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HomeMy WebLinkAboutJanuary to June (2)c as i�'90 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 25, 1990 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 Hearings 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 JUNE 11, 1990 A-2 STATEMENT OF INVESTMENTS - MAY 1990 A-3 EXPENDITURE REPORT - MAY 1990 A-4 AWARD OF CONTRACT FOR FY 1990-91 CUSTODIAL SERVICES FOR CITY OFFICE BUILDINGS TO BEAR FACTS CLEANING OF LOS OSOS, CA A-5 PROCLAMATION DECLARING JULY 1990 AS "RECREATION AND PARKS MONTH" A-6 SET DATE FOR INTERVIEW OF WATER ADVISORY BOARD APPLICANTS B. UNFINISHED BUSINESS NONE C. NEW BUSINESS NONE 1 D. PUBLIC HEARINGS REPORTS & APPEARANCES D-1 CERTIFICATION OF CITIZENS INITIATIVE MEASURE TO REFORM WATER ALLOCA- TION POLICIES; AND DETERMINATION TO ADOPT INITIATIVE AS -IS OR ADOPT RESOLUTION NO. 81-90 PLACING IT ON THE 06 NOVEMBER 1990 BALLOT D-2 APPEAL OF PLANNING COMMISSION APPROVAL OF CONDITIONAL USE PERMIT NO. 18-90 ALLOWING A PSYCHIC SERVICES BUSINESS AT 2598 NORTH MAIN STREET (HESS, BLAKE, WILSON, SYLVESTER, BARKLEY, MURPHY, HUTCHINSON: APPELLANTS; JOHN MERINO, APPLICANT) D-3 CONSIDERATION OF ADOPTING WATER ADVISORY BOARD RECOMMENDED REVISED WATER RATE SCHEDULE (RESOLUTION NO. 83-90) D-4 RESOLUTION NO. 80-90 ADOPTING FY 90-91 CITY BUDGET AND ESTABLISHMENT OF APPROPRIATIONS LIMIT FOR FY 90-91, AND RESOLUTION NO. 78-90 INCREASING THE SEWER RATE SCHEDULE BY 10% D-5 CONSIDERATION OF FIRST AND SECOND QUARTER WATER ALLOCATION AWARDS FOR 1990, AND STATUS REPORT REGARDING WATER BASIN AND CITY WELL LEVELS D-6 CONSIDERATION OF WATER ALLOCATION OPERATING PROCEDURES FOR 1990 BUILDING PROGRAM RELATIVE TO: 1) PREFERENCE FOR AFFORDABLE HOUSING PROJECTS; 2) PREFERENCE TO RESIDENTIAL CONVERSION PROJECTS NOT REQUIRING ADDITIONAL WATER ALLOCATIONS; AND 3) TRANSFER OF WATER EQUIVALENCIES BETWEEN PROPERTIES E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.9(A), LITIGATION ♦ BRYN V. CITY OF MORRO BAY, WCAB 88 SBA 60885 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. 2 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 25, 1990 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 Don Funk Forrest Henderson Nick Nichols City Administrator City Attorney Finance Director City Clerk Associate Planner ASSt. City Admin. Public Works Dir. Woody Shoemaker of the Coast Christian Church gave the invoca- tion, and Horace Strong led the Pledge of Allegiance. PUBLIC COMMENT 1. Ray Kaltenbach, 473 Sicily, read a letter from the Edsel Car Club regarding their participation in this year's Har- bor Festival. They have been requested by the Harbor Festival organizers to relocate their car display due to expanding Harbor Festival activities on the Embarcadero. The letter stressed the amount of money spent during the event by Edsel Club participants in Morro Bay and their disappointment in this treatment. Mr. Kaltenbach said he does not understand this approach, particu- larly in light of a City study to improve the business economy; a few selfish individuals rule what is good for Morro Bay. 2. Ann Freeman, 785 Cabrillo, said she understands Williams Brothers has filed a vesting map with the City. She said Council has the option under State law to refuse the request now because of the new voters' initiative to rezone the land. If the vesting map is approved at this time, the initiative will have no affect on the Williams Brothers property. 3. Charles Palmer, 485 Estero, referenced recommendations from the City's 1982 Water Management Plan which the City has not accomplished. He also stated one of the terms of the sewer grant was for the City to build a reserve fund for replacement of the plant, and there is no reserve fund. Sewer rates have increased by 129%, and despite that Morro Bay does not have a long term capital plan for sewer or water. City officials could be legally MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 25, 1990 PAGE 2 held responsible to its corporate stockholders (taxpayers) for mismanagement. 4. Nelson Sullivan, 450 Fairview, stated there is no sign designating the stairway near the Embarcadero Inn as a public property; he believes it should be properly signed so people know it is there. He also stated the vesting map is being processed on a fast track in an obvious effort to circumvent the initiative process. 5. Ron Hillman, Harbor Street, requested the P.G.&E. power plant in Morro Bay be asked to be decommissioned. He said people are still speeding in shopping parking lots. He objected to the billboard entering Morro Bay nouthbound because it says "A Place to Relax"; it should say "Unique Fishing Village". He likes to bowl but does not like to commute to San Luis Obispo; he sug- gested a bowling alley be built in Morro Bay. DECLARATION OF FUTURE AGENDA ITEMS 1. Councilmember Lemons requested a resolution be prepared congratulating the Morro Bay High School Automotive Team on their National Championship win in Washington, D.C. 2. Councilmember Odell requested staff investigate the possibility of a grey water ordinance similar to the ones adopted in Santa Barbara City and County. 3. Mayor Sheetz asked the City Attorney to respond to the questions regarding the Williams Brothers vesting map. Ms. Skousen stated State law is clear the City cannot refuse to pro- cess a vesting tract map. Williams Brothers submitted a vesting map and it is being processed the same as any other map. The City's new vesting map ordinance will be effective June 29th; the Williams Brothers map is being processed under existing State law. Mayor Sheetz asked what is the map's relationship to the initia- tive? Ms. Skousen stated if the application is found complete and later approved by the Planning Commission and City Council, Williams Brothers will have vested zoning rights as of the date the application is found complete. If the City does not act by July 4th, the map will automatically be deemed complete by State law. If the map is approved, the initiative will not be able to revoke the zoning as to the project (vesting map) that is found to be complete. The initiative will not have as much affect as the proponents hoped, but will still have some effect. The law does not require the City to approve the map; that discretion still rests with the City. A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF JUNE 11, 1990 Mr. Napper recommended Council approved the minutes as submitted. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 25, 1990 PAGE 3 A-2 STATEMENT OF INVESTMENTS - MAY 1990 Mr. Napper recommended Council receive the report for file. A-3 EXPENDITURE REPORT - MAY 1990 Mr. Napper recommended Council approve the Expenditure Report as submitted. A-4 AWARD OF CONTRACT FOR FY 1990-91 CUSTODIAL SERVICES FOR CITY OFFICE BUILDINGS TO BEAR FACTS CLEANING OF LOS OSOS, CA Mr. Napper recommended Council award the contract to Bear Facts Cleaning of Los Osos in the amount of $17,940, and authorize the City Administrator to execute the Contract for Services. A-5 PROCLAMATION DECLARING JULY 1990 AS "RECREATION AND PARKS MONTH„ Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-6 SET DATE FOR INTERVIEW OF WATER ADVISORY BOARD APPLICANTS Mr. Napper recommended Council authorize staff to re -advertise the position with a final filing date of 13 July 1990. Mayor Sheetz wished to pull Item A-6; since the City is having difficulty filling the Water Advisory Board position, she sug- gested the position be left vacant, and the by-laws of the Water Advisory Board be changed from a 9-member board to a 7-member board. MOTION: Councilmember Wuriu moved for approval of Items A-1 through A-5. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) MOTION: Mayor Sheetz moved staff be instructed to prepare a change in the Water Advisory Board by-laws reducing the membership from 9 members to 7 members. The motion was seconded by Councilmember Wuriu. Councilmember Lemons requested Item A-6 be approved as submitted also; the City can recruit for members during the time the changes are being made. A determination may be needed regarding which classifications to eliminate on the Water Advisory Board due to the reduction in members. It is possible Council will change their minds about reducing the number of members if appli- cations are received during the next advertising period. The motion was unanimously carried. (5-0) MOTION: Councilmember Lemons moved staff be authorized to re - advertise the vacant position with a filing date of 13 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 25, 1990 PAGE 4 July 1990. The motion was seconded by Councilmember Baker and carried with Councilmember Odell and Mayor Sheetz voting no. (3-2) B. UNFINISHED BUSINESS NONE C. NEW BUSINESS NONE D. PUBLIC HEARINGS, REPORTS & APPEARANCES D-1 CERTIFICATION OF CITIZENS INITIATIVE MEASURE TO REFORM WATER ALLOCATION POLICIES; AND DETERMINATION TO ADOPT INITIATIVE AS -IS OR ADOPT RESOLUTION NO. 81-90 PLACING IT ON THE 06 NOVEMBER 1990 BALLOT Ardith Davis advised Council the initiative petition to reform water allocation policies has been examined and found to be suf- ficient. Council has the option of either adopting the initia- tive as -is, or approving Resolution No. 81-90 which will place the matter before the voters on November 6th. Council can also decide if they wish to prepare an argument against the initia- tive. The County has assigned letters to the initiatives: Mea- sure "G" is the emergency medical services item; Measure "H" is the Williams Brothers initiative; and Measure "I", if Resolution No. 81-90 is adopted this evening, will be the water allocation reform initiative. Councilmember Lemons asked if the Council could ask for the City Attorney's impartial analysis to answer specific questions. Ms. Skousen stated no, the analysis is to be done independently by the City Attorney without input from the Council. Councilmember Lemons asked if he could request a report separate from the analysis which will answer questions? Ms. Skousen stated Council can always authorize the City Attorney to prepare any report to answer their questions. Mayor Sheetz opened the hearing to the public for comments. Nelson Sullivan, 450 Fairview and petition proponent, character- ized the City Attorney's analysis to a water allocation initia- tive he prepared in 1988 as outrageous, and was concerned her impartial analysis will not be impartial. He stated her summary of the present initiative had two obvious errors, and he would hope the analysis is better this time. MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 81-90. The motion was seconded by Councilmem- ber Wuriu and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 25, 1990 PAGE 5 Councilmember Lemons stated he would like the City Attorney to answer some specific questions with regard to the initiative: 1) with regard to Section la of the Initiative, would the completion of the Coastal Streams Diversion Project, the San Bernardo Dam Project, or the City taking part in the State Water Project be a project performed by the City and, if so, would the City then be constrained from allocating any of that water?; 2) essentially the same question with respect to Section if involving those projects. MOTION: Councilmember Lemons moved the City Attorney be requested to prepare a written response to the ques- tions. The motion was seconded by Mayor Sheetz. Councilmember Baker stated he would like an additional question answered: is there any method allowed for allocating water under the proposed initiative? Councilmember Lemons amended his motion to included Councilmember Baker's question; Mayor Sheetz accepted the amendment. The motion as amended was unanimously carried. (5-0) Mayor Sheetz asked if Councilmembers wished to write an opposing argument to the initiative? MOTION: Councilmember Baker moved Council write the argument against the initiative with assistance of citizens who wish to provide input. The motion was seconded by Mayor Sheetz and carried with Councilmembers Lemons and Odell voting no. (3-2) D-2 APPEAL OF PLANNING COMMISSION APPROVAL OF CONDITIONAL USE PERMIT NO. 18-90 ALLOWING A PSYCHIC SERVICES BUSINESS AT 2598 NORTH MAIN STREET (HESS. BLAKE. WILSON. SYLVESTER, BARKLEY, MURPHY. HUTCHINSON: APPELLANTS; JOHN MERINO, APPLICANT) Mr. Napper introduced Don Funk, new Associate Planner for the City who will present the appeal item this evening. Mr. Funk stated the Planning Commission approved the Conditional Use Permit for psychic services at 2598 North Main Street on May 21st. The appellants filed timely appeals and the matter is before Council for their decision. The appeals are based on three main issues: religious, moral, and safety. Mr. Funk stated the Police Department has contacted cities with this or similar types of business and discovered no problems with regard to safety. With regard to the moral and religious concerns, the First Amendment precludes the City from using this as a basis for denying a permit. He recommended Council deny the appeal and uphold the Planning Commission's decision. Mayor Sheetz opened the hearing to the public for comments. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 25, 1990 PAGE 6 Vicki Hess, 350 Pico, stated more people would have protested this permit if a larger area was notified by mail; the Code pro- vides only those within 300 feet of the site have to be noticed. She said while staff is concerned the applicant's rights be upheld, they are not upholding her rights. This nation is based on the God of the Bible and this is not being done with the approval of God. Children will be standing under the sign which advertises palm reading while they wait for their school bus. She reminded Council they were elected to represent everyone, not just the one person on the street who wants the business there. It will be detrimental to the neighborhood. Elizabeth Murphy, 2575 Greenwood, urged Council to vote their conscience and decide on the highest good for the community. She does not believe there is a need for a psychic business to oper- ate in Morro Bay. Sherry Merino, applicant, stated she is not bringing anything bad to the City. She is trying to re -locate her business here to conduct palm, tarot, and psychic readings. She had the same business in Morro Bay some time ago. Ray Kaltenbach, 473 Sicily, said he keeps track of Jean Dixon's predictions and none of them come true. If people are stupid enough to pay money for this information, let them. James Lowery, 480 Bonita, stated this is not the type of business that is needed in the community; it has no value. He asked who made a recommendation to approve this use? Mr. Napper responded Community Development Director Bill Farrel made the recommenda- tion and the Planning Commission approved it; its use is compati- ble with the zoning in the neighborhood. Donna Cooley, 351 Oahu, stated this business does not provide for the community's general health, welfare, and safety. She objected to a children's bus stop directly in front of the busi- ness, and she believes living close to the business will bring property values down. Randy Shoenoman, Fresno, stated Council should listen to the peo- ple, and the majority of the people seem to be against this type of business at this location. Mayor Sheetz closed the hearing to the public. Councilmember Odell quoted the First Amendment of the Constitu- tion which states the lawmakers "...shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof...". He said took an oath to uphold these laws; they are there to protect everyone. He believes he is not allowed to deny this use based on moral or religious reasons; he must uphold the Constitution of the United States and of California. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 25, 1990 PAGE 7 Councilmember Baker agreed with Councilmember Odell. He stated he does not live far from the location of this business, and he does not object to it being there. Councilmember Wuriu stated it appears the business meets every necessary legal qualification to go into operation. It is not the Council's right or legal duty to rule on the moral or reli- gious aspects of the situation. MOTION: Councilmember Baker moved Council deny the appeal and uphold the Planning Commission's approval by adopting Resolution No. 79-90. The motion was seconded by Coun- cilmember Odell and unanimously carried. (5-0) D-3 CONSIDERATION OF ADOPTING WATER ADVISORY BOARD RECOMMENDED REVISED WATER RATE SCHEDULE (RESOLUTION NO. 83-90) Ms. Burt stated as a result of budget workshop meetings, Council directed the Water Advisory Board recommendations concerning a water rate structure be scheduled for reconsideration. Council first considered these rates in November 1989; the schedule includes an open-ended mathematical rise in rates, and is the Board's arithmetic formula. Councilmember Wuriu requested a minor change be made in the monthly meter charges for the 5/8" meter category to include all single family residential and condominiums, regardless of their existing meter size. Mayor Sheetz opened the hearing the public for comments. Charles Palmer, 485 Estero, read from a prepared statement con- cerning the City's current water situation. He illustrated his analysis of water rates with graphs depicting Morro Bay customers and their water use in 1989 and 1990, price comparisons for dif- ferent size meters, and pricing theories. His basic premise is water customers need an incentive to conserve, and this can be accomplished by increasing rates in direct relationship to the increase in water use. Ray Kaltenbach, 473 Sicily, stated people in Morro Bay have been conserving since 1977. James Lowery, 480 Bonita, agrees with the conclusion the more water you use, the more you should have to pay for it. He believes it would definitely save water. Ron Hillman, Harbor Street, asked where he can obtain simple information on this subject; he is confused and asked if clarifi- cation is available? Mayor Sheetz stated we would try to help him out. Mayor Sheetz closed the hearing to the public. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 25, 1990 PAGE 8 Mayor Sheetz asked the Finance Director to explain the premise of the Water Advisory Board's recommended rate structure. Ms. Burt stated Council is faced with costs to acquire new water and the costs of actual water production to homes and businesses. The meter charge is for water production, and the rate structure pays for consumption of water. The formula recommended by the Water Advisory Board provides for an ever-increasing rate; every unit of water costs more than the unit before. Mayor Sheetz asked the City Attorney about the legality of the proposed rate structure. Ms. Skousen stated it is legal. Councilmember Baker stated the Water Advisory Board proposal increases water funds by 31%, and Mr. Palmer's increases revenues by 37%. Ms. Burt stated if there is no change in water usage, the Water Advisory Board formula should generate an additional $140,000 per year; if additional conservation results, the figure could be $125,000 per year. Mayor Sheetz stated the cost of water is getting higher all the time; we probably pay less for water than anyone else. Water is a necessity and it is time to go forward with acquiring new water. She stated the impact to the low water user is minimal. Councilmember Lemons stated the increase to the average water user is approximately 97G per month. For a high water user using 953 units of water per month the current cost is $2,680; under the new formula the cost will be $97690*. He believes the struc- ture is fair and commended the Water Advisory Board for their work on this formula MOTION: Councilmember Wuriu moved for approval of the water rate structure as proposed by the Water Advisory Board. After discussion, Councilmember Wuriu withdrew his motion. MOTION: Councilmember Wuriu moved for adoption of Resolution No. 83-90 approving a new water rate schedule, with an amendment to require all single family residences and single family condominiums to pay the 5/8" ($4.00) meter charge, regardless of current meter size. The motion was seconded by Councilmember Baker and unani- mously carried. (5-0) D-4 RESOLUTION NO. 80-90 ADOPTING FY 90-91 CITY BUDGET AND ES- TABLISHMENT OF APPROPRIATIONS LIMIT FOR FY 90-91, AND RESO- LUTION NO. 78-90 INCREASING THE SEWER RATE SCHEDULE BY 10% Mr. Napper reviewed the modifications made to the budget by Coun- cil after four budget workshops had been held. Mr. Napper reviewed Resolution No. 78-90 which sets the 1990/91 sewer rates, and Resolution No. 80-90 adopting the 1990/91 Budget and setting the City appropriation limit. He stated this year's *Amended 7-9-90; figure should be $3,690. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 25, 1990 PAGE 9 budget is $1,785,199 below the appropriation limit; the tax growth in Morro Bay is not exceeding the growth in the Consumer's Price Index and population. Mr. Napper also requested Council amend the Budget to include the new revenue ($130,000) to be generated by Council's adoption of the water rate schedule, and allocation of those funds for design of a water treatment plant. Mr. Napper suggested only $125,000 be allocated at this time for the design of a water treatment plant, as a hedge against reduced revenues caused by further water conservation with the rate pricing schedule. MOTION: Councilmember Lemons moved the Budget be amended to include the estimated increase of revenues from the new water rate structure, and allocation of $130,000 for preliminary design of a water treatment plant. The motion was seconded by Councilmember Baker and unani- mously carried. (5-0) Mayor Sheetz opened the hearing to the public for comments. Charles Palmer stated one of the conditions of the City's 1981 sewer grant was for the City to build a sewer fund; where is it? It is not in the budget, and it should be several million dollars now. Ms. Burt stated the City is complying with the grant condi- tions; there is currently $250,000 in reserves for the replace- ment of the sewer plant and Council will be including an addi- tional $8,.500 in this Budget. James Lowery stated water and sewer rates are going up; he believes sewer rates are high already. He asked Council to take into consideration the taxpayer. Mayor Sheetz stated the Budget was discussed at length during Budget Workshops; Council is not making rash decisions. MOTION: Councilmember Wuriu moved for adoption of Resolution No. 78-90 setting the 1990-91 sewer rates. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) MOTION: Councilmember Baker moved for adoption of Resolution No. 80-90 adopting the 1990-91 Budget, including the amendment regarding revenues from the new water rate schedule and expenditure for a water treatment plant design, and setting the appropriation limit. The motion was seconded by Councilmember Lemons and unani- mously carried. (5-0) D-5 CONSIDERATION OF FIRST AND SECOND QUARTER WATER ALLOCATION AWARDS FOR 1990. AND STATUS REPORT REGARDING WATER BASIN AND CITY WELL LEVELS Mr. Nichols updated Council on the current conditions of City well and aquifer conditions which are very low for this time of year. He said total water production is 1% above last year's MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 25, 1990 PAGE 10 demand, and the population is slightly up from last year. The water conditions are bad and the Water Advisory Board is working on a critical emergency water supply condition plan for Council's consideration. Mr. Napper stated because of current water conditions, staff rec- ommends Council declare there will be no retrofit, pipeline, or blend water allocations awarded by the City in 1990. Mayor Sheetz opened the hearing to the public. Brian Davidson was concerned if Council decides not to consider water allocations again this year; the situation puts him in a financial bind. He asked where well levels have to be in order for Council to award water allocations? Mr. Nichols stated he could not answer the question; there is no way to measure how much rainfall it takes so all users can have enough water for next year. Ray Kaltenbach encouraged Council to follow the staff recommendation. James Lowery said even if there is sufficient water, he is not in favor of a lot of growth. He said there should be a moratorium on building until further notice or until more water is found.. Tom White stated he is under the impression water is saved by retrofitting. He does not understand why Council will not allow development to continue under the retrofit program if it saves water. Why scrap a program that appears to be working? Colleen Sturgeon questioned if Council does not award water this year, will they award water to the 1990 list first if they award water in 1991? Mr. Funk stated unless people drop off the list, positions will not change. Charles Palmer commented on the depth the wells are dropping and the possibility of sea water intrusion. Mayor Sheetz closed the hearing to the public. Councilmember Lemons stated under normal circumstances retrofit can be a program that saves water; if this is so, why is 100% retrofit included in the recommendation for no water allocations? Mr. Napper stated retrofit does work; however, the community is being constrained from using water they would otherwise wish to use. He believes the tolerance level of the community is low if Council requires a 4th level of water conservation, and still allows building to continue. Councilmember Lemons stated even though the program might increase the water available to the public, staff is recommending against allowing retrofit due to perception of the public? Mr. Napper stated yes; people are concerned when they are required to 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 25, 1990 PAGE 11 stringently conserve and then see building occurring next door. He noted, however, it is a policy decision for Council to make. Councilmember Wuriu stated he is a strong supporter of retrofit program, and is convinced it works. He also realizes the water situation is so critical, the City is paying $30,000 per month for a desal unit to clean brackish water for public consumption. He believes the Council should vote to not issue water alloca- tions now for the same reason they did in March. Councilmember Odell commented the problem with retrofit is once a water hook-up is made, the City has no control over how much water will actually be consumed. Mayor Sheetz indicated she has always supported retrofit; how- ever, it is time to re -address the situation. She noted action Council has taken with regard to water: reverse osmosis unit; raising water rates; conservation restrictions. She does not intend to vote tonight to release any new water allocations. Councilmember Lemons stated he continues to receive reports from San Simeon regarding their program of retrofitting all toilets; it appears very successful. Councilmember Baker stated he believes in the retrofit program; however, he agrees with Mr. Napper's assessment of the public's perception if the City continues to allow new building. MOTION: Councilmember Lemons moved Council declare no retrofit, pipeline, or blend water allocations will be made in 1990. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) Council recessed from 8:43 p.m. to 8:53 p.m. D-6 CONSIDERATION OF WATER ALLOCATION OPERATING PROCEDURES FOR 1990 BUILDING PROGRAM RELATIVE TO: 1) PREFERENCE FOR AFFORD- ABLE HOUSING PROJECTS; 2) PREFERENCE TO RESIDENTIAL CONVER- SION PROJECTS NOT REQUIRING ADDITIONAL WATER ALLOCATIONS; AND 3) TRANSFER OF WATER EQUIVALENCIES BETWEEN PROPERTIES Mr. Napper discussed the items Council had continued to this meeting and outlined various staff recommendations. He stated staff supports priority status for affordable housing projects if the housing is 100% for low-income households and does not con- tain market -rate units. Awarding priority to conversion projects which already have water is acceptable only if the City is not awarding allocations through the retrofit, pipeline, or blend programs. Mr. Napper discussed the transfer of water equivalen- cies between properties noting conditions and restrictions must be formulated to administer a program of this nature. Mr. Napper also recommended Council revise the regulation requir- ing building permits to be pulled within 180 days of water awards. This places a burden on builders to obtain financing MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 25, 1990 PAGE 12 when it is unknown if Council will award quarterly water alloca- tions. He suggested combining the life of a water allocation with that of the conditional use permit in order to allow time for securing the necessary permits, design, financing, etc., of one's project. This impact is felt by major developers as well as owner -builder projects. Ms. Skousen outlined her concerns with regard to transferring water equivalencies from one property to another. She stated similar activity has taken place in other communities, but always with a finding there is a public benefit to be derived. She can- not think of a public benefit in this instance and is concerned the City could create a right without legal authority. The minute Council legislatively states an individual can sell water equivalencies attached to his property, the City has created a commodity that has value to it. If Council changes the law at a later time, it may be considered taking a property right which requires compensation. The logic for not allowing boat owners to sell their mooring spaces on the bay applies in this instance. Mayor Sheetz asked if a public benefit could be found if an indi- vidual owner of two properties wished to transfer some equivalen- cies from one of his properties to the other on the basis the second property is more desirable to develop while the one with water is not as attractive? Mr. Skousen stated in that case, one might find a public benefit; it should be clear sufficient equiv- alencies are left on the first property for it to be developed. Councilmember Lemons asked about property developed prior to the issuance of water equivalencies? Ms. Skousen stated in the Municipal Code all properties are grandfathered in with water they were using in 1977. Councilmember Wuriu asked what are the adverse effects of a water equivalency transfer program? Ms. Skousen stated someone could sue on the basis the program is illegal because there is no pub- lic benefit. If the courts rule against the City, it would be difficult to go back and find out who had what water. Mr. Napper noted there is no immediacy for deciding on the water equivalency transfer issue tonight. Mayor Sheetz opened the hearing to the public for comments. Ray Kaltenbach favored the conversion of allowing new structures to be built in place of old ones; he said it upgrades the neigh- borhood. He said there should be restrictions on the improve- ments so a larger home with more intensive water use is not allowed. Mr. Kaltenbach also discussed requiring installation of an over -head water line which will provide hot water to the tap immediately instead of waiting for the cold water to turn hot. Nelson Sullivan was not in favor of the water equivalency trans- fer program. He said an individual owning a laundromat could buy 25 lots and transfer water to them and build homes. People still 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 25, 1990 PAGE 13 have to use a laundromat, and will go to another one. Residen- tial to residential transfer may be acceptable. Ned Rogoway encouraged Council to adopt the provision to allow water equivalencies to coincide with the life of conditional use permits. Ron Hillman stated he has a laundromat and commented horizontal washing machines save water compared to vertical ones. He is in favor of affordable housing, and thinks transfer of water equiva- lencies is a good idea but make it an air -tight contract. Robert Ahmet, Courtney & Associates, supported the proposal to give priority to conversion projects having their own water. Mayor Sheetz closed the hearing to the public. Ms. Skousen suggested Council adopt the procedures considered this evening by ordinance rather than resolution. The proposals significantly affect the use of private property, and public hearings should be held. MOTION: Councilmember Odell moved the Municipal Code be amended to make the life of water equivalency awards co -termi- nus with the conditional use permit. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) MOTION: Councilmember Odell moved Council support the concept of allowing projects that do not require additional water to proceed in priority as suggested by staff. The motion was seconded by Mayor Sheetz and carried with Councilmember Lemons voting no. (4-1) MOTION: Councilmember Wuriu moved priority be given to 100% low-income housing up to 50% of the available residen- tial units awarded each year under Measure F. The motion was seconded by Councilmember Odell and unani- mously carried. (5-0) Council discussed the transfer of water equivalencies and pre- ferred to study the issue further before making a decision. Mayor Sheetz requested the City Attorney provide a report by the first meeting in August 1990 advising the City of the ramifica- tions of water equivalency transfers between properties. It was the general consensus this item will be rescheduled for the first meeting in August. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 25, 1990 PAGE 14 E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.9(A). LITIGATION ♦ BRYN V. CITY OF MORRO BAY, WCAB 88 SBA 60885 MOTION: Councilmember Lemons moved the meeting adjourn to Closed Session. The motion was seconded by Councilmem- ber Baker and unanimously carried. (5-0) Mayor Sheetz announced Council is adjourning to Closed Session in accordance with Government Code Section 54956.9(a), litigation, in the matter of Bryn v. City of Morro Bay. WCAB 88 SBA 60885. Council adjourned to Closed session at 9:55 p.m. and returned to regular session at 10:12 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 10:12p.m. Recorded by: ARDITH DAVIS City Clerk Cw ll,, 19gD 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 11, 1990 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 Hearings 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 limitedto 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 MAY 29, 1990 A-2 RESOLUTION NO. 73-90 APPROVING INTER -AGENCIES AGREEMENT FOR PUBLIC WORKS MUTUAL AID DURING EMERGENCIES A-3 RESOLUTION NO. 69-90 AWARDING CONTRACT FOR PROJECT NO. PW 89-15, PURCHASE OF PIPELINE MATERIALS AND FIRE HYDRANTS FOR WATERLINE REPLACEMENT PROGRAM, PHASE IV, AND APPROPRIATING ADDITIONAL PROJECT MONIES A-4 RESOLUTION NO. 71-90 RATIFYING AGREEMENT WITH ARROWHEAD INDUSTRIAL WATER, INC., FOR RENTAL OF PORTABLE REVERSE OSMOSIS UNIT FOR SUPPLEMENTAL EMERGENCY WATER A-5 ACCEPTANCE OF DEDICATION OF RIGHT-OF-WAY AT 3150 NORTH MAIN STREET (PULLED) A-6 RESOLUTION NO. 68-90 ACCEPTING DEDICATION OF RIGHT-OF-WAY AT 321 OAHU STREET A-7 RESOLUTION NO. 70-90 ACCEPTING DEDICATION OF RIGHT-OF-WAY AT 3310 NORTH MAIN STREET (DBA MAIN LIGHTING) (PULLED) 0 A-8 SET HEARING DATE (JUNE 25TH) FOR APPEAL OF PLANNING COMMISSION APPROVAL OF CONDITIONAL USE PERMIT NO. 18-90 ALLOWING A PSYCHIC SERVICES BUSINESS AT 2598 NORTH MAIN STREET (HESS, BLAKE, WILSON, SYLVESTER, BARKLEY, MURPHY, HUTCHINSON: APPELLANTS; JOHN MERINO, APPLICANT) A-9 SET DATE (21 JUNE 1990, 7PM) FOR A JOINT MEETING WITH THE CAYUCOS SANITARY DISTRICT BOARD OF DIRECTORS B. UNFINISHED BUSINESS B-1 RECONSIDERATION OF MATERIALS SELECTION FOR RECONSTRUCTION OF SOUTH T- PIER B-2 PROGRESS REPORT ON FINANCING ALTERNATIVES TO ASSIST UNREINFORCED MASONRY (URM) STRUCTURAL REHABILITATION ON PRIVATE PROPERTIES (PULLED) C. NEW BUSINESS C-1 RESOLUTION NO. 72-90 APPROVING CONSENT TO SUBLEASE A PORTION OF LEASE SITE 71 (MORRO BAY MARINA, INC.) TO GLEN LANE (DBA FLOWER BASKET) FOR A NON -PERMANENT OUTDOOR FLOWER STAND (601 EMBARCADERO; CUP 17-90) C-2 RESOLUTION NO. 77-90 APPROVING OPTIONAL LEASE AGREEMENT WITH MORRO BAY ENVIRONMENTAL RESEARCH CENTER FOR USE OF LEASE SITE 49/49W AS A MARINE RESEARCH AND EDUCATION CENTER D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 CERTIFICATION OF CITIZENS INITIATIVE MEASURE TO REZONE A PORTION OF WILLIAMS BROTHERS PROPERTY EAST OF HIGHWAY 1 AND MORRO BAY BLVD; AND DETERMINATION TO ADOPT INITIATIVE AS -IS OR ADOPT RESOLUTION NO. 76-90 PLACING IT ON THE 06 NOVEMBER 1990 BALLOT D-2 RESOLUTION NO. 75-90 ADOPTING A 1990/91 CITY MASTER FEE SCHEDULE AND RESOLUTION NO. 74-90 ADOPTING A BUSINESS LICENSE RATE SCHEDULE FOR FY 1990-91 D-3 CONSULTING SERVICES AGREEMENT WITH STEPHEN A. NUKES & ASSOCIATES FOR BUSINESS SECTOR ECONOMIC ANALYSIS AND ECONOMIC STRATEGY DEVELOPMENT ACTION PLAN E. CLOSED SESSION NONE F. ADJOURNMENT TO WEDNESDAY, 13 JUNE 1990 AT 8:30 AM IN THE MORRO BAY LIBRARY, 625 HARBOR STREET, MORRO BAY, CA, FOR FY 90-91 BUDGET WORKSHOP 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 - JUNE 11, 1990 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 Ardith Davis City Clerk William Farrel Community Dev. Dir. Forrest Henderson Asst. City Admin. Nick Nichols Public Works Dir. Steve Wolter Rec. & Parks Dir. Councilmember Baker led the Pledge of Allegiance, and Mayor Sheetz gave the invocation. 1. Carol Winston, 650 Avalon, suggested Council consider banning polystyrene containers at events the City is associated with, such as Art -in -the -Park and the Harbor Festival. She said aluminium and paper could be substituted and the cost passed along to the consumer., She also suggested recycling bins be placed along regular garbage bins in the City. This would encourage public participation in the City's recycling efforts. Perhaps in the future the City could market reusable containers with the City's insignia on the items? Mayor Sheetz suggested Ms. Winston contact Mike Upton, Adminis- trative Assistant, and through him the Solid Waste Management Board to consider her suggestions for a recommendation to Council. 2. Mary Phillips, 2645 Ironwood Avenue, requested Council discuss Item A-4 regarding the contract for a reverse osmosis unit; she discussed some of the hazards of the system. She also requested Council appear before the Whale Rock Commission to ask for 300 acre feet of emergency water. She noted Rancho Colina Mobilehome Park is having water trucked in for their residents because Mr. MacElvaine's well is dry. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 11, 1990 PAGE 2 Ms. Phillips also reported the City's Solid Waste Management Board meeting was cancelled, again, and she wasn't notified. Ron Hillmann, 420 Harbor, said it is a beautiful day, and sug- gested Council have someone sing a song at the beginning of the meeting along with the Invocation and Pledge of Allegiance. DECLARATION OF FUTURE AGENDA ITEMS None A. CONSENT CALENDAR �*wZ•ID10AV04 [IY�faT.��la■�yi[ ;�aIS17 =�:i�TM_�4�F�`L�I•7 C:�_ 7iL•IId Mr. Napper recommended Council approve the minutes as submitted. A-2 RESOLUTION NO. 73-90 APPROVING INTER -AGENCIES AGREEMENT FOR PUBLIC WORKS MUTUAL AID DURING EMERGENCIES Mr. Napper recommended Council adopt Resolution No. 73-90. PXxM 0DE001001•]=.[� :igul:LcS"•?_�.C�!•i�l�fl4.7:L•�r�[•]:��.,l�rL�L•1 • Mr. Napper recommended Council allocate $30,201 from the Water to this project account to materials. adopt Resolution No. 69-90, and System Maintenance Revenue Fund purchase waterline replacement A-4 RESOLUTION NO. 71-90 RATIFYING AGREEMENT WITH ARROWHEAD INDUSTRIAL WATER, INC., FOR RENTAL OF PORTABLE REVERSE OSMOSIS UNIT FOR SUPPLEMENTAL EMERGENCY WATER Mr. Napper recommended Council adopt Resolution No. 71-90. A-5 ACCEPTANCE OF DEDICATION -OF RIGHT-OF-WAY AT 3150 NORTH MAIN STREET (PULLED) A-6 RESOLUTION NO. 68-90 ACCEPTING DEDICATION OF RIGHT-OF-WAY AT 321 OAHU STREET Mr. Napper recommended Council adopt Resolution No. 68-90. A-7 RESOLUTION NO, 70-90 ACCEPTING DEDICATION OF RIGHT-OF-WAY AT 3310 NORTH MAIN STREET (DBA MAIN LIGHTING) (PULLED) r 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 11, 1990 PAGE 3 A-8 SET HEARING DATE (JUNE 25TH) FOR APPEAL OF PLANNING COMMIS- SION APPROVAL OF CONDITIONAL USE PERMIT NO. 18-90 ALLOWING A PSYCHIC SERVICES BUSINESS AT 2598 NORTH MAIN STREET (HESS. BLAKE. WILSON, SYLVESTER, BARKLEY, MURPHY, HUTCHINSON: APPELLANTS: JOHN MERINO, APPLICANT) Mr. Napper recommended Council set 25 June 1990 as the appeal date, and authorize staff to prepare the appropriate hearing notices and report. A-9 SET DATE (21 JUNE 1990, 7PM ) FOR A JOINT MEETING WITH THE CAYUCOS SANITARY DISTRICT BOARD OF DIRECTORS Mr. Napper recommended Council set Thursday, 21 June 1990, at 7PM in the Cayucos Fire Station for the joint meeting. Councilmember Baker requested Item A-2 be pulled for separate discussion. Councilmember Wuriu requested Item A-4 be pulled. MOTION: Councilmember Baker moved for the approval of the Con- sent Calendar with the exception of Items A-2 and A-4 for separate discussion, and Items A-5 and A-7 which have been pulled. The motion was seconded by Coun- cilmember Odell and unanimously carried. (5-0) A-2 RESOLUTION NO. 73-90 APPROVING INTER -AGENCIES AGREEMENT FOR PUBLIC WORKS MUTUAL AID DURING EMERGENCIES Councilmember Baker complimented staff on their preparation of the mutual aid agreement; he believes it is very important. A-4 RESOLUTION NO. 71-90 RATIFYING AGREEMENT WITH ARROWHEAD INDUSTRIAL WATER, INC.. FOR RENTAL OF PORTABLE REVERSE OSMOSIS UNIT FOR SUPPLEMENTAL EMERGENCY WATER Councilmember Baker requested additional research on the possi- bility of purchasing a reverse osmosis unit. He realizes the research cannot be completed prior to the emergency agreement taking effect July 1st. Councilmember Wuriu asked what will happen if the City receives rain and does not need the unit for the full four months; it is quite expensive at $30,000 per month. Mr. Nichols anticipates the equipment will be used at least through October. It will take 3 to 4 inches of rain for any recharge of the acquifer, and rains usually do not begin until November. MOTION: Councilmember Wuriu moved for approval of Items A-2 and A-4 on the Consent Calendar. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 11, 1990 PAGE 4 B. UNFINISHED BUSINESS_ B-1 RECONSIDERATION OF MATERIALS SELECTION FOR RECONSTRUCTION OF SOUTH T-PIER Mr. Nichols introduced Bob Stromsted, civil engineer with the firm of Moffat & Nichol, Engineers, who prepared the Review of Alternate Pier Designs for the South T-Pier. He noted in October 1989, Council approved a Harbor Advisory Board recommendation to re -build the South T-Pier in its existing configuration and loca- tion using concrete materials. The recommendation was based on a report from Fred Schott, Engineers. The Fred Schott firm was not interested in the design phase of the project, therefore the City contracted with Moffat & Nichol for that portion; this study resulted in a different cost perspective for materials. Mr. Nichols reviewed charts illustrating the cost differences. The matter is before Council to reconsider their direction on this issue. He said the Harbor Advisory Board has reviewed the subject and recommends Council approve using polyethylene -coasted steel bearing piles, steel pile caps, and timber stringers and deck; they also recommend using a fender pile system made of steel pipe covered with 4 inches of durable recycled plastic. The Harbor Advisory Board is aware of the increased costs to use these materials, but are concerned the environment could be dam- aged by use of creosote treated timber piles. The revised esti- mated cost of construction for the Harbor Advisory Board's recom- mendation is approximately $2 million. Mr. Nichols also referred to a letter from Department of Fish and Game Marine Biologist Bud Laurent regarding environmental con- cerns of using timber in the pier. He said Mr. Laurent is pre- sent to discuss those issues with Council. Harbor Advisory Board members are also present to answer Council questions. Mr. Nichols recommended Council make a decision on the materials even though funding has not been identified. Staff can begin work on the design now, and be able to go to bid as soon as a funding source is determined. Mayor Sheetz asked if some parts of the pier will not have to be reconstructed? Mr. Nichols stated engineers have estimated the portions which can be salvaged only have a life expectancy of 10 to 15 years; they recommend replacing all the pilings at this time in order to avoid major reconstruction within a few years, but approximately 80 feet of the superstructure inboard is salvageable. Mayor Sheetz asked how long it will take to complete construction once it has begun? Mr. Stromstead stated approximately nine months. She asked if the article regarding using recycled milk (plastic) cartons on a pier has any validity? Mr. Nichols stated this process was used for floating docks, not a pier. It is an MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 11, 1990 PAGE 5 alternative form of lumber, and not durable enough for a pier nor could it carry the envisioned structural loads. Bud Laurent, Marine Biologist with the Department of Fish and Game, reviewed his letter to Council regarding the hazardous effects on the environment when piers are made with chemically treated timber. He also discussed his efforts to access funding for the project if the pier is made with environmentally safe ma- terials; to date he has not discovered any promising possibilities. Councilmember Lemons asked Mr. Laurent if he knew of any Federal regulations prohibiting the use of creosote in piers, or of any bays, harbors, or fish communities damaged by creosote? Mr. Laurent stated no official statistics are available, but the City should still be concerned about toxicity. Mr. Nichols stated the Harbor Advisory Board analyzed annual maintenance costs for a timber vs. steel pier; a wood structure requires more maintenance than a non -wood structure. Mr. Stromstead stated a timber pier will require on -going maintenance at intervals of every 15 years, whereas a concrete pier may need one major reconstruction at 50 years. Councilmember Baker questioned the type of fire sprinklers to be used. Mr. Nichols stated it has not been determined; Chief Zerr is involved in the process and will make recommendations for fire sprinklers. MOTION: Councilmember Lemons moved for approval of the staff recommendation to rebuild the South T-Pier with steel pile/cap and timber stringer/deck materials, and plas- tic fender pile system. