moved the meeting be adjourned. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) The meeting adjourned at 7:35 p.m. Recorded GARY NAPPER - Deputy City C 9 4 i City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING - MAY 8, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE 1. PROCLAMATION OF NATIONAL NURSING HOME WEEK TO SEASHELL 2. RESOLUTION OF COMMENDATION TO KATHLYN DAVIS, CUESTA COLLEGE GRADUATE PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section D) may do so by standing. When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments should normally be limited to three minutes. DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the fol- lowing actions are approved without discussion. A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF APRIL 24, 1989 A-2 RESOLUTION NO. 48-89 AWARDING MOWING CONTRACT FOR 1989 WEED ABATEMENT PROGRAM TO JACK R. BRIDWELL OF ATASCADERO A-3 PROCLAMATION DECLARING MAY 15-19, 1989 AS "NATIONAL POLICE WEEK", AND MAY 15, 1989 AS "POLICE OFFICER MEMORIAL DAY" A-4 NOTICE OF COMPLETION OF PROJECT NO. PW 88-04; POLICE STATION REMODEL- ING PROJECT PHASE II A-5 AWARD OF CONTRACT FOR PURCHASE OF 2 DIAL -A -RIDE BUSES A-6 RELEASE OF RECOMMENDED CITY BUDGET FOR FISCAL YEAR 89-90 A-7 PROCLAMATION DECLARING MAY 14-20, 1989 AS "NATIONAL NURSING HOME WEEK" 1 A-8 APPROVAL OF FINAL TRACT MAP NO. 03-87 (SOUTH STREET/MORRO AVENUE CONDOMINIUM CONVERSION) PULLED A-9 RESOLUTION NO. 52-89 COMMENDING KATHLYN DAVIS, GRADUATE OF CUESTA COLLEGE AT AGE 75 A-10 AUTHORIZATION TO ADVERTISE WATER ADVISORY BOARD VACANCY (CARTWRIGHT) A-11 NOTICE OF COMPLETION, MORRO BAY COMMUNITY CENTER PROJECT A-12 RESOLUTION NO. 51-89 AWARDING CONTRACT FOR BID NO. PW 88-09 FOR PURCHASE OF FLAT-BED DUMP TRUCK TO PALLA EQUIPMENT, INC. A-13 PROCLAMATION DECLARING MAY 17, 1989 AS "TRANSIT APPRECIATION DAY" A-14 AWARD OF CONTRACT FOR BID NO. RP 88-01 FOR PURCHASE OF '-TON SERVICE VEHICLE FOR PARKS DIVISION A-15 AUTHORIZATION OF CHANGE IN DELEGATES TO SAN LUIS OBISPO COORDINATING COUNCIL A-16 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (BRINGLE) B. UNFINISHED BUSINESS NONE C. NEW BUSINESS C-1 RESOLUTION NO. 49-89 ESTABLISHING CITY PROGRAM FOR RESTORATION OF POLICE SURPLUS BICYCLES BY COUNTY SHERIFF'S HONOR FARM FOR CHARITABLE DONATION OF RESTORED BICYCLES TO CHILDREN C-2 POSITION ON SB 103 (ROBBINS), INSURANCE REFORM IN CALIFORNIA C-3 POSITION ON SB 1221 (HART), INCREASE IN REDEMPTION VALUES FOR CERTAIN BEVERAGE CONTAINERS; RESOLUTION NO. 54-89 SUPPORTING LEGISLATION C-4 COUNCILMEMBER REQUEST TO DISCUSS A "RETROFIT II" WATER CONSERVATION PROGRAM D. PUBLIC HEARINGS, REPORTS & APPEARANCES D-1 CONTINUED APPEAL HEARING ON PLANNING COMMISSION DENIAL (RESOLUTION NO. 92-88) TO RE -ISSUE WATER EQUIVALENCIES TO THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION (FSLIC) FOR COMPLETION OF BAYSHORE VILLAGE CONDOMINIUM PROJECT (FEDERAL ASSET DISPOSITION ASSOCIATION, AGENT; 188 BAYSHORE DRIVE, 48 UNITS) CONTINUE HEARING TO NEXT MEETING D-2 CONTINUED PUBLIC HEARING ON RESOLUTION NO. 43-89 APPROVING AMENDMENTS TO LOCAL COASTAL PROGRAM LAND USE PLAN (LCP/GPA/ZOA 02-86A) ADOPTING A NORTH MAIN STREET SPECIFIC PLAN, AND INTRODUCTION/FIRST READING OF COMPANION ORDINANCE NO. 350 AMENDING CHAPTER 17 OF THE MORRO BAY MUNICIPAL CODE (ZONING ORDINANCE) 2 D-3 PUBLIC HEARING ON APPEAL TO PLANNING COMMISSION APPROVAL OF CONDITIONAL USE PERMIT 06-89 ALLOWING OUTDOOR SALES AND DISPLAYS OF RECREATIONAL VEHICLE PARTS AND ACCESSORIES AT 1568 AND 1598 NORTH MAIN STREET (DOHERTY, APPELLANT; BIRD, APPLICANT) D-4 ORDINANCE NO. 352 AMENDING THE MUNICIPAL CODE TO REQUIRE THE INSTALLA- TION OF ULTRA -LOW FLUSH AND FLOW FIXTURES IN ALL NEW CONSTRUCTION AND WHEN REPLACING PLUMBING FIXTURES IN EXISTING STRUCTURES - INTRODUC- TION/FIRST READING D-5 RESOLUTION NO. 53-89 AMENDING BACKGROUND DATA IN THE HOUSING ELEMENT OF THE GENERAL PLAN; AND RESOLUTION ENACTING MINOR AMENDMENTS TO THE GENERAL PLAN TEXT AND REVISING THE FORMAT OF THE GENERAL PLAN FOR CONSOLIDATION OF THE GENERAL PLAN'S ELEMENTS D-6 PARKING MANAGEMENT PLAN PROGRESS REPORT AND AUTHORIZATION OF INTERIM USE OF CERTAIN CITY PROPERTIES AS TEMPORARY OVERFLOW PARKING AREAS F. NONE COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. 3 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 8, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. 11W_"fflWC-W PRESENT: Rose Marie Sheetz Mayor John Baker Councilmember John Lemons Councilmember Jeff Odell Councilmember Tom Wuriu Councilmember ABSENT: None STAFF: Gary Napper City Administrator Judy Skousen City Attorney Ardith Davis City Clerk Bill Farrel Community Develop. Dir. Dave Howell Chief of Police Mayor Sheetz gave the invocation and led the Pledge of Allegiance. 1. PROCLAMATION OF NATIONAL NURSING HOME WEEK TO SEASHELL COMMUNITIES Mr. Napper read the Proclamation, and Mayor Sheetz presented an endorsed copy of it to Georgie Hageman of Seashell Communities. 2. RESOLUTION OF COMMENDATION TO KATHLYN DAVIS. CUESTA COLLEGE GRADUATE Mayor Sheetz stated it is very fitting to be honoring Ms. Davis at the young age of 75 during Older Americans Month. Mr. Napper read the Resolution; Mayor Sheetz called for a standing ovation for Ms. Davis for her accomplishment and presented her with an endorsed copy of the Resolution. PUBLIC COMMENT 1. Paul Enns, Cayucos resident and a member of one of the water boards in Cayucos, stated Cayucos is very interested in the City's Coastal Streams Diversion Plan, and hope's to share in it in the amount of 525 acre feet per year. He complimented the City for its progress so far on this project. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 8, 1989 PAGE 2 2. Howard Gaines stated Councilmembers should publish their conflict of interest statements so the pubic is aware of their conflicts; he said members of the Council are or have been affiliated with the Chamber of Commerce and said they should not be voting on the Community Promotions budget. Mayor Sheetz directed the City Attorney to review the matter. 3. Ed Ewing, 238 Pacific, objected to any 1.5 gallon toi- let requirement being imposed on the next 13 people in line for building permits. He urged the City to issue the retrofit pack- ets now to those people. 4. Georgie Hageman, Seashell Communities, invited people to visit the Pacific Care Center in Morro Bay to view their facility and partake in some of the activities they are having to celebrate Nursing Home Week. `�7���`.7s�1E�`•F'li_iI9111����;I�L, • • _ 1l�w.L9 1. Councilmember Lemons stated an item arose after the publication of the agenda which he would like Council to consider this evening; Paul Donnelly, former member of the Street Advisory Committee and more recently a former Councilmember, has applied for the vacancy on the Street Advisory Committee. He believes Mr. Donnelly is very qualified for this position and would like Council to consider appointing him at this time. Mr. Donnelly's application for the position was not known to the Council until after the agenda was published. MOTION: Councilmember Baker moved this item be added to the agenda as an item that arose after the publication of the Council agenda. The motion was seconded by Coun- cilmember Wuriu and unanimously carried. (5-0) MOTION: Councilmember Lemons nominated Paul Donnelly for the vacancy on the Street Advisory Committee; Councilmember Baker seconded the nomination and it was unanimously carried. (5-0) COUNCILA-1 CITY MINUTES OF THE MEETING OF AP24, 1989 RIL Mr. Napper recommended Council approve the minutes as submitted. A-2 RESOLUTION NO. 48-89 AWARDING MOWING CONTRACT FOR 1989 WEED ABATEMENT PROGRAM TO JACK R. BRIDWELL OF ATASCADERO Mr. Napper recommended Council adopt Resolution No. 48-89. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 8, 1989 PAGE 3 A-3 PROCLAMATION DECLARING MAY 15-19, 1989 AS "NATIONAL POLICE WEEK". AND MAY 15. 1989 AS "POLICE OFFICER MEMORIAL DAY" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-4 NOTICE OF COMPLETION OF PROJECT NO. PW 88-04; POLICE STATION REMODELING PROJECT PHASE II Mr. Napper recommended Council accept the project as complete and authorize the recordation of the Notice of Completion; and allo- cate $1,715.00 from the FY88-89 General Fund Contingency to the project account. A-5 AWARD OF CONTRACT FOR PURCHASE OF 2 DIAL -A -RIDE BUSES Mr. Napper recommended Council adopt Resolution No. 50-89. A-6 RELEASE OF RECOMMENDED CITY BUDGET FOR FISCAL YEAR 89-90 Mr. Napper recommended Council receive and accept the Administra- tor's Recommended City Budget for FY89-90, and set the proposed budget calendar of hearings and workshops for review of the FY89-90 Budget. A-7 PROCLAMATION DECLARING MAY 14-20, 1989 AS "NATIONAL NURSING HOME WEEK" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-8 APPROVAL OF FINAL TRACT MAP NO. 03-87 (SOUTH STREET/MORRO AVENUE CONDOMINIUM CONVERSION) PULLED A-9 RESOLUTION NO, 52-89 COMMENDING KATHLYN DAVIS, GRADUATE OF CUESTA COLLEGE AT AGE 75 Mr. Napper recommended Council adopt Resolution No. 52-89. A-10 AUTHORIZATION TO ADVERTISE WATER ADVISORY BOARD VACANCY (CARTWRIGHT) Mr. Napper recommended Council authorize staff to advertise the vacancy on the Water Advisory Board. A-11 NOTICE OF COMPLETION. MORRO BAY COMMUNITY CENTER PROJECT Mr. Napper recommended Council accept the completion of the Morro Bay Community Center Project, and authorize the recordation of the Notice of Completion. i 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 8, 1989 PAGE 4 A-12 RESOLUTION NO 51-89 AWARDING CONTRACT FOR BID NO PW 88-09 FOR PURCHASE OF FLAT-BED DUMP TRUCK TO PALLA EQUIPMENT. INC. Mr. Napper recommended Council adopt Resolution No. 51-89. A-13 PROCLAMATION DECLARING MAY 17, 1989 AS "TRANSIT APPRECIATION DAY" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-14 AWARD OF CONTRACT FOR BID NO. RP 88-01 FOR PURCHASE OF 's-TON SERVICE VEHICLE FOR PARKS DIVISION Mr. Napper recommended Council award the contract to Palla Equip- ment in the amount of $10,681.30, and allocate $500 from the FY88-89 General Fund Contingency to the project account for com- pletion of the vehicle acquisition. AUTHORIZATION OF DELEGATES TO SAN LUIS OBISPO COORDINATING COUNCIL Mr. Napper recommended Council designate Mayor Sheetz as the City's delegate to the San Luis Obispo Area Coordinating Council, and Councilmember Odell as the alternate delegate; and, that Mayor Sheetz be appointed as the chairperson to the City's Trans- portation Committee. A-16 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (BRINGLE) Mr. Napper recommended Council deny the claim, and authorize the City Clerk to sign and mail the rejection notice. Councilmember Baker requested Items A-4, A-6, and A-14 be pulled from the Consent Calendar and considered separately. MOTION: Councilmember Wuriu moved for approval of the Consent Calendar with the exception of Items A-4, A-6, and A-14. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) IM US MOF-Ral Councilmember Baker questioned the difference between the project budget and the final cost. Mr. Napper stated the additional monies were for Change Orders typically occurring when any build- ing is being constructed. Chief Howell stated additional elec- trical work was required after the contractor was able to get into the walls of the building, along with other miscellaneous items not known at the time of budget or contract award. w 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 8, 1989 PAGE 5 A-6 RELEASE OF RECOMMEND CITY BUDGET FOR FIS Councilmember Baker wanted to make sure the action tonight on the budget will not set it in concrete. Mr. Napper stated Council is only being asked to receive the proposed Budget for review and set the workshop meeting dates. A-14 AWARD OF CONTRACT FOR BID NO, RP 88-01 FOR PURCHASE OF 4-TON SERVICE VEHICLE FOR PARKS DIVISION Councilmember Baker was concerned there was only one bid for this vehicle, and that bid seems rather high. Mr. Napper explained the service vehicle is a heavy duty model to hopefully last as long as the previous one did; 19 years. The additional cost is to transfer the utility service bed from the current vehicle to the new vehicle. MOTION: Councilmember Baker moved for the approval of Items A-4, A-6, and A-14. The motion was seconded by Coun- cilmember Wuriu and unanimously carried. (5-0) NONE C. NEW BUSINESS C-1 RESOLUTION NO, 49-89 ESTABLISHING CITY PROGRAM FOR RESTORA- TION OF POLICE SURPLUS BICYCLES BY COUNTY SHERIFF'S HONOR FARM FOR CHARITABLE DONATION OF RESTORED BICYCLES TO CHILDREN Chief Howell explained the County Sheriff has developed a program in which the inmates of the County Jail Honor Farm restore unclaimed bicycles recovered by the Sheriff's Office and dis- tribute the bicycles to needy children. The Morro Bay Police Department would like to participate in this program; the Honor Farm would restore the bicycles and they would be returned to Morro Bay for distribution within our community. In the past bicycles have been auctioned annually; however, the auctioneering company no longer wishes to handle these small items, and storage is becoming a problem. The Police Department presently has approximately 200 bicycles. Mayor Sheetz asked if there is criteria established as to who the restored bicycles go to? Chief Howell stated the Department receives information from officers' contact in the field, Child Protective Services, and the Salvation Army regarding needy families. MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 49-89. The motion was seconded by Councilmem- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 8, 1989 PAGE 6 ber Baker and unanimously carried by roll call vote. (5-0) C-2 POSITION ON SB 103 (ROBBINS). INSURANCE-3EFORM__Ii-CALIFO Mayor Sheetz stated the Supreme Court has ruled Proposition 103 is valid and is now a matter for implementation; Council action at this point would be redundant to support a bill that may no longer be necessary. MOTION: Mayor Sheetz moved the item be tabled. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) C-3 POSITION ON SB 1221 (HART). INCREASE IN REDEMPTION VALUES FOR CERTAIN BEVERAGE CONTAINERS: RESOLUTION NO. 54-89 SUPPORTING LEGISLATION Mr. Napper stated Senator Hart's bill will increase the redemp- tion values to 50 on certain beverage containers. This will hopefully encourage a higher level of recycling, result in less littering, and extend the lifecycle of our landfills. California has a 50% rate of recycling containers, while other states with higher redemption values have an 80% return. The City's Refuse Franchise Board unanimously recommends Council support this legislation. Councilmember Baker questioned the capacity of merchants to store containers. Mr. Napper stated current law requires recycling depositories; one is located at Young's Giant Food Market, and Williams Brothers Market also accepts returned containers. Councilmember Lemons was concerned people on a limited income would not be able to afford the increased deposit, and may not have a car to take their containers to a recycling center for the redemption value. Councilmember Wuriu stated increased rates in some states did not work well; there have been problems. Mayor Sheetz stated she supports the legislation; Councilmember Odell agreed. MOTION: Councilmember Odell moved for adoption of Resolution No. 54-89. The motion was seconded by Councilmember Lemons and unanimously carried by roll call vote. (5-0) C-4 COUNCILMEMBER REQUEST TO DISCUSS A "RETROFIT II" WATER CON- SERVATION PROGRAM This item was pulled by Councilmember Odell. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 8, 1989 PAGE 7 D. PUBLIC HEARINGS. REPORTS & APPEARANCES WEN • • • • •IN• !• WD-0-3 ta"W"NURKly a WL44 4 Wei Mayor Sheetz stated the City received a request from the attor- neys for FSLIC to continue this matter to the next meeting. MOTION: Councilmember Lemons moved this item be continued to May 22, 1989. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) IT 11010*70 Mr. Napper stated Council is in receipt of a revised Resolution No. 43-89 which contains minor corrections. He also pointed out Council is only considering the modified language in the Exhibit to Ordinance No. 350. The lined -out portions will be deleted, and the underlined sections will be added; the remaining language is current and included for context reference only. Mr. Farrel noted the numerous hearings Council has held on the North Main Street Specific Plan, and stated all comments sug- gested by Council have been included. He recommended Council adopt the Resolution approving the amendments to the Local Coastal Program Land Use Plan, and approve the first reading of Ordinance No. 350 amending the Zoning Ordinance. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. MOTION: Councilmember Wuriu moved for the adoption of Resolu- tion No. 43-89. The motion was seconded by Councilmem- ber Baker and unanimously carried roll call vote. (5-0) MOTION: Councilmember Lemons moved Ordinance No. 350 be read by title and ,number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Napper read Ordinance No. 350 by title and number only. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 8, 1989 PAGE 8 MOTION: Councilmember Lemons moved for approval of the first reading of Ordinance No. 350. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) Mr. Farrel stated Ms. Doherty filed a timely appeal to the Plan- ning Commission's approval of a Conditional Use Permit allowing outdoor sales and displays of recreational vehicle parts and ac- cessories at 1568 Main Street. While Ms. Doherty does not have a specific objection to this CUP, she notes Mr. Bird has not com- plied with previous use permits issued by the City and should be required to complete the conditions before being allowed this permit. Mr. Farrel reviewed the several use permits received by Mr. Bird and areas where non-compliance exists. To resolve the situation, staff recommends Council deny the appeal and adopt Resolution No. 55-89 which includes Special Condition No. 8 requiring Mr. Bird to conform with previously issued use permits and secure addi- tional use permits for existing operations before he is allowed to implement the outdoor sales and displays use permit he is cur- rently requesting. Councilmember Baker stated Mr. Bird's operation is the most attractive one on Main Street. He believed the requirement for a solid fence will detract from the site and business sales, and suggested the requirement be waived. Mr. Farrel stated Mr. Bird should make a request before the Planning Commission for waiving the fence requirement under the CUP issued in 1985, if he so desires. Councilmembers questioned the solid fence requirement for outdoor sales. Mr. Farrel explained the area is zoned M-1, Light Indus- trial, and it is logical for that type of use to have the fence requirement. Mr. Bird happens to have a retail business in this zone, but the fence is still a requirement. Mayor Sheetz opened the hearing to the public for comments. Nancy Doherty, appellant, said Mr. Bird stated at an appeal hear- ing several weeks ago he wants the same rules for everyone, and yet he is violating those rules himself. She said his placement of trailers blocking the public view to her property is strictly punitive. She enumerated the violations by Mr. Bird, and requested Council require compliance before issuing another CUP. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 8, 1989 PAGE 9 Jim Doherty stated he spent $17,000 to install a fence as required by the City at his yard on Main Street, and Mr. Bird should be made to comply as well. He should not be allowed to break the law because Council thinks his property is "pretty". Mr. Doherty threatened if Council gives Mr. Bird this permit, he will never come to the City again to get any permit; he will just do it anyway, and go to court to settle the matter with the City. Mayor Sheetz stated the matter of the solid fence is not an action before Council this evening; Council's action should be whether to uphold or deny the appeal. If Council denies the appeal, the Resolution has a provision Mr. Bird must comply with previous use permits and obtain use permits for existing opera- tions. If Mr. Bird objects to conditions in those permits, he must request modifications through the Planning Commission. Councilmember Lemons noted the two trailers have been moved back onto Mr. Bird's property. Councilmember Wuriu expressed the hope the two battling busi- nesses (Doherty/Bird) would try to get together to resolve their problems. Councilmember Baker commented it was incomprehensible to him that Mr. Doherty should have been required to put up a solid fence; same thing for Mr. Bird. Such fencing is not neces- sary in Industrial zones. MOTION: Councilmember Wuriu moved Council uphold the Planning Commission's decision, deny the appeal, and adopt Reso- lution No. 55-89. The motion was seconded by Coun- cilmember Baker and unanimously carried by roll call vote. (5-0) JV X010DE04RUW11• M I R FORMS; •••MARrirawte- • - Mr. Napper stated Council unanimously directed staff to prepare an ordinance requiring Ik gallon flush toilets in all new con- struction. He reviewed the various low flow/flush fixtures available and how they have been incorporated in the ordinance; the ordinance extends the requirement to existing homes where the plumbing is being replaced. He noted provisions have been made for exceptions where plumbing in existing homes will not handle the low flow fixtures. Councilmember Odell asked how the ordinance will affect the retrofit program? Mr. Napper stated it will by its very nature extend the program, because it will take less homes to retrofit if this ordinance is enacted. Councilmember Odell asked if 3k gallon toilets can now be replaced by 1'k gallon toilets to obtain retrofit water for new development? Mr. Napper said conceivably MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 8, 1989 PAGE 10 yes; if retrofitting saves water, and it does, then this type of retrofit would be allowed. Councilmember Baker stated he understands there is only one model of the lh gallon toilet available and it is white in color. He is concerned people who are building homes with colored appli- ances in their bathrooms will be unhappy with just a white toi- let. He suggested adoption of the ordinance be postponed for 2 weeks to determine the availability of the fixtures. Mayor Sheetz opened the hearing to the public for comments. Charles Palmer, 485 Estero, stated some people who are forced to install these toilets and can afford it will simply replace them with regular toilets after their house has been inspected. Cus- tomers need another incentive to install and keep low -flow fix- tures in their home, such as a progressive water rate structure. Ed Ewing did not believe the low -flush toilets should apply to the 13 building permits Council approved at their last meeting. He also suggested Council allow higher water -use toilets in exchange for less landscaping water use in new homes. Howard Gaines stated the City could be creating a hardship if the fixtures break and people are not able to readily obtain them. Dale Reddell, 680 Sequoia Court, stated there is only one 1� gal- lon toilet in the whole City for sale; he also could not find any wholesalers that have them in stock. He said if Council enacts this ordinance now, builders will be unable to install toilets; the 1k gallon toilets are also ugly. Mayor Sheetz closed the hearing to the public. Mayor Sheetz said there were too many variables as to whether or not the low -flush toilets save water; she wants people to have a choice and she was not in favor of the ordinance. Councilmember Wuriu believed one day 1' gallon toilets will be the standard. Councilmember Odell suggested other agencies be contacted to determine supply problems. Councilmember Lemons stated he is convinced within a short period of time the lk gallon toilets will be mandatory statewide; he suggested the requirement for low -flush toilets be set at a future date in order to give builders time to inform suppliers of the need. The other requirements for low -flow fixtures can be required immediately. He noted the City did not wait for the State to mandate 3k gallon toilets when Morro Bay did it a number of years ago. MOTION: Councilmember Lemons moved the Ordinance be returned to staff for revisions on effective dates as suggested. 9 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 8, 1989 PAGE 11 The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) D-5 RESOLUTION NO 53-89 AMENDING BACKGROUND DATA IN THE HOUSING ELEMENT OF THE GENERAL PLAN• AND RESOLUTION ENACTING MINOR AMENDMENTS TO THE GENERAL PLAN TEXT AND REVISING THE FORMAT OF THE GENERAL PLAN FOR CONSOLIDATION OF THE GENERAL PLAN'S ELEMENTS Mr. Farrel stated the Planning Department has been preparing revisions to the General Plan and its Elements in order to shorten the length of the Plan and make it easier to use. He stated the Planning Commission has not yet concluded their review of the consolidation, and requested Council continue the item to the June 12th meeting. There are, however, some changes needed in the Housing Element to reflect current housing conditions re- searched by Peoples' Self -Help Housing Corporation. The changes are necessary at this time to conform with information in the ap- plication to the State Department of Housing and Community Devel- opment for the City's Community Development Block Grant request. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the matter was returned to Council. MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 53-89. The motion was seconded by Councilmem- ber Wuriu and unanimously carried by roll call vote. (5-0) MOTION: Councilmember Lemons moved the hearing be continued to June 12, 1989. The motion was seconded by Mayor Sheetz and unanimously carried by roll call vote. (5-0) D-6 PAR —KING MANAGEMENT PLAN PROGRESS REPORT AND AUTHORIZATION OF INTERIM USE OF CERTAIN CITY PROPERTIES AS TEMPORARY OVERFLOW PARKINGAREAS Mr. Farrel reported on the Community Development Department's progress towards development of a plan to provide for long range parking facilities in the downtown and waterfront areas. He reviewed Council's directions in this matter, and staff's comple- tion of an inventory of City -owned property within the plan area that could be used for parking. Future solutions could include parking along the Embarcadero from Beach Street to Coleman Drive, the Front Street Parking Lot, a possible multi -story parking lot built into the bluff, and development of the Morro Rock area. Mr. Farrel stated he plans to employ several student interns dur- ing the summer to survey a parking needs inventory. He noted the Coastal Commission conditioned their approval of the Waterman Embarcadero project to provide full increment parking prior to MINUTES - MORRO BA•CITY COUNCIL • REGULAR MEETING - MAY 8, 1989 PAGE 12 occupancy approval, and will probably use this requirement when approving future projects of this nature. Mayor Sheetz opened the hearing to the public for comments. Howard Gaines stated the $4,000 figure per parking space is too low; Council should not make concessions to the developer at the expense of public funds and taxpayer subsidy. Mayor Sheetz returned the item to Council. Mayor Sheetz stated the developer will pay the difference through a parking assessment district between the actual cost of the parking and the $4,000 per space fee; there has been no determi- nation on actual cost yet. No action was taken; informational report only. ADJOURNMENT MOTION: Councilmember Odell moved the meeting be adjourned. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) The meeting adjourned at 8:19 p.m. Recorded by: � C ARDITH DAVIS City Clerk 0. Ahc,/ ate, /9I'9 City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay Is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING - APRIL 24, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE 1. MOST VALUABLE EMPLOYEE, JANUARY-MARCH 1989: HARBOR PATROL OFFICER JIM KROLL 2. PRESENTATION OF PROCLAMATION DECLARING MAY 1988 AS "OLDER AMERICANS MONTH" TO MORRO BAY SENIOR CITIZENS, INC. 3. PRESENTATION OF PROCLAMATION DECLARING MAY 1988 "BETTER HEARING AND SPEECH MONTH" TO MORRO BAY QUOTA CLUB PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section D) may do so by standing. When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments should normally be limited to three minutes. DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the fol- lowing actions are approved without discussion. A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF APRIL 10, 1989 A-2 STATEMENT OF INVESTMENTS - MARCH 1989 A-3 EXPENDITURE REPORT - MARCH 1989 A-4 ACCEPTANCE OF RESIGNATION FROM RECREATION AND PARKS COMMISSION (CAIN) AND AUTHORIZATION TO ADVERTISE VACANCY A-5 RESOLUTION NO. 41-89 AUTHORIZING PARTICIPATION IN STATE DISABILITY INSURANCE PROGRAM FOR CONFIDENTIAL EMPLOYEES 1 A-6 RESOLUTION NO. 44-89 AMENDING WATER OPERATING PROCEDURES CONCERNING WATER EQUIVALENCIES WHEN DEMOLISHING AND RE -BUILDING SINGLE FAMILY RESIDENCES A-7 PROCLAMATION DECLARING MAY 1989 AS "OLDER AMERICANS MONTH IN MORRO BAY" A-8 RESOLUTION NO. 42-89 AWARDING CONTRACT FOR PROJECT PW 88-07, OFFSITE IMPROVEMENTS TO PEOPLE'S SELF-HELP HOUSING CORP. SENIOR/ELDERLY HOUS- ING PROJECT (ELENA STREET) A-9 RESOLUTION NO. 46-89 ACCEPTING OFFER OF DEDICATION OF ADDITION TO KENNEDY WAY RIGHT-OF-WAY; PARCEL MAP MB 87-142 A-10 PROCLAMATION DECLARING MAY 1989 AS "BETTER HEARING AND SPEECH MONTH" A-11 SET HEARING DATE (MAY 8TH) FOR APPEAL TO PLANNING COMMISSION APPROVAL OF CONDITIONAL USE PERMIT 06-89 ALLOWING OUTDOOR SALES AND DISPLAYS OF RECREATIONAL VEHICLE PARTS AND ACCESSORIES AT 1568 AND 1598 NORTH MAIN STREET (DOHERTY, APPELLANT; BIRD, APPLICANT) A-12 PROCLAMATION DECLARING THE WEEK OF MAY 1-7, 1989 AS "WATER AWARENESS WEEK" IzIQzID NONE . tmra 4 z PeRFWTFONV�Q�_. D-1 RESOLUTION NO. 47-89 AUTHORIZING CITY APPLICATION FOR 1989 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR A HOUSING REHABILITATION LOAN PROGRAM, PHASE II D-2 RESOLUTION NO. 43-89 APPROVING AMENDMENTS TO LOCAL COASTAL PROGRAM LAND USE PLAN (LCP/GPA/ZOA 01-86A) ADOPTING A NORTH MAIN STREET SPECIFIC PLAN, AND INTRODUCTION/FIRST READING OF COMPANION ORDINANCE NO. 350 AMENDING CHAPTER 17 OF THE MORRO BAY MUNICIPAL CODE ( ZONING ORDINANCE) CONTINUE HEARING TO O8 MAY 1989 COUNCIL MEETING D-3 CONSIDERATION OF CITY POSITION ON PROPOSED SAN LUIS OBISPO COUNTY WATER ETHIC D-4 CONTINUED APPEAL HEARING ON PLANNING COMMISSION DENIAL (RESOLUTION NO. 92-88) TO RE -ISSUE WATER EQUIVALENCIES TO THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION (FSLIC) FOR COMPLETION OF BAYSHORE VILLAGE CONDOMINIUM PROJECT (FEDERAL ASSET DISPOSITION ASSOCIATION, AGENT; 188 BAYSHORE DRIVE, 48 UNITS) 2 D-5 CONTINUED HEARING ON REQUEST BY MORRO BAY DEVELOPMENT COMPANY FOR CITY ABANDONMENT OF UNIMPROVED ROAD EASEMENT ON DEN-DULK PROPERTY (COLEMAN PARK/P.G.&E. AREA) AND RESOLUTION NO. 40-89 DENYING REQUEST D-6 RECONSIDERATION OF CITY'S 1989 WATER ALLOCATION PROGRAM TO AWARD BUILDING PERMITS, AND STATUS REPORT ON WATER BASIN LEVEL AND RAINFALL DATA D-7 PROPOSAL BY CIVIC ACTION LEAGUE OF MORRO BAY, INC. FOR MORRO BAY TO ENACT AN ORDINANCE TO PROHIBITSPECULATIVE BUILDING D-8 RESOLUTION NO. 45-89 OF INTENTION TO AMEND CONTRACT BETWEEN THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY OF MORRO BAY, AND FIRST READING/INTRODUCTION OF ORDINANCE NO. 351 AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF MORRO BAY AND PUBLIC EMPLOYEES RETIREMENT SYSTEM REGARDING SAFETY EMPLOYEES E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.9(A); PENDING LITIGATION, KEYOTO-NATALIE V. CITY OF MORRO BAY COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. 3 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 24, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. R�W PRESENT: Rose Marie Sheetz Mayor John Baker Councilmember John Lemons Councilmember Jeff Odell Councilmember Tom Wuriu Councilmember ABSENT: None STAFF: Gary Napper City Administrator Judy Skousen City Attorney Ardith Davis City Clerk Bill Farrel Community Develop. Dir. Forrest Henderson Asst. City Admin. Nick Nichols Public Works Dir. Horace Strong gave the invocation, and led the Pledge of Allegiance. 1. Mayor Sheetz presented the Most Valuable Employee Award for the January -March 1989 quarter to Harbor Patrol Officer Jim Kroll. 2. Mayor Sheetz read a Proclamation declaring May 1989 as "Better Hearing and Speech Month", and presented the Proclamation to Marlene Owens, President of the Morro Bay Quota Club. Ms. Owens listed some problems that lead to hearing impairment, and distributed literature regarding the Quota Club and these activities. 3. Mayor Sheetz read the Proclamation declaring May 1989 as "Older Americans Month", and presented the Proclamation to Jim Rodgers, President of the Morro Bay Senior Citizens, Inc. Mr. Rodgers invited everyone to the Community Center on May 7th from 1:30 p.m. to 5 p.m. for a free dance for all ages celebrating "Older Americans Month". 1. Charles Palmer, 485 Estero, encouraged Council to go from Phase II to Phase III of the water conservation measures. MINUTES - MORRO REGULAR MEETING PAGE 2 BAY CITY COUNCIL - APRIL 24, 1989 2. Mary Phillips, 2645 Ironwood, questioned whether the City could be sued concerning activities of Mayor Sheetz when she was a Councilmember, and also said the City needs mandatory restriction on building. 3. Joan Mihay, 785 Cabrillo, suggested the City of the City Council agenda packet in the Library so access to it on Saturdays. • ;_;_; _ • • mil• • ; • � v _ ill • _;S • � Mapper recommended Mapper recommended recommended the minutes submitted. submitted. Mr. Mapper recommended Council accept with regret the resignation of Renee Cain from the Recreation and Parks Commission, and authorize staff to advertise the unexpired term for citizen applications. recommended Resolution -- _ • _ _ • .� � • a_v _ ! _ :2��i�t;Zl•3�;7�1ifi[di�: • • �1i1 � _ recommended Y•Oi• - Resolution Mr. Mapper recommended Council authorize Proclamation. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 24, 1989 PAGE 3 A-8 RESOLUTION NO. 42-89 AWARDING CONTRACT FOR PROJECT PW 88-07, OFFSITE IMPROVEMENTS TO PEOPLE'S SELF-HELP HOUSING CORP. SENIOR/EL•DERLY HOUSING PROJECT (ELENA STREET) Mr. Napper recommended Council adopt Resolution No. 42-89 award- ing the contract to A.J. Diani Construction Co., Inc. in the amount of $56,484. A-9 RESOLUTION NO, 46-89 ACCEPTING OFFER OF DEDICATION OF ADDITION TO KENNEDY WAY RIGHT-OF-WAY: PARCEL MAP MB 87-142 Mr. Napper recommended Council adopt Resolution No. 46-89. A-10 PROCLAMATION DECLARING MAY 1989 AS "BETTER HEARING AND SPEECH MONTH" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-11 la:liit:1 �•] �K•] �f �) i+w t•] �C;�-filly �i ��0v I y�i�ZgL'�:� � ��]:!>) �(��1�Y 4 DUI•]-: NINE Mr. Napper recommended Council set May 8, 1989 as the hearing date, and direct staff to prepare and send the appropriate reports and hearing notices. A-12 PROCLAMATION DECLARING THE WEEK OF MAY 1-7. 1989 AS WATER AWARENESS WEEK Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. Councilmember Baker requested Item A-8 be pulled for separate discussion; and Councilmember Wuriu requested Item A-9 be pulled. MOTION: Councilmember Odell moved for approval of the Consent Calendar except for items A-8 and A-9. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Councilmember Odell stepped down from consideration on this item due to a possible conflict of interest. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 24, 1989 PAGE 4 Councilmember Baker asked if bidding regulations allowed the City to award a bid to the next to the lowest bidder if the bidder is local? Mr. Napper stated there is no provision for awarding a contract to other than the lowest responsible bidder. Ms. Skousen agreed adding the process is mandated by State code, and there are no provisions favoring a local bidder. Mr. Odell returned to his seat. PQ7 Councilmember Wuriu asked if the property involved in this item is City property? Mr. Nichols stated yes; the City is combining City parcels previously shown as individual pieces of property. MOTION: Councilmember Lemons moved for approval of Items A-8 and A-9. The motion was seconded by Councilmember Baker and carried with Councilmember Odell abstaining on Item A-8. B. UNFINISHED BUSINESS NONE C. NEW BUSINESS NONE D. PUBLIC HEARINGS, REPORTS & APPEARANCES D-1 RESOLUTION NO 47-89 AUTHORIZING CITY APPLICATION FOR 1989 COMMUNITY DEVELOPMENT BLOCK GRANT ( CDBG) FUNDS FOR A HOUSING REHABILITATION LOAN PROGRAM, PRASE II Councilmember Odell stepped down from consideration on this item due to a conflict of interest. Mr. Farrel explained the grant application is for continuation of the housing rehabilitation program, and was prepared for the City by People's Self -Help Housing Corporation (PSHHC). The total grant is in the amount of $500,000 to which the City will add $10,000 in the form of cash, permit fee waivers, and staff time. He acknowledged the considerable assistance of PSHHC in preparing successful grants for the City. Michael Montgomery of PSHHC responded to questions from Council. Mayor Sheetz opened the hearing to the public for comments. MINUTES - MORRO BAPCITY COUNCIL • REGULAR MEETING - APRIL 24, 1989 PAGE 5 Jeanette Duncan, Executive Director of PSHHC, noted there are a number of people on the waiting list for this program, and Morro Bay has a number of fixed income residents. Mary Phillips questioned whether individuals can have investments and still be eligible for this program? Ms. Duncan stated their agency follows federal government guidelines in determining ap- plicant eligibility; their regulations specify a limit on liquid income, not assets. MOTION: Councilmember Wuriu moved for adoption of Resolution No. 47-89. The motion was seconded by Councilmember Lemons and carried with Councilmember Odell abstaining. (4-0-1) Councilmember Wuriu encouraged people to review the application and its statistics; he did not realize there was such a substan- tial number of people in Morro Bay in the below normal levels of income bracket. Councilmember Odell returned to his seat. D-2 RESOLUTION NO, 43-89 APPROVING AMENDMENTS TO LOCAL COASTAL PROGRAM LAND USE PLAN (LCP/GP ZOA 01-86A) ADOPTING A NORTH MAIN STREET SPECIFIC PLAN, AND INTRODUCTION/FIRST READING OF COMPANION ORDINANCE NO. 350 AMENDING CHAPTER 17 OF THE MORRO BAY MUNICIPAL CODE (ZONING ORDINANCE) CONTINUE HEARING TO O8 MAY 1989 COUNCIL MEETING Mr. Napper explained the final document for this items needs some additional modifications which staff was unable to complete by the agenda packet deadline. He recommended Council open the hearing for comments and continue the item to the next meeting. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the item was returned to Council for action. MOTION: Councilmember Lemons moved this item be continued to the May 8, 1989 Council meeting. The motion was sec- onded by Councilmember Baker and unanimously carried. (5-0) D-3 CONSIDERATION OF CITY POSITION ON PROPOSED SAN LUIS OBISPO COUNTY WATER ETHIC Mr. Nichols stated the County Water Advisory Committee is consid- ering recommending to the Board of Supervisors adoption of a County Water Ethic which would become the County's policy docu- ment regarding future water use in the County. The document con- tains a reference to possibly extending the policies to incorpo- rated cities through their contracts for the State Water Project. The Water Advisory Board and staff believe the Water Ethic should MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 24, 1989 PAGE 6 be amended to substitute language or delete reference to "imposing" water use standards on incorporated areas, leaving this under local jurisdictional purview. Staff recommends Coun- cil direct the City Council voting members on the County Water Advisory Board to alter or delete this paragraph from the Water Ethic. Councilmember Lemons commented while Council can direct him, as the City's representative on the County Board to take this action, Councilmember Wuriu is Supervisor coy's appointee and Council cannot direct him how to vote Mayor Sheetz opened the hearing to the public. Randy Ruff, 485 Shasta, supported the staff recommendation on this item to retain local flexibility, noting great differences in localities. Mary Phillips apologized for using Public Comment time for dis- cussing the water situation. Mayor Sheetz agreed with Councilmember Lemons the City cannot direct Councilmember Wuriu how to vote, but hopes he would vote in line with the staff recommendation. Councilmember Wuriu agreed, and stated the language should be in the nature of the County cooperating with the cities. MOTION: Councilmember Baker moved the language which mandates County water use standards for subscription to State Water Project and/or Nacimiento water be altered or deleted from the County Water Ethic, and that Coun- cilmember Lemons be instructed to vote accordingly when the document returns to the County Water Advisory Com- mittee. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) It was noted the while the County may have the authority to im- pose these regulations, the action to modify the language is a pre -position to negotiations. Councilmember Lemons stated delet- ing the language does not change the County's legal authority. Mr. Napper stated during the time since the last Council meeting, questions were posed to staff regarding the validity of the Con- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 24, 1989 PAGE 7 ditional Use Permit (CUP) on this project; staff has expended time researching this question. Ms. Skousen said staff has spent a considerable amount of time researching the files to determine the status of the CUP. It ap- pears the original CUP was issued in 1981 for one year; it was extended for a second year, and may have expired in April 1983. Review of the file thus far shows building permits issued in 1984, however, there is still a question as to whether some per- mits were issued prior to that. Upon contact with attorneys for FSLIC regarding this matter, they requested Council postpone the matter for two weeks so they can research their files and the law. Mayor Sheetz opened the hearing to the Council for comments. Ann Freeman, 785 Cabrillo, complained about the difficulty in getting information from staff regarding what is to be built. Charles Palmer, 485 Estero, asked what are the implications if the building permits are found to be invalid? Mayor Sheetz stated the request for postponement is to research that question, among others. Randy Ruff stated an additional question should be the status of the water equivalencies throughout the process? Joan Mihay stated the builder told the neighbors he cannot change the footprint plans, but is in fact changing them to make larger units. She stated the property owners in the area have been floundering around because they have no forum to ask their ques- tions; this has not been an open process. Bruce Risley, President of Civic Action League, was in favor of Council postponing this item. He maintained the City's Municipal Code states, "in all cases the water equivalency permit shall expire 2 years from the date it is issued", and Council does not have the authority to violate ordinances. He said Inland West Development Co. proposes to increase the units by more than 38%, and this is a substantial change which cannot be approved by an administrative process. Elizabeth Baker stated the increased size in the units means increased income to the developer; he should be able to drop the height of the roofs without any loss; outdoor lighting should also be capped to reduced the glare to the neighbors. Paul Richard, 590 Kings, stated it is time to make some decisions and compromises and turn the project into something besides an eyesore. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 24, 1989 PAGE 8 Mel Leeds, Bayshore resident, stated he was shocked to learn the present units may have been built without legal permits. He has a lot invested in the property and the project needs to be finished. Steven Paige, 6438 Torro Creek Road, Atascadero, stated the City's Municipal Code clearly states the water equivalencies for this project have expired. William Manley, 680 Bella Vista, stated he is against this pro- ject, and the City may be charged with a discrimination suit if it awards water to it. Bob Taft, 375 Acacia, stated the developers are asking for favors they have not earned. He said the project is not consistent with the character of Morro Bay, and the City is dealing with Southern California developers who will take profits from the project out of Morro Bay. Mary Phillips, 2645 Ironwood, said she is not in favor of the project; the legal aspects should be looked into. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Wuriu moved this item be continued to the next meeting. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) 1 • A 1 • _ _ULtWO_ • Mr. Nichols explained the request of Morro Development Co. to abandon an undeveloped 60 foot wide road easement across their property at the intersection of Embarcadero and Coleman Drive. When this request was first before Council in May 1988, Council deferred the matter hoping to receive recommendations for the area from the Blue Ribbon Committee studying the Cloisters prop- erty and this area. Those recommendations were not forthcoming, and the matter is now before Council for a decision. Staff is recommending Council deny the request since there may be a need at some future date to connect Embarcadero/Coleman Drive to Atas- cadero Road; circulation patterns that might be necessary at a future date are not known and staff believes retaining the ease- ment will preserve flexibility for future road alignments. Mr. Nichols stated it is unknown what purpose the property owners wishes to make of the easement; no development plans have been filed with the Community Development Department. Mayor Sheetz opened the hearing to the public for comments. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 24, 1989 PAGE 9 Katherine Walling opposed the City relinquishing the easement. She remembered a prior exchange in the same area where the City acted unwisely. Councilmember Lemons asked when the specific plan for this area will be considered? Mr. Farrel said the process is currently underway; Council adopted a work program at their last meeting. Councilmember Odell stated the Morro Development parcel extends into the Bay; he asked if there has been a determination from the State Lands Commission whether this area is tidelands or fee title? Mr. Nichols stated it is carried on the Assessor's Parcel Map as fee title property; the owner pays taxes on it. MOTION: Councilmember Baker moved Council deny the abandonment request and adopt Resolution No. 40-89. The motion was seconded by Councilmember Wuriu and unanimously carried by roll call vote. (5-0) Councilmember Odell requested staff investigate the position of the State Lands Commission regarding the extension of this pri- vate property into the Bay. D-6 RECONSIDERATION OF CITY'S 1989 WATER ALLOCATION PROGRAM TO AWARD BUILDING PERMITS, AND STATUS REPORT ON WATER BASIN LEVEL AND RAINFALL DATA Mr. Napper stated Council is in receipt of an update on the City's rainfall and water basin levels, and the Resolution Coun- cil adopted establishing the 1989 Water Allocation Program. Staff suggests Council set the 1989 limit at 50 single family dwellings and 27 multi -family; Council has already allocated 13 SFD and 20 MFD for the first quarter. Mayor Sheetz opened the hearing to the public for comments. Ed Ewing, 238 Pacific, spoke on behalf of 15 permits from last year's waiting list and encouraged Council to allocate these per- mits in fairness to the applicants. He said retrofit works, and by allowing building, Council is saving water. John Heimel, Cedar Avenue, said there can be building in Morro Bay without hurting the water situation. He requested Council continue to allow building under the retrofit program. Charles Palmer, 485 Estero, stated Council and staff have not come up with any numbers to validate the pipeline replacement program. Nelson Sullivan said he doesn't know anyone who believes the pipeline replacement program saves water; developers are putting MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 24, 1989 PAGE 10 the accent on retrofit. He believes Council's action to change the retrofit ratio from 2:1 to 1.5:1 is illegal since the Coastal Commission has not approved it. Dale Reddell, 680 Sequoia, agreed with Mr. Ewing; he believes both the pipeline replacement and retrofit programs work. Randy Ruff stated he knows of no person in existence who has demonstrated that the pipeline replacement program saves water. He requested a five -member review commission be appointed to review the City's water savings conservation program and provide a report using scientific and industry standards to arrive at an assessment of how much water is saved from the City's conserva- tion programs. Mary Phillips does not believe anyone uses less water than she does and she doesn't have retrofitted fixtures. Bob Taft believes the City should require installation of water saving fixtures without allowing additional building; building permits should only be issued when the City's acquifers are filled. Mayor Sheetz returned the matter to Council for action. Mayor Sheetz questioned the allegation the City has no legal basis for allowing the 1.5:1 without Coastal Commission approval. Ms. Skousen stated there is a question as to whether or not the City has to receive Coastal Commission approval since the Commis- sion has certified the City's Local Coastal Program. Councilmember Lemons stated he is convinced retrofit saves water; if an individual installs water saving fixtures and does not change habits, he has to save water. Councilmember Wuriu stated it is important to remember anything can be proved with figures, and the only definitive information the City has is the overall usage. The fact remains, with more units being built, the City is still using less water. Although some of the savings can be attributed to conservation, retrofit has to play a role in it. Councilmember Baker pointed out the Council's change actually means a developer has to retrofit more houses to obtain a water equivalency; in other words, the savings were increased by the change rather than decreased. Mr. Farrel agreed stating where a builder had to retrofit 14 homes under the 2:1 ratio formula, he now has to retrofit 18 homes under the 1.5:1 ratio formula set by Council. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 24, 1989 PAGE 11 MOTION: Councilmember Wuriu moved Council approve 1989 water allocation of 50 single family dwellings and 27 multi- family dwellings, and they be issued quarterly. Council discussed the proposed motion. It was noted if Council approved an annual allocation, present regulations require they be released quarterly. The motion died for a lack of a second. MOTION: Councilmember Wuriu moved the yearly residential water allocation under Measure F be 50 single family dwellings and 27 multi -family dwellings; 77 total. The motion was seconded by Councilmember Lemons and unani- mously carried. (5-0) MOTION: Councilmember Baker moved 13 single family dwellings and 7 multi -family dwellings for the second quarter be released, and the remaining allocations be brought back to Council at their first meeting in July. The motion was seconded by Councilmember Lemons. Councilmember Wuriu stated he believed it is vital to have some building in Morro Bay; based on the track record of retrofit, this is a safe plan and one the City can follow with a degree of confidence. Councilmember Odell also believes with every house built by retrofit, there is much less impact on the water supply. He has sympathy with those who are trying to plan their lives around the City's allocation program. Councilmember Odell reminded staff of Council's prior request for an ordinance requiring low -flush toi- lets in new construction. Mayor Sheetz stated Morro Bay is far ahead of other communities because of its conservation program. The 13 homes Council approves this evening will not be constructed until the City is into the next rainy season. The motion was seconded by roll call vote. (5-0) D-7 PROPOSAL BY CIVIC ACTION LEAGUE OF MORRO BAY, INC. FOR MORRO BAY TO ENACT AN ORDINANCE TO PROHIBIT SPECULATIVE BUILDING Bruce Risley, President of Civic Action League, requested Council agendize this item for a future public hearing to consider an ordinance which would prohibit for a period of two years from completion the transfer of any property improved by building per- mits requiring post-1989 water allocations derived from water presumably conserved from pipeline replacement or retrofitting. The only exception would be cases of hardship as described in the water allocation procedures. He believes water is saved in Morro MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 24, 1989 PAGE 12 Bay by people conserving, and those people are entitled to know the building taking place is by people who own lots and want to live here and is not being motivated by speculation - somebody who wants to make a profit out of what happens in Morro Bay. He requested Council agendize the item and come forward with a pro- posal to carry it out. Councilmember Lemons asked if his proposal was not against build- ing, but against speculative building? Mr. Risley stated they are advocating that the City not have speculative building, but have building for people that want to live in their homes. Councilmember Baker asked if it was correct that if someone was able to buy two or three lots and wanted to build on them to sell to other people, Mr. Risley did not believe he should do that because he is going to make some money on that? Mr. Risley said that is correct; that's speculation. Councilmember Baker believed that was an un-American approach, and not in line with the Constitution. Mr. Risley requested the item be agendized so the matter can be debated; he believed it very American to try to control our com- munity and help the people that want to live here. Councilmember Odell asked if the intent was to preserve afford- ability; he was unsure what the ordinance would accomplish? Mr. Risley stated the ordinance is not intended to address affordable housing. Mayor Sheetz stated this item is on the agenda for public hearing at this time at Mr. Risley's request; the item was not agendized to schedule it for later public hearing. It will be opened to the public, and then Council will make a decision on the request. Mr. Risley stated he was hoping staff would put together a legal ordinance and present it for debate. Councilmember Wuriu asked if CAL had researched this item as to its constitutionality? Mr. Risley said Morro Bay had an ordi- nance along these lines; it was rescinded sometime in the last few years. Councilmember Lemons stated the ordinance was re- scinded because the City Attorney said it would be indefensible in court. Councilmember Odell stated he would be willing for CAL to submit an ordinance with a legal opinion and hear it at a later date. Mr. Risley said if that is Council's decision this evening, they would be pleased to do that. Mayor Sheetz opened the hearing to the public for comments. Dale Reddell, 680 Sequoia Court, stated America was built on speculation; Council should not be discussing this proposal. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 24, 1989 PAGE 13 Randy Ruff referred to the Homestead Act and stated the CAL pro- posal is analogous to a person buying property for family use and getting access to it through a government action; there is noth- ing wrong with it. Mr. Ruff maintained the previous ordinance was declared indefensible because of the deed restriction re- quirement which had to do with water equivalencies. He believes there has been Supreme Court decisions that local government entities may take action to determine the characteristics of their cities and allocate resources to that purpose. Jim Maul, 571 Embarcadero, said he has read a number of articles regarding the national average of housing; the housing in this country built by individuals amounts to about 10%, 90% of it is speculative housing. Councilmember Odell commented the difference with the Homestead Act is the government owned the property so they had a right to dictate how things should continue there; he does not believe the City has the same purview in this case. Mary Phillips stated speculative building is when a builder from out of town buys old houses that have water equivalencies, puts out the renter, asks for sub -standard lots and builds massive houses, and then leaves. Ed Ewing, 238 Pacific, does not believe anyone is qualified to dictate what a hardship would be if this ordinance was enacted. He said it would be an illegal ordinance. Nelson Sullivan said one of the arguments used for the Coastal Commission to lift the building moratorium in Morro Bay was so those people who owned lots and wanted to retire here would be able to build their dream homes. He believes when the City has such a precious thing as water, if we are going to share it with somebody, it should be with somebody who will appreciate it. He noted when Councilmember Lemons and then -Mayor Dale Reddell voted on rescinding the previous ordinance addressing this issue, they had a conflict of interest. Katherine walling complained about people who represent to the City they are building and plan to live in Morro Bay, then sell their homes and leave. She said she read an article recently which stated the thing we are going to run out of by the year 2000 is not water, but privacy. Mayor Sheetz closed the hearing and returned the item to Council. Councilmember Lemons stated whether the person who builds the house moves into it, or he sells it and someone else moves into it, you have the same number of people; this ordinance will do nothing to reduce the density of the population in Morro Bay. He • • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 24, 1989 PAGE 14 stated he will not support a motion to place this item on the agenda. Councilmember Wuriu stated he was disappointed with the debate this evening; he believes everyone is trying to find the best way to do something, and this can be done without name-calling. Councilmember Baker believes this is an un-American proposition. Councilmember Odell said he believes in preserving the character of Morro Bay, but does not see how this ordinance would accom- plish that. Mayor Sheetz stated there are only 500 lots left in Morro Bay to build on regardless who builds on them. She also said Morro Bay will never come together as a town until Morro Bay wants to, and if people continue to do things that are divisive, the town will never come together. No action was taken on this item. Mr. Henderson stated this is a housekeeping action which permits safety employees enrolled in the Public Employees Retirement Sys- tem (PERS) to receive additional options: an improved retirement formula (2% at 50 plan), higher level of survivor benefits, and credit for unused sick leave. Mr. Henderson explained these ben- efits were negotiated by the employee units during negotiations last year. He requested Council adopt Resolution No. 45-89 of intention to amend the contract between the City and PERS, and approve the first reading of Ordinance No. 351 which authorizes the amendment to the contract. The second reading of the ordi- nance will be delayed until May 22nd because of a PERS rule re- quiring a 20-day period between the introduction and adoption of the ordinance. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the item was returned to Council. MOTION: Councilmember Odell moved for adoption of Resolution No. 45-89. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) MOTION: Councilmember Lemons moved Ordinance No. 351 be read by title and number only. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL is REGULAR MEETING - APRIL 24, 1989 PAGE 15 Mr. Napper read Ordinance No. 351 by title and number only. MOTION: Councilmember Lemons moved for approval of the first reading of Ordinance No. 351. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) E. CLOSED SESSION MOTION: Councilmember Odell moved the meeting adjourn to Closed Session. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mayor Sheetz stated Council is adjourning to Closed Session to consider pending litigation in accordance with Government Code Section 54956.9(a), Keyoto-Natalie v. City of Morro Bay. The meeting adjourned to Closed Session at 9:17 p.m. and returned to regular session at 9:47 p.m. F. ADJOURNMENT MOTION: Councilmember Odell moved the meeting be adjourned. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) The meeting adjourned at 9:47 p.m. Recorded; by: ARDITH DAVIS City Clerk 0 0 -� io, /�:f9 City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING - APRIL 10, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so by standing. When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments should normally be limited to three minutes. DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the fol- lowing actions are approved without discussion. A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF MARCH 27, 1989, ADJOURNED REGULAR MEETING OF MARCH 29, 1989, AND SPECIAL MEETING OF MARCH 29, 1989 A-2 RESOLUTION NO. 34-89 DENYING APPEAL AND UPHOLDING PLANNING COMMISSION APPROVAL OF CUP 03-89 TO ALLOW OUTDOOR SALES AND DISPLAYS AND TO MAKE A NONCONFORMING POLE SIGN CONFORMING AT 1560 MAIN STREET A-3 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (BRASIER) A-4 RESOLUTION NO. 37-89 AUTHORIZING A WORKERS' COMPENSATION COMPROMISE AND RELEASE SETTLEMENT FOR FORMER POLICE OFFICER DONALD PIERCE A-5 PROCLAMATION DECLARING THE WEEK OF APRIL 23-29, 1989 AS "NATIONAL CONSUMERS WEEK" B-1 ORDINANCE NO. 348 ANNOUNCING FINDINGS AND ADOPTING AMENDMENTS TO THE MORRO BAY LOCAL COASTAL PROGRAM IMPLEMENTATION PROGRAM (ZONING ORDINANCE) TEXT AND MAP WITHIN PLANNING AREA 5 (CASE NO. LCP/ZOA 02-88; P.G.&E., DEN-DULK, AND CITY PROPERTIES) SECOND READING/ADOPTION 1 B-2 ORDINANCE NO. 349 ADOPTING AMENDMENTS TO CHAPTER 17 OF THE MORRO BAY MUNICIPAL CODE (ZONING MAP) FOR THE "PINEY WAY VILLAGE" PROPERTY (INITIATIVE MEASURE D, ORDINANCE NO. 341) SECOND READING/ADOPTION B-3 REVIEW OF PROPOSED SCOPE OF STUDIES FOR MORRO ROCK/WATERFRONT AREA SPECIFIC PLAN AND HARBOR MASTER PLAN C. NEW BUSINESS C-1 POSITION ON AB 628 (KELLEY); PROPOSED LEGISLATION REQUIRING STATE OFFICE OF PLANNING AND RESEARCH TO PREVIEW LOCAL LAND USE INITIATIVE C-2 POSITION ON FEDERAL CHILD CARE LEGISLATION INTRODUCED BY SENATOR PETE WILSON ("KINDS IN DAY-CARE SERVICES ACT") C-3 AUTHORIZATION AND APPROPRIATION OF FUNDS TO COMMENCE ENVIRONMENTAL IMPACT REPORT FOR PHASE II OF THE COASTAL STREAMS DIVERSION PROJECT D-1 APPEAL OF $130 FINE FOR COMMENCING CONSTRUCTION WITHOUT A BUILDING PERMIT TO RELOCATE A SATELLITE DISH AT KBAI RADIO STATION (FULVIO; APPELLANT) D-2 CONTINUED APPEAL HEARING ON PLANNING COMMISSION DENIAL (RESOLUTION NO. 92-88) TO RE -ISSUE WATER EQUIVALENCIES TO THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION (FSLIC) FOR COMPLETION OF BAYSHORE VILLAGE CONDOMINIUM PROJECT (FEDERAL ASSET DISPOSITION ASSOCIATION, AGENT; 188 BAYSHORE DRIVE, 48 UNITS) D-3 PLANNING COMMISSION RECOMMENDATION TO AMEND WATER OPERATING PROCEDURES CONCERNING WATER EQUIVALENCIES WHEN DEMOLISHING AND REBUILDING SINGLE FAMILY HOMES D-4 COMMUNICATION FROM ED EWING REGARDING ALLOCATION OF ADDITIONAL BUILDING PERMITS E. CLOSED SESSION NONE COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. 2 6 6 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 10, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. F�+�1 PRESENT: Rose Marie John Baker John Lemons Jeff Odell Tom Wuriu ABSENT: None Sheetz Mayor Councilmember Councilmember Councilmember Councilmember STAFF: Gary Napper Judy Skousen Louise Burt Ardith Davis Bill Farrel Nick Nichols Steve Wolter City Administrator City Attorney Finance Director City Clerk Community Develop. Dir. Public Works Dir. Recreation & Parks Dir. Irene Gaffney, Layreader for the Coast Christian Church, gave the invocation, and Mayor Sheetz led the Pledge of Allegiance. 1. Mitchell Gardner, 1434 Perfumo Canyon Road, San Luis Obispo, asked Council consider the Cal Poly Crew Team's request to obtain a Public Area Use Permit to hold their Regatta in Morro Bay Harbor on April 22, 1989. He noted his application to the City was returned too late for this Agenda, and Council will not meet again until April 24th, after the date selected. 2. Charles Palmer, 485 Estero, stated he would like to speak on Item C-3, and believed both Item A-2 and C-3 should be under Public Hearings to give the public an opportunity to speak on them. He made various allegations about City staff mis-plac- ing items on the agenda and distorting the truth; he requested Council invite a Grand Jury investigation into the operation of the City. 3. Nelson Sullivan requested time to speak on Item C-3. 1. Mayor Sheetz noted the request by the Cal Poly Crew Club for their Regatta on April 22nd and asked Mr. Napper if it is proper for Council to act on this item. Mr. Napper stated in MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 10, 1989 PAGE 2 accordance with Government Code Section 54954.2(b)(2), Council can determine the need to take action arose after the posting of the agenda; a 2/3rds approval of such a motion is necessary. MOTION: Councilmember Odell moved the request for a Cal Poly Crew Club Public Area Use Permit arose subsequent to the posting of the agenda, and shall be added to the Agenda to be considered at this time. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mr. Wolter reviewed the request by the Cal Poly Crew Club to con- duct a Regatta on April 22nd in the harbor from 6:00 a.m. until noon. He outlined the conditions of approval noting the request has been reviewed by the Police Chief, Harbor Director and ASsis- tant City Administrator, and recommended Council adopt Resolution No. 39-89. MOTION: Councilmember Wuriu moved for the adoption of Resolu- tion No. 39-89. The motion was seconded by Councilmem- ber Baker and unanimously carried. (5-0) 2. Councilmember Lemons requested a status report on the progress of the Parking Management Plan. 3. Councilmember Odell requested a re-evaluation of the pipeline replacement water allocation formula, and suggested per- haps he and Councilmember Lemons could work on this item before it is agendized. 4. Councilmember Odell requested a legal opinion on how the City's water consumption data can be declassified so the pub- lic can have access to billing data in order to analyze it. 5. Councilmember Odell requested an item be agendized to consider a new water conservation program ("Retrofit II"); uti- lization of technologies in commercial and homes other than low - flow devices (e.g., gray -water recovery; recycling of car wash water). 6. Mayor Sheetz requested Chevron and P.G.&E. be requested to advise the City of their plans in the event of an oil spill, and how it would be handled. A. CONSENT CALENDAR Mr. Napper recommended Council approve the minutes as submitted. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 10, 1989 PAGE 3 A-2 RESOLUTION NO. 34-89 DENYING APPEAL AND UPHOLDING PLANNING COMMISSION APPROVAL OF CUP 03-89 TO ALLOW OUTDOOR SALES AND DISPLAYS AND TO MAKE A NONCONFORMING POLE SIGN CONFORMING AT 1560 MAIN STREET Mr. Napper recommended Council adopt Resolution No. 34-89. A-3 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (BRASIER) Mr. Napper recommended Council deny the claim, and authorize the City Clerk to sign and mail the rejection notice. A-4 RESOLUTION NO, 37-89 AUTHORIZING A WORKERS' COMPENSATION COMPROMISE AND RELEASE SETTLEMENT FOR FORMER POLICE OFFICER DONALD PIERCE Mr. Napper recommended Council adopt Resolution No. 37-89. A-5 PROCLAMATION DECLARING THE WEEK OF APRIL 23-29, 1989 AS "NATIONAL CONSUMERS WEEK" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. Councilmember Baker requested Item A-2 be pulled for separate discussion. MOTION: Councilmember Wuriu moved for approval of the Consent Calendar with the exception of Item A-2. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) A-2 RESOLUTION NO, 34-89 DENYING APPEAL AND UPHOLDING PLANNING COMMISSION APPROVAL OF CUP 03-89 TO ALLOW OUTDOOR SALES AND DISPLAYS AND TO MAKE A NONCONFORMING POLE SIGN CONFORMING AT 1560 MAIN STREET Councilmember Baker pointed out a correction to page two of the Conditions in the last line; it should read 1140 calendar days" rather than 1140 calendar years". MOTION: Councilmember Baker moved for adoption of Resolution No. 34-89 as amended. The motion was seconded by Coun- cilmember Odell and unanimously carried. (5-0) B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 348 ANNOUNCING FINDINGS AND ADOPTING AMEND- MENTS TO THE MORRO BAY LOCAL COASTAL PROGRAM IMPLEMENTATION MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 10, 1989 PAGE 4 ERTIES1 SECOND —RE Mr. Napper stated this is the second and final reading of an or- dinance initiated by the City for a Local Coastal Program amend- ment; after adoption it will be submitted to the Coastal Commis- sion for certification. MOTION: Councilmember Lemons moved Ordinance No. 348 be read by title and number only. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) Mr. Napper read Ordinance No. 348 by title and number only. MOTION: Councilmember Lemons moved for adoption of Ordinance No. 348 as the second and final reading. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) Mr. Napper stated this is the second reading and adoption of a citizens' initiative rezoning the Piney Way Village property. This item will also be forwarded to the Coastal Commission for certification. MOTION: Councilmember Lemons moved Ordinance No. 349 be read by title and number only. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mr. Napper read Ordinance No. 349 by title and number only. MOTION: Councilmember Baker moved for adoption of Ordinance No. 349 as the second and final reading. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) Council questioned staff as to the manner in which this item will be forwarded to the Coastal Commission. Councilmember Odell and Mayor Sheetz requested the same procedures be followed as were followed in processing the Williams Brothers Initiative, and that staff be prepared to encourage Coastal Commission certification when this item appears on their agenda. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 10, 1989 PAGE 5 B-3 REVIEW OF PROPOSED SCOPE OF STUDIES FOR MORRO ROCK/WATERFRONT AREA SPECIFIC PLAN AND HARBOR MASTER PLAN Mr. Farrel reviewed this item noting Council has previously allo- cated $60,000 for preparation of a Master Plan/Specific Plan for the waterfront area. He reviewed the process on -going thus far, and outlined the work programs for continuing with the Plan. He said the next step will be to organize a series of community workshops to refine issues. He suggested a committee comprised of representatives of the Planning Commission, Harbor Advisory Board, and Recreation and Parks Commission assist in this process. Council asked various questions to which Mr. Farrel responded: it should take approximately 9 months to a year to complete the Plan; the $60,000 currently budgeted should cover most of the costs. Councilmember Odell encouraged the workshops be done other than during the summer months when many residents are away on trips and vacations. This item was for information only; no action by Council was taken at this time. C-1 POSITION ON AB 628 (KELLEY); PROPOSED LEGISLATION REQUIRING STATE OFFICE OF PLANNING AND RESEARCH TO PREVIEW LOCAL LAND USE INITIATIVE Mr. Napper reviewed this item noting AB 628 makes findings local land use initiatives are matters of statewide interest which of- ten having impacts on the economy and housing outside the limits of the local agency. The bill would require each measure filed be submitted to the State Office of Planning and Research for a report discussing the impacts of the initiative. The County of Santa Cruz has forwarded correspondence requesting Morro Bay go on record opposing this bill because of its invasion into matters of local concern. Mr. Napper recommended Council support the bill due to the addi- tional information which will be afforded to local voters. It does not take the place of a city attorney's opinion or arguments for and against the measure. Mayor Sheetz asked how this bill would have affected recent ini- tiatives in the November 1988 election if it had been in effect? Mr. Napper said it depends on how the report is written and if you agree with it. It does, however, add 90 days to the prepara- tion process in order to schedule an initiative before the vot- ers; the Office of Planning and Research has 90 days in which to render their written report. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 10, 1989 PAGE 6 Councilmember Lemons stated the State has no approval authority; they would just be commenting on the measure. Councilmember Wuriu was concerned the State would try to influ- ence the voters with their comments. He said it would be fine as an optional method to get information, but is not in favor of a mandatory requirement. Councilmember Odell believed the bill to be redundant to the initiative process already allowing comments; he noted it is rather benign yet not necessary. Councilmember Baker agreed with the County of Santa Cruz, and stated the citi- zens locally can make decisions without the help of Sacramento. Councilmember Lemons maintained a proposed City initiative could have a profound affect on neighboring communities who do not have the opportunity to vote on them. He suggested Council urge the League of California not to take a position on this bill. MOTION: Councilmember Wuriu moved the Morro Bay City Council go on record in opposition to AB 628 and this information be forwarded to the League of California Cities. The motion was seconded by Councilmember Baker. Councilmember Lemons requested the motion be amended for the let- ters to reflect it was not a unanimous decision, as he intends to vote against the motion. Councilmember Wuriu amended the Council's opposition to The amendment was accepted the amended motion carried vote: his motion to add the fact this bill is not unanimous. by Councilmember Baker, and on the following roll call AYES: Baker, Odell, Wuriu, Sheetz NOES: Lemons Mr. Napper reviewed the legislation proposed by Senator Pete Wilson known as "Kids in Day -Care Services Act"; this is a counter -proposal to the "Act for Better Child Care (ABC Bill). Senator Wilson's bill provides tax credits for all eligible low- income families, whereas the ABC bill would be a federal entitle- ment program competing for federal resources with other social welfare programs. The KIDS Bill also creates a revenue source to pay for the program. MOTION: Councilmember Lemons moved Council indicate support of Senator Wilson's bill. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 10, 1989 PAGE 7 C-3 AUTHORIZATION AND APPROPRIATION OF FUNDS TO COMMENCE ENVI- RONMENTAL IMPACT REPORT FOR PHASE II OF THE COASTAL STREAMS DIVERSION PROJECT Mayor Sheetz stated since it is 7 P.M., Council will continue on to public hearing items, and return to C-3 at the end of the agenda. D-1 APPEAL OF S130 FINE FOR COMMENCING CONSTRUCTION WITHOUT A BUILDING PERMIT TO RELOCATE A SATELLITE DISH AT KBAI RADIO STATION (FULVIO; APPELLANT) Mr. Farrel stated Mr. Fulvio applied for a building permit to re- locate a satellite dish for KBAI Radio Station after commencing work on the relocation. The Building Official assessed a fine in accordance with the Municipal Code for beginning construction without a permit. A building permit is required whenever the value of a building or structure is $100 or more in labor and materials. Mr. FulVio does not object to the requirement for a building permit, but disputes the fine. City staff is concerned if a fine is not enforced, individuals may tend to build first and get a permit later if they get caught, knowing they will only have to pay the cost of the build- ing permit and no penalties. He noted others have been assessed the fine in the past and paid it; waiving the fine for this indi- vidual does not send a consistent message to the community. Councilmember Baker asked if similar fines have been assessed in the past for satellite dishes? Mr. Farrel said not for satellite dishes, but they have been assessed for fences and sheds. Councilmember Wuriu asked when Mr. Fulvio applied for a building permit? Mr. Farrel stated someone complained about the building activity to the Code Enforcement Officer, and she informed him he should check with the building department to see if a permit is required. At that time, Mr. Fulvio came into the Department and applied for a permit. Mayor Sheetz opened the hearing to the public for comments. Dino Fulvio, President and General Manager of KBAI Radio, stated this is a matter of principle to him. He pointed out he could have removed a tree near his building and installed the new satellite dish without having the requirement to obtain a build- ing permit. He said his construction consisted of putting a pole in the ground before he came in and got the permit; the fine is grossly unfair. Mayor Sheetz closed the hearing to the public. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 10, 1989 PAGE 8 Councilmember Wuriu stated while he shares staff's concern about even-handed enforcement, he thinks it is equally important for the City to maintain an image as far as fair administration of the law. He believes Mr. Fulvio attempted to comply with the law as soon as he was advised. Councilmembers generally agreed this fine should be waived as it was a minor incident. MOTION: Councilmember Wuriu moved the fine and penalties be waived; and, the appeal be granted with the finding the owner, under his own initiative, came in to apply for a building permit. The motion was seconded by Coun- cilmember Odell and unanimously carried by roll call vote. (5-0) D-2 CONTINUED APPEAL HEARING ON PLANNING COMMISSION DENIAL (RESOLUTION NO. 92-88) TO RE -ISSUE WATER EQUIVALENCIES TO THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION (FSLIC" FOR COMPLETION OF BAYSHORE VILLAGE CONDOMINIUM PROJECT (FEDERAL ASSET DISPOSITION ASSOCIATION. AGENT: 188 BAYSHORE DRIVE. 48 UNITS" Mr. Napper stated Council has been negotiating with the proposed developers, Inland West Development Company, since the Council's meeting on January 23rd. This evening's staff report contains the agreements reached between staff and the developer. Mr. Farrel reviewed the conditions in detail for Council. The Park Maintenance Agreement has been omitted pending State Depart- ment of Real Estate determination if they will permit the condi- tion. The developer has agreed to significant modifications to the fence; he has agreed to lower the buildings on the north side by 218" to 41, but leave all structures on the south side at their original approved height; he has agreed to install ultra low -flush toilets in all new units and presently unsold units. Mr. Farrel stated the original water approval in 1979 was for 31.34 equivalencies which equals to 7.75 acre feet of water annu- ally. With the ultra low -flush toilets, it is estimated total water usage for the entire project can be reduced to only 4.1 acre feet per year. Staff recommends Council grant the FADA ap- peal and reissue the expired water equivalencies to FSLIC subject to these conditions and their close of escrow with Inland West Development Company. Councilmember Odell commented the better solution on the fence is to remove it altogether; it probably will cost just as much as the planned remodeling. He was in favor of landscaping to shield the project from Main Street. Mr. Farrel stated the bank under the fence is eroding in a number of places, and the fence miti- gates that problem. Councilmember Lemons questioned if 10 feet exists between curb line and the fence, and noted his disapproval with the City involving itself in the approval of color schemes. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 10, 1989 PAGE 9 Mayor Sheetz opened the hearing to the public for comments. Spike Lynch, Inland West Development Co., stated the reason for the remodeling of the fence rather than eliminating it is due to privacy and security of the residents' back yards. He believes the better solution is to lower the fence, break-up the linear line, and effective landscaping. Councilmember Odell questioned whether there is a 10' right-of- way along the project's entire frontage to accommodate a 6' side- walk and 4' landscaped strip? Mr. Lynch stated the right-of-way is not 10' at all locations. Councilmember Wuriu asked what the time schedule is for comple- tion of the project if the water equivalencies are reinstated? Mr. Lynch said hopefully within 12 months of obtaining building permits. There were some questions from the audience to which Mr. Lynch responded. Katherine Walling suggested shrubbery instead of a fence, which would also help with the bank erosion and in addition provide resting places for the monarch butterfly. Elizabeth Baker stated Council is in receipt of a petition from 15 people requesting information regarding negotiations; no re- sponse has been received. They still have not received access to the complete file on the negotiations, and requested Council con- tinue this item for 2 weeks in order for the people to study the adequacy of the negotiations and receive this information. Ann Freeman also requested a continuance of this item, and sug- gested Council not feel pressured into making an immediate re- sponse to the proposal. She encouraged Council to require the sale of the existing condominiums before others are built. She said since the City Attorney has determined the water equivalen- cies for this project have expired, further development should be considered a new project and they should wait in line for water like everyone else. Bruce Risley stated the change from 2-bedroom to 3-bedroom is an increase in density, constitutes a significant change, and should be referred to the Planning Commission. He does not believe a finding of hardship exists according to the Ordinance, and said Council would exceed their authority by allocating the water equivalencies. Joan Mihay, 785 Cabrillo, stated the "minor" change of substitut- ing Unit C for Unit D proposed by the developer increases the square footage of the units by 64%. She requested Council con- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 10, 1989 PAGE 10 tinue this matter; staff was supposed to reduce density, not in- crease it. Hilda Heifetz stated the change of Building D with Building C adds an extra bedroom which equals an increased use in water and occupants. She supports a continuance of this item because she believes neighboring property owners have been denied the oppor- tunity to inform themselves. She requested a public forum be scheduled for an informal exchange of ideas. She said Unit D's are not included in the current plans, which was supposed to be a provision for low-income units. John Heimel, 2898 Cedar, said there are people in Morro Bay who have been waiting a long time for building permits, and the water for this project has expired. He found it ironic that staff rec- ommended a conservative approach to allocation of building per- mits at the last meeting due to water constraints, but is now recommending re -allocation of water to this project. Dorothy Cutter stated the big issue is water; this project should get in line like everyone else. Council must make sure there is enough water for the people who are here. Charles Palmer stated the fence on this project is a traffic hazard. Carol Carr, P. 0. Box 525, said the increased traffic on Main Street as a result of this project needs to be addressed. With an additional 72 condominiums and summer traffic to the State Park, problems will occur. William Manley, 680 Bella Vista, was opposed to allocating water to this project; the City may be liable for a discrimination suit by other people who have purchased property and are waiting to build. Mayor Sheetz closed the hearing to the public. Councilmember Odell does not believe this project has more vested rights than other lot owners in Morro Bay. He believed the fence should be removed and creative landscaping installed to protect the erosion of the bank and the privacy of the residents. He was in favor of a continuance and direct input between the developer and residents. Mayor Sheetz and Councilmember Wuriu agreed a continuance is in order. Councilmember Wuriu encouraged the citizens and developer to make an effort to find a common ground. He asked the City Attorney to work out a way to hold the water equivalencies on this project in abeyance until the water crisis is over. Mayor Sheetz asked if there is a way for the water equivalencies to be allocated over a period of time? Ms. Skousen stated she is un- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 10, 1989 PAGE 11 sure if the Department of Real Estate will approve phasing of the project. Mayor Sheetz asked if there is a time frame in which Council must make a decision on this matter? Ms. Skousen said there is a serious time constraint; the pending escrow between FSLIC and Inland West is scheduled to close by the first part of May. MOTION: Mayor Sheetz moved this item be continued for two weeks. The motion was seconded by Councilmember Odell and unanimously carried by roll call vote. (5-0) Council recessed from 8:30 p.m. to 8:40 p.m. Lei Mr. Farrel explained current code/practices in the Community Development Department to determine if additional water alloca- tions are required when a small single family residence (500 sq.ft. or less) is demolished and replaced with the same use, but a larger residence. The Planning Commission recommends Council modify the water allocation operating procedures to provide all residential structures with a water meter, regardless of size, be credited with a full water equivalency. Mayor Sheetz opened the hearing to the public. Katherine Walling agreed with staff's recommendation to require additional equivalencies for demolishing a small residence and building a larger one or adding another story. Dale Reddell, 680 Sequoia Court, encouraged Council to adopt the Planning Commission's position. He said when the water equiva- lency program was first started, a single family residence was given one water equivalency; replacing old housing stock with new will clean up the town and get rid of a lot of junk. Clyde Ganes, 1000 Little Morro Creek Road, agreed with Mr. Reddell. A water equivalency is given to a single family resi- dence for a certain amount of water; it does not matter if there are 2 or 5 people living there. Dan Reddell, Nutmeg, said a number of the new larger homes re- placing smaller residences are occupied by only 1 or 2 people, or used as summer homes. He does not believe the water usage is any more intensive with this program; water being used is going on landscaping. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 10, 1989 PAGE 12 Charles Palmer, 485 Estero, said water is used both inside and outside the house; if Council wants to control water usage, it should concentrate on outside use rather than inside. Mayor Sheetz closed the hearing to the public. Councilmember Odell said while there may be some justification for allocating water by the size of the house, individual per- sonal habits cannot be determined. He believes one equivalency for a single family residence is equitable. Councilmember Baker agreed with the Planning Commission's recom- mendation, and said there is no relationship between square footage and use of water. MOTION: Councilmember Baker moved staff amend the water operat- ing procedures to reflect the Planning Commission's recommendation. The motion was seconded by Councilmem- ber Wuriu. Mayor Sheetz commented the practice of demolishing old residences and replacing them with new may be the salvation of the construc- tion industry in Morro Bay. Councilmember Lemons said there is a tendency to talk about a water equivalency as a stated amount of water, and that is not the case; it is an average numerical figure. Councilmember Baker amended his motion to indicate the amendment is to apply to residential uses only; not commercial. The amendment was accepting by Councilmem- ber Wuriu, and the amended motion was unanimously carried. (5-0) I$VjWAY 0007 ZlERA Ml-ori-4:Ll:4DLe&.1% 3 _ \ Mr. Ewing made some comparisons to Council's lottery program last year and this year, and concluded Council should allow those who are on the waiting list from last year to go ahead and build in- stead of waiting for the water situation to change. He said the retrofit program works very well and there is a water savings to the City when building is allowed to go forward. Interest rates, labor, materials continue to go up for the builder; he asked Council to reconsider their decision to wait until June to allocate building permits. Dale Reddell said Council gave the retrofit program a "black eye" by not allocating building permits; either the program works or it does not. If it does, allowing building will save water. • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 10, 1989 PAGE 13 Joan Mihay, 785 Cabrillo, said sh works. She said Councilmember L bank, and there is no water in the be going through the current wa Mihay said no decision should be whether or not the program works, for awhile. Le e does not know if the program talks about water in the bank or the citizens would not ter conservation program. Ms. made until the City can show and until there is enough water Mayor Sheetz closed the item to the public. MOTION: Councilmember Lemons moved the motion from the last meeting be taken off the table and set for considera- tion at the next Council meeting. The motion was sec- onded by Councilmember Wuriu and unanimously carried. (5-0) Council discussed a companion recommendation of the City Adminis- trator to eliminate the Municipal Code Section which allows any- one to schedule agenda time before the City Council; this provi- sion was made extraneous by the State -mandated Public Comment Period which allows individuals to bring matters before the City Council. Council discussed this item and generally agreed no abuses of this section have taken place, and preferred to adopt a "wait and see" attitude before directing an amendment. Councilmember Lemons disagreed, stating he could think of one instance where a great deal of public time was taken through something which prop- erly should have been done by means of correspondence. No action was taken on this latter item. Mr. Nichols explained the Division of Water Rights of the State Water Resources Control Board has required the City combine its Phase II of the Coastal Stream Diversion Project with the San Bernardo Reservoir into one document. He recommended Council ap- prove funding for the EIR for Phase II in the amount of $210,000 by reallocation from the New Water Production Reserve account. Mayor Sheetz asked if the City was successful in entering into JPA agreements with other agencies for water, could some of the costs be passed on to them? Mr. Nichols stated the City intends to recover costs it is fronting if other agencies join the pro- ject. Mayor Sheetz asked if the City is close to entering into any agreements? Mr. Nichols stated negotiations are in a discus- sion stage at this point; it is difficult to obtain firm agree- ments until the studies are completed and definitive costs known. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 10, 1989 PAGE 14 Councilmember Lemons asked what the time line is on Phase I? Mr. Nichols stated the draft EIR on the Dam should be completed by August, and the Phase I EIR by June, with a certified EIR in 3 to 4 months. Nelson Sullivan said this project has to be pursued, and this step is necessary or the City will be dependent on the uncertain State Water Project. Charles Palmer stated the City cannot depend on Whale Rock for all the things it's going to need in the future. It is wise to keep the Dam project on line. He disagrees with the way it is presented; Morro Bay does not need an 11,000 acre foot dam. Bruce Risley encouraged Council to allocate the funds for this project. He suggested Council take the leadership with the City of San Luis Obispo and support a more cooperative action for joint solution of the water problem and political difficulties. Robert Enns stated the future of Morro Bay and Cayucos depends on continuing with this project. He reminded Council that two Cayucos water agencies appeared before Council at the last meet- ing and stated they are willing to participate and to help pay for this project. He said maybe it is time to ask them; their next meeting is May 8th. Councilmember Wuriu requested a letter be sent to the San Luis Obispo City Council requesting a joint meeting. MOTION: Councilmember Lemons moved the City Administrator be directed to draft a letter asking for a special meeting with the San Luis Obispo City Council. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Councilmember Lemons was concerned if the City proceeds with both portions of this project, the State may not approve the first phase, and the City will waste the monies for Phase II because it will not be approved either. Mr. Nichols said his concern is not if the State will approve the project, but how much water they will allow to be diverted. Councilmember Lemons noted he sup- ports the funding, but it will require a raise in water rates as we cannot deplete our reserve completely. MOTION: Mayor Sheetz moved Council award the contract for the Environmental Impact Report for Phase II of the Coastal Streams Diversion and Storage Project to Robert H. Born Consulting Engineers; and, appropriate $210,000 from the New Water Production Reserve account for this pro- ject. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) 9 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 10, 1989 PAGE 15 E. CLOSED SESSION None F. ADJOURNMENT MOTION: Councilmember Odell moved the meeting be adjourned. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) The meeting adjourned at 9:46 p.m. Recorded by: ARDITH DAVIS City Clerk ,Y� a 9, /qr- /% , w/ram. u-Ao,,� &,, AGENDA - JOINT MEETING MARCH 29, 1989 CITY COUNCIL -RECREATION & PARKS COMMISSION 7:00 P.M. CITY OF MORRO BAY MORRO BAY COMMUNITY CENTER STUDIO CALL TO ORDER ROLL CALL PUBLIC COMMENTS Members of the audience wishing to address the City Council - Commission on any matter other than scheduled items may do so at this time. Comments are generally limited to five (5) minutes. A. PUBLIC HEARINGS AND APPEARANCES A-1 REVIEW OF DEPARTMENT 1989-90 WORK PROGRAM A-2 REVIEW OF BIKE PATH OFFER OF EASEMENT FROM PACIFIC GAS AND ELECTRIC COMPANY B. UNFINISHED BUSINESS `[ C. NEW BUSINESS C-1 POSSIBLE SCHOOL DISTRICT AGREEMENT FOR FACILITY USE C-2 25TH ANNIVERSARY OF CITY C-3 STATUS OF TIDELANDS PARK PROJECT D. WRITTEN COMMUNICATIONS NONE E. REPORTS NONE COPIES OF STAFF REPORTS OR OTHER WRITTEN DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE RECREATION AND PARKS OFFICE AND CITY HALL AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. a MINUTES - MORRO BAY CITY COUNCIL SPECIAL JOINT MEETING WITH RECREATION & PARKS COMMISSION - MARCH 29, 1989 MORRO BAY COMMUNITY CENTER STUDIO - 7:00 P.M. Mayor Sheetz called the meeting to order at 7:03 p.m. CITY COUNCIL PRESENT: Rose Marie Sheetz Mayor John Baker Councilmember John Lemons Councilmember Jeff Odell Councilmember Tom Wuriu Councilmember RECREATION & PARKS COMMISSION PRESENT: Cheryl Halterman Chairperson Charles Clarke Vice Chair Jim Hartzell Commissioner Geoff Moreland Commissioner B Rohan Commissioner ABSENT: Renee Cain Commissioner Sandra Young Commissioner STAFF: Gary Napper City Administrator Steve Wolter Rec. & Parks Dir. Elane Novak Deputy City Clerk El�L3t•Z�Z�)w1;L44 None HEARINGSA. PUBLIC .Ss Steve Wolter explained the Work Program Booklet is used to convey the anticipated needs and goals of the Recreation and Parks Department. This booklet is also a tool from which the depart- ment budget is developed. After the budget has been approved, it is easy to identify projects which have not been funded; the department can then re -budget the item or explore alternative funding sources. Discussion followed in which Mayor Sheetz and Councilmember Wuriu asked Mr. Wolter how many full-time staff members he has, and if he is adequately staffed for the PARTNERS Program. Mr. Wolter indicated he has eleven full-time staff members. He said at this time he is down about 4k part-time positions, one of those posi- MINUTES- MORRO RECREATION & PAGE 2 BAY CITY COUNCIL/ PARKS COMMISSION - MARCH 29, 1989 tion for the PARTNERS Program. However, Mr. Wolter indicated his budget does allow for adequate staff. Councilmember Lemons said he received a complaint regarding the pool tables in the Seniors portion of the building. Councilmem- ber Wuriu also asked how it was working with the Seniors and City staff in the same building. Mr. Wolter indicated there have been a few problems just because of the proximity; the Seniors and staff have to realize everything cannot be dropped to solve a problem for the Seniors. Mr. Wolter feels this is just a transi- tion period and everything will work out fine. The discussion then continued on the pool table problem. Both Recreation and Parks Commission and Council believe the tables are inadequate for the hours of use they get and the basic design is a problem (e.g., missized pockets). Council suggested the pool tables be returned and more professional tables be purchased with the City possibly paying a portion as a good -will gesture. Mayor Sheetz asked Mr. Wolter if the anchor on the Embarcadero is going to be painted? Mr. Wolter said it is. Councilmember Lemons asked who is responsible for emptying the trash from the barrels on City property where there is a bench and trash barrel? Mr. Wolter indicated there is a contract with Morro Bay Garbage and it is handled through the Public Works Department. In the brief discussion that followed, both Commis- sioners and Councilmembers relayed stories of seeing people who are moving or tourists empty their trash in these barrels. Mr. Napper suggested since it is budget time, the Commissioners might like to express their comments regarding Department needs and concerns. Chairperson Halterman said her top priority is to keep the Commu- nity Center in top repair. Vice -Chair Clarke concurred, and stated everyone has to be involved; Seniors, staff and citizens take pride in the building and want to keep it looking good. Councilmember Baker asked about the City's contract with outside custodial service? Mr. Wolter explained the City is short one full-time custodial person at this time; with the opening of the Community Center, this contract was let for cleaning of City office buildings to assist in the custodial workload of more square footage to maintain. Councilmember Odell questioned the City Park and Recreation Ele- ment of the General Plan which includes a section on the urban forest and tourist amenities. He wondered about the $25,000 allocated for this. Mr. Wolter explained this could be accom- plished in-house but would take staff away from other projects; these funds would be used to hire a consultant. Both Councilmem- MINUTES- MORRO RECREATION & PAGE 3 BAY CITY COUNCIL/ PARKS COMMISSION - MARCH 29, 1989 ber Odell and Mr. Wolter agreed grant monies may be received for the urban forest portion and maybe for some other projects. Councilmember Odell asked about State grant funds for a bike path from Highway 41 to Main Street. Mr. Wolter indicated there is funding; Mr. Napper said this item is agendized later in the meeting and reaffirmed there may be grant funding available. Mayor Sheetz expressed concern there is still no exterior light- ing at the Veterans Hall as she has requested for several years; it is a real safety hazard. Councilmember Baker expressed concern about the high cost of a video camera, a film projector, and portable screen. After dis- cussion, the general consensus was that for quality, industrial - type items, one has to pay a higher price. Mr. Napper reminded Council the "Workbook" has not been through the Budget Session yet. Mr. Wolter said although some of the items in the book may not receive funding, the book is a great tool for tracking items from year to year. Councilmember Wuriu questioned if the City uses a competitive process for printing expenditures? Mr. Wolter explained the Department bids literature and publication projects. REVIEW• �itai��•7yy�i:sil_�11;F9Jti1��41!_11311Z;I�al��'1;5�1�] ELECTRICCOMPANY Mr. Wolter reviewed this item stating bake paths are a high pri- ority item with the Recreation and Parks Commission. The commis- sioners expressed concern about children and adults riding on Main Street or the Highway. It is a real hazard not only to the cyclist but to automobile traffic which must dodge the cyclist. There is simply not enough room for parked cars, moving traffic and cyclists on North Main Street. Mr. Wolter indicated P.G.&E. is willing to work with the City in establishing a safer bike path and have already sent a letter to the City expressing their willingness to help. Mr. Wolter reviewed a probable bike path route through P.G.&E. property from Atascadero Road south to Main Street. Council and Commissioners were interested in seeing this bike path connected with the Centennial Bike Path. It was noted our existing bike path is not well marked and looks more like a side- walk for foot traffic which could be a problem when you have cyclists and people walking on the same path. Mayor Sheetz asked why establishing bike paths has taken so long; it has been at least five years since the subject first camp up. Mr. Wolter indicated there has not been a staff person to work full time on this project and it is difficult putting it together as it is very time consuming. MINUTES- MORRO BAY CITY COUNCIL/ RECREATION & PARKS COMMISSION - MARCH 29, 1989 PAGE 4 Councilmembers asked about possible funding from P.G.&E. Mr. Wolter said the City would be responsible for costs such as mov- ing the fence and building a bridge over the creek and wetlands habitat. Commissioner Hartzell indicated he walked the entire route and said it is fairly direct and not a real problem except for the bridge, which he estimated would have to be about 100 feet long. Mr. Napper requested Council and Commission provide staff with policy direction on this bike path proposal. MOTION: Councilmember Wuriu moved to pursue the proposed bike path route with P.G.&E. and move forward with this item. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) B. UNFINISHED BUSINESS None C. NEW BUSINESS C-1 POSSIBLE SCHOOL DISTRICT AGREEMENT FOR FACILITY USE Mr. Wolter stated this report was prepared as an informational item for City Council and Recreation and Parks Commission. it shows cost comparisons for use of school facilities from 1982 to the current date. The report also outlined a historical perspec- tive of deteriorating joint -use relationships with the School District, and the proffered but not accepted proposal by the City to develop a joint powers agreement for facility usage. Council asked if certain school facilities (pool) are still closed to the City during the school day. Mr. Wolter said they had been, but have now been re -opened during the school day for scheduled public use. With the change in school administration, it is hoped better relations can once again be re-established between the School District and the City. C-2 25TH ANNIVERSARY OF CITY Mr. Wolter reviewed plans for the 25th Anniversary Celebration. He said on the 13th of April dates will be finalized for all events concerning the celebration. Mr. Wolter noted over the next four years, the City will slowly reduce subsidy of the Harbor Festival (33% off of each of the next 2 years). These monies can be used to support some of the Anniversary events. MINUTES- MORRO RECREATION & PAGE 5 Councilmember of a year to the Rock. BAY CITY COUNCIL/ PARKS COMMISSION - MARCH 29, 1989 Lemons asked for a staff person for one month out put together a marathon run from Hearst Castle to After some discussion, Mr. Napper suggested Council allocate $1,300 of the $3,200 budget from FY 88-89 General Fund contingen- cies, and budget the balance ($1,900) in the FY 89-90 Budget under Local Promotions. MOTION: Councilmember Lemons moved the proposed conceptual bud- get be accepted. The motion was seconded by Coun- cilmember Baker and unanimously carried. (5-0) C-3 STATUS OF TIDELANDS PARK PROJECT Mr. Wolter said this report is presented to keep City Council abreast of what is happening in the City Parks system. He reviewed the status of the various park improvement projects now underway. Councilmember Odell asked how other cities are getting insurance for skateboard parks. It was noted the State of Virginia has a law which says you cannot sue for injuries at a recreational facility. The City of Santa Cruz has also worked out a solution, as well as a church in Los Osos. Commissioner Hartzell said the church has a blanket policy to cover any problems for recre- ational activities; apparently, this is through their home office and serves all of their churches. Councilmember Lemons suggested getting Senator Maddy to introduce this item at legislative level. Mayor Sheetz said she will be attending a League of California Cities meeting soon and will ask them to sponsor this kind of action. Questions were asked as to why the barbecues and trash containers in Del Mar Park are being replaced. Council also asked about soil replacement at the park. Mr. Wolter explained they are replacing trees and keeping -up what is now in Del Mar Park due to the inadequate soils; the barbecues and trash receptacles have corroded due to the harsh marine weather, and need to be replaced. Councilmember Odell said the sidewalk in Tidelands Park is a most sought after item. Mr. Wolter indicated while the Coastal Con- servancy had said they will fund certain items in the park, the amount they budgeted is not as much as the architects indicate will be required. Mr. Wolter believes additional monies will be received from the Coastal Conservancy for this portion of the project. MINUTES- MORRO RECREATION & PAGE 6 • BAY CITY COUNCIL/ PARKS COMMISSION - MARCH 29, 1989 Councilmember Lemons asked when Recreation is going to do another Murder Mystery? Mr. Wolter said he didn't know; perhaps in the fall or next spring, or possibly as part of the 25th Anniversary Celebration. Councilmember Lemons encouraged another one as soon as possible as they are a very popular event. None 20119, '�: None ADJOURNMENT MOTION: Councilmember Baker moved the meeting be adjourned. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) The meeting adjourned at 8:27 p.m. Recorded by: ELANE NOVAK Deputy City Clerk 0 0 City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. ADJOURNED REGULAR MEETING - MARCH 29, 1989 CITY HALL CONFERENCE ROOM - 5:30 P.M. 595 HARBOR ST., MORRO BAY, CA ROLL CALL PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so by standing. When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments should normally be limited to three minutes. E-1 GOVERNMENT CODE SECTION 54956.9(A); PENDING LITIGATION, KEYOTO-NATALIE V. CITY OF MORRO BAY COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - MARCH 29, 1989 CITY HALL CONFERENCE ROOM - 5:30 P.M. Mayor Sheetz called the meeting to order at 5:30 p.m. PRESENT: Rose Marie Sheetz John Baker John Lemons Jeff Odell Tom Wuriu ABSENT: None STAFF: Gary Napper Judy Skousen Bill Farrel Nick Nichols PUBLIC COMMENT None. E. CLOSED SESSION Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Community Develop. Dir. Public Works Director/ City Engineer MOTION: Councilmember Odell moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmem- ber Wuriu and unanimously carried. (5-0) Mayor Sheetz announced the meeting is adjourning to Closed Ses- sion in accordance with Government Code Section 54956.9(a), pend- ing litigation, in the matter of Keyoto-Natalie vs. City of Morro Bay . The meeting adjourned to Closed Session at 5:36 p.m. and returned to regular session at 6:52 p.m. F. ADJOURNMENT MOTION: Councilmember Wuriu moved the meeting be adjourned. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) The meeting adjourned at 6:52 p.m. Recorded GARY NAPPER GI Deputy City C City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay Is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING - MARCH 27, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so by standing. When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments should normally be limited to three minutes. DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the fol- lowing actions are approved without discussion. A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF MARCH 13, 1989 A-2 PROCLAMATION DECLARING APRIL 1989 "EARTHQUAKE PREPAREDNESS MONTH" A-3 RESOLUTION NO. 32-89 DECLARING WEEDS A PUBLIC NUISANCE AND FIRE HAZARD, AND AUTHORIZATION TO PROCEED WITH 1989 WEED ABATEMENT PROGRAM A-4 STATEMENT OF INVESTMENTS - FEBRUARY 1989 A-5 EXPENDITURE REPORT - FEBRUARY 1989 A-6 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (ROBERT B. COMBS) A-7 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (JOHN SYRELL) A-8 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (MICHAEL SPEER) A-9 PROCLAMATION DECLARING THE WEEK OF APRIL 4-9, 1989 AS "NATIONAL BUILD- ING SAFETY WEEK" B. UNFINISHED BUSINESS B-1 WATER ADVISORY BOARD RECOMMENDATIONS ON PRIORITY OF SUPPLEMENTAL WATER PROJECTS AND FUNDING ALTERNATIVES C. NEW BUSINESS C-1 REFUSE FRANCHISE BOARD RECOMMENDATION FOR CITY COUNCIL TO SUPPORT A NEGATIVE DECLARATION BY THE BOARD OF SUPERVISORS ON THE COLD CANYON LANDFILL EXPANSION PROJECT D-1 RESOLUTION NO. 35-89 APPROVING AMENDMENTS TO LOCAL COASTAL PROGRAM LAND USE PLAN MAP (LCP/ZOA 01-89) TO REZONE "PINEY WAY VILLAGE PROP- ERTY" FROM DUPLEX RESIDENTIAL (R-2) TO CENTRAL BUSINESS (C-1) DISTRICT (INITIATIVE MEASURE D, ORDINANCE NO. 341), AND INTRODUCTION/FIRST READING OF COMPANION ORDINANCE NO. 349 AMENDING ZONING ORDINANCE MAP D-2 CONTINUED PUBLIC HEARING ON ZONING AND LAND USE PLAN AMENDMENTS TO LOCAL COASTAL PROGRAM, PLANNING AREA 5 (CASE NO. LCP/ZOA 02-88; P.G.&E., DEN-DULK, AND CITY PROPERTIES), RESOLUTION NO. 33-89 ADOPTING AMENDMENTS TO THE MORRO BAY LOCAL COASTAL PROGRAM LAND USE PLAN TEXT AND MAP, AND INTRODUCTION/FIRST READING OF ORDINANCE NO. 348 AMENDING ZONING ORDINANCE MAP D-3 PUBLIC HEARING TO PROVIDE INFORMATION AND SOLICIT IDEAS FOR A POTENTIAL CITY APPLICATION FOR 1989 COMMUNITY DEVELOPMENT BLOCK GRANT MONIES D-4 APPEAL HEARING TO PLANNING COMMISSION APPROVAL OF CUP 03-89 TO ALLOW OUTDOOR SALES AND DISPLAYS AND TO MAKE A NONCONFORMING POLE SIGN CONFORMING AT 1560 MAIN STREET (DOHERTY, APPLICANT; BIRD, APPELLANT) D-5 RECONSIDERATION OF THE CITY'S 1989 WATER ALLOCATION PROGRAM AND STATUS REPORT ON WATER BASIN LEVEL AND RAINFALL DATA D-6 CONTINUED APPEAL HEARING ON PLANNING COMMISSION DENIAL (RESOLUTION NO. 92-88) TO RE -ISSUE WATER EQUIVALENCIES TO THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION (FSLIC) FOR COMPLETION OF BAYSHORE VILLAGE CONDOMINIUM PROJECT (FEDERAL ASSET DISPOSITION ASSOCIATION, AGENT; 188 BAYSHORE DRIVE, 48 UNITS) CONTINUE TO NEXT MEETING D-7 REQUEST BY MORRO DEVELOPMENT COMPANY FOR CITY ABANDONMENT OF UNIM- PROVED ROAD EASEMENT ON DEN-DULK PROPERTY (COLEMAN PARK/P.G.&E. AREA) AND RESOLUTION NO. 36-89 DENYING REQUEST E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.9(C); CONSIDERATION OF POSSIBLE CITY - INITIATED LITIGATION E-2 GOVERNMENT CODE SECTION 54956.9(A); PENDING LITIGATION, DONALD PIERCE V. CITY OF MORRO BAY, WCAB NO. 84 SBA 42730 F. ADJOURNMENT COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 27, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. :`%]iPiiifil PRESENT: Rose Marie John Baker John Lemons Jeff Odell Tom Wuriu Sheetz Mayor Councilmember Councilmember Councilmember Councilmember ABSENT: None STAFF: Gary Napper Judy Skousen Louise Burt Ardith Davis Bill Farrel Forrest Henderson Nick Nichols City Administrator City Attorney Finance Director City Clerk Community Develop. Dir. Asst. City Admin. Public Works Dir. Horace Strong gave the invocation, and led the Pledge of Allegiance. PUBLIC COMMENT 1. Robert Enns, George Brett, Charles Palmer, and Joseph Stennen requested they be allowed to speak on Item B-1; Mayor Sheetz stated she would allow public comment. 2. Howard Gaines, 441 Orcas, commented on the Sun -Bulletin article concerning the South T-Pier Fire and allegations of City lack of insurance. He said when he was in the insurance business he took information to add or cancel insurance from clients over the telephone; it was normal practice. He stated the Council has a duty to protect the public's assets, to obtain the $2k million coverage back, and own up to negligence. 3. Charles Palmer, 485 Estero, discussed a Sun -Bulletin article regarding the community's reduction of water consumption and the City's decrease in revenue as a result. He said the Council has done nothing to prepare to begin saving for future water projects, and said they should have begun saving years ago. He said it appears Council does not want new water projects, and that is a shame. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 27, 1989 PAGE 2 DECLARATION OF FUTURE AGENDA ITEMS None. A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF MARCH 13, 1989 Mr. Napper recommended Council approve the minutes as submitted. A-2 PROCLAMATION DECLARING APRIL 1989 "EARTHQUAKE PREPAREDNESS MONTH„ Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-3 RESOLUTION NO. 32-89 DECLARING WEEDS A PUBLIC NUISANCE AND FIRE HAZARD, AND AUTHORIZATION TO PROCEED WITH 1989 WEED ABATEMENT PROGRAM Mr. Napper recommended Council adopt Resolution No. 32-89. A-4 STATEMENT OF INVESTMENTS - FEBRUARY 1989 Mr. Napper recommended Council receive the report for file. A-5 EXPENDITURE REPORT - FEBRUARY 1989 Mr. Napper recommended Council approved the Report as submitted. A-6 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (ROBERT B. COMBS) Mr. Napper recommended Council deny the claim, and authorize the City Clerk to sign and mail the rejection letter. A-7 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (JOHN SYRELL) Mr. Napper recommended Council deny the claim, and authorize the City Clerk to sign and mail the rejection letter. A-8 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (MICHAEL SPEER) Mr. Napper recommended Council deny the claim, and authorize the City Clerk to sign and mail the rejection letter. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 27, 1989 PAGE 3 A-9 PROCLAMATION DECLARING THE WEEK OF APRIL 4-9. 1989 AS "NATIONAL BUILDING SAFETY WEEK" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. Councilmember Odell stated he wished to abstain from approval of the minutes as he was absent from the last meeting; Mayor Sheetz stated she also wished to discuss the minutes. Councilmember Wuriu requested Item A-3 be pulled for separate discussion. MOTION: Councilmember Lemons moved for approval of the Consent Calendar with the exception of Items A-1 and A-3. The motion was seconded by Councilmember Baker and unani- mously carried. (5-0) A-3 RESOLUTION NO, 32-89 DECLARING WEEDS A PUBLIC NUISANCE AND FIRE HAZARD, AND AUTHORIZATION TO PROCEED WITH 1989 WEED ABATEMENT PROGRAM Councilmember Wuriu asked if there is a way to deal with the weed abatement problem on a permanent basis, rather than bringing the item to Council annually? Mr. Napper explained the process es- tablished by Municipal Code and State law which requires notifi- cation of property owners and Council action on appeals. A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF MARCH 13, 1989 Mayor Sheetz referred to Council discussion under Item D-3 at the last meeting regarding water conservation measures; she recalled Council decided to allow residents to plant lawns, but the min- utes reflect a different Council action. Mr. Napper stated the Water Advisory Board had recommended allow- ing an exemption from gutter run-off only for newly -planted land- scaping in the Moderately -Restricted level of water conservation; however, Council decided the irrigation schedule in Severely - Restricted Water Conditions should also apply in the Moderately - Restricted Conditions. That change still allowed new landscaping to be installed, but provided the same watering schedule as for residents, namely twice per week. Councilmember Lemons stated he remembers Council action as the minutes reflect it. MOTION: Mayor Sheetz moved for approval of Items A-1 and A-3 of the Consent Calendar. The motion was seconded by Coun- cilmember Lemons and carried with Councilmember Odell abstaining as to approval of the minutes. (4-0-1) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 27, 1989 PAGE 4 B. UNFINISHED BUSINESS B-1 WATER ADVISORY BOARD RECOMMENDATIONS ON PRIORITY OF SUPPLE- MENTAL WATER PROJECTS AND FUNDING ALTERNATIVES Mr. Nichols stated Council referred the issue of priority of water projects to the Water Advisory Board for recommendations. The Board unanimously recommends Council concentrate efforts and funding on Phase I of the Coastal Streams Diversion and Storage Project, a Water Treatment Plant, Phase II of the Coastal Streams Diversion and Storage Project including the San Bernardo Creek Dam, and the State Water Project. Staff has discussed Phase I and II of the Coastal Streams project with nearby agencies and has received positive response as to their interest and partici- pation in the projects. Mr. Nichols reviewed the costs of these projects in detail; it is estimated $1.8 million will be needed in new water revenue in the next five years. While funding was discussed by the Water Advi- sory Board, they have not concluded that discussion and will make recommendations to Council at a later date. Council asked various questions to which Mr. Nichols responded. Mayor Sheetz opened the item for public comments. George Brett, a member of the Board of Directors of the Morro Rock Mutual Water Co. in Cayucos, stated they support the pro- jects as recommended by the Water Advisory Board. They have filed a letter of interest with the City of San Luis Obispo re- questing 200 acre feet of water from the projects. Councilmember Lemons asked if the Water Co. is interested in contributing "up- front" monies to the project? Mr. Brett stated yes. Robert Lyon, Paso Robles Beach Water Assoc. of Cayucos, agreed with Mr. Brett and stated they would support the projects any way they can. Robert Enns, builder, spoke in favor of all items recommended by the Water Advisory Board. He understands if the projects are constructed, it will increase the average water/sewer bill to ap- proximately $20 to $30 per month; he owns property in Santa Barbara and the water bill averages $75 per month at its lowest, and $120 at its highest. He said he is willing to pay the in- creased water bill. He also owns property in Cayucos and Cayucos needs to be told how they can participate in these projects; the future of water for Cayucos is in Morro Bay's hands. Charles Palmer said Mr. Nichols' projections for needed water are greater than the City needs; if the City manages its water prop- erly, it will not need the State Water Project. If the City de- velops too much water too fast, it will encourage a building boom to pay for it. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 27, 1989 PAGE 5 Bruce Risley, President of Civic Action League, supports the ac- tion recommended by staff. He also said a large number of people in Morro Bay would be seriously affected by a $30 per month water bill. He cautioned Council to support the people in Morro Bay and said they should not bear the costs for people who do not live here now. He believed the City could do more than they are doing in furthering cooperation with the City of San Luis Obispo. Howard Gaines asked how the costs for these projects are going to be funded? He believed the people have a right to vote on a $407,030 assessment for the State Water Project. Mayor Sheetz stated that item will be considered at a later date; Council is considering the projects to pursue at this time. Mayor Sheetz closed the item to the public. Councilmember Odell asked if there are any Memoranda of Under- standing between interested agencies and the City? Mr. Nichols said the only agreement is the one between the City and the Whale Rock Commission for the environmental phase of the Stream Diver- sion Project. Other agreements are in the discussion stage. Mr. Napper stated it would be difficult to advise interested agencies of the ramifications and full costs of the projects until the EIR and feasibility studies are complete. Councilmember Lemons asked when Phase I could begin construction if progress proceeds normally? Mr. Nichols said approximately 2' to 3 years. Councilmember Wuriu asked what the City's short-term alternative is for new water is if the Whale Rock Commission decides not to enter into an agreement regarding the Coastal Streams Project? Mr. Nichols said desalinization, which is extremely expensive as is wastewater reclamation. Mayor Sheetz said it is not correct to say the Council is doing less than it can; she pointed to past and present Council progress on water issues and said Morro Bay is doing considerably more than other communities in the same situation. She did not, however, believe raising water rates is the way to "create" more water. MOTION: Councilmember Wuriu moved Council endorse the concept of moving toward a water solution as advanced by the Water Advisory Board. The motion was seconded by Coun- cilmember Baker. Councilmember Lemons suggested an amendment to the motion that the recommended projects not be in any specific priority; the first project available should be the priority. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 27, 1989 PAGE 6 Councilmember Wuriu amended his motion that Council en- dorse the water solution concepts advanced by the Water Advisory Board with no prioritization of projects. The amendment was accepted by Councilmember Baker and the motion was carried unanimously. (5-0) Mayor Sheetz noted the item is referred back to the Water Advisory Board for recommendations regarding funding for the projects. Councilmember Lemons requested staff research the appropriate provisions of State law to determine if an assessment district can be used for one of these projects. He also asked about County -wide discussions on increasing the sales tax. Mr. Napper briefed Council on discussions to raise the sales tax to 7%; it is possible some of the increase could go towards paying for each agencies' share of the State Water Project. C. NEW BUSINESS C-1 REFUSE FRANCHISE BOARD RECOMMENDATION FOR CITY COUNCIL TO SUPPORT A NEGATIVE DECLARATION BY THE BOARD OF SUPERVISORS ON THE COLD CANYON LANDFILL EXPANSION PROJECT Mayor Sheetz stated this item will be considered at the end of the agenda because of Council's policy to consider public hear- ings at approximately 7:00 p.m. D. PUBLIC HEARINGS. REPORTS & APPEARANCES • `--•- -•' �• ...