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) B-2 PROGRESS REPORT ON FINANCING ALTERNATIVES TO ASSIST UNREIN- FORCED MASONRY (URM) STRUCTURAL REHABILITATION ON PRIVATE PROPERTIES (PULLED) Mayor Sheetz stated since it is 7PM, Council will go on to Public Hearing items and return to New Business later. D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 CERTIFICATION OF CITIZENS INITIATIVE MEASURE TO REZONE A PORTION OF WILLIAMS BROTHERS PROPERTY EAST OF HIGHWAY 1 AND MORRO BAY BLVD; AND DETERMINATION TO ADOPT INITIATIVE AS -IS OR ADOPT RESOLUTION NO. 76-90 PLACING IT ON THE 06 NOVEMBER 1990 BALLOT aArdith Davis reviewed this item noting signature verification of the initiative petition to rezone a portion of Williams Brothers property to reduce the acreage allowed for commercial and to pro- hibit visitor -serving commercial has been completed and the ini- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 11, 1990 PAGE 6 tiative is certified as sufficient. She stated Council's two options at this time are to adopt the petition as -is, or approve Resolution No. 76-90 placing the matter on the ballot for voter determination on 06 November 1990. If Council adopts the Resolu- tion, they should also decide if they wish to prepare an argument against the initiative. Mayor Sheetz opened the hearing to the public; there were no com- ments and the hearing was closed. MOTION: Councilmember Baker moved for adoption of Resolution No. 76-90. The motion was seconded by Councilmember Odell. Councilmember Lemons asked if Council could request a report on the financial impact of the initiative if they adopt the Resolu- tion this evening? Ms. Davis stated yes, however, by they adopt- ing the Resolution, Council makes the determination they do not need the report to make a decision to place the initiative on the ballot. Councilmember Lemons requested the maker of the motion amend it to request staff prepare such a report. Councilmember Wuriu requested separate motions as he may wish to vote differently on the two issues. The motion was unanimously carried. (5-0) MOTION: Councilmember Lemons moved staff be directed to prepare a report on the initiative's fiscal impact and its effect on the internal consistency of the City's gen- eral and specific plans including the housing element, the consistency between planning and zoning, and the limitations on City actions under Section 65008 of the Government Code. The motion died for lack of a second. D-2 RESOLUTION NO. 75-90 ADOPTING A 1990/91 CITY MASTER FEE SCHEDULE AND RESOLUTION NO. 74-90 ADOPTING A BUSINESS LICENSE RATE SCHEDULE FOR FY 1990-91 Louise Burt stated the Business License Rate Schedule reflects the approval by the voters to annually adjust rates according to the change in the Consumer Price Index (CPI) from the previous year. She noted the CPI shows an increase of 5.5%, and rates have been adjusted accordingly. The Master Fee Schedule is a listing of the various fees for City services which cannot exceed the cost of providing the service. These fees have also been increased 5.5%. Mayor Sheetz opened the hearing to the public; there were no com- ments and the hearing was closed. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 11, 1990 PAGE 7 MOTION: Councilmember Odell moved for the adoption of Resolu- tion No. 74-90. The motion was seconded by Councilmem- ber Lemons and unanimously carried. (5-0) MOTION: Councilmember Odell moved for adoption of Resolution No. 75-90. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) D-3 CONSULTING SERVICES AGREEMENT WITH STEPHEN A. NUKES & ASSOCIATES FOR BUSINESS SECTOR ECONOMIC ANALYSIS AND ECONOMIC STRATEGY DEVELOPMENT ACTION PLAN Mr. Napper stated after discussion on this item at the last Coun- cil meeting, he contacted various individuals interested in the business community and provided them with a copy of Mr. Nukes' proposal. Council is in receipt of letters from the Chamber of Commerce and the Merchants Association basically endorsing the proposal with a reservation they be given the opportunity to pro- vide input into the process. The Chamber recommends a 3-member committee from the Chamber and Merchants work with Mr. Nukes and the City Administrator on the scope of the project. Mr. Napper stated he and Mr. Nukes have no objection; he voiced the concern this input might enlarge the scope which would require extra expenses. He recommended Council authorize the City Administra- tor to refine the project scope and execute the contract, in- struct the City Administrator to work with a 3-member delegation of the Chamber's Economic Development Committee, and allocate $10,000 from FY 89-90 General Fund Contingencies to the project. Mayor Sheetz opened the hearing to the public for comments. Bill Mazzacane, Chamber Director, said the Chamber is supportive in general, but has reservations. He acknowledged there have been 4 major economic studies completed in Morro Bay with little effect in increasing commerce. What the Chamber and the Mer- chants envision is a study aimed at analyzing the existing market in downtown, and they would like a voice in structuring the scope and methodology of the study so it is responsive and is not a rehashing of existing studies. Bill Shaffer, President of the Merchants Association, stated the Merchant's viewpoint is much the same as the Chambers. They are concerned positive suggestions resulting from the study may not be implemented by the City. He suggested a Blue Ribbon Committee as suggested by the Chamber in which one member of the Merchants Association is included. Merchants have a large financial stake in the City. Ann Freeman, 785 Cabrillo, stated the $9,975 cost of the study is not in the spirit of the law which requires projects over $10,000 be advertised for bid. The Council should require an indepen- dent, objective assessment of Morro Bay's development opportuni- ties; not a report from a consultant who has already made exten- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 11, 1990 PAGE 8 sive studies for the Williams Brothers project. She said a down- town consumer survey should be completed before a consultant is hired. She requested the agreement be tabled, and if it is to be done, that it go out to bid regardless of cost. Ed Biaggini stated his address is 1164 Market, he is on the Board of Directors for the Chamber of Commerce, and President of the Motel, Hotel and Restaurant Association. He said the business community wants to be part of the whole process, including before the contract is signed. Everyone in the business community is excited about this study as being one of the first times the City has come forward and suggested there is a problem with the minimal increase in sales taxes in Morro Bay. He welcomes that approach. Bruce Risley, 540 Piney Way, stated he recently read a 1972Sun- Bulletin article which indicates Morro Bay is repeating history. Many recommendations were made at that time for improvement of Morro Bay's economy; they were not implemented. Very few of the many studies the City has contracted have been used. He said there is an obvious lack of competitive shopping in Morro Bay that causes this problem. Mary Phillips said she "thinks some of them are waking up in Morro Bay. Amen, and hallelujah!" Ed Ewing, 238 Pacific, said if the Chamber of Commerce and Mer- chants are willing to work together with City staff on this pro- ject, it should go forward. Council has control to implement results of studies. Frank St. Denis, 629 Embarcadero, stated besides his business on the Embarcadero he also owns an art gallery in Carmel. He said the economy in Carmel is very depressed right now; gross sales revenue is down 42% over last year. He said a joint effort between the City, Chamber, and Merchants is a step in the right direction. "The worst good people can do is to do nothing." Steve Nukes, President of Steve Nukes & Associates, stated Morro Bay's situation shows the City's Transient Occupancy Tax is increasing while sales tax is declining; people are willing to spend the night in Morro Bay but are not spending money while they are here. If sales tax revenue (which is an unrestricted revenue source) decreases, either citizens will see an increase in costs or their level of service declines. He plans to take the information they are able to gather and look at it from a strategic standpoint so recommendations can be made to improve the situation. He believes the survey is extremely important; the City needs to know what the consumer thinks. Mr. Nukes stated although he did produce a study for Williams Brothers, his firm consists of impartial economic analysts and they advised Williams Brothers of this before they were hired. His main focuses in this project are the Downtown Area, Embarcadero and North Main Street and what can be done to increase sales tax. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 11, 1990 PAGE 9 Councilmember Odell asked what the City would be getting for the $10,000 contract? He already knows Morro Bay depends on the tourist industry, it is commercially underdeveloped, has a tight housing situation, under-utilized commercial property. The solu- tion is to encourage an up -grade and redevelopment of the commer- cial areas, and provide housing incentives for working -age fami- lies. Can we go further than this with Mr. Nukes' study? Mr. Nukes agreed some of the problems are obvious. He will try to determine where the commercial gaps are in the community. The study will address the business sector and come up with imple- mentable recommendations that can enhance the business sector. Keith Jeffries, 535 Bernardo, said the City's fourth year of drought is a contributing factor to the downward trend in sales tax. He believes the City has to work harder; people need to spend time in their businesses and provide customers with what they need. It does not take $10,000 to tell us people are not patronizing our businesses. He suggested the two major problems affecting this are the eyesore of P.G.&E.'s smokestacks, and the lack of signage coming off Highway 1. The Chamber of Commerce already knows what it needs to do. Katherine Walling, 440 Piney Way, stated during the months of October to March, a number of people come to Morro Bay looking for the butterflies; people in town send them to Pismo Beach. Trees have been allowed to be cut so the butterflies no longer come here. There needs to be more stringent penalties for those people who cut a tree down without a permit. Mayor Sheetz closed the hearing to the public. Mayor Sheetz stated when this subject first arose, her concern was for the whole community to be a part of it; Morro Bay is a splintered community and it is difficult to pull all different businesses together. She said the motel moratorium study was a folly as it did not look at the full picture. She favors the Steve Nukes study because it concerns the City as a whole. Councilmember Wuriu stated he is prepared to support funding the study since 3 major organizations in the City had meetings to discuss the issue and now favor its implementation. The state of business in Morro Bay is not good, and perhaps the study will help to make conditions better. Councilmember Baker stated he spoke forcefully at the last Coun- cil meeting against this report maintaining the reason sales tax is down in Morro Bay is because people shop out of town; a major shopping center will help tremendously. However, he is now con- cerned about letting the Chamber and Merchants down if they are in favor of such a study. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 11, 1990 PAGE 10 Councilmember Lemons stated he will support contracting with Stephen A. Nukes & Associates for the study, but if the study returns with recommendations for improvements on the part of the City, the City must commit to following -through with the recom- mendations. He reminded Council of a previous Council which con- tracted for a study which showed the City needed a community con- ference center. The Council invited developers to submit propos- als for a conference center but did not follow-through with the matter. If Council has no intention of supporting the results of such a study, they should not vote in favor of it. Councilmember Odell agreed there should be follow-through on the study. He has reservations about it, but will vote in favor since the business community is behind it. He requested the scope of the project be returned for Council review before the contract is actually signed. There was discussion regarding this issue and the composition of the committee from the Chamber. Councilmember Baker asked how long the study will take? Mr. Nukes stated 8 to 10 weeks. MOTION: Councilmember Lemons moved the City Administrator and a 3-person delegation work together to develop a contract with Steve Nukes within the $10,000 limitation. The motion was seconded by Mayor Sheetz. Councilmember Odell requested an amendment to the motion to include the agreement return to Council before it is signed. He wants the business people to tell him it is worthwhile. Coun- cilmember Lemons stated if Mr. Napper is unable to reach an agreement with the Chamber committee, he is sure Council will hear about it. He is comfortable the City Administrator under- stands it is to be a mutual agreement. Councilmember Baker is convinced the sales tax in Morro Bay is not going to catch up with the rest of the County until modern shopping is available to the residents. However, he will vote in favor of the motion in support of the merchants. It is also nec- essary to get the people in town to vote in favor of Williams Brothers. Mayor Sheetz stated although she and Councilmember Baker have businesses in downtown Morro Bay, the City Attorney advises they do not have a conflict in voting on this issue since their bene- fit from the action taken is no greater than anyone else in the business community. The motion was unanimously carried. (5-0) Council recessed from 8:32 p.m. to 8:44 p.m. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 11, 1990 PAGE 11 C. NEW BUSINESS C-1 RESOLUTION NO. 72-90 APPROVING CONSENT TO SUBLEASE A PORTION OF LEASE SITE 71 (MORRO BAY MARINA. INC.) TO GLEN LANE (DBA FLOWER BASKET) FOR A NON -PERMANENT OUTDOOR FLOWER STAND (601 EMBARCADERO: CUP 17-90) Mr. Napper reviewed the request to allow a non -permanent outdoor flower stand at the Morro Bay Marina lease site. He noted Coun- cil also approved another non -permanent outdoor use for this site recently. There is a one-year sunset clause on the Conditional Use Permit issued by the Planning Commission to reconsider the use. He noted the vendor is not allowed to rove up and down the Embarcadero but must stay on the lease site. The Resolution pre- pared amends the Lease Agreement allowing this type of use and grants the sublease operation. MOTION: Councilmember Odell moved for adoption of Resolution No. 72-90. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) C-2 RESOLUTION NO. 77-90 APPROVING OPTIONAL LEASE AGREEMENT WITH MORRO BAY ENVIRONMENTAL RESEARCH CENTER FOR USE OF LEASE SITE 49/49W AS A MARINE RESEARCH AND EDUCATION CENTER Mr. Napper stated Council created Lease Site 49/49W in October 1989, and approved a CUP for a marine research center on this site in November 1989. The item before Council this evening is the Master Lease and Lease Option to lease the property to Morro Bay Environmental Research Center; the Option awaits the Research Center's success in securing financing for the construction of the Center. If they secure financing by January 1993, the site will be leased to them at $4,490 base rent adjusted annually in accordance with the CPI. The lease strictly prohibits any use but a marine research center. Mr. Napper noted the site is being temporarily leased during the 3-year option period to Associated Pacific Constructors for mooring of vessels or marine construc- tion equipment storage. Councilmember Lemons asked how the base rent of $4,490 was deter- mined. Mr. Napper explained the previous Harbor Director's cal- culations using recent appraisals of similar property and adjust- ing figures upward in accordance with inflation to arrive at an appraisal of $56,000. Mr. Napper mentioned the property is 2500 square feet of water area, and 1000 square feet of land, and the rent payment is based upon a value of $15.60 per square foot, comparable to surrounding lease properties. MOTION: Councilmember Lemons moved for adoption of Resolution No. 77-90. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) r MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JUNE 11, 1990 PAGE 12 E. CLOSED SESSION None F. ADJOURNMENT MOTION: Councilmember Odell moved the meeting be adjourned to Wednesday, 13 June 1990, at 8:30 a.m. in the Library Community Room to conclude Budget Workshops. The motion was seconded by Councilmember Wuriu and unani- mously carried. (5-0) The meeting adjourned at 8:57 p.m. Recorded by: D TH DAVIS City Clerk 9qb 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 29, 1990 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 Hearings 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 MAY 14, 1990 A-2 STATEMENT OF INVESTMENTS - APRIL 1990 A-3 EXPENDITURE REPORT - APRIL 1990 A-4 PROCLAMATION DECLARING JUNE 3-9, 1990 AS "SAFE BOATING WEEK" A-5 DECLARATION OF PROPERTY SURPLUS TO THE CITY'S NEEDS A-6 RESOLUTION NO. 62-90 RATIFYING INTERIM AGREEMENT WITH MEDI-RIDE, INC. OF GLENDALE, CA, FOR DIAL -A -RIDE OPERATION SERVICES A-7 APPROVAL OF 5-YEAR AGREEMENT WITH P.G.&E. FOR CONTINUED LEASE OF THEIR LAND AT LILA KEISER PARK FOR CITY WATER WELLS NO. 14 AND 15 B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 373 AMENDING TITLE 16, SUBDIVISIONS, TO ESTABLISH REGULATIONS FOR VESTING TENTATIVE MAPS (SECOND READING/ADOPTION) B-2 STATUS REPORT ON RESEARCH OF EMERGENCY WATER SUPPLY OPTIONS 1 C. NEW BUSINESS C-1 STREET ADVISORY COMMITTEE RECOMMENDATION REGARDING CITIZEN REQUEST FOR ON —STREET PARKING MODIFICATIONS IN THE VICINITY OF 935 MAIN STREET, HARBOR STREET WEST OF MAIN STREET, AND DUNES STREET AT MAIN STREET C-2 CONSIDERATION OF CITY SUPPORT OF AB 145 (COSTA), THE CALIFORNIA WILDLIFE, PARK, RECREATION, COASTAL, AND MUSEUM BOND ACT OF 1990 C-3 CONSULTING SERVICES AGREEMENT WITH STEPHEN A. NUKES & ASSOCIATES FOR BUSINESS SECTOR ECONOMIC ANALYSIS AND ECONOMIC STRATEGY DEVELOPMENT STUDY C-4 DEVELOPMENT OF CITY RESPONSE TO WHALE ROCK COMMISSION LETTER CONCERNING THE COASTAL STREAMS DIVERSION AND STORAGE PROJECT (PHASE I) D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 PUBLIC HEARING FOR PROPERTY OWNER APPEALS TO CITY NOTICE FOR ABATEMENT OF WEEDS D-2 REQUEST BY ASSOCIATED UNIONS OF ATASCADERO FOR CITY SUPPORT OF STATE LEGISLATIVE INVESTIGATION OF UNSAFE CONDITIONS AT ATASCADERO STATE HOSPITAL D-3 PUBLIC HEARING ON PROPOSED CITY BUDGET FOR FY 1990-91 D-4 ORDINANCE NO. 374 AMENDING THE MORRO BAY MUNICIPAL CODE, SECTION 13.04.330, TO INCLUDE A TEMPORARY FREEZE ON WATER HOOK—UPS IN THE CITY COUNCIL'S EMERGENCY WATER CONSERVATION POWERS (INTRODUCTION/FIRST READING) D-5 RESOLUTION NO. 65-90 APPROVING A SITE DEVELOPMENT REPORT FOR DEVELOPMENT OF A BIKEWAY CONNECTING MAIN STREET AND ATASCADERO ROAD ON P.G.&E. POWER PLANT PROPERTY E. CLOSED SESSION IMolzh 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 6 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 29, 1990 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 City Administrator Judy Skousen City Attorney Louise Burt Finance Director Ardith Davis City Clerk William Farrel Community Dev. Dir. Forrest Henderson Asst. City Admin. Nick Nichols Public Works Dir. Steve Wolter Rec. & Parks Dir. Horace Strong gave the invocation, and led the Pledge of Allegiance. PRESENTATION PROCLAMATION DECLARING JUNE 3-9. 1990 AS "SAFE BOATING WEEK" PRESENTATION TO COAST GUARD AUXILIARY. MR. KRANN Mayor Sheetz read the Proclamation declaring "Safe Boating Week" and presented it to Mr. Krann of the Coast Guard Auxiliary. She announced activities to raise the community's awareness of boat- ing safety will be held by the Coast Guard on Sunday, June 3rd, at the North T-Pier. PUBLIC COMMENT 1. Mary Phillips, 2645 Ironwood, stated she has provided Mr. Napper with material concerning desalting water which she requests be copied to the Council. She discussed the health dan- gers of desalting water, and stated she had been in contact with P.G.&E. regarding their desalting systems. P.G.&E. has permis- sion from the Health Department to use desalted water only for their machinery and equipment; they cannot use it for human consumption. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 29, 1990 PAGE 2 2. Ron Hillmann, 420 Harbor Street, said people speed in the Williams Brothers Shopping Center racing for parking places, and there should be a law against it. He suggested taking the lamp -posts out of the center divider on North Embarcadero; this would allow emergency vehicles to travel on the divider during an emergency. Mr. Hillmann stated there should be steps in the sidewalk on the steep hill on Harbor Street at Front Street. 3. Ann Freeman, 785 Cabrillo Place, referred to Item C-3 on the agenda regarding a consulting contract with Stephen A. Nukes. She does not believe Morro Bay should spend $10,000 on this and suggested contacting Cal Poly and using their expertise if a study of this nature is needed. She did not think Mr. Nukes could be objective about Morro Bay's downtown area since he has already presented his position on how the new Williams Brothers Shopping Plaza will positively affect downtown. Ms. Freeman also suggested the possibility of accessing existing pipelines in Morro Bay being used by private industries to trans- port oil and fuel to pump water from the State Aqueduct. DECLARATION OF FUTURE AGENDA ITEMS None. A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF MAY 14, 1990 Mr. Napper recommended Council approve the minutes as submitted. A-2 STATEMENT OF INVESTMENTS - APRIL 1990 Mr. Napper recommended Council receive the report for file. A-3 EXPENDITURE REPORT - APRIL 1990 Mr. Napper recommended Council approve the Expenditure Report as submitted. A-4 PROCLAMATION DECLARING JUNE 3-9. 1990 AS "SAFE BOATING WEEK" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-5 DECLARATION OF PROPERTY SURPLUS TO THE CITY'S NEEDS Mr. Napper recommended Council declare the property as surplus to the City's needs, and authorize its disposal by public auction. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 29, 1990 PAGE 3 A-6 RESOLUTION NO. 62-90 RATIFYING INTERIM AGREEMENT WITH MEDI- RIDE, INC. OF GLENDALE, CA, FOR DIAL -A -RIDE OPERATION SERVICES Mr. Napper recommended Council adopt Resolution No. 62-90 A-7 APPROVAL OF 5-YEAR AGREEMENT WITH P.G.&E. FOR CONTINUED LEASE OF THEIR LAND AT LILA KEISER PARK FOR CITY WATER WELLS NO. 14 AND 15 Mr. Napper recommended Council approve continuation of the 5-year agreement with P.G.&E., the monthly increase to $350, and autho- rize the Mayor to execute the Agreement. MOTION: Councilmember Baker moved for the approval of the Con- sent Calendar as recommended. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) go B-1 ORDINANCE NO. 373 AMENDING TITLE 16, SUBDIVISIONS, TO ESTAB- LISH REGULATIONS FOR VESTING TENTATIVE MAPS (SECOND READING/ ADOPTION) Mr. Napper stated this item is before Council for second reading and adoption at this time. Councilmember Lemons asked the City Attorney if she had reviewed the final document and it is okay? Ms. Skousen stated yes. MOTION: Councilmember Lemons moved Ordinance No. 373 be read by title and number only. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) Mr. Napper read Ordinance No. 373 by title and number only. MOTION: Councilmember Lemons moved for the adoption of the sec- ond and final reading of Ordinance No. 373. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) B-2 STATUS REPORT ON RESEARCH OF EMERGENCY WATER SUPPLY OPTIONS Mr. Nichols reviewed the status of his conversations with local farmers to cease irrigating their crops this summer in return for adequate compensation from the City. One leaseholder of approxi- mately 380 acres in the Morro Valley is willing to cease irriga- tion if the City pays him the crop value of approximately $1.6 million. Another property owner in the Chorro Valley will not irrigate about forty acres if the City pays him $6,000 by June 7, 1990. Two property owners are willing to negotiate an agreement with the City to pay for appraisers, attorney fees, etc. to MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 29, 1990 PAGE 4 determine value. The process to develop such an agreement would take too long to help the City this summer. And, another prop- erty owner declines to discuss the matter with the City. There is still one property owner the City has not talked to. Mr. Nichols stated there is no way to estimate how much water would be preserved downstream for the City if any of the agricul- tural users ceased irrigation this summer. It is unknown how much they use to irrigate. As a result, it is difficult to assess the value of the water gained if the City agrees to any of the property owners' compensation requests. He requested Council give direction if they wished staff to continue negotiating with the farmers. Mayor Sheetz asked Mr. Nichols if he is familiar with the pipelines Ms. Freeman mentioned? Mr. Nichols stated he has a letter from a contractor who operates the Navy's jet fuel pump station that there is a rumor the Navy may shut down operations at their Morro Bay terminal. It is possible the City can work with them for use of the pipelines. The Navy has been contacted by the County, but has received no response to date. Mr. Nichols stated he will contact Texaco regarding the use of their pipelines, noting the 16" pipes at Texaco are preferable to the 6" lines at the Navy terminal. Councilmember Wuriu questioned the status of transporting water from glaciers? Mr. Nichols stated the necessities to treat the water, transport the water from ship to an on -shore facility, and acquire the necessary permits from State agencies are needed before this water can be used. This process will take a consid- erable amount of time which will not help the City during this summer's crisis. He commented glacial water and possibly using Texaco or Navy pipelines should be looked at as long-term ele- ments to the water source problem. Councilmember Lemons suggested the discussions with the Morro and Chorro Valley farmers be tabled; it is too late to reach an agreement for summer emergency supplies. He suggested the time to negotiate with the farmers was in the Winter of 1989. MOTION: Councilmember Lemons moved the negotiations to compen- sate farmers not to irrigate this summer be tabled. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 29, 1990 PAGE 5 C. NEW BUSINESS C-1 STREET ADVISORY COMMITTEE RECOMMENDATION REGARDING CITIZEN REQUEST FOR ON -STREET PARKING MODIFICATIONS IN THE VICINITY OF 935 MAIN STREET, HARBOR STREET WEST OF MAIN STREET, AND DUNES STREET AT MAIN STREET Mr. Nichols stated the City received to review the commercial loading zon the yellow curb does not match th requested the parking space on Harbor and Mid -State Bank's driveway be red be a legal parking space and when impossible for delivery trucks to store. Mr. DeSomer also believes th4 tions recently installed on Dunes unnecessary. a request from Bob DeSomer a in front of his business; a parking "T's". He also Street between his driveway curbed. It is too short to cars do park there, it is enter the driveway to his 20-minute parking restric- Street at Main Street are Mr. Nichols stated the Street Advisory Committee mend adjusting Resolution No. lution No. 63-9 State Bank and restrictions o Street Advisor for a period of and staff recom- the loading zone at 935 Main Street and adopting 64-90 to formalize the action, and adopting Reso- 0 prohibiting parking in the area between the Mid- DeSomer driveways. Mr. Nichols stated the parking n Dunes Street were placed there recently, and the y Committee recommends staff monitor the situation time before reconsidering the action. RESOLUTION NO. 63-90 ESTABLISHING A NO -PARKING ZONE ON A PORTION OF HARBOR STREET WEST OF MAIN STREET MOTION: Councilmember Wuriu moved for the adoption of Resolu- tion No. 63-90. The motion was seconded by Councilmem- ber Baker and unanimously carried. (5-0) RESOLUTION NO. 64-90 ESTABLISHING A COMMERCIAL LOADING ZONE ADJA- CENT TO 935 MAIN STREET MOTION: Councilmember Baker Councilmember Baker moved for the adoption of Resolution No. 64-90. The motion was sec- onded by Councilmember Wuriu and unanimously carried. (5-0) C-2 CONSIDERATION OF CITY SUPPORT OF AB 145 (COSTA), THE CALIFORNIA WILDLIFE, PARK, RECREATION, COASTAL, AND MUSEUM BOND ACT OF 1990 Mr. Wolter stated Council requested information regarding AB 145 at their last meeting. Staff learned AB 145, the $874 million California Wildlife, Park, Recreation, Coastal, and Museum Bond Act of 1990, is being held in the Senate Natural Resources and Wildlife Committee. He reviewed a list identifying how the funds will be allocated and how they might benefit Morro Bay. Mr. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 29, 1990 PAGE 6 Wolter said the League of California Cities is opposed to this Bill because it requires applicants for the competitive grants to have a State -approved Housing Element. On that basis, staff rec- ommends Council oppose AB 145 due to the inappropriate linkage of these issues. Councilmember Lemons asked what is the status of the City's Hous- ing Element? Mr. Wolter stated the City has an adopted Housing Element. Councilmember Lemons asked why this City should oppose the Bill? Mr. Napper stated the recommendation is based on the philosophy of tieing the grant funds to something that does not have anything to do with the purpose of the funds. The League's opposition represents a consolidated effort by cities to remove this requirement from the legislation. Councilmember Lemons commented there is considerable legislation passed each year which does not benefit small cities. Morro Bay has enjoyed successful application for Coastal Conservancy and Roberti-Z'Berg grant applications in the past, and it is possible the City could again successfully qualify for these funds re- authorized by AB 145. He is willing to wait until the Bill comes out of Senate Committee, but is not in favor of opposing it. Mayor Sheetz requested Mr. Wolter keep the Council informed on the status of the AB 145 and any changes to the bill. Coun- cilmember Lemons requested a copy of the bill. C-3 CONSULTING SERVICES AGREEMENT WITH STEPHEN A. NUKES & ASSO- CIATES FOR BUSINESS SECTOR ECONOMIC ANALYSIS AND ECONOMIC STRATEGY DEVELOPMENT STUDY Mr. Napper stated during this year's budget preparation process, it was apparent the City's sales tax is becoming status quo in comparison to other General Fund Revenues. In order to provide comparisons between funds, staff made some calculations based on a seven-year trend. The Transient Occupancy Tax over a seven- year period has increased by approximately 50%; sales tax shows a 28% growth. Several points were raised regarding these figures: 1) are more people coming to town, but spending less?; 2) con- cerns about some of the vacancies in properties that is occur- ring; 3) the turn -over in businesses; and 4) some cities in the County are enjoying an increase or more stabilized sales tax income. Mr. Napper reviewed his recent discussions with Stephen Nukes, an economist familiar with the area who does economic forecasting, about the possibility of analyzing what is happening in Morro Bay. Mr. Napper noted the target areas for such a study are the Downtown area, the Embarcadero, and North Main Street. He envi- sions more than just number -crunching; rather, an analysis of the gaps in the economy and suggestions for improvement. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 29, 1990 PAGE 7 Mr. Napper requested Council consider this evening whether the sales tax trend is a matter of concern to them, and if so, what should be done about them, if anything. He reviewed what other cities have done to help their business communities be success- ful. He said the Agreement before Council is to give them some- thing concrete to review and make a decision on whether this is a venture they wish to take. He has not consulted with the Mer- chants Association or the Chamber of Commerce which may be an avenue Council would wish to explore. Mr. Napper stated the proposed contract is in the amount of approximately $10,000. Councilmember Wuriu stated he did not want to make a decision on this until he heard from the Chamber and any other interested business organizations. Councilmember Baker stated paying for a study of this nature is wasting money. He knows why the sales tax is dropping: people are not shopping in Morro Bay because we do not have the shopping facilities here. He maintained the Williams Brothers project will bring increased sales tax to Morro Bay because people will begin shopping here rather than other portions of the County. Mr. Napper stated although the City knows where sales tax is going, steps can be taken to improve the economy in Morro Bay by finding out what prospects are available in the Morro Bay busi- ness areas with or without Williams Brothers. Mayor Sheetz referred to a news item which reported factory out- let stores opening in Pismo Beach; this is the trend of the future. She noted tourists asking her where Morro Bay's shoe store, kitchen shop, children's shop is located? She said the City and the merchants must work together and find out what is wrong in Morro Bay. MOTION: Councilmember Wuriu moved this issue be carried over to the next meeting as a Public Hearing item. The motion was seconded by Councilmember Baker. Councilmember Lemons questioned the proposed agreement provision that the report remains the property of the consultant. Mr. Napper stated he has discussed that matter with Mr. Nukes and they both agree the document would be a public document and the property of the City of Morro Bay. Councilmember Baker asked if it would be appropriate to contract for the study jointly with the Chamber of Commerce and Merchants so they would help in funding it? Mr. Napper stated he did not know if either organization had the funds available for the study. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 29, 1990 PAGE 8 The motion was unanimously carried. (5-0) C-4 DEVELOPMENT OF CITY RESPONSE TO WHALE ROCK COMMISSION LETTER CONCERNING THE COASTAL STREAMS DIVERSION AND STORAGE PROJECT (PHASE I) Mayor Sheetz stated since it is 7:00 p.m., Council will defer discussion and action on this item to the end of the meeting, and move on to Public Hearings at this time. D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 PUBLIC HEARING FOR PROPERTY OWNER APPEALS TO CITY NOTICE FOR ABATEMENT OF WEEDS Mr. Napper stated this item is scheduled for the annual appeals to the City's notification to property owners to abate their weeds. He stated no appeals have been received to date. If Council receives appeals this evening, he requested they refer them to staff for investigation and report at the next meeting. Council should formally close the public hearing this evening. Mayor Sheetz opened the hearing to the public for appeals; there were no appeals. MOTION: Councilmember Lemons moved the hearing for appeals to the City's notice to abate weeds be closed. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) D-2 REQUEST BY ASSOCIATED UNIONS OF ATASCADERO FOR CITY SUPPORT OF STATE LEGISLATIVE INVESTIGATION OF UNSAFE CONDITIONS AT ATASCADERO STATE HOSPITAL Mr. Napper stated he recently received a request from the Associ- ated Unions of Atascadero for City Council agenda time to explain what they have in mind as far as correcting security problems at Atascadero State Hospital. A coalition has been formed to peti- tion legislators and the Little Hoover Commission for an investi- gation of the unsafe conditions at Atascadero State Hospital. They are requesting Council endorse their efforts by adopting a resolution of support. This effort comes in the wake of a recent murder of an employee by an inmate at the State Hospital. Mayor Sheetz asked Mr. Napper to explain what the Little Hoover Commission is. Mr. Napper stated it is a branch of the Executive Office of the State of California formed in the 19601s, and is responsible for examining various services of the State of California for duplication of efforts, revising provisions, and organization. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 29, 1990 PAGE 9 Randy Blackwell, Registered Nurse at Atascadero State Hospital, encouraged Council to adopt the Resolution. He said there are numerous dedicated people working with the worst of society; proper treatment cannot happen in an employee situation that is considered dangerous. He noted attempts have been made in the past to alleviate the problem, but those efforts have failed. The problem is a limited amount of staff due to budget restraints which ties the hands of management. He stated a number of Morro Bay residents also work at the Hospital. Mayor Sheetz opened the hearing to the public. David Broadwater, Psychiatric Technician at Atascadero State HOs- pital, stated Atascadero State Hospital is the largest forensic facility for the criminally insane in the world. He said since the April 4th murder the hospital has been called a war zone; an average of 130 aggressive acts against staff and residents take place per month. He said the situation is intolerable and is going on unchanged. The Associated Unions of Atascadero is reaching out to the community for help. Michael Touber, 8377 Amapoa and Psychological Social Worker, spoke in favor of the proposed Resolution. Jay Salter, Chairman of the Associated Unions of Atascadero, stated he will respond to any questions by Council. Mary Phillips, 2645 Ironwood Ave., requested Council adopt the Resolution unanimously. She has friends and relatives working at the Hospital whose lives are in constant danger. Mayor Sheetz closed the hearing to the public. Mayor Sheetz stated the situation is not new; twelve years ago when she served on the Commission on the Status of Women there were complaints and attempts to improve the situation. Councilmember Baker stated there are numerous dangerous jobs throughout the County and State. He has read the information provided by the AUA, and stated he knows at least three people who work at the Hospital and discussed this situation with them. They believe the hospital is safe, generally speaking, and they came to the conclusion they are not going to work every day in fear for their lives. Steps are being taken by management to relieve the problem areas. Councilmember Baker does not believe it is the responsibility of this Council to push for a State investigation; employees and management should work together to resolve problems. Councilmember Wuriu stated he believes there are problems at Atascadero State Hospital; however, in his discussions with peo- ple who work there he is convinced the problems can be dealt with MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 29, 1990 PAGE 10 from within. He has spoken with people in responsible positions at the State Hospital and believes steps are being taken to elim- inate problems. He stated Council is being asked to become involved in something they really know nothing about. He noted part of the problem is money; staffing is not what it should be. Mayor Sheetz asked if another State Hospital employee had recently died? Mr. Salter stated yes, however, it has not been determined how he died. He noted the AUA has no disagreement with the administrators at the hospital; many of them are in favor of the AUA's purpose to change attitudes in Sacramento. Councilmember Odell commented on the large bureaucracy the AUA is attempting to move. He believes an investigation will benefit the operation by at least getting someone to take a good, hard look at the situation. MOTION: Councilmember Odell moved for adoption of Resolution No. 66-90. The motion was seconded by Mayor Sheetz and failed on the following vote: AYES: Odell, Sheetz NOES: Baker, Lemons, Wuriu D-3 PUBLIC HEARING ON PROPOSED CITY BUDGET FOR FY 1990-91 Mr. Napper stated staff released the proposed FY 1990-91 Budget at the last Council meeting. Tonight's public hearing allows the public to comment on the budget if they are unable to attend next week's budget workshops which begin Monday, June 4th at 8:30 a.m. in the Library Community Room. Mr. Napper reviewed major changes in the budget and presented pie charts detailing percentage of expenditures and revenues for each department. He recommended comments received during the public hearing be dealt with in the budget workshops when Council is considering all City needs. A number of non-profit agencies are requesting funding this year, and he noted he has just received a request from the Action for Animal Rights organization requesting the City increase its spay -neuter allocation from $2,000 to $4,000. Councilmember Baker discussed the fire ladder truck for which funds were allocated last year and noted the budget contains no additional funding necessary for the truck. He reviewed informa- tion acquired by Chief Zerr concerning another used ladder truck and requested an explanation as to why funds are not budgeted for this purpose. Mr. Napper stated there are increases in the oper- ating budget and a limited amount of discretionary funds avail- able for projects. He said the truck Chief Zerr has found costs $198,000, and noted the additional expenses involved in acquiring the truck and building a shelter for it. Mr. Napper stated the MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 29, 1990 PAGE 11 monies are not there for that expenditure; however, the matter is Council policy and can be discussed during the budget workshops. Councilmember Baker stated the City needs the ladder truck as much now as it did when the City almost bought a truck from another supplier, and the City needs to come up with the funds to purchase one. Mayor Sheetz opened the hearing to the public. Ann Freeman, 785 Cabrillo Place, suggested funds be appropriated for a better sound system. Mayor Sheetz stated that has been taken care of out of this year's budget. Howard Gaines, 441 Orcas, commented on the balance owing to the General Fund by the Harbor Fund noting there is a $12,090 surplus in the Harbor Trust Fund. The surplus should be transferred to the General Fund to reduce the deficit. He stated the Insurance Fund is $890,000 with a surplus of $22,320; he asked where the revenue and expenses come from for this account? He stated in the 1988-89 budget, 70% of the fire budget went for medical ser- vices rather than fire protection. He requested a break -down on who is using the services, and encouraged a user -pay financed budget. Mr. Gaines stated the bed tax in Morro Bay is 8%, and the County average is 9%. Linda Merrill, 391 Sequoia, stated she is against using public money for the Steve Nukes study. The $10,000 could be used to improve the quality of life in Morro Bay. She suggested instead the City pave the tennis courts at the High School, work with the County to build another golf course, and work with the State Department of Parks and Recreation to build walking and bicycle paths. Mayor Sheetz closed the hearing to the public. Mayor Sheetz stated Council will not take action this evening and reminded everyone the budget workshops begin Monday, June 4th at 8:30 a.m. in the Library Community Room. Councilmember Lemons asked if the Fire Department report which details the number of medical responses they make could be sent to Mr. Gaines? Mr. Napper stated yes. Mayor Sheetz commented the City is not responsible for the tennis courts at the High School. Also, another golf course would be nice, but water is not available. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 29, 1990 PAGE 12 D-4 ORDINANCE NO. 374 AMENDING THE MORRO BAY MUNICIPAL CODE. SECTION 13.04.330, TO INCLUDE A TEMPORARY FREEZE ON WATER HOOK-UPS IN THE CITY COUNCIL'S EMERGENCY WATER CONSERVATION POWERS (INTRODUCTION/FIRST READING) Mr. Nichols stated the proposed ordinance was prepared at Coun- cil's request to amend the City's authority for imposing water restrictions to note the authority to place a temporary freeze on water hook-ups. Mr. Nichols reviewed the current provisions of the ordinance which also state, in Morro Bay Municipal Code Sec- tion 13.04.330 D, "Take any other action which the city council deems necessary to protect the public health or safety, prevent contamination of city wells or other sources of city water, or ensure an adequate city water supply." Councilmember Odell asked if the City has the ability to freeze water hook-ups under the current ordinance? Mr. Napper stated yes. Councilmember Odell questioned when a person establishes a water hook-up? Builders usually connect to the system right after grading a lot; perhaps the City could withhold occupancy permits if Level 4 is necessary? Mr. Napper stated if the City has an actual water emergency, the Council has tremendous police powers and authority. Under normal circumstances, a person might have a vested right to water, but in emergencies the City has the authority to prohibit occupancy. Councilmember Odell asked if there is a statutory time limitation during which an emergency condition exists? Ms. Skousen stated it can only last as long as the actual emergency. Councilmember Odell asked if this could be used as a moratorium tool to limit growth? Ms. Skousen stated Council has to make findings an emergency exists. If Council finds there is an emer- gency which warrants a prohibition against water hook-ups, it will have an effect on growth. Councilmember Wuriu commented he suggested this item to clarify the City's authority to stop water hook-ups during an emergency. If a large number of multi -family units or condominiums are sud- denly hooked up to the water system, it could make a significant difference. He suggested something be spelled out so builders or owners planning to move in a newly constructed building know what the possibilities are long before they are a reality. He sug- gested Level 4 conservation measures be drawn up so the public will know what to expect. Mary Phillips, 2645 Ironwood Ave., stated the Council must take care of the people who are here first. She said there is a Health Code law which sets forth the priorities in an emergency: MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 29, 1990 PAGE 13 water for fire protection is first, second is the residential population. She said in order for the City to be eligible for Whale Rock water, it must close building down. Ann Freeman, 785 Cabrillo Place, requested a clarification regarding the City's requirement to "provide adequate water to customers except drinking and cooking...". Ms. Skousen stated in times of an emergency, the City's first responsibility is to have sufficient water to fight fire. While the City is legally required to provide drinking water to the citizens, a disaster could make it impossible. Mr. Nichols commented that Municipal Code section is to deal with emergencies of various types; not just water supplies. Floods or an earthquake could affect the City's ability to supply citizens with potable water. Dan Reddell encouraged Council to have a public hearing on this ordinance. He said he can think of a lot of ways to save water besides placing a freeze on water hook-ups. Howard Gaines, 441 Orcas, stated the City needs to look at this item from a financial standpoint. He commented on the desalting plan and asked who will pay the cost and how will it be dis- tributed? He said the user should pay; the burden should be dis- tributed equally. Ron Hillmann, Harbor Street, asked where the water comes from that is distributed in machines outside grocery stores? He also asked if there is any assurance he is getting clean water. Mr. Napper stated the City does not regulate the machines. Mr. Hillmann asked if he could use salt water to flush his toi- let? Mr. Nichols stated on an individual basis there will proba- bly be no impact; he doesn't believe people will be willing to haul sea water to their homes for a long period of time. He sug- gested Mr. Hillmann check his personal plumbing to make sure it can handle the sea water. Mary Phillips discussed desalted water and the health hazards of using it for human consumption. The City should contact the Health Department to find out if they can use desalted water. Dale Reddell, 680 Sequoia Court, stated every building retrofitted saves water. If retrofit doesn't work, the City should come out and say so as other cities are copying Morro Bay. He also suggested the City make Level 3 mandatory water conserva- tion more restrictive rather than adopt this action. Mayor Sheetz closed the hearing to the public. Mayor Sheetz stated the current Ordinance gives the Council the authority to take restrictive measures if necessary. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 29, 1990 PAGE 14 MOTION: Councilmember Wuriu moved Ordinance No. 374 be dropped and staff directed to develop Level 4 emergency water conservation measures for Council review. The motion was seconded by Councilmember Odell. Councilmember Wuriu stated it is important Council establishes the procedures before Council has to declare an emergency, and that the public know what the procedures will be. Councilmember Lemons stated there has been a de facto moratorium on building in Morro Bay for years. The only buildings under construction are those for which permits were taken out based on last year's allocation. He believes it is totally unjust to tell someone who has a building permit issued to him he cannot move in. If the City is not going to let someone hook-up to the water system, he must be told that before he is issued a permit. He said a building moratorium is preferable to not allowing occupancy. Mayor Sheetz asked if it is a breach of contract to tell someone they can have water, and then take it away? Ms. Skousen stated if the City assesses the water situation and it has changed to the extent further conservation measures are necessary, the City can prohibit water hook-ups after issuing them. Mayor Sheetz stated the economy is based on new building starts; the City needs to keep some building going. Mr. Nichols asked if Council would like the Water Advisory Board to review Level 4 restrictions? Mayor Sheetz stated yes. The motion was unanimously carried. (5-0) D-5 RESOLUTION NO. 65-90 APPROVING A SITE DEVELOPMENT REPORT FOR DEVELOPMENT OF A BIKEWAY CONNECTING MAIN STREET AND ATASCADERO ROAD ON P.G.&E. POWER PLANT PROPERTY Mr. Wolter reviewed the Site Development Report for a bikeway connecting Main Street and Atascadero Road. He stated the pre- liminary cost for the project is $400,000 for which grant funds might be available through CalTrans if the bikeway plan is approved by CalTrans. Mr. Wolter stated the City's Planning and Recreation and Parks Commission have approved the master plan for bikeway development, and it also meets with the approval of P.G.&E. (property owner) and the Department of Fish and Game. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. MOTION: Mayor Sheetz moved for the adoption of Resolution No. 56-90. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 29, 1990 PAGE 15 C-4 DEVELOPMENT OF CITY RESPONSE TO WHALE ROCK COMMISSION LETTER CONCERNING THE COASTAL STREAMS DIVERSION AND STORAGE PROJECT ( PHASE I) Mr. Nichols stated the City of Morro Bay and the Whale Rock Com- mission joint funded the engineering feasibility and environmen- tal work necessary to develop the Coastal Streams Development Project. As part of the contract, the consultant was directed to prepare a report on issues that have not been resolved in prepa- ration of a joint powers authority for funding, developing and operating the project. The City sent a letter to the Whale Rock Commission to begin discussions, but the Whale Rock Commission has not responded to date. They have, however, met with the San Luis Obispo City Council to review the report, and the Council has directed the Commission to write to agencies who might be interested in becoming involved in the project, what level of participation or involvement they may wish to have. Mr. Nichols stated the Water Advisory Board has reviewed the Whale Rock Com- mission letter, and provides minutes of their discussion on the matter for Council consideration. Mr. Nichols stated staff believes it may not be appropriate for the City to set forth their commitments at this time; it would be better to respond to their questions at the negotiating table so the City can also obtain their position on the issues. Mayor Sheetz stated the City was the initiators of this project, and she takes offense from the letter. The City has requested a meeting to discuss this item, and that letter should be responded to by the Whale Rock Commission. Councilmember Wuriu said the Water Advisory Board suggestions are quite masterful; they answer all the questions without really saying anything. Councilmember Lemons suggested taking the approach the City is obviously interested in the project; it originated in Morro Bay. With respect to the questions, it would be appropriate to enter into meaningful negotiations. MOTION: Councilmember Odell moved staff reply to the letter indicating the City is interested in the project, and prefers do discuss the issues in the letter by negoti- ating with the Whale Rock Commission. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) Councilmember Lemons requested the letter also refer to the City's previous letter and request for a meeting. Mayor Sheetz added the City would appreciate a timely response. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 29, 1990 PAGE 16 E. CLOSED SESSION None 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 9:00 p.m. Recorded by: ARDITH DAVIS City Clerk y1j 14, 191 o lJ 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 14, 1990 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE 1. PROCLAMATION DECLARING MAY 1990 AS "HEAD START MONTH" TO ECONOMIC OPPORTUNITY COMMISSION 2. RESOLUTION NO. 58-90 HONORING MORRO BAY BEAUTIFUL UPON ITS LOTH ANNIVERSARY 3. RESOLUTION NO. 56-90 COMMENDING ALAN DAVIS FOR HIS SERVICE AS HARBOR DIRECTOR PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearings 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 FROM THE REGULAR MEETING OF APRIL 23, 1990 A-2 RESOLUTION NO. 60-90 AWARDING CONTRACT TO JIM MATHIS OF MORRO BAY FOR ANNUAL WEED ABATEMENT PROGRAM (PW 89-14) A-3 RESOLUTION NO. 53-90 ESTABLISHING A LOCAL FILM PERMIT FEE A-4 PROCLAMATION DECLARING MAY 1990 AS "HEAD START MONTH" A-5 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (GIFFORD) A-6 RESOLUTION NO. 59-90 SUPPORTING RE -AUTHORIZATION OF THE COASTAL ZONE MANAGEMENT ACT (HR 4030) AND AMENDMENT (HR 543) TO THE ACT 01 A-7 RESOLUTION NO. 57-90 CALLING A GENERAL MUNICIPAL ELECTION TO BE HELD IN MORRO BAY ON TUESDAY, 06 NOVEMBER 1990 FOR THE PURPOSE OF ELECTING CERTAIN OFFICERS; REQUESTING THE BOARD OF SUPERVISORS OF SAN LUIS OBISPO COUNTY TO CONSOLIDATE SAID ELECTION WITH THE STATEWIDE GENERAL ELECTION; AND OTHER ELECTION MATTERS AS REQUIRED BY LAW A-8 RESOLUTION NO. 58-90 HONORING MORRO BAY BEAUTIFUL UPON ITS LOTH ANNIVERSARY A-9 RESOLUTION NO. 56-90 COMMENDING ALAN DAVIS FOR HIS SERVICE AS HARBOR DIRECTOR A-10 RELEASE OF RECOMMENDED CITY BUDGET FOR FY 1990-91 A-11 PROCLAMATION DECLARING MAY 15TH AS "POLICE MEMORIAL DAY", AND MAY 13- 19, 1990 AS "POLICE MEMORIAL WEEK" A-12 PROCLAMATION DECLARING MAY 1990 AS "MONTH OF PEACE" AND MAY 20TH AS "PEACE DAY: DISCOVERING OUR COMMON GROUND" A-13 ACCEPTANCE OF RESIGNATION FROM WATER ADVISORY BOARD (R. FISHER), AND AUTHORIZATION TO ADVERTISE THE VACANT POSITION A-14 NOTICE OF COMPLETION ON PROJECT NO. 89-12, EMBARCADERO OVERLAY AND RESTRIPING B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 372 AMENDING CHAPTER 8.08 OF THE MORRO BAY MUNICIPAL CODE, EMERGENCY SERVICES (SECOND READING/ADOPTION) C. NEW BUSINESS C-1 RESOLUTION NO. 51-90 NOTICE OF INTENT TO CANCEL CITY CONTRACT FOR EMERGENCY MEDICAL SERVICES WITH THE COUNTY OF SAN LUIS OBISPO C-2 RESOLUTION NO. 55-90 AUTHORIZING INSTALLATION OF STOP SIGNS IN THE AREA BOUNDED BY OLIVE, MAIN, AND PACIFIC STREETS, AND PINEY WAY C-3 RESOLUTION NO. 61-90 APPROVING AMENDMENTS TO LEASE AGREEMENT WITH DEANNA DAVIS TO ESTABLISH TIMETABLE FOR REPAIRS OF CODE VIOLATIONS ON LEASE SITE 68/68W (DBA PARKHURST GALLERY, 591 EMBARCADERO) D-1 ORDINANCE NO. 373 AMENDING TITLE 16, SUBDIVISIONS, TO ESTABLISH REGU- LATIONS FOR VESTING TENTATIVE MAPS (INTRODUCTION/FIRST READING) D-2 RESOLUTION NO. 52-90 ADOPTING INCREASED AMBULANCE FEES FOR SERVICES BY SAN LUIS AMBULANCE SERVICES, INC. D-3 PUBLIC HEARING ON APPEAL OF PLANNING COMMISSION INTERPRETATION OF AMBIGUITY CONCERNING USES IN THE AGRICULTURAL ZONE RELATIVE TO THE PACIFIC COAST SHOPPING PLAZA PROJECT (LYNDA MERRILL AND BEN LUNA, APPELLANTS; WILLIAMS BROTHERS MARKET, INC., APPLICANT) D-4 PROGRESS REPORT ON EVALUATION OF EMERGENCY WATER SUPPLY OPTIONS, AND CONSIDERATION OF RESOLUTION NO. 54-90 ESTABLISHING SEVERELY RESTRICTED WATER SUPPLY CONDITIONS E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY NEGOTIATIONS; DOMENGHINI FLAT LANDS E-2 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION; FIREMAN'S FUND VS CITY OF MORRO BAY, ET AL. E-3 GOVERNMENT CODE SECTION 54956.9(B)(1), POTENTIAL LITIGATION 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. 3 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 14, 1990 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 Ardith Davis William Farrel Forrest Henderson Nick Nichols Bernie zerr Horace Strong gave the invocation, Allegiance. PRESENTATIONS City Administrator City Attorney City Clerk Community Dev. Dir. Asst. City Admin. Public Works Dir. Fire Chief and led the Pledge of 1. PROCLAMATION DECLARING MAY 1990 AS "HEAD START MONTH" TO ECONOMIC OPPORTUNITY COMMISSION Mayor Sheetz read the Proclamation. It was accepted on behalf of the Economic Opportunity Commission Board of Directors by Elizabeth Steinberg. She thanked Morro Bay for being supportive of the Head Start program over the years, and noted 35 families from Morro Bay participate in the program. 2. RESOLUTION NO. 58-90 HONORING MORRO BAY BEAUTIFUL UPON ITS LOTH ANNIVERSARY Mayor Sheetz read the Resolution which was accepted by Warren Dorn, President of Morro Bay Beautiful. 3. RESOLUTION NO. 56-90 COMMENDING ALAN DAVIS FOR HIS SERVICE AS HARBOR DIRECTOR Mayor Sheetz called Alan Davis forward, and read the Resolution. She presented him with a City pin, his name plaque, and a copy of the Resolution. Mr. Davis expressed his pleasure in working for a City with such a competent and dedicated staff. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY i4, 1990 PAGE 2 PUBLIC COMMENT 1. Ben Luna, 341 Luzon and Chairman of the Voters' Initia- tive Committee, presented an initiative petition to the City signed by 1234 voters. The measure proposes to reduce the area of the Williams Brothers project from 30 acres to 13 acres. 2. Mary Phillips, 2645 Ironwood, commented on the Solid Waste Management Board meeting which had been cancelled again, and Morro Bay Garbage Service's request for an increase in rates. She also discussed an article regarding using recycled plastic milk jugs in rot -resistant boards for waterfront decks. 3. Ray Kaltenbach, 473 Sicily Street, commented on the Domenghini Flats item Council will be discussing in Closed Ses- sion. He stated the well on that property draws water from the same basin the City currently obtains water; it is not a new source of water. He also said the new parking on the Embarcadero in one of the north and south bound lanes is a disaster, and a hazard in the event of an emergency. 4. Ron Hillmann, 420 Harbor Street, criticized the City's PA system and public microphone. He is also unhappy with the billboard sign on Highway 1 before the Morro Bay Boulevard turn- off. DECLARATION OF FUTURE AGENDA ITEMS 1. Councilmember Lemons stated requested to support AB 145 (Costa) and coastal funding. Council did not at that time. He requested the item consideration as the bond contains Conservancy. A. CONSENT CALENDAR in October 1989 Council was which has to do with parks take a position on the Bill be re-agendized for Council funding for the Coastal A-1 CITY COUNCIL MINUTES FROM THE REGULAR MEETING OF APRIL 23, 1990 Mr. Napper recommended Council approve the minutes as submitted. A-2 RESOLUTION NO. 60-90 AWARDING CONTRACT TO JIM MATHIS FOR ANNUAL WEED ABATEMENT PROGRAM (PW 89-14) Mr. Napper recommended Council adopt Resolution No. 60-90. A-3 RESOLUTION NO, 53-90 ESTABLISHING A LOCAL FILM PERMIT FEE Mr. Napper recommended Council adopt Resolution No. 53-90. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 14, 1990 PAGE 3 A-4 PROCLAMATION DECLARING MAY 1990 AS "HEAD START MONTH" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-5 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (GIFFORD) Mr. Napper recommended Council deny the claim, and authorize the City Clerk to sign and mail the rejection notice. A-6 RESOLUTION NO. 59-90 SUPPORTING RE -AUTHORIZATION OF THE COASTAL ZONE MANAGEMENT ACT (HR 4030) AND AMENDMENT (HR 5431 TO THE ACT Mr. Napper recommended Council adopt Resolution No. 59-90. A-7 RESOLUTION NO. 57-90 CALLING A GENERAL MUNICIPAL ELECTION TO BE HELD IN MORRO BAY ON TUESDAY, 06 NOVEMBER 1990 FOR THE PURPOSE OF ELECTING CERTAIN OFFICERS: REOUESTING THE BOARD OF SUPERVISORS OF SAN LUIS OBISPO COUNTY TO CONSOLIDATE SAID ELECTION WITH THE STATEWIDE GENERAL ELECTION; AND OTHER ELECTION MATTERS AS REQUIRED BY LAW Mr. Napper recommended Council adopt Resolution No. 57-90. A-8 RESOLUTION NO. 58-90 HONORING MORRO BAY BEAUTIFUL UPON ITS 10TH ANNIVERSARY Mr. Napper recommended Council adopt Resolution No. 58-90. A-9 RESOLUTION NO. 56-90 COMMENDING ALAN DAVIS FOR HIS SERVICE AS HARBOR DIRECTOR Mr. Napper recommended Council adopt Resolution No. 56-90. A-10 RELEASE OF RECOMMENDED CITY BUDGET FOR FY 1990-91 Mr. Napper recommended Council receive the proposed FY 90-91 City Budget, set 29 May 1990 as the first public hearing on the Bud- get, and establish the budget Workshops Calendar as submitted. A-11 PROCLAMATION DECLARING MAY 15TH AS "POLICE MEMORIAL DAY". AND MAY 13-19, 1990 AS "POLICE MEMORIAL WEEK" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation and order City flags at half-staff on May 15th. A-12 PROCLAMATION DECLARING MAY 1990 AS "MONTH OF PEACE" AND MAY 20TH AS "PEACE DAY: DISCOVERING OUR COMMON GROUND" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 14, 1990 PAGE 4 A-13 ACCEPTANCE OF RESIGNATION FROM WATER ADVISORY BOARD (R. FISHER). AND AUTHORIZATION TO ADVERTISE THE VACANT POSITION Mr. Napper recommended Council accept the resignation, and autho- rize staff to advertise the vacancy. A-14 NOTICE OF COMPLETION ON PROJECT NO. 89-12, EMBARCADERO OVERLAY AND RESTRIPING Mr. Napper recommended Council accept Project No. 89-12 as com- plete, and authorize the City Clerk to execute and file the Notice of Completion. Councilmember Wuriu requested Item A-13 be pulled for separate discussion. Councilmember Odell stated he will abstain from vot- ing on the minutes as he was absent at the last meeting. A-13 ACCEPTANCE OF RESIGNATION FROM WATER ADVISORY BOARD (R. FISHER). AND AUTHORIZATION TO ADVERTISE THE VACANT POSITION Councilmember Wuriu stated Mr. Fisher has worked very hard on the Water Advisory Board and deserves credit from the citizens of Morro Bay. Councilmember Lemons asked if a Certificate of Appre- ciation will be prepared for Mr. Fisher? Mayor Sheetz responded it has already been done. MOTION: Councilmember Baker moved for approval of the Consent Calendar as presented. The motion was seconded by Councilmember Wuriu and carried with Councilmember Odell abstaining from voting on A-1. B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 372 AMENDING CHAPTER 8.08 OF THE MORRO BAY MUNICIPAL CODE, EMERGENCY SERVICES (SECOND READING/ADOPTION) Mr. Napper stated Ordinance No. 372 brings the City's Emergency Services Ordinance consistent with current practices. After adoption this evening, the Ordinance will go into effect June 13th. MOTION: Councilmember Baker moved Ordinance No. 372 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Napper read Ordinance No. 372 by title and number only. Councilmember Lemons questioned the references to the Disaster Council and when it meets. Mr. Napper explained staff reviews the Emergency Services Plan. The Council is the governing body and they would be contacted in the event of an emergency to go to MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 14, 1990 PAGE 5 the Emergency Operations Center. Councilmember Lemons said the Disaster Council should meet once per year, or the Ordinance should be changed. MOTION: Councilmember Baker moved for adoption of Ordinance No. 372 as second and final reading. The motion was sec- onded by Councilmember Wuriu and unanimously carried. (5-0) C. NEW BUSINESS C-1 RESOLUTION NO 51-90 NOTICE OF INTENT TO CANCEL CITY CON- TRACT FOR EMERGENCY MEDICAL SERVICES WITH THE COUNTY OF SAN LUIS OBISPO Mr. Napper stated all the cities in the County and the County have been party to an joint powers agreement to provide ambulance services since the 19701s. Over the years, the County and the Emergency Medical Services Agency have gradually precluded local input into the medical services program. After discussing this matter with the EMSA and the County, the City Managers and Fire Chiefs in the County have agreed to ask their City Councils to cancel the agreement with the County, and re -negotiate it. A Resolution has been prepared noticing the County the City wishes to cancel its agreement effective 09 May 1991. The cities believe an equitable agreement can be arrived at during this time period. Councilmember Wuriu asked if the City would be on its own to pro- vide ambulance services if the County does not agree to changes in the agreement? Mr. Napper stated the cities in the County can form a joint powers agreement, or individually contract for ambu- lance services. Councilmember Lemons asked if the County has the right to pro- hibit a hospital from doing business with an ambulance company? Mr. Napper stated the ambulance companies are licensed by the State; bid requirements could specify they are required to have privileges at all hospitals. Councilmember Lemons asked if this concept has been discussed with the City's insurance people? Mr. Napper stated the City would transfer liability to the ambulance company; the City has Municipal Code provisions for operation of an ambulance service. Ms. Skousen stated the City is in contract negotiations at this point; we are not increasing our liability. Councilmember Baker stated if there is lack of local input into the level of services provided, where is the level of service deficient? Chief Zerr stated the real issue is local control; there have been instances when Fire Chiefs have suggested the MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 14, 1990 PAGE 6 EMSA take a different direction in an area, and they have not responded to the Fire Chiefs' concerns. MOTION: Councilmember Baker moved for adoption of Resolution No. 51-90. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) C-2 RESOLUTION NO 55-90 AUTHORIZING INSTALLATION OF STOP SIGNS IN THE AREA BOUNDED BY OLIVE MAIN AND PACIFIC STREETS, AND PINEY WAY Mr. Nichols stated the Street Advisory Committee's review of this item is a result of two separate requests for traffic signage in the neighborhood of Olive, Main, and Pacific Streets and Piney Way; one request was for the intersection of Napa at Marina, and one for Olive at Shasta. Staff determined warrants do not indi- cate signage is necessary at the two intersections, and the Street Advisory Committee has previously reviewed the area and recommended no increased signage. However, in view of recent court cases indicating the City's liability is less at a con- trolled intersection than an uncontrolled one, the Street Advi- sory Committee reconsidered the situation based on neighborhood circulation needs. The SAC was concerned about placing the City in a liability situation by responding to individual requests for signs. Their current recommendation is to install 37 traffic signs in the area at a cost of approximately $3,700. Mr. Nichols suggested the signage be accomplished during the annual street re -striping program in August. Mayor Sheetz asked if the stop signs installed to make Pacific Street a through street have caused any problems? Mr. Nichols stated he has received no complaints. Mayor Sheetz stated she is concerned about installing 37 stop signs at one time, and sug- gested gradually installing them. Mr. Nichols stated it could be done, however, may be confusing to the public; if all the signs are installed at one time, the neighborhood only has to go through one adjustment period. Councilmember Wuriu questioned the logic of the traffic flow established by the proposed signs? Mr. Nichols stated the SAC took into consideration streets already signed as through traf- fic; their recommendations discourage high speed traffic as well as provide through traffic in the neighborhood. Councilmember Odell noted the City will be eliminating some yield signs in favor of stop signs. Mr. Nichols stated the Police Department has requested yield signs be phased out as they are unenforceable. Councilmember Lemons asked how many accidents had occurred in the last year at the intersections where new controls will be installed? Mr. Nichols stated one. Councilmember Lemons stated MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 14, 1990 PAGE 7 the additional stop -and -go situation created by the signage will increase air pollution. He also objected to installing stop signs where an accident has never occurred. Mr. Nichols stated none of the intersections has warrants to require a stop sign, however, the liability picture is changing and that is the basis for the recommendation. Councilmember Lemons agrees with the SAC the City should not install signage based on individual requests; they should select an area and recommend signage based on the Circulation Element. Mr. Nichols stated the SAC recommendation is consistent with the Circulation Element. Ms. Skousen commented as long as the City can establish the sig- nage was to control traffic patterns, the City's liability is not changed. Al Jorge, member of the SAC, reviewed the background on the SAC recommendations. MOTION: Councilmember Lemons moved for adoption of Resolution No. 55-90, and staff be authorized to install the signs during the August 1990 Street Restriping Program. The motion was seconded by Councilmember Wuriu and unani- mously carried. (5-0) C-3 RESOLUTION NO. 61-90 APPROVING AMENDMENTS TO LEASE AGREEMENT WITH DEANNA DAVIS TO ESTABLISH TIMETABLE FOR REPAIRS OF CODE VIOLATIONS ON LEASE SITE 68 68W (DBA PARKHURST GALLERY, 591 EMBARCADERO) Mr. Napper stated the Amendment to the Master Lease on this Embarcadero Lease Site is a result of non-compliance by the Lessee with regard to code violations. Numerous attempts to obtain compliance were unproductive, and Mr. Napper finally authorized a 30-day Notice of Default to perform the corrections or surrender the lease. This produced the desired result, and the Lessee has signed an Addendum to her lease which specifies an exact timetable to effectuate compliance, or she automatically surrenders the lease. Councilmember Lemons questioned the compliance dates in the Addendum which have already passed. Ms. Skousen stated the Addendum has been in negotiation for some time; the Lessee states she will meet the final compliance date (18 June 1990) in the Addendum. MOTION: Councilmember Wuriu moved for the adoption of Resolu- tion No. 61-90. The motion was seconded by Councilmem- ber Odell and unanimously carried by roll call vote. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 14, 1990 PAGE 8 D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 ORDINANCE NO. 373 AMENDING TITLE 16, SUBDIVISIONS. TO ESTAB- LISH REGULATIONS FOR VESTING TENTATIVE MAPS (INTRODUCTION/ FIRST READING) Mr. Farrel reviewed the legislation behind the Vesting Tentative Map which allows developers an assurance certain regulations per- taining to their project cannot be altered by a local agency changing the regulations at a time subsequent to the map's fil- ing. Mr. Farrel anticipates most maps in the future will be filed as vesting tentative maps, and the City must develop proce- dures for developers to follow. He outlined the provisions in the proposed ordinance which requires more information for a vesting map than for other tentative maps. Mr. Farrel stated the Planning Commission has reviewed the ordi- nance and recommends it to Council without change. The Environ- mental Coordinator has determined the adoption of vesting subdi- vision procedures is exempt from CEQA requirements. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed to the public. MOTION: Councilmember Lemons moved Ordinance No. 373 be read by title and number only. The motion was seconded by Councilmember wuriu and unanimously carried. (5-0) Mr. Napper read Ordinance No. 373 by title and number only. MOTION: Councilmember Baker moved for approval of the introduc- tion and first reading of Ordinance No. 373. The motion was seconded by Councilmember Lemons and unani- mously carried. (5-0) D-2 RESOLUTION NO. 52-90 ADOPTING INCREASED AMBULANCE FEES FOR SERVICES BY SAN LUIS AMBULANCE SERVICES. INC. Mr. Napper stated San Luis Ambulance recently submitted a request to the County of San Luis Obispo for a 21% increase in rates. After evaluation by the County Auditor -controller's Office, a recommended weighted -average increase of 13% was recommended to and adopted by the Board of Supervisors. Since the City con- tracts with the County to provide ambulance services, it is in order for Council to approve the increase in rates as well. He noted San Luis Ambulance's last increase was in December 1987. 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 14, 1990 PAGE 9 MOTION: Councilmember Lemons moved for adoption of Resolution No. 52-90. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) D-3 PUBLIC HEARING ON APPEAL OF PLANNING COMMISSION INTERPRE TION OF AMBIGUITY CONCERNING USES IN THE AGRICULTURAL ZONE RELATIVE TO THE PACIFIC COAST SHOPPING PLAZA PROJECT (LYNDA MERRILL AND BEN LUNA. APPELLANTS; WILLIAMS BROTHERS MARKET, INC.. APPLICANT) Mr. Farrel stated the Planning Commission recently made an inter- pretation of ambiguity in the Agricultural Zone District concern- ing the consistency of grading in the Williams Brothers Pacific Coast Plaza project. That interpretation has been appealed by Lynda Merrill and Ben Luna. Mr. Luna's appeal is based on the City Attorney not being present at the Planning Commission's meeting when this item was determined; he also cited policies from the LCP which require findings. Mr. Farrel stated the Com- mission's decision was made according to proper procedure, and staff does not believe Mr. Luna's LCP references are applicable to the proposed grading work. Staff recommends the appeal be denied and an interpretation similar to the Planning Commission's be approved by Council. Mr. Farrel reviewed the interpretation adopted by the Planning Commission and made suggestions to make the interpretation stronger. Mayor Sheetz opened the hearing to the public for comments. Ben Luna, 341 Luzon, quoted from the Zoning Ordinance regarding the permitted uses in the Agricultural Zone. He stated under staff's interpretation, the rounding and feathering of slopes are non-commercial uses; he asked how they came to that interpreta- tion? The sole purpose for the grading is for commercial devel- opment. In 1986 when Measure B was passed by the voters, it said 1130 acres"; not 1130+ acres to be defined at a later date". Lynda Merrill, 391 Sequoia and one of the appellants, stated she had no comments to make. Ray Kaltenbach, 473 Sicily Street, questioned how the developer will use the material under the top soil for fill; it contains too many rocks. Peter Diffley, 175 Kern Avenue, stated the basic issue is should the developer be allowed to expand into the area around the pro- ject which is zoned agricultural when he already has sufficient commercially zoned acreage to do that. He pointed out no one knows where the exact boundaries of the project are, and the pre- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 14, 1990 PAGE 10 cise location of the feathering cannot be ascertained until after the fact. He said the contention the use is only temporary and provides mitigation measures does not speak to, why not do the feathering in the commercially re -zoned area? He believes there is a tendency on the part of staff and in some cases the Planning Commission and City Council to strain to help the developer get what he wants. He said the City and citizens should get the break. Roxanne Gerber, 416 Napa Avenue, spoke in favor of the Williams Brothers project. She is familiar with the frustrations of want- ing to develop private property, and stated Williams Brothers has complied with rule after rule established by the City. It is time to let them build the project which Morro Bay needs, and do it soon. Susan Mullin, 985 Pacific, stated she has been reading the Land Use Plan recently and has difficulty determining on what grounds the project was approved and how it complies with the Land Use Plan. The rounding of slopes is not allowed in the City's Munic- ipal Code. The developer should be asked to fit the project within the policies and guidelines set by the City. She requested a written statement of Council and Commission reasons for voting for the project in view of the Land Use Plan. Bruce Elster, project engineer, stated the item before Council is an appeal of the Planning Commission's interpretation. He ques- tioned the conditions on the performance standards being attached to the Planning Commission's recommendation, and stated Council should not be reviewing materials the Planning Commission has not reviewed. Mr. Elster said the grading and sloping the subject of the interpretation is temporary. He encouraged Council not change the interpretation as approved by the Planning Commission, and if new information is to be considered, the matter return to the Planning Commission for a recommendation. Most of the recom- mendations made by staff have been covered in the permit condi- tions. He objected to having the grading started and finished in the period from June to October. Charles Long, 3420 Main Street, said if the discussion is about non -prime agricultural land, why not develop it? He said times have changed; the City needs to look forward and keep shopping dollars in Morro Bay. 50% of the City's population is outsiders coming in. He said Williams Brothers will build a beautiful shopping center. Mary Phillips, 2645 Ironwood, asked if the property still has 800 acre feet of water available as it did when the Domenghini family owned it? MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 14, 1990 PAGE 11 Ben Luna, 341 Luzon, stated the Coastal Commission approved 30 acres development only; they have not approved any kind of feath- ering or grading of the agricultural land. Mayor Sheetz closed the hearing to the public. Mayor Sheetz said since the feathering is outside the original permit area, should the developer go through the process of obtaining an amendment to the Ordinance? Mr. Farrel stated it is one option; another is to adjust the project so it is wholly within the boundary lines, or approve the interpretation of ambi- guity. He noted the Coastal Commission has approved the City's procedure of interpreting ambiguities, and this is a relatively minor interpretation on the scale of things. Mayor Sheetz asked when the project will have established metes and bounds. Ms. Skousen stated it will be necessary eventually; if the applicant requests an amendment to the Ordinance, or when the precise plan is approved. Mayor Sheetz asked how Council can make decisions on the project if the boundary lines are unknown? Ms. Skousen stated Council's concept approval of the project allowed feathering outside the description. Mayor Sheetz was concerned the City is in a vulner- able position. Ms. Skousen stated grading is considered develop- ment where a permit is required. The Planning Commission found the grading plan is consistent with the intents and purposes of uses in the agricultural zone as long as mitigation measures are taken. Therefore, the policies in the Land Use Plan are not applicable. She believes the Planning Commission's decision can be defended in court and noted the burden is on Williams Brothers to defend the City. Councilmember Wuriu stated he has favored the project from the beginning, however, is concerned about the ambiguity problem and the feathering. He believes the extra conditions suggested by staff are important to the successful resolution of the whole feathering matter. Mr. Farrel stated the recommendations contained in the staff report to Council had also been made to the Planning Commission. He is concerned the soils in the area may be thin with underlying bedrock; the City needs to be assured the area will be returned to grass. Councilmember Wuriu said in order to go along with the interpre- tation, the City needs to be on safe grounds and he believes it is right to ask for them. Councilmember Lemons asked if the Planning Commission had reviewed Mr. Farrel's recommendations before they adopted the interpretation submitted by Commissioner Allen? Mr. Farrel MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 14, 1990 PAGE 12 stated yes. Councilmember Lemons asked if there is an opportu- nity when the grading plan is submitted for staff to include con- ditions such as those set forth in Mr. Farrel's recommendation? Ms. Skousen said the grading plan in the CUP did cover all grad- ing, including areas outside of the project. Councilmember Lemons questioned the need to create extra condi- tions when they are already included in the concept plan approval. Ms. Skousen said normally when there is an interpreta- tion of ambiguity conditions are not attached. The concept plan is the place for conditions. Councilmember Wuriu asked how the City can settle the question of ambiguity without determining how it is going to be done? Ms. Skousen said if Council finds there should be conditions to the grading, they should find it is a use that needs a use permit. Otherwise, you are conditioning a non-use. Mr. Farrel stated his proposed conditions are standard and would be part of a grading permit ordinance if the City had one. Councilmember Lemons agrees with the Planning Commission's find- ings but suggested one additional finding that grooming, rounding and feathering are temporary activities and do not constitute a use. Councilmember Wuriu stated he would also like to add the recom- mendations set forth in the staff report be followed, in concept. Councilmember Lemons said he would agree if the phrase requiring grading be commenced and concluded during "June through October" be changed to "March through November". MOTION: Councilmember Lemons moved Council uphold the Planning Commission's findings with the additional finding to read, "Such grooming, sloping, rounding, and feathering are activities permitted as mitigation measures by CUP 03-88/CDP 05-88 and, although occurring in an agricul- tural zone, do not constitute a use for which a sepa- rate permit is necessary because the conditions are in- cluded in CUP 03-88/CDP 05-88. Further, the recommen- dations for conditions suggested by staff on pages 2 and 3 of the Community Development Report dated 5-14-90 be included in concept, with modification to the re- quirement for grading work to be commenced and con- cluded during "June through October" to be changed to allow grading from "March through November". The mo- tion was seconded by Councilmember Baker and carried with Councilmember Odell and Mayor Sheetz voting no. (3-2) Council recessed from 8:39 p.m. to 8:49 p.m. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 14, 1990 PAGE 13 D-4 PROGRESS REPORT ON EVALUATION OF EMERGENCY WATER SUPPLY OPTIONS, AND CONSIDERATION OF RESOLUTION NO. 54-90 ESTAB- LISHING SEVERELY RESTRICTED WATER SUPPLY CONDITIONS Mr. Nichols stated he reported to Council on March 26th the qual- ity and quantity of water in the City wells was deteriorating because of a lack of rain; conditions are continuing to deterio- rate. There is increased concern about Morro Basin which is now 38 feet below ground level. Staff is recommending Council adopt Resolution No. 54-90 declaring the City's water supply to be severely restricted instituting the third level of water conser- vation requirements. He reviewed the additional conditions in this level, and stated they will only reduce the communities use slightly. Current water use is 4% over last years trend. Mr. Nichols also recommended Council approve renting or purchas- ing a reverse osmosis system for two existing non -potable City wells on Atascadero Road. This can be blended with the water from Morro Creek wells and will improve the water quality and augment the City's water supply. The cost is $30,000 per month to rent the system; power cost to operate it will be $6,500 per month. This amounts to $1,460 per acre foot of water. The City will have to reserve the system tomorrow in order to have it here by July 1st. Mr. Nichols stated he has met with local agricultural farmers to discuss paying them to not irrigate in order to reduce the demand on the Morro and Chorro Basins. The response is mixed, and the conversations are continuing. Mayor Sheetz stated when Council imposed restrictions on washing - down boats during an earlier conservation implementation, the fishermen complained because of the necessity to clean the salt water off the boats. She asked if the treatment plant had water that could be used for this purpose. Mr. Nichols stated no, he does not recommend that water for anything without additional treatment. Councilmember Baker commended Mr. Nichols on the report; it seems the only way to proceed is with the desal unit. He questioned whether the City should purchase the system so it can be used in the future if necessary? Mr. Nichols stated there are risks involved; the purchase price is $350,000 which does not include operation and maintenance. Installing a permanent system will involve obtaining water rights which is a lengthy process. The permits required for a temporary use are not as stringent as they are for a permanent use. Additionally, the system could not be used during the time the City is applying for water rights and permits. His recommendation is based on getting the City through the summer. Mayor Sheetz opened the hearing to the public for comments. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 14, 1990 PAGE 14 Charlie Palmer, 485 Estero Ave., distributed charts to Council. They included the City's annual rainfall, water and population growth comparisons, and well fields referred to sea level. He stated the City rainfall median is 15 inches; since 1983 we have had four years below the median. Median rainfall does not recharge the acquifers. He said the reason the City has been able to pump wells below sea level is because of the silting of Chorro Creek at Twin Bridges. He suggested the City go to the fourth level of conservation and take other steps to reduce water use. He said Morro Bay High School and others are using the same amount of water as they did in 1984; they have no incentives to save. He said Morro Creek Basin is down to +2. It is time the City take serious action. Ray Kaltenbach, 473 Sicily Street, believes the City should implement the suggestions of Mr. Nichols. The situation is not unique to Morro Bay; all cities are in trouble. Most cities brought it on themselves due to unrestricted development. Nelson Sullivan, 450 Fairview, said the City is reaping the har- vest of unrestricted allocation of water. The last two City Councils only saved 44% of the water allocated. He suggested desalting sea water rather than City wells. Dick Fisher, 155 Tahiti, stated he is an individual homeowner and he is tired of being told to cut back on water so there is enough for the tourist. He said there is a whole ocean of water; the City says it cannot afford to desalt, but every other utility is increasing their rates. He is willing to pay more for water. He is tired of being told he cannot build; the construction industry is the only business the City shuts down while allowing car washes, motels, etc. to continue doing business. He is tired of the construction industry being discriminated against. The City is required to furnish water to meet the demand. The City has studied the issue of additional water to death. He suggested a class action suit against the City for neglect in water manage- ment and taking of lands. Mike Spangler, H2Organization, discussed desalting water and the hydrologic cycle, suggesting conservation may be having an effect on the drought. Mary Phillips, 2645 Ironwood, discussed the health aspects of desalination and said she would bring information to City Hall for Council review. There is no way to get enough salt out of the water, and the toxic salt that remains can destroy the kid- ney. She commented on the springs on Atascadero Road and the need to block off drains and pump the water up to Morro Creek. She said desal takes oxygen away from the fish in the ocean. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 14, 1990 PAGE 15 Bruce Risley, 540 Piney Way, stated the emergency before the Council is what we have anticipated and worked to avoid. He sug- gested Council listen closely to Mr. Palmer who knows more about water basins than anyone in the City. He said the two wells the City is intending to desalt are ones that have been pumping salt water for years. It is possible a better solution would be to desalt ocean water. Morro Basin could be in danger of being ruined permanently by overpumping. Dan Reddell said the City should look into buying the desalting equipment permanently. He also requested Council exclude commer- cial fishermen from the restriction of Level 3 water conservation. Mayor Sheetz stated she has been on the Council for six years, and water has never been on the "back burner". She is in favor of the recommendations made by Mr. Nichols. Councilmember Wuriu asked Mr. Nichols to respond to the comments made by Mr. Palmer and Mr. Risley. Mr. Nichols stated he has not received any geological or hydrological information that causes him to be concerned about the drawdown in the basins. Councilmember Wuriu questioned the effects of the new conserva- tion regulations on the commercial fishing industry. Mr. Napper said Level 3 is in ordinance form and applies across the board. If Council wishes to make exceptions, they need to amend the ordinance. Councilmember Lemons asked what is the yearly average withdrawal from the Morro Basin? Mr. Nichols stated it changes every year, but is approximately 500 acre feet per year. Councilmember Lemons asked what the difference is between setting up the reverse osmosis system to use it for wells as opposed to sea water? Mr. Nichols stated the City does not need a facility to desalt the wells; a system must be constructed to pump the sea water into the unit. Consideration has to be given to the out - fall as a result of desalting. Councilmember Odell asked if reverse osmosis is the only way to treat the water or can a filtration system be used? Mr. Nichols stated reverse osmosis is the only way to treat the TDS. MOTION: Mayor Sheetz moved adopt Resolution No. 54-90 enacting Level 3 Mandatory Water Conservation Level, allocate $10,000 from New Water Production Reserve Account, authorize staff to proceed to install a temporary desalination unit on brackish wells owned by the City, and staff be instructed to investigate lease/purchase MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 14, 1990 PAGE 16 of the reverse osmosis equipment. The motion was sec- onded by Councilmember Wuriu and unanimously carried. (5-0) MOTION: Councilmember Lemons moved the potential of hydrologic draw -down be closely monitored so no permanent damage is incurred in Morro Basin. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) Councilmember Lemons discussed the possibility of obtaining a grant through the Coastal Conservancy for Morro Bay to be used as a pilot project to retrofit some of the establishments on the Embarcadero with a dual water system. The use of salt water for toilet flushing and other uses should be pursued. Mr. Napper stated he has received conflicting information regard- ing the availability of such a grant. He noted staff time to investigate this subject will take longer than following -up on the emergency procedures. A dual water system should be look at as a long term possibility. MOTION: Councilmember Lemons moved staff be instructed to study the possibility of obtaining a State grant to be a pilot program for a dual water system on the Embar- cadero. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) E. CLOSED SESSION • _t �_ •• •� �_;•• ;_ • • DOMENGHINI FLAT LANDS - - E-2 GOVERNMENT CODE SECTION 54956.9(A). PENDING LITIGATION: FIREMAN'S FUND VS CITY OF MORRO BAY, ET AL. E-3 GOVERNMENT CODE SECTION 54956.9(B)(1). POTENTIAL LITIGATION MOTION: Councilmember Lemons moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmem- ber Odell and unanimously carried. (5-0) Mayor Sheetz announced the items Council will discuss in Closed Session. The meeting adjourned to Closed Session at 9:57 p.m. and returned to regular session at 10:19 p.m. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MAY 14, 1990 PAGE 17 �:] 161!)-a u- MOTION: Councilmember Odell moved the meeting be adjourned. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) The meeting adjourned at 10:19 p.m. Recorded by: ae-z�,, x a, ARDITH DAVIS City Clerk 6 i ,/;�) a,3, i IM • 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 — APRIL 23, 1990 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE 1. MORRO BAY WOMEN'S CLUB IN HONOR OF "GENERAL FEDERATION OF WOMEN'S CLUBS CENTENNIAL YEAR" (APRIL 24, 1990 TO APRIL 24, 1991), AND "GENERAL FEDERATION OF WOMEN'S CLUBS CENTENNIAL DAY CELEBRATION" (APRIL 24, 1990) 2. MOST VALUABLE EMPLOYEE - FIRST QUARTER 1990 (SANDI FORD, CODE ENFORCE- MENT OFFICER) PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearings 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 FROM THE SPECIAL MEETING OF APRIL 3, 1990, AND THE REGULAR MEETING OF APRIL 9, 1990 A-2 EXPENDITURE REPORT - MARCH 1990 A-3 STATEMENT OF INVESTMENTS - MARCH 1990 A-4 PROCLAMATION DECLARING MAY 4, 1990 AS "SPECIAL OLYMPICS DAY" A-5 SET HEARING DATE (MAY 14TH) FOR APPEAL OF PLANNING COMMISSION'S INTERPRETATION OF AMBIGUITY CONCERNING USES IN THE AGRICULTURAL ZONE RELATIVE TO THE PACIFIC COAST SHOPPING PLAZA PROJECT (LYNDA MERRILL AND BEN LUNA, APPELLANTS; WILLIAMS BROTHERS MARKET, INC., APPLICANT) A-6 RESOLUTION NO. 44-90 ACCEPTING OFFER OF DEDICATION OF RIGHT-OF-WAY AT THE NORTHWESTERLY CORNER OF THE INTERSECTION OF ZANZIBAR AND PANORAMA (GIST, PROPERTY OWNER) A-7 PROCLAMATION DECLARING THE WEEK OF MAY 7-11, 1990 AS "WATER AWARENESS WEEK" A-8 PROCLAMATION DECLARING THE MONTH OF MAY 1990 AS "OLDER AMERICAN'S MONTH" A-9 PROCLAMATION DECLARING APRIL 29 - MAY 6, 1990 AS "SOIL AND WATER STEWARDSHIP WEEK" B. UNFINISHED BUSINESS NONE C. NEW BUSINESS C-1 RESOLUTION NO. 45-90 APPROVING SUBLEASE ON LEASE SITE 80-81W (VAN BEURDEN INVESTMENTS, INC., LESSEE) TO CORDERO/WINSTON AND CO. FOR USE OF EXISTING DOCK FOR FISH OFF-LOADING AND PROCESSING, AND OFFICE SPACE C-2 RESOLUTION NO. 46-90 APPROVING SUBLEASE ON LEASE SITE 77 (MORRO BAY MARINA, INC., LESSEE) TO MICHAEL MOSS AND DOUG DOUGHTY (DBA CAPT. M & D DOGS) FOR NON -PERMANENT HOT DOG STAND, AND AMENDMENT TO APPROVED LEASE USES C-3 STREET ADVISORY COMMITTEE RECOMMENDATION FOR RESTRICTION OF ON -STREET PARKING ON QUINTANA ROAD WEST OF MORRO BAY BLVD. C-4 SUPPLEMENTAL APPROPRIATION TO RECREATIONAL SPORTS, FACILITIES, AND CULTURAL ARTS AND SERVICES BUDGET DUE TO INCREASED PARTICIPATION AND REVENUE GENERATION C-5 CONSIDERATION OF ALTERNATE DELEGATE SELECTION TO SAN LUIS OBISPO AREA COORDINATING COUNCIL IN LIEU OF COUNCILMEMBER ODELL C-6 RESOLUTION NO. 49-90 RATIFYING MEMORANDUM OF UNDERSTANDING FOR REGIONAL SOLID WASTE PLANNING PROGRAM (AB 939) TO DEVELOP A SOURCE REDUCTION AND RECYCLING ELEMENT D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 ORDINANCE NO. 372 AMENDING CHAPTER 8.08 OF THE MORRO BAY MUNICIPAL CODE, EMERGENCY SERVICES (INTRODUCTION/FIRST READING) D-2 RESOLUTION LICENSING THE PARTNERS AFTER -SCHOOL LATCHKEY CARE PROGRAM, AND ADJUSTMENT OF COST RECOVERY RATE FROM 50% TO 100% D-3 EVALUATION OF WATER CONSERVATION BENEFITS OF REPLACING ALL EXISTING TOILETS WITH ULTRA -LOW FLUSH MODELS E. CLOSED SESSION 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. 