• _ski;`wl�iil�]wl_�12Y_�yl�L•�rC•Z•]:Z��l�):�V;�_ Mr. Napper stated the six -week public review period on this item has concluded with no written communications. It is proper for Council to hold a public hearing this evening to receive com- ments, adopt the Land Use Plan Map amendment by Resolution No. 35-89, and approve first reading of Ordinance No. 349 which amends the City's zoning ordinance map. This voter's initiative will then be forwarded to the Coastal Commission for their accep- tance and certification. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 27, 1989 PAGE 7 MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 35-89. The motion was seconded by Councilmem- ber Baker and unanimously carried. (5-0) MOTION: Councilmember Baker moved Ordinance No. 349 be read by title and number only. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) Mr. Napper read Ordinance No. 349 by title and number. MOTION: Councilmember Wuriu moved for approval of the first reading of Ordinance No. 349. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) D-2 CONTINUED PUBLIC HEARING ON ZONING AND LAND USE PLAN AMEND- MENTS TO LOCAL COASTAL PROGRAM, PLANNING AREA 5 (CASE NO. LCP/ZOA 02-88: P.G.&E.. DEN-DULK, AND CITY PROPERTIES). RES- OLUTION NO. 33-89 ADOPTING AMENDMENTS TO THE MORRO BAY LOCAL COASTAL PROGRAM LAND USE PLAN TEXT AND MAP. AND INTRODUC- TION/FIRST READING OF ORDINANCE NO. 348 AMENDING ZONING ORDINANCE MAP Mr. Napper stated this item is similar in process to Item D-1; the six -week public review period has concluded with no written comments. It will be forwarded to the Coastal Commission for consideration and certification after Council adopts the enabling legislation. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. MOTION: Councilmember Wuriu moved for the adoption of Resolu- tion No. 33-89. The motion was seconded by Councilmem- ber Lemons and unanimously carried. (5-0) MOTION: Councilmember Wuriu moved Ordinance No. 348 be read by title and number only. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) Mr. Napper read Ordinance No. 348 by title and number. MOTION: Councilmember Baker moved for approval of the first reading of Ordinance No. 348. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) D-3 PUBLIC HEARING TO PROVIDE INFORMATION AND SOLICIT IDEAS FOR A POTENTIAL CITY APPLICATION FOR 1989 COMMUNITY DEVELOPMENT BLOCK GRANT MONIES Councilmember Odell stepped down from consideration on this item due to a possible conflict of interest. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 27, 1989 PAGE 8 Mr. Farrel reviewed the City's past successes in applying for grants under the CDBG program. Last year, the City narrowly missed funding for a housing rehabilitation program, and it is intended People's Self -Help Housing Corp. will update and resub- mit last year's application for this year's program. Mr. Farrel also reviewed the objectives of the program and how eligible pro- jects are determined. Mayor Sheetz opened the hearing to the public for comments. Michael Montgomery, representing PSHHC, encouraged Council to apply for the housing rehabilitation loan program, phase two. Councilmember Wuriu commented he has viewed some of the housing rehabilitation projects completed by PSHHC, and they are very impressive. MOTION: Councilmember Wuriu moved Council instruct staff to prepare a 1989 application for CDBG monies for Phase II of a Housing Rehabilitation Program. The motion was seconded by Mayor Sheetz and carried with Councilmember Odell abstaining. (4-0-1) Councilmember Odell returned to his seat. - MacNeil lm- Mr. Farrel reviewed the application by Ms. Doherty for a condi- tional use permit to allow outdoor sales and displays and to make a non -conforming pole sign conforming for property located at 1560 Main Street. The application was approved by the Planning Commission, and appealed by Lester Bird. Mr. Bird's appeal is directed to the City's lack of consistent enforcement of Munici- pal Code Section 14.44.020 requiring installation of curbs, gut- ters, sidewalks and streets. Mr. Farrel explained the require- ments for curbs, gutters and sidewalks apply to new construction and subdivisions. He recommended Council uphold the Planning Commission decision and deny the appeal. Mr. Farrel noted the City Attorney has requested the proposed Resolution be revised to incorporate additional findings; staff can return with that Reso- lution at the next meeting. Mayor Sheetz opened the hearing to the public for comments. Lester Bird, 1655 Hillcrest and appellant, stated he is inter- ested in consistency. Mr. Bird has lived in Morro Bay for 15 years, and he detailed his attempts at improving property he pur- chased, always with the requirement for curbs, gutters and side- walks. He said Ms. Doherty out -bid him for this lease because he MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 27, 1989 PAGE 9 included curbs, gutters, and sidewalks in his bid and she did not; now this site will go without curbs, gutters and sidewalks for seven years which is the length of her lease. He requested the Planning Commission be given absolute direction on how to administer the requirement for curbs, gutters, and sidewalks. Nancy Doherty said Mr. Bird's attitude is punitive; she does not believe installation of curbs, gutters, and sidewalks is her responsibility. Mr. Bird maintained curbs, gutters and sidewalks are necessary in the North Main Street area to make it safer and cleaner. Mayor Sheetz closed the hearing to the public. Councilmember Lemons asked about the Street & Highways Code pro- vision allowing Council to require installation of curbs, gutters and streets after a certain percentage of the block has been improved? Mr. Nichols stated the street is approximately 140 feet short of being 50% improved; the City is unable to require improvements until at least 50% of the street has curbs, gutters and sidewalks. Councilmember Wuriu agreed these improvements are necessary in North Main Street, and questioned how the ordinance can be improved to make the requirement tighter? Mr. Farrel stated if Council required the expensive improvements on leased property where minor use permit changes are needed, most potential busi- ness people will walk away from the building and it will remain vacant. Mayor Sheetz said there is a difference between ownership of and leasing a building. If no major construction changes and improvements are taking place and an individual is leasing a building, she does not believe one should be burdened with these costs. Councilmember Wuriu requested staff review the ordinance to see if it can be tightened up some way. Mayor Sheetz sug- gested a dollar value to the improvements could be the determin- ing factor. MOTION: Mayor Sheetz moved Council uphold the Planning Commis- sion's decision, staff return at the next meeting with a revised Resolution citing additional findings, and staff be directed to develop new criteria on the requirement for streets, curbs and gutters. The motion was seconded by Councilmember Odell. Councilmember Lemons suggested Council not take action on the ap- peal this evening, but wait until a revised ordinance is prepared regarding the curbs, gutters and sidewalks. Ms. Skousen stated any ordinance changes would not apply to this application since it was processed before an ordinance change would be effective. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 27, 1989 PAGE 10 The motion failed on the following roll call vote: AYES: Odell, Sheetz NOES: Baker, Lemons, Wuriu MOTION: Councilmember Lemons moved for approval of the denial of the appeal. Councilmember Lemons explained his motion did not include the requirement for ordinance changes. MOTION: Mayor Sheetz moved Council uphold the Planning Commis- sion's decision and deny the appeal. The motion was seconded by Councilmember Wuriu and carried on the fol- lowing roll call vote: AYES: Lemons, Odell, Wuriu, Sheetz NOES: Baker Mayor Sheetz asked staff to research the ordinance for possible amendments to ensure future improvements along Main Street. D-5 RECONSIDERATION OF THE CITY'S 1989 WATER ALLOCATION PROGRAM AND STATUS REPORT ON WATER BASIN LEVEL AND RAINFALL DATA Mr. Napper noted Item D-6 is recommended for continuance, and Item D-7 has been requested to be pulled by the applicant. Mr. Farrel reviewed Council's actions to date to award water allocations for 1989. He recommended postponing further alloca- tions until the current dry cycle ends and rainfall returns to average levels. Mr. Nichols gave a detailed report on the City's current water situation. He believed water demand will be less this year because of full-time mandatory water conservation; however, there will be another year of high competition for water from the agri- cultural users. Also, he anticipates less groundwater because of decreased rainfall, and water quality degradation to occur as well levels decline. Mr. Nichols also reviewed current well -pro- duction, rainfall, and well levels and water quality. Mayor Sheetz opened the hearing to the public for comments. Charles Palmer discussed his studies of the Chorro Basin. John Heimel and Ed Ewing encouraged Council to allocate the sec- ond quarter building permits. Howard Gaines asked what happens if the city runs out of water altogether and homes are not lived in because of it? MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 27, 1989 PAGE 11 Nelson Sullivan stated the pipeline replacement program is a fraud which he does not believe saves water. He encouraged Coun- cil to study the report he and Randy Ruff prepared regarding this subject; it is on file in the Library. Councilmember Odell said the City should give every bit of this year's water out. If it is allocated out in small amounts it will give the people a false sense of security. He suggested a condition be added to require all new construction to install 1.5 gallon flush toilets. He said Council could allow people to build their house now in exchange for not giving out any water to any project regardless of their phase. Councilmember Lemons questioned if it is cost effective to test water quality every three months when the requirement is every three years? Mr. Nichols stated he believes it is necessary to keep on top of any changes that may occur. Councilmember Lemons asked how much rainfall is received in the upper reaches of the Chorro Basin? Mr. Nichols stated he does not have those figures but can obtain them from the County. Councilmember Lemons believes the water that falls in that area does more to re -charge the basins. He also stated he does not believe the pipeline replacement program is a fraud. Councilmember Wuriu stated although the City has not had a good year for rainfall so far, the year is not over and he felt more rains will come in April. He believed delaying allocations for the rest of the year would be a mistake based on the incomplete results as far as annual rainfall is concerned. Councilmember Baker stated he is sure if there are leaky pipes in the City, tremendous amounts of water are being lost through them; he believes water is saved through the pipeline replacement program. Councilmember Baker agrees with Mr. Ewing if Council allocates permits now, the houses will not be occupied until after summer. Mayor Sheetz said she does not have as much confidence in the pipeline replacement program as she does in the retrofit program. She is in favor of waiting to see if there will be additional rainfall before allocating more water for building. MOTION: Councilmember Lemons moved the matter of issuing addi- tional permits be tabled until the first Council meet- ing after June 1st. The motion was carried with Councilmember Odell voting no. (4-1) 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 27, 1989 PAGE 12 Sig Mr. Napper stated the prospective developer is finalizing his responses to the conditions proposed by staff; no written submit- tals have been received, and it is recommended this item be con- tinued to the meeting of April loth. Mayor Sheetz opened the hearing for comments from the public. Hilda Heifetz, Main Street, requested Council instruct staff to bring back information on the negotiations so the public can be kept up to date. They want to know the details of the negotia- tions and have been kept completely deprived of information. She said it is bad faith by the City to withhold information from the public. Ms. Heifetz requested the files be open to the public and Council instruct staff accordingly. She would like to know some of the reasons for the delay, and if the City Attorney has changed her mind from her original interpretation the water rights have run out and permits expired. Bruce Risley stated in view of the shortage of water in Morro Bay it is not a good idea to renew expired water equivalencies. Mayor Sheetz returned the item to Council. Ms. Skousen said the process makes confidentiality important because both parties need to remain flexible so negotiations can proceed. If settlement discussions are disclosed before a set- tlement is reached, it could jeopardize the give-and-take of negotiations. The City is trying to obtain as much as possible in the interests of the public. This item could end in a law- suit; it is important to retain confidentiality until an impasse or full settlement is reached at which time Council can discuss the settlement in public and accept or reject it. Mr. Napper added staff cannot bind the City Council on any of these matters; all conditions will be brought publicly to Council for their approval. MOTION: Councilmember Lemons moved this item be continued to the April loth meeting. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) In relation to Item D-5 regarding the water allocation program, Councilmember Lemons suggested staff prepare an ordinance along the lines suggested by Councilmember Odell requiring 1k gallon flush toilets in all new construction. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 27, 1989 PAGE 13 MOTION: Councilmember Lemons moved staff be directed to prepare an ordinance to require lk gallon flush toilets in new construction. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) Mr. Napper stated the applicant's attorney in this matter requests the item be pulled and continued to the April 24th meet- ing of the Council. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the item was returned to Council. MOTION: Councilmember Baker moved this item be continued to the April 24th meeting of the Council. The motion was sec- onded by Councilmember Odell and unanimously carried. (5-0) Councilmember Odell stepped down from consideration of this item due to a possible conflict of interest. Mr. Nichols stated discussion regarding Cold Canyon Landfill (CCL) expansion has been in progress since 1985; it concerns Morro Bay because this City's wastes are now transported to Cold Canyon since the closure of Los Osos Landfill. The increased tonnage from coastal communities has shortened the life of CCL to 1992; the proposed expansion will add 15-18 years of additional capacity. The County Environmental Coordinator has recommended the issuance of a Negative Declaration on the expansion project, and that decision has been appealed. The landfill owners have requested the City of Morro Bay support their efforts to extend the current site; the Refuse Franchise Board recommends Council support the expansion project and issuance of Negative Declaration, and staff endorses that recommendation. Councilmember Lemons stated the County Solid Waste Management Commission is concerned there might be a need for further study of some of the items on the Initial Study, and have forwarded this concern to the Board of Supervisors. Mr. Nichols stated he received today a copy of an addendum to the Initial Study in which the landfill owners are addressing some of the concerns. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 27, 1989 PAGE 14 Councilmember Baker asked if there is a possibility of contami- nating ground water by expanding the present site? Tom Martin, Controller of the Cold Canyon Landfill, said tests have been the same since 1974. He also reviewed the extensive layers of fill (12' of materials) that are set into the ground before dumping is commenced. Randy Ruff stated it is inappropriate for Council to support a Negative Declaration on this project; Council is not in a posi- tion of being informed on this subject, and all CEQA requirements should be honored. MOTION: Councilmember Lemons moved Council strongly support the timely expansion of the Cold Canyon Landfill. The motion was seconded by Councilmember Baker and unani- mously carried. (5-0) Councilmember Odell returned to his seat. E. CLOSED SESSION MOTION: Councilmember Odell moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmem- ber Wuriu and unanimously carried. (5-0) Mayor Sheetz announced Council is adjourning to Closed Session to discuss possible City -initiated litigation in accordance with Government Code Section 54956.9(c), and pending litigation in accordance with Government Code Section 54956.9(a) regarding Donald Pierce v. City of Morro Bay, and Keyoto-Natalie v. City of Morro Bay. Mayor Sheetz stated upon returned to regular session Council may continue the Closed Session items to Wednesday, March 29th, afternoon/evening. The meeting adjourned to Closed Session at 9:49 p.m. and returned to regular session at 10:28 p.m. F. MOTION: Mayor Sheetz moved the meeting adjourn to Wednesday, March 29, 1989 at 5:30 p.m. in the City Hall Conference Room to consider pending litigation in accordance with Government Code Section 54956.9(a) regarding Keyoto- Natalie v. City of Morro Bay. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) The meeting adjourned at 10:28 p.m. Recorded by: ARDITH DAVIS City Clerk YyWe - /- q City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING - MARCH 13, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE CERTIFICATES OF APPRECIATION TO FORMER ADVISORY BOARD MEMBERS PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section D) may do so by standing. When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments should normally be limited to three minutes. DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the fol- lowing actions are approved without discussion. A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF FEBRUARY 27, 1989 A-2 PROCLAMATION DECLARING MARCH 1989 AS "NATIONAL NUTRITION MONTH" A-3 REJECTION OF LIABILITY CLAIMS AGAINST THE CITY (HENRY H. PEDERSON) A-4 REJECTION OF LIABILITY CLAIMS AGAINST THE CITY (MICKIE KING) A-5 REJECTION OF LIABILITY CLAIMS AGAINST THE CITY (PEDERSON/BROWN) A-6 ACCEPTANCE OF RESIGNATION FROM AD -HOC TRANSIT COMMITTEE (VICKI LANDIS) A-7 PROCLAMATION DECLARING APRIL 2-8, 1989 AS "MORRO BAY COMMUNITY CLEAN- UP WEEK", AND AUTHORIZING ANNUAL SPRING CLEAN-UP CAMPAIGN A-8 SET HEARING DATE (MARCH 27) FOR APPEAL OF PLANNING COMMISSION APPROVAL OF CUP 47-88 TO ALLOW OUTDOOR SALES AND DISPLAYS AND TO MAKE A NONCON- FORMING POLE SIGN CONFORMING AT 1560 MAIN STREET (DOHERTY, APPLICANT; BIRD, APPELLANT) 1 C� • A-9 RESOLUTION NO. 30-89 APPROVING A WORKERS' COMPENSATION COMPROMISE AND RELEASE SETTLEMENT, AND RESOLUTION NO. 31-89 DETERMINING INDUSTRIAL DISABILITY RETIREMENT FOR POLICE SERGEANT JOHN M. MALMQUIST A-10 ESTABLISH MEETING DATE AND AGENDA FOR JOINT MEETING WITH RECREATION AND PARKS COMMISSION A-11 RESOLUTION NO. 27-89 ACCEPTING TITLE TO REAL PROPERTY IN THE 400 BLOCK OF ELENA STREET (2.02 ACRES; APN 68-301-11) FOR THE PEOPLE'S SELF HELP SENIOR HOUSING PROJECT (40 UNITS) A-12 ACCEPTANCE OF RESIGNATION FROM STREET ADVISORY COMMITTEE (TOM DOUGHERTY) A-13 ACCEPTANCE OF RESIGNATION FROM HARBOR ADVISORY BOARD (JOHN ROFFINELLA) B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 345 ESTABLISHING A VEHICLE WEIGHT LIMIT (5-TONS) ON IRONWOOD AVENUE BETWEEN HIGHWAY 41 AND AVALON STREET (SECOND READING/ ADOPTION) B-2 ORDINANCE NO. 346 AMENDING WEED ABATEMENT MUNICIPAL CODE TO FURTHER DEFINE HAZARDOUS VEGETATION AND TO CLARIFY ABATEMENT AND NOTIFICATION PROCEDURES (SECOND READING/ADOPTION) C. NEW BUSINESS C-1 APPROVAL OF INTERTIE AGREEMENT WITH THE WHALE ROCK COMMISSION FOR THE CONSTRUCTION AND MAINTENANCE OF A WATER SERVICE CONNECTION FOR THE EMERGENCY EXCHANGE OF WATER SUPPLIES C-2 RESOLUTION NO. 28-89 APPROVING HARBOR ADVISORY BOARD RECOMMENDATION AMENDING REGULATIONS AND PERMITTED USES IN HARBOR TEMPORARY ANCHORAGE AREA Al-5 C-3 STREET ADVISORY COMMITTEE RECOMMENDATION FOR STREET MAINTENANCE PRO- JECT USING MID -YEAR BUDGET MONIES (HARBOR STREET OVERLAY, MORRO BAY BLVD. TO MAIN STREET) C-4 STREET ADVISORY COMMITTEE RECOMMENDATION FOR EXTENSION OF BUS PASSEN- GER LOADING AREA ON HARBOR STREET ADJACENT TO MORRO BAY "CITY" PARK PULLED FROM AGENDA C-5 COUNCIL DISCUSSION OF AGENDA PREPARATION PROCEDURES AND MEETING DATES D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 CONTINUED APPEAL HEARING ON PLANNING COMMISSION DENIAL (RESOLUTION NO. 92-88) TO RE -ISSUE WATER EQUIVALENCIES TO THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION (FSLIC) FOR COMPLETION OF BAYSHORE VILLAGE CON- DOMINIUM PROJECT (FEDERAL ASSET DISPOSITION ASSOCIATION, AGENT; 188 BAYSHORE DRIVE, 48 UNITS) CONTINUE TO NEXT MEETING 2 D-2 CONTINUED PUBLIC HEARING ON ZONING AND LAND USE PLAN AMENDMENTS TO LOCAL COASTAL PROGRAM, PLANNING AREA 5 (CASE NO. LUP/ZOA 02-88; P.G.&E., DEN—DULK, AND CITY PROPERTIES) D-3 URGENCY ORDINANCE NO. 347 ESTABLISHING VARIOUS LEVELS OF MANDATORY WATER CONSERVATION MEASURES AND IMPLEMENTATION PROCEDURES, AND RESCINDING URGENCY ORDINANCE NO. 336; AND, RESOLUTION NO. 29-89 MAKING FINDINGS OF THE EXISTENCE OF A MODERATELY —RESTRICTED WATER SUPPLY CONDITION AND ENACTING ASSOCIATED WATER CONSERVATION MEASURES E-1 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY NEGOTIATIONS; LEASE SITE 93/95W, JIM GEORGE �sT_03011IN IwtolzF_V COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RE— LATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. 3 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 13, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. F.reilpzw-w PRESENT: Rose Marie Sheetz John Baker John Lemons Tom Wuriu ABSENT: Jeff Odell STAFF: Gary Napper Judy Skousen Alan Davis Ardith Davis Forrest Henderson Nick Nichols Steve Wolter Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Harbor Director City Clerk Asst. City Admin. Public Works Dir. Recreation & Parks Dir. Father O'Connell of the Cayucos Catholic Church gave the invoca- tion, and Horace Strong led the Pledge of Allegiance. Mayor Sheetz presented Certificates of Appreciation to former advisory board members. Those present to receive their certifi- cate were Horace Strong for his services to the community in leading the Pledge of Allegiance at Council meetings and substi- tuting for the Ministerial Association in the invocation; Don Carey for the Ministerial Association; Bert Griffin and Bob Meyers for serving on the Recreation & Parks Commission; Tom Wuriu for the Water Advisory Board; Nancy Castle, Jim Hartzell, Ed Smith, and Geoff Moreland for the Community Center Citizens Advisory Committee; Margaret Foster for the Community Center Cit- izens Advisory Committee and the Local Arts Grant Review Commit- tee; Imogene Haidet and Jim Rodgers for the Community Center Cit- izens Advisory Committee and the Senior Housing Committee; and John Baker for the Fire Services Funding Committee. Mayor Sheetz announced those not in attendance will also receive Certificates. They are: Charles Reasor for the Planning Commis- sion and the Community Center Citizens Advisory Committee; Paula Daillak for the Recreation & Parks Commission and the Local Arts Grant Review Committee; William Blue and Rae Crill for the Harbor Advisory Board; Joseph Kramer for the Refuse Franchise Board; Ann Udell for the Community Promotion Committee and the Senior Hous- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 13, 1989 PAGE 2 ing Committee; Barbara Askins, Eugene Shelton, Devon Thor, Sally Truelson for the Community Center Citizens Advisory Committee; Cheryl Halterman and Luba Staller for the Local Arts Grant Review Committee; and Al Paul and Reverend Charles Erickson for the Senior Housing Committee. Mayor Sheetz expressed appreciation to all for the donation of their time and talents to the community. 1. Leland Ramsey, 1000 Mill Street, San Luis Obispo, stated he is an attorney representing Mr. and Mrs. George on Lease Site 93-95W. He discussed the funds Mr. George has invested in the project, and noted Mr. George took what was once an eyesore on the Embarcadero and turned it into a beneficial project for the City. He said Mr. George has assets listed for sale which should cover the balance in arrears as well as the upcoming July 1989 lease payment. He requested Council postpone action against Mr. George for late payments until staff, the City Attorney, and he have a chance to review his proposal. This item was scheduled for Closed Session; Council made no com- ments at this time. None. A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF FEBRUARY 27 1989 Mr. Napper recommended Council approve the minutes as submitted. A-2 PROCLAMATION DECLARING MARCH 1989 AS "NATIONAL NUTRITION MONTH" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. Mr. Napper recommended Council deny the two liability claims against the City filed by Henry H. Pederson, and authorize the City Clerk to sign and mail the rejection letters. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 13, 1989 PAGE 3 A-4 REJECTION OF LIABILITY CLAIMS AGAINST THE CITY (MICKIE KING) Mr. Napper recommended Council deny the liability claim against the City by Mickie King, and authorize the City Clerk to sign and mail the rejection letter. A-5 REJECTION OF LIABILITY (PEDERSON/BROWN) Mr. Napper recommended Council deny the liability claim against the City by Christie Ann Brown and Henry H. Pederson, and autho- rize the City Clerk to sign and mail the rejection letter. ACCEPTANCE OF RESIGNATION SRO ;• OC TRANSIT COMMITTEE Mr. Napper recommended Council accept the resignation of Vicki Landis from the Transit Ad -Hoc Committee, and instruct staff to advertise the advisory vacancy. COMMUNITY CLEAN-UP WEEK", ANn AUTHORIZING ANNUAL SPRING NCAMPAIGN Mr. Napper recommended Council approve the Community Clean -Up Week activities as submitted, and authorize the Mayor to sign the Proclamation. Mr. Napper recommended Council set the appeal hearing for 27 March 1989, and instruct staff to prepare the appropriate reports and public notices. - •_ • • • •• .•' •y •� •y_ ,•v - •\• - - - \ • • �� --� _' :_N_ •:\ a -v v� ----- - - - -- - Mr. Napper recommended Council adopt Resolutions No. 30-89 and 31-89. �- a •\ :_\• :_�_+_ _� I: _ ; _ _ ___ Mr. Napper recommended Council set 29 March 1989, 7PM in the Com- munity Center Studio as the date and time for a joint meeting with the Recreation and Parks Commission, and accept the proposed agenda as submitted. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 13, 1989 PAGE 4 A-11 RESOLUTION NO. 27-89 ACCEPTING TITLE TO REAL PROPERTY IN THE 400 BLOCK OF ELENA STREET (2.02 ACRES• APN 68-301-111 FOR THE PEOPLE'S SELF HELP SENIOR HOUSING PROJECT (40 UNITS) Mr. Napper recommended Council adopt Resolution No. 27-89. A-12 ACCEPTANCE OF RESIGNATION FROM STREET ADVISORY COMMITTEE (TOM DOUGHERTY) Mr. Napper recommended Council accept the resignation of Tom Dougherty from the Street Advisory Committee, and instruct staff to advertise the vacancy. A-13 ACCEPTANCE OF RESIGNATION FROM HARBOR ADVISORY BOARD (JOHN ROFFINELLA) Mr. Napper recommended Council accept the resignation of John Roffinella from the Harbor Advisory Board, and instruct staff to advertise the vacancy. Councilmember Baker requested Items A-7, A-8, and A-10 be pulled for separate discussion. MOTION: Councilmember Lemons moved for approval of the Consent Calendar with the exception of Items A-7, A-8, and A-10. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) A-7 PROCLAMATION DECLARING APRIL 1-9. 1989 AS "MORRO BAY COMMUNITY CLEAN-UP WEEK", AND AUTHORIZING ANNUAL SPRING CLEAN-UP CAMPAIGN Councilmember Baker asked if this service is over and above the normal 6-can limit for service? Mr. Nichols stated Morro Bay Garbage Service will pick-up for free whatever is put at the curb on regular residential collection day during this Clean -Up Campaign. A-8 SET HEARING DATE (MARCH 27) FOR APPEAL OF PLANNING COMMIS- SION APPROVAL OF CUP 47-88 TO ALLOW OUTDOOR SALES AND DIS- PLAYS AND TO MAKE A NONCONFORMING POLE SIGN CONFORMING AT 1560 MAIN STREET (DOHERTY, APPLICANT; BIRD. APPELLANT) Councilmember Baker asked, regarding the appellant's claim, if there are definite regulations regarding curbs, gutters and side- walks? Mr. Napper stated this information will be provided in the staff report at the hearing on March 27th. This matter is scheduled only to set the date of hearing at this time. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 13, 1989 PAGE 5 A-10 ESTABLISH MEETING DATE AND AGENDA FOR JOINT MEETING WITH RECREATION AND PARKS COMMISSION Councilmember Baker was confused about the date for the joint meeting; he thought the date had been set for March 16th, and the agenda states March 27th. Mr. Napper said the actual date is Wednesday, March 29th; the agenda contained a typographical error, March 16th was a candidate date that did not work out. MOTION: Councilmember Wuriu moved for approval of the staff recommendation on Items A-2, A-8, and A-10. The motion was seconded by Councilmember Baker and unanimously carried. (4-0) B. B-1 ORDINANCE NO. 345 ESTABLISHING A VEHICLE WEIGHT LIMIT (5- TONS) ON IRONWOOD AVENUE BETWEEN HIGHWAY 41 AND AVALON STREET (SECOND READING/ ADOPTION) Mr. Napper stated this Ordinance will prohibit certain tonnage vehicles from using this segment of Ironwood Avenue for through traffic purposes; if adopted this evening, it will become effec- tive April 12th. MOTION: Councilmember Lemons moved Ordinance No. 345 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) Mr. Napper read Ordinance No. 345 by title and number only. MOTION: Councilmember Lemons moved for adoption and approval of second reading of Ordinance No. 345. The motion was seconded by Councilmember Baker and unanimously carried. (4-0) Mr. Napper stated this Ordinance is a housekeeping Ordinance to conform our Municipal Code to actual practices and rules govern- ing our Weed Abatement Program; the Ordinance will go into effect April 12th. MOTION: Councilmember Lemons moved Ordinance No. 346 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) Mr. Napper read Ordinance No. 346 by title and number only. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 13, 1989 PAGE 6 MOTION: Councilmember Lemons moved for adoption and approval of second reading of Ordinance No. 346. The motion was seconded by Councilmember Baker and unanimously carried. (4-0) 1�3 D mi—DR) C-1 APPROVAL OF INTERTIE AGREEMENT WITH THE WHALE ROCK COMMIS- SION FOR THE CONSTRUCTION AND MAINTENANCE OF A WATER SERVICE CONNECTION FOR THE EMERGENCY EXCHANGE OF WATER SUPPLIES Mr. Nichols stated the Whale Rock Commission governs water pro- vided from the Whale Rock Reservoir to San Luis Obispo, the Mens Colony, and Cal Poly. Prior to incorporation, a connection be- tween Whale Rock and Morro Bay was made so Morro Bay could pur- chase water from Whale Rock in an emergency. The agreement was renewed every year until 1980 when the Commission decided not to renew the agreement. Last October, Council directed staff to arrange with the Whale Rock Commission to obtain water on an emergency basis. In November, the Whale Rock Commission consid- ered this subject and directed staff to negotiate an agreement whereby both agencies could supply each other with water in the event of an emergency. The proposed agreement sets forth what constitutes an emergency, and stipulates the borrowing agency must return the water within one year of the transfer. Mr. Nichols said this is a common ar- rangement between adjacent water purveyors throughout the State. The County Engineer's office endorses this concept, and it will be discussed by the Whale Rock Commission on March 23rd. The San Luis Obispo City Council is a member of the Commission and will be reviewing the Whale Rock Commission's agenda tomorrow night. In January, the San Luis Obispo City Council voted to deny any request the City of Morro Bay might have for Whale Rock water. Mayor Sheetz asked why the City of San Luis Obispo made that determination? Mr. Nichols stated he did not know since the item was not agendized; he is aware of it because he read it in the newspaper. Councilmember Wuriu suggested it might be advisable to have another joint meeting with the City of San Luis Obispo; appar- ently, communication is not being understood, and San Luis Obispo may have violated the Brown Act by their action being unagendized. Councilmember Lemons said the agreement should be forwarded to the Whale Rock Commission without comment to take whatever action they wish. The City of San Luis Obispo's action in January was probably made out of a sense to protect what assets they have. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 13, 1989 PAGE 7 MOTION: Councilmember Lemons moved Council approve the proposed Intertie Agreement with the Whale Rock Commission for potential emergency exchanges of water, and direct staff to present the Agreement to the Whale Rock Com- mission. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) 0610 W4 -Ego Mr. Davis reviewed Harbor Advisory Board recommendations for amending the regulations and permitted uses in Mooring Area A-1-5. The Board recommends there be no charge for the first five days mooring in any six month period, and $3.00 per day thereafter; mooring of vessels shall not exceed thirty days in any six month period. The Board also recommends the Harbor Director determine fees for temporary mooring within the area for marine construction equipment or vessels of unusual size, nature or shape. Mayor Sheetz did not believe it should be left to the Harbor Director to set the fees; a schedule of fees should be developed and approved by Council. Councilmember Lemons commented campers certainly cannot find a camp spot for $3.00 per day, and suggested the whole harbor fee schedule be reviewed. Mr. Davis agreed, stating Morro Bay may have the lowest rates along the coast and the Harbor Advisory Board is evaluating the fees. Council directed this matter be referred back to the Harbor Advi- sory Board with instructions to develop a fee schedule for these uses, and review the entire harbor fee schedule for possible modifications. C-3 STREET ADVISORY COMMITTEE RECOMMENDATION FOR STREET MAINTENANCE PROJECT USING MID -YEAR BUDGET MONIES (HARBOR STREET OVERLAY, MORRO BAY BLVD. TO MAIN STREET) Mr. Nichols reviewed the Street Advisory Committee's recom- mendation to overlay Harbor Street between Morro Bay Boulevard and Main Street ($40,000), and earmark $10,000 for a fog seal program. If accepted, the total overlay program yet to be done costs approximately $107,150, which leaves $25,800 unallocated. Council is in receipt of a list of staff recommended streets for a 0.10' contract overlay: portions of Harbor Street, Monterey Avenue, Barlow Lane, and possibly Las Vegas Avenue could be added. Council mentioned other streets (Carmel; Arcadia) within the City in bad condition. Mr. Nichols said these streets are scheduled MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 13, 1989 PAGE 8 for pipeline replacement either this year or in Phase IV of the replacement program; consequently, the streets should not be overlayed until the underground pipeline has beenreplaced. Mayor Sheetz was concerned the work might conflict with scheduled summer events and tourism. Mr. Nichols stated staff is sensitive to this conflict and will avoid problems if possible; however, this type of work must be done during dry summer months. MOTION: Councilmember Lemons moved Council instruct staff to add the designated portions of Harbor Street, Monterey Avenue, Barlow Lane, and potentially Las Vegas Avenue to the list of streets for contract overlay, and retain $10,000 for fog -sealing. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) 3lIT:T*Ams[�I���i'_��������`.���7�7v!L�i`J�����7+13D��F:�. _•.� •y C-5 COUNCIL DISCUSSION OF AGENDA PREPARATION PROCEDURES AND MEETING DATES Council decided to defer this item to the end of the meeting, and continue on to Public Hearing items. D. PUBLIC HEARINGS. REPORTS & APPEARANCES • • • • — _ • • Mr. Napper noted negotiations are continuing, but are not final; 28 out of 32 conditions have been resolved. It would be bad faith to release specific status information on the negotiations until they are complete or at impasse. He recommended Council open the hearing to the public for comments, and continue the item to the March 27th meeting. Mayor Sheetz opened the hearing to the public; there were no comments. MOTION: Councilmember Lemons moved the hearing be continued to March 27, 1989. The motion was seconded by Councilmem- ber Baker and unanimously carried. (4-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 13, 1989 PAGE 9 ••,Y_Y(�i�l�'l+J]�(�7:1�2\�4�[�3•]�E�L•]�4`\L��A�l��:7`J1i���r►�;�tilJ� `f• Mr. Napper stated the six -week public review period on this amendment opened January 27th and closed on March loth. Because it was not possible to prepare a review of the comments and enabling resolution for this meeting, staff recommends Council receive public input, and continued the hearing to March 27th. Mayor Sheetz opened the hearing to the public for comments; there were no comments. MOTION: Councilmember Wuriu moved the hearing be continued to March 27, 1989. The motion was seconded by Councilmem- ber Baker and unanimously carried. (4-0) Mr. Nichols reviewed the Water Advisory Board's recommendations for a revised program of mandatory water conservation. He out- lined the proposed Ordinance which establishes four levels of conservation; Normal Water Supply Conditions, Moderately Re- stricted Water Supply Conditions, Severely -Restricted Water Sup- ply Conditions, and Critical Water Supply Conditions. A Resolu- tion has been prepared at the recommendation of the Water Advi- sory Board to enact Level 2 of the program, Moderately -Restricted Water Supply Conditions; currently the City is operating under Level 3, Severely -Restricted Water Supply Conditions. Mr. Nichols noted the Ordinance is an urgency ordinance and requires 4/5ths affirmative vote to pass. Staff alternatively recommends under the Severely Restricted mode that City parklands, sportsfields and the school district areas be allowed to irrigate like everyone else: twice per week. He noted the City is in receipt of correspondence from the School District requesting they be allowed to resume watering because of student safety when using dry sportsfields; there have been a number of student injuries officials have attributed to the dry field conditions. It is also recommended Council delete the ex- emption of restricted irrigation for newly -planted landscaping in Levels 1, 2, and 3 of the Board's proposal. People should plan to plant their lawns during the rainy seasons or when the City is likely to be in a Normal Water Supply Condition. Mayor Sheetz asked when the City might be in trouble again as far as wells are concerned. Mr. Nichols said well levels should MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 13, 1989 PAGE 10 start declining in June and July if there is no substantial rain between now and then. By reducing the water use in the community now, the City may not get to the point it did last year when a well went dry. He will be watching the wells very carefully in July and August; right now, they are fully charged as usual in March. Councilmember Baker did not believe the City should be too con- cerned about enforcement; the City will be going from a Severe situation to Moderately -Restricted, and most citizens will see that as an improvement on the situation. Councilmember Lemons asked why newly planted landscaping is being exempted from excessive run-off? Mr. Nichols said the Water Advisory Board's rationale was for landscaping on steeply sloping hillsides, it may be necessary to let the water run down the street in order to provide enough water to all of the new seed. R. B. Kitzman, Chairman of the Water Advisory Board, explained the Water Board was concerned with trying to cover all situations and to establish rules which can be enforced. Councilmember Wuriu expressed concerns the Ordinance will not be effective without additional staff to enforce the regulations. Mr. Napper stated he is not recommending additional staff at this time; he preferred to see how the program works and the level of the community response before allocating money to enforcement. He said more information should be available during the upcoming budget process to allocate additional enforcement funds if necessary. Mr. Napper questioned the restriction in the Severely Restricted level prohibiting emptying and refilling of swimming pools and commercial spas; what about residential spas? Mr. Nichols stated the Water Advisory Board did not believe the prohibition on resi- dential spas could be enforced; spas are generally located in residential backyards the Code Enforcement Officer would not have access to. In addition, the Board desired to regulate the larger commercial users. Mayor Sheetz opened the hearing to the public for comments. Frances Budlong, 160 Bali, asked if the proposal considered this evening is adopted, will she be able to plant her lawn. Mr. Nichols stated yes, if Council adopts the Ordinance and Resolu- tion as is. She objected to the fact the City continues to allow building while making current residents conserve. Mary Phillips stated she intends to have a garden this summer and has saved enough water over the years to be able to do so. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 13, 1989 PAGE 11 Charles Palmer, 485 Estero, stated someone told him a lawn was a requirement by the Planning Department on a development as part of the permit approval; he did not believe that practice should continue. Mayor Sheetz closed the hearing to the public. Councilmember Wuriu reiterated his comments concerning the need for enforcement up -front. He said people will be waiting to see how the Ordinance is enforced. A permanent mandatory ordinance with effective levels of seriousness is something the City should back-up with actual enforcement powers. Councilmember Lemons stated he is willing to wait and see what levels of enforcement are necessary. He also stated he did not believe a fully established lawn needs to be watered more than 2 time per week, and suggested the outdoor irrigation schedule from Severely -Restricted Water Supply Conditions be placed in the Mod- erately Restricted level. Council discussed the current state of parklands and the need to reestablish the turf in some areas. MOTION: Mayor Sheetz moved Council approve an amendment to the Ordinance as suggested by the City Administrator to treat irrigation of residential, park and school areas the same in Levels B and C. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) MOTION: Councilmember Lemons moved the outdoor irrigation schedules B and C both reflect the schedule in Level C, Severely Restricted Water Conditions allowing only 2 days per week watering. The motion was seconded by Mayor Sheetz and unanimously carried. (4-0) Council continued discussing allowing residential and public parks and schools to maintain the same schedule; Councilmember Lemons stated the intent of his motion was to allow public schools and parks the same watering schedule as residents under Moderately -Restricted Conditions, but maintain the prohibition for schools and parks in Severely -Restricted Conditions. He com- mented 1/3 of the lawns in Morro Bay can be watered for the amount used at the school. Council should look to those uses which will yield the most amount of water with proper conserva- tion. Councilmember Baker disagreed and said the water schedules for residents and public should be alike. MOTION: Councilmember Wuriu moved the Ordinance be amended to allow irrigation schedule for residences, public parks and schools in Moderately -Restricted Conditions be re- placed by the schedule in Severely Restricted Condi- tions; twice per week watering and eliminate the prohi- bition for parks and schools in both schedules. The motion was seconded by Mayor Sheetz. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 13, 1989 PAGE 12 Councilmember Lemons stated Council is losing the opportunity to make a water savings from large water users. Councilmember Wuriu stated allowing parks and schools to water two times per week is still saving a substantial amount from the usual daily watering; he believed this process should be tried because it is the fairest way. The motion carried on the following roll call vote: AYES: Baker, Wuriu, Sheetz NOES: Lemons ABSENT: Odell Mr. Napper advised Council should re -open the hearing to the pub- lic to receive comments on the amended Ordinance. Mayor Sheetz opened the hearing to the public for comments. Mary Phillips said the proposed ordinance does not save water; the City should deprive itself before it deprives the residents. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Wuriu moved for the adoption of Ordinance No. 347 as amended. The motion was seconded by Coun- cilmember Baker and unanimously carried by roll call vote. (4-0) Mr. Napper stated it is necessary to read the Ordinance by title and number before adoption. MOTION: Mayor Sheetz moved Ordinance No. 347 be read by title and number only. The motion was seconded by Coun- cilmember Wuriu and unanimously carried. (4-0) Mr. Napper read Ordinance No. 347 by title and number only. MOTION: Councilmember Baker moved for adoption of Ordinance No. 347 as amended and as an urgency ordinance. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) MOTION: Councilmember Lemons moved for adoption of Resolution No. 29-89 determining Moderately -Restricted Water Sup- ply Conditions exist. The motion was seconded by Coun- cilmember Baker and unanimously carried. (4-0) 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 13, 1989 PAGE 13 C-5 COUNCIL DISCUSSION OF AGENDA PREPARATION PROCEDURES AND MEETING DATES Mr. Napper reviewed Councilmember Odell's request to discuss receiving the Council Agenda Packet five days before the Council meeting. He noted practices in other local cities, and staff constraints with requiring packets earlier. He said moving the meeting day to Tuesday would impact staff less; however, the Sun - Bulletin will have problem with their Wednesday publishing date, and would not be able to get Monday night's Council meeting actions into their weekly paper until the following week, which will make it old news. Councilmember Baker stated while it is difficult to read every- thing in the packet by Monday night, he usually manages to get through; he said he could get along with the present schedule. Councilmember Lemons noted as time goes on, it will get easier. Mayor Sheetz expressed satisfaction with the current process. Councilmember Wuriu was in favor of at least getting the packet one day earlier; when presented with a 2" thick packet, it is not an easy task to read it in three days. He suggested perhaps there is a way for Council to receive the packet earlier in the day. No action was taken on this item. E. CLOSED SESSION MOTION: Councilmember Lemons moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmem- ber Wuriu and unanimously carried. (4-0) The meeting adjourned to Closed Session at 8:56 p.m. and returned to regular session at 10:07 p.m. F. ADJOURNMENT MOTION: Councilmember Baker moved the meeting be adjourned. The motion was seconded by Mayor Sheetz and unanimously carried. (4-0) The meeting adjourned at 10:07 p.m. Recorded by: ARDITH DAVIS City Clerk 6 6 City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING - FEBRUARY 27, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE PRESENTATION - RESOLUTION DECLARING 1989 "THE YEAR OF THE YOUNG READER", AND WELCOMING THE ESTABLISHMENT OF THE JUNIOR FRIENDS OF THE MORRO BAY LIBRARY PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section D) may do so by standing. When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments should normally be limited to three minutes. DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF FEBRUARY 14, 1989 A-2 AWARD OF CONTRACT FOR PROJECT NO. PW 88-06, CONSTRUCTION OF STEEL ROOF FOR KINGS AVENUE WATER TANK, AND REPLACEMENT OF ONE ELENA STREET WATER TANK A-3 RESOLUTION NO. 24-89 RATIFYING GRANT APPLICATION TO CALIFORNIA ENERGY COMMISSION FOR TECHNICAL ASSISTANCE TO IMPLEMENT A FLEET MAINTENANCE PROGRAM AND A REFUSE RECYCLING PROGRAM A-4 RATIFICATION OF REFUSE FRANCHISE BOARD GOALS AND OBJECTIVES FOR 1989 A-5 REFUSE FRANCHISE BOARD REQUEST FOR LEGAL OPINION AND ORDINANCE FOR CITY COLLECTION OF DELINQUENT REFUSE BILLS A-6 RESOLUTION NO. 21-89 DECLARING 1989 "THE YEAR OF THE YOUNG READER", AND WELCOMING THE ESTABLISHMENT OF THE JUNIOR FRIENDS OF THE MORRO BAY LIBRARY A-7 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (COLLEEN SHARPE) 1 A-8 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (CATEERINE NOVAK) A-9 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (HENRY PEDERSEN) A-10 EXPENDITURE REPORT - JANUARY 1989 A-11 STATEMENT OF INVESTMENTS - JANUARY 1989 A-12 RESOLUTION NO. 20-89 REJECTING OFFER OF DEDICATION OF A PUBLIC UTILITIES EASEMENT, AND ACCEPTING OFFERS OF DEDICATION FOR AN ADDITION TO THE ELENA STREET RIGHT-OF-WAY AND A WATERLINE EASEMENT MADE ON THE PEOPLE'S SELF-HELP HOUSING PARCEL MAP MBAL 88-121 B. UNFINISHED BUSINESS NONE C. NEW BUSINESS NONE •�• D-1 CONTINUED APPEAL HEARING ON PLANNING COMMISSION DENIAL (RESOLUTION NO. 92-88) TO RE -ISSUE WATER EQUIVALENCIES TO THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION (FSLIC) FOR COMPLETION OF BAYSHORE VILLAGE CONDOMINIUM PROJECT (FEDERAL ASSET DISPOSITION ASSOCIATION, AGENT; 188 BAYSHORE DRIVE, 48 UNITS) D-2 ORDINANCE NO. 345 ESTABLISHING A VEHICLE WEIGHT LIMIT (5 TONS) ON IRONWOOD AVENUE BETWEEN HIGHWAY 41 AND AVALON STREET (FIRST READING) D-3 ACCEPTANCE OF FINAL ENVIRONMENTAL IMPACT REPORT FOR THE SAN LUIS OBISPO COUNTY HAZARDOUS WASTE MANAGEMENT PLAN, AND ADOPTION OF THE FINAL COUNTY HAZARDOUS WASTE MANAGEMENT PLAN D-4 ORDINANCE NO. 346 AMENDING WEED ABATEMENT MUNICIPAL CODE TO FURTHER DEFINE HAZARDOUS VEGETATION AND TO CLARIFY ABATEMENT AND NOTIFICATION PROCEDURES (FIRST READING) D-5 CONTINUED PUBLIC HEARING ON NORTH MAIN STREET SPECIFIC PLAN (LCP/GPA/ZOA 01-86A) D-6 RECONSIDERATION AND APPROVAL WITH CONDITIONS OF TENTATIVE TRACT MAP 1231 AND COASTAL DEVELOPMENT PERMIT 77-84R ALLOWING A 13-LOT SUBDIVISION FOR SINGLE FAMILY RESIDENCES ON PROPERTY LOCATED ON THE WET SIDE OF IRONWOOD BETWEEN MIMOSA AND AVALON STREETS (LOPERENA, APPLICANT) D-7 HEARING ON APPEAL TO PLANNING COMMISSION APPROVAL OF VARIANCE 23-88A (2670 HEMLOCK AVENUE; MARY PHILLIPS, APPELLANT) 2 0 D-8 APPEAL HEARING OF PLANNING COMMISSION APPROVAL OF TRACT MAP 1529; TWILA BREEN AND R. & N. ATCHLEY SUBDIVISION (NORTH SIDE OF MIMOSA STREET BETWEEN IRONWOOD AVENUE AND HILL STREET; PAUL PRICE, APPELLANT) CASE NO. CDP 14-87R/TM 02-87 D-9 PRESENTATION BY ENTERPRISE ENGINEERING (CHARLES PALMER) OF A 5-YEAR WATER PRICING PROGRAM, PHASE I OF A PROPOSED WATER USE MANAGEMENT PROGRAM D-10 DETERMINATION OF AWARDING CONTRACT OR REJECTING BIDS AND STATING FINDINGS OF FACT FOR THE USE OF DAY LABOR TO IMPLEMENT PHASE III OF THE WATERLINE REPLACEMENT PROGRAM, PROJECT NO. PW 87-10 E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY NEGOTIATIONS, LEASE SITE 93-95W (GEORGE) 901 EMBARCADERO E-2 GOVERNMENT CODE SECTION 54956.9(A); PENDING LITIGATION, JOHN M. MALMQUIST V. CITY OF MORRO BAY WCAB 88 SBA 59236/37 F. ADJOURNMENT COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. 3 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 27, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. ROLL CALL PRESENT: Rose Marie John Baker John Lemons Jeff Odell Tom Wuriu Sheetz Mayor Councilmember Councilmember Councilmember Councilmember ABSENT: None STAFF: Gary Napper Judy Skousen Louise Burt Ardith Davis Bill Farrel Forrest Henderson Nick Nichols City Administrator City Attorney Finance Director City Clerk Community Develop. Dir. Asst. City Admin. Public Works Dir. Reverend Jim Kennemur of the First Christian Church gave the invocation, and Horace Strong led the Pledge of Allegiance. -_�4._\ _e_0 iWIL4\. _* _.e._ Mayor Sheetz announced this item, and presented a copy of the Resolution to members of the Morro Bay Friends of the Library; Jude Long, Librarian; and Helen Hileman, President, Friends of the Library. 1. Howard Gaines, 441 Orcas, commented on Item A-5 con- cerning City collection of delinquent refuse bills. He said the contemplated action will put the City in the business of collect- ing bad debts. He noted an outstanding debt has a two year statute of limitations to collect on it. He also suggested the information submitted by Morro Bay Garbage Service involves a conflict of interest in that the person collecting refuse also owns part of the landfill. 2. Mary Phillips, 2645 Ironwood, urged Council to consider meeting with the Refuse Board to find out what they are doing. She noted Atascadero has 100 years left on their garbage dump. She read a letter she wrote in response to a collection agency MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 27, 1989 PAGE 2 notice to collect on her garbage service; she said they cannot collect unless they can prove she received the service bill, which she has not. If City gets involved, she will have to take it to court. 1. Councilmember Odell referred to the size of this evening's agenda packet, and requested staff develop a way for Council to receive the packet at least five days before the meeting. 2. Councilmember Lemons asked when the item regarding rezoning of the Caratan property on Main Street will return for Council consideration? Ms. Skousen stated she is still reviewing the matter. A. CONSENT \D A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF FEBRUARY 14, 1989 Mapper Councilminutes A-2 AWARD OF CONTRACT FOR PROJECT NO. PH 88-06, CONSTRUCTION OF STEEL ROOF FOR KINGS WATER E\A -: : TANK AVENUE TANK, N Mr. Mapper recommended Council determine the bid irregularities received are minor, the irregularities be waived, and Council award the project to Superior Tank Company in the amount of $199,997. A FLEET MAINTENANCE PROGRAM AND A REFUSE RECYCLING PROG Ar. Mapper recommended Council adopt Resolution No. 24-89. Mr. Mapper recommended Council ratify the 1989 Goals and Objec- tives for 1989, and commend the Refuse Board for their diligence and efforts. Mr. Mapper recommended Council direct the City Attorney and staff to research the legality and processes necessary to enact collec- tion of delinquent refuse bills by the property lien method, sub- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 27, 1989 PAGE 3 ject to his recommendation against the City re -assuming billing and collection for garbage services, and 100% reimbursement for any City costs and staff time incurred in collecting past -due refuse bills by the lien method. MapperA-6 RESOLUTION NO, 21-89 DECLARING 1989 "THE YEAR OF THE YOUNG READER". AND WELCOMING THE ESTABLISHMENT OF THE JUNIOR FRIENDS OF THE MORRO BAY LIBRARY .un- •-• Council adopt A-7 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (COLLEEN SHARPE) Mr. Mapper recommended Council deny the claim against the City, and authorize the City Clerk to sign and mail the rejection letter. Mr. Mapper recommended Council deny the claim against the City, and authorize the City Clerk to sign and mail the rejection letter. Mr. Mapper recommended Council deny the claim against the City, and authorize the City Clerk to sign and mail the rejection letter. A-10 EXPENDITURE REPORT - JANUARY 1989 Mr. Mapper recommended Council approve the Report as submitted. A-11 STATEMENT OF INVESTMENTS - JANUARY 1989 Mr. Mapper recommended Council accept the report for file. _; _ • •.� •-Ali 111 _ _ • _ _ • _ • • •. _ _ Mr. Mapper recommended Council adopt Resolution No. 20-89. Councilmember Odell requested Item A-4 be pulled for separate discussion; Councilmember wuriu requested Item A-5 and A-11 be pulled. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 27, 1989 PAGE 4 MOTION: Councilmember Lemons moved for approval of the Consent Calendar except for Items A-4, A-5, and A-11. The motion was seconded by Councilmember Wuriu and carried with Councilmember Odell abstaining on Item A-12 because of a conflict of interest. s :-'- _ _ ; _ _ • � • .:�aT�I�3�i_�[•IlF��3•]a1:��Z�3•3;7�3�I�Z•]_i�i��}��] Councilmember Odell commended the Refuse Board for their hard work. He requested they consider enacting an ordinance to require increased fines for disposable diaper and glass litter- ing. He said these types of littering are a nuisance and hazard in beach areas, and he believed if the penalties are high enough, the problem may abate. Councilmember Baker added his commendations of the Refuse Board. MOTION: Councilmember Lemons moved Council ratify the 1989 Goals and Objectives of the Refuse Collection Franchise Board, and commend them for their diligence. The mo- tion was seconded by Councilmember Baker and unani- mously carried. (5-0) A-5 REFUSE FRANCHISE BOARD REQUEST FOR LEGAL OPINION AND ORDINANCE FOR CITY COLLECTION OF DELINQUENT REFUSE BILLS Councilmember Wuriu suggested it is not equitable for a person who uses one can of trash to pay the same amount as a person using 6 cans per week. Mr. Napper noted there is a 1-can service available for people. Mr. Napper clarified this agenda item would not enact the City's collection of delinquent refuse bills; it only authorizes the City Attorney to research the legality of such a method. MOTION: Councilmember Wuriu moved Council direct the City Attorney and staff to research the legality and pro- cesses necessary to enact collection of delinquent refuse bills by the property lien method, subject to the City Administrator's recommendation against the City re -assuming billing and collection for garbage services, and the City be 100% reimbursed for costs and staff time incurred in collecting past -due refuse bills by the property lien method. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) � AIL • � 4aL ;_�� Councilmember Wuriu asked about the City's investments in savings and loan institutions. Ms. Burt stated no more than $100,000 is invested in each savings and loan, which represent the amounts MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 27, 1989 PAGE 5 insured by FSLIC; she believes the federal government will inter- vene on behalf of the savings and loans should defaults occur. MOTION: Councilmember Wuriu moved Council accept the report for file. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) B. UNFINISHED BUSINESS NONE NONE D. Mr. Napper stated negotiations are still continuing; he received a counter -proposal late this afternoon which staff has not had the opportunity to review yet. He recommended Council open the hearing to the public to receive comments, and continue the mat- ter to the next meeting. Mayor Sheetz opened the hearing to the public. Charles Palmer, 485 Estero, stated the City does not have the water to issue to this development. There were no other comments. MOTION: Councilmember Lemons moved the hearing be continued to the 13 March 1989 meeting. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mr. Nichols stated the Street Advisory Board recommended Council adopt an ordinance placing a vehicle load limit on Ironwood Avenue between State Highway 41 and Avalon Street. He explained heavy trucks use this portion of Ironwood to access area con- struction projects and Highway 41. The construction of the street and soil conditions is such it will not long withstand the constant use of these heavy vehicles. The proposed 5-ton limita- r MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 27, 1989 PAGE 6 tion will require these trucks to use Main Street instead, giving the Ironwood segment a longer life; Main Street is structurally able to absorb heavy truck use. Mayor Sheetz opened the hearing to the public for comments. Mary Phillips, 2645 Ironwood Avenue, wanted to know if Ironwood is unstable, and discussed a Whale Rock pipeline near Ironwood and possible flood/water damage to homes if this pipeline is ever broken. Howard Gaines, 441 Orcas, said the ordinance should apply to all streets in North Morro Bay, and referred to past slide areas where homes were damaged due to heavy rains. Mayor Sheetz closed the hearing to the public. Mr. Nichols stated the ordinance does not address landslide prob- lems, or the Whale Rock pipeline. Ironwood Avenue is a collector street and handles through traffic; Ironwood north of Avalon does not receive traffic to the degree this first segment does. The portion of Ironwood Avenue designated in the ordinance for prohi- bition of trucks over 5-tons is to extend the life of the street. MOTION: Councilmember Lemons moved Ordinance No. 345 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Napper read Ordinance No. 345 by title and number. MOTION: Councilmember Lemons moved for approval of the first reading of Ordinance No. 345. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mr. Farrel stated the County's preparation of the Hazardous Waste Management Plan is in response to AB 2948 which required all counties in the state to prepare such plans by February 17, 1989. The cities within the counties are also required to approve the Plan, and City staff and Council have reviewed and held public hearings on the County Draft Plan and EIR. Because the Final EIR was not available prior to the deadline, the City Council adopted a Resolution on January 23, 1989 disapproving the Final Draft without prejudice in order to retain review rights of the Final EIR. All documents have now been received, and it is in order for Council to act on the Plan and EIR. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 27, 1989 PAGE 7 Bob Holden, County Division of Environmental Health, stated the County has been working on this Plan since July 1987; he said he will answer Council questions. Councilmember Odell suggested "plant life" be included on page 1- 12 of the Executive Summary under Criteria, High Hazard Areas: "(areas where human, animal, or plant life could be jeopardized if fugitive releases occur)". Mr. Holden explained plant life is included in the more detailed section of the Plan. Councilmember Odell also suggested on page 1-13 under Conclusions, "fair share" be added to the sentence; "San Luis Obispo County has sufficient acreage and zoning to site its fair share of needed commercial offsite hazardous waste ...". Discussion followed on the notion of "fair share" of possible facilities and the State's non -accep- tance of the concept at this point. Mayor Sheetz opened the hearing to the public for comments; there were no comments, and the hearing was closed. MOTION: Councilmember Odell moved for adoption of Resolution No. 25-89. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) D-4 ORDINANCE NO. 346 AMENDING WEED ABATEMENT MUNICIPAL CODE TO FURTHER DEFINE HAZARDOUS VEGETATION AND TO CLARIFY ABATEMENT AND NOTIFICATION PROCEDURES (FIRST READING) Mr. Nichols explained the Ordinance contained minor "housekeep- ing" modifications to the Weed Abatement Ordinance. Mayor Sheetz opened the hearing to the public for comments. Howard Gaines 441 Orcas, asked if the City will still be giving notice to people required to abate their weeds? Mr. Nichols stated yes. Mr. Gaines also discussed a problem with a neigh- bor's tree. Mary Phillips questioned whether people are properly notified to remove their weeds and given an opportunity to pay for removal before the amount is applied to their property taxes? Staff assured her property owners are notified and given an opportunity to privately contract and pay for weed removal before the City has it done and places a lien on property taxes. Geraldine Price, Ironwood, asked if the weeds are required to be removed after they have been cut? Mayor Sheetz said yes. Ms. Muellich said when the notices are sent to property owners to abate weeds, many private contractors send their advertising also to do the work for the property owner; consequently, people are noticed many times to abate weeds. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 27, 1989 PAGE 8 Ed McCracken discussed poisonous trees and the possibility to abate them; staff noted this can be handled under existing statutes. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Lemons moved Ordinance No. 346 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Napper read Ordinance No. 346 by title and number. MOTION: Councilmember Lemons moved for approval of the first reading of Ordinance No. 346. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) D-5 CONTINUED PUBLIC HEARING ON NORTH MAIN STREET SPECIFIC PLAN (LCP/GPA/ZOA 01-86A) Mr. Farrel stated the Council's changes to the North Main Street Specific Plan were forwarded to the Planning Commission for their review; the Planning Commission approved Council's changes and it is now appropriate to begin the formal six -week public review period. He recommended Council take public testimony, close the public hearing, and commence the six -week review period. Staff will re -notice the last hearing for final review and approval of the Specific Plan. Mayor Sheetz opened the hearing to the public; there were no com- ments and the hearing was closed. MOTION: Mayor Sheetz moved the public hearing be closed, and staff be authorized to commence the six -week public re- view period. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) D-6 RECONSIDERATION AND APPROVAL WITH CONDITIONS OF TENTATIVE TRACT MAP 1231 AND COASTAL DEVELOPMENT PERMIT 77-84R ALLOW- ING A 13-LOT SUBDIVISION FOR SINGLE FAMILY RESIDENCES ON PROPERTY LOCATED ON THE WET SIDE OF IRONWOOD BETWEEN MIMOSA AND AVALON STREETS (L•OPERENA. APPLICANT) Judy Skousen stated this item was previously before Council in 1985 at which time the City denied the project; a lawsuit was subsequently filed against the City. In their denial, Council relied on Covenants, Conditions, and Restrictions (CC&R's) which are private agreements and not to be considered by Council in approving or denying an application. Council can only consider current zoning laws. In 1987, Council reheard the matter and gave conceptual approval with conditions. Since that time nego- tiations have been continuing regarding a 15-foot wide storm drainage easement, and that has now been resolved. She recom- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 27, 1989 PAGE 9 mended Council adopt Resolution No. 10-89 approving the Tentative Tract Map in exchange for which the applicant will drop the suit against the City. Mayor Sheetz asked if the applicant will be required to comply with the conditions set by Council? Ms. Skousen said yes, the conditions are not CC&R's by private property owners, but condi- tions of approval set and enforced by the City. Mayor Sheetz asked when the suit will be dismissed? Ms. Skousen said probably within the week. Councilmember Baker questioned Condition No. 19 regarding drainage from roof -tops to the street. Mr. Nichols stated this is to prevent drainage onto the lots and adjoining properties. A drainage system will be constructed to carry water from roof drains to the street, and from there to the City's drainage system. Mr. Napper noted the approval required this evening is for the subdivision only; no homes are being approved. Mayor Sheetz opened the hearing to the public for comments. Randall Cook, attorney for Loperena, stated only Condition No. 18 (regarding the easement) has been modified from Council's approval in 1987; it is basically the same project previously approved. Ms. Osborn, 2191 Ironwood, owns property adjacent to the subdivi- sion. She said there is no way to make the drainage go up -hill, and it will be left to flow across her property. She is also concerned about a fence she has which will be next to the prop- erty drainage easement, and the drainage will erode the founda- tion and cause it to fall down. Bruce Elster, project engineer, said when the property owner is through with the improvements, there will be less water running across adjacent properties than there currently is. He reviewed the drainage plan for the project and how it will deposit water into the City's master drainage system. Mayor Sheetz asked if the drainage ditch will cause Ms. Osborn's fence to collapse? Mr. Elster said no. He noted he usually plans for a 25-year storm for drainage systems of this nature; however, this is being designed for a 100-year storm. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Lemons moved for adoption of Resolution No. 10-89. The motion was seconded by Councilmember Baker. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 27, 1989 PAGE 10 Mayor Sheetz stated although she has mixed emotions about this project, she believes the applicant is taking steps beyond what was discussed a few years ago to mitigate the impact on adjoining properties. She said it is important to set the lawsuit aside, and she will vote in favor of the motion because she believes it is in the best interests of the City. If the developer does not adhere to the conditions, the City can take appropriate action. The motion was unanimously carried by roll call vote. (5-0) Mr. Farrel stated this is an appeal by Mary Phillips from the Zoning Administrator's and the Planning Commission's approval of a variance to allow construction of a single family residence on a substandard lot at 2670 Hemlock in an R-1/S.2 zone. He said the property owner has permission to remove an older residence which straddles two separate lots; he has sold one of the lots to Mr. Schlesinger who made application for the variance. Ms. Phillips, appellant, insists the two lots are one and cannot be split if they are owned by one person. Mr. Farrel stated the City does not have a merger ordinance, and the lots are separate; therefore, it is proper to allow the variance as the request is compatible with other properties in the neighborhood and does not constitute special privilege. Mayor Sheetz opened the hearing to the public for comments. Mary Phillips, 2645 Ironwood, read two letters from neighboring property owners supporting her appeal, and read her appeal let- ter. She maintained the two lots together are large enough to build a one -family residential home without requiring a variance. If Council does not find in her to obtain an injunction to stop decided by the courts; she said cess under the law. favor, she requested enough time construction until the matter is she is entitled to her due pro - Jerry Schlesinger, applicant, stated he is only buying one parcel from the property owner and requesting a permit to build a single family residence. He said the grounds for the appeal have no function or legal merit, and requested Council deny the appeal. Stewart Seiden, 2650 Hemlock, said the City has been telling him for a number of years the two parcels are substandard lots owned by one person and must be developed as one lot. He said granting the variance will constitute a special privilege and requested Council over -turn the Planning Commission's action. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 27, 1989 PAGE 11 Ms. Phillips referenced other properties where two stories are allowed because they have enough property, and also where two - stories were not allowed and a variance refused because there was not enough property. She requested Council uphold the zoning ordinance requirement and not approve a variance for this sub- standard lot. Mayor Sheetz closed the hearing to the public. Councilmember Wuriu commented perhaps there is only one legal alternative, but maybe the City should adopt a merger ordinance? Mr. Farrel said that would be beneficial only when a number of undevelopable small lots exits; he does not believe there are many contiguous sub -standard lots owned by one person in the City. Mayor Sheetz asked if these lots are substandard or legal? Mr. Farrel stated they are two separate legal lots; they are substan- dard in that the City now requires 4,000 s.f. to build; however, these lots have a legal non -conforming status in that they were established before the City's 4,000 s.f. requirement was in effect. Councilmember Lemons stated Ms. Phillips intends to seek an injunction if Council does not find in her favor this evening; he asked what period of time she has to do that? Ms. Skousen said Ms. Phillips could seek an injunction tomorrow; the property owner can pull his building permit tomorrow, but does not have a vested project until he has spent money on construction. Councilmember Odell stated the proposed project is not inconsis- tent with the neighborhood; he does not believe a property owner should be forced to purchase additional property in order to build. He noted the City has limited affordable housing options; this process provides one. MOTION: Councilmember Odell moved for denial of the appeal and adoption of Resolution No. 22-89. The motion was sec- onded by Councilmember Lemons and unanimously carried by roll call vote. (5-0) Council recessed from 8:19 p.m. to 8:30 p.m. moo olORMWIMM-10110 Mr. Farrel reviewed the applicant's request to re -subdivide a 1.7 acre portion of the Dirk Subdivision to create six low -density single family residential lots in an R-1 zoning district. The Planning Commission approved the Tentative Tract Map and Coastal MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 27, 1989 PAGE 12 Development Permit and this action was appealed by Paul Price. Mr. Farrel reviewed the objections listed in Mr. Price's appeal and responded to each; staff recommends Council deny the appeal and uphold the Planning Commission's approval with conditions. Councilmember Lemons asked about the street improvements on Iron- wood. Mr. Farrel said staff recommended curb, gutter and side- walks be installed on the Ironwood frontage; however, the Plan- ning Commission believed that to be an excessive requirement and deleted the requirement for sidewalks. Staff responded to ques- tions from Council regarding drainage for this project, noting drainage will be addressed in another phase of the plan. The developer will be required to prepare plans showing the drainage system will be able to handle the flows. Mayor Sheetz opened the hearing to the public for comments. Edward Somogyi, attorney for Mr. Price, stated the subdivision violates the deed restrictions which were created to protect the rural character of the neighborhood. He believed Council has a responsibility to preserve this rural character. He said the ingress/egress to Lots 4 and 5 are not wide enough for emergency vehicles and traffic, sidewalks should be required, traffic cir- culation has not be sufficiently addressed, and paving to center line of the street should be required. He urged Council to deny the map. Terry Orton, Westland Engineering representing the applicant, stated a majority of the CC&R's have been ignored by the people living there, including the appellants. He said a lot of work has been done on the City's General Plan and Zoning Ordinance over the years and that has set the character of the neighbor- hood; he believes the proposed development is in character with the neighborhood. Mr. Orton discussed the drainage system and the possibility of connecting to the Loperena tract drainage system. Councilmember Baker questioned the 24' turn -around for emergency vehicles. Mr. Orton stated the Fire Department has reviewed the plans and believes it to be adequate. Nancy Bast said nothing was mentioned about the Loperena project carrying the flow for this project also; the Loperena development needs to be constructed to carry this additional drainage. Mr. Orton stated the possibility is in the discussion stage; if it does not work out, the drainage will be pumped to the existing City systems. Ms. Osborn was concerned the drainage from this project will flow across her property. Mr. Farrel stated a drainage problem exists MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 27, 1989 PAGE 13 on the property as it is; he said most problems can be taken care of by on -site drainage measures. Councilmember Odell asked if the City could be liable if the drainage pumps fail? Mr. Nichols said as long as the drainage system is privately owned, there is no City liability. Mr. Somogyi said community planning in Morro Bay is not taking everything into consideration; everything should be complied with in a uniform manner. The two maps are not consistent, and reit- erated the 24-foot driveway will not accommodate fire trucks. Charles Palmer, 485 Estero, asked what the City's liability is if the drainage system fails; he said the City will have approved the system even though it will be privately owned. Ms. Skousen stated the system will be privately owned, privately operated, on private property; there is no City liability. Mayor Sheetz closed the hearing to the public. Mayor Sheetz was concerned about the drainage from this property emptying into the Loperena drainage system; she believed some items have not been addressed properly. She also was in favor of requiring sidewalks be installed. Councilmember Lemons said he was comfortable with the usual pro- cedure of the Public Works Department approving the drainage plans. Council discussed the City's ability to require property owners to put in sidewalks when a certain portion of the street frontage has them installed. Mrs. Price stated they are being penalized by the requirement to put in sidewalks. Mr. Nichols stated it would be a Council deci- sion; they do not have to require the sidewalks to be installed, and it is not under consideration at this time. MOTION: Councilmember Lemons moved Special Condition No. 7 be amended to state, "No residential construction shall take place..."; and Special Condition No. 10 be amended to read, "Curb, gutter and sidewalk shall be in- stalled...". The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) MOTION: Councilmember Lemons moved for denial of the appeal and adoption of Resolution No. 23-89 as amended. The mo- tion was seconded by Councilmember Wuriu and unani- mously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 27, 1989 PAGE 14 Mr. Palmer read his proposal for developing a water pricing pro- gram for the City dated February 16, 1989; he also reviewed some tables showing how the program would apply to water and sewer rates. He believed his water pricing program would give resi- dents the incentive to conserve, create revenue for the City, and save water. Mayor Sheetz opened the hearing to the public for comments. Randy Ruff stated his analysis of Morro Bay rainfall patterns since 1959 show the City can anticipate a 50% chance of receiving 12' inches of rainfall by the end of the rainy season. He be- lieved some thinking on water use and decreased water use incen- tives is in order. Bill Pierce, Hemlock, believed a pricing program would have a great effect; if people want to keep their yards green, then let them pay for it. Howard Gaines, 441 Orcas, said he conserves water but he wants to conserve it for himself. He said if the City is going to raise rates for water, the citizens should get more water; he did not believe in hiring another consultant would give the City one more drop of water. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Lemons moved the report be received for file. The motion was seconded by Councilmember Wuriu. Councilmember Odell stated although there is merit to this idea, he did not believe it proper for the City to enter into a con- tract without going out to bid. He said the report has a number of good ideas and a lot of work went into its development. The motion was unanimously carried. (5-0) Mr. Nichols reviewed the City's waterline replacement program; he said the City is in Phase III of a 4-phased program replacing water mains which need to be brought up to standard. Bids were received for the project and staff has determined the work can be done more economically by City crews and is recommending Council reject all bids and award the project by force account. The low MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 27, 1989 PAGE 15 bid by WELS Undergrounding, Inc. was in the amount of $398,683.90; it is estimated City crews can complete the work for $332,500. Mr. Nichols noted the objections received in the past by contrac- tors regarding the City awarding projects to itself. He said the specifications were prepared to give the City and the contractors the same options. He said if Council determines the bid should be awarded to the low bidder, their action must include reallo- cating $110,000 from the New Water Production Projects reserve account to fund the project; and, eliminate two Maintenance Worker II positions in the City Water Maintenance Division. If Council chooses to reject all bids, it is necessary to allocate $1,600 from the Water Fund Operating Contingencies and adopt the Resolution prepared with the necessary Findings of Fact to sup- port using City forces to replace the water mains. It was noted Council is in receipt this evening of a memo from the Finance Director delineating project costs to the City, if the City were under the jurisdiction of the California Uniform Public Construction Cost Accounting Commission, which we are not; the estimate is $35,000 lower than the current force account bid. Councilmember Baker asked why there was such a difference between the additional allocation need for the low bidder as opposed to the one needed for City forces. Mr. Nichols stated a $35,000 to $40,000 contingency fund is needed to deal with unforeseen change orders by the contractor. Councilmember Wuriu asked if the private contractors are bidding against the City? Mr. Nichols said no, the law provides for cities to accomplish work themselves if it can be done more eco- nomically than private bidders. The City is not required to pay prevailing wage to its employees as the contractors are, and can therefore take advantage of that savings and profit margins. Councilmember Wuriu asked if conditions are equal for contractors and the City? Mr. Nichols said no, contractors build a profit into their bid, the City does not; contractors have to mobilize their equipment from out of town, the City does not. That is why the City is able to complete the project for less. Councilmember Wuriu asked why the City has to go through the bid- ding process? Mr. Nichols said the law requires a project over $5,000 go out to bid; it also provides for the City to award the project to itself if it can be done more economically. Mayor Sheetz opened the hearing to the public for comments. Coe Wakefield, construction worker for WELS, low bidder on the project, questioned some aspects of the City's estimate to which MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 27, 1989 PAGE 16 Mr. Nichols responded. His analysis shows the City will save $16,000 in the long -run by awarding contract. Bob Dorn, representing the Associated General Contractors of California, objected to the City's practice of awarding bids to itself and charged the City with competing against the free enterprise system. He indicated the staff report done by the City is very good, and more than adequate. Bill Lackey, co-owner of WELS, agreed with Mr. Dorn. He said if a contingency has to be set aside for his bid, it should also be set aside for the City. The City has not included booking expenses in its estimate, employees riding to the project and back, liability insurance, cost of preparing the estimate, wear and tear on equipment. Each bid requires several thousand dol- lars to prepare; he also loses interest on money tied up in the bond required by the City. Mayor Sheetz closed the hearing to the public. Councilmember Wuriu stated he would like to give private enter- prise the opportunity to do the job if the costs were closer together. He was not happy with the process used and encouraged the Public Works Department to do something about the procedures to avoid the appearances of a "set-up". Mayor Sheetz stated Council has to decide what is best for the community as whole; the bid process is required by law and the City cannot get around it. Councilmember Lemons questioned whether some of the items men- tioned by Mr. Lackey are included in the City's estimate. Ms. Burt reviewed those items are indeed in the City's figures of overhead, administrators, and the productive hourly rate schedule. Councilmember Lemons asked about the time requirements to finish the project; Mr. Nichols stated no time requirements were included in the bid specifications. Councilmember Odell asked how much the City has spent on capital projects awarded to private contractors? Mr. Nichols reviewed several: Community Center, police station reconstruction, Veter- ans Hall, all done by contractors or sub -contractors. Ms. Burt stated she reported approximately $1.6 million in capital pro- jects to the State last year. Councilmember Odell commented free enterprise seems to be flourishing in Morro Bay. MOTION: Mayor Sheetz moved Council reject all bids received for Project No. PW 87-10. The motion was seconded by Coun- cilmember Odell and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 27, 1989 PAGSP 17 MOTION: Councilmember Odell moved for the adoption of Resolu- tion No. 19-89 (Option B). The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) MOTION: Councilmember moved Council allocate $1,600 from the Water Operating Fund Contingency Account to gapfund total project financing. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) MOTION: Councilmember Odell moved Council use City forces to complete the project. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) Mr. Lackey asked if he could obtain his $40,000 cash bond tomor- row. Ms. Burt said yes. E. CLOSED SESSION MOTION: Councilmember Odell moved the meeting adjourn to Closed Session. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mayor Sheetz stated Council is adjourning to Closed Session to discuss real property negotiations in accordance with Government Code Section 54956.8 regarding Lease Site 93-95W (George) 901 Embarcadero; and Government Code Section 54956.9(a), pending lit- igation in the matter of John M. Malmquist v. City of Morro Bay, WCAB 88 SBA 59236/37. Council adjourned to Closed Session at 10:54 p.m. and returned to regular session at 11:11 p.m. F. ADJOURNMENT MOTION: Councilmember Odell moved the meeting be adjourned. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) The meeting adjourned at 11:11 p.m. Recorded by: � ARDITH DAVIS City Clerk 0 City .Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING - TUESDAY, FEBRUARY 14, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so by standing. When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments should normally be limited to three minutes. DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the fol- lowing actions are approved without discussion. A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF JANUARY 23, 1989 AND THE SPECIAL MEETING OF JANUARY 30, 1989 A-2 REJECTION OF ALL BIDS FOR PROJECT NO. PW88-05, COLD MIX STORAGE BUILD- ING AT CORPORATION YARD A-3 RESOLUTION NO. 13-89 ACCEPTING OFFER OF DEDICATION OF RIGHT-OF-WAY; PINEY WAY BETWEEN VISTA AND PINEY LANE, AND A STRIP OF LAND FOR DRAINAGE PURPOSES WESTERLY OF THE SOUTHERLY TERMINUS OF PINEY LANE A-4 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (WISE) A-5 ACCEPTANCE OF NEW CHAMBER OF COMMERCE REPRESENTATIVE TO CITY COMMUNITY PROMOTIONS COMMITTEE (CADENASSO) A-6 RESOLUTION NO. 12-89 AWARDING CONTRACT FOR PROJECT NO. PW88-02; CITY PARK RESTROOM AND BUS SHELTER A-7 1988 ANNUAL REPORT ON MOBILE HOME RENT CONTROL PROGRAM A-8 STATUS REPORT ON GENERAL PLAN/LOCAL COASTAL PROGRAM REFORMAT 01 A-9 SET HEARING DATE (FEBRUARY 27TH) FOR APPEAL TO PLANNING COMMISSION APPROVAL OF VARIANCE VAR23-88A(2670 HEMLOCK AVENUE; MARY PHILLIPS, APPELLANT) A-10 SET HEARING DATE (FEBRUARY 27TH) FOR APPEAL OF PLANNING COMMISSION'S APPROVAL OF TRACT MAP 1529; TWILA BREEN SUBDIVISION (NORTH SIDE OF MIMOSA STREET BETWEEN IRONWOOD AVENUE AND HILL STREET; PAUL PRICE, APPELLANT) A-11 AUTHORIZATION FOR CONTRACT OF CUSTODIAL SERVICES IN CITY OFFICE AREAS TO SERVICE MASTER BUILDING MAINTENANCE OF SAN LUIS OBISPO A-12 RESOLUTION NO. 15-89 URGING ENACTMENT OF LEGISLATION TO REQUIRE MOTOR- CYCLISTS TO WEAR HELMETS IN CALIFORNIA (AB8; FLOYD) A-13 RESOLUTION NO. 18-89 RATIFYING THE CITY EMERGENCY SERVICES DIRECTOR'S DECLARATION OF EXISTENCE OF A LOCAL EMERGENCY CAUSED BY THE SOUTH T- PIER FIRE, AND DESIGNATING THE CITY ADMINISTRATOR AS THE AUTHORIZED AGENT OF THE CITY FOR PURPOSES OF OBTAINING STATE DISASTER ASSISTANCE B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 343 AMENDING CHAPTER 5.24 OF THE MORRO BAY MUNICIPAL CODE REGARDING QUALIFICATIONS FOR A TAXI CAB DRIVER'S PERMIT (SECOND READING/ADOPTION) B-2 ORDINANCE NO. 344 AMENDING ZONING ORDINANCE TO REZONE APPROXIMATELY 11,000 SQUARE FEET OF LAND LOCATED AT THE SOUTHEAST CORNER OF SEQUOIA COURT AND IRONWOOD AVENUE FROM R-A TO R-1 (LUP/ZOA 01-87; JIM MERZON, APPLICANT) SECOND READING/ADOPTION B-3 RESOLUTION NO. 14-89 ESTABLISHING THE 1989 WATER ALLOCATION PROGRAM AND RESIDENTIAL CONSTRUCTION WAITING LISTS C. NEW BUSINESS C-1 RESOLUTION NO. 10-89 APPROVING SUBLEASE ON A PORTION OF LEASE SITE 67 TO DALE LEWIS FOR A RETAIL CLOTHING SHOP; AND ADDING AND DELETING PER- MITTED USES ON LEASE SITE 67/67W (575 EMBARCADERO; VIOLE, LEASEHOLDER) C-2 RESOLUTION NO. 9-89 APPROVING AMENDMENT TO LEASE AGREEMENT ON LEASE SITE 78-79W FOR ALLOWANCE OF ON -SITE ALCOHOL BEVERAGE SALES (701 EMBARCADERO; DBA FLYING DUTCHMAN RESTAURANT) C-3 HARBOR ADVISORY BOARD RECOMMENDATION ON FLOATING DOCK EXPERIMENTAL PROGRAM; RESOLUTION NO. 11-89 ADOPTING REGULATIONS FOR USE OF FLOATING DOCK D-1 APPEAL HEARING FOR PROTEST OF 1988 WEED ABATEMENT CHARGES 2 D-2 RESOLUTION NO. 16-89 ADOPTING COASTAL COMMISSION CERTIFICATION OF ZON- ING ORDINANCE AMENDMENT 01-87 (SOUTHEAST CORNER OF SEQUOIA COURT AND IRONWOOD AVENUE; JIM MERZON, APPLICANT) D-3 RESOLUTION NO. 17-89 AUTHORIZING A GRANT APPLICATION FOR COMMUNITY DEVELOPMENT BLOCK GRANT TECHNICAL ASSISTANCE TO STUDY THE POTENTIAL FOR CONVERSION OF MOTELS TO EFFICIENCY HOUSING UNITS D-4 CONTINUED APPEAL HEARING ON PLANNING COMMISSION DENIAL (RESOLUTION NO. 92-88) TO RE -ISSUE WATER EQUIVALENCIES TO THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION (FSLIC) FOR COMPLETION OF BAYSHORE VILLAGE CONDOMINIUM PROJECT (FEDERAL ASSET DISPOSITION ASSOCIATION, AGENT; 188 BAYSHORE DRIVE, 48 UNITS) CONTINUE TO NEXT MEETING D-5 INTRODUCTION OF RECOMMENDED CAPITAL IMPROVEMENT BUDGET FOR FY88-89 NONE F. ADJOURNMENT COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. 3 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 14, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. ROLL CALL PRESENT: Rose Marie John Baker John Lemons Jeff Odell Tom Wuriu Sheetz Mayor Councilmember Councilmember Councilmember Councilmember ABSENT: None STAFF: Gary Napper Judy Skousen Louise Burt Alan Davis Ardith Davis Bill Farrel Forrest Henderson Nick Nichols Steve Wolter City Administrator City Attorney Finance Director Harbor Director City Clerk Community Develop. Dir. Asst. City Admin. Public Works Dir. Recreation & Parks Dir. Reverend Harold Fry of the United Methodist Church gave the invo- cation, and Horace Strong led the Pledge of Allegiance. PUBLIC COMMENT 1. Nelson Sullivan referred to Item C-3 regarding floating docks. He believed Council should not approve any more perma- nency to floating docks until the implications of the program are studied more thoroughly; he said an EIR should be prepared and a CEQA determination made before the docks are made permanent. 2. Mary Phillips, 2645 Ironwood, discussed refuse fran- chise and recycling. She was concerned garbage rates are already going to be increased by Cattaneo, and a recycling program being considered will also derive more money for the contractor. 3. Linda Merrill, 391 Sequoia, spoke to Item A-12 regard- ing support of legislation to require mandatory use of helmets when using a motorcycle. She agreed helmets should be mandatory for minors only; adults can make their own decision which in most cases will be to wear a helmet. DECLARATION OF FUTURE AGENDA ITEMS 1. Councilmember Lemons referred to a memo from the City Attorney regarding possible conflicts of interest for Councilmem- bers making decisions on property in cases where they live within MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 14, 1989 PAGE 2 a certain distance from the subject property. He is concerned he voted on the Caratan rezoning study at the last Council meeting and he should have abstained; he believed other Councilmembers may have the same conflict. Mayor Sheetz directed the City Attorney to look into the matter and advise Council as to action, if any, they should take. A. CONSENT CALENDAR Mr. Napper recommended Council approve the minutes as submitted. Mr. Napper recommended Council reject all bids due to irregulari- ties, and instruct staff to re -advertise the project for bid. A-3 RESOLUTION NO. 13-89 ACCEPTING OFFER OF DEDICATION OF RIGHT- OF-WAY; PINEY WAY BETWEEN VISTA AND PINEY LANE, AND A STRIP OF LAND FOR DRAINAGE PURPOSES WESTERLY OF THE SOUTHERLY TERMINUS OF PINEY LANE Mr. Napper recommended Council adopt Resolution No. 13-89. A-4 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (WISE) Mr. Napper recommended Council deny the claim, and authorize the City Clerk to sign and mail the rejection letter. A-5 ACCEPTANCE OF NEW CHAMBER OF COMMERCE REPRESENTATIVE TO CITY COMMUNITY PROMOTIONS COMMITTEE (CADENASSO) Mr. Napper recommended Council appoint Sil Cadenasso to the Com- munity Promotions Committee representing the Morro Bay Chamber of Commerce. A-6 RESOLUTION NO. 12-89 AWARDING CONTRACT FOR PROJECT NO. PW88- 02; CITY PARK RESTROOM AND BUS SHELTER Mr. Napper recommended Council adopt Resolution No. 12-89. A-7 1988 ANNUAL REPORT ON MOBILE HOME RENT CONTROL PROGRAM Mr. Napper recommended Council accept the report for file. A-8 STATUS REPORT ON GENERAL PLAN/LOCAL COASTAL_ PROGRAM REFORMAT Mr. Napper recommended Council accept the report for file. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 14, 1989 PAGE 3 A-9 SET HEARING DATE (FEBRUARY 27TH) FOR APPEAL TO PLANNING COM- MISSION APPROVAL OF VARIANCE VAR23-88 (2670 HEMLOCK AVENUE; MARY PHILLIPS. APPELLANT) Mr. Napper recommended Council set the hearing date for February 27th, and instruct staff to prepare the appropriate notices and reports. A-10 SET HEARING DATE (FEBRUARY 27TH) FOR APPEAL OF PLANNING COM- MISSION'S APPROVAL OF TRACT MAP 1529; TWILA BREEN SUBDIVI- SION (NORTH SIDE OF MIMOSA STREET BETWEEN IRONWOOD AVENUE AND HILL STREET; PAUL PRICE, APPELLANT) Mr. Napper recommended Council set the hearing date for February 27th, and instruct staff to prepare the appropriate notices and reports. A-11 AUTHORIZATION FOR CONTRACT OF CUSTODIAL SERVICES IN CITY OFFICE AREAS TO SERVICE MASTER BUILDING MAINTENANCE OF SAN LUIS OBISPO Mr. Napper recommended Council award a custodial contract to Ser- vice Master Building Maintenance of San Luis Obispo in the annual amount of $17,928 for janitorial services in City office areas. A-12 RESOLUTION NO. 15-89 URGING ENACTMENT OF LEGISLATION TO REQUIRE MOTORCYCLISTS TO WEAR HELMETS IN CALIFORNIA (AB 8; FLOYD) Mr. Napper recommended Council adopt Resolution No. 15-89. A-13 RESOLUTION NO. 18-89 RATIFYING THE CITY EMERGENCY SERVICES DIRECTOR'S DECLARATION OF EXISTENCE OF A LOCAL EMERGENCY CAUSED BY THE SOUTH T-PIER FIRE. AND DESIGNATING THE CITY ADMINISTRATOR AS THE AUTHORIZED AGENT OF THE CITY FOR PURPOSES OF OBTAINING STATE DISASTER ASSISTANCE Mr. Napper recommended Council adopt Resolution No. 18-89. Councilmember Lemons requested Items A-2 and A-6 be pulled for separate discussion; Councilmember Baker requested Item A-12 be pulled. MOTION: Councilmember Lemons moved for approval of the Consent Calendar with the exception of Items A-2, A-6, and A-12. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) A-2 REJECTION OF ALL BIDS FOR PROJECT NO. PW88-05, COLD MIX STORAGE BUILDING AT CORPORATION YARD Councilmember Lemons discussed the irregularity which consisted of the low bidder submitting a bid security bond of $78.50 instead of the required $785.00 (10% of the bid); when notified MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 14, 1989 PAGE 4 the bidder provided the City with the required security amount. Councilmember Lemons said it is an obvious arithmetic error and believes Council should waive the irregularity as minor and award the bid to Wolfe's Maintenance & Construction Company. Ms. Skousen stated Council can waive the irregularity if they wish. She noted the City has received recent criticism from the construction industry on the manner in which the City follows the Contractor's Code; staff decided to recommend the conservative approach on this item. Mayor Sheetz stated the City has to draw the line somewhere, and believed the bid specifications should be followed. MOTION: Councilmember Lemons moved the irregularity be deter- mined minor and waived, and the bid be awarded to the low bidder, Wolfe's Maintenance and Construction Com- pany, in the amount of $7,850. The motion was seconded by Councilmember Baker and carried with Mayor Sheetz voting no. (4-1) A-6 RESOLUTION NO. 12-89 AWARDING CONTRACT FOR PROJECT NO. PW88- 02; CITY PARK RESTROOM AND BUS SHELTER Councilmember Lemons stated he had been contacted by citizens concerned the old restroom facility will be demolished before the new one is constructed. He asked if the project could be con- structed to avoid this? Mr. Nichols explained the construction difficulties and increased costs in trying to accomplish this. He said the public will only be inconvenienced for one to two months. Mr. Napper stated temporary restroom facilities will be provided in the interim, and the shuffleboard equipment stored in the closet of the old restroom can be kept at the Fire Department for easy access. MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 12-89. The motion was seconded by Councilmem- ber Wuriu and unanimously carried. (5-0) A-12 RESOLUTION NO. 15-89 URGING ENACTMENT OF LEGISLATION TO REQUIRE MOTORCYCLISTS TO WEAR HELMETS IN CALIFORNIA (AB 8: FLOYD) Councilmember Baker spoke in favor of this Resolution and re- viewed, for Ms. Merrill, some of the statistics on which the leg- islation is based. He is in favor of the legislation because of the substantial public safety involved and the possible cost sav- ings to the taxpayer. Councilmember Wuriu agreed; he is strongly in favor of a law which would make even one more person wear a safety helmet on a motorcycle. MOTION: Councilmember Baker moved for the adoption of Resolu- tion No. 15-89. The motion was seconded by Councilmem- ber Wuriu and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 14, 1989 PAGE 5 B. UNFINISHED BUSINES B-1 ORDINANCE NO. 343 AMENDING CHAPTER 5.24 OF THE MORRO BAY MUNICIPAL CODE REGARDING QUALIFICATIONS FOR A TAXI CAB DRIVER'S PERMIT (SECOND READING/ADOPTION) Mr. Napper stated this Ordinance amends the City's requirements for licensing taxi cab drivers to conform with prevailing prac- tices. Upon adoption, it will become effective March 16, 1989. MOTION: Councilmember Lemons moved Ordinance No. 343 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Napper read Ordinance No. 343 by title and number only. MOTION: Councilmember Lemons moved for the adoption of Ordi- nance No. 343 as second and final reading. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) •1;7���I;��L•]_��.�C�)MIL'[.!•]3�kJ�l�L�'d�I�FJ3[e�i7:7•j�I•`` _ • ; • _ - Mr. Napper stated this Ordinance amends the City's Local Coastal Program and zoning map to rezone a single parcel from Low -Density Residential to Low -Medium Density Residential. - It will become effective March 16, 1989. MOTION: Councilmember Lemons moved Ordinance No. 344 be read by title and number only. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mr. Napper read Ordinance No. 344 by title and number only. MOTION: Councilmember Lemons moved for the adoption of Ordi- nance No. 344 as second and final reading. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Councilmember Odell stepped down from consideration on this item because of a conflict of interest. Mr. Napper stated the Resolution had been prepared at Council direction. He noted the Resolution clarifies there will be sepa- rate lists for multiple -family dwelling and single family dwelling projects. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 14, 1989 PAGE 6 Mayor Sheetz asked if the Resolution contains the 1.5:1 retrofit savings ratio adopted by Council? Mr. Napper said yes; he noted a 1:1 ratio would require 10-12 homes be retrofitted for a full water equivalency, whereas a 1.5:1 ratio requires 12-16 homes be retrofitted. Under the adopted "blend" program, one-half of a full water equivalency must be earned by retrofit; therefore, 6-8 homes must be retrofitted. Mayor Sheetz stated Council voted to approve a "blend" program against staff recommendation; this is the second year staff has recommended against the program and she believes it is an error to approve it. Construction should be allowed on a strictly retrofitted program; she will vote against the Resolution. Coun- cilmember Lemons stated he is convinced the pipeline replacement program does save water. MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 14-89. The motion was seconded by Councilmem- ber Wuriu and carried on the following roll call vote: AYES: Baker, Lemons, Wuriu NOES: Sheetz ABSTAIN: Odell Councilmember Odell returned to his seat. C. NEW BUSINES C-1 RESOLUTION NO. 10-89 APPROVING SUBLEASE ON A PORTION OF LEASE SITE 67 TO DALE LEWIS FOR A RETAIL CLOTHING SHOP; AND ADDING AND DELETING PERMITTED USES ON LEASE SITE 67/67W (575 EMBARCADERO; VIOLS, LEASEHOLDER) Mr. Davis stated the leaseholder has requested Council approve a sublease for a portion of this site to Dale Lewis for operation of a ladies clothing store. He noted Mr. Lewis already operates two ladies clothing stores on the Embarcadero in close proximity, and it is recommended one store be eliminated in exchange for approval of this sublease. Mr. Lewis has advised of his inten- tion to vacate the current business on Lease Site 71/72. The proposed Resolution approves the sublease with this condition, and changes the uses on the Lease Site to delete "photo studio and related sales" and add "retail clothing sales". Councilmember Baker questioned City policy to phase -out residen- tial uses on the lease sites. Mr. Davis stated the City manages a Tidelands Trust for the State of California; the State has determined residential uses are not appropriate for Tidelands properties. As leases expire, are renewed, or other changes are requested by the leaseholder, the City attempts to phase out or eliminate residential uses. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 14, 1989 PAGE 7 Councilmember Odell asked what the timeperiod is for the closure of the clothing store on Lease Site 71/72? Mr. Davis stated he would work with Mr. Lewis and expected it would be "within a rea- sonable period of time". MOTION: Councilmember Baker moved for adoption of Resolution No. 10-89. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) S • • \• •_i•N11 11111• C \_ Mr. Davis stated the Van Beurden brothers recently acquired a liquor license through the Alcoholic Beverage Control Board, and are requesting Council approve the additional use of "serving of alcoholic beverages" on Lease Site 78-79W. Mr. Davis stated his- torical review of the lease indicates "restaurant" and "bar" were approved uses until 1972; the "bar" use was deleted and a "gift shop" use was added. Staff recommends approval of the use. MOTION: Councilmember Lemons moved for adoption of Resolution No. 9-89. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) QW aim Vue\ • ; 1• • _ \ _� •\ Mr. Davis stated the City installed an experimental floating boat dock in 1985 for a three-year period. He reviewed usage and tests to determine if there were any adverse affects on the Bay's environment as a result of the docks; no detrimental affects were discovered. The Harbor Advisory Board has reviewed this use and recommends continuance with conditions: the City charge for use of the dock for purposes of maintenance due to natural deteriora- tion; the charges be similar to those for City -owned offshore moorings; use of the dock be on a first come, first served basis without consideration for local or transient status; and use of the dock for more than 30 days in any 6 month period be prohib- ited. A Resolution setting forth the conditions is presented for Council approval. Mayor Sheetz asked about Nelson Sullivan's comments regarding the need for an EIR. Mr. Davis indicated a large project or addi- tional projects would require an EIR; this floating dock received review and permits from the Coastal Commission and Corps of Engineers. MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 11-89. The motion was seconded by Councilmem- ber Baker and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 14, 1989 PAGE 8 D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 APPEAL HEARING FOR PROTEST OF 1988 WEED ABATEMENT CHARGES Mr. Nichols stated this meeting had been legally noticed to all property owners benefitting from the City's 1988 Weed Abatement Program; it is the opportunity for them to appeal the charges. He noted the City abated 156 parcels last year. No protests have been received to date, and if none are received this evening, it is in order for Council to release the $1,898.53 contractor's retention fund. Mayor Sheetz opened the hearing to the public for comments. Mary Phillips asked if the property owners were notified by cer- tified mail? Mr. Nichols said they were. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Wuriu moved the 1988 Weed Abatement appeal period be closed and staff be authorized to release the retention monies ($1,898.53) due the 1988 contractor. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) D-2 RESOLUTION NO. 16-89 ADOPTING COASTAL COMMISSION CERTIFICA- TION OF ZONING ORDINANCE AMENDMENT 01-87 (SOUTHEAST CORNER OF SEQUOIA COURT AND IRONWOOD AVENUE; JIM MERZON, APPLICANT) Mr. Napper stated this is an administrative and procedural step to complete the property owner -initiated Coastal Land Use Plan amendment. The Resolution accepts the Coastal Commission's cer- tification to the amendment, and agrees the City will issue coastal development permits on the property. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. MOTION: Councilmember Baker moved for the adoption of Resolu- tion No. 16-89. The motion was seconded by Councilmem- ber Lemons and unanimously carried. (5-0) D-3 RESOLUTION NO. 17-89 AUTHORIZING A GRANT APPLICATION FOR COMMUNITY DEVELOPMENT BLOCK GRANT TECHNICAL ASSISTANCE TO STUDY THE POTENTIAL FOR CONVERSION OF MOTELS TO EFFICIENCY HOUSING UNITS Councilmember Odell stepped down from consideration on this item due to a conflict of interest. Mr. Napper reviewed the City's past successes in obtaining Commu- nity Development Block Grants (CDBG) for specific projects, and plans to apply for 1989 project funds. The funds available now are for planning and technical assistance grants rather than pro- 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 14, 1989 PAGE 9 ject grants, and the City intends to file an application to study the conversion of older motels to low-cost affordable efficiency housing units. The cost of the study is estimated at $30,000 of which CDBG will be asked to pay $24,000 with the City providing a local match of $6,000. Councilmember Baker asked if the program would force motel owners to convert? Mr. Napper stated no; it is a decision individual motel owners will make for themselves. Councilmember Wuriu asked if there has been indication any motel owners are interested in this program? Jeanette Duncan, Execu- tive Director of People's Self -Help Housing, said this is a new CDBG program. The proposal offers less -competitive motel owners the opportunity to evaluate conversion and access low -interest loans to upgrade their property in exchange for offering the units as monthly rentals. She noted some interest has been expressed by the Motel Association; this grant is for technical assistance to study the feasibility of this program in Morro Bay. Councilmember Lemons was concerned with Section 2 of proposed Resolution No. 17-89 which states the Council has reviewed the citizen participation plan: what citizen participation plan? It was explained by staff and People's Self -Help Housing the public hearing this evening is the citizen participation plan wherein Council will consider comments from the public. Staff is still waiting for government forms to explain and comply with grant regulations. Council agreed Section 2 should be amended to state "The City Council has reviewed the citizen participation plan aa 14. 1989 for compliance..." Mr. Farrel suggested Council insert the words "up to" before $6,000 in Section 3; it may be the City's share will be less if the grant award is less. Councilmember Baker asked about the success of this type of pro- ject, and noted some federal housing assistance programs turn into disasters. Ms. Duncan believed dispersing loans directly to property owners to upgrade their property rather than the govern- ment purchasing property and managing housing projects from a distance allows for a better success. Mayor Sheetz opened the hearing to the public for comments. Mary Phillips was concerned the City will force motel owners to participate in the program, and asked if the motel owners had been contacted as to their interest in the program? Mr. Farrel stated the grant application is not for a project; it is to study and survey the motel owners population to determine if a program would be accessed and successful in the City. It will be a com- pletely voluntary program. Mayor Sheetz closed the hearing to the public. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 14, 1989 PAGE 10 Councilmember Lemons stated if a motel owner does not want to be considered, the consultant should not survey that motel. Mr. Farrel stated he would make that adjustment to the work program. Councilmember Lemons asked if it would be possible for a young family with children to live in the efficiency units? Ms. Duncan stated the program targets the elderly and handicapped; most motel units are not large enough to accommodate families. Councilmember Lemons asked if the City will have to amend zoning ordinances if some motels convert to residential uses? Ms. Duncan stated it is a possibility and will be considered in the feasibility report. Mr. Farrel commented many of the questions Council has will be answered in the feasibility study and survey. MOTION: Councilmember Wuriu moved for adoption of Resolution No. 17-89 as amended. The motion was seconded by Mayor Sheetz and carried with Councilmember Odell abstaining. (4-0-1) Councilmember Odell returned to his seat. D-4 CONTINUED APPEAL HEARING ON PLANNING COMMISSION DENIAL (RESOLUTION NO. 92-88) TO RE -ISSUE WATER EQUIVALENCIES TO THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION (FSLIC) FOR COMPLETION OF BAYSHORE VILLAGE CONDOMINIUM PROJECT (FEDERAL ASSET DISPOSITION ASSOCIATION. AGENT; 188 BAYSHORE DRIVE. 48 UNITS) CONTINUE TO NEXT MEETING Mr. Napper stated staff has been following Council's last direc- tion on this item by negotiating with the parties involved to impose certain conditions should Council decide to re -issue water equivalencies to the Bayshore development. Mr. Napper indicated the initial negotiation meeting was positive and negotiations are still continuing. He requested Council continue this item to the next meeting. Mayor Sheetz opened the hearing to the public for comments. Linda Merrill, 391 Sequoia, encouraged Council to require the re- moval or lowering of the gray fence surrounding this development. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Lemons moved the hearing be continued to February 27, 1989. The motion was seconded by Coun- cilmember Wuriu and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 14, 1989 PAGE 11 D-5 INTRODUCTION OF RECOMMENDED CAPITAL IMPROVEMENT BUDGET FOR FY88-89 Mr. Napper reviewed the recommended Capital Improvement Budget. He said staff is recommending $1.1 million be reserved as the City's unallocated Fund Balance; this leaves $950,866 available for capital improvement projects, equipment replacement, and aug- mentation of reserve accounts. The capital improvement projects recommended were reviewed in detail in the staff report. Mr. Napper stated staff prepared a 15-year list of capital improvement and fixed asset replacement needs to examine long- range needs; the list totalled $122.6 million which equates $8.2 million per year if Council were to budget for these items. Mr. Napper stated no water projects are recommended because water funds from water distribution and hook-up fees did not material- ize. He attributed this to less use of water through mandatory conservation, and a reduction in full water hook-up fees. Councilmember Baker stated he agrees with Chief Zerr's request for a fire ladder truck, yet understands Mr. Napper's position having to divide the money with the various needs in the City. He asked Mr. Napper what action the Council can take to facili- tate the purchase of a firefighting aerial device for the Fire Department? Mr. Napper stated he has requested the Chief inves- tigate some alternatives; perhaps other agencies are looking at a similar purchase and economies of scale could be realized with a joint purchase. He has also requested the Finance Director investigate lease -purchase options. Councilmember Wuriu commented on the inability to see the dis- plays on the City's overhead projector; he believed there must be a visual device available to improve the public's ability to see the charts being displayed. Councilmember Lemons asked how the City would fund a water pro- ject should one be available to come on-line suddenly. Ms. Burt stated there is currently $475,000 in the Water Project Fund. She also stated the City can borrow money from other accounts to fund a project if it is that imminent. Mr. Nichols reviewed the current status of water projects and the potential time -frame for each; a number of projects are in the planning/feasibility stage which may take a year or more to complete. Mayor Sheetz opened the hearing to the public for comments. Jane Von Koehe, 2755 Hemlock, stated the City budget is double what it was eight years ago and questioned how the Recreation budget is funded. Mr. Napper stated the Department is working toward a self-sustaining goal, but currently relies on the Gen- eral Fund for 35% of its budget. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 14, 1989 PAGE 12 Ms. Von Koehe asked about funds originally intended for equipment replacement for Coleman Park. Mr. Mapper stated Council reallo- cated those funds to park improvement purposes at another park. Mayor Sheetz closed the hearing to the public. Councilmember Baker questioned the loan balance to the Harbor Fund of $500,000, and how it is paid back to the General Fund. Mr. Mapper explained in the past Council has chosen not to pay back the balance, but instead allocate funds to capital improve- ment projects such as the North T-pier sprinkler system and main- tenance recommended in this capital budget. Council has the option to re -pay the money back to the General Fund. Councilmember Wuriu asked how much bond indebtedness does the City have? Mr. Mapper stated the City is currently retiring a very old street improvement district. Also, the City is indebted for the Community Center at the rate of $200,000 per year for ten years. Councilmember Lemons asked various questions concerning the rec- ommended projects to which staff responded. He asked how neces- sary the Bali Street storm drain project is? Mr. Mapper stated it is the second highest priority in the Storm Drain Improvement Master Plan; he is trying to include at least one project from the approved Storm Drain Master Plan in the budget each year. The number one priority is the Main Street/Morro Bay Boulevard storm drain project estimated at $88,000. MOTION: Councilmember Lemons moved to authorize the FY 88-89 Capital Improvement Budget as submitted. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) E. CLOSED SESSION None. F. ADJOURNMENT MOTION: Councilmember Wuriu moved the meeting be adjourned. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) The meeting adjourned at 8:46 p.m. Recorded by: ARDITH DAVIS City Clerk Q�,� �o, � � �y �-�-� � � � . w� �,�,� ,mod 6 City .Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay Is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. SPECIAL JOINT MEETING WITH WATER ADVISORY BOARD JANUARY 30, 1989 VETERANS MEMORIAL HALL - 7:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL PLEDGE OF ALLEGIANCE pUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so by standing. When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments should normally be limited to three minutes. D-1 CONSIDERATION OF RESCINDING THE EMERGENCY WATER CONSERVATION ORDINANCE AND PRACTICES D-2 WATER RESOURCE PROJECTS STATUS REPORT F. ADJOURNMENT COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. 1 MINUTES - MORRO BAY CITY COUNCIL SPECIAL JOINT MEETING WITH WATER ADVISORY BOARD - JANUARY 30, 1989 VETERANS MEMORIAL HALL - 7:00 P.M. Mayor Sheetz called the meeting to order at 7:00 p.m. [0—OWAILIC41INCN �J PRESENT: Rose Marie John Baker John Lemons Jeff Odell ABSENT: Tom Wuriu WATER ADVISORY BOARD Sheetz Mayor Councilmember Councilmember Councilmember Councilmember Richard Kitzman Chairperson Cecil Carey Boardmember Jean Cartwright Boardmember Richard Fisher Boardmember Harry Hoffman Boardmember Ken Maloney Boardmember Bill Mazzacane Boardmember Steven Paige Boardmember Ken Powell Boardmember STAFF: Gary Napper City Administrator Judy Skousen City Attorney Ardith Davis City Clerk Nick Nichols Public Works Dir. Dave Norton Water Engineer Mayor Sheetz led the Pledge of Allegiance. PUBLIC COMMENT None. D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 CONSIDERATION OF RESCINDING THE EMERGENCY WATER CONSERVATION ORDINANCE AND PRACTICES Mr. Napper stated this joint meeting with the Water Advisory Board had been scheduled to discuss water projects the City is working on, costs therefor, and hopefully to receive direction from'Council on which project(s) to pursue. Mr. Nichols said as a result of the loss of the pumping capacity of Well No. 12 in the Chorro Basin last September, Council adopted an urgency ordinance in October 1988 establishing manda- MINUTES - MORRO BAY CITY COUNCIL SPECIAL JOINT MEETING/WATER ADVISORY BOARD JANUARY 30, 1989 - PAGE 2 tory water conservation measures. He noted the lack of rainfall and increased agricultural uses as contributing to the low water situation. Since the institution of mandatory water conservation measures, the City has received some rainfall but continues to be behind the usual amount expected for this time of year. Well levels are static and Well No. 12 was returned to service in December 1988. However, the necessity for mandatory water con- servation has passed because the City is no longer experiencing reduced well pumping capacity, and tanks are being recharged daily. Staff recommends Council rescind the mandatory water con- servation ordinance; an ordinance to this effect can be prepared for Council at the February 14th meeting. Mayor Sheetz opened the hearing to the public for comments. Mayor Sheetz believed the requirement for restaurants to serve water to their customers only upon request should be continued year-round; she believes it saves substantial water. Mr. Powell asked if staff recommended a moratorium on water per- mits at a recent Council meeting? Mr. Napper stated staff recom- mended Council wait until the end of the rainy season to decide whether or not to allocate water. Mr. Powell suggested it is important to continue conservation. Mr. Nichols stated the ordinance was enacted as an emergency mea- sure; he reviewed the 3-phased water conservation program estab- lished by the Water Advisory Board and City Council (voluntary, mandatory, and rationing), and said the Phase II emergency has been alleviated for the time being. Councilmember Lemons asked what problems the City is having with enforcement? Mr. Napper stated people wish to resume washing their cars without having to use a bucket, they do not like to be restricted to certain days for watering their lawns, the con- struction industry would like to be able to use potable water for compaction in some cases, and commercial fishermen wish to wash their boats down with fresh water. Mr. Fisher suggested the City establish a new trigger mechanism to initiate various stages of the water conservation program. Various members of the Water Advisory Board expanded on this recommendation. Mayor Sheetz suggested sending the matter to staff to prepare recommendations on the "trigger mechanism". She was concerned the Council may be sending the wrong message to the public by not allocating water for building, and then allowing the community to use water without conservation. Councilmember Lemons did not believe the twice -weekly watering schedule is a hardship; that requirement should be kept as a year-round practice as well as the requirement to irrigate before LOAM and after 4PM. He suggested there may be some alternatives MINUTES - MORRO BAY CITY COUNCIL SPECIAL JOINT MEETING/WATER ADVISORY BOARD JANUARY 30, 1989 - PAGE 3 to the absolute prohibition against watering City parks and school lawns, and agreed restaurants should continue to serve water on request only. The ordinance should also be changed re- garding the prohibition against new landscaping. Councilmember Lemons said the "trigger mechanism" seemed a very unscientific approach and not as reliable as relying on the expertise of the people in the Water Department who review the entire situation; he is not comfortable marking a certain level in a well as a signal for action. Mr. Napper noted the ordinance was enacted as an emergency mea- sure and that emergency no longer exists; however, there are practices in the ordinance which make sense to use year-round. He suggested Council revoke the urgency ordinance, and refer the matter to staff for preparation of a new program of water conser- vation to apply year-round. This will allow review by the Water Advisory Board and the public to comment on a new level of manda- tory conservation. He also pointed out enforcement of a year- round ordinance needs to be discussed and budgeted. Councilmember Lemons commented the year-round conservation ordi- nance should be in effect before or at the same time Council re- scinds the emergency ordinance. Council and Water Advisory Board consensus was the item be referred to the Water Advisory Board for comments and recommenda- tions to Council. D-2 WATER RESOURCE PROJECTS STATUS REPORT Mr. Nichols stated the purpose of this item is to discuss devel- opment and financing of new water sources for the City. Mr. Nichols reviewed his staff report of January 30, 1989 which detailed the City's existing groundwater supply and reviewed numerous projects for new water which the City has been pursuing. Among these are: the Coastal Streams Diversion and Storage Pro- ject, Phase I; Water Treatment Plant for the Coastal Streams Pro- ject; Phase II of the Coastal Streams Project to include a San Bernardo Creek Dam and Reservoir; State Water Project; Domenghini Flat Wells; and Toro Creek Wells. Mr. Nichols also reviewed the possibilities of recharging basins, wastewater reclamation, de- salinization, dual water systems, and the Nacimiento Lake water supply. Included in the report is a detailed costs analysis of the water projects, and methods of funding. Mr. Nichols reviewed these items emphasizing the need for Council to provide direction so staff can concentrate its efforts on one or two of the most promising projects. Council asked questions regarding the processing time for receiv- ing appropriative rights permits. Councilmember Baker asked why stream studies from other projects cannot be used in order to MINUTES - MORRO BAY CITY COUNCIL SPECIAL JOINT MEETING/WATER ADVISORY BOARD JANUARY 30, 1989 - PAGE 4 provide statistics for a City project? Randy Benting, Department of Fish and Game, stated you cannot remove information from one stream and place it somewhere else; he noted the Fish and Game Department will be conservative on the side of the resource and encouraged Council to follow all steps outlined by Mr. Nichols. Mayor Sheetz asked if it might be advantageous to attempt to encourage other agencies to participate in the San Bernardo Creek project, and suggested another meeting with the San Luis Obispo City Council. Mr. Napper noted the reluctance of other agencies to participate because of costs; a better approach is to contact them on a staff level and request they explore the subject with their legislative bodies. Bruce Risley spoke in favor of the Coastal Streams Diversion Pro- ject and encouraged Council to renew ties with the City of San Luis Obispo to speed-up the process by holding a joint meeting with them. Randy Ruff suggested a regional approach and believed the County of San Luis Obispo should be contacted as the more likely partner to a dam project. Charles Palmer was concerned if there is a 100 year storm and water goes over the dam at Whale Rock, the water will be charged against Morro Bay rather than the City of San Luis Obispo. He said the City needs a holding pond as part of the Coastal Streams Project. Mayor Sheetz said the City of San Luis Obispo has said in case of a spill, the first water belongs to the City of San Luis Obispo. Richard Kitzman stated the Water Advisory Board in the past has been in favor of including the San Bernardo Creek Dam with the Coastal Streams Project. They also believe local control is im- portant in cases like this. Mayor Sheetz asked if the State Water Project depends upon 100% participation by all County agencies? Mr. Nichols stated it is possible other agencies will pick-up the costs of those not wish- ing to participate. Councilmember Lemons stated the County may also agree to take the surplus or sell it to other water contractors. Mr. Nichols explained the complexities of delivering State Water Project water to the City and the possibility of exchanging our share for Whale Rock water. Randy Ruff questioned the proposed costs for the State Water Pro- ject, noting County taxpayers are already contributing to the State Water Project. Mr. Nichols stated the funds being col- lected by the County are not part of his calculations. Coun- cilmember Lemons remarked those costs will be paid for regardless if Morro Bay decides not to accept State water. 