0 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 23, 1990 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 Tom Wuriu Councilmember ABSENT: Jeff Odell STAFF: Gary Napper Judy Skousen Alan Davis Ardith Davis William Farrel Forrest Henderson Nick Nichols Mike Upton Steve Wolter Bernie Zerr Councilmember City Administrator City Attorney Harbor Director City Clerk Community Dev. Dir. Asst. City Admin. Public Works Dir. Admin. Asst. Rec. & Parks Dir. Fire Chief Horace Strong gave the invocation, and led the Pledge of Allegiance. PRESENTATIONS 1. MORRO BAY WOMEN'S CLUB IN HONOR OF "GENERAL FEDERATION OF WOMEN'S CLUBS CENTENNIAL YEAR" (APRIL 24. 1990 TO APRIL 24, 1991). AND "GENERAL FEDERATION OF WOMEN'S CLUBS CENTENNIAL DAY CELEBRATION" (APRIL 24. 1990) Mayor Sheetz read the Proclamation and presented it to Jean Wolk, Chair of the Women's Club Centennial Celebration. 2. MOST VALUABLE EMPLOYEE - FIRST QUARTER 1990 (SANDI FORD. CODE ENFORCEMENT OFFICER) Mayor Sheetz reviewed Ms. Ford's accomplishments and presented her with gifts commemorating her selection by the Employee Rela- tions Committee as Most Valuable Employee for the first quarter. Ms. Ford thanked everyone she works with as well as the Morro Bay citizens. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 23, 1990 PAGE 2 PUBLIC COMMENT 1. Paul Donnelly, Chairman of the Street Advisory Commit- tee, stated he is present to answer questions concerning Item C-3 on Council's agenda. 2. Charles Palmer, 485 Estero, stated the City's water quality needs to be improved. He said the static level in City wells are down to sea level which means there is sea water intru- sion. It will not be long before the City is using more water from the basins than goes into them. At that time the City should implement the 4th level of water conservation; he said he would let the Council know when it is time. 3. Ray Kaltenbach, 473 Sicily, quoted from Councilmember Wuriu's letter to the editor regarding City water projects. He stated he learned today Water Engineer Dave Norton has been fired, and he requested a written statement of the reasons for the termination. He asked why a man of this caliber was fired when the City needs him so badly? DECLARATION OF FUTURE AGENDA ITEMS None. A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES FROM THE SPECIAL MEETING OF APRIL 3. 1990, AND THE REGULAR MEETING OF APRIL 9. 1990 Mr. Napper recommended Council approve the minutes as submitted. A-2 EXPENDITURE REPORT - MARCH 1990 Mr. Napper recommended Council approve the Report as submitted. A-3 STATEMENT OF INVESTMENTS - MARCH 1990 Mr. Napper recommended Council accept the Report for file. A-4 PROCLAMATION DECLARING MAY 4. 1990 AS "SPECIAL OLYMPICS DAY" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 23, 1990 PAGE 3 A-5 SET HEARING DATE (MAY 14TH) FOR APPEAL OF PLANNING COMMIS- SION'S INTERPRETATION OF AMBIGUITY CONCERNING USES IN THE AGRICULTURAL ZONE RELATIVE TO THE PACIFIC COAST SHOPPING PLAZA PROJECT (LYNDA MERRILL AND BEN LUNA, APPELLANTS• WILLIAMS TAMS BROTHERS MARKET INC APPLICANT) Council set 14 May 1990 as the hearing date, and instructed staff to prepare the appropriate reports and hearing notices. A-6 RESOLUTION NO 44-90 ACCEPTING OFFER OF DEDICATION OF RIGHT- OF-WAY AT THE NORTHWESTERLY CORNER OF THE INTERSECTION OF ZANZIBAR AND PANORAMA (GIST PROPERTY OWNER) Mr. Napper recommended Council adopt Resolution No. 44-90. A-7 PROCLAMATION DECLARING THE WEEK OF MAY 7-11, 1990 AS "WATER AWARENESS WEEK" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-8 PROCLAMATION DECLARING THE MONTH OF MAY 1990 AS "OLDER AMERICAN'S MONTH" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-9 PROCLAMATION DECLARING APRIL 29-MAY 6 "SOIL AND WATER STEWARDSHIP WEEK" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. Councilmember Lemons stated the Minutes of the Special Meeting of April 3, 1990 need to be corrected to reflect Councilmember Baker was absent instead of Councilmember Odell. MOTION: Councilmember Lemons moved for approval of the Consent Calendar including the amendment to the Minutes of April 3, 1990. The motion was seconded by Councilmem- ber Wuriu and unanimously carried. (4-0) B. UNFINISHED BUSINESS NONE MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 23, 1990 PAGE 4 C. NEW BUSINESS C-1 RESOLUTION NO 45-90 APPROVING SUBLEASE ON LEASE SITE 80-81W (VAN BEURDEN INVESTMENTS. INC., LESSEE) TO CORDERO/WINSTON AND CO. FOR USE OF EXISTING DOCK FOR FISH OFF-LOADING AND PROCESSING, AND OFFICE SPACE Mr. Napper stated Mr. Davis' appearance this evening is his last as the City's Harbor Director; he is resigning effective May 1, 1990. Mr. Davis stated a request has been made by Van Beurden Invest- ments, Inc. to sublease a portion of Lease Site 80-SIW to Cordero/Winston for use of the offloading facilities for commer- cial fishing vessels, use of the seafood processing areas, and office space. He noted Cordero/Winston currently sublease from Estero Bay Seafoods on Lease Site 129W-133W. A provision of that lease requires the tenant not directly or indirectly engage in any similar or competing business within a radius of five miles from the location of the lease without written permission from the City. Mr. Davis recommended the Resolution authorizing the sublease and use be amended to include the City's authorization for this tenant to operate from two sites on the Embarcadero. Councilmember Lemons questioned the reason for the competition clause in the lease? Mr. Davis stated the purpose is to prevent a tenant from reducing revenue to the City by diverting business from his lease site to another similar business. He noted in this case both leases operate under similar clauses. Councilmember Lemons asked if it is possible Cordero/Winston will be relocating their entire business to the Van Beurden site? Mr. Davis said he did not believe so; this sublease provides Cordero/Winston with a safety net in the event the Master Lessee of Lease Site 123W-133W decides to operate the site themselves and terminate the Cordero/Winston sublease. MOTION: Councilmember Baker moved for the adoption of Resolu- tion No. 45-90 as amended to include the City's approval of the sublessee operating two similar busi- nesses on the Embarcadero on City lease sites. The motion was seconded by Councilmember Wuriu and unani- mously carried. (4-0) C-2 RESOLUTION NO. 46-90 APPROVING SUBLEASE ON LEASE SITE 77 fMORRO BAY MARINA, INC., LESSEE) TO MICHAEL MOSS AND DOUG DOUGHTY (DBA CAPT. M & D DOGS) FOR NON -PERMANENT HOT DOG STAND, AND AMENDMENT TO APPROVED LEASE USES Mr. Davis stated this item is a request to sublease a portion of Lease Site 77 (Morro Bay Marina) for a non -permanent hot dog stand. The Planning Commission approved a Conditional Use Permit MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 23, 1990 PAGE 5 for operation of the use between the hours of 10 AM to 7 PM daily. Mr. Davis recommended Council approve the sublease of this site to add an additional use of "non -permanent hot dog stand" to the list of permitted uses on the Lease Site. Councilmember Wuriu asked what is the objection to this vendor and mobile units going up and down the Embarcadero? Mayor Sheetz said mobile units create a liability problem for the City. Mr. Napper stated lease holders object to the roving vendors' compe- tition because they have little overhead costs; and, the side- walks on the Embarcadero are not wide enough to allow roving businesses and pedestrians. MOTION: Councilmember Wuriu moved for the adoption of Resolu- tion No. 46-90. The motion was seconded by Councilmem- ber Lemons and unanimously carried. (5-0) Mayor Sheetz thanked Alan Davis for his employment with the City. He came at a time when the City needed him, and did an excellent job managing the City lease sites during his tenure. C-3 STREET ADVISORY COMMITTEE RECOMMENDATION FOR RESTRICTION OF ON -STREET PARKING ON QUINTANA ROAD WEST OF MORRO BAY BLVD, Mr. Nichols stated Council requested the Street Advisory Commit- tee (SAC) consider parking restrictions on Quintana Road west of Morro Bay Blvd. in the area of the Unocal Station and Burger King. While SAC recognizes the potential for sight distance problems at this location, they are not in favor of eliminating on -street parking. Their reasoning is this type of sight dis- tance problem exists in all areas where on -street parking and private driveways exist. Additionally, there are no accidents of record or history of speed violations in the area. SAC recom- mends Council take no action on this item. Mayor Sheetz asked Mr. Donnelly, Chairman of the SAC, if they reviewed the sight distance problem from the mobile home park entrance/exit on Quintana? Mr. Donnelly stated he drove the area a number of times and could see no sight distance problem other than possibly the Burger King driveway. The SAC was not aware there was a specific area for study, so they generally studied the area indicated by Mr. Nichols. Councilmember Wuriu stated the City should continue to monitor the area due to the number of delivery trucks often parked on - street in this vicinity. Mr. Donnelly responded this is a com- mercial area; on -street parking is the only parking available and it should not suffer. Council took no action on this item. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 23, 1990 PAGE 6 C-4 SUPPLEMENTAL APPROPRIATION TO RECREATIONAL SPORTS, FACILI- TIES. AND CULTURAL ARTS AND SERVICES BUDGET DUE TO INCREASED PARTICIPATION AND REVENUE GENERATION Mr. Wolter reviewed his request to amend the FY 1989-90 Budget to reflect actual revenues and costs. He explained his budget is based on anticipated participation in programs. This year,,par- ticipation has increased significantly over budget estimates, and an adjustment is necessary in approved expenditures and revenues for recreational sports, arts and facility rentals. He recom- mended Council amend the budget to increase Recreational Services revenues by $44,800, and Facility Rental revenues by $8,500; and, authorize additional expenditures of $34,742 in Recreational Ser- vices and $7,218 in Facilities. He noted this is a municipal accounting procedure to ensure the Budget remains balanced. Councilmember Baker asked if the adjustment actually represented an increase in funds from the City? Mr. Wolter stated no; the adjustment in revenues more than covers the increased expenditures. MOTION: Councilmember Lemons moved Council amend the FY 89-90 City Budget to reflect $196,800 in Recreational ser- vices revenues ($44,800 revenue increase) and $28,500 in Facility Rental revenues ($8,500 revenue increase); and, authorize additional expenditures of $34,742 in Recreational Services and $7,218 in Facilities. The motion was seconded by Councilmember Baker and unani- mously carried. (4-0) C-5 CONSIDERATION OF ALTERNATE DELEGATE SELECTION TO SAN LUIS OBISPO AREA COORDINATING COUNCIL IN LIEU OF COUNCILMEMBER ODELL Mr. Napper stated Councilmember Odell recently advised Council he wished to be replaced as the Alternate Delegate to the San Luis Obispo Area Coordinating Council; Mayor Sheetz is the Delegate to the Area Council. Mr. Napper stated appointees must be elected officials; the Area Council generally meets eight times per year. Councilmember Wuriu stated he would be willing to serve in this capacity. Councilmember Lemons nominated Councilmember Wuriu as Alternate Delegate to the San Luis Obispo Area Coordinating Council. The nomination passed unanimously (4-0). 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 23, 1990 PAGE 7 C-6 RESOLUTION NO. 49-90 RATIFYING MEMORANDUM OF UNDERSTANDING FOR REGIONAL SOLID WASTE PLANNING PROGRAM (AB 939) TO DEVELOP A SOURCE REDUCTION AND RECYCLING ELEMENT Mr. Upton reported the State has mandated all cities and counties to adopt a Source Reduction and Recycling Element by 1991. He reviewed the enormous amount of work involved in preparation of the Element and stated no funds have been allocated by the State for completion of the plan which is estimated at $200,000 to $400,000 for the County and all cities in the County. The law also requires a task force be appointed to coordinate development of the Plan. The County Solid Waste Management Com- mission has been renamed the Solid Waste Task Force, and a Solid Waste Technical Committee exists to provide recommendations. The recommendations are: 1) the County and the cities pursue a regional approach to meet the requirements of AB 939; 2) hire a consultant and project coordinator to work with the Task Force and Technical Committee to prepare the plan; and 3) all public landfills in the County levy a tipping fee surcharge equivalent to $1.00/ton to fund compliance with AB 939. Mr. Upton recommended Council adopt Resolution No. 49-90 ratify- ing the Memorandum of Understanding to prepare a joint Source Reduction and Recycling Element to comply with AB 939; authorize the City Administrator and City Attorney to negotiate minor changes with other entities as appropriate; and, authorize the Mayor to sign the final draft MOU. MOTION: Councilmember Lemons moved for adoption of Resolution No. 49-90. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 ORDINANCE NO, 372 AMENDING CHAPTER 8.08 OF THE MORRO BAY MUNICIPAL CODE, EMERGENCY SERVICES (INTRODUCTION/FIRST READING) Chief Zerr stated the Ordinance concerning emergency services has not been updated for a number of years. The proposed amendment is basically a housekeeping measure. In the current Code, the Public Works Director is assigned the responsibilities of Civil Defense Coordinator; these duties have actually been transferred to the Fire Chief. 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. 372 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 23, 1990 PAGE 8 Mr. Napper read Ordinance No. 372 by title and number only. MOTION: Councilmember Lemons moved for approval of the intro- duction and first reading of Ordinance No. 372. The motion was seconded by Councilmember Baker and unani- mously carried. (4-0) D-2 CONSIDERATION OF PARTNERS AFTER -SCHOOL LATCHKEY CARE PRO- GRAM, AND ADJUSTMENT OF COST RECOVERY RATE FROM 50% TO 100% Mr. Wolter reviewed the history of the PARTNERS program which was originally designed to provide recreational alternatives for children during after -school hours. In recent years, it has also become an after -school childcare program for working parents. The State of California has directed the City to either become licensed for a childcare facility or modify the program to meet State guidelines for non-licensure. Mr. Wolter reviewed State requirements for licensing and the costs involved to upgrade the City's program. The alternative is to go from a "restricted site access program" to a "drop -in playground program" and decrease the hours of operation. This alternative creates a hardship on working parents, and the children. Mr. Wolter stated the City currently charges $19 per child per month for attendance at PARTNERS. This allows the City to col- lect 50% of direct costs, but does not include overhead. He estimates $113.05 per month per child to provide 100% cost recov- ery rate for the Department overhead and direct costs to comply with State licensing; direct costs only are estimated at $86.95. Councilmember Wuriu asked if there is a reason for increasing the parents' charges from 50% to 100%? Mr. Wolter stated the costs of the operation will increase considerably in order to comply with State requirements; if Council does not increase the rates, the City will have to subsidize the program up to $20,000 per year. Councilmember Wuriu was concerned the program may collapse due to the cost increase because some parents will not be able to afford it. Mr. Wolter did not believe that will happen; the increased costs represent a higher standard of care for children. He noted there is a Youth Activity Fund established by the Recreation and Parks Commission to help youths in low-income families; obtaining a State license also allows the City to access other State pro- grams to assist low-income family participants. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. Councilmember Baker stated he philosophically against this pro- gram; he believes it is socialistic for the government to take MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 23, 1990 PAGE 9 care of children. He recognizes the need for the program, but stated it should be subsidized by industry or private organiza- tions. If Council approves the program, he recommends they adopt the 100% direct costs plus overhead fee schedule ($113.05/month). Mayor Sheetz stated childcare is one of the top ten problems in the nation today. She said both single men and women rely on these programs in order to be able to work and support their fam- ilies. She noted many companies are establishing childcare facilities as part of their benefit package for employees. She stated she is a strong supporter of the program, and was con- cerned no participant in the program is present to support it. Councilmember Wuriu stated he is concerned about that also; he has been trying to find people who participate in the program to ask their opinion on the increased rates, but has been unsuccessful. MOTION: Councilmember Lemons moved for the adoption of Resolu- tions No. 47-90 and 48-90. The motion was seconded by Mayor Sheetz and carried with Councilmember Baker vot- ing no. (3-1) RESOLUTION NO. 47-90 AUTHORIZING THE APPLICATION FOR LICENSING UNDER THE SCHOOL AGE CHILD CARE PROGRAM OF THE STATE DEPARTMENT OF SOCIAL SERVICES RESOLUTION NO. 48-90 ESTABLISHING A COST RECOVERY RATE OF 1.0 OF DIRECT COSTS FOR SCHOOL AGE CHILD CARE PROGRAMS AND AMENDING THE PART-TIME SALARY CLASSIFICATION PLAN FOR RECREATION AND PARKS EMPLOYEES D-3 EVALUATION OF WATER CONSERVATION BENEFITS OF REPLACING ALL EXISTING TOILETS WITH ULTRA -LOW FLUSH MODELS Mr. Napper stated this item has been agendized at the request of Councilmember Lemons to discuss Ms. Peters' letter about the City paying to replace all existing toilets in Morro Bay with new, low -water -usage models. San Simeon Community Services District recently completed a program of this nature. Councilmember Lemons stated there are several things the City should be doing in the way of water conservation; this item has potential. Whether it is cost effective or not depends on num- bers that can be generated by staff; there is a genuine savings in water that can be realized. Staff will have to determine the number of toilets that can be retrofitted with 1.5 gallon models, and how much water might be saved. San Simeon is very encouraged by the results of their program. Also, he suggested staff begin preliminary negotiations with some of the farmers in the Chorro and Morro Valleys to explore the MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 23, 1990 PAGE 10 possibility of paying them not to farm this year, and what the costs might be to save water this way. Another suggestion is to direct staff to negotiate and bring back the costs of installing desalination plants for 100 to 200 acre feet of water. Councilmember Baker asked what would happen to the building pro- gram for retrofitting if the City replaces all toilets with 1.5 gallon models? Councilmember Lemons stated that could be addressed in the staff report. Councilmember Wuriu stated the retrofit program is a good one, and the City does not have to pay for it. If everything is retrofitted at one time, the City will eliminate the best cushion it has against the water situation Mayor Sheetz opened the hearing for the public for comments. Ray Kaltenbach, Sicily Street, did not believe 1.5 gallon toilets work; also they are ugly. He said it is the people, not retrofit, that saves water. Ron Holman reviewed some of his personal water saving habits not- ing he probably uses 2 gallons of water per day, which also saves energy. He said the City should continue with water restrictions even when they obtain supplemental water. Charles Palmer, Estero Street, discussed the wasting of water at the high school due to lack of water saving fixtures on shower heads and toilets. There is no economical incentive for the school to retrofit their facilities. He said Morro Bay needs an economical incentive for people to save water. Mayor Sheetz closed the hearing to the public. Mayor Sheetz stated retrofit is a good working program with developers paying for it; it allows some building to continue. If the City replaces toilets, the program will suffer, and the City will have to pay the costs. She prefers to pursue desal or reclamation to obtain water. Councilmember Lemons stated he is only requesting staff generate a report. Councilmember Lemons asked the City Attorney if it is possible to request staff prepare an ordinance requiring agen- cies, such as the high school, to install state-of-the-art water saving devices? Ms. Skousen stated an ordinance could be pre- pared requiring anyone who uses over a certain amount of water to install water saving devices. The City cannot single -out any specific user. Councilmember Wuriu requested a part of the ordinance include a provision giving Council the authority to halt all new water 9 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 23, 1990 PAGE 11 hook-ups (cancel building permits) in the event of instituting Level 4 of the water conservation measures. Councilmember Lemons stated these items require leadtime to pur- sue before anything can be accomplished; he suggested Council authorize staff to see if the farmers are willing to negotiate, and investigate contracting for a desal plant. Mayor Sheetz stated she would support the desal and reclamation concepts, but is not in favor of pursuing the City replacing all toilets with 1.5 gallon models. MOTION: Councilmember Lemons moved staff prepare an analysis concerning options to obtain desal and reclamation water, and evaluate purchasing farming rights from the farmers in the Morro and Chorro Valleys. The motion was seconded by Councilmember Wuriu and unanimously carried. (-0) M+COM_00ROA-1-1-W None F. ADJOURNMENT MOTION: Councilmember Baker moved the meeting be adjourned. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) The meeting adjourned at 7:34 p.m. Recorded by•�o'�� 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 - APRIL 9, 1990 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE PRESENTATIONS 1. PRESENTATION OF AWARDS OF APPRECIATION TO PLAYGROUND SELECTION CONSULTANTS PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearings 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 JOINT MEETING WITH THE RECREATION AND PARKS COMMISSION ON MARCH 20, 1990, AND THE REGULAR MEETING OF MARCH 26, 1990 A-2 AWARD OF CONTRACT (RP 89-02) FOR PURCHASE AND INSTALLATION OF PLAYGROUND EQUIPMENT IN MORRO BAY "CITY" PARK, AND APPROPRIATION OF ADDITIONAL PARK IN -LIEU FUNDS A-3 RESOLUTION NO. 40-90 ESTABLISHING COMMEMORATIVE TREE PLANTING POLICIES FOR PARKS, PUBLIC PROPERTIES, AND RIGHTS -OF -WAY A-4 PROCLAMATION DECLARING APRIL 24, 1990 TO APRIL 24, 1991 AS "GENERAL FEDERATION OF WOMEN'S CLUBS CENTENNIAL YEAR" AND APRIL 24, 1990 AS "GENERAL FEDERATION OF WOMEN'S CLUBS CENTENNIAL CELEBRATION DAY" A-5 RESOLUTION NO. 42-90 HONORING LT.(jg) MARK DIETRICH FOR HIS SERVICES DURING COMMAND OF U.S. COAST GUARD CUTTER POINT HEYER A-6 NOTICE OF COMPLETION FOR PROJECT PW 89-07, SECOND ELENA STREET WATER TANK A-7 PROCLAMATION DECLARING APRIL 17, 1990 AS "FREE MORRO BAY DIAL -A -RIDE DAY" IN OBSERVANCE OF AIR DAY DURING EARTH WEEK 1990 CELEBRATION A-8 PROCLAMATION DECLARING APRIL 16-22, 1990 AS "COMMUNITY CLEAN-UP WEEK" WITH FREE TRASH PICKUP ON CUSTOMERS' REGULAR REFUSE COLLECTION DAY B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 370 ESTABLISHING LOCAL PERMIT REQUIREMENTS FOR COMMERCIAL MOTION PICTURE PRODUCTIONS, TELEVISION PRODUCTIONS AND STILL PHOTOGRAPHY ON CITY PROPERTY (SECOND READING/ADOPTION) B-2 ORDINANCE NO. 371 AMENDING CHAPTER 3.08 OF THE MORRO BAY MUNICIPAL CODE (PURCHASE AND SALE OF SUPPLIES AND EQUIPMENT) TO PROVIDE BID CREDITS FOR THE CITY'S PURCHASE OF RECYCLED GOODS AND PAPER PRODUCTS, AND INCREASING THE THRESHOLD TO $10,000 NECESSITATING FORMAL BID PROCEDURES (SECOND READING/ADOPTION) B-3 RECONSIDERATION OF MORRO BAY'S PARTICIPATION IN AND FUNDING OF A COUNTYWIDE HOUSEHOLD HAZARDOUS MATERIALS WASTE COLLECTION DAY C. NEW BUSINESS C-1 RESOLUTION NO. 41-90 APPOINTING DELEGATE AND ALTERNATE TO COUNTY SOLID WASTE TASK FORCE D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 RESOLUTION NO. 39-90 ORDERING AN EMERGENCY MEDICAL SERVICES SPECIAL TAX MEASURE ONTO THE NOVEMBER 1990 LOCAL ELECTION BALLOT D-2 REQUEST BY BAYSHORE VILLAGE PROPERTY OWNER FOR AMENDMENTS TO CONSTRUCTION AND BUILDING PERMIT PHASING REQUIREMENTS OF RESOLUTION NO. 60-89 REGARDING THE CONDITIONAL USE PERMIT FOR COMPLETION OF THE 72-UNIT RESIDENTIAL CONDOMINIUM PROJECT. D-3 CONTINUED CONSIDERATION OF WATER ALLOCATION OPERATING PROCEDURES FOR 1990 BUILDING PROGRAM RELATIVE TO PREFERENCE FOR AFFORDABLE HOUSING PROJECTS AND/OR PREFERENCE TO LESS WATER -INTENSIVE CONVERSION OF EXISTING COMMERCIAL USES TO RESIDENTIAL HOUSING E. CLOSED SESSION 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. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 9, 1990 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: Forrest Henderson Judy Skousen Ardith Davis William Farrel Steve Wolter Horace Strong gave the invocation, Allegiance. Asst. City Admin. City Attorney City Clerk Community Dev. Dir. Rec. & Parks Dir. and led the Pledge of Mayor Sheetz presented Awards of Appreciation to several children who assisted the City in selecting new playground equipment for Morro Bay "City" Park. Those receiving awards and Recreation and Parks pins were Eric Donnelly, Roscoe Mathias, Victor Rocha, and Frankie Von Hooser; Jordan Wiggins was not present at the meeting but will also receive the awards. • V�Y 1. Mary Phillips, Ironwood, commented on the curbside recycling ordinance which was printed in the newspaper and referred to Section 3 of the California Constitution. She read this section to Council cautioning them that garbage is an indi- vidual's personal, private property and it cannot be taxed. 2. Ross Blakely, publisher and editor of the Morro Bay City Key objected to phrasing in the minutes which quotes Mayor Sheetz's and the City Attorney's comments criticizing the "newspapers" and "news media" coverage of the leaky water ordi- nance. He believes there is only one newspaper involved, and the entire media should not be included. 3. Lynda Merrill, 391 Sequoia, commented the City Council should be leading the community in conservation of water. The 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 9, 1990 PAGE 2 City sends notices to people demanding they reduce their water use, threaten people if they do not follow the guidelines, then increase the price of water. She does not believe Council appre- ciates the efforts of the people; they are cooperating and they deserve thanks for their efforts. DECLARATION OF FUTURE AGENDA ITEMS 1. Councilmember Wuriu requested an item be scheduled to consider possible changes in the City's water conservation ordi- nance. He said Council should have the authority to prohibit water hookups if the water situation approaches to a critical stage. Ms. Skousen stated Council has this authority under cur- rent State law, however, Councilmember Wuriu wants the policy spelled out in the fourth level of water conservation procedures so people will know what they can except. Councilmember Lemons requested Councilmember Wuriu prepare some- thing in writing for Council to consider. Councilmember Wuriu believes the water situation is becoming critical and commented the Water Engineer is investigating having iceberg water transported to Morro Bay by ships using huge bags. Ms. Skousen reminded Council of their policy to place Council - requested items on the agenda without staff analysis so they can discuss the matter, arrive at a consensus, and give direction to staff. A. CONSENT CALENDAR Mr. Henderson stated City Administrator Gary Napper is out-of- town on vacation this week. Mr. Napper's Agenda Summary recommended Council approve the min- utes as submitted. Mr. Napper recommended Council award the contract to Miracle Recreation of Monett, Missouri, in the amount of $8,165; and, allocate $2,166 from the Park In -Lieu Fee Fund to complete the project. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 9, 1990 PAGE 3 � PLANTING POLICIES—PUBLIC •AY Mr. Napper recommended Council adopt Resolution No. 40-90. Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-5 RESOLUTION NO 42-90 HONORING LT (jg) MARK DIETRICH FOR HIS SERVICES DURING COMMAND OF U.S. COAST GUARD CUTTER POINT HEYER Mr. Napper recommended Council adopt Resolution No. 42-90. A-6 NOTICE OF COMPLETION FOR PROJECT PW 89-07, SECOND ELENA STREET WATER TANK Mr. Napper recommended Council accept the project as complete, and authorize the City Clerk to sign and file the Notice of Com- pletion. A-7 PROCLAMATION DECLARING APRIL 17, 1990 AS "FREE MORRO BAY DIAL -A -RIDE DAY" IN OBSERVANCE OF AIR DAY DURING EARTH WEEK 1990 CELEBRATION Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-8 PROCLAMATION DECLARING APRIL 16-22, 1990 AS "COMMUNITY CLEAN-UP WEEK" WITH FREE TRASH PICKUP ON CUSTOMERS' REGULAR REFUSE COLLECTION DAY Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. Councilmember Odell stated there is a correction to the Minutes of March 26, 1990 on page ten; the reference to Dick "Fisher" should be changed to "Farris". MOTION: Councilmember Wuriu moved for approval of the Consent Calendar with the amendment to the Minutes of March 26, 1990. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 9, 1990 PAGE 4 B. UNFINISHED BUSINESS B-1 ORDINANCE NO 370 ESTABLISHING LOCAL PERMIT REQUIREMENTS FOR COMMERCIAL MOTION PICTURE PRODUCTIONS, TELEVISION PRODUC- TIONS AND STILL PHOTOGRAPHY ON CITY PROPERTY (SECOND READ- ING/ADOPTION) Mr. Henderson stated this Ordinance, after adoption this evening, will go into effect May 9th. MOTION: Councilmember Lemons moved Ordinance No. 370 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Henderson read Ordinance No. 370 by title and number only. MOTION: Councilmember Baker moved for final reading and adop- tion of Ordinance No. 370. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) B-2 ORDINANCE NO. 371 AMENDING CHAPTER 3.08 OF THE MORRO BAY MUNICIPAL CODE (PURCHASE AND SALE OF SUPPLIES AND EQUIPMENT) TO PROVIDE BID CREDITS FOR THE CITY'S PURCHASE OF RECYCLED GOODS AND PAPER PRODUCTS, AND INCREASING THE THRESHOLD TO $10.000 NECESSITATING FORMAL BID PROCEDURES (SECOND READING ADOPTION) Mr. Henderson said Ordinance No. 371, agendized for second read- ing this evening, amends the City's purchasing procedures to allow credits for purchase of recycled products, and extends the limit requiring bidding procedures to $10,000. This Ordinance will go into effect May 9th. MOTION: Councilmember Baker moved Ordinance No. 371 be read by title and number only. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) Mr. Henderson read Ordinance No. 371 by title and number only. MOTION: Councilmember Baker moved for final reading and adop- tion of Ordinance No. 371. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) B-3 RECONSIDERATION OF MORRO BAY'S PARTICIPATION IN AND FUNDING OF A COUNTYWIDE HOUSEHOLD HAZARDOUS MATERIALS WASTE COLLEC- TION DAY Mr. Henderson reviewed the efforts of the County to coordinate a Countywide Household Hazardous Materials Waste Collection Day. The total cost of the event is estimated at $120,000 and costs for the cities and county will be based on participation from each entity; Morro Bay's share is estimated at $25,000. He MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 9, 1990 PAGE 5 stated these funds will have to come from contingencies since it is not a budgeted item. He noted five other agencies have com- mitted to participating: Arroyo Grande, Atascadero, Grover City, City of San Luis Obispo, and the County. Staff recommends par- ticipation in the County program; it is better to provide citi- zens with this avenue of disposing of their toxic wastes. Mayor Sheetz asked how much it cost the City to sponsor Morro Bay's Hazardous Waste Collection Day in 1987? Chief Zerr stated in 1987, 150 people from Morro Bay participated and the City col- lected 66 55-gallon drums of hazardous waste; the event cost the City $12,000. Mayor Sheetz asked if the City should conduct its own program? Chief Zerr stated yes, however, there are economies of scale in dealing with the County, and staff believes it is in the best interests of the City to participate in a countywide program. Councilmember Wuriu stated costs should be on ability to pay rather than who attends. He asked if there had been any talk of compromise? Tim Mazzacano, County Director of Environmental Health, stated from the time Morro Bay first addressed this issue, costs have increased considerably. He introduced Debbie Smith -Cook, Commu- nity Projects Coordinator, to answer questions from Council. Mayor Sheetz asked if there is a reason why Paso Robles and Pismo Beach are not participating? Ms. Smith -Cook stated they have not been able to bring the issue to their Councils to date. She reviewed the events leading up to the current proposal, all of which contained considerable input from county and city managers and their fire chiefs. Councilmember Lemons asked what are the costs if no one attends the event? Ms. Smith -Cook stated the cost would be $9,200 for the contractor the County has hired to haul and dispose of the hazardous wastes. Councilmember Lemons asked if the only attendee is one person from Morro Bay, what would Morro Bay's costs be? Ms. Smith -Cook stated the total cost of the event. Councilmember Lemons asked what the cost estimates are based on? Ms. Smith -Cook stated they are based on experience of other jurisdictions. It is not possible to specifically estimate the cost because of unknown factors: how many will participate, type of waste to be disposed, amount of waste; the contractor's fee is the only fixed fee the County has at this point. She gave fig- ures from other jurisdictions. Mayor Sheetz stated since the event is scheduled for June, there is still time for the other cities to place this matter before their Councils. Ms. Smith -Cook stated there is a considerable MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 9, 1990 PAGE 6 amount of work to be done before the event. The County requires a decision from all entities by the end of April, or they will be unable to prepare for a June event. Councilmember Lemons asked who will decide if there is enough participation for the event to be held? Ms. Smith -Cook stated the County Administrator will make that decision. Councilmember Wuriu was concerned about the amount the City may be required to pay; the basis for computing costs does not seem fair. Councilmember Lemons stated the figure is based on an assumption of 21% participation by the City. The cost is comparable to the cost of the event held by the City in 1987 if only 150 people from Morro Bay participate. Mayor Sheetz commented Paso Robles and Pismo Beach could decide to participate which will reduce costs further. MOTION: Councilmember Lemons moved Council authorize the City's participation in the June 1990 County Household Haz- ardous Waste Collection Day, and earmark $15,000 from FY 89-90 General Fund Contingencies and $10,000 from FY 89-90 Sewer Operating Fund Contingencies to pay for the City's expected share of the event. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) C. NEW BUSINESS C-1 RESOLUTION NO. 41-90 APPOINTING DELEGATE AND ALTERNATE TO COUNTY SOLID WASTE TASK FORCE Mr. Henderson stated the County Solid Waste Management Commission has been restructured under AB 939 as the County Solid Waste Task Force. The County has requested the City appoint a delegate and alternate to the Task Force; staff suggests appointing a member of the City Council as delegate, and Mike Upton, Administrative Assistant as the alternate. Councilmember Lemons stated he served on the Solid Waste Manage- ment Commission and is willing to serve on this re -constituted board. MOTION: Councilmember Wuriu moved Councilmember Lemons be appointed as City Council delegate to the Solid Waste Task Force, and Mike Upton as alternate. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 9, 1990 PAGE 7 D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 RESOLUTION NO. 39-90 ORDERING AN EMERGENCY MEDICAL SERVICES SPECIAL TAX MEASURE ONTO THE NOVEMBER 1990 LOCAL ELECTION BALLOT Mr. Henderson stated this measure was narrowly defeated by the voters in 1989; the Fire Funding Steering Committee believes it still has merit and recommends it be resubmitted to the voters at the November 1990 election. Hopefully a general election will generate a larger voter turnout than the special election, and the measure will pass. One amendment has been made to the mea- sure to require an annual report on the expenditure, use, and/or encumbrance of the tax monies received. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. Councilmember Wuriu asked if there are plans for establishing a citizens committee to support the measure? Chief Zerr said the Fire Funding Steering Committee was involved during the last election and he assumes they will be involved again. Councilmember Lemons asked if there is anything constraining the Council as a whole or individually from supporting the measure? Ms. Skousen stated no. Councilmember Odell asked what gross amount of revenue will be generated by the measure? Chief Zerr stated $123,000 the first year. Councilmember Odell stated perhaps that should be included in the initiative. He also asked if a sunset clause could be included on the measure, and if it is common for a public agency to charge for medical runs? Chief Zerr stated there are 20 to 30 cities in California who do charge for this service. Councilmember Odell stated the City is a tourist town and asked how many medical runs are for transients? He does not believe it is fair to come up with a number the City wants to offset the costs with. The measure failed once and it could fail again; the Council should consider charging for medical runs instead of hop- ing people will vote for this measure, and place purchase of a ladder truck on the ballot instead. Mayor Sheetz stated the original intention of Council was to upgrade the EMTs to paramedics. She asked if the measure was set up for a ten year period, would it accomplish what the City wants to do? Chief Zerr stated records indicate costs continue to escalate; there is no reason for the costs to go down. Some cities have provided for a sunset period, and have to return to the voters again for re -approval of funding. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 9, 1990 PAGE 8 Councilmember Baker stated the fee schedule is set up so it applies to residential and commercial property owners; he asked how many runs are made for the tourist community? Chief Zerr stated less than 1%. He added the Fire Funding Steering Commit- tee considered a number of options; the problem with charging for medical calls is some people will not call because they cannot afford to pay. Councilmember Lemons stated it would give him a great deal of security to know that for 83C per month the two people in his household will have paramedic service available. He said the measure is a great opportunity for Morro Bay, with its more than normal amount of people over the age of 30, to have this service available to them. Mayor Sheetz commented the measure lost by a small margin at the last election; with better education of the public, she believes the measure will succeed. MOTION: Mayor Sheetz moved for the adoption of Resolution No. 39-90. The motion was seconded by Councilmember Wuriu and carried with Councilmember Odell voting no. (4-1) Chief Zerr asked if Councilmembers wished to prepare a ballot argument in favor of the measure or preferred to let someone else do it? Council consensus was for Council to write and sign the argument in favor. D-2 REQUEST BY BAYSHORE VILLAGE PROPERTY OWNER FOR AMENDMENTS TO CONSTRUCTION AND BUILDING PERMIT PHASING REQUIREMENTS OF RESOLUTION NO. 60-89 REGARDING THE CONDITIONAL USE PERMIT FOR COMPLETION OF THE 72-UNIT RESIDENTIAL CONDOMINIUM PROJECT Mr. Farrel stated when last considering this matter, Council adopted a Resolution to allow the Bayshore Village project to be phased over a 2-year period: 1989 to 1990. Inland West received ownership of the property recently, and was unable to pull build- ing permits until they took possession. They are requesting an adjusted start-up date. Staff has no objection to the request and has prepared a resolution approving the delay in construction start-up. All other conditions remain the same. Mayor Sheetz stated the control factor for water use is in occu- pancy permits rather than building permits. Mr. Farrel said that is correct; Inland West would like to pull all building permits in 1990 but will phase occupancy over 1990-91. Councilmember Wuriu was concerned about issuing all the permits in one year and suggested they be spread over a period of time. 4 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 9, 1990 PAGE 9 Councilmember Odell asked if they have obtained a Coastal Devel- opment Permit? Mr. Farrel stated the court awarded them the original CDP which is still valid. Mayor Sheetz opened the hearing to the public for comments. Spike Lynch, representing Inland West, explained some of the changes made in the original plans were handled administratively; the Coastal Commission records for that period in time have been sent to Sacramento for storage so details are not available. He stated the Department of Real Estate is requiring all building permits be pulled at once; in order for them to issue a public report, they have to be sure all units will be built because homeowners fees association fees have to be deposited by new property owners. If all units are not built, homeowners will suffer damage because their share of fees will be larger. Both the Department of Real Estate and construction lenders, however, are aware of the water situation and are willing to allow the project to proceed in spite of possible restrictions in this area. Council discussed their desire to see the project water use sepa- rated by a period of time. Ann Freeman, 785 Cabrillo, quoted from a letter addressed to Joe Borba of Inland West from Judith W. Allen, Staff Counsel for the Coastal Commission, stating the only Coastal Commission approval received is to complete the project based on the plans originally approved. She requested the City be required to produce a copy of the plans as originally approved by the Coastal Commission, and requested Council not grant the building permits tonight. Mr. Farrel stated he read the same letter and discussed it with Judy Allen; the letter intends to say the way is clear for the project to proceed. He noted a recent discussion with previous Morro Bay Planning Director Mike Multari; Mr. Multari stated changes were made to the approved plan during visits to the pro- ject site by Coastal Commission staff in place at that time. He noted it is not incumbent upon the City to enforce the Coastal Development Permit issued by the Coastal Commission; it is the Coastal Commission's prerogative and they have so informed the City. Melvin Lees, Sandpiper Lane and resident of Bayshore Village, stated Judy Allen has assured him there is no problem whatsoever and construction to finish the project can commence. Mayor Sheetz closed the hearing to the public. Mayor Sheetz stated Council action is to approve or disapprove Resolution No. 43-90; the Coastal Commission permit is not part of Council action. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 9, 1990 PAGE 10 MOTION: Councilmember Baker moved for adoption of Resolution No. 43-90. The motion was seconded by Councilmember Lemons. Councilmember Lemons suggested a condition be placed to specify issuing building permits for Phase 3 of the project will be con- ditioned upon the fact water will not be furnished to the units until after January 1991. Ms. Skousen said this could be done, but would have to be worded carefully. SUBSTITUTE Councilmember Lemons offered a Substitute Motion to MOTION: adopt Resolution No. 43-90 with an amendment to page two, Section 2 to read, " ..final occupancy approval shall be granted for approximately half of the units in 1990, and half after 31 March 1991...". The Substitute Motion was seconded by Councilmember Wuriu and carried with Councilmember Odell voting no. (4-1) Councilmember Lemons stated it is his intention staff control this and make sure absolutely no water hookups take place on Phase III water units until after 31 March 1991. D-3 CONTINUED CONSIDERATION OF WATER ALLOCATION OPERATING PROCE- DURES FOR 1990 BUILDING PROGRAM RELATIVE TO PREFERENCE FOR AFFORDABLE HOUSING PROJECTS AND/OR PREFERENCE TO LESS WATER - INTENSIVE CONVERSION OF EXISTING COMMERCIAL USES TO RESIDEN- TIAL HOUSING Mr. Henderson stated this item is continued from the last meeting at Council request, and reminded Council Measure F is a growth management ordinance which governs new residential development. Mr. Farrel stated there is no new staff information on this item. A proposal has been made by staff, based on Section 13.20 of the Morro Bay Municipal Code, to offer low and moderate income hous- ing priority on the permit waiting list. When the Planning Com- mission considered this subject, they recommended 50% of the available multiple family units be reserved for low-income hous- ing projects. Mr. Farrel stated Council is in receipt of a let- ter from Tom Courtney, Alta Morro project architect, requesting their residential condominium project be exempt from Measure F on the basis that they have water. Staff recommends Council not make any exemptions from Measure F, the growth management ordi- nance. If, however, Council does not award any new residential connections in line for water this year, Council may allow the project to proceed. Mayor Sheetz stated in order to qualify for low-income housing, a developer has to conform to standards and guidelines. Mr. Farrel confirmed this information, and stated the standards are set by the Department of Housing and Community Development. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 9, 1990 PAGE 11 Mayor Sheetz questioned how the City can make sure the low-income housing status is maintained and not converted to market rate units at a later date? Mr. Farrel stated through a deed restric- tion requiring a 30-year commitment. Councilmember Baker stated Mr. Courtney's proposal requests allowing the project to go forward because it already has water and the water use for this project will be less than that for its current motel use. However, the motel has experienced low occu- pancy in recent years, and he asked if the proposed use will actually increase water usage? Mr. Farrel stated staff uses a water equivalency table adopted by Council to determine how much water is required by different uses; water allocations have been averaged for this table and actual individual use is not considered. Councilmember Baker stated he will have to vote against the Alta Morro proposal because he believes there will be an increase in water usage with the new use. Councilmember Lemons commented if the developer wanted to build another motel at this site with the same number of units he would be allowed to do so without seeking Council approval; yet, his water use would increase because the new motel would be more appealing to tourists. Mr. Farrel stated to approve this use in order to save water is not a good reason to approve it; the right reason is because, it enables some building program to proceed in Morro Bay without harm to the City because of additional water use. Mayor Sheetz stated the main issue is Measure F; if Council does not allocate water this year for new building, it may be possible to allow this project to go forward. Councilmember Wuriu stated if Council allows 50% priority to low- income housing and it does not materialize, will the allocations transfer to regular multi -family projects? Mr. Farrel stated yes. Mayor Sheetz opened the hearing to the public for comments. Tom Courtney, representing the Alta Morro development, stated the proposed project is a constructive way to improve blighted areas; it returns three water equivalencies back to the City. Bob Armet, Alta Morro project engineer, stated this project will save water for the City based on the low -flow fixtures to be installed in the units; they will be installing 28 1�-gallon toi- lets in the project. He said the condominium use is similar to vacation home use in that many homes will be second homes for i • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 9, 1990 PAGE 12 people living outside the area; this will further reduce water consumption. Ed McCracken stated low and moderate income housing is fast dis- appearing, and provisions should be made to set aside this type of housing for people. Ann Freeman, Cabrillo, stated she is concerned about the amount of water to be used by this new development; Council just gave 46 units to a project which will impact the amount of water that is going to be available. Council should carefully consider award- ing any more water allocations. Colleen Sturgeon, 406 Zanzibar, stated she owns a lot in Morro Bay and has been saving for 20 years to build; she cannot afford to buy a new house in Morro Bay, but she can afford to build on her lot. She does not believe she should be penalized because she is not buying a house, which is what will happen if Council allows this development priority. Len Carpenter, Pacific Street, stated water is a valuable resource and people with surplus water should be able to sell their excess equivalencies. He explained his property was previ- ously used by a laundry which is allowed 6.95 water equivalen- cies; his office use on the same site uses 1.5. He should be allowed to market the excess equivalencies at whatever price he can get. He also believes people who have water should be allowed to move up the list. Lynda Merrill, 391 Sequoia, discussed conservation and stated she would like to know how the tennis courts on the Bayshore project were converted to a swimming pool. She said if Mr. Courtney can prove his project will not use additional water, he should be allowed to build. Mayor Sheetz closed the hearing to the public. Councilmember Lemons stated he supports priority for strictly low-income housing, but not if it contains market rate units as well. Mayor Sheetz agreed. Councilmember Lemons also stated low-income housing projects should be sponsored by agencies with a track record for administering such projects, such as People's Self -Help Housing. He said the City provides several incentives for people who want to develop low-income housing outside of pri- ority on building. Councilmember Lemons suggested staff be directed to develop lan- guage for a policy which would give priority to low-income hous- ing projects that do not contain market rate units. He also com- mented Council should discuss the Alta Morro project in June when consideration is given to allocating water. Mr. Farrel stated he MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - APRIL 9, 1990 PAGE 13 would poll the waiting list to see if any other multiple family applicants ahead of the Alta Morro project currently have water. Councilmember Baker requested staff also investigate Len Carpenter's proposal concerning marketing extra water equivalen- cies. He suggested the idea is not that far-fetched, and perhaps some of the people on the waiting list would be willing to pur- chase the water equivalencies. E. CLOSED SESSION None F. ADJOURNMENT MOTION: Councilmember Lemons moved the meeting be adjourned. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) The meeting adjourned at 8:45 p.m. Recorded ,,;;by: aCeGuw� ARDITH DAVIS City Clerk a,aa 3, / q fe , 5w--t� - 6y� ll�, 'iLt NOT = C E (::)IF S P E C S AL MEET 3L NG NOTICE IS HEREBY GIVEN that a Special Meeting of the Morro Bay City Council is hereby called to be held on Tuesday, April 3, 1990 at 7:00 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 Joint Powers Committee meeting with the Cayucos Sanitary District Board of Directors on the following items: A. INTRODUCTION OF MEMBERS AND ROLL CALL B. PUBLIC COMMENT PERIOD Members of the audience wishing to address the Joint Powers Committee on pertinent matters NOT ON THE SCHEDULED AGENDA may do so at this time. By the conditions of the Brown Act the Commit- tee may not discuss issues not on the agenda, but may set the items for future agendas. Please wait to be recognized by the Chair and state your name and address. Please limit you comments to three minutes. C. CONSENT CALENDAR AND INFORMATIONAL REPORTS C-1 Minutes of December 14, 1989 Meeting D. CONTINUED BUSINESS D-1 Air Pollution Control Project a. Brown & Caldwell Pre -Design Report b. Agreement between City and Sanitary District to con- struct project E. CLOSED SESSION E-1 Government Code Section 54956.9(a), pending litigation; Oualman Oyster Co. vs. City of Morro Bay F. ADJOURN Next semi-annual Joint Powers Committee meeting to be held in June 1990 in Cayucos. Copies of Staff Reports and other public documen- tation relating to each item of business for this meet- ing are on file at Morro Bay City Hall, 595 Harbor Street and the Cayucos Sanitary District, 201 Cayucos Drive, for public inspection and reproduction at cost. Any person having questions regarding any agenda item may contact G.H. Nichols, Director of Public Works, 695 Harbor Street, Morro Bay. DATED: March 28, 1990 JY L'LCl1\L 1! JLL L LJLU, 1'1 ��'iVL V ty of Morro Bay, California MINUTES - CAYUCOS JOINT POWERS SPECIAL MEETING - CITY HALL CONFERE SANITARY DISTRICT COMMITTEE APRIL 3, 1990 ICE ROOM - 7:00 P.M. The meeting was called to order at 7:00 p.m. A. INTRODUCTION OF MEMBERS AND ROLL CALL Morro Bay City Council PRESENT: Rose Marie Sheetz Jeff Odell Tom Wuriu ABSENT: John Baker John Lemons Cavucos Sanitary District Board of Directors PRESENT: Evan Dill Terry Schubert Tom Craig Patti Hutchinson ABSENT: Henry Piaskowski STAFF: Gary Napper Judy Skousen Louise Burt Nick Nichols Darrel Richards Ron Doty B. PUBLIC COMMENT PERIOD None Mayor Councilmember Councilmember Councilmember Councilmember President Vice President Boardmember Boardmember Boardmember City Administrator City Attorney Finance Director Public Works Dir. Water Quality Cntrl. Superintendent Brown & Caldwell C. CONSENT CALENDAR AND INFORMATIONAL REPORTS C-1 Minutes of December 14. 1989 Meeting MOTION: Vice President Schubert moved for approval of the min- utes. The motion was seconded by Councilmember Wuriu and unanimously carried. (7-0) MINUTES - CAYUCOS SANITARY DISTRICT JOINT POWERS COMMITTEE SPECIAL MEETING - APRIL 3, 1990 PAGE 2 D. CONTINUED BUSINESS D-1 Air Pollution Control Project a. Brown & Caldwell Pre -Design Report b. Agreement between City and Sanitary District to Con- struct Project Mr. Nichols presented the Hydrogen Sulfide Control Study, Pre - Design Report prepared by Brown and Caldwell in which recommenda- tions are made for ferrous chloride injections at Morro Bay and Cayucos pump stations, and the Wastewater Treatment Plant. Mr. Nichols believes only three injections are needed in order to meet Air Pollution Control District requirements: Cayucos Pump Station #5, Morro Bay Pump Station #2, and the Treatment Plant. He recommended the Council and Board enter into an Agreement to contract for Design and Construction of Ferrous Chloride Injec- tion Facilities. Vice -President Schubert objected to the suggested 30% administra- tive fee Cayucos will have to pay to Morro Bay. MOTION: Councilmember Wuriu moved Morro Bay accept Brown and Caldwell's report and staff recommendation to approve the Agreement for Design and Construction of Ferrous Chloride Injection Facilities, authorize the Mayor to execute the Agreement, and direct Brown & Caldwell Con- sultants to proceed with the preparation of construc- tion drawings and final cost estimates. The motion was seconded by Councilmember Odell and unanimously carried. (3-0) MOTION: President Dill moved the District participate in the project for Pump Station #5 and the Treatment Plant (without 2 and 3), amend the Agreement to Cayucos pay- ing 1/3rd of Morro Bay administration costs, and autho- rize the President to sign the Agreement on behalf of the District. The motion was seconded by vice -Presi- dent Schubert and unanimously carried. (4-0) MOTION: Councilmember Odell moved Morro Bay accept the Agree- ment as proposed by Cayucos. The motion was seconded by Councilmember Wuriu and unanimously carried. (3-0) E. CLOSED SESSION E-1 Government Code Section 54956.9(a) - Pending Litigation: Qualman Oyster Co. vs City of Morro Bay The Morro Bay City Council and the Cayucos Sanitary District adjourned to Closed Session to discuss this item. MINUTES - CAYUCOS SANITARY DISTRICT JOINT POWERS COMMITTEE SPECIAL MEETING - APRIL 3, 1990 PAGE 3 F. ADJOURN MOTION: Councilmember Odell moved the meeting be adjourned. The motion was seconded by Boardmember Craig and unani- mously carried. (7-0) The meeting adjourned at 7:53 p.m. �- �i���l�lli\ i/j_Ii/ice_„� �,�► �� NOT = C E O F SPEC = AL MEET = NG NOTICE IS HEREBY GIVEN that a Special Meeting of the Morro Bay City Council is hereby called to be held on Tuesday, April 3, 1990 at 6:00 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 interviewing and appointing applicants to the Recreation and Parks Commission. DATED: March 29, 1990 i i MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - APRIL 3, 1990 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 Jeff Odell Councilmember Tom Wuriu Councilmember ABSENT: John Lemons Councilmember John Baker Councilmember STAFF: Gary Napper City Administrator Steve Wolter Rec. & Parks Dir. PUBLIC COMMENT None DECLARATION OF FUTURE AGENDA ITEMS Councilmember Odell requested an item be placed on a future agenda for Council to choose another Area Coordinating Council Alternate Delegate. He is unable to continue serving in that capacity. C. NEW BUSINESS C-1 INTERVIEW OF APPLICANTS FOR AND PARKS COMMISSION Councilmember interviewed Paula Quigley and Jesse Gaoiran for the vacancy on the Recreation and Parks Commission. Melvin Lees also applied and wished to be considered but was unable to attend the meeting for an interview. MOTION: Councilmember Odell moved Jesse Gaoiran be appointed to the vacancy on the Recreation and Parks Commission. The motion was seconded by Mayor Sheetz and unanimously carried. (3-0) Mr. Napper noted the term for this vacancy expires 31 December 1990. F. MOTION: Councilmember Odell moved the meeting be adjourned. The motion was seconded by Councilmember Wuriu and unanimously carried. (3-0) The meeting adjourned at 6:35 p.m. _ •.• Deputy City Clerk i %'* 02G, i9fa City Of Morro Lay 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 26, 1990 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 Hearings 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 MARCH 12, 1990 AND THE ADJOURNED REGULAR MEETING OF MARCH 14, 1990 A-2 STATEMENT OF INVESTMENTS - FEBRUARY 1990 A-3 EXPENDITURE REPORT - FEBRUARY 1990 A-4 RESOLUTION NO. 38-90 AWARDING CONTRACT TO PEOPLE'S SELF-HELP HOUSING CORPORATION FOR ADMINISTRATION OF CITY'S CDBG HOUSING REHABILITATION LOAN PROGRAM, PHASE II A-5 PROCLAMATION DECLARING APRIL 9-15, 1990 AS "MORRO BAY BUILDING SAFETY WEEK" A-6 RESOLUTION NO. 35-90 DECLARING WEEDS TO BE A FIRE SAFETY HAZARD AND PUBLIC NUISANCE, AND AUTHORIZING THE 1990 WEED ABATEMENT PROGRAM A-7 RESOLUTION NO. 33-90 ACCEPTING OFFER OF DEDICATION OF AN ADDITION TO KENNEDY WAY RIGHT-OF-WAY, AND AMENDING THE ABANDONMENT OF SHASTA AVENUE RIGHT-OF-WAY (PARCEL MAP MB 87-142) B-1 ORDINANCE NO. 368 ESTABLISHING AUTHORITY FOR CITY REPAIR OF LEAKY WATER FIXTURES ON PRIVATE PROPERTY AFTER DUE PROCESS NOTIFICATION, AND REQUIREMENT FOR PROPERTY OWNER REIMBURSEMENT OF CITY EXPENSES (SECOND READING/ADOPTION) B-2 ORDINANCE NO. 369 AMENDING CHAPTER 8.16 OF THE MORRO BAY MUNICIPAL CODE TO ESTABLISH A CITY-WIDE CURBSIDE RECYCLING PROGRAM (SECOND READING/ADOPTION) C. NEW BUSINESS C-1 REPORT ON MORRO BAY HARBOR FESTIVAL AGREEMENT WITH CITY OF MORRO BAY AND MODIFICATIONS TO CITY FINANCIAL SUPPORT OF FESTIVAL D. PUBLIC HEARINGS REPORTS & APPEARANCES D-1 ORDINANCE NO. 370 ESTABLISHING LOCAL PERMIT REQUIREMENTS FOR COMMER- CIAL MOTION PICTURE PRODUCTIONS, TELEVISION PRODUCTIONS AND STILL PHOTOGRAPHY ON CITY PROPERTY (INTRODUCTION/FIRST READING) D-2 ORDINANCE NO. 371 AMENDING CHAPTER 3.08 OF THE MORRO BAY MUNICIPAL CODE (PURCHASE AND SALE OF SUPPLIES AND EQUIPMENT) TO PROVIDE BID CREDITS FOR THE CITY'S PURCHASE OF RECYCLED GOODS AND PAPER PRODUCTS, AND INCREASING THE THRESHOLD TO $10,000 NECESSITATING FORMAL BID PROCEDURES (INTRODUCTION/FIRST READING) D-3 RESOLUTION NO. 36-90 ESTABLISHING A NEW MONTHLY WATER METER SYSTEM FEE AND ASSOCIATED LIFELINE WATER SERVICE PROGRAM FOR ELIGIBLE LOW-INCOME HOUSEHOLDS D-4 CITIZEN'S PRESENTATION FOR AMENDMENT OF EFFECTIVE DATE FOR IMPLEMENTA- TION OF RECENTLY REVISED WATER AND SEWER AVAILABILITY FEES (STEVEN J. BLAUT, D.C.) D-5 RESOLUTION NO. 37-90 ANNOUNCING FINDINGS AND APPROVING A CONCEPT PLAN AND A COASTAL DEVELOPMENT PERMIT FOR THE FIRST PHASE OF A SHOPPING CENTER ("PACIFIC COAST SHOPPING PLAZA") TO BE LOCATED ON PROPERTY LOCATED EAST OF STATE HIGHWAY ONE, AT THE EASTERLY TERMINUS OF MORRO BAY BOULEVARD, IN THE C-1/VS-C/S.4/PD ZONE, SUBJECT TO CONDITIONS, AND CERTIFICATION OF THE FINAL ENVIRONMENTAL IMPACT REPORT (CASE NOS. CUP 03-88; CONCEPT PLAN/CDP 05-88R) D-6 CONSIDERATION OF FIRST QUARTER WATER ALLOCATION AWARDS FOR 1990, AND STATUS REPORT REGARDING WATER BASIN AND CITY WELL LEVELS D-7 CONSIDERATION OF WATER ALLOCATION OPERATING PROCEDURES FOR 1990 BUILD- ING PROGRAM RELATIVE TO PREFERENCE FOR AFFORDABLE HOUSING PROJECTS AND/OR PREFERENCE TO LESS WATER -INTENSIVE CONVERSION OF EXISTING COMMERCIAL USES TO RESIDENTIAL HOUSING E. CLOSED SESSION 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. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 26, 1990 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 Ardith Davis City Clerk William Farrel Community Dev. Dir. Nick Nichols Public Works Dir. Steve Wolter Rec. & Parks Dir. Horace Strong gave the invocation, and led the Pledge of Allegiance. 1. Susan Mullin, 985 Pacific and representing ECOSLO, stated there have been recent management changes at ECOSLO and they had no opportunity to participate in the city's current plans for curbside recycling. She asked several questions regarding the City's program, and stated they would like to respond to an RFP next year and compete for a contract on curb- side recycling. She encouraged Council to RFP a recycling con- tract in 1991. 2. Mary Phillips, Ironwood, objected to some of the regu- lations set by Peoples Self -Help Housing for seniors to have pets at the new housing project. They only allow one animal and require cats to be declawed. Many seniors have more than one pet, and requiring a cat to be declawed, especially if it's an outside cat, is inhumane. 3. Hank Alberts, President of the County Chapter of the American Civil Liberties Union, commented on the ordinance to be considered this evening concerning leaky water fixtures and the City's right to enter private property to fix the leaks; it is violation of people's civil rights. He asked for a copy of the ordinance (B-1), and it was provided to him. MINUTES - MORRO BAPICITY COUNCIL REGULAR MEETING - MARCH 26, 1990 PAGE 2 DECLARATION OF FUTURE AGENDA ITEMS None. A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF MARCH 12, 1990 AND THE ADJOURNED REGULAR MEETING OF MARCH 14, 1990 Mr. Napper recommended Council approve the minutes as submitted. A-2 STATEMENT OF INVESTMENTS - FEBRUARY 1990 Mr. Napper recommended Council receive the Report for file. A-3 EXPENDITURE REPORT - FEBRUARY 1990 Mr. Napper recommended Council approve the Report as submitted.. A-4 RESOLUTION NO 38-90 AWARDING CONTRACT TO PEOPLE'S SELF-HELP HOUSING CORPORATION FOR ADMINISTRATION OF CITY'S CDBG HOUS- ING REHABILITATION LOAN PROGRAM PHASE II Mr. Napper recommended Council adopt Resolution No. 38-90. A-5 PROCLAMATION DECLARING APRIL 9-15 1990 AS "MORRO BAY BUILD- ING SAFETY WEEK" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-6 RESOLUTION NO. 35-90 DECLARING WEEDS TO BE A FIRE SAFETY HAZARD AND PUBLIC NUISANCE. AND AUTHORIZING THE 1990 WEED ABATEMENT PROGRAM Mr. Napper recommended Council adopt Resolution No. 35-90. A-7 RESOLUTION NO 33-90 ACCEPTING OFFER OF DEDICATION OF AN ADDITION TO KENNEDY WAY RIGHT-OF-WAY AND AMENDING THE ABANDONMENT OF SHASTA AVENUE RIGHT-OF-WAY Mr. Napper recommended Council adopt Resolution No. 33-90. MOTION: Councilmember Wuriu moved for approval of the Consent Calendar as recommended by the City Administrator. The motion was seconded by Councilmember Odell and unani- mously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 26, 1990 PAGE 3 B. UNFINISHED _BUSINESS B-1 ORDINANCE NO. 368 ESTABLISHING AUTHORITY FOR CITY REPAIR OF LEAKY WATER FIXTURES ON PRIVATE PROPERTY AFTER DUE PROCESS NOTIFICATION. AND REQUIREMENT FOR PROPERTY OWNER REIMBURSE- MENT OF CITY EXPENSES (SECOND READING ADOPTION) Mr. Napper stated Council approved Ordinance No. 368 at their last meeting for first reading; it allows the City, after due process and notification, to repair water leaks on private prop- erty. In order to enter a person's home without one's permis- sion, the City would first have to seek an administrative search warrant through the courts. Mayor Sheetz opened the hearing to the public for comments. Mary Phillips, Ironwood, distributed copies of the Declaration of Independence and the Constitution of the United States of America to Councilmembers. She quoted from Article IV of Amendments to the Constitution concerning the people's right to be secure in their homes. She said the simplest thing to do when there is a water leak is to shut the water off from the street. She stated the newspaper quoted the City Attorney as saying the Ordinance "is a little bit of an invasion". This is getting too dangerous. Bob McCoy, 1041 Balboa, asked Council to consider whether this ordinance is needed. He has information this Ordinance is being considered based on two instances; this is not adequate cause to adopt this Ordinance. The Ordinance does not define what amount of water is considered a waste, and it is too broad in scope as it covers the private property owner. Mel Valois, 525 Estero, objected to the Ordinance because of invasion of privacy. Hank Alberts, ACLU, stated the Ordinance reflects another case of the government ignoring the civil liberties of the individual. There is a continual erosion of civil rights in this country. He gave a list of questions to Council he wished to have answered. Bruce Risley, Piney Way, stated he agreed with Councilmember Odell's position at the last Council meeting; the matter should not proceed and the Ordinance tabled indefinitely. Ray Kaltenbach, Sicily Street, stated he asked a number of people what they thought of the Ordinance, and no one was in favor of it. He asked Council why they would adopt an Ordinance that is impossible to enforce, and stated he is disgusted with the City Council. This is not saving any water. Councilmember Lemons asked the City Attorney if she made the remark the newspaper quoted her as saying? Ms. Skousen stated MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 26, 1990 PAGE 4 she is extremely irritated the newspapers did not read the ordi- nance, and printed an article which upset everyone. She stated these types of administrative search warrants are not issued or used at night-time. The Morro Bay Municipal Code requires exten- sive notice, time for the party to answer, and court hearings before a search warrant would be issued to enter an individual's property. She read from Section 1.08 of the Morro Bay Municipal Code regarding right of entry and the process the City must fol- low. She stated this code provision exists in almost every city and county in the State of California; it has been adjudicated numerous times and found to be constitutional. With regard to whether or not it is an invasion of property, the City must weigh the invasion of privacy against the need to save water. Councilmember Lemons agreed in some part with Mr. McCoy; the Ordinance should be aimed at rental properties and not owner - occupied. In an owner -occupied home, the City can simply turn the water off. A problem arises when a tenant cannot get his landlord to fix a leak; turning off the water in that instance punishes the tenant rather than the property owner. Councilmember Wuriu stated since there have only been two instances where this specific problem arose, he wondered if the need to protect the City's interests in saving water could be accomplished under the present statutes. Councilmember Baker stated there may be instances when people are on vacation and they would be grateful for someone to repair a water leak. He suggested the Ordinance return with application only to rental property. Councilmember Odell commented if someone is out of town on vaca- tion, the City can always turn the water off at the meter. He did not believe the City should enter a person's home without invitation. He stated Mr. McCracken, at the last Council meet- ing, suggested using volunteers to repair water leaks; Coun- cilmember Odell stated that was a good idea. Mayor Sheetz stated she received numerous calls from people regarding this Ordinance. She was unhappy with the misconcep- tions generated by the media; however, she is withdrawing her support from the Ordinance due to public sentiment. MOTION: Councilmember Odell moved Ordinance No. 368 be tabled. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 26, 1990 PAGE 5 B-2 ORDINANCE NO 369 AMENDING CHAPTER 8.16 OF THE MORRO BAY MUNICIPAL CODE TO ESTABLISH A CITY-WIDE CURBSIDE RECYCLING PROGRAM (SECOND READING/ADOPTION) Councilmember Odell stepped down from consideration of this item due to a conflict of interest. Mr. Napper stated at their last meeting, Council took action to establish a curbside recycling program. Ordinance No. 369 is presented for second reading and adoption. MOTION: Councilmember Wuriu moved Ordinance No. 369 be read by title and number only. The motion was seconded by Councilmember Baker and carried with Councilmember Odell abstaining. (4-0-1) Mr. Napper read Ordinance 369 by title and number only. MOTION: Councilmember Lemons moved approval of the second read- ing and adoption of Ordinance No. 369. The motion was seconded by Councilmember Wuriu and carried with Coun- cilmember Odell abstaining. (4-0-1) Councilmember Odell resumed his seat. C. NEW BUSINESS CI-1 REPORT ON MORRO BAY HARBOR FESTIVAL AGREEMENT WITH CITY OF MORRO BAY FOR MODIFICATIONS TO CITY FINANCIAL SUPPORT OF FESTIVAL Steve Wolter outlined the history of the Harbor Festival and the City's involvement through the years. This year, in accordance with City policy to phase -out City subsidy of the Harbor Festi- val, the City is obligated to support the Festival at 1/3 the level of the 1988 Festival, or $3,232, as well as lowering the level of City in -kind services. In 1991p the Festival is to be financially independent. Harbor Festival, Inc. is requesting the City continue funding the Festival at the 1988 level ($6,500) plus $1,500 for insurance for an indeterminate period of time. They believe the City's contin- uing support is necessary for the success of the Festival. Mr. Wolter stated the Recreation and Parks Commission reviewed this request and recommended the City develop a multi -year agree- ment to continue the current City financial support ($3,232) plus an amount for insurance. Staff agrees with this recommendation and suggested allowing an additional amount up to $3,000 for Har- bor Festival, Inc. (HFI) to obtain a separate insurance policy naming the City as additional primary insured. After a four-year period it is hoped HFI will be self-supporting. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 26, 1990 PAGE 6 Councilmember Odell asked if HFI could possibly obtain insurance from a service club similar to what they did last year? Mr. Wolter stated they are looking into that as well as other options; he noted the diversity of activities at the Harbor Fes- tival such as selling alcohol, fishing tournament, vendors, etc., which causes insurability problems. Ed Biaggini, Chairman of Harbor Festival 1990, stated he is available to answer questions. He thanked Steve Wolter for his help in serving on the advisory committee. He noted HFI is in support of the staff recommendation. Councilmember Wuriu stated he is proud of what the Harbor Festi- val has become. He noted the amount of funds distributed to vol- unteer organizations last year and the fact it has increased sub- stantially over the years. He asked if HFI could control that amount to perhaps allow them to become self-supporting sooner. Mr. Biaggini stated in 1989, 80% of the net income returned to the volunteer organizations. The By -Laws require $1 per hour for volunteer time. HFI would like to continue returning 50% in order to sustain the support of the volunteers. MOTION: Councilmember Wuriu moved Council authorize the City Administrator to develop and execute a 4-year Agreement with Harbor Festival, Inc. to include monetary support to the Festival in the amount of $3,232 ($2,732 direct cash to the Harbor Festival; $500 retained by the City to offset police/fire/public works/recreation support services); and, budget supplemental funds in an amount less than $3,000 for the Harbor Festival, Inc. to acquire a separate insurance policy naming the City as an additional primary insured. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) • • _ • 1 _ _ _ • _ iy _ _ • • hp 01 00jZRIFAZID , --wir - - -- Mr. Wolter explained this ordinance was developed as a result of legislation adopted aimed at standardizing film permit procedures in local governments. In December 1989, Council directed a form different than the model ordinance be submitted to the California Film Commission (CFC) for their review. The CFC suggested the City's requirement for a film company to include the City in the film credits be eliminated, as well as the City's requirement of an "inverse condemnation" phrase indemnifying the City. Mr. Wolter stated the Ordinance contains the flexibility for the City MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 26, 1990 PAGE 7 to drop the requirement the City be included in the film credits if the company cannot comply. Also, the City Attorney has reviewed the CFC comments regarding the "inverse condemnation" phrase and agreed it can be eliminated from the Ordinance. The California Film Commission and the County Film Commission have reviewed staff's position on the above and are satisfied with the Ordinance as written. Mayor Sheetz opened the hearing to the public for comments. Bob McCoy, 1041 Balboa, questioned the "still photography" por- tion of the Ordinance and asked if he would be required to get a permit to take a picture of Morro Rock? Mayor Sheetz stated the Ordinance applies to commercial photography use only. Ed Biaggini, President of the Visitors and Conference Bureau, stated Morro Bay is known in small film circles as being the eas- iest city to work with in the State of California. He hopes the City will continue the help it has shown in the past and encour- age film-makers to come to this area. He supports the Ordinance. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Lemons moved Ordinance No. 370 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Mapper read Ordinance No. 370 by title and number only. MOTION: Councilmember Lemons moved for introduction and approval of the first reading of Ordinance No. 370. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Louise Burt reviewed the update to the City's purchasing ordi- nance to enable the City to award preferential treatment to bids offering recycled paper and goods, and to increase the limit requiring the City to bid a project from $5,000 to $10,000. She noted the State of California has raised their figure to this amount due to inflation. Councilmember Lemons asked how many types of contracts the City awards each year that would be affected by this limit increase? Ms. Burt stated the amendment will allow staff to obtain quotes from vendors for a $5,000 to $10,000 item instead going through the bidding process which requires plans and specifications, pub- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 26, 1990 PAGE 8 lic notices, and Council approval. before a project begins. This can cause a 60-day delay Councilmember Lemons asked how is the City assured of getting the best price in this situation? Ms. Burt stated staff is required to obtain at least three quotes from vendors; the quotes are doc- umented and made a part of the purchasing file. Councilmember Baker asked if this policy will apply to purchasing pickup trucks? Mr. Burt stated yes, if the item is under $10,000. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. MOTION: Councilmember Lemons moved Ordinance 371 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Napper read Ordinance No. 371 by title and number only. MOTION: Councilmember Lemons moved for introduction and approval of first reading of Ordinance No. 371. The motion was seconded by Councilmember Baker and unani- mously carried. (5-0) Ms. Burt stated a resolution has been prepared in accordance with Council's instructions at the last meeting to establish a new monthly water meter system fee and a lifeline program for low- income households. The revenue gained from this charge will be deposited in a separate account to be used for operation and maintenance only of the present system. Councilmember Lemons stated there is a discrepancy between the intention of his motion at the last meeting, and the Resolution as prepared. There is an existing minimum charge for water which is $2.14 per month which includes some water; that should be replaced by the $4 resulting in a $1.86 increase for a 5/8" meter. The amendment is directed to the Monthly Water Use Rates portion of the Resolution. The charge for 0 water use per 100 cubic feet of water would be 0; 100 cf/450; and 200 cf/89¢. Councilmember Odell proposed an added operating procedure; "undersized water meters" which would require a larger meter if installed today be obligated to pay the water meter charge equiv- alent to the meter size needed according to today's regulations. He suggested interns and/or volunteers be used to conduct a phys- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 26, 1990 PAGE 9 ical survey of existing water meter sizes and the size required by today's standards. Mayor Sheetz asked if this option is viable? Mr. Nichols stated he would have to research the matter before responding. Ms. Burt stated there are approximately 1,000 meters in the residential category; if the use is not residential, it could require larger than a 5/8" meter. Councilmember Lemons suggested the Council Sub -Committee review- ing rates be charged with looking into this option. Mayor Sheetz opened the hearing to the public for comments. Nancy Bast, 450 Fairview, asked what the requirements are for lifeline rates? Ms. Burt responded; the basic requirement is the income level of the individual or family and proof of same. Ms. Bast stated many people who are renting pay they water bills through the rent; those on low-income who pay their rent in this manner will not have the opportunity to apply for the lifeline rate. Mary Phillips, Ironwood, commented the program sounded "socialistic" and discriminatory. Everyone should pay their share; this program helps those on welfare while she tries to save water. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 36-90 including the amendment cited by Coun- cilmember Lemons. The motion was seconded by Coun- cilmember Baker. Councilmember Wuriu pointed out this action results in an increase that is less than intended by Council at their last meeting. The motion carried unanimously. (5-0) D-4 CITIZEN'S PRESENTATION FOR AMENDMENT OF EFFECTIVE DATE FOR IMPLEMENTATION OF RECENTLY INCREASED WATER AND SEWER AVAIL- ABILITY FEES (STEVEN J. BLAUT, D.C.) Mr. Napper stated in February 1990, Council approved a staff rec- ommendation to eliminate the credit in water availability fees to developers who earn their water through the retrofit program. This resulted in revised water and sewer availability fees from $4,268.75 to $6,325 and became effective 14 February 1990. Mr. Blaut is requesting Council reconsider their action and rescind the Resolution's application to those awarded water in 1989. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 26, 1990 PAGE 10 Dr. Blaut stated the question is whether those people left over from the 1989 water awards should be charged the new fee or the old fee? He stated there was no advance notification to those with pending building permits of the new fee increase. Mayor Sheetz opened the hearing to the public for comments. Farris* Dick FLisher, 446 Shasta, stated he believed because of his appli- cation for full retrofit, he should not be subject to the new fees. He was informed there was no point in continuing with his last two retrofits because he would not be given credit for them and would have to pay the increased fees. Mayor Sheetz closed the hearing to the public. Councilmember Baker stated he agreed with the increase in fees; however, he was under the impression they only applied to 1990 permits. He agreed with Dr. Blaut and Mr. Farris; those who received water awards in 1989 should not have to pay the increased rate. Councilmember Wuriu asked if it is the policy of the City to notify people when a rate change is being considered? Mr. Farrel stated it is not customary to notify individuals; newspaper pub- lication of the agenda is considered adequate notice. Councilmember Wuriu was concerned the Council would be setting a precedent if they waived fees in this instance. Mr. Napper stated Council could clarify their intention the rates be applied to 1990 users. He noted the City does not forewarn people of increases in fees; some people follow City Council actions and knew the increase was imminent. Councilmember Baker did not consider the new fees a rate increase; it was action to eliminate credit for retrofits. Mr. Napper agreed. Mr. Farrel commented perhaps those doing full retrofit projects should have been notified, since continuing to retrofit under the new fee structure is wasting their money. Councilmember Baker suggested setting a time limit for those who were awarded water to obtain their building permits under the 1989 rates. Councilmember Lemons stated he may have assumed the rates only applied to 1990 permits; however, he is reluctant to allow the 1989 applicants any longer than 01 July 1990 to pull their per- mits at the 1989 fee rate. MOTION: Councilmember Baker moved those remaining on the 1989 water award list be allowed until 30 June 1990 at the close of the business day to pull their building per - *Corrected 4-9-90 meeting. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 26, 1990 PAGE 11 mits with the 1989 fees applicable. The motion was seconded by Councilmember Wuriu. Mr. Napper suggested the motion include amending Resolution No. 18-90 to include this action. Councilmember Baker amended motion to include this action as an amendment to Resolution No. 18-90 which adopted the new fees. The amendment was accepted by Councilmember Wuriu. Councilmember Odell stated $2,000 out of the cost of construction is not a lot of money. He said Council is raising everyone's water rates and then gives this money away; he cannot support the motion. Mayor Sheetz commented Council is drowning in water issues. The City has tried every time to save water, and maybe it has become over -zealous. Perhaps the Council is being too hasty in trying to pursue water, and needs to review resolutions more closely. The motion carried with Councilmember Odell voting no. (4-1) Council recessed from 7:56 p.m. to 8:08 p.m. D-5 RESOLUTION NO. 37-90 ANNOUNCING FINDINGS AND APPROVING A CONCEPT PLAN AND A COASTAL DEVELOPMENT PERMIT FOR THE FIRST PHASE OF A SHOPPING CENTER ("PACIFIC COAST SHOPPING PLAZA") TO BE LOCATED ON PROPERTY LOCATED EAST OF STATE HIGHWAY ONE. AT THE EASTERLY TERMINUS OF MORRO BAY BOULEVARD, IN THE C- a VS-C S.4/PD ZONE, SUBJECT TO CONDITIONS. AND CERTIFICATION OF THE FINAL ENVIRONMENTAL IMPACT REPORT (CASE NOS. CUP 03- 88; CONCEPT PLAN/CDP 05-88R) Mr. Farrel stated staff has returned with a draft Resolution based on Council's direction at the last meeting to approve the Concept Plan and Coastal Development Permit, and certify the EIR for the Pacific Coast Shopping Plaza. Mayor Sheetz stated there will be no public hearing this evening as it was closed at Council's last meeting. Councilmember Wuriu stated he had one change he would like Coun- cil to consider for Special Condition #1 due to the concerns over the feathering and sloping of land outside the boundary area. He has discussed this issue with the City Attorney, and she believes she would be better able to defend the City's action in courts if an amendment is made to the condition. His proposed change on Special Condition #1 is to the last sentence before the excep- tions; after the word "exceptions" add ".... and subject to first obtaining an interpretation from the Planning Commission as to MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 26, 1990 PAGE 12 the appropriateness of such uses in the zone pursuant to Section 17.48.020 of the Municipal Code, or following an amendment of the zone pursuant to Section 17.64". He read the section of the Municipal Code which states no portion of the project shall be permitted outside the area without first obtaining the interpre- tation from the Planning Commission as to the appropriateness of such uses, or an amendment to the zoning ordinance. Mayor Sheetz stated she is concerned the zoning map and the development map do not match, and asked if the City could be liable to litigation on this issue? Ms. Skousen stated anytime the City approves a development permit of this nature, there is a possibility someone may sue. She noted anyone to whom a permit is issued must sign an agreement to hold the City harmless in any litigation over permit issuance. MOTION: Councilmember Wuriu moved for amendment to Special Con- dition #1 as outlined. Councilmember Wuriu stated his amendment is intended to place the City on firmer legal ground when dealing with the project. Councilmembers requested Councilmember Wuriu withdraw his motion until they have discussed it. Councilmember Wuriu withdrew his motion. Councilmember Lemons objected to Councilmembers bringing items up at a Council meeting without prior notification and written information. He asked if Council agrees to the amendment, is the Planning Commission's action subject to Council review if appealed either by Williams Brothers or an opponent of the pro- ject? Ms. Skousen stated yes. Councilmember Lemons asked if the Council has the right to overturn or disagree with the Planning Commission's interpretation? Ms. Skousen stated yes. Mayor Sheetz stated in the future, she would appreciate it if Councilmembers have something to propose at a meeting, they write it out and make sure everyone has a copy prior to the meeting so they can all see what is being discussed. Councilmember Odell asked if the amendment is approved and appealed, what effect does that have on the Council's requirement to approve or disapprove this project by March 28th? Ms. Skousen stated if Council adopts the Resolution this evening, they have given conceptual approval to the project, and have met the dead- line. She noted the conditions of approval can be amended at any time. MOTION: Councilmember Wuriu moved Condition #1 of the Special Conditions be amended to include in the last sentence before the exceptions and after the word "exceptions", 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 26, 1990 PAGE 13 "..., and subject to first obtaining an interpretation from the Planning Commission as to the appropriateness of such uses in the zone pursuant to Section 17.48.020 of the Municipal Code, or following an amendment of the zone pursuant to Section 17.64". The motion was sec- onded by Councilmember Lemons and unanimously carried. (5-0) Mayor Sheetz asked when the interpretation would go before the Planning Commission? Mr. Farrel stated it is scheduled for their next meeting. MOTION: Councilmember Baker moved for the adoption of Resolu- tion No. 37-90 as amended relative to Special Condition #1. The motion was seconded by Councilmember Lemons and carried with Councilmember Odell and Mayor Sheetz voting no. (3-2) D-6 CONSIDERATION OF FIRST QUARTER WATER ALLOCATION AWARDS FOR 1990, AND STATUS REPORT REGARDING WATER BASIN AND CITY WELL LEVELS Mr. Nichols reviewed the condition of the City's water supplies including well production, rainfall, well levels, water quality, and well reliability, and illustrated these items through charts. He stated water production is approximately 4% above last year at this time. Councilmember Odell asked what the population figures are based on? Mr. Nichols stated annual estimates from the State Depart- ment of Finance. Councilmember Lemons asked if the City has a permit for 1723.5 acre feet of water? Mr. Nichols stated the City has applied for one, but the State has not taken action on the application. Mr. Nichols stated since 01 July 1989, the City has received 7'k" of rain, 50% of the average. This will not provide adequate recharge of the acquifers and will cause significant problems in City wells as far as drawdown and water quality is concerned. If no additional rainfall occurs, this will be the fourth consecu- tive less -than -average rainfall winter. Councilmember Lemons asked if information is available to compare the rainfall received in the City and recorded at the Fire Department, with the rain that falls in the Morro and Chorro Val- leys? He suggested the rainfall which falls in the City of Morro Bay may not be representative of the effect on the City's water supply. Mr. Nichols stated that has not been done. Mr. Nichols stated the average water levels in Morro Creek are approximately 19 feet lower than this time last year, and the MINUTES - MORRO REGULAR MEETING PAGE 14 BAY CITY COUNCIL - MARCH 26, 1990 Chorro Creek wells are 2.6 feet lower. the summer season in a dry condition. The City is heading into Councilmember Lemons asked if there is more intensive agricul- tural use? Mr. Nichols stated not enough to have a long term adverse affect on the well levels; however, the City is competing with other uses. He said Chorro Creek looks a little better than Morro because it recharges quicker, not due to rainfall but from the California Mens Colony wastewater discharge. Mr. Nichols stated water quality is what it usually is in the Chorro Basin, but the Morro Basin is experiencing problems and it will get worse. The water meets health standards, but does not taste or smell good. Mr. Nichols stated it may be necessary to increase water conser- vation efforts in July, and formulate a contingency plan for emergency water supplies. He will report back in July. Mr. Farrel reported on the First Quarter Water Awards for 1990. He stated although public understanding and perception of the water situation contends building should not continue during a drought, the Planning Department believes the retrofit program works and saves water. Continuing with a retrofit -only program will not increase the water demand. The City may want to con- tinue a retrofit program where the City retains all savings, thereby conserving additional water. Mayor Sheetz stated there is considerable construction going on in Morro Bay due to demolishing old homes and building new ones. She asked if they are required to have the low -flush toilets in them? Mr. Farrel stated yes. Mayor Sheetz opened the hearing to the public for comment. Ray Kaltenbach, Sicily Street, stated if the retrofit program is working so well, where is the surplus water? He cannot under- stand the City's conservation efforts while continuing to allow building. Retrofit does not work. Bruce Risley, Piney Way, complimented Mr. Nichols on his clear- cut interpretation on the truth of the situation. He said it is difficult to understand how three people on the Council can vote for a regional shopping center when faced with this water report. Council needs to face the truth. Ann Freeman, Cabrillo Place, commented on the additional conser- vation measures that may be required and noted the number of water uses Council had approved recently. Mary Phillips, Ironwood, asked if Council is aware they are going to have to find water for this population? She does not believe MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 26, 1990 PAGE 15 Whale Rock will be of any help in light of continued building; they will need the water for themselves. The whole State of California has a water problem, and staff has told Council sev- eral times what the situation is. Dan Reddell asked if water usage in Morro Bay is at an all-time low? Mr. Nichols said it is not at an all-time low; the lowest was in 1977. The total water demand for the community is at its lowest since 1983. Mr. Reddell stated retrofit works and has been in effect since 1983. It saves enough for the City to have more water than it would have otherwise. It is in the interest of the community for the building program to continue. Katherine Walling, Piney Way, stated history repeats itself. She discussed a family range in the area of Nacimiento Lake, and the Sacramento and Salinas Rivers when the drought was so bad, ani- mals died. She sees it coming again. Brian Davidson stated if no building is allowed, the City will be in a worse situation, since retrofit saves water. The City needs to find new sources of water. Mayor Sheetz closed the hearing to the public. Councilmember Odell stated not all water savings is from retrofit and pipeline replacement. People fix leaky fixtures in their homes; flow restrictors are installed voluntarily; there are an increasing number of vacation homes in Morro Bay; conversions to more efficient irrigation systems; and personal habits. He said personal habits can negate any technological approach the City uses. Councilmember Wuriu believes the retrofit program has saved water in the past and will help in the future. It is a model for many other parts of the country because it does work. However, in view of Mr. Nichols' report this evening, he does not see how the City can grant any water equivalencies for the first quarter. Councilmember Baker noted even though Council approved the Williams Brothers project, it will be at least two years before it is built, and hopefully it will rain between now and then. He believes the City's water conservation limitations have had some- thing to do with this year's water use. He commented on the num- ber of units which have been approved, but not built yet; i.e., Bayshore Village, permits from 1989, the low cost senior housing project. He believes retrofitting does save water, but he will have to vote in favor of deferring water awards until June 1990. Mayor Sheetz stated she has always supported the retrofit pro- gram; however, Mr. Nichols' report was not optimistic. She noted Morro Bay is not alone in the drought situation; it is Statewide. Mayor Sheetz stated it would not be prudent for Council to award MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 26, 1990 PAGE 16 additional water allocations for building will still occur, because ished and new ones built. building at this time. Some older homes are being demol- MOTION: Councilmember Wuriu moved Council defer any release of water allocations until the June 25th Council meeting. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) I•ADOPTION OF • • OPERATING •• 1 FOR 1990 BUILDING PROGRAM Mr. Napper stated even though Council deferred awarding water allocations until June, some policy questions exist concerning whether or not to allow affordable housing priority on the water waiting list, and how to treat commercial conversions to residen- tial under Measure F. Mr. Farrel stated when the Coastal Commission lifted the building moratorium several years ago, their permit limited new develop- ment to the available capacity of public works facilities, and gave priority to certain kinds of uses; residential use was last. They also indicated low and moderate incoming housing would have a higher rating than market rate units. Mr. Farrel stated as a result of the lottery, there is a substan- tial waiting list for both single and multiple family projects. While the City has awarded priority status to the People's Self - Help Housing low-income housing project, no applications have been received for low-income single family residential use. A problem will arise if multi -family market rate projects are con- tinually surpassed on the waiting list by affordable housing pro- jects. Recently Council turned down a project for priority sta- tus that designated some of the units as low-cost housing. Another issue has been raised by a request to convert the exist- ing Alta Morro Motel to a multi -family project; they will demol- ish the 18-unit motel and replace it with 14 multiple -family res- idential units. They have requested they be allowed priority status since they have sufficient water to re -build. This would probably not be acceptable to those on the waiting list. In the Planning Commission review of this matter, they recom- mended only 50% of the allocations be given to low -moderate income housing requests; however, they were concerned how the program would be administered. Mayor Sheetz asked what the criteria is for low-income housing? Mr. Farrel stated the City uses the Federal Government and State Housing and Community Development standards. Mayor Sheetz com- mented on the housing costs in Morro Bay which are hardly affordable. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 26, 1990 PAGE 17 Councilmember Wuriu asked how priority for low-income housing would be administered? Mr. Farrel stated the City does not have a lot of experience in administering these type of restrictions. In the past, the City has required the applicant or developer to sign a deed restriction to meet the intent of the State law to place limitations on the re -sale value. Councilmember Baker asked if Council gave priority status to the Alta Morro, would it be taking away from some applicants already in line for water? Mr. Farrel responded by saying it would take away under the allowed limits under Measure F; people currently on the waiting list would complain. Mayor Sheetz opened the hearing to the public. Ray Kaltenbach, Sicily Street, stated there is no such thing as affordable housing in Morro Bay. Mr. Farrel commented there are a number of people on the waiting list who already own lots in Morro Bay and are not facing devel- oper's costs to purchase a home and lot. Mary Phillips, Ironwood, stated low-cost housing is something Council ruined when it allowed variance construction on small lots; they should only have allowed small houses on small lots. Barbara Sanders, real estate agent, stated the California Associ- ation of Realtors has listed some things that can be done for affordable housing such as giving breaks to people on permit fees and exemptions on water. Housing costs are going to continue to rise forcing multiple families to live in a house. Jeanette Duncan, People's Self -Help Housing, said the City needs to provide an incentive for developers to build low-cost housing or it will not happen. She noted the PSHH project in Morro Bay is not just HUD funded, but received money from four different sources. She noted low-cost housing sales are more difficult; unless a project is below $100,000, it is difficult to get funding. Mayor Sheetz asked if PSHH will be able to build the second phase of their project? Ms. Duncan stated if they get water from the City. Bob Arnet, representing the Alta Morro project, noted they looked into affordable housing as an alternative, but it was difficult to bring the costs into the affordable category. Secondly, they attempted to develop a project which will not require additional water equivalencies; the project proposed will use less water than the current motel use. They do not wish to displace anyone MINUTES - MORRO BAY CITY COUNCIL • REGULAR MEETING - MARCH 26, 1990 PAGE 18 on the waiting list. He stated of 400 applicants, only three have existing water; they are the first on the list with water. Mayor Sheetz closed the hearing to the public. Councilmember Odell stated the Alta Morro project would take a visitor -serving commercial use and convert it to a residential use; how would the LUP treat this since the residential use has less priority than the visitor commercial use. Mr. Farrel stated it still complies with the zoning ordinance. Mayor Sheetz asked if the question is more the effect Measure F's growth management would have on allowing priority, than how much water is used? Mr. Farrel stated yes. Mayor Sheetz stated there seems to be problem in Pismo Beach con- cerning "line jumping", and asked the City Attorney if allowing priority in this case is advisable. Ms. Skousen stated if Coun- cil determines certain projects are entitled to priority, find- ings could be established to protect the City. Mayor Sheetz stated Council can continue this item as no urgency exists since Council did not award the first quarter's allocation of water. MOTION: Mayor Sheetz moved this item be continued to a June 1990 Agenda. The motion was seconded by Councilmember Baker. Councilmember Lemons stated the information on the subject is before Council now, and is not going away. He suggested placing the matter on the agenda for the next meeting. SUBSTITUTE Councilmember Lemons moved this item be continued to MOTION: the next meeting. The motion was seconded by Coun- cilmember Odell and unanimously carried. (5-0) None F. MOTION: Councilmember Odell moved the meeting be adjourned. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) The meeting adjourned at 10:10 p.m. Recorded by: /6/, ARDITH DAVIS City Clerk Ll 1� / .dfovx,�- 1,0141e • v A4440 6 u AGENDA - JOINT MEETING CITY COUNCIL - RECREATION AND PARKS COMMISSION CITY OF MORRO BAY CALL TO ORDER ROLL CALL PUBLIC COMMENTS March 20, 1990 7:00 p.m. COMM. CTR., STUDIO 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 three (3) minutes. A. PUBLIC HEARINGS AND APPEARANCES A-1 REVIEW OF STATE LICENSURE REQUIREMENTS FOR PARTNERS AFTERSCHOOL/SUMMER DAY CAMP CHILDCARE PROGRAMS AND DETERMINATION OF PROGRAM COST RECOVERY RATIO A-2 REVIEW OF SITE DEVELOPMENT REPORT (SDR) FOR BIKEWAY DEVELOPMENT BETWEEN MAIN STREET AND HIGHWAY 41 ON PACIFIC GAS AND ELECTRIC COMPANY POWER PLANT PROPERTY A-3 REVIEW OF 1990-91 F.Y. WORK PROGRAM B. UNFINISHED BUSINESS B-1 DISCUSSION OF NEED FOR JOINT POWERS AGREEMENT WITH SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT FOR SCHOOL FACILITY USE. (CONTINUED FROM JOINT MEETING OF 29 MARCH 1989.) C. NEW BUSINESS C-1 STATUS REPORT ON PARK DEVELOPMENT PROJECTS. C-2 REVIEW OF PARK AND RECREATION FACILITIES PLAN, 1985-1990. D. WRITTEN COMMUNICATIONS RIORID 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. 0 MINUTES - JOINT MEETING CITY COUNCIL - RECREATION AND PARKS COMMISSION MARCH 20, 1990 COMMUNITY CENTER - 7:00 P.M. ROLL CALL PRESENT: REC. & PARKS COMMISSION PRESENT: ABSENT: STAFF Rose Marie John Baker Jeff Odell John Lemons Tom Wuriu Sheetz Mayor Councilmember Councilmember Councilmember Councilmember Cheryl Halterman Jim Hartzell Geoff Moreland Sandra Young Bancroft Rohan Gary Gillman Gary Napper Steve Wolter Elane Novak Chairperson Vice Chair Commissioner Commissioner Commissioner Commissioner City Administrator Dir. Rec. & Parks Deputy City Clerk The meeting was called to order at 7:00 a.m. by Mayor Sheetz. PUBLIC COMMENT Steve Wolter introduced members of his staff to familiarize City Council with names and faces. Staff members presented were Andrea Lueker, Debbie DeMers, Elaine Taunt and Joe Woods. Staff members were welcomed by Mayor Sheetz. A. PUBLIC HEARINGS AND APPEARANCES A-1 REVIEW OF STATE LI Steve Wolter, Recreation and Parks Director gave a brief history of the program, explaining the program was originally started in 1980. He discussed some of the changes in the program through the years as the needs in the City changed. The current program hours are 2:30 - 5:30 M-F during the school year and 7:30 - 5:30 M-F during the summer months. MINUTES - JOINT MEE*G • CITY COUNCIL - REC. AND PARKS COMM. - MARCH 20, 1990 PAGE 2 The latest development in this program is that it would need state licensing for the school term session only. The program would be a licensed Day Care Center. All employees hired to work in the program would need physical exam, TB testing and fingerprinting before hire. With these added costs the administration of the program would be considerably higher, plus the Department would have to hire a program director who has at least 15 units of early childhood education. This individual would receive about $1.64 an hour more than is currently paid (to approximately $8.00/hr). Mr. Wolter explained that currently contract employees are not given a physical examination. They employ 20-25 people for this program throughout the year so with the cost of $100 per person for physical exam, the Department would need an additional $2,500 per year for health care testing, $3,800 increase for salaries. Administrative costs to handle the additional paperwork would be approximately $3,450. Under current policy the City would subsidize the administrative costs 100% and 50% of the other increases. In addition Mr. Wolter said it currently costs about $28,000 to provide the winter program and about $27,500 to provide the summer program. Mr. Wolter indicated a survey had been sent out to parents to see what they were willing to pay for the Partners Program. He indicated the response was very poor but of the ones received parents seemed to be willing to pay about $25 per week per child. Mr. Wolter indicated they had sent out 400 questionnaires and received about 19% of them back. Mr. Wolter indicated there were several things that could be done to avoid licensing the program, any of which would be a hardship on the parents: 1. Have a recreation program that was just drop -in, in that children could come and go and Recreation and Parks would not be responsible for them; or 2. Reduce program hours to 12 hours per week; or 3. Reduce the program to just 12 weeks per year. City Council discussed the information received. Councilmembers wondered why no parents had come to the public hearing to discuss their needs as parents of the children who would be involved in the program. It was suggested by a member of the Recreation and Parks Commission that the very parents they were trying to reach might find it most difficult to attend a public hearing or be reached for comment on the program. MINUTES - JOINT MEEAG • CITY COUNCIL - REC. AND PARKS COMM. - MARCH 20, 1990 PAGE 3 Councilmember Baker raised the question as to why the City would provide this service at all if it was not revenue raising. Mr. Wolter said it is not cost-effective for a private party to offer after school care. Historically, it was noted that this service has been offered by the City since 1980, originally free of charge. It was also discussed how best to reach the parents who use this program. Notes sent home with the child generally never reach the parent. It was suggested that the school be contacted for addresses of the children in this age group and letters be sent to the parents. Lisa Huet, a member of the audience, suggested that since the children in the program were already in the Recreation and Parks computer the Department could send letters to at least these parents. In the following discussion, Councilmember Odell asked if the churches and service clubs in the area had been contacted to see if they were interested in funding the program. They had not been, but the general consensus seemed to be that this is a service to the community that the Recreation and Parks Commission wants to see continued; it is only a matter of how and when to reach the parents of the children involved and how best to administer the program. Twenty-five dollars per week per child seemed to be a satisfactory figure for most people; how to assist the parents who really could not afford to pay for their children's participation should be considered. It was suggested that parents might come into the Recreation and Parks Department and file a petition for waiver of fees. Mr. Napper suggested the best way to get the information out that the program will be licensed is to agendize the action for a City Council meeting. MOTION: Councilmember Wuriu moved that Staff go forward with licensing Partners for the school year only. The motion was seconded by Councilmember Odell. The motion carried with Councilmember Baker voting no. (4-1) Councilmember Baker felt licensing the program with the State would make the rules too onerous. Councilmember Lemons wondered why the program couldn't be licensed all year. Mr. Wolter said it was cost prohibitive because they employ 3-6 employees during the school year and up to 10 or 20 in the summer. Personnel turnover is also very high. Partners will still be administered from the same school facility. The City does not have to pay the School District as the City and School District have a five year agreement, the trade off being lease of the City street in front of MINUTES - JOINT MEEAG CITY COUNCIL - REC. AND PAGE 4 Morro Elementary building. PARKS COMM. - MARCH 20, 1990 School in return for free use of the MOTION: Councilmember Lemons moved the City begin 100% cost recovery of Partner's direct costs (approximately $67) for being licensed beginning the school year 1990. The motion was seconded by Councilmember Wuriu. The motion carried with Councilmember Baker voting no. (4-1) It was suggested by Commissioner Moreland that they treat the program as a brand new program since it would be so changed and set rates as high as possible, treating individual cases as they came along for exemption or special funding needs. In the discussion that followed the general feeling was this was basically a good idea, but they did not want to kill the program by raising rates too high. The low range for fees suggested was $19 with a high of $107. After further discussion the general consensus seemed to be that a 100% rather than 50% cost recovery rate would be more than acceptable to the City and yet the program would still offer a fair fee structure for parents. Up to this date the City has been subsidizing the program $18,900 per year. A-2 REVIEW OF SITE DEVELOPMENT REPORT (SDR) FOR BIKEWAY DEVELOPMENT BETWEEN MAIN STREET AND HIGHWAY 41 ON PACIFIC GAS AND ELECTRIC COMPANY POWER PLANT PROPERTY Steve Wolter introduced this item for review and discussion by Commissioners and City Council. He stated the City could have applied for State Park Grant funds but had not as the master plan for bikeways did not exist. Mayor Sheetz indicated the San Luis Obispo Area Coordinating Council just reserved 2% of their TDA funds to install bikepaths in the County. During the discussion the general feeling was that $400,000 was a lot of money for a bike path; serious bike riders do not like paths of this sort but would rather ride on well traveled roads. The safety factor was brought up as far as children were concerned and this pathway linking North Morro Bay to the City area will be used by children riding their bikes from one place to another. Council and Commission consensus was to go ahead and work on the bikepath plan, and consider it for funding options and grants when the SDR is complete. MINUTES - JOINT MEAG • CITY COUNCIL - REC. AND PARKS COMM. - MARCH 20, 1990 PAGE 5 A-3 REVIEW OF 1990-91 F.Y. WORK PROGRAM The 1990-91 Work Program was presented to Council as approved by the Recreation and Parks Commission at their January 18, 1990 meeting. This book assists in identifying projects for the upcoming year. Mr. Wolter stated he will go through the book many times during the budget process, identifying projects and their needs, and by the process of elimination choose which projects will be worked on next year. Some Recreation and Parks projects for the upcoming year were discussed. Publicity for the programs was discussed, particularly trying to reach new people in the community. Also, once again it was suggested that Recreation and Parks sponsor a marathon. Steve Wolter said the painting of the Vets Hall by the California Conservation Corps is a possibility. Councilmember Odell said he could probably get the paint donated. Reroofing is needed and also additional lighting for the outside of the building. City Council received the report and commended the Commission and Steve Wolter on a job well done. B. UNFINISHED BUSINESS B-1 DISCUSSION OF NEED FOR JOINT POWERS AGREEMENT WITH SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT FOR SCHOOL Staff, City Council and the Commission discussed some of the problems encountered with the School District and rental fees for use of their facilities. Mr. Wolter stated that often the high school will cancel the use of a facility at the last moment, and the District would like to charge even higher fees. The rate now is $9/hr. for the gymnasium and if the City had to pay more, activities such as youth basketball would be even more expensive to offer. It was decided that Steve Wolter and Gary Napper would contact and meet with the Superintendent of Schools to try and reach some joint use and maintenance agreement. The Commission and Council were in favor of a joint powers agreement and concurred that Mr. Wolter and Mr. Napper should meet with the Superintendent and see what arrangements could be made. MINUTES - JOINT MEE*G • CITY COUNCIL - REC. AND PARKS COMM. - MARCH 20, 1990 PAGE 6 C. NEW BUSINESS C-1 STATUS REPORT ON PARK DEVELOPMENT PROJECTS Steve Wolter indicated that many improvements are going on at the City Parks. He indicated Del Mar Park had gotten new tables and benches, the soil had been invigorated, walks etc. were being improved. When questioned about the legality of horses in the park or on public streets, he stated horses were not allowed in the parks and he would check about City streets. Mr. Wolter said the Commission has taken responsibility for enhancing the Veteran's Memorial in "City" Park with benches and lights. He indicated they will be working with Morro Bay Beautiful and other organizations to accomplish this task without cost to the City. Mr. Wolter said bids will be received on Centennial Parkway and restroom improvements in the early part of April 1990. He said the California Conservation Corps will be assisting in this project. Mr. Wolter also reviewed the sidewalk, observation platform, landscaping and park improvements scheduled for installation at Tidelands Park, probably bid in the Fall of 1990. City Council received the report for file, and commended Mr. Wolter for its thoroughness. C-2 REVIEW OF PARK AND RECREATION FACILITIES NEW LINE PLAN, 1985-1990 Mr. Wolter noted the expiration of their 5 year capital projects plan. Since they are in the last year of the plan it will need updating. While not all items were completed, the City has made significant strides in working on this plan. One of the significant plans being worked on is the completion and acceptance of Bayshore Bluffs Park. City Council accepted this report for file. D. WRITTEN COMMUNICATIONS NONE E. REPORTS NONE MINUTES - JOINT MEE4G • CITY COUNCIL - REC. AND PARKS COMM. - MARCH 20, 1990 PAGE 7 F. ADJOURNMENT MOTION: Mayor Sheetz moved the meeting adjourn. It was seconded by Councilmember Baker and unanimously carried. (5-0) The meeting adjourned at 8:50 p.m. Recorded by: , Elane Novak Deputy City Clerk E City Of Morro OBay 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 14, 1990 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF 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 Hearings 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. D-4 FINAL ENVIRONMENTAL IMPACT REPORT AND PROJECT APPLICATION REGARDING A PROPOSED DEVELOPMENT OF COMMERCIAL AND VISITOR -SERVING FACILITIES (PACIFIC COAST SHOPPING PLAZA) AS A PHASED PROJECT ON 17.3 ACRES EAST OF HIGHWAY 1 AND MORRO BAY BLVD. (CUP 03-88/CDP 05-88R; WILLIAMS BROTHERS MARKETS, INC., APPLICANT) �.IbxfflIra a;��_V 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 14, 1990 VETERANS MEMORIAL HALL - 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 Judy Skousen Ardith Davis William Farrel Nick Nichols None City Administrator City Attorney City Clerk Community Dev. Dir. Public Works Dir. D. PUBLIC HEARINGS, REPORTS, AND APPEARANCES D-4 FINAL ENVIRONMENTAL IMPACT REPORT AND PROJECT APPLICATION REGARDING A PROPOSED DEVELOPMENT OF COMMERCIAL AND VISITOR - SERVING FACILITIES (PACIFIC COAST SHOPPING PLAZA) AS A PHASED PROJECT ON 17.3 ACRES EAST OF HIGHWAY 1 AND MORRO BAY BLVD. (CUP 03-88/CDP 05-88R; WILLIAMS BROTHERS MARKETS, INC., APPLICANT) Mr. Farrel stated the Planning Commission at their meeting of March 5, 1990, suggested a modification to one condition. They indicated they had not had sufficient time to consider Condition #1 which was presented the evening of the February 20, 1990 meet- ing, and are concerned the wording of the condition will not allow the applicant to round and feather the cut slopes around and outside the zoning boundaries. While staff supports this objective, Mr. Farrel noted the question is whether non-agricul- tural related grading is allowed at all in the agriculturally zoned portions of the remaining property. The options to the applicant are: 1) redesign the project or grading plan to fit within the commercially zoned area; 2) request a Planning Commis- sion interpretation of uses allowable in the agricultural zone; or 3) prepare a zoning map amendment of the location of the com- mercial zoning district boundary (net 30 acres). Mr. Farrel also reviewed other requests by the applicant and the Air Pollution Control Board to modify some of the conditions and MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - MARCH 14, 1990 PAGE 2 staff's recommendations. He requested Council consider the application and provide guidance to staff on how to proceed. Councilmember Odell asked what staff's position is on Condition #1? Mr. Farrel stated the agricultural district laws do not per- mit non-agricultural uses; it is inadvisable to place the City in a position of not complying with the zoning ordinance by allowing the cut slopes outside the district boundary. Councilmember Odell asked at what point the boundary lines of the project are established? Mr. Farrel stated he believes the boundaries have been established for the 34k acres, as submitted by the applicant and approved by the Coastal Commission. Councilmember Odell asked how that applies to the first phase of the project? Mr. Farrel stated so long as the project is con- tained within the zoned areas of the project, some flexibility could be allowed. Councilmember Wuriu asked if there is room for a different of opinion on the finality of the boundary map; the map filed had a qualifying notion indicating it was conceptual? Mr. Farrel responded staff believes the boundary line is a defi- nite line; the issue it may be elastic or fuzzy was never raised before by the applicants. Councilmember Lemons asked if the City has enough information from the zoning map to run a transverse line? Mr. Farrel responded no; Councilmember Lemons then ques- tioned how one can know for certain where the zoning line is. Mayor Sheetz re -opened the hearing to the public. Ben Luna, chairman of the Voter's Initiative Committee, stated he believes there is an alternate solution to the project: reduce the commercial zoned area from 30 to 13 acres. This will still allow a new shopping center the same size of the Arroyo Grande K- Mart center. He stated in a short period of 10 days with 100 circulators, their Committee was able to collect 1200 signatures in favor of this remaining proposal. He stated a significant majority of people are opposed to the current proposal, and urged Council to disapprove the project as proposed and have the devel- oper resubmit it. He also submitted to the City Clerk 140 pages of the Initiative for filing. Mary Phillips, Ironwood, stated she is concerned about land being moved; there are landslide areas in Morro Bay. She asked if there would be two Williams Brothers stores in Morro Bay, or would new competition come in? She was also concerned about where the water would come from? Michael Swettenam, 485 Shasta, stated he spent a considerable amount of time becoming acquainted with this subject, and deter- mined it is difficult to arrive at a clear-cut factual decision. He said the area where the project is to be built and its sensi- MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - MARCH 14, 1990 PAGE 3 tivity to Morro Creek is in question. It is against the charac- ter of Morro Bay. Val Sherman, Morro Bay, referred to a LOS Angeles Times adver- tisement inviting L.A. people to invade San Luis Obispo County. She also noted Williams Brothers' objection to a competitive shopping center development in Los Osos. Tom Courtney, applicant representative, stated he and Bruce Elster are available to answer questions Council may have. Sue Melvin, 2998 Elm, stated she has spent $40,000 at Williams Brothers in ten years time; but, she believes the impacts of this project will be felt for a long time. She urged Council to send the project back to be revised; it is too big, too much. Katherine Walling, Piney Way, questioned a staff statement on Willow Camp Creek that it be restored 30 feet, not 50 feet. Mr. Farrel stated a portion of the creek would be restored west of Ocean View Blvd. Staff recommends it not be less than 50 feet; the applicant requested only 30 feet. Ms. Walling believes it needs to be 50 feet. She said people to do not think Willow Camp Creek and the drainage have any bearing on the life of the estu- ary, but it is part of this area's drainage system. Les Horm, 442 Sicily, does not believe the project should be scaled down. He said there is no information to convince him there is something wrong with this project, and he does not believe people are 10 to 1 against the project; a hysterical bandwagon is occurring. Thomas Walters, 385 Arbutus, said 8 or 9 people out of 10 believe the project should be eliminated. Most people want a new market, but not the kind of development this will evolve into. A more limited market is needed. Linda Merrill, 391 Sequoia, agreed a lot of people do not want the project at all. She commented the creek is not as shown on the map; parking is to accommodate 1,000 cars and asked how many acres that will involve? Mr. Farrel stated 6 to 8 acres. Ms. Merrill noted this asphalt will require 163 truck loads of asphalt and will cover what is now green grass. Marilyn Puzo, Kings Avenue, stated the number of signatures obtained against the project is impressive; she believes if this item were put to the vote of the people today, the results would be quite a bit different than last time. Howard Gaines, 441 Orcas, believes if an election were held the result would be 60/40 against the project. He stated Williams Brothers will receive the benefit of City resources without pay- MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - MARCH 14, 1990 PAGE 4 ing any money for it; the area will be a separate town; the City will be getting a regional shopping center with all its problems. Mr. Van Heuver, Morro Bay, stated at the last meeting the appli- cant mentioned installing a sewage treatment plant for the pro- ject; where will the plant be located? Will it require more earthmoving? Jim Curlet stated he lives in Cayucos, but owns a business in Morro Bay. He stated the traffic, air quality, environmental impacts, water and sewer issues have not been dealt with. They will have irreversible affects on people's quality of life. He requested Council send the proposal back with instructions to reduce the size of it. Bonnie Willow Kelly, 500 Atascadero Road, stated she is a Native American concerned with the land. She read a poem composed in 1854 which she previously sent to the Planning Commission. Ray Kaltenbach, 485 Sicily, stated it seems to be the trend of coastal cities to keep building with a disregard to the amount of water that is available. The people are tired of conserving water while building continues. He is against the project; peo- ple want another market, but Williams Brothers needs competition. Margaret Dooley stated she is concerned about the earth; this project will take good, green grass and cover it with asphalt. The City will regret the project 10-12 years from now. Tom Courtney stated the Planning Commission, after many hearings and clarification of distorted items, voted in favor of the pro- ject establishing many conditions. He presented Council with 2,370 signatures of people who support the project noting they are Morro Bay citizens and people who shop at Williams Brothers. He clarified the difference in the zoning map and location of boundary lines stating in order for a project to be site sensi- tive within the confines of topography, they developed a concept plan to put the project in the best place. He stated all draw- ings clearly indicate they were conceptual drawings. It is not possible to say "here is the line and we intend to live within it"; the visual impact needs to be minimized if the project is to retain a small-town character. He noted how they intend to miti- gate items to provide for a better visual impact and said that is what a concept statement is all about. A precise plan will show exactly where the zoning map line is. Councilmember Odell questioned if grease and sediment traps are needed in the parking lot? Mr. Courtney stated yes, to comply with health and safety requirements. Councilmember Wuriu asked Mr. Courtney if his people can live with Condition #1 as revised by the Planning Commission? Mr. MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - MARCH 14, 1990 PAGE 5 Courtney stated yes, they believe it addresses the issue. He distributed illustrations to Council to show the type of cuts they would have to make in the land to accommodate the boundary line. If feathering is disallowed outside the conceptual bound- ary line, it will defeat the objective of lower retaining walls. Councilmember Odell stated the Municipal Code requires specific findings by the Planning Commission to allow area site distur- bance outside this commercial area. He asked if all cuts in the area site disturbance were declared to be in the project bound- ary, would the project have to be redesigned? Mr. Courtney stated yes. Councilmember Odell stated due to the staff recom- mendation that grading, cuts and feathering of the land not occur outside the project boundary lines, would it be possible to install retaining walls? Mr. Courtney stated the walls would have to be 20 to 25 feet in height; some feathering would still have to occur. Councilmember Odell stated the law requires any use of non -pri- vate agricultural lands shall have findings established by the Planning Commission. He asked if the cut slopes could be consid- ered as part of the project area boundary and part of the site area disturbance and therefore included in the zoning and net acreage? Bruce Elster stated they are looking at the area out- side of the commercial zone; the land use will not be changed in the area outside of the zone. There is grass there now and there will be grass there when they are finished. Councilmember Odell stated two permits are being considered; a Conditional Use Permit and a Coastal Development Permit. They are both related to a designated area of given acreage; and any discussion about the project is the boundary around the area that falls under the permit. Mike Stoker, 1001 So. Broadway, Santa Maria and attorney for Williams Brothers, stated the issue is whether this cut sloping and feathering is a commercial use. He said there is not one case in the State of California that says what this developer intends to do is a commercial activity. California zoning law gives people a great deal of discretion; since it is not specifi- cally spelled out in the law, it is not disallowed. Courts look at the intent of the ordinance. Councilmember Odell illustrated a drawing on the chalk board and asked what is the difference between building a retaining wall and grading a slope? Mr. Stoker said it is Council's discretion to decide; they can make an interpretation they believe is reasonable. Councilmember Baker asked the City Attorney if she agrees? Ms. Skousen stated if an ambiguity exists in the zoning ordinance as to what uses are allowed, that ambiguity must be determined by MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - MARCH 14, 1990 PAGE 6 the Planning Commission; the first interpretation is not allowed to Council by Code. Ms. Skousen stated she would feel uncomfort- able arguing in court this project's grading is to support an agricultural purpose. A use is that which is allowed in the var- ious zones; use means the purpose for which land is arranged. There is no way to argue the purpose of arranging this land is for agricultural purposes. The only purpose to cut a slope in this area is to support the commercial use. Mr. Elster referred to other comments made this evening noting the sewerage treatment plant suggestion was made by Councilmember Odell; the developer has favorably considered it a possibility but no details have been prepared. He said with regard to the grease traps they are installing, there is a lot of oil and sedi- mentation that gets into Willow Camp Creek currently. The park- ing area is approximately 5 acres; and the project will con- tribute to the revenue tax base of Morro Bay. He explained Williams Brothers' objection to the Los Osos development had to do with the proposed change in the General Plan; the newspaper article was not clear. There were questions regarding the roads in the project. Mr. Elster stated the road behind the shopping center is not for pub- lic use as it is designed for an unloading area; it will remain open as a fire lane. With regard to the Bolton Street access, Mr. Elster stated Council eliminated the connection of this pro- ject with Bolton from reference in the City's Circulation Ele- ment. There is no zoning or General Plan provisions in place to allow it. Councilmember Baker stated he is generally in favor of the pro- ject. Because the City Attorney is concerned about grading out- side the boundary line, he asked if the project could be moved from the north and south so the hillside grading will take place within the commercially zoned area? Mr. Elster stated higher retaining walls could be installed, but it becomes very costly and increases the insurance liability. They have attempted to minimize problems, but cannot get rid of all problems. Councilmember Lemons asked if Council is not allowed to act on the Planning Commission recommendation because they did not for- ward findings, and why the Planning Commission was not informed they needed to make findings? Ms. Skousen stated when the Plan- ning Commission took action, she was not at the meeting; she does not believe the matter was properly before the Planning commis- sion because it was not on the agenda. She said the proper way to get an interpretation is to have the applicant request one from the Planning Commission. Councilmember Lemons asked how long it would take to get an interpretation? Mr. Farrel stated Council can take action on the MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - MARCH 14, 1990 PAGE 7 permits without the interpretation; the applicant can request that from the Planning Commission at any time. Mayor Sheetz questioned how this item came before the Planning Commission? Ms. Skousen stated it was not on the agenda; the Planning Commission determined the subject arose after the publi- cation of the agenda and voted to consider the matter by adding it to the agenda. Mayor Sheetz asked if the request was made to remedy the fact the boundaries do not match? Mr. Farrel stated yes; however, the Planning Commission modification does not modify the fact about major grading, just the feathering. Councilmember Odell asked what affect the initiative being circu- lated would have on Mr. Williams' development plans? Mr. Stoker said he had not considered that yet, but stated development plan processes are not halted because of the circulation of initiatives. Mayor Sheetz closed the hearing to the public. Council recessed from 8:16 p.m. to 8:33 p.m. Mayor Sheetz asked Mr. Farrel what has to occur between now and groundbreaking if Council approves the project? Mr. Farrel explained the process. Mayor Sheetz asked if the applicant has a vested tract map? Mr. Farrel stated there is no subdivision before Council at this time. He said if Council denies the pro- ject, the applicant can come back at any time with a revised plan. Mayor Sheetz asked does the project goes to the Coastal Commission again? Mr. Farrel stated only on appeal; he believes the only area that would be appealable to the Coastal Commission is the Willow Camp Creek area. Councilmember Odell asked at what point the project boundaries are established? Mr. Farrel stated the boundaries should be staked before the first grading permit is issued. Councilmember Lemons asked if the Air Pollution Control District has authority over something Council might approve? Mr. Farrel stated no; it is the City's decision whether or not to follow their advisory recommendations. Larry Red, Associate Planner, reviewed a letter from the County Environmental Coordinator's Office dated 21 February 1990 con- cerning the borrow site which could create a potentially signifi- cant visual impact. Councilmember Lemons stated Council was also in receipt of a let- ter from Mr. DeCarli of the Area Coordinating Council regarding Condition #19a. He asked if Mr. DeCarli was implying a new MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - MARCH 14, 1990 PAGE 8 bridge structure is going to be another five lanes wide? Mr. Red stated Mr. DeCarli was using that as an example; the California Department of Transportation will set the conditions. Councilmember Wuriu asked if the developer is in agreement with the percentages assigned for him to pay as far as infrastructure is concerned? Mr. Elster stated there may be some modifications to the costs, however, their contribution will amount to approxi- mately $4.5 million. They are willing to live by the percentage ratios. Councilmember Wuriu asked if Council is in danger of violating any City or other statutes if it agrees with the Planning Commis- sion recommendation on Condition ill? Ms. Skousen stated to allow any grading, cutting, filling, feathering, etc. of hillsides out- side of the boundary area would be a violation of the zoning ordinance and Local Coastal Plan. An argument could be made the question of whether grading/feathering of hillsides is a use per- mitted is an ambiguous question which can be submitted to the Planning Commission for interpretation. Councilmember Wuriu asked when Council had to receive this inter- pretation? Ms. Skousen stated the interpretation could occur after Council approves the project; Council can amend conditions during the process. Mayor Sheetz stated Williams Brothers is responsible for 65% of the infrastructure improvements; where will the money to fund the City's portion come from? It will increase the current budget by 1/3. Mr. Napper stated those projects not listed as 100% the responsibility of the developer are already identified as City capital improvement projects needed now. Some of these projects will be budgeted during the normal budget process with a percent- age paid by the applicant. Mayor Sheetz asked if the City will be forced to do the projects sooner because of the project? Mr. Napper stated no; those improvements needed because of the shopping center project are being funded by the developer in conjunction with construction. Mayor Sheetz asked why this project is larger than the Pismo Beach shopping center? Mr. Courtney stated because of the lay of the land; the City's requirements for parking standards are 20%- 40% higher; and landscaping amenities. Councilmember Odell noted the amount of time he spent studying this issue and said he believes the City should act in accordance with the letter of law; he is not comfortable with the project. MOTION: Councilmember Odell moved for denial without prejudice of CUP 03-88, CUP 05-88R, and certification of the EIR with the following findings: MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - MARCH 14, 1990 PAGE 9 1. The area of site disturbance of the proposed commercial use extends into non -prime agricultural lands and con- stitutes a commercial use of non -prime agricultural lands and such use requires specific findings by the Planning commission according to Title 17.39.130 of the Morro Bay Municipal and no such findings were made; and 2. Conditions for permitting commercial uses on non -prime agricultural lands have not be satisfied as required by title 17.39.135 of the Morro Bay Municipal Code; and 3. The proposed development design does not adequately meet the performance standards as required by Title 17.39.190 Morro Bay Municipal Code; and 4. The area of site disturbance extends beyond the project area boundary of the proposed development, that the project does not conform to Chapter 70, Excavation and Grading, 1988 Uniform Building Code; and 5. The proposed development does not comply with Section 30241 of the California Coastal Act which requires clearly defined agricultural buffer areas and assurance that public service expansions and non-agricultural development do not impair agricultural viability, either through increased assessment costs or degraded air and water quality; and 6. The proposed development design is in substantial con- flict with Chapter XIII, Visual Resource Policy 12.01, Morro Bay Coastal Land Use Plan; and 7. The proposed development will require extensive alter- ation of natural land forms and shall require a borrow site to supply fill material for the purpose of filling an existing streambed which conflicts with Section 30236 and 30251 of the California Coastal Act; and 8. The borrow site is located on lands under the regula- tory purview of the County of San Luis Obispo and the California Coastal Commission and the expectation that said agencies will grant the necessary permit is not a certainty and if the 475,000 cubic yards of fill required by the development must be imported from another location, said importation of fill would gener- ate a great amount of vehicle trips by heavy trucks, a condition which was not adequately addressed by the EIR prepared for the development's concept plan and afore- mentioned possible vehicles trips caused by the pro- posed development design conflict with Section 30253 of the California Coastal Act; and MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - MARCH 14, 1990 PAGE 10 9. Aforementioned impacts and policy conflicts could be minimized or eliminated by a redesign of the proposed development; and 10. The above mentioned policy conflicts are significant and substantial and said policies are legally binding and approval of CUP 03-88/CDP 05-88R would constitute a grant of special privilege to said proposed development. Therefore, Council finds as follows: 1. That the above recitations are true and correct and constitute the findings of the Council in this matter; and 2. That the Council does hereby deny without prejudice this Conditional Use Permit (Case Number CUP 03-88) and the Coastal Development Permit (Case Number CDP 05- 88R), based on the above listed findings; and 3. That the Council does also deny certification of the Final EIR. The motion was seconded by Mayor Sheetz. Mayor Sheetz agreed with the motion and stated she does not deny Mr. Williams has a right to build on his property; however, the size and scope of the building is up to the City Council. She agrees another market is needed; so is competition. Councilmember Lemons objected to the introduction of a motion of the magnitude presented by Councilmember Odell and the fact Coun- cil had no prior review of the document. He said it was a very inconsistent way to do public business. He also stated he believed the rest of the Council spent as much time individually studying this issue as Councilmember Odell. MOTION: Councilmember Lemons moved to offer a Substitute Motion that Condition #1 as revised by the Planning Commission be accepted. The Substitute Motion was seconded by Councilmember Wuriu. Councilmember Baker stated the Council has done its homework; they read letters from and listened to many people. He stated sometimes he even wishes to go back to a small town in Massachusetts where he grew up, but he realizes you can never go back. Towns are going to change, and so is Morro Bay. He trusts the experts to know what size shopping center is needed in Morro Bay. He favors the center as proposed. MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - MARCH 14, 1990 PAGE 11 Councilmember Wuriu stated the people of Morro Bay want and deserve a larger shopping center than what is available. He also understands residents are afraid too large a project will have an adverse impact on the City. He said Council has received invalu- able information from the Planning Commission and staff, and hun- dreds of concerned citizens. He stated Council is only dealing with Phase I of the project at this time, and he does not believe it will be overwhelming or threatening to the City's way of life. He said the EIR points out numerous problems, but the Planning Commission and staff have done a competent job of developing 55 conditions to provide for adequate mitigation. He believes the City can have a new shopping center as designed in Phase I with- out doing grave damage to our economy and environment. Councilmember Lemons stated the shopping center will potentially create more business for the City. A small development limited in size would not provide anywhere near the amount of infrastruc- ture improvements Williams Brothers will be contributing to the City. Mayor Sheetz stated Condition #1, Chorro Creek, environmental impacts are all valid concerns. She said the City may gain a shopping center, but what do we lose? What is important is the people who live here now. MOTION: The Substitute Motion was carried with Councilmember Odell and Mayor Sheetz voting no. (3-2) Councilmember Lemons stated because an individual does not agree with someone else it does not mean he has no concern for environ- mental issues. The law is clear; that is the purpose of an EIR. A vast majority of the mitigation measures suggested by the EIR have been incorporated in the Conditions for this project. Mayor Sheetz questioned the procedure for a Substitute Motion. Mr. Napper stated Council voted in favor of considering a Substi- tute Motion; now that motion needs to be made which will be con- sidered the main motion. MAIN Councilmember Lemons moved Condition #1 as revised by MOTION: the Planning Commission be accepted. The motion was seconded by Councilmember Wuriu and carried with Coun- cilmember Odell and Mayor Sheetz voting no. (3-2) MOTION: Councilmember Lemons moved Council agrees with staff to delete Condition #41b from the Planning Commission Res- olution. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) MOTION: Councilmember Lemons moved the transit stop as sug- gested by the Air Pollution Control District be included in the project conditions. The motion was 0 MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - MARCH 14, 1990 PAGE 12 seconded by Councilmember Wuriu and unanimously carried. (5-0) Councilmember Lemons if there is a condition outlining a poten- tial sewer treatment plant. Mr. Napper stated it is not in the conditions; a determination was made the applicant could pursue it separately in the precise plan stage. MOTION: Councilmember Lemons moved a section "e" be added to Condition 36 to state the applicant may propose, at his own expense, an on -site sewerage treatment plant to substitute for some of the foregoing conditions. The motion was seconded by Councilmember Wuriu and unani- mously carried. (5-0) Councilmember Lemons questioned when the requirement for an archaeological study and on -site observer would be required. Mr. Farrel outlined the process. Councilmember Odell stated Condition Vi should be amended to require the City Engineer rather than the Building Official to approve the drainage device. Staff concurred, and that error will be corrected. Mayor Sheetz asked about the CalTrans requirement to plan the drainage for a 100 year flood rather than 25 as set by the City? Mr. Nichols stated there is a difference between a 100 year flood and a 25-year storm; the conditions will be adequate to both agencies' requirements. MOTION: Councilmember Wuriu moved the modifications to Planning Commission Conditions #2c, 37, 48, 49, 50 and 51 as acceptable to both the applicant and staff be approved. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) MOTION: Councilmember Wuriu moved for approval of an addition to Planning Commission Condition #25 the applicant will not oppose their future inclusion in a transit assess- ment district. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) MOTION: Councilmember Odell moved Planning Commission Condition #12 contain additional wording regarding the bond requirements: "in a form acceptable to the City Attor- ney". The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Farrel asked if Council wished to incorporate the Air Pollu- tion Control District addendum into the EIR as an additional sup- porting document? Mayor Sheetz directed him to do so. ! 0 MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - MARCH 14, 1990 PAGE 13 Councilmember Lemons asked when the delineation of the boundary lines will be determined. Mr. Farrel stated Condition #1 does that; nothing else is needed to take care of the question. Mr. Napper suggested Council direct staff to prepare a resolution including the condition modifications approved by Council this evening and continue the matter to March 26th. MOTION: Councilmember Lemons moved staff be directed to return with a resolution setting forth the fact the EIR is certified and listing the conditions necessary for approval of the conceptual project. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) MOTION: Councilmember Lemons moved this item be continued to the March 26th Council meeting. The motion was sec- onded by Councilmember Wuriu and unanimously carried. (5-0) The meeting adjourned at 10:14 p.m. Recorded by: ARDITH DAVIS City Clerk i a 6 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 - MARCH 12, 1990 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 Hearings 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 26, 1990 A-2 PROCLAMATION DECLARING MARCH 23-31 AS "CENSUS WEEK" A-3 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (SHIELDS) A-4 PROCLAMATION DECLARING APRIL 1990 AS "EARTHQUAKE PREPAREDNESS MONTH" A-5 RESOLUTION NO. 29-90 HONORING THE FEDERAL LAND AND WATER CONSERVATION FUND UPON ITS 25TH ANNIVERSARY A-6 RESOLUTION NO. 28-90 AUTHORIZING A CHANGE IN THE NAME OF THE REFUSE COLLECTION FRANCHISE BOARD TO THE SOLID WASTE MANAGEMENT BOARD A-7 RESOLUTION NO. 32-90 RECOGNIZING THE MORRO BAY QUOTA CLUB UPON ITS 25TH ANNIVERSARY A-8 AWARD OF CONTRACT TO DAVID M. GRIFFITH AND ASSOCIATES FOR COMPLETION OF AB 1600 STATE LAW PROCESS TO DOCUMENT AUTHORITY FOR CITY DEVELOP- MENT FEES B. UNFINISHED BUSINESS B-1 FIRE FUNDING STEERING COMMITTEE REPORT ANALYZING THE NOVEMBER 1989 EMERGENCY MEDICAL SERVICES BALLOT MEASURE AND CAMPAIGN, AND RECOMMEN- DATIONS FOR IMPROVEMENTS AS A NOVEMBER 1990 BALLOT MEASURE C. NEW BUSINESS C-1 REPORT ON RESEARCH TO UNCOVER AND EVALUATE FINANCIAL ASSISTANCE OPTIONS FOR REHABILITATION OF UNREINFORCED MASONRY (URM) PRIVATE BUILDINGS D. PUBLIC HEARINGS, REPORTS & APPEARANCES D-1 RESOLUTION NO. 31-90 AUTHORIZING 50-YEAR LEASE AGREEMENT WITH UNITED STATES COAST GUARD FOR CONSTRUCTION AND OPERATION OF A MULTI -STORY COAST GUARD OFFICE AND OBSERVATION TOWER ON LEASE SITE 141 (ADJACENT TO 1275 EMBARCADERO) D-2 RESOLUTION NO. 30-90 AUTHORIZING PARTICIPATION IN A JOINT POWERS AGREEMENT FOR THE PREPARATION OF A COUNTY/CITIES NOISE ELEMENT UPDATE, CONSTRUCTION STANDARDS AND NOISE DESIGN MANUAL, AND LOCAL NOISE ORDINANCE DRAFT REVISIONS (GPA 01-90) D-3 ORDINANCE NO. 368 ESTABLISHING AUTHORITY FOR CITY REPAIR OF LEAKY WATER FIXTURES ON PRIVATE PROPERTY AFTER DUE PROCESS NOTIFICATION, AND REQUIREMENT FOR PROPERTY OWNER REIMBURSEMENT OF CITY EXPENSES (INTRO- DUCTION/FIRST READING) D-4 ORDINANCE NO. 369, RESOLUTION NO. 26-90 APPROVING AN AMENDMENT TO THE REFUSE COLLECTION FRANCHISE AGREEMENT, AND RESOLUTION NO. 27-90 ESTAB- LISHING A CURBSIDE RECYCLING PROGRAM IN THE CITY OF MORRO BAY AND INSTITUTING AN 8.38% ACROSS-THE-BOARD RATE INCREASE TO FUND PROGRAM (INTRODUCTION/FIRST READING) D-5 CONTINUED PUBLIC HEARING ON APPEAL OF PLANNING COMMISSION RE -ISSUANCE OF COASTAL DEVELOPMENT PERMIT NO. 95-89R FOR MIMOSA STREET IMPROVEMENT DISTRICT (PRICE, APPELLANT) D-6 RECONSIDERATION OF WATER ADVISORY BOARD RECOMMENDATIONS FOR IMPLEMEN- TATION OF NEW WATER RATE SCHEDULE AND LIFE -LINE PROGRAM TO FUND SUPPLEMENTAL WATER PROJECTS E. CLOSED SESSION 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. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 12, 1990 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 William Farrel Forrest Henderson Nick Nichols Mike Upton Steve Wolter City Administrator City Attorney Finance Harbor Director City Clerk Community Dev. Dir. ASst. City Admin. Public Works Dir. Admin. Asst. Rec. & Parks Dir. Councilmember Odell gave the invocation, and Horace Strong led the Pledge of Allegiance. F-3a *3:4zy.C. �M_{g9 Mayor Sheetz requested the City Clerk read the Proclamation declaring March 23-31 as "Census Week". Mayor Sheetz emphasized the importance of filling out the questionnaires and returning them, noting they are kept confidential. Mayor Sheetz read Resolution No. 32-90 recognizing the Morro Bay Quota Club upon its 25th Anniversary and Charter President Garnet Coughlin. She called Quota Club members Garnet Coughlin and Mary Moses forward and presented them with the Proclamation. 1. Ray Kaltenbach, 473 Sicily, read a Telegram Tribune article from March 9th in which Williams Brothers is opposing a new shopping center development in Los Osos. He stated Williams Brothers does not believe another shopping center is needed in Los Osos; Morro Bay does not want another Williams Brothers shop- ping center monopoly either. • • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 12, 1990 PAGE 2 DECLARATION OF FUTURE AGENDA ITEMS 1. Councilmember Lemons stated the Council recently received a letter from Janice Peters reporting on San Simeon replacing all toilets with 1.5 gallon toilets. He requested staff look into the matter and report back to Council as to any merit in the program. Mr. Napper noted he will agendize the sub- ject at a future meeting for Council's discussion. 2. Mayor Sheetz requested the Street Advisory Committee look at the Quintana Road area near the Union Service Station to perhaps prohibit on -street parking. It may alleviate traffic problems, and most of the business in the area have parking lots. A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF FEBRUARY 26. 1990 Mr. Napper recommended Council approve the minutes as submitted. A-2 PROCLAMATION DECLARING MARCH 23-31 AS "CENSUS WEEK" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-3 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (SHIELDS) Mr. Napper recommended Council deny the claim of Charles M. Shields, and authorize the City Clerk to sign and mail the rejec- tion notice. A-4 PROCLAMATION DECLARING APRIL 1990 AS "EARTHQUAKE PREPARED- NESS MONTH' Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-5 RESOLUTION NO. 29-90 HONORING THE FEDERAL LAND AND WATER CONSERVATION FUND UPON ITS 25TH ANNIVERSARY Mr. Napper recommended Council adopt Resolution No. 29-90. A-6 RESOLUTION NO. 28-90 AUTHORIZING A CHANGE IN THE NAME OF THE REFUSE COLLECTION FRANCHISE BOARD TO THE SOLID WASTE MANAGE- MENT BOARD Mr. Napper recommended Council adopt Resolution No. 28-30. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 12, 1990 PAGE 3 A-7 RESOLUTION NO. 32-90 RECOGNIZING THE MORRO BAY QUOTA CLUB UPON ITS 25TH ANNIVERSARY Mr. Napper recommended Council adopt Resolution No. 32-90. A-8 AWARD OF CONTRACT TO DAVID M. GRIFFITH AND ASSOCIATES FOR COMPLETION OF AB 1600 STATE LAW PROCESS TO DOCUMENT AUTHOR- ITY FOR CITY DEVELOPMENT FEES Mr. Napper recommended Council authorize the City Administrator to execute a Contract for Services with David M. Griffith & Associates in the amount of $20,000 for the conduct of AB 1600 services. Councilmember Lemons stated he wished to make a comment with regard an item considered at the last Council meeting to install stop signs on Kennedy Way at Shasta Avenue. He has noted several people running the stop signs and at a considerable speed. He suggested the police provide additional patrol for a period of time to remind people of the new stop signs. Mr. Napper stated he would discuss this with the Police Chief. Councilmember Wuriu commented on Item A-3 regarding the claim of Mr. Shields against the City. He asked if the City has insurance to cover this item? Mr. Henderson stated the City does have insurance which covers the City for damage to others' property; however, the street sign which damaged his vehicle fell due to high wind weather conditions which is considered an act of God. Public agencies are immune to claims of this nature. Councilmember Wuriu stated the claim does not amount to much money. Mr. Henderson stated his recommendation is based on the circumstances rather than the size of the claim. MOTION: Councilmember Lemons moved for the approval of the Con- sent Calendar. The motion was seconded by Councilmem- ber Wuriu and unanimously carried. (5-0) B. UNFINISHED BUSINESS B-1 FIRE FUNDING STEERING COMMITTEE REPORT NANALYZING THE NOVEMBER 1989 EMERGENCY MEDICAL SERVICES BALLOT MEASURE AND CAMPAIGN, AND RECOMMENDATIONS FOR IMPROVEMENTS AS A NOVEMBER 1990 BALLOT MEASURE Chief Zerr stated the Fire Funding Steering Committee met to dis- cuss the narrow margin by which this measure failed last Novem- ber. They believe because a majority of the voters were in favor of the measure, it should be resubmitted to voters. The Commit- tee recommends including an additional section to the measure which would institute an annual expenditure report be made avail- able to the public detailing exactly what the tax monies were MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 12, 1990 PAGE 4 used for each year. The Committee believed one of the reasons the measure failed was because some people thought the money would be used for other purposes. Councilmember Lemons commented on the Committee's statement their low -profile approach was not detrimental to the measure. He noted one individual was successful in appearing on television in opposition to the measure on the eve of the election; proponents of the measure were not given the opportunity to rebut. He real- izes the Fire Department cannot promote the measure, but asked if it is possible the individual committee members could organize a committee to support this issue. He said the last election was a case where the minority determined the outcome for the majority. With nothing spent on advertising, relying on usual media support might not be enough. Mayor Sheetz agreed with the concept of the committee taking an active part in promoting the measure. Complaints she heard about the measure were people did not know where the money was going; were afraid Council would raise the fee every year; firefighters would take advantage of the training to obtain better jobs elsewhere. Mr. Napper pointed out the difficulty in how far Council can go to campaign and advocate this measure. As individuals, Council can support it, but staff can only make information available. MOTION: Councilmember Lemons moved for approval of the staff recommendation to incorporate an annual reporting requirement into the ballot measure, and prepare the revised ballot measure for Council placement on the November 1990 election. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) C-1 REPORT ON RESEARCH TO UNCOVER AND EVALUATE FINANCIAL ASSIS- TANCE OPTIONS FOR REHABILITATION OF UNREINFORCED MASONRY (URM) PRIVATE BUILDINGS Ms. Burt stated she is responding to Council questions regarding financing options for property owners who are eventually deter- mined to have unreinforced masonry buildings and required to repair them. Ms. Burt reviewed the options that are possible and the advantages and disadvantages to each. Council asked questions regarding the options and how they would be administered. Ms. Burt responded noting how banks may be able to process loans with the City fronting the money for the loans through City funds or Community Development Block Grant funds. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 12, 1990 PAGE 5 Councilmember Lemons questioned the City's investment policies and how much is on deposit on any given day. Ms. Burt stated it varies; approximately $6 to $8 million earning 8'% interest. Councilmember Lemons suggested it would be reasonable for the City to set aside perhaps $2 million of the funds to allow loans and receive the same 8% to 8'% interest from borrowers. Mayor Sheetz asked if the monies currently invested are earmarked for a specific purpose? Ms. Burt stated yes; approximately $800,000 is set aside for reserves and not allocated to a spe- cific project. The balance is budgeted monies which have not been spent due to projects not yet on-line or finished. Ms. Burt pointed out people are not going to need the money right away; there will be time for the City to apply for a CDBG loan and not have to risk City funds. Mayor Sheetz stated Council needs to look closely at this as Morro Bay seems to be pioneers in this type of financing. How does the City justify the program to another small business per- son who would like to do something with his business but is not subject to the URM regulations to supposedly qualify for City loans? Councilmember Lemons stated the program would not be able to take care of all needs, but would be a step in the right direction and show the City cares about the business community. Councilmember Wuriu commented the program would be a back-up for those who have a serious problem. The City should obtain a sense of the demand before Council decides how much money to allocate to the program. Councilmember Odell asked if the City should limit its activity to rehabilitation only, or both rehabilitation and new develop- ment? Councilmember Lemons was in favor of rehabilitation only. Councilmember Baker asked how the City would leverage grant money ($500,000) into $2 million? Ms. Burt stated if the City is suc- cessful in obtaining a grant, instead of using it for loans the City could enter into an agreement with the bank and let them make larger loans using their own monies. Mr. Napper reminded Council there is Statewide competition for grant funds; there is no certainty of receiving $500,000 from the CDBG grant. He also requested Council think about the priority for tying -up the use of City monies; are there other City ser- vices and needs to which these funds should be allocated? Councilmember Lemons stated the City will be receiving interest on the loan; there is no assurance of an ongoing program, and we are getting the monies back plus interest. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 12, 1990 PAGE 6 Councilmember Wuriu asked what the monies are presently being used for? Mr. Napper stated we are talking about cash flow; the monies are earmarked for projects and the City is using the cash flow to invest. Councilmember Odell asked what the administrative overhead would be? Ms. Burt stated it would be similar to the housing rehab process handled for the City by Peoples Self -Help Housing; this amounts to approximately $30,000. It should require 1/4 person over a 2 to 3 year period. MOTION: Councilmember Lemons moved staff be directed to develop a more comprehensive study using two of the possible programs following the lines of No. 3 and 4 in the staff memo: 3) Hybrid solution using CDBG grant monies to back a loan program; and 4) direct loan of City monies. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 RESOLUTION NO. 31-90 AUTHORIZING 50-YEAR LEASE AGREEMENT WITH UNITED STATES COAST GUARD FOR CONSTRUCTION AND OPERA- TION OF A MULTI -STORY COAST GUARD OFFICE AND OBSERVATION TOWER ON LEASE SITE 141 (ADJACENT TO 1275 EMBARCADERO) Alan Davis reviewed the proposal by the Coast Guard to construct a building 2 stories in height plus a third floor observation tower; the tower will enable viewing of the harbor entrance dur- ing severe weather conditions. He noted Harbor Department per- sonnel will be allowed access to the tower. Mr. Davis displayed renderings illustrating how the tower will affect the view of the harbor and Morro Rock from passers-by. Staff proposes approving the 50-year lease for $1 per year in exchange for which the City will receive access to the tower, the continuing presence of the Coast Guard in Morro Bay, and harbor office use expansion. Mr. Davis introduced Chief Warrant Officer Charles Van Meter, Engineer Officer, Coast Guard Group Monterey, who is available to answer questions Council may have concerning this project. Mayor Sheetz opened the hearing to the public for comments. Mr. Van Meter stated the Coast Guard would like to continue serv- ing in Morro Bay with this expansion which is necessary to carry on the administrative work. Jerry Mullin, 289 Pacific, asked what the square footage of the building is; what will be stored at the site; who will have con- trol over what is stored; what City ordinance will cover the activity? Are barracks being placed in the structure? 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 12, 1990 PAGE 7 Mr. Davis stated there is existing storage and a laundry facility on the site. The lower portion of the building will be storage and the upper portion will be offices and a conference room. There will be no barracks in the building. Mr. Van Meter stated there is approximately 2,800 square feet in the building which includes a utility room. The items stored will be lube or hydraulic oils, and the building will include a sprinkler system. Councilmember Wuriu asked if the third floor tower will be manned or used only in an emergency? Mr. Van Meter stated it will not be manned on a full-time basis; only as weather conditions dic- tate. The Harbor Master will also have 24-hour access to the tower. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Wuriu moved for adoption of Resolution No. 31-90. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) D-2 RESOLUTION NO. 30-90 AUTHORIZING PARTICIPATION IN A JOINT POWERS AGREEMENT FOR THE PREPARATION OF A COUNTY/CITIES NOISE ELEMENT UPDATE, CONSTRUCTION STANDARDS AND NOISE DESIGN MANUAL, AND LOCAL NOISE ORDINANCE DRAFT REVISIONS (GPA 01-90) Mr. Farrel stated Council previously set aside $4,000 as the City's share of a joint effort with the County to revise the Noise Element of the General Plan. The County has taken the lead and hired a single consultant to make changes to the Noise Ele- ment in accordance with State law; separate reports will be made for each contracting jurisdiction. 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. 30-90. The motion was seconded by Councilmem- ber Lemons and unanimously carried. (5-0) D-3 ORDINANCE NO, 368 ESTABLISHING AUTHORITY FOR CITY REPAIR OF LEAKY WATER FIXTURES ON PRIVATE PROPERTY AFTER DUE PROCESS NOTIFICATION, AND REQUIREMENT FOR PROPERTY OWNER REIMBURSE- MENT OF CITY EXPENSES (INTRODUCTION/FIRST READING) Mr. Nichols stated several months ago when Council was discussing water conservation and rates, it was noted tenants renting homes from property owners sometimes experience problems with their landlords getting a water leak repaired in their homes. The Municipal Code allows the City to turn the water off when it is being wasted, but this punishes the tenant rather than the prop- erty owner who is responsible for maintaining the property. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 12, 1990 PAGE 8 Council instructed staff to prepare an ordinance which allows the City to ensure water leaks can be repaired without discontinuing water service. The proposed procedure provides for notification of water leaks to the property owner and his responsibility to repair. If the property owner refuses to take care of the mat- ter, the City may enter the property, make the repairs, and have the costs billed to the property through property tax bills. The City Attorney has reviewed and approved the proposed ordinance. Councilmember Odell stated while the intent of the ordinance is to penalize a property owner who refuses to fix a tenant's water leaks, the ordinance does not differentiate between the homeowner and the tenant. He believes the ordinance expands the City's police powers. He preferred the ordinance be worded to require pro -active action on the part of the tenant rather than the City. He cited other reasons for causing an increase in water bills rather than leaks somewhere in the house; yet, these could prompt the City to take this action. Ms. Skousen stated in all cases before the City could do repairs to become a lien on property, the property owner would be notified. Councilmember Lemons stated the ordinance concerns people who have water leaks and refuse to repair them. Water is a critical resource for Morro Bay. Councilmember Odell stated he is concerned with increased police powers which give the City the authority to go into someone's home and invade their property; he asked how much of a problem this really is? Mayor Sheetz stated if someone is wasting water, it is tied into the health and safety of the citizens of the City. Ms. Skousen stated the only time the City would need to use prob- able cause to enter someone's home would be if the property owner refused to fix a leak; it is a very last resort. The City already has the option of turning the water off. Councilmember Baker stated he has not watered his lawn for 4 years; what if his water bill goes up because he decides to start watering the lawn within the current water restrictions? Ms. Skousen stated if it is legitimate use of water, no action would be taken. Councilmember Lemons did not believe the tenant should have to report the water leak to the City to trigger enforcement action. Mr. Napper stated the City will go through all procedures and measures available to achieve voluntary compliance before this course of action would be pursued. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 12, 1990 PAGE 9 Mayor Sheetz opened the hearing to the public for comments. Ray Kaltenbach, Sicily, stated the ordinance is ridiculous. He suggested Council instead spend time on finding out how much water the retrofit program really saves. It is more constructive than trying to find leaks in people's homes. Charles Palmer, 485 Estero, stated he has seen cases where the water leak is outside the house and the tenants are too elderly to fix it themselves and are afraid to contact the landlord about the matter. He suggested the City work with service organiza- tions to effect minor repairs for free. Mayor Sheetz suggested since Mr. Palmer is a member of the Kiwanis, he ask them to take this on as a service project. Ed McCracken, 2439 Hemlock, stated People's Self -Help Housing has a service for minor home repairs. They fix water leaks and accept donations. Mayor Sheetz closed the item to the public. MOTION: Councilmember Lemons moved Ordinance No. 368 be read by title and number only. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mr. Napper read Ordinance No. 368 by title and number only. MOTION: Councilmember Lemons moved for approval of the intro- duction and first reading of Ordinance No. 368. The motion was seconded by Councilmember Baker and carried with Councilmember Odell voting no. (4-1) D-4 ORDINANCE NO. 369, RESOLUTION NO. 26-90 APPROVING AN AMEND- MENT TO THE REFUSE COLLECTION FRANCHISE AGREEMENT; AND RESO- LUTION NO. 27-90 ESTABLISHING A CURBSIDE RECYCLING PROGRAM IN THE CITY OF MORRO BAY AND INSTITUTING AN 8,38% ACROSS- THE-BOARD RATE INCREASE TO FUND PROGRAM (INTRODUCTION FIRST READING) Councilmember Odell stepped down from consideration on this mat- ter due to a possible conflict of interest. Mike Upton, Administrative Assistant, reviewed Council's previous action to establish a curbside recycling program and the docu- ments staff prepared to formalize the action. Proposed Ordinance No. 269 amends the refuse ordinance to incorporate a curbside recycling program in the refuse collection service. Resolution No. 26-90 amends the Refuse Collection Franchise Agreement in the same manner and Resolution No. 27-90 approves an 8.38% rate increase to fund the recycling program. He said the program will be implemented the first part of April 1990; however, rate increases will not go into effect until 01 May 1990. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 12, 1990 PAGE 10 Mayor Sheetz stated this program does not interfere with any other groups who collect materials for recycling. Mr. Upton agreed; the main idea is to get recyclables out of the solid waste stream. Councilmember Wuriu asked what keeps things from blowing out of the recycling boxes since there are no tops for them? Mr. Nichols stated newspapers should be bound with string or placed in paper bags to avoid this problem. Mayor Sheetz opened the hearing to the public for comments. Ray Kaltenbach, Sicily St. , stated he is in favor of the recy- cling program. He reviewed a recycling program in Tulsa, Oklahoma conducted over 50 years ago that produced energy for power too. Charles Palmer, Estero, commented the market for recyclables has decreased over the years. If a program is going to be success- ful, the community needs to talk to their State legislators to pass laws to encourage use of recycled products. Jerry Mullin, 985 Pacific, asked what income will be generated by the 8.38% rate increase? Does the refuse company have a buyer for the materials, and what guarantee does the consumer have these items are being recycled and not just dumped in the landfill? Mr. Upton stated the $54,000 generated by the rate increase is to cover the cost of the recycling program. He stated the garbage service has contracts with several processors of recycling materials. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Lemons moved Ordinance No. 369 be read by title and number only. The motion was seconded by Councilmember Wuriu and carried with Councilmember Odell abstaining. (5-0-1) Mr. Napper read Ordinance No. 369 by title and number only. MOTION: Councilmember Lemons moved for approval of introduction and first reading of Ordinance No. 369. The motion was seconded by Councilmember Baker and carried with Coun- cilmember Odell abstaining. (4-0-1) MOTION: Councilmember Lemons moved for the adoption of Resolu- tions No. 26-90 and 27-90. The motion was seconded by Councilmember Baker and carried with Councilmember Odell abstaining. (4-0-1) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 12, 1990 PAGE 11 Councilmember Odell resumed his seat on the Council. Council recessed from 8:10 p.m. to 8:21 p.m. D-5 CONTINUED PUBLIC HEARING ON APPEAL OF PLANNING COMMISSION RE -ISSUANCE OF COASTAL DEVELOPMENT PERMIT NO. 95-89R FOR MIMOSA STREET IMPROVEMENT DISTRICT (PRICE, APPELLANT) Mr. Napper stated this item is continued from two previous meet- ings at the Price's request. Mr. Orton, project engineer, is present to answer questions Council may have after the Price's have presented their appeal. Geraldine Price, Ironwood, stated this project will result in significant adverse impact on their property. It will create an unsafe, hazardous, and dangerous street on the corner where they live. The street will be 3 feet or less from their garage. Ms. Price stated Ironwood is overloaded with traffic now because of churches and condominiums. She requested Ironwood be blocked from access to Mimosa. An expensive street is not needed at this time with only two houses using it; it will just accommodate a developer and the developer does not'live in Morro Bay. Mayor Sheetz opened the hearing to the public for comments. Ed McCracken stated he observed the hazards on Ironwood/Mimosa, and suggested speed bumps be placed across the street or Bots dots installed to alleviate the traffic speed hazards. Pat Lamouria, Mimosa, stated the people on Mimosa have meticu- lously followed all directions to establish an assessment dis- trict, and she listed some of the items. They have also paid for part of the tax assessment already. She believes the opponents have abused the system, and encouraged Council to eliminate fur- ther delays and added expenses. Twila Breen, 1430 W. Mesa, Fresno, stated she is not a developer. She represents people who would like to build and live in Morro Bay. They have been denied that right to date because Mimosa has not been paved; she cannot even get in line for water until the street is paved. Richard Atchley stated the intersection at Mimosa and Ironwood has been planned and re -planned and all the engineering that could possible be done has been. He noted church traffic only occurs on Sundays for two hours. Denial of the appeal is requested. Terry Orton stated there is a current easement over the road which is enjoyed by the owners in the area and all traffic on Mimosa; through traffic has been using the street for sometime, MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 12, 1990 PAGE 12 and he questioned if the City could legally stop this through traffic. Mayor Sheetz asked if the cul-de-sac option was ruled out because there was not enough space to construct it? Mr. Orton stated yes. Ms. Skousen stated there is a deeded easement to property owners and a court order prohibiting the road from being closed off. Mayor Sheetz noted she previously went to court so the easement could not be closed off as the previous property owner attempted to barricade the road to through traffic. Mayor Sheetz closed the hearing to the public. Ms. Price stated the only one who legally has an easement are the Lamourias. Mayor Sheetz asked what happened to the street sign on Mimosa? Mr. Nichols said it was taken down because Mimosa is not a City street and not a dedicated right-of-way. Mayor Sheetz asked if traffic should be slowed down at the Mimosa/Ironwood intersection? Mr. Nichols stated when the improvements are constructed, the intersection will be changed from what it is now. Council should wait and evaluate the situa- tion after the street has been constructed; there is not enough information at this time to make a recommendation. Councilmember Baker asked if the last property owner (Maclean) had been legally served condemnation notification? Mr. Orton stated it is not complete at this time; the courts asked for additional information before accepting the Maclean service pro- cess as complete. MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 23-90 denying the appeal and upholding the Planning Commission's decision. The motion was sec- onded by Councilmember Baker. Councilmember Odell stated the Mimosa Street item was on the agenda when he first sat as a Councilmember. He stated he cannot change the outcome of the Mimosa Street assessment district because the property owners have a legal right to have it con- structed. He advised the Prices they are also paying additional costs along with the proponents of the assessment district for the delays. He suggested they stop fighting it and increasing their own costs. Mayor Sheetz asked why a cul-de-sac is not permitted? Mr. Nichols stated because of traffic circulation and emergency access needs. A cul-de-sac would require acquisition of property MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 12, 1990 PAGE 13 125 feet in diameter which would require private property on either side of the street and possibly encroach on structures. Councilmember Wuriu stated he believes the amount of damage to be incurred by the Prices with the amount of compensation to be ren- dered is ridiculous. He said it was too bad the people who live on the street could not sit down together and work something out; legally, the Council has to go forward this evening. Mayor Sheetz stated she has been involved in Mimosa since she came to Morro Bay. Mr. Kline, a previous owner, tried to sell the street for $65,000. She agrees with Councilmember Wuriu the compensation the Prices are being offered for their property is a disgrace. However, once the property owners have agreed to pro- ceed with an assessment district, all the Council does is act as the legislative body to move it forward. She suggested the Prices try to get more money for their property. The motion to adopt Resolution No. 23-90 was unani- mously carried. (5-0) D-6 RECONSIDERATION OF WATER ADVISORY BOARD RECOMMENDATIONS FOR IMPLEMENTATION OF NEW WATER RATE SCHEDULE AND LIFE -LINE PROGRAM TO FUND SUPPLEMENTAL WATER PROJECTS Mr. Napper stated this item was agendized at the request of Morro Bay property owner Robert Enns, and Councilmember Lemons. Councilmember Lemons stated he has in mind a new course of action, but would prefer not to adopt a new water rate schedule this evening. After the public hearing, he intends to propose adoption of a fixed fee rate by motion. Mayor Sheetz opened the hearing to the public for comments. Robert Enns, 3421 Ocean Blvd., Cayucos, reviewed his interest and expertise in the subject of water. He is concerned about the quantity and quality of water in Morro Bay; 4 of the City's 13 wells were shut down by the State earlier this year. He dis- cussed water shortage problems Santa Barbara and Goleta are cur- rently dealing with. The projects the City is pursuing appear to be the only way out and the City has reached a point where it needs to pay. He pays water rates on 4 properties in Morro Bay which he owns; he is asking Council to raise his water rates for new water projects. Charles Palmer disagreed with the up -front meter charge on water. The majority of the water consumers use very little water; the Council will be penalizing the people who already conserve. If the Council wants the public to save water, it needs to give them an incentive. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 12, 1990 PAGE 14 Ray Kaltenbach, Sicily Street, stated most of the people in Morro Bay are on fixed incomes; all the projects proposed cost money. It seems to be the trend of coastal communities to build out beyond their capacity to provide water. Bruce Risley, Piney Way, stated several months ago the Water Advisory Board presented to Council a series of recommendations. He supported their initial recommendation because it required the rate payers that live in Morro Bay to pay for the operation and maintenance of the existing water system, and the tourists and new people coming to Morro Bay to pay for the acquisition of additional supplies. He said Council never addressed that prob- lem; it is a matter of policy. He said it is time Council dis- cuss the recommendation and adopt it. Mayor Sheetz stated Council did implement a rate increase for water availability fees for new homes built in Morro Bay. Howard Gaines, Orcas, objected to Council applying the fee on a equal basis for capital improvements and funding new water. It is asking the rate payers to pay with no viable way to get new water. Whale Rock Commission is not going to give the City any water storage. Fish and Game cannot comment on the Coastal Streams project until it rains in order to study fish spawning. He stated the basic service charge is a special tax, and Council will be violating the law if they adopt it. Government Code Sec- tion 50076 states any tax requires a 2/3 vote of the people unless the fee can be shown to be reasonably related to the cost of the service. Ann Freeman, 785 Cabrillo, stated it seems Council's only solu- tion to the water problem is to raise fees to users. The people conserve water, but see no efforts from Council to enact a build- ing moratorium. We are at a crisis; declare a moratorium. Nancy Bast agrees with the previous speakers, and stated she did not understand how Council can raise the rates to finance new development; what's wrong with using General Fund monies? She discussed capital expenditures approved at mid -year and stated someone needs to realize the priorities. When Council sees a project that will bring water to Morro Bay, they should pay for it out of the General Fund. The City is supposed to provide ser- vices and is not doing it when they raise rates for users that are already here. Mayor Sheetz closed the hearing to the public. Mayor Sheetz asked Ms. Skousen to address the issue of whether or not the City can legally charge a different rate for new resi- dents than that charged for those already living here? Ms. Skousen stated the rate differential must be related to the cost of supplying water; she can see no difference at this time. 9 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 12, 1990 PAGE 15 Mayor Sheetz asked Ms. Burt to explain the difference between the Water Fund and the General Fund. Ms. Burt stated the General Fund is unrestricted money the City receives. It is allocated to things that cannot be funded by a user charge such as police, fire, administration, finance and some transit and recreation. Councilmember Lemons stated in the recommendation from the Water Advisory Board the basic service charge and the income derived from the new water rate structure were to go towards maintenance and operation of the existing water supply for existing residents of the City, not for development of new water. Monies for new water supplies came from other sources as recommended in the WAB report. Councilmember Lemons believes Council should have insti- tuted the basic service charge when this item came before Council originally. He noted there is a service charge for water now; residents pay at least $2.13 if they do not use a drop of water. He suggested Council adopt a $4 basic service charge to include a lifeline program. The $4 charge only represents a $1.87 increase over the current $2.13. He suggested the basic service charge for 5/8" meters be $4; $10 for 1" meters; $20 for 1'11 meters; $32 for 2" meters; $50 for 3" and $100 for 4" meters. Councilmember Wuriu asked how Council can make sure the funds go into a separate account to be used only for current water operat- ing and maintenance expenses? Ms. Burt stated the money could go into a separate fund for that purpose only. She noted there is some degree of need for new water for current users; therefore, some of the regular water rate funds have been used in the past for new water capital projects. Mayor Sheetz stated it is ridiculous for anyone to think the City can afford to go forward with the San Bernardo Creek Dam, Coastal Streams project, and State Water Project. It is ridiculous to continuously throw money away on projects that will not get off the ground. Many communities are putting the State Water Project issue on the ballot. She suggests the burden rests on other agencies to come forward and financially help the City to bring these water projects on-line in return for receiving some of the new water. Councilmember Lemons does not believe the San Bernardo Creek Dam or State Water Project should be abandoned; however, he agrees Morro Bay cannot carry the Dam project alone. MOTION: Councilmember Lemons moved staff be instructed to pre- pare a resolution to institute a basic service charge at $4 for a 5/8" meter; $10 for a 1" meter; $20 for a 1'11 meter; $32 for a 2" meter; $50 for a 3" meter; and $100 for a 4" meter, and bring the matter back at the earliest opportunity. Further, the money from this basic service charge be deposited into a separate • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 12, 1990 PAGE 16 enterprise account to be used for the existing water supply only. The motion was seconded by Councilmember Baker. Councilmember Wuriu asked if all this money would be needed for the operation of the current system? Mr. Napper stated there are a lot of system improvements that have been targeted; there are over $8 million capital improvements needed City-wide, and a num- ber of them are to the existing water system. Councilmember Odell asked what happens to the interest on this specific fund? Ms. Burt stated funds typically retain their own interest. Mayor Sheetz asked if Councilmember Lemons would amend his motion to include the Lifeline program? Councilmember Lemons had no objection. Councilmember Lemons amended his motion to include the Lifeline program, as detailed in previous action by Council. Councilmember Baker accepted the amendment and the motion was unanimously carried. (5-0) Councilmember Lemons recommended Council appoint him and another Councilmember as a Sub -Committee of the City Council to meet with members of the community to try to develop a new water rate schedule similar but different from the existing schedule and the one proposed by the Water Advisory Board. He stated both rate structures have inherent problems too long to discuss this evening. He believes a Sub -Committee could return with meaning- ful information for Council consideration. MOTION: Councilmember Lemons moved Council appoint him and another Councilmember to a Sub -Committee of the City Council to meet with members of the community to develop a new water rate schedule similar but different from the existing schedule and that proposed by the Water Advisory Board. The motion was seconded by Coun- cilmember Wuriu. Councilmember Baker stated the Water Advisory Board spent a con- siderable amount of time on this subject and he suggested they be part of the committee. Councilmember Wuriu stated he would like to serve on the commit- tee; Mayor Sheetz appointed Councilmembers Lemons and Wuriu to the Sub -Committee. Council discussed the composition of the com- mittee. Councilmember Lemons suggested the Sub -Committee meet with the chairman of the WAB and design the mechanics of the committee. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - MARCH 12, 1990 PAGE 17 Councilmember Odell suggested the Sub -Committee contact the WAB and report back to Council on their progress; Council agreed. The motion was unanimously carried. (5-0) E. CLOSED SESSION None 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 9:49 p.m. Recorded by: / &� ARDITH DAVIS City Clerk �, �� 1�g0 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 26, 1990 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 Hearings 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 13, 1990, AND THE SPECIAL MEETING OF FEBRUARY 16, 1990 A-2 NOTICE OF COMPLETION, STREET OVERLAY PROJECT NO. 89-05 A-3 1989 ANNUAL REPORT ON MOBILEHOME RENT CONTROL PROGRAM A-4 EXPENDITURE REPORT - JANUARY 1990 A-5 STATEMENT OF INVESTMENTS - JANUARY 1990 A-6 NOTICE OF COMPLETION, RENOVATION OF KINGS AVENUE AND ELENA STREET WATER TANKS (PROJECT NO. PW 88-06) A-7 NOTICE OF COMPLETION, LA LOMA AVENUE WATER SYSTEM PUMPING LINE (PROJECT NO. PW 89-08) A-8 AWARD OF CONTRACT FOR PROJECT NO. PW 89-12, EMBARCADERO OVERLAY (BEACH STREET TO COLEMAN DRIVE) A-9 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (BOLIVAR J. STOCKING) A-10 AWARD OF CONTRACT FOR PURCHASE OF NEW PARK MAINTENANCE VEHICLE (BID NO. RP 89-01) 1 A-11 APPROVAL OF AGENDA FOR JOINT MEETING WITH RECREATION AND PARKS COMMISSION (20 MARCH 1990) A-12 APPROVAL OF EVENT SCHEDULE FOR EARTH DAY/ARBOR DAY CELEBRATION ON 22 APRIL 1990, AND APPROPRIATION OF FUNDS TO HOLD EVENT A-13 PROCLAMATION DECLARING MARCH 1990 AS "WOMEN'S HISTORY MONTH" A-14 NOTICE OF COMPLETION, PURCHASE AND INSTALLATION OF FIRE DEPARTMENT EMERGENCY GENERATOR (PROJECT NO. PW 89-06) B. UNFINISHED BUSINESS NONE C. NEW BUSINESS C-1 STREET ADVISORY COMMITTEE RECOMMENDATION FOR 3-WAY STOP AT INTERSEC- TION OF SHASTA AVENUE/KENNEDY WAY/DUNES STREET (RESOLUTION NO. 22-90) C-2 CONSULTANT REQUEST FOR APPROPRIATION OF FUNDS ($15K) FROM NEW WATER PRODUCTION RESERVE ACCOUNT FOR PURCHASE OF ENGINEERING AND ARCHAEOLOGICAL STUDIES CONDUCTED BY JOHN MAINO ON LAND TARGETED FOR A REQUIRED WATER TREATMENT PLANT TO SERVE SAN BERNARDO CREEK DAM/COASTAL STREAMS DIVERSION PROJECTS D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 RESOLUTION NO. 25-90 EXTENDING THE WAVIER OF MORRO BAY DOWNTOWN PARKING REQUIREMENTS FOR AN ADDITIONAL TWO-YEAR PROGRAM TIMEPERIOD TO JUNE 1992 D-2 PUBLIC HEARING ON APPEAL OF PLANNING COMMISSION APPROVAL FOR CONVER- SION OF TIME-SHARE CONDOMINIUMS TO FULL-TIME RESIDENTIAL USE FOR SEA HARBOR VILLAS, 645 MORRO AVENUE (CUP 47-89; REDMAN, APPELLANT) D-3 CONTINUED PUBLIC HEARING ON APPEAL OF PLANNING COMMISSION RE -ISSUANCE OF COASTAL DEVELOPMENT PERMIT NO. 95-89R FOR MIMOSA STREET IMPROVEMENT DISTRICT (PRICE, APPELLANT) D-4 PUBLIC HEARING ON FINAL ENVIRONMENTAL IMPACT REPORT AND PROJECT APPLICATION REGARDING A PROPOSED DEVELOPMENT OF COMMERCIAL AND VISITOR -SERVING FACILITIES (PACIFIC COAST SHOPPING PLAZA) AS A PHASED PROJECT ON 17.3 ACRES EAST OF HIGHWAY 1 AND MORRO BAY BLVD. (CUP 03- 88/CDP 05-88R; WILLIAMS BROTHERS MARKETS, INC., APPLICANT) E. CLOSED SESSION NONE 2 0 F. ADJOURNMENT TO FRIDAY, 02 MARCH 1990, 6PM, VETERANS MEMORIAL HALL, 209 SURF STREET, MORRO BAY FOR FINAL ACTION ON PACIFIC COAST SHOPPING PLAZA CUP 03-88/CDP 05-88R (WILLIAMS BROTHERS MARKET) 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. 