9 0 MINUTES - MORRO BAY CITY COUNCIL SPECIAL JOINT MEETING/WATER ADVISORY BOARD JANUARY 30, 1989 - PAGE 5 Mr. Domenghini was asked how much water he pumps out of Domenghini Flats per year; Mr. Domenghini stated more than 500 acre feet. Mike Armstrong stated farmers in the Toro Creek area support the Coastal Streams Project and are against any City wells in that basin. With regard to costs, Mr. Nichols stated the City will need new revenue of $500,000 to $1.5 million per year to develop new water resources. He reviewed the possibilities for generating these funds including increasing water rates, increasing new connection fees, establishing an assessment district, increasing the sales tax, and/or establishing a special tax. Councilmember Lemons commented the City should consider installing a desal plant as a possible emergency backup source of water. Mr. Nichols stated the impact as a result of costs for any pro- ject is going to be substantial on the community. He requested Council provide policy direction on what projects they would like staff to develop and work on in the next few years, and how they wish to fund them Mayor Sheetz stated Council is not in a position to make a deci- sion tonight; she requested the matter be referred to the Water Advisory Board for recommendations to the City Council. She said the Water Advisory Board could take more than one meeting to dis- cuss the item if necessary, and requested staff agendize the item for the second meeting in March 1989. Mr. Napper stated staff has been pursuing all of these projects within limited resources; it is necessary Council focus on one or two projects for budgeting purposes and reality. F. MOTION: Councilmember Odell moved The motion was seconded unanimously carried. (4-0) The meeting adjourned at 10:01 p.m. Recorded by: ARDITH DAVIS City Clerk the meeting be adjourned. by Councilmember Baker and City. Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING - JANUARY 23, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so by standing. When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments should normally be limited to three minutes. DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the fol- lowing actions are approved without discussion. A-1 CITY COUNCIL MINUTES OF THE ADJOURNED REGULAR MEETING OF DECEMBER 28, 1988, THE SPECIAL MEETING OF DECEMBER 30, 1988, AND THE REGULAR MEETING OF JANUARY 9, 1989 A-2 EXPENDITURE REPORT - DECEMBER 1988 A-3 STATEMENT OF INVESTMENTS - DECEMBER 1988 A-4 RESOLUTION NO. 08-89 ESTABLISHING CITY TOW SERVICE REGULATIONS AND POLICIES A-5 RESOLUTION NO. 07-89 DISAPPROVING WITHOUT PREJUDICE THE SAN LUIS OBISPO COUNTY HAZARDOUS WASTE MANAGEMENT PLAN B. UNFINISHED BUSINESS NONE C. NEW BUSINESS C-1 REQUEST FOR ASSIGNMENT OF LEASE SITE 62/62W FROM BRUCE AND KATHY LEWIS TO MORRO BAY INVESTMENTS (551 EMBARCADERO; DBA HITTLE'S TACKLE SHOP) 1 C-2 COUNCILMEMBER REQUEST FOR RE -WORDING OF CHAPTER 5 OF THE LAND USE PLAN, LOCAL COASTAL PROGRAM (PUBLIC WORKS AND LOCATING AND PLANNING NEW DEVELOPMENT) C-3 COUNCILMEMBER REQUEST TO INITIATE REZONING OF VACANT PROPERTY IN THE 400 BLOCK OF MAIN STREET (AKA "CARATAN" PROPERTY) C-4 COUNCILMEMBER REQUEST TO INITIATE ZONE CHANGE FOR VACANT BLUFF -TOP PROPERTY IN NORTH MORRO BAY (CHEVRON PROPERTY/CLEAN SEAS TRAILER SITE) C-5 ENGINEERING SERVICES CONTRACT TO EVALUATE ALTERNATIVES FOR RECONSTRUC- TION OF SOUTH T-PIER u f. mr, f-4.z D-1 ORDINANCE NO. 343 AMENDING CHAPTER 5.24 OF THE MORRO BAY MUNICIPAL CODE REGARDING QUALIFICATIONS FOR A TAXI CAB DRIVER'S PERMIT (INTRODUCTION/FIRST READING) D-2 ORDINANCE NO. 344 AMENDING ZONING ORDINANCE TO REZONE APPROXIMATELY 11,000 SQUARE FEET OF LAND LOCATED AT THE SOUTHEAST CORNER OF SEQUOIA COURT AND IRONWOOD AVENUE FROM R-A TO R-1 (LUP/ZOA 01-87; JIM MERZON APPLICANT) - INTRODUCTION/FIRST READING D-3 COMMENCEMENT OF SIX -WEEK REVIEW PERIOD FOR LOCAL COASTAL PROGRAM AMENDMENT TO REZONE "PINEY WAY VILLAGE PROPERTY" FROM R-2 TO C-1 DISTRICT (INITIATIVE MEASURE D) D-4 CONTINUED PUBLIC HEARING ON ZONING AND LAND USE PLAN AMENDMENTS TO LOCAL COASTAL PROGRAM, PLANNING AREA 5 (CASE NO. LUP/ZOA 02-88; P.G.&E., DEN-DULK, AND CITY PROPERTIES) D-5 APPEAL HEARING ON PLANNING COMMISSION DENIAL (RESOLUTION NO. 92-88) TO RE -ISSUE WATER EQUIVALENCIES TO THE FEDERAL ASSET DISPOSITION ASSOCIA- TION (FADA) FOR COMPLETION OF BAYSHORE VILLAGE CONDOMINIUM PROJECT (48 UNITS; 188 BAYSHORE DRIVE) D-6 CONTINUED HEARING ON 1988 ANNUAL WATER REPORT AND DETERMINATION OF WATER ALLOCATION PROGRAM FOR 1989 E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.9(B)(1); SIGNIFICANT EXPOSURE TO LITIGA- TION EXISTS F COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. 2 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 23, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. PRESENT: Rose Marie John Baker John Lemons Jeff Odell Tom Wuriu Sheetz Mayor Councilmember Councilmember Councilmember Councilmember ABSENT: None STAFF: Gary Napper Judy Skousen Alan Davis Bill Farrel Dave Bugher Forrest Henderson Dave Howell Nick Nichols Elane Novak City Administrator City Attorney Harbor Director Community Develop. Dir. Assoc. Planner Asst. City Administrator Police Chief Public Works Dir. Deputy City Clerk Keith Gaffney gave the invocation, and Horace Strong led the Pledge of Allegiance. PUBLIC COMMENT None DECLARATION OF FUTURE AGENDA ITEMS 1. Councilmember Lemons stated he had received information that a meeting was held concerning a grant program for two port cities in the State of California, of which Morro Bay is one, for recycling of waste materials; he requested the item be scheduled for information purposes. Mr. Napper stated the item concerns new Federal legislation for which there are no regulations as yet; staff is currently waiting to receive additional information before presenting a definitive report to Council. Councilmember Lemons commented on items that can "fall through the crack", and suggested perhaps a future agenda item needs to be scheduled to discuss keeping Councilmembers informed. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 23, 1989 PAGE 2 A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE ADJOURNED REGULAR MEETING OF DECEMBER 28, 1988, THE SPECIAL MEETING OF DECEMBER 30, 1988, AND THE REGULAR MEETING OF JANUARY 9. 1989 Mr. Napper recommended Council approve the minutes as submitted. A-2 EXPENDITURE REPORT - DECEMBER 1988 Mr. Napper recommended that Council approve the December 1988 Expenditure Report as submitted. A-3 STATEMENT OF INVESTMENTS - DECEMBER 1988 Mr. Napper recommended that Council receive and accept the report for file. A-4 RESOLUTION NO. 08-89 ESTABLISHING CITY TOW SERVICE REGULA- TIONS AND POLICIES Mr. Napper recommended that Council adopt Resolution No. 08-89. A-5 RESOLUTION NO, 07-89 DISAPPROVING WITHOUT PREJUDICE THE SAN LUIS OBISPO COUNTY HAZARDOUS WASTE MANAGEMENT PLAN Mr. Napper recommended that Council adopt Resolution No. 07-89. Councilmember Odell requested Item A-4 be pulled for separate discussion, and Councilmember Lemons requested Item A-5 be pulled. MOTION: Councilmember Odell moved for approval of the Consent Calendar with the exception of Items A-4 and A-5. The motion was seconded by Councilmember Wuriu and unani- mously carried. (5-0) A-4 RESOLUTION NO, 08-89 ESTABLISHING CITY TOW SERVICE REGULA- TIONS AND POLICIES Councilmember Odell asked if a flat rate is charged for towing the car to where it is impounded or if mileage is also charged? Dave Howell said one of the reasons for proposing the resolution is some out-of-town tow companies were charging people mileage from Morro Bay to out-of-town locations; the resolution will en- sure people having their cars impounded in Morro Bay do not pay exorbitant mileage towing fees. MOTION: Councilmember Odell moved the approval of Item A-4. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0). MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 23, 1989 PAGE 3 Councilmember Lemons asked if approving this item would prejudice or complicate the County or the City's opportunity to get the Plan adopted? Mr. Napper said the Resolution disapproves the plan "without prejudice" which indicates the City does not dis- agree with the substance of the Plan but has not had the oppor- tunity to review the Final EIR which is necessary before action can be taken on the Final Plan. The action taken tonight is sim- ilar to action being taken by San Luis Obispo, Pismo Beach, and Arroyo Grande. Mr. Napper said he has discussed this action with Mr. Hamm, the County's administrator of this program, and Mr. Hamm has no problem with this course of action. MOTION: Councilmember Lemons moved Item A-5 be approved. It was seconded by Councilmember Wuriu and unanimously carried. (5-0) B. UNFINISHED BUSINESS None C. NEW_BUSINES C-1 REQUEST FOR ASSIGNMENT OF LEASE SITE 62/62W FROM BRUCE AND KATHY LEWIS TO MORRO BAY INVESTMENTS (551 EMBARCADERO; DBA HITTLE'S TACKLE SHOP) Mr. Davis, Harbor Director, said Lease Site 62/62W was recently assigned to Bruce and Kathy Lewis from Dr. and Mrs. Hittle. The Lewises are not in compliance with the terms of their lease agreement; no business license has been applied for, no business is being operated on the premises, no insurance certificate has been received since the Lewises were assigned the lease in September 1988, and as of January 23rd, no rents have been paid from the January 1st due date. Based on this plus the financial history and credit report of the proposed assignees (John Madrid, Tom Bordonaro, Jr., and Virginia and Tom Bordonaro), both the Finance Director and City Attorney strongly recommend denial of this assignment. MOTION: Councilmember Lemons moved Council deny the assignment of Lease Site 62/62W to M.B. Investments, a Partner- ship. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Councilmember Lemons asked what effect this denial would have on the non -operational situation at this Lease Site? MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 23, 1989 PAGE 4 Judy Skousen said the City has given the Lewises ample opportu- nity to open for business after the transfer of the site to them from the Hittles in September of 1988. It is now time to require compliance with the terms of the lease. Mr. Napper indicated the Harbor Director has already notified the Lewises concerning the lease requirement to operate as a normal business on the water- front, and no action has been taken to date. Mr. John Madrid asked to be heard on the assignment of the lease to his partnership. He asked if the reason for assignment denial is because the Lewises have not complied or because the City does not approve of the proposed lessees. Mayor Sheetz asked Mr. Madrid if he had seen the Harbor Direc- tor's report? He indicated he had not. Mr. Davis indicated it is a combination of both factors; the Lewises are not in compliance with the lease terms, and there is a problem with the financial history of the proposed lessees as indicated by the City Attorney and Finance Director. Mayor Sheetz told Mr. Madrid if he would like to discuss the item further to please call her and set up an appointment. Councilmember Odell referred to Chapter 5 in the Land Use Plan which addresses water resources and stated there is information in the document which needs updating. He believed it is impor- tant to keep the Plan updated because it is referenced for devel- opment purposes. Council discussed the various sections in the LUP which need up- dating; Mr. Nichols pointed out the information in the LUP is from 1981-82 data and information known at that time. Mr. Farrel stated three ( 3 ) amendments to the LUP per year are permitted by the Coastal Act; it is a good idea to combine as many changes as possible into one request. Council decided to refer the Plan to the Water Advisory Board for recommendations on amendments. MOTION: Councilmember Odell moved to refer this item to the Water Advisory Board for their consideration, Coun- cilmember Odell also agreed to supply additional text comments to the Water Advisory Board, staff and Coun- cil. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 23, 1989 PAGE 5 STREETPROPERTY IN THE 400 BLOCK OF MAIN PROPERTY) Councilmember Odell stated he does not like the current C- VS/PD/S.4 zoning on this bluff -top area, and would like to see it rezoned back to R-1/R-2 as it was before; people in the neighbor- hood would also like to see it rezoned to R-1 or R-2. It was noted the property had been zoned C-VS to accommodate a convention center rather than to allow for motel development. Councilmember Odell said this property should be considered for rezoning now and not when there is a large development proposed for this property. Mayor Sheetz said if the purpose of an earlier hotel/motel mora- torium study was to make recommendations for property zoned for motels; she asked when staff might be able to make a recommenda- tion for this site? Mr. Farrel said hopefully in April or May of this year he will have time to commence that process. Councilmember Lemons stated major streets are typically abutted by more dense uses, and Main Street is a major street. He noted the conflict with taking the R-2 property on Piney way and desig- nating it commercial, and then rezoning this C-VS property to residential; he stated he is opposed to wasting time on this item. MOTION: Councilmember Odell moved staff be directed to return with an agenda item changing the zoning to be more com- patible with the neighborhood. The motion was seconded by Mayor Sheetz. Councilmember Wuriu was concerned about spot zoning. Councilmem- ber Odell disagreed stating current zoning in the area is R-2 and rezoning this parcel would be more in keeping with the surround- ing area. Councilmember Odell believed the people in the area could live with a Bed and Breakfast or small shops use but not a large motel development as proposed before. The motion carried on the following roll call vote: AYES: Baker, Odell, Sheetz, Wuriu NOES: Lemons Councilmember Odell stated he would like to explore a zone change for the bluff site in North Morro Bay owned by Chevron where the Clean Seas trailer is now parked; the current zoning (M-2) could 0 • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 23, 1989 PAGE 6 allow a large structure to be built on the site. Councilmembers Lemons and Baker agreed rezoning for this site should be explored. Mayor Sheetz asked staff to contact Chevron and explore the pos- sibility of rezoning with them. Mr. Napper noted rezoning of the site would not eliminate the Clean Seas trailer as it must be sited there for emergency spill situations in Estero Bay; the trailer could remain as a legal non -conforming use despite any zone change. Council discussed the possibility of Chevron planting shrubbery and/or trees to screen the trailer. Staff was directed to con- tact Chevron to discuss this item as well as the rezoning. C-5 ENGINEERING SERVICES CONTRACT TO EVALUATE ALTERNATIVES FOR RECONSTRUCTION OF SOUTH T-PIER Nick Nichols reviewed this item indicating several engineering consultants had been contacted to analyze and compare alternative pier designs and costs for the South T-Pier. He recommended Council approve an engineering service agreement with Fred H. Schott and Associates of San Luis Obispo, and authorize alloca- tion of $15,000 from the T-Pier Fire Fund for the services. Councilmember Baker asked if fire protection would be included in the scope of services, such as fire sprinklers? Mr. Nichols stated the City code requires sprinklers in all new waterfront construction. Mr. Nichols said the engineering firm will make recommendations for wood versus a steel pier as well as costs between the two, fire protection for the pier, and insurance costs. Councilmember Wuriu asked Mr. Nichols how the engineering firm had been selected? Mr. Nichols said three firms were contacted and two were interested. One of the two interested is located in the San Francisco Bay area and would not be as available as San Luis Obispo firm; also, the local firm is able to start right away. MOTION: Councilmember Lemons moved Council approve the contract for the consultant agreement for alternative pier de- signs and comparisons for the reconstruction of the South T-Pier, and authorized the allocation of $15,000 from the T-Pier Fire Fund for the services. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 23, 1989 PAGE 7 D. PUBLIC HEARINGS, REPORTS & APPEARANCES D-1 ORDINANCE NO. 343 AMENDING CHAPTER 5.24 OF THE MORRO BAY MUNICIPAL CODE REGARDING QUALIFICATIONS FOR A TAXI CAB DRIVER'S PERMIT (INTRODUCTION/FIRST READING) Mr. Howell reviewed this item noting a complaint from a local cab company concerning the City's absolute prohibition of hiring drivers who have ever been convicted of driving under the influ- ence of alcohol or reckless driving. Chief Howell surveyed other cities in the County and in Santa Barbara County and found most had a disqualifier of 3-7 years for these types of violations. The City Attorney and the Personnel Department were consulted concerning added City liability should we reduce our qualifiers, and determined there would be no added liability. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. MOTION: Councilmember Odell moved Ordinance No. 343 be read by title and number only. The motion was seconded by Councilmember Lemons and unanimously carried (5-0) Mr. Napper read Ordinance No. 343 by title and number only. Motion: Councilmember Odell moved for the approval of Ordinance No. 343 for first reading. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) D-2 ORDINANCE NO, 344 AMENDING ZONING ORDINANCE TO REZONE APPROXIMATELY 11.000 SQUARE FEET OF LAND LOCATED AT THE SOUTHEAST CORNER OF SEQUOIA COURT AND IRONWOOD AVENUE FROM R-A TO R-1 (LUP/ZOA 01-87; JIM MERZON APPLICANT) - INTRODUC- TION/FIRST READING Bill Farrel reviewed this item noting the final step in complet- ing the amendment process is to approve a resolution adopting the Coastal Commission's action. Mr. Farrel said since the zoning portion of the amendment was adopted by the Council by resolution rather than by ordinance, it is first necessary to pass an ordi- nance to properly complete the rezoning. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. MOTION: Councilmember Baker moved Ordinance No. 344 be read by title and number only. The motion was seconded by Councilmember by Wuriu and unanimously carried. (5-0) Mr. Napper read Ordinance No. 344 by title and number only. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 23, 1989 PAGE 8 MOTION: Councilmember Lemons moved for approval of Ordinance No. 344 as first reading. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) D-3 COMMENCEMENT OF SIX -WEEK REVIEW PERIOD FOR LOCAL COASTAL PROGRAM AMENDMENT TO REZONE "PINEY WAY VILLAGE PROPERTY" FROM R-2 TO C-1 DISTRICT (INITIATIVE MEASURE D) Mr. Farrel reviewed this item noting Morro Bay voters adopted Measure D in last November's general election amending the gen- eral plan and zoning ordinance to reclassify five acres of Piney Way Village property from R-2 (duplex residential) to C-1 (central business commercial). The amendments have to be submit- ted to the California Coastal Commission for certification. He indicated that if Council accepts the map and text changes as outlined in the staff report, staff will commence the required six week public review period before submitting the items to the Coastal Commission. Councilmember Lemons suggested that perhaps item D-4 regarding the North Main Street LUP amendment and this item could be com- bined and forwarded to the Coastal Commission at the same time. He asked if this delayed either item? Mr. Farrel said it is a good suggestion to batch LCP/LUP amendments together so as not to use -up our allowed three submittals per year. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. MOTION: Councilmember Odell moved Council accept the map and text changes as submitted to enact Measure "D", and in- structed staff to commence the required six week public review period. The motion was seconded by Councilmem- ber Wuriu and unanimously carried. (5-0) D-4 CONTINUED PUBLIC HEARING ON ZONING AND LAND USE PLAN AMEND- MENTS TO LOCAL COASTAL PROGRAM. PLANNING AREA 5 (CASE NO. LUP/ZOA 02-88; P.G.&E.. DEN-DULK, AND CITY PROPERTIES) Mr. Farrel reviewed this item noting the modifications have been reviewed and approved by the Planning Commission, and the six week public review period must now be commenced. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. MOTION: Councilmember Wuriu moved Council continue the hearing to 13 March 1989, and instructed staff to commence the six week public review period on the Land Use Plan and zoning ordinance amendments as proposed by staff and recommended by the Planning Commission and Harbor Advi- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 23, 1989 PAGE 9 sory Board. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mr. Farrel reviewed this item stating in December 1988, the Plan- ning Commission met several times to consider the Federal Asset Disposition Association (FADA) request for the City to re -issue water equivalencies for completion of the Bayshore Village condo- minium project. The Planning Commission found the water equiva- lencies had expired and could not be re -issued; FADA has appealed this action to City Council. Mr. Farrel stated Council is in re- ceipt of a considerable amount of information on this subject and indicated staff has highlighted the most pertinent or critical information to assist Council in their consideration of this pro- ject which has been underway for over ten years. Mr. Farrel stated the City approved all discretionary permits for the project including a conditional use permit and a tract map; the tract map has been recorded. The Coastal Commission approved a Coastal Development Permit on the project. Twenty-four of the original 72 units have been constructed and public improvements such as streets, waterlines, fire hydrants, storm drains and a public park, restroom and a stairway to the Embarcadero area have been installed but have not yet been accepted by the City. Water has been transferred to new owners several times in the past when the property has changed hands. Mr. Farrel said bankruptcy is one of the criteria listed in the Municipal Code allowing the transfer of water equivalencies. The water situa- tion in the City is already strained and re -issuance of water to this project would not be offset by retrofitting or other conser- vation measures. Mr. Farrel stated there are other features of the project which are objectionable to some of the people in the neighborhood. He said some are relatively minor, however funda- mental changes in the project such as height and density changes could alter its basic marketability and value, and may not be welcomed by the applicant. The applicants have indicated they may initiate litigation if Council does not re -issue the water equivalencies so the project can be completed. Staff recommends Council grant the appeal and re -issue the water equivalencies subject to a number of conditions; staff believes a finding of hardship can be demonstrated because of bankruptcy. Mr. Farrel outlined the proposed conditions. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 23, 1989 PAGE 10 Mr. Farrel stated the water equivalencies should be issued sepa- rate from the water allocations currently being considered for 1989 on the basis the project was issued water prior to the cur- rent water procedures and are being re -issued due to hardship. The applicant must comply with all the conditions previously es- tablished for the use permit, some of which have not been fully met; one is the $47,000 construction bond which has lapsed, and a $21,000 performance bond for maintenance of the park. Mr. Farrel requested Council provide general direction on this appeal and staff will return with a formal resolution at the February 14th meeting. Mayor Sheetz opened the hearing for public comments. Hilda Heifetz, Main Street, said she finds no reference to "bankruptcy" being a hardship, and suggested perhaps the City does not want to go to court on this item and will award the water equivalencies on that basis. She said there are problems with the density, height, fence, and arrangement of the buildings to allow "water" viewsheds. Robert Wesee, 154 Sandpiper Lane, stated the project has the potential to generate over $1.6 million in revenues to the County; he does not believe Council should discuss design again, but rather let the promoter finish the project. Charles Palmer, 485 Estero, questioned if the development is a success, why are only a few of the residences occupied? Bruce Risley, President of Civic Action League, stated the Board of Directors of CAL voted unanimously to recommend Council let the expired water permits expire, and the developer can stand in line with everyone else for water. He indicated he regrets his own vote on the Council in 1984 to allow the water to be transferred. Melvin Lees, 117 Sandpiper Circle, stated the people currently living at Bayshore Village invested believing 72 units were going to be built; they cannot afford the condominium homeowner's fees without them. People currently living in them are being left out of the equation. Ed Ewing, Pacific Street, believes the project will impact water and other permits issued; and, said even though the Federal Government is involved, they are using taxpayers' money. Dorothy Cutter, Main Street, stated she has lived in Morro Bay during two water rationings, and believes this project will impact the City's water situation. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 23, 1989 PAGE 11 Nancy Stacy stated it makes sense to let the project go forward; the City would be creating a slum if the project is not finished. Robin Baggett, attorney representing the Federal Savings and Loan Insurance Corporation (FSLIC), stated FADA is an agent for FSLIC. He believes the project has vested rights and noted all offsite/ onsite improvements have been substantially completed. He sub- mitted documents to the City Clerk and City Attorney for the record. Mr. Baggett stated the Department of Real Estate issued a Cease and Desist Order in October 1986 which prohibited the selling of any more units. Councilmember Odell questioned why the units were not offered for sale? Carol Lavender, attorney also representing FADA, explained the Department of Real Estate does not recognize the development as a phased project, and approved it originally as a 72-unit development. She explained the financial difficulties of the developer which led to the Cease and Desist Order and eventual bankruptcy. Mayor Sheetz asked Ms. Lavender if Council said "no, you cannot have water", what would happen to the development? Ms. Lavender said FSLIC is charged by law to sell the property; they have no choice but to recoup as much of their $8 million dollar investment as possible and pursue their rights. FSLIC could abandon the project, but then the problem is not cured and the current project is left as an eyesore for the community. She stated the property is currently in escrow with Inland West Development Co.; FSLIC was careful in selecting the buyer as they want the purchaser to respond to the needs of the community. Mayor Sheetz asked if the water equivalencies are granted, would the Department of Real Estate release the Cease and Desist Order and allow the sale of the existing units to go forward immedi- ately? Ms. Lavender said the property can be sold within 20 days if the water is available, and the Cease and Desist order could be lifted by DRE in 60-90 days. Mayor Sheetz asked if the developer would have problems cooperat- ing with the city's conditions and standards as set forth by the Community Development Director? Ms. Lavender said she could not speak for the buyer, nor agree to any of the conditions; she believes the conditions should be addressed one by one with the Inland West people and City staff. Councilmember Odell said he was sympathetic to the problems of the savings and loan banks and to the people living in the pro- ject, but was concerned Council allocation of water is the only opportunity for rescuing this development. He also questioned whether the developer would work with the City to save water. Ms. Lavender stated as a legal matter, the water rights are there MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 23, 1989 PAGE 12 Ms. Lavender stated as a legal matter, the water rights are there and vested; FSLIC is legally entitled to it. She said the pro- posed developer, Inland West Development Co., may wish to retrofit existing facilities. Councilmember Baker asked if modified building heights would be acceptable to the developer? Spyke Lynch, Inland West Develop- ment Co., stated while he is not opposed to reviewing the pitch of the roof, varying the height or location of the buildings could change the entire plan and/or the deeded public areas. He is willing do anything feasible to get the development completed. "Libby" Elizabeth Baker said many people are waiting for water equivalencies; some have waited so long they can no longer afford the escalated building costs. She wondered what would happen if all these people sued the City? Joan Mihay, Cabrillo Drive, said although the water equivalencies have expired, staff is recommending Council re -issue them. She did not believe Council should re -issue the water because others are waiting for the same privilege; she urged Council to limit building heights to 25 feet. Renee Cain, Hillview, said Council should not reissue water based on the design of the project; aesthetics should be a separate issue. Lemoyne Bean, Bakersfield, said she lost her water equivalency because she was not able to build when her water equivalency was available. They are now able to build but are not asking for reinstatement of their water equivalency; this project should be considered in the same manner. William Meyer said he did not understand how these water equiva- lencies can be reissued when the City currently has a water shortage. William Manley suggested it is discrimination to give this devel- opment water while others are waiting. Judy Skousen said the water was allocated to this project prior to the enactment Measure F, it need not be counted in the Measure F water equivalencies, and would not take away from others build- ing. Ms. Skousen said if the City is sued because they do not re -issue the water equivalencies, there is no bond for this type of lawsuit and the City (citizens of Morro Bay) would have to pay for the lawsuit defense and any award. Charles Palmer, 485 Estero, agreed with Councilmember Odell's suggestion if the water equivalencies are issued, they should be issued on the condition existing homes be sold before water equivalencies are issued for additional building. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 23, 1989 PAGE 13 Mr. Baggett said the City does not have the authority to impose conditions; any conditions will be voluntary on the part of the developer. Mayor Sheetz suggested no decision be made this evening and Coun- cilmembers, individually or two at a time, meet with staff and the new buyer before the next meeting. Councilmember Lemons said he was uncomfortable with that arrange- ment and not sure it was legal. Ms. Skousen cautioned Council not to violate the Brown Act by having separate meetings and com- ing to a conclusion at the separate meetings. She suggested a committee of the Council be appointed and report back to Council. Mayor Sheetz it was her intent to have staff meet with the devel- oper and report to Council. Councilmember Wuriu agreed and said staff could meet with FSLIC with Council advising staff of their preferences for this project and have staff come back to Council with the results. Councilmember Lemons said he had all the information he needed and could make a decision tonight; he fears the project will re- main in its present state for another 4-8 years becoming an eye- sore. If staff recommendations are followed, the project will not compete for water and, at 7' acre feet of water per year, the project will have a miniscule impact to the City water supply. Councilmember Wuriu pointed out the developer cannot do anything without the water so the time for negotiation is before the water equivalencies are granted. Council consensus was for staff to meet with the developer to prepare a more defined list of agreeable conditions before Coun- cil agrees to re -issue the water equivalencies. Mayor Sheetz asked Councilmember Odell to prepare a list of ideas for staff to work on with the developer. MOTION: Mayor Sheetz moved the item be continued to the next meeting, staff be directed to work with the prospective developer in the interim to determine what project design conditions, if any, are acceptable. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Council recessed from 8:53 p.m. to 9:05 p.m. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 23, 1989 PAGE 14 D-6 CONTINUED HEARING ON 1988 ANNUAL WATER REPORT AND DETERMINA- TION OF WATER ALLOCATION PROGRAM FOR 1989 Mr. Bugher stated the water report has been reviewed by the Water Advisory Board and the Planning Commission, and he outlined their recommendations. Mr. Bugher responded to Councilmember Lemons request concerning information on retrofitting of motels in the early part of the retrofit program, and said at that time staff had predicted a 5% savings for the motels; the actual savings was 5.22%. When com- pared with residential savings for the past two periods there was a savings of roughly 3%, so the commercial businesses did a better job of saving water than residential. In regards to the Peoples Self -Help project, their housing unit allocation should not be postponed until after the rainy season. All requirements have been met and the project is in line to go ahead. Councilmember Odell stepped down from discussion on this item because of a conflict of interest. Mayor Sheetz opened the hearing to the public for comments. Bruce Risley, President of CAL, said he supports the staff recom- mendations in the Annual Water Report, except for the recommenda- tion concerning 1.5 gallon instead of 3 gallon toilets; he believed it should be voluntary instead of mandatory. Mr. Risley would like to see a financial analysis of the effect of the retrofit program on the City's receipt of water "hookup" revenues. Ed Ewing, Pacific Street, was not in agreement with the staff, recommendation and preferred the "blend" program used last year. John Heimel, Cedar Street, believed the staff report was well done but did not agree with the recommendation to wait until the rainy season was over to issue water allocations. He said the building program should be continued under the retrofit program with a 2:1 ratio, which is also the Water Advisory Board and Planning Committee recommendation. Randy Ruff, Shasta Avenue, said that the water report did not take into account residential watermeter under -reading. He stated that as the meters age they under -read the water passing through at 1% per year which could result in a 10% under -reading for water used by residences if their house meter was 10 years old. He also discussed leaky pipes and said this program benefit has already been obtained; retrofit data savings are still flimsy. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 23, 1989 PAGE 15 Charles Palmer, 485 Estero, said 1988 was the most critical year as far as the water basins in Morro Bay since 1977. Part of this is due to increased agricultural use, and part to increased City use. He believes there is no perceptible change due to pipeline replacement. Dale Reddell, 680 Sequoia Court, agreed with Water Advisory Board and Planning Commission recommendations except for raising the limits of the retrofit program. The plan is working and it may not work if the limits are raised. He pointed to a water retrofit article in The Wall Street Journal, an interview with Dave Bugher, and the newspapers conclusion that retrofit is the water program of the future. Robert Ainse, a builder representing Dick Hobbs, stated Mr. Hobbs had applied to build 6 units on Pacific Street. Mr. Ainse is concerned with the multi -family allocation and requested Council allow 27 units for multi -family this year. He suggested there is an implied waiting list for multi -family units from 1988, too. Dan Reddell asked several questions regarding the retrofit pro- gram to which Mr. Bugher responded. He encouraged Council to maintain the "blend" program used last year, and continue with 10-12 houses per retrofit. Mayor Sheetz closed the hearing to the public. Councilmember Wuriu commended Dave Bugher on his research, but stated no matter how much research is done there is still a lot of guessing. He suggested the retrofit program be continued with the full allocation as suggested by the Planning Commission, but the retrofit formula be changed from 1 to 1.5:1. He said previ- ous savings are not as much as have been hoped for. Councilmember Lemons is convinced the replacement old water pipes has made a considerable savings. He disagreed with the under - reading of meters, and said the 2% error factor espoused by CAL is at odds with the Los Angeles Department of Public Works fig- ures; it is closer to a .2-.3% error factor. Councilmember Lemons was in favor of using the "blend" plan again; ' equiva- lency from the pipeline replacement program and � from retrofit. He also agreed with raising the retrofit ratio to 1.5:1, and al- lowing credit for ultra low -flush toilets. Councilmember Baker believes the pipeline replacement program works, and is in favor of the 1.5:1 retrofit formula with the "blend" program. MOTION: Councilmember Lemons moved water equivalencies be is- sued on the basis of the "blend" program; � pipeline replacement and � retrofit with retrofit calculated on 6-8 homes (1.5:1). The motion was seconded by Coun- 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 23, 1989 PAGE 16 cilmember Wuriu and carried with Mayor Sheetz voting no. (3-1) Council discussed the number of water equivalencies to be allo- cated this year, and whether or not to wait until after the rainy season to make the allocations. Mr. Nichols reviewed the well levels and rainfall to date and said the December and January rains are replenishing our current supply but the later rains, February through April, will determine how the City will make it through the summer months; at this time there is no excess. Council discussed how many water equivalencies to allocate with Mr. Napper noted Council has previously decided to allocate water with an open-ended waiting list created by one last lottery. This does not assure those on a waiting list of water; it estab- lishes their place in line if Council allocates water. MOTION: Councilmember Wuriu moved Council approve 50 single family dwellings and 27 multi -family units for 1989; 20 of the multi -family units are for Peoples' Self -Help Housing Corporation's senior housing project. The mo- tion was seconded by Councilmember Baker. SUBSTITUTE Councilmember Lemons moved the first quarter alloca- MOTION: tion be for 13 single family dwelling units, 20 for Peoples' Self -Help Housing senior housing project, and the appropriate number of commercial; and Council will make a decision at the second meeting in March 1989 to allow additional development in subsequent quarters. The motion was seconded by Mayor Sheetz and carried (4-0-1) Mr. Napper stated his understanding is Council prefers the use of ultra low toilets as a voluntary, not mandatory, part of the retrofit program, with ultra low flush toilet installations re- ceiving appropriate credit. Council agreed. Councilmember Odell resumed his seat on the Council dais. E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.9(5)(1); SIGNIFICANT EXPOSURE TO LITIGATION EXISTS MOTION: Councilmember Lemons moved the meeting adjourn to Closed Session. The motion was seconded by Councilmem- ber Wuriu and unanimously carried. (5-0) Mayor Sheetz announced Council is adjourning to Closed Session to discuss a significant exposure to litigation in accordance with Government Code Section 54956.9(b)(1). MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 23, 1989 PAGE 17 F. ADJO The meeting adjourned to Closed Session at 10:37 p.m. and re- turned to regular session at 10:57 p.m. MOTION: Councilmember Odell moved the meeting be adjourned. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) The meeting adjourned at 10:57 p.m. Recorded by: ELANE NOVAK Deputy City Clerk 6 6 City. Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING - JANUARY 9, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so by standing. When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments should normally be limited to three minutes. DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the fol- lowing actions are approved without discussion. A-1 CITY COUNCIL MINUTES OF THE SPECIAL MEETING OF DECEMBER 8, 1988, AND THE REGULAR MEETING OF DECEMBER 12, 1988 A-2 RESOLUTION NO. 04-89 ACCEPTING TRANSFER OF REAL PROPERTY ADJACENT TO PINEY WAY AND PINEY LANE FROM THE COUNTY OF SAN LUIS OBISPO A-3 EXPENDITURE REPORT - NOVEMBER 1988 A-4 STATEMENT OF INVESTMENTS - NOVEMBER 1988 A-5 ACCEPTANCE OF RESIGNATION FROM STREET ADVISORY COMMITTEE (DOUGHERTY) xA-b RESOLUTION NO. 01-89 ESTABLISHING THE ORDER OF BUSINESS AT CITY COUNCIL MEETINGS, AND SETTING CERTAIN RULES OF PROCEDURE GOVERNING PUBLIC COMMENTS AND COUNCILMEMBER ABSTENTIONS A-7 AWARD OF CONSULTANT CONTRACT TO PSOMAS AND ASSOCIATES OF SACRAMENTO FOR REVISION AND UPDATE TO WATER DISTRIBUTION SYSTEM MASTER PLAN A-8 AWARD OF CONTRACT FOR DESIGN SERVICES ON TIDELANDS PARK A-9 PROCLAMATION DECLARING THE MONTH OF JANUARY 1989 AS "VOLUNTEER BLOOD DONOR MONTH" A-10 SET DATE (JANUARY 23RD) FOR APPEAL HEARING ON PLANNING COMMISSION'S DENIAL TO RE -ISSUE WATER EQUIVALENCIES TO THE FEDERAL ASSET DISPOSITION ASSOCIATION (FADA) FOR COMPLETION OF BAYSHORE VILLAGE CONDOMINIUM PROJECT B-1 PUBLIC HEARING AND RESOLUTION NO. 02-89 AUTHORIZING FILING OF GRANT APPLICATION FOR PROPOSITION 70 MONIES (CALIFORNIA WILDLIFE, COASTAL, AND PARKLAND CONSERVATION ACT) FOR CONSTRUCTION OF TIDELANDS PARK B-2 PUBLIC HEARING AND RESOLUTION NO. 05-89 ACCEPTING COASTAL COMMISSION CERTIFICATION AND ADOPTION OF MODIFICATIONS TO THE LAND USE PLAN OF THE MORRO BAY LOCAL COASTAL PROGRAM (AMENDMENT NO. 01-88, CASE NO. LUP/ZOA 01-88; WILLIAMS BROTHERS MEASURE B AREA) B-3 PUBLIC HEARING AND RESOLUTION NO. 06-89 ACCEPTING COASTAL COMMISSION CERTIFICATION AND ADOPTION OF MODIFICATIONS TO LANGUAGE OF THE MORRO BAY LOCAL COASTAL PROGRAM IMPLEMENTATION PROGRAM (ZONING ORDINANCE), AMENDMENT NO. 02-88, CASE NO. LUP/ZOA 01-88 (WILLIAMS BROTHERS MEASURE B AREA) B-4 CONTINUED HEARING AND RESOLUTION NO. 03-89 ADOPTING WATER OPERATING PROCEDURES FOR 1989 WATER ALLOCATION PROGRAM B-5 INTRODUCTION OF AND HEARING ON THE 1988 ANNUAL WATER REPORT B-6 CONTINUED PUBLIC HEARING ON NORTH MAIN STREET SPECIFIC DRAFT PLAN (LCP/GPA/ZOA 01-86A) C. UNFINISHED BUSINESS C-1 ORDINANCE NO. 339 REQUIRING MANDATORY INSTALLATION OF RESIDENTIAL AND COMMERCIAL FIRE SPRINKLER SYSTEMS (SECOND READING/ADOPTION) D. NEW BUSINESS D-1 DISCUSSION OF POTENTIAL PLANNING COMMISSION REFORMAT AND COMPOSITION D-2 CONSIDERATION OF JOINT MEETING AND AGENDA TOPICS WITH WATER ADVISORY BOARD D-3 CONSIDERATION OF FORMING A 25TH CITY ANNIVERSARY CELEBRATION COMMITTEE E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.9(B)(1); SIGNIFICANT EXPOSURE TO LITIGATION EXISTS COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 9, 1989 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. PRESENT: Rose Marie John Baker John Lemons Jeff Odell Tom Wuriu Sheetz Mayor Councilmember Councilmember Councilmember Councilmember ABSENT: None STAFF: Gary Napper Judy Skousen Dave Bugher Ardith Davis Bill Farrel Forrest Henderson Nick Nichols Johannah Varland Steve Wolter Bernie Zerr Horace Strong gave the Invocation, Allegiance. PUBLIC COMMENT City Administrator City Attorney Associate Planner City Clerk Community Develop. Dir. Asst. City Administrator Public Works Dir. Special Projects Planner Recreation & Parks Dir. Fire Chief and led the Pledge of 1. Mary Phillips, 2645 Ironwood, stated there has not been a Refuse Franchise Board meeting for 5 months, and complained about a letter she received from a collection agency regarding her never -paid garbage bill. She said she does not have to pay the bill because Morro Bay Garbage Service does not render the service to her, and they cannot lien her property. None. A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE SPECIAL MEETING OF DECEMBER 8. AND 1988 AND THE REGULAR MEETING OF DECEMBER 12, 1988 Mr. Napper recommended Council approve the minutes as submitted. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 9, 1989 PAGE 2 A-2 RESOLUTION NO 04-89 ACCEPTING TRANSFER OF REAL PROPERTY ADJACENT TO PINEY WAY AND PINEY LANE FROM THE COUNTY OF SAN LUIS OBISPO Mr. Napper recommended Council adopt Resolution No. 04-89. A-3 EXPENDITURE REPORT - NOVEMBER 1988 Mr. Napper recommended Council approve the Report as submitted. A-4 STATEMENT OF INVESTMENTS - NOVEMBER 1988 Mr. Napper recommended Council receive the report for file. A-5 ACCEPTANCE OF RESIGNATION FROM STREET ADVISORY COMMITTEE (DOUGHERTY) Mr. Napper recommended Council accept the resignation of Mr. Dougherty from the Street Advisory Committee, and instruct staff to advertise the vacancy. A-6 RESOLUTION NO 01-89 ESTABLISHING THE ORDER OF BUSINESS AT CITY COUNCIL MEETINGS, AND SETTING CERTAIN RULES OF PROCE- DURE GOVERNING PUBLIC COMMENTS AND COUNCILMEMBER ABSTENTIONS Mr. Napper recommended Council adopt Resolution No. 01-89. A-7 AWARD OF CONSULTANT CONTRACT TO PSOMAS AND ASSOCIATES OF SACRAMENTO FOR REVISION AND UPDATE TO WATER DISTRIBUTION SYSTEM MASTER PLAN Mr. Napper recommended Council award the contract to update the City's Water Distribution System Master Plan to Psomas and Asso- ciates of Sacramento, and authorize the City Administrator to ex- ecute the contract. Mr. Napper recommended Council award the contract for design ser- vices on Tidelands Park to Recreation Systems, Inc. of Anaheim, and authorize the City Administrator to execute the contract. A-9 PROCLAMATION DECLARING THE MONTH OF JANUARY 1989 AS "VOLUNTEER BLOOD DONOR MONTH" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 9, 1989 PAGE 3 A-10 SET DATE (JANUARY 23RD) FOR APPEAL HEARING ON PLANNING COMMISSION'S DENTAL TO RE -ISSUE OF WATER EQUIVALENCIES TO THE FEDERAL ASSET DISPOSITION ASSOCIATION (FADA) FOR THE COMPLETION OF BAYSHORE VILLAGE CONDOMINIUM PROJECT Mr. Napper recommended Council set January 23rd as the hearing date for the appeal, and authorize staff to notice the hearing and prepare the appropriate reports. Councilmember Wuriu requested Item A-5 be pulled for separate discussion, and Councilmember Lemons requested Items A-6 and A-8 be pulled for questions. MOTION: Councilmember Lemons moved for approval of the Consent Calendar with the exception of Items A-5, A-6, and A-8. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) A-5 ACCEPTANCE OF RESIGNATION FROM STREET ADVISORY COMMITTEE (DOUGHERTY) Councilmember Wuriu stated the way Mr. Dougherty's resignation is worded indicates he would like to keep his position on the Street Advisory Committee if the new Council wishes to keep him. Coun- cilmember Wuriu was in favor asking Mr. Dougherty to retain his position until he no longer lives in the City; Councilmember Lemons agreed. MOTION: Councilmember Lemons moved Tom Dougherty be requested to remain on the Street Advisory Committee until such time as he no longer lives in Morro Bay, or does not wish to serve. The motion was seconded by Councilmem- ber Wuriu and unanimously carried. (5-0) A-6 RESOLUTION NO 01-89 ESTABLISHING THE ORDER OF BUSINESS AT CITY COUNCIL MEETINGS AND SETTING CERTAIN RULES OF PROCE- DURE GOVERNING PUBLIC COMMENTS AND COUNCILMEMBER ABSTENTIONS Councilmember Lemons stated he has concerns about Section 4 regarding abstentions; the term "appearance of interest" is mis- leading. An "appearance" does not prohibit a councilmember from discussion an issue; it is a judgment call the official involved has to make. Mr. Napper explained a councilmember may wish to abstain for other than a obvious conflict of interest, and the language is intended to allow for that possibility. MOTION: Councilmember Lemons moved for the approval of Item A-6 with an amendment to Resolution No. 1-89, Section 4. Abstentions/Failures to Vote; the words "is precluded" in the first sentence are deleted and the word "abstains" substituted therefor. The motion was sec- onded by Councilmember Wuriu. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 9, 1989 PAGE 4 Councilmember Wuriu asked if the three -minute time limit applied to principles as well as individuals? Mayor Sheetz stated she would allow ten minutes for presentations, 5 minutes for applica- tions, and three minutes for the public. The motion was unanimously carried. (5-0) A-8 AWARD OF CONTRACT -FOR DESIGN SERVICES ON Councilmember Lemons stated this item also relates to Item B-1, and asked why the development of the park is placed at a higher priority then side -ties for boats. Mr. Napper stated the park is not a higher priority, but grant funding for the waterside improvements is not as readily available as grant funding for park improvements. Councilmember Lemons asked if the Tidelands Park plan had been reviewed by the Planning Commission and the Harbor Advisory Board? Mr. Napper and Mr. Wolter explained the City does have an approved Master Plan for Tidelands Park adopted by the Council in 1986, developed by a citizens advisory committee and reviewed and endorsed by both the Harbor Advisory Board and Planning Commission. MOTION: Councilmember Lemons moved for approval of awarding the contract to Recreation Systems, Inc. for design ser- vices on Tidelands Park, and authorize the City Admin- istrator to execute the contract. The motion was sec- onded by Councilmember Baker and unanimously carried. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 PUBLIC HEARING AND RESOLUTION NO. 02-89 AUTHORIZING FILING OF GRANT APPLICATION FOR PROPOSITION 70 MONIES (CALIFORNIA WILDLIFE, COASTAL, AND PARKLAND CONSERVATION ACT) FOR CON- STRUCTION OF TIDELANDS PARK Mr. Wolter reviewed the per capita grant application for California Wildlife, Coastal and Park Land Conservation Act funds (Proposition 70 in the November 1988 election) in the amount of $30,000 for Tidelands Park. The funds will be applied to the recreational phase of the Park including turf, picnic facilities, children's play area, landscaping and pedestrian walkways. Mr. Wolter recommended Council adopt Resolution No. 02-89 authorizing application for these funds. Mayor Sheetz opened the hearing to the public for comments. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 9, 1989 PAGE 5 Mary Phillips, 2645 Ironwood, questioned exactly where the improvements will be. Mr. Wolter reviewed the Tidelands Park Master Plan. Mayor Sheetz closed the hearing to the public. Councilmember Lemons asked if Mr. Wolter had questioned the Coastal Conservancy about funding for side -ties? Mr. Wolter stated they will not fund them unless they are for commercial fishermen. Councilmember Lemons questioned if this application has been dis- cussed by the Harbor Advisory Board and Planning Commission? Staff responded the application for grant funds has not been before the Harbor Advisory Board or Planning Commission; however, they did approve the Tidelands Park Master Plan and the projects proposed for application are taken from that Plan. MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 02-89. The motion was seconded by Mayor Sheetz and unanimously carried by roll call vote. (5-0) •yam_ __• _ • •�• i�•• • • • •�_ _ • •• Mr. Farrel reviewed the Coastal Commission's action to certify the Measure B amendments regarding the Williams Brothers prop- erty. Their certification included minor modifications to the Land Use Plan which were agreed to by city staff and the Williams representatives. Resolution No. 05-89 accepts the Coastal Com- mission certification with minor modifications and agrees the City will issue coastal development permits accordingly. Mr. Farrel stated this will complete the steps necessary to amend the Land Use Plan in accordance with Measure B. Mayor Sheetz briefly outlined the fact this item involves modifi- cations to the Land Use Plan and the next item involves changes to the zoning ordinance. She opened the hearing to the public for comments; there were no comments and the hearing was closed to the public. MOTION: Councilmember Lemons moved for adoption of Resolution No. 05-89. The motion was seconded by Councilmember Baker and unanimouslv carried. (5-0) 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 9, 1989 PAGE 6 B-3 PUBLIC HEARING AND RESOLUTION NO 06-89 ACCEPTING COASTAL COMMISSION CERTIFICATION AND ADOPTION OF MODIFICATIONS TO LANGUAGE OF THE MORRO BAY LOCAL COASTAL PROGRAM IMPLEMENTA- TION PROGRAM (ZONING ORDINANCE)AMENDMENT NO 02-88 CASE NO. LUP/ZOA 01-88 (WILLIAMS BROTHERS MEASURE B AREA1 Mr. Farrel stated the Coastal Commission also certified the zoning ordinance and zoning map amendments in accordance with Measure B without modifications. He recommended Council adopt Resolution No. 06-89 accepting the Coastal Commission's certification. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. MOTION: Councilmember Lemons moved for adoption of Resolution No. 06-89. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) B-4 CONTINUED HEARING AND RESOLUTION NO. 03-89 ADOPTING WATER OPERATING PROCEDURES FOR 1989 WATER ALLOCATION PROGRAM Mr. Farrel reviewed Resolution No. 03-89, Option A, which responds to Council's direction at their previous meeting. It allows priority to the 48 persons left from the 1988 lottery, and provides for a new lottery to create an open-ended waiting list after which names will be added to the list on a first -come, first served basis. An Option B has also been provided as directed by Council which places a lot, rather than an applicant, in the lottery and the lot holds the place in line. Mr. Farrel reviewed the pros and cons of this concept, and recommended Coun- cil adopt Option A. Council asked several questions to which Mr. Farrel responded. Councilmember Lemons stated staff misinterpreted his request in Option B regarding the "lot" lottery; he intended not _qb build- able lots would be placed in the lottery, only those wishing to build on their lots now. He said there is no difference between the two systems except in the "lot" concept, placement in line will be established by the lot rather than ownership and keeping track of title to the lot. Mayor Sheetz opened the hearing to the public for comments. Mary Phillips, 2645 Ironwood, stated she did not approve of gam- bling, and asked what became of the first -come, first -served con- cept? She also objected to the lottery because a property owner who has only owned his lot for one year has the same chance to build as the one who has owned property for fifteen years. Brad Piper, Greenwood Avenue, asked if the Council had plans to improve the water situation in Morro Bay so it isn't necessary to 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 9, 1989 PAGE 7 hold a lottery every year? Mayor Sheetz stated Council will be holding a joint meeting with the Water Advisory Board later this month to discuss that item. Charles Palmer, 485 Estero, commented on property owners who paid bonds for the original sewer plant, and new subdivisions which have not; he believed new subdivisions should be at the end of any list, and people who paid their sewer bonds should be at the top of the list. Clyde Ganes, 1000 Little Morro Creek Road, asked if the procedure after the 1989 lottery is a first -come, first -served basis? Mayor Sheetz said that is correct. Bob Duncan, Downing Avenue, asked if a lot with water rights is allowed to transfer the property. Mr. Farrel stated water rights are not transferable. Ed Ewing, 238 Pacific, said he has lived and paid taxes in Morro Bay for 20 years, but has only owned his lot for lk years; he has still paid for water and sewerage for 20 years and has an equal right to build on his property as someone who has owned their property for a number of years. Mayor Sheetz closed the hearing to the public. Councilmember Wuriu stated he prefers Option A because it is sim- pler and more feasible. Councilmember Baker said if there is enough water to take care of the people from the 1988 list, is there an estimation of how many applicants there will be for the 1989 lottery? Mr. Farrel stated there were 90 applicants last year, but he has no way of project- ing how many will apply this year. MOTION: Councilmember Odell moved for adoption of Resolution No. 03-89, Option A. The motion was seconded by Mayor Sheetz. Councilmember Wuriu asked if it is possible to hold a lottery and not release any water equivalencies this year due to the limits of Measure F and previously committing 1989 equivalencies to People's Self -Help Housing? Mr. Farrel stated it is possible, and is one of the reasons the issue of how to award equivalencies is a separate issue from whether or not the equivalencies will be awarded. If no allocations are made this year, the system can still be used for following years. Councilmember Lemons requested the date in Item 1(a) of Option A be changed to July 1, 1988; he learned of a problem one property owner has because his escrow was part of an estate and he could not close escrow by the June 1, 1988 deadline. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 9, 1989 PAGE 8 MOTION: Councilmember Lemons moved Resolution No. 03-89, Option A, be amended to change the date in paragraph 1(a) from June 1, 1988 to July 1, 1988. The motion was seconded by Councilmember Wuriu and unanimously carried by roll call vote. (5-0) The main motion to adopt Resolution No. 03-89, Option A, as amended, was unanimously carried. (5-0) �i�G�L• � � � • � •,1�,��`L�7L�:.����ii��e��ZI7:\�P+lit:`�L'I�-4�:i-' -' � -` - Councilmember Lemons asked if it is necessary to hold a public hearing at this time, when staff recommendation is to refer the report to the Water Advisory Board and Planning Commission for their comments? He suggested the item be continued to the next meeting and Council can consider the advisory board comments along with the public hearing. Mr. Napper stated staff usually schedules one meeting to intro- duce the item to Council with the staff analysis and recommenda- tions; at the subsequent meeting, Council considers those recom- mendations along with the Water Advisory Board and Planning Com- mission comments. The staff report will not be given again at the next meeting. Dave Bugher, Planning Associate, gave the 1988 Annual Water Report which discussed groundwater withdrawal rates, distribution of water equivalency units for 1988, the status of the pipeline replacement and retrofit programs, and recommendations for water allocation in 1989. He noted the City continues to permit lim- ited amounts of development without increasing groundwater with- drawals; the pipeline replacement, retrofit, voluntary water con- servation, and increased rates contribute to this usage. Both the pipeline replacement and retrofit programs have prompted questions regarding the amount of water saved, and it is sug- gested the 2:1 savings formulae on retrofit be readjusted. New water sources are not expected to come on-line for three to five years; it is estimated the City may be able to "squeak" through two more years of allocations by retrofitting. The staff recommendation is to postpone any additional water awards in 1989 until the end of the rainy season. If well levels have recovered after the rainy season, allow for an allocation program of only 40 residential units; if well levels have not recovered by the end of the rainy season, consideration should be given for no new development through 1989 needing water. It was noted this would not preclude rehabilitation or remodeled devel- opment from taking place as long as the modifications did not intensify water usage. n u MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 9, 1989 PAGE 9 Councilmember Wuriu did not believe reported by staff. The fact is the than it did in five of the previous been about the same as last year. the picture is as gloomy as City used less water in 1988 eight years and rainfall has Nick Nichols said City staff is not being overly conservative in its recommendations, and reminded Council mandatory water conser- vation has been in effect since September which accounts for some of the water savings. He said the rainfall is still ten inches less than last year; an average rainfall of 16" to 18" seems to be able to provide the community's needs and the City needs at least that much to maintain the previous year's usage. Although the well levels look better today than during the summer, if there is no more rainfall during the next three or four months, we will not make it to summer. Councilmember Lemons asked that an analysis be conducted of the motels which were retrofitted early in the retrofit program to determine the savings in the motels. He said the City has sev- eral hundred more people than it did in 1981, and still the water withdrawal rates are below that year. Councilmember Wuriu asked how there could not be a savings in a single family residence when retrofitted? Mr. Bugher stated he cannot comment on people's lifestyles and how they use water, and noted he is not saying retrofit does not work, but that it proba- bly saves at a 1:1 ratio rather than 2:1. He suggested allocat- ing fewer building permits to avoid a moratorium and extend the life of the retrofit program. Councilmember Odell wondered what the impact would be if all the people who own vacation homes in Morro Bay became permanent residents? Mayor Sheetz opened the hearing to the public for comments and noted Council will not be taking action on the Annual Water Allo- cation Program this evening. Charles Palmer, 485 Estero, discussed sea water intrusion during low water years, and said the pipeline replacement program does nothing for the water situation. Dale Reddell, 680 Sequoia Court, stated the City is allocating water saved by the program; it is not water earned. The City is using less water and the retrofit program is responsible for the savings. John Heimal, Cedar Avenue, stated the retrofit program works; the City has not been retrofitting enough residences to achieve the ratio. Council should make an intelligent, informed decision and not act on the perception of people's confidence. Waiting for the rainy season does not make sense; retrofit decreases the MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 9, 1989 PAGE 10 water used unlike other projects proposed, and does not cost the City money. Mary Phillips, 2645 Ironwood, does not believe retrofit works. She said the City is using less water because of the elderly who are on limited incomes and cannot afford the increased water rates. She said people in Morro Bay would like to use more water if the water was available. Paul Donnelly, Pacific Street, encouraged Council to continue the pipeline replacement program because he may not get his street paved otherwise. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Lemons moved the hearing be continued to the January 23rd meeting, and the report be referred to the Planning Commission and Water Advisory Board for comments. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Council recessed from 8:18 p.m. to 8:29 p.m. B-6 CONTINUED PUBLIC HEARING ON NORTH MAIN STREET SPECIFIC DRAFT PLAN (LCP/GPA/ZOA 01-86A) Johannah Varland, Special Projects Planner, reviewed Council's past considerations on the North Main Street Plan and policies still to be decided by Council. Staff requested clarification or responded to Council questions regarding: 1) the plan to elimi- nate parking on Main Street in order to place a bikeway on both sides of the street, 2) the residential build -out potential of the MCR/R-4 zone; 3) staff contact with CalTrans relative to the feasibility of closing the northbound off -ramp from Highway One to Highway 41; 4) reducing the speed limit on Main Street; 5) the viability of curving Main Street for a more aesthetic look and to reduce vehicular speed; and 6) examine a staff -recommended amend- ment to the zoning ordinance to clarify prohibitions in the MCR zone. Councilmember Lemons commented the MCR/R-4 zone gives more devel- opment options and enables a property owner to maintain on -street parking, yet the plans for a bikeway make it necessary to elimi- nate parking on Main Street; isn't this a contradiction? Ms. Varland stated that is a conflict and she will address it in a subsequent report to Council. Council asked various questions to which Ms. Varland responded. Councilmember Baker asked about the plan to eliminate the Highway 41 off -ramp. Mr. Nichols stated that item was brought up during consideration of the Circulation Element in discussion regarding congestion at Main Street and Highway 41, and Main Street and n �J MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 9, 1989 PAGE 11 Radcliffe. Councilmember Wuriu asked if drain needs; Ms. Varland responded the the approved Storm Drain Master Plan of needs. the plan considers storm Specific Plan references the City to address those Mayor Sheetz opened the hearing to the public for comments. Jim Maul, 571 Embarcadero, commented the suggestion to route the bikeway along Alder Avenue to avoid prohibiting parking on a sec- tion of Main Street does not help the bikers very much and proba- bly will not be used by them. He also said the highway off -ramp at Main Street is very dangerous with the hook on -ramp. Chuck Clarke, Nutmeg, agreed with Mr. Maul's comments. He said the City should be planning for the next generation for bicycle lanes. Mayor Sheetz closed the hearing to the public. Council discussed the North Main Street bikeway; it was noted the difference between a Class 2 and a Class 3 bikeway is that a Class 3 is marked with signs and may also be marked with a stripe on the pavement. A Class 2 bikeway is a minimum of 4 feet wide, identified with a continuous white stripe with the words "bike lane" painted on the pavement and marked with signs at least every half mile. MOTION: Councilmember Wuriu moved a Class 2 bikeway be estab- lished along North Main Street with the jog to Alder Street between Sequoia and Elena. The motion was sec- onded by Councilmember Baker and unanimously carried. (5-0) Mayor Sheetz was not in favor of eliminating the off -ramp re- design from Highway 1 to Highway 41 from the Plan. Councilmember Lemons suggested the potential for realignment be left in the Plan for possible future refinement. MOTION: Councilmember Lemons moved a reference be included in the Plan noting a reconfiguration study is needed of the Main Street and Highway 1 and 41 on- and off -ramps. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) Mayor Sheetz requested clarification as to why Council cannot reduce the speed limit on Main Street in order to slow traffic. Mr. Nichols stated Council cannot legally arbitrarily lower the speed limit to slow traffic; Council can try to slow traffic through curvature of the street and encourage people to drive slower, but lowering the speed limit without a traffic survey to support the speed limit creates an illegal speed trap, and cita- tions for violation would not be processed in court. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 9, 1989 PAGE 12 Council discussed the street curve concept and agreed to leave it in the Plan as a developer option primarily for aesthetics. Council discussed the service commercial uses included in the new MCR/R-4 district and directed staff to proceed with an ordinance outlining the development standards; wording to the effect nox- ious odors are prohibited in the district should be included. Councilmember Lemons also questioned the four -inch diameter as the definition of a "mature" tree; Mr. Napper suggested Council refer the proposed ordinance as -is to the Planning Commission to receive their comments on that topic and others instead of amend- ing the text now. MOTION: Councilmember Lemons moved the staff recommendation to continue the public hearing on this subject to February 27, 1989, and instruct staff to initiate the ordinance process to enact the companion MCR/R-4 development standards. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) _ _ _. ► Ii7�f2fN•� C-1 ORDINANCE NO, 339 REQUIRING MANDATORY INSTALLATION OF RESIDENTIAL AND COMMERCIAL FIRE SPRINKLER SYSTEMS (SECOND READING/ADOPTION) Mayor Sheetz stated she received requests from the public to speak on this item, and they will be allowed to do so. Councilmember Odell stepped down from consideration on this item due to a conflict of interest. Mr. Napper stated this item is the second reading and adoption of an ordinance requiring all new developments and certain remodeled structures to install fire sprinkler systems. MOTION: Councilmember Baker moved Ordinance No. 339 be read by title and number only. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) Mr. Napper read Ordinance No. 339 by title and number only. Mayor Sheetz asked if anyone wished to speak on this subject. Tony Rodrigues, 890 Morro Avenue, stated the new ordinance will create a financial hardship; the systems are very expensive and need a 4" line to the street for a commercial system. He requested Council allow a 13D system in place of a commercial system if they adopt this ordinance because it is less expensive. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 9, 1989 PAGE 13 Jim Maul, 3009 Beachcomber, stated he is concerned about the cost of a sprinkler system as relates to the value you get from it. He noted there is only one contractor in the County that installs commercial systems. He suggested Council limit the requirement for sprinklers to garages and mechanical rooms instead of total residences. Dale Reddell, 680 Sequoia, stated he has a license to install sprinkler systems; however, he opposes the ordinance. He sug- gested Council send the Ordinance to the Planning Commission so the public can voice its opinion. He stated he owns one of the few buildings sprinklered in Morro Bay which cost $2.50 per square foot plus $100 per sprinkler head. Also, a monthly ser- vice has to be hired to service and maintain the alarm system, with telephone line charges to San Luis Obispo, all of which costs $69.00 per month. He said Council promoted a downtown parking district last year to give businesses an incentive to remodel; this action takes away that incentive by adding this cost back in. Dave Baker, a contractor representing the North County Contrac- tor's Association, questioned if provisions were to be made for the safety of Morro Bay residents who do not build or remodel their homes? He said the insurance companies give no break on insurance for fire sprinklers, and the fire -retardant materials contractors use today are more cost effective than to install sprinklers. Mayor Sheetz closed the item to the public. Councilmember Baker stated structures have been built with fire- proof materials for years and still people lose their lives in fires. He said the only way to stop a fire from spreading is to put water on it shortly after it starts. Insurance companies he checked with said they allow a 10%-15% annual discount on premi- ums for fire sprinklers. He also believed the requirement would save the City a great deal of money by not requiring additional fire facilities and manpower as soon as might be necessary. He responded to the question regarding the Morro Bay population that will be left unprotected by stating he would like there to be a requirement for sprinklering all homes, but knows that is not possible and said the City has to start somewhere. MOTION: Councilmember Baker moved for the adoption of Ordinance No. 339. The motion was seconded by Mayor Sheetz. Councilmember Wuriu stated he has a difference of opinion about the ordinance. He does not believe sprinkling of single family homes is necessary and would be going beyond anything the City needs to do. He noted very few cities in the United States have this mandatory requirement. He suggested the subject be studied MINUTES - MORRO BA• ITY COUNCIL • REGULAR MEETING - JANUARY 9, 1989 PAGE 14 further and perhaps the ordinance should be worded to take care of specific houses with a high rate of danger for fire. Councilmember Lemons did not believe Council should approve an ordinance of this nature which does not also include the People's Self -Help Housing (PSHH) project; a sprinkler system is as neces- sary for the senior segment of the population as anyone else. He said he could support a requirement to sprinkler a new subdivi- sion, apartment house, or homes on hillsides. He agreed the item should be referred to the Planning Commission. Mayor Sheetz reminded him of her initial suggestion regarding development of this ordinance that it only apply to hillside homes which are difficult to reach by firefighters. Councilmember Baker commented he would have liked the PSHH pro- ject included in the ordinance; however, the federal government will not pay for the installation of sprinklers and the project could not have gone forward. He asked Councilmembers if they could support the ordinance if Section 2b,c, and d were elimi- nated; this would leave the requirement for sprinklers in newly - constructed dwelling units only. Councilmember Wuriu requested staff return with a revised ordinance to cover high risk single family homes and modify the requirements for remodeling projects to some extent. Mr. Napper stated if Council wishes to make changes to the ordi- nance, it must be reagendized for introduction and first reading at a subsequent meeting. Councilmember Baker withdrew his motion to adopt ordi- nance No. 339, and Mayor Sheetz withdrew her second. Council directed staff to revise the ordinance in accordance with Council discussion this evening; it was also Council consensus the ordinance did not have to be referred to the Planning Commission. D-1 DISCUSSION OF POTENTIAL PLANNING COMMISSION REFORMAT AND COMPOSITION Mr. Napper stated this item is agendized at the request of Coun- cilmember Lemons to discuss reformatting the Planning Commission. Included in the staff report is a survey of how neighboring jurisdictions constitute their planning commissions. Councilmember Lemons stated he believed the number of Planning Commissioners should continue at five rather than seven. How- ever, he strongly believes the term of office should be two years rather than four, and a commissioner should be required to resign if he/she files for local elected office. MINUTES - MORRO BAPCITY COUNCIL 10 REGULAR MEETING - JANUARY 9, 1989 PAGE 15 Councilmember Odell was not clear what the resignation to run for elected office would achieve; he said the Council would be dis- couraging people to take a chance to run for office and might be making the position more political. Councilmember Lemons stated a planning commissioner running for office can use his/her plan- ning commission seat as a forum in which to express political views; an individual should not have that advantage over opposing candidates. Councilmember Baker stated people do use their experience on com- missions or boards as qualifications for running for office; he does not believe a commissioner should be required to resign if running for elected office. Councilmember Wuriu agreed politics in boards and commissions should be limited; however, he did not see how this would resolve the problem. Mayor Sheetz commented experience on boards and commissions is valuable in running for office. Councilmember Lemons maintained the resignation rule is not deny- ing anyone the opportunity to run for office. Currently, there is the potential to abuse the position on the Planning Commission for political gain, and he believed the opportunity should be eliminated. The majority of the Council determined no action was necessary to change the Planning Commission ordinance. D-2 CONSIDERATION OF JOINT MEETING AND ADVISORY BOARD Mr. Napper stated the City's water program is at a point where Council needs to select one or two projects to build; a meeting with the Water Advisory Board will give Council an opportunity to discuss preferred action to take regarding additional water supplies. MOTION: Councilmember Baker moved Council set Monday, 30 January 1989 in the Veterans' Hall at 7 PM for a joint meeting with the Water Advisory Board, and instructed staff to notice the meeting and prepare the appropriate water project status and cost reports. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mayor Sheetz detailed some of the plans for the City's 25th Anniversary Celebration. She stated she has asked Councilmember Lemons to organize a golf tournament; Councilmember Baker to han- dle concerts and a parade; and Councilmember Odell to plan activ- MINUTES - MORRO BAPCITY COUNCIL REGULAR MEETING - JANUARY 9, 1989 PAGE 16 ities with the waterfront businesses. Most of the fishermen will be at sea during this period, but have stated they will plan a barbecue for the Harbor Festival. She asked Councilmember Wuriu if he would organize the service clubs about how they can participate. Mayor Sheetz stated an anniversary dinner will be held on July 17th. The tall -ship California will issue a coin with the ship on one side and something depicting Morro Bay on the other side to celebrate our anniversary. The Chamber of Commerce is orga- nizing an auction. She noted several other activities and stated she has received very positive and enthusiastic responses from everyone. Councilmember Lemons asked about a budget for the program. Mayor Sheetz stated funds could be taken from the Community Promotions Fund; the Harbor Festival will not be using City funds to the extent they usually do because it is becoming self-sufficient. E. CLOSED SESSION MOTION: Councilmember Baker moved the meeting adjourn to Closed Session. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) Mayor Sheetz stated the meeting is adjourning to Closed Session in accordance with Government Code Section 54956.9(b)(1); signif- icant exposure to litigation exists. The meeting adjourned to Closed Session at 10:35 p.m. and returned to regular session at 10:58 p.m. F. MOTION: Councilmember Wuriu moved the meeting be adjourned. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) The meeting adjourned at 10:58 p.m. Recorded by: �G&4 ARDITH DAVIS City Clerk