191 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 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 Judy Skousen Bill Boucher Ardith Davis William Farrel Forrest Henderson Dave Howell Nick Nichols Steve Wolter City Administrator City Attorney Assoc. Civil Eng. City Clerk Community Dev. Dir. Asst. City Admin. Police Chief Public Works Dir. Rec. & Parks Dir. Horace Strong gave the invocation, and led the Pledge of Allegiance. PRESENTATIONS Mayor Sheetz noted the month of March 1990 is "Women's History Month". She asked the City Clerk to read the Proclamation, fol- lowing which representatives of "Women's History Month" activi- ties came forward and Mayor Sheetz presented them with the City Proclamation. Trina Dougherty of Coalesce Book Store and Alice Caponey, co- founders of the Central Coast Women's Project, spoke briefly on the activities scheduled to celebrate "Women's History Month" and the significance of women in history. They presented Mayor Sheetz with a T-shirt commemorating the month -long celebration. 1. Susan Nanasy, 2792 Alder Ave., said she is representing the people of Morro Bay for a safe Embarcadero. The issue they are concerned about is removal of a public restroom at the end of Morro Bay Blvd. on the Embarcadero and its relocation near the foot of the Centennial Stairway. They believe the new restroom will attract transients and undesirables which will be hazardous MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 PAGE 2 to many employees who work on the Embarcadero. She said there is little or no police patrol during the evening hours, and cited a recent rape which was committed in the area. Ms. Nanasy was also concerned about the loss of parking spaces upon construction of the restroom. She requested Council put this item back on the agenda for reconsideration, and asked for people in the audience who agreed with her comments to stand. Mayor Sheetz requested Chief Howell increase police patrols in the area to protect the people. 2. Katherine Walling, Piney Way, stated the City staff, Planning Commission, and City Council is not listening to the people with regard to the Williams Brothers project. The village image in Morro Bay is pass&; things are happening too fast too soon. Olive Street is in bad shape; we need more stop signs; we need an Architectural Review Board to control exotic building. 3. Ray Kaltenbach, 473 Sicily, commented on Robert Enn's request for Council to reconsider water rates; he objected to a non -City resident making such a request. Mayor Sheetz asked the City Administrator to meet with Chief Howell regarding the unsafe conditions on the Embarcadero, and report back to Ms. Nanasy. DECLARATION OF FUTURE AGENDA ITEMS None. A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF FEBRUARY 13, 1990, AND THE SPECIAL MEETING OF FEBRUARY 16, 1990 Mr. Napper recommended Council approve the minutes as submitted. A-2 NOTICE OF COMPLETION. STREET OVERLAY PROJECT NO. 89-05 Mr. Napper recommended Council accept the project as complete, and authorize the City Clerk to execute and file the Notice of Completion. A-3 1989 ANNUAL REPORT ON MOBILEHOME RENT CONTROL PROGRAM Mr. Napper recommended Council accept the Report as submitted. A-4 EXPENDITURE REPORT - JANUARY 1990 Mr. Napper recommended Council approve the Report as submitted. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 PAGE 3 A-5 STATEMENT OF INVESTMENTS - JANUARY 1990 Mr. Napper recommended Council accept the report for file. Mr. Napper recommended Council accept the project as complete, authorize the City Clerk to execute and file the Notice of com- pletion, and allocate $6,000 from the FY 89-90 Water Operating Fund Contingency to the project account to cover cost overrun. A-7 NOTICE OF COMPLETION. LA LOMA STREET WATER SYSTEM PUMPING LINE (PROJECT NO. PW 89-08) Mr. Napper recommended Council accept the project as complete, and authorize the City Clerk to execute and file the Notice of Completion. A-8 AWARD OF CONTRACT FOR PROJECT NO. PW 89-12, EMBARCADERO OVERLAY (BEACH STREET TO COLEMAN DRIVE) Mr. Napper recommended Council award the contract to Madonna Con- struction Company in the amount of $27,872.30. A-9 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (BOLIVAR J. STOCKING) Mr. Napper recommended Council deny the claim, and authorize the City Clerk to sign and mail the rejection notice. A-10 AWARD OF CONTRACT FOR PURCHASE OF NEW PARK MAINTENANCE VEHICLE (BID NO. RP 89-01) Mr. Napper recommended Council award the contract to Wallace GMC Truck of Paso Robles in the amount of $10,584.64, and allocate $2,000 from FY 89-90 General Fund Contingency to the project account. ��•vmugaw.,Le•• • w : 7 •� \� Mr. Napper recommended Council set Tuesday, 20 March 1989 at 7PM in the Community Center for a joint meeting with the Recreation and Parks Commission; and, that Council accept the submitted joint Agenda for that meeting. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 PAGE 4 A-12 APPROVAL OF EVENT SCHEDULE FOR EARTH DAYZARBOR DAY CELEBRA- TION ON 22 APRIL 1990. AND APPROPRIATION OF FUNDS TO HOLD EVENT Mr. Napper recommended Council approve the program as submitted, authorize the Mayor to appoint a Citizens' Advisory Committee to guide the event, and allocate $2,500 from FY 89-90 General Fund Contingency to the program account. A-13 PROCLAMATION DECLARING MARCH 1990 AS "WOMEN'S HISTORY MONTH" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-14 NOTICE OF COMPLETION, PURCHASE AND INSTALLATION OF FIRE DEPARTMENT EMERGENCY GENERATOR (PROJECT NO. PW 89-06) Mr. Napper recommended Council accept the project as complete, and authorize the City Clerk to execute and file the Notice of Completion. Councilmember Odell requested the minutes of February 13th be amended on page 5, last sentence on the page which states the City tests"12" times per year; the number should be 114". Councilmember Odell also requested Item A-2 be pulled for sepa- rate discussion, and Councilmember Lemons requested Item A-12 be pulled. MOTION: Councilmember Wuriu moved for the approval of the Con- sent Calendar with the amendment to the minutes, and excepting Items A-2 and A-12. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) A-2 NOTICE OF COMPLETION. STREET OVERLAY PROJECT NO. 89-05 Councilmember Odell questioned the $30,000 overrun on this pro- ject. Mr. Nichols explained the street was rougher than expected and needed additional thickness of asphalt than originally esti- mated. He stated the overrun is not out of order, and funds are available in the Street Overlay Budget to cover it. Councilmember Odell asked if there is some way of anticipating this kind of overrun. Mr. Nichols stated he could allow for a larger contingency factor in the project budget. Councilmember Wuriu noted project overruns and underruns are common. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 PAGE 5 A-12 APPROVAL OF EVENT SCHEDULE FOR EARTH DAY/ARBOR DAY CELEBRA- TION ON 22 APRIL 1990, AND APPROPRIATION OF FUNDS TO HOLD EVENT Councilmember Lemons was concerned about the amount of money this celebration is costing, and it was not a budgeted item. He also stated a previous staff report indicated there were no costs associated with becoming a Tree City USA. Mr. Wolter stated the costs are largely related to the Earthday events; the Arbor Day celebration expenses are minimal. Councilmember Lemons ques- tioned certain activities, and Mr. Wolter provided answers. Councilmember Lemons asked if this will be an annual event? Mayor Sheetz stated no; money will be donated for many of the activities, and the budgeted costs represent mostly staff time. MOTION: Councilmember Lemons moved for the approval of Items A- 2 and A-12. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) 1�11zfa43 "It IAA__Ap)IR *11_6 NONE C. NEW BUSINESS C-1 STREET ADVISORY COMMITTEE RECOMMENDATION FOR 3-WAY STOP AT INTERSECTION OF SHASTA AVENUE%KENNEDY WAY/DUNES STREET (RESOLUTION NO. 22-90) Mr. Nichols stated the City received a request from Morro Elemen- tary School for the City to install stop signs on Dunes Street and Napa Avenue. A meeting was held between City staff, the Street Advisory Committee, and representatives from the School to discuss the matter. Because of the predominant pedestrian traf- fic pattern at the Dunes/Shasta/Kennedy intersection and some restriction of sight distance due to the curve and on -street parking on Kennedy Way, the Street Advisory Committee recommends the installation of an all -way stop at the intersection. They further recommended the School District construct a sidewalk on School grounds to the intersection to encourage pedestrian traf- fic flow to this route. Mr. Nichols does not envision a loss of on -street parking due to this stop sign installation. Mayor Sheetz asked if the School District had been contacted regarding the installation of a sidewalk? Mr. Nichols stated it was a SAC recommendation to Council, and he can communicate this to the School District with Council direction. MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 22-90. The motion was seconded by Councilmem- ber Baker and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 PAGE 6 C-2 CONSULTANT REQUEST FOR APPROPRIATION OF FUNDS ($15K) FROM NEW WATER PRODUCTION RESERVE ACCOUNT FOR PURCHASE OF ENGI- NEERING AND ARCHAEOLOGICAL STUDIES CONDUCTED BY JOHN MAINO ON LAND TARGETED FOR A REQUIRED WATER TREATMENT PLANT TO SERVE SAN BERNARDO CREEK DAM/COASTAL STREAMS DIVERSION PROJECTS Mr. Nichols stated the EIR for the San Bernardo Creek Dam and water treatment project is continuing. Mr. Robert Born, City consultant on this project, believes the best site for a water treatment plant is on John Maino's property near the San Bernardo Creek Dam site. Mr. Maino investigated the feasibility of con- structing a small reservoir on his property in 1982-83, and Mr. Born believes the studies are valuable to the City's EIR process. Mr. Maino has agreed to sell the documents of that study to the City at a cost of $15,000 which includes his out-of-pocket expenses plus interest since 1982. Mr. Born believes it is in the City's interest to acquire these documents. City staff rec- ommends purchase of the documents subject to the consultant's personal preview of the studies. Councilmember Wuriu asked if the City could look at the reports before they purchase them so the City can see what it is buying? Mr. Nichols stated if Council agrees to allocate the money, the consultant will make a determination on their usefulness before purchasing. Mayor Sheetz asked if the information is outdated since it was prepared in 1982? Mr. Nichols said he believes not; the work accomplished may be very pertinent to what the City is doing. At the very least, it may confirm information the City already has. Councilmember Lemons asked if the price plus interest is verifi- able, and what the interest is based on? Mr. Nichols stated he would find out. MOTION: Councilmember Wuriu moved $15,000 be allocated from the New Water Production Reserve Account to purchase exist- ing engineering and archaeological studies secured by John Maino, provided preview of the studies by Mr. Born is permitted and Mr. Born attests in writing to the studies' utility to the City needs, and the City receives verification of the prior cost and interest rate being charged for the study. The motion was sec- onded by Councilmember Lemons and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 PAGE 7 D. PUBLIC HEARINGS, REPORTS & APPEARANCES D-1 RESOLUTION NO. 25-90 EXTENDING THE WAIVER OF MORRO BAY DOWN- TOWN PARKING REQUIREMENTS FOR AN ADDITIONAL TWO-YEAR PROGRAM TIMEPERIOD TO JUNE 1992 Mr. Farrel stated in June 1988, Council adopted a resolution directing the Community Development Director to grant administra- tive exceptions to the parking requirements in the downtown area for a 2-year period. The Resolution expires in June 1990, and he has received requests from several downtown property owners to have the waiver continued. Mr. Farrel noted only 3 business to date have accessed the waiver option, but stated the parking exceptions have been a factor in business decisions to build or remodel. He said he has also received a request from one busi- ness owner for the Program to be amended to make the exception available to a broader list of uses rather than just retail or food service businesses. Mr. Farrel stated staff recommends approval of an additional 2- year waiver and expand the waiver to include all uses with the exception of residential or over -night accommodations. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed to the public. MOTION: Councilmember Baker moved for the adoption of Resolu- tion No. 25-90. The motion was seconded by Councilmem- ber Lemons and unanimously carried. (5-0) D-2 PUBLIC HEARING ON APPEAL OF PLANNING COMMISSION APPROVAL FOR CONVERSION OF TIME-SHARE CONDOMINIUMS TO FULL-TIME RESIDEN- TIAL USE FOR SEA HARBOR VILLAS. 645 MORRO AVENUE (CUP 47-89; REDMAN, APPELLANT) Mr. Farrel stated the request is for a Conditional Use Permit and Coastal Development Permit to allow the conversion of 13 existing time-share condominiums to a full-time residential use. The Planning Commission approved the request with conditions, and Ms. Elenor Redman filed an appeal to the City Council based on con- cern over conversion from a visitor serving use to a permanent residential use, and increased demand for parking spaces. Mr. Farrel noted because of the conversion to residential use, the applicant is now subject to reimposition of Park -In -Lieu fees which were previously waived due to the visitor serving nature of the use. Also, the difference between time-share and residential water use creates an additional need for 0.52 water equivalen- cies. He stated staff did not propose additional parking requirements because there is no place on the site where addi- tional parking can be installed, and they believe the usage would not generate additional parking demands. Staff recommends MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 PAGE 8 upholding the Planning Commission's decision with the conditions as outlined. Councilmember Baker asked if they will be able to get a water equivalency, or will they have to stand in line for one? Mr. Farrel stated the project involves no new construction, so they do not have to stand in line; however, they will have to wait until Council makes the first quarterly water awards available to the public in 1990. Councilmember Lemons asked if park in -lieu fees were required with this project was initially built? Mr. Wolter stated yes, they have been in effect since 1966. Mayor Sheetz opened the hearing to the public for comments. Ned Rogoway stated he represents the Millers in this matter; he reviewed the history of the project. He noted it is impractical to require additional parking spaces. He stated he had no com- ments on the City's requirements for Park In -Lieu fees or addi- tional water equivalency requirements. Tony Rodrigues, 890 Morro and owner of the Cabrillo Motel, ques- tioned the water equivalency requirements for this project as compared to his own remodelling project. Mayor Sheetz requested he make an appointment with Mr. Farrel to discuss the differences. MOTION: Councilmember Wuriu moved Council deny the appeal, uphold the Planning Commission's decision, and adopt Resolution No. 24-90. The motion was seconded by Coun- cilmember Baker. Mr. Napper suggested the motion include the requirement for addi- tional water ecuivalencies as calculated and noted by staff. Councilmember Wuriu amended his motion to include the applicant be required to earn 0.52 water equivalencies through the present "blend" program to support the con- version to full-time residential condominium use. The amendment was accepted by Councilmember Baker and the motion was unanimously carried. (5-0) D-3 CONTINUED PUBLIC HEARING ON APPEAL OF PLANNING COMMISSION RE -ISSUANCE OF COASTAL DEVELOPMENT PERMIT NO. 95-89R FOR MIMOSA STREET IMPROVEMENT DISTRICT (PRICE. APPELLANT) Mr. Napper stated this item is scheduled tonight as continued from the January 22nd meeting. Also in the agenda packet is a request from the appellant to postpone the item another 2 weeks to March 12th. He stated it is within Council's authority to MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 PAGE 9 grant the extension, and suggested Council allow public comment on the item this evening. A gentleman who said he is a friend of the Prices stated Mr. Price is very ill, and Council should grant the extension. Councilmember Wuriu stated he reviewed a recent FAX to the Coun- cil from the Prices which basically states Mr. Price is still recovering from his illness. He realizes there have been a lot of delays, but there is no question Mr. Price is seriously ill and cannot be at the meeting this evening. He suggested Council allow the extension one more time, and if Mr. Price is not at the next meeting, Council go ahead with the appeal hearing. MOTION: Councilmember Wuriu moved the appeal hearing be contin- ued one more time only to March 12th. The motion was seconded by Councilmember Baker. Councilmember Lemons asked if continuance will delay construc- tion. Terry Orton, project engineer, stated they have not yet effected eminent domain service on Mr. Maclean. As soon as that is accomplished, they can begin within five days on the archaeo- logical studies. The motion carried with Councilmember Lemons voting no. (4-1) Councilmember Lemons asked if public testimony will be heard this evening? Mayor Sheetz stated she will now open the hearing to the public for comments. Councilmember Lemons stated the testi- mony should have been heard before Council action to extend. Twila Breen, 413 W. Mesa, Fresno, stated she objected to another continuance on this item. Mrs. Price is the appellant, not Mr. Price, and Mrs. Price could be here for the appeal hearing this evening. She requested an explanation for all the delays, noting her own expenses to travel to and from Fresno each time. Mayor Sheetz commented anyone has the right to request an exten- sion. Ms. Breen stated she understands that, but the extensions are continually granted. Edward Somogyi, attorney representing Mr. and Mrs. Price, stated Mrs. Price cannot attend because of Mr. Price's second surgery; she needs to be with her husband. He believes there is merit to the extension request. Mayor Sheetz stated she voted in favor of extending the hearing to March 12th, but advised Mr. Somogyi that is the last extension that will be granted. Councilmember Wuriu expressed identical comments. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 PAGE 10 D-4 PUBLIC HEARING ON FINAL ENVIRONMENTAL IMPACT REPORT AND PRO- JECT APPLICATION REGARDING A PROPOSED DEVELOPMENT OF COMMER- CIAL AND VISITOR -SERVING FACILITIES (PACIFIC COAST SHOPPING PLAZA) AS A PHASED PROJECT ON 17.3 ACRES EAST OF HIGHWAY 1 AND MORRO BAY BLVD. (CUP 03-88/CDP 05-88R• WILLIAMS BROTHERS MARKETS, INC., APPLICANT) Mr. Farrel stated the Planning Commission concluded their consid- eration of the Williams Brothers EIR and application at their meeting of February 20th, and voted 4-1 to recommend conditional approval of the concept plan and certification of the EIR. He recommended Council receive public comments this evening on the EIR and project application, close the hearing to the public, and provide staff with direction for final preparation of documents. Mayor Sheetz stated she invited Ron DeCarli of the San Luis Obispo County Area Coordinating Council to the meeting this evening to shed light on the proposed Quintana Road/Morro Bay Blvd. intersection as outlined for the project, as well as costs and what CalTrans funding might be available. Mr. DeCarli stated in reviewing the proposed conditions, he understands the City has identified and the applicant has agreed they will provide major funding for the bridge and the major improvements on the north/south bound Highway 1 ramps to be required as a result of the development. If, however, they are counting on a sharing of funds from the State Department of Transportation, he wants to make sure the City Council is aware any priorities for CalTrans funding has to first go through the San Luis Obispo Area Coordinating Council. In accordance with the policies of the State at this time, the focus is on major inter -regional routes; in our County, that is Highway 101 and Highway 46. Any interchanges required as a result of a major development should be borne by that development proportionate to the benefit from that local development. He emphasized it does not appear there is State funding available for these kinds of improvements listed. Tom Courtney, project representative and architect, stated Bruce Elster of Mid -State Engineers, and Mary Rentz are present on behalf of Williams Brothers to respond to any environmental con- cerns, and Steve Nukes to discuss the economic effects of the project. Mr. Courtney stated he wished to comment on some of the flyers that were sent out to the community with regard to the project. He stated the project consists of 13.8 acres with approximately 10 buildings for a total of 170,000 square feet. He noted this is the same project submitted to the City 2 years ago, and the scale has not changed from that day. Mr. Courtney stated they did show an additional building or 3.8 acres of development towards the upper portion of the project because of its close integration to the first phase. This is Phase II of Phase I involving Building K. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 PAGE 11 For comparison, Mr. Courtney stated the Central Coast Plaza and Madonna Plaza is a regional -type shopping center which consists of approximately 500,000 square feet. The Central Coast Mall by itself consists of 273,000 square feet, which gives Council and the public an idea of the size of this project. He stated the proposed project is a community -sized shopping center and is com- parable to the Paso Robles Shopping Center which is approximately 180,000 square feet, and the Pismo Beach Shopping Center which includes the Farm Boy Restaurant and an interchange of about 150,000 square feet. Mr. Courtney also outlined the condition to realign Willow Camp Creek in the project. Bruce Elster commented the circular passed out in the community included information from a 1984 plan which was defeated by the voters; the plan was substantially modified when presented to and passed by the voters in 1986. He stated, in general, Williams Brothers agrees with the conditions recommended by staff. He noted they have agreed to allow the landscaping feature in the front to be widened with regard to the Willow Camp Creek which will result in more of an open space feature and at a future date would like to have that area included in an open space zone. Mr. Elster stated with regard to the grading, they have substan- tially reduced the amount of grading that will be a part of the project. They deleted their request to include areas to the east of Morro Bay Blvd. in the grading application, in effect reducing about 25% of the material originally estimated to be moved on the project. He stated they would like the second access road final- ized with the next precise concept plan phase because they believe there should be more discussion with regard to the alter- native access on Bolton Drive. Mr. Elster stated they would like to include in the project plan a sewage and disposal plant on -site in order to avoid impacting the City's sewer system. He noted discussions with the Regional Water Quality Control Board on this subject have been received favorably. This would reduce their water requirements by half, and allow them to provide their own landscaping water through treated effluent. They request this concept be included as a condition of approval. Councilmember Baker asked Mr. Nichols if a water treatment plant is feasible on -site? Mr. Nichols stated they have not discussed this item with the applicant at all; however, he believes it is feasible. Mr. Elster indicated this is a preferred condition; if it does not work out, they would connect to the City sewer main. Mayor Sheetz asked what the applicant's intentions were with regard to the Quintana Road interchange funding? Mr. Elster stated the conditions as presented make the applicant responsible for the work attached to the Morro Bay Blvd./Quintana Road traf- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 PAGE 12 fic area including the signals. He understands the City has some funds collected for this purpose, and they would expect the City to contribute those monies too. He said they would be con- tributing their proportionate share to the improvements of remote intersections such as Highway 41, Main/Radcliffe, Main/Quintana, and South Bay Blvd./Quintana. Mayor Sheetz opened the hearing to the public for comments. David Morrow, representing the County Air Pollution Control Board, presented the District's concerns about the project. He noted the APCD charge is to evaluate the potential impacts of any project which will generate significant quantities of air contam- inants. The District's analysis shows the anticipated traffic volumes of 12,000 additional trips per day expected during Phase 1, and 20,000 trips upon completion of Phase 2 will create a sig- nificant permanent increase in vehicle emissions in the area and increase the area's overall pollutant burden. Mr. Morrow reviewed the impacts this will have on the ozone which is a con- cern in California. He added the 475,000 cubic yards of earth to be graded will result in significant emissions of ozone precur- sors and particulate. He said the problem is compounded because the project will be built to accommodate 100,000 people with only 10,000 people living in Morro Bay, which means numerous out -of - the -area trips to Morro Bay. Also, people will not be able to ride bikes or walk to this center because it is across the Highway. Councilmember Lemons asked if Mr. Morrow generated the figures he discussed, or did he obtain them elsewhere? Mr. Morrow said they generally take their figures from the Institute of Traffic Engi- neers handbook. He noted the EIR does not count the traffic cur- rently generated by people currently shopping in Morro Bay, but new traffic to be generated by the project. Councilmember Lemons commented while traffic in Morro Bay may increase as a result of the project, it will not increase overall in the County since those "new" people are currently shopping elsewhere in the County; it will not increase overall County air pollution. Mr. Morrow stated the California Clean Air Act will be requiring reduction of emissions by 5% per year. Half of the emissions are caused by automobiles; there is a 2% increase in traffic for every 1% of growth. Councilmember Baker commented people currently travelling to San Luis Obispo from Cambria and Cayucos may stop in Morro Bay for their shopping, actually reducing the overall County emissions problem. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 PAGE 13 Robert Bonds, Kern Avenue, stated he is concerned about the mag- nitude of the proposal; 66% of the City's population is seniors and they will not be walking or biking to this center. He stressed the seriousness of the City's water situation and the impact the project will have on police and fire services. He cited traffic control as a major problem ten years from now, and compared it to the situation at the entrance to Cuesta College. Ann Freeman, 785 Cabrillo, stated the City cannot handle the pro- ject as proposed; most people do not object to a small shopping center, but what is being proposed will change the character of Morro Bay forever. Measure B did not mandate the project before Council this evening; it will have an adverse impact to commer- cial businesses in the downtown area. Ms. Freeman stated the General Plan was adopted to protect the character of Morro Bay, and Council must reject this project in order to uphold the Gen- eral Plan. Ray Kaltenbach, 473 Sicily, stated most of the people at the Planning Commission hearings were against the project, but the Planning Commission still voted in favor of the project 4 to 1; Mr. Williams has four of the Commissioners in his pocket. He commented on the drought and stated Santa Barbara has cut back 40% on their water usage. Let Williams supply their own water and sewer. Keith Jeffries, 535 Bernardo, stated his presentation is on behalf of other people in Morro Bay who are not able to be here tonight: Ann and Howard Smith, Bernardo Avenue; Jane and Don Bailey, Bernardo Avenue; Jean and Tom White, Arbutus; Cathy and Tom Hayneline, Fresno Ave.; Betty and Lyle Adriance, 381 Fresno; Sigmund and Tom Cantine, Fresno Ave.; Virginia Peraca, Luisita; and Stuart and Myrtle Reid, Bernardo. He questioned why the Williams project is being called Pacific Coast Shopping Center if it is not a regional shopping center? He does not believe the monetary gain in sales tax from this shopping center will offset the detrimental impacts to the City. He discussed the Morro Bay estuary and believes the shopping center will have a negative impact on it. He referred to Mr. Courtney's comments regarding Willow Camp Creek and stated even when dry, the creek performs a function necessary to wetlands; no amount of tax revenue will make up for disrupting this habitat. This is our heritage we are destroying. Thomas Walters, 385 Arbutus, stated he settled in Morro Bay because of the small town atmosphere. He referred to the Oak Park Plaza in Arroyo Grande and believes the Pacific Coast Shop- ping Center will have the same negative impact on the small town character of Morro Bay as it did in Arroyo Grande. He said the proposal exceeds reasonable growth patterns; the City will regret it. • • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 PAGE 14 Gary Gillman, President of the Chamber of Commerce, stated the Board of Directors of the Chamber voted to support the shopping center as approved by the Planning Commission; he outlined sev- eral positive economic factors as reasons for their support: cur- rent sales leakage, will provide jobs, linkage to Downtown and Embarcadero, will revitalize the economy, and will assist in pro- ducing a Business Improvement Association (BIA). Shirley Bianchi, resident of unincorporated area of San Luis Obispo County, stated there is no firm answer as to where the funding for the intersections will come from. She emphasized comments made by David Morrow of the Air Pollution Control Board, and stated she is concerned because of the encroachment into agricultural lands. She cited the decline in downtown Fresno when the Manchester Mall was built, and stated while sales tax revenue may go up, downtown areas historically die. Do not expect the County General Fund to help pay for the improvements needed. Linna Thomas, Coalesce Book Store and Wedding Chapel,. noted Mr. Gillman's comments about a Chamber of Commerce vote was limited to the Board of Directors and the vote was 8 in favor and 4 against. She stated she is a member of the Chamber and does not want anyone thinking she voted to support this project. She is concerned about the size of the project and speed with which Council is asked to make a decision. Enid Blacketer, 680 Napa, stated she lived in Laguna Beach where she witnessed service businesses being priced out of town by high rents so high only the tourist -oriented shops were able to stay. She has also seen many towns where small businesses have moved out enmassA when a mall such as this project was built. She is considering leaving Morro Bay to find another small town where residents appreciate having small, service -oriented businesses with parking; perhaps the City should subsidize small businesses? David Moore, 306 San Gabriel, stated he and his wife are com- pletely against this project; they agree with many points brought up by previous speakers concerning repercussions on wildlife and deterioration of downtown businesses. Leslie Thompson, 520 Estero, stated she grew up in Lompoc and saw what development can to when it is not planned. She objected to the size of the project, and increased traffic congestion. She said she talked to many people over the weekend who say they come to Morro Bay because they like it just the way it is and want to get away from malls and traffic situations. She requested Coun- cil extend consideration on this project for adequate review. Robert Gray, 2961 Juniper Street, agreed with previous speakers, and asked where the customers are coming from to support this project. He noted the developer first stated the project was a i • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 PAGE 15 regional shopping center, and is now calling it a community shop- ping center. He stated a major problem in Morro Bay is the revi- talization of the downtown area; the project should be held to a minimum. Ed Ewing, 238 Pacific, stated the people who voted in favor of the zone change did not believe they had to attend this meeting to stand by their vote. He is in favor of a new shopping center. Lynda Merrill, Sequoia, stated she is pleased to hear from those who voted in favor of the zone change agree with those who believe the project is too large. She is concerned Council have enough time to review the project, and suggested they obtain a time extension from the developer. She presented a petition against the project and stated she obtained the nine signatures in 30 minutes. Anita Judd, 636 Bernardo Ave., stated she spoke to tourists about the project and they said they like Morro Bay because it is a small town; she believes we may lose tourists because of the pro- ject. She is concerned about traffic and air pollution, and would like to see a model on the project to show grading. She requested Council put personal views aside and respond to the people of Morro Bay. Timothy Crawley, 1170 Market Ave., stated it is no inconvenience to wait in line at the current Williams Brothers Shopping Center. He does not want to see Morro Bay developed like Los Angeles; growth for growth's sake is not a valid option. John Parker, 2131 Sunset, urged everyone in the audience to take this opportunity and comment on this project. He said no one has discussed the growth inducing impact of the project. The highway provides a natural buffer between Morro Bay and agricultural land. He said the City has a viable shopping center with the existing one. He suggested the existing Payless/Williams Brothers shopping areas be re -developed rather than leap -frog across the highway. Sue Melvin, 2998 Elm Ave., stated the proposed project is too big, too much. Jeff Green, 710 Main Street, commented on: increased smog and traffic as a result of the project and the water and housing sit- uations; questioned what will happen with the old Williams cen- ter; stated infill has to be accomplished before the City allows outside growth. He stated if Council votes in favor of the pro- ject, they are not representing the people. He wondered if this is a legal in -fill project. Roger Shank, 400 Surf St., agreed with the majority of speakers. He stated every successful business in Morro Bay will consider MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 PAGE 16 moving out of the downtown area into the new shopping center. It seems more reasonable to develop the downtown area. Bruce Risley, 540 Piney Way, stated there are serious flaws in the final EIR and it should not be accepted. He requested Coun- cil read the letter he presented to the Planning Commission dis- cussing this subject before they vote on the project. He noted Jim Maul wrote to the Planning Commission suggesting an alternate Highway overpass; because the developer stated it would be too difficult, no further attention was paid to the suggestion. He said people who prepare EIRs should be bound to consider alterna- tive proposals. He requested Council reject the proposal and send it back to the developer to be redesigned and scaled down. Linda Donnelly, 979 Pacific, stated her husband, Paul Donnelly requested she make comments this evening because he is unable to attend. She stated the impacts of this project are too great and irreversible; it is not consistent with the City General Plan. They are opposed to the location and size of the project. She said if Council certifies the EIR, they are agreeing this is the Superior Alternative. Karen Fallad, new owner of State Farm Insurance Office in Morro Bay, encouraged Council to reject the project as currently proposed. She cited her concerns are the scale of the project, site, water shortage, grading, air quality, downtown deterioration. Susan Mullen, 985 Pacific, stated she voted against the zone change both times it was on the ballot. She believes a shopping center at the proposed location is inappropriate, and preferred Morro Bay maintain its small size. She requested Council reject this project and the EIR. Jim Rodgers, 145 Dana Way, requested Council not be swayed only by the people at the meeting this evening; there are people who vote but do not come to these meetings. He stated Council is here to consider the plan and how it meets the requirements of federal, state and city statutes; not whether or not you are against the shopping center. Hal Toone, Las Tunas, commented on the beauty of Morro Bay as it is, and inferred approving this project is killing the goose that laid the golden egg. Robert Lane, 155 Tahiti, stated he is a member of the Chamber of Commerce but believes the project will be to the disadvantage of the downtown business people. Norma Wolff, 1300 Bolton Dr., said she is concerned about the environment; the City does not need this shopping center. She is concerned Bolton Drive could be opened to accommodate the shop- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 PAGE 17 ping center, and said the developers should have considered more than one entrance. She stated Mr. Williams will not have to live with the consequences; don't foul our nest. Frank St. Denis, 2551 Nutmeg, urged compromise from the emotional speakers this evening. He said a number of downtown businesses have failed in Morro Bay without a shopping center. People should offer suggestions to make the project work for the future benefit of Morro Bay. Morro Bay's tax base is losing ground now in terms of sales tax revenues. Jerry Mullen, 985 Pacific, suggested Council go to Arroyo Grande and see what a shopping center does for a small community. A new shopping center in Morro Bay should be placed where it currently is. He wants to keep Morro Bay the way it is; we don't need big money from outside. Ed Smith, 731 Marina, stated the question of whether or not to have a shopping center at this location is moot; that question was settled by an election. He commented the developer has a formidable list of conditions with which to comply; that is the only item on the agenda to be discussed. Council should be con- cerned the City does not lose this great development, and should remember the people who voted in favor of it don't necessarily come to meetings. Council recessed from 9:22 p.m. to 9:35 p.m. Bill Gowdy, 435 Shasta, stated he first fell in love with the people of Morro Bay in 1944. He wondered why people could not unite and do something progressive for the City; there is always 50% in favor and 50% against something. He commented on the num- ber of people who do not want Morro Bay to grow, and questioned how they would have felt if Morro Bay decided years ago it should not grow; they would not be here now. Quit being doom -sayers. Henry Garcia, 1109 Balboa Street, stated people do not want this size of shopping center; it is not sensible to build on agricul- tural lands. B Rohan, 2501 Elm Avenue, stated the difference between cities depends on the caliber of their planning. There are a lot of pretty cities that are big; it is against nature to grow to infinity. Sally Mingo, Bernardo, stated someone came to her house to dis- cuss this project and he was very misinformed. She commented we are living in a democratic society, and she voted in favor of this project. She said she is as concerned about air pollution as anyone else; we need to support businesses downtown, but com- petition is healthy. Are we really worried about water, or is it political? MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 PAGE 18 Craig Beener, 974 Pecho St., stated it is ironic for Council to consider a project of this magnitude when they just voted against the McDonald's application. He said he is not against develop- ment, just where it is going to be. He asked what tools are available to the public to let the Council know what the people want? Can "feelings" of people be equated into dollar signs? Ralph Agee, 430 LaJolla, commented on the oil tankers in Estero Bay and the emissions from P.G.&E. that will carry over to the project. Pauline Cutler, 908 Pacific, does not want to see downtown Morro Bay die. Barbara Sanders, 939 Main, commended Council on their earlier action to waive downtown parking requirements for an additional timeperiod. She stated when Measure B was voted on, it was a proposal to rezone 30 acres to commercial, there was never any indication the 30 acres would not be developed. She commented if people in Morro Bay obtain jobs at the shopping center, they will not be driving to San Luis Obispo and less pollution will result. She stated people are going out of business in downtown Morro Bay without Mr. Williams' help. Ed Biaggini, 1164 Market St., believes the shopping center will be healthy for Morro Bay; it will not adversely impact downtown business as has been stated. He suggested there are not much wetlands on the site - never has been. Ruth Ann Angus, 705 Anchor, discussed her negative experiences in Torrance with regard to large shopping areas. She believes in progress and voted in favor of Measure B; however, she did not want what happened in Torrance to happen in Morro Bay. Austin Carlton, Senior Planner with CalTrans, stated the devel- oper has worked with CalTrans since the inception of the project. He stated the Conditions of Approval, Section 18, regarding the northbound intersection of Morro Bay Blvd. should also be included in Section 19 to be consistent; it is part of the recon- struction of the total interchange. Also, Condition 18 suggests signals be postponed until traffic warrants are met; CalTrans believes that should be in the initial portion to tie into the other two signals on Quintana Road/Morro Bay Blvd. Quintana Road southbound ramps. Councilmember Lemons asked if the phrase, "as approved by Cal - Trans and the City Engineer" would cover the concern he has? Mr. Carlton clarified his statement. He also commented on Condition No. 29 which discusses a 25-year storm culvert; they design for a 100-year flood and he is not sure the condition will handle the extra runoff from the paved area. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 PAGE 19 Bill Mazzacane, Executive Director of the Chamber of Commerce, stated the 56 conditions set on this project are the reasons the Chamber of Commerce is able to support the project; they have made it a project which will be good for the community. He noted there is never a perfect project. Katherine Walling, Piney Way, reminded Council of the earthquake in San Francisco, and the fact this project is to be constructed on fill ground in a seismic area. She asked where the water for compaction will come from? She opposes it until better answers come. Michael Swettenam, 485 Shasta, requested Council not approve the project; there are a lot of unanswered questions. The project needs to be looked at more closely; it has not been studied enough. Mayor Sheetz stated Council has listened to three hours of public hearing and she will close the hearing after Mr. Diffley speaks. Peter Diffley, 960 Anchor Street, stated there have been numerous contradictions set forth on the size of the project; he would like to know the facts. One grievous omission is the lack of a thorough professional analysis on what will happen in the down- town area. Infill has not been discussed; does it meet the infill regulations? The General Plan should be amended because it does not contain a regional shopping center. Councilmember Baker asked the developer why the shopping center has to be at this location and be constructed on this scale? Bruce Elster stated a number of other sites had been evaluated; the current Williams Brothers site is subdivided and held by mul- tiple owners, as is the Payless site. He reviewed other problems with these sites. The new shopping center needs the scale because of the need to develop the infrastructure to support it. Councilmember Wuriu stated it is clear the people want a shopping center, but do not want a massive development. He asked about approving Phase A minus the department store (Building K). Mr. Elster stated the application is multi -tiered; the EIR process is over the entire area, and they request environmental certifica- tion for the entire project. At this point, they are only look- ing at Phase I of the development for concept approval. Councilmember Baker asked Steve Nukes (a business planning and management consultant who prepared a market area review, economic effects, and mitigation recommendations report for the project) to comment on the statement in his report that the project will enhance the well-being of the community. Mr. Nukes reviewed the findings in his report. He commented a large number of tourists drive through Morro Bay on the highway without turning off; the MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 PAGE 20 attraction of the shopping center that can be seen from the high- way will encourage tourism. People cannot see the ocean from the highway until they are almost out of Morro Bay. If the Center is done correctly, it can anchor business in Morro Bay; shopping malls have competing businesses by nature, but they are successful. Councilmember Odell stated Council will eventually be required to determine if this project meets the infill requirements of Mea- sure F which may require a vote of the people. Mr. Farrel stated specific findings can be found to define the project as infill; that decision should be made soon by Council direction to staff. Mayor Sheetz read from a June 22, 1988 legal opinion by the City Attorney regarding Measure F in which Ms. Skousen stated the pro- ject may be able to meet the definition of infill. Ms. Skousen commented the interpretation of Measure F would be made by the Planning Commission, but it appears that since Williams did the lot split, they meet Measure F. Councilmember Wuriu asked if the Council could have more time to study the item? Mr. Napper stated Council has received final comment on the final EIR. No resolution has been prepared for consideration this evening pending Council direction. He explained the problem of obtaining Council direction this evening, and trying to have doc- umentation ready 72 hours before the tentative meeting scheduled for March 2nd. The City can ask the applicant for additional time; they have granted one extension so far. If no additional time is granted, Council must provide direction tonight to staff for final approval on March 2nd to meet the deadline. Mr. Courtney distributed a letter allowing an extension until March 15, 1990. Ms. Skousen stated there is a problem; the Per- mit Streamlining Act only allows the applicant to grant two extensions. One extension has been granted previously, and this will be the last one. If for some reason Council is unable to make a decision by March 14th, no other extensions can be granted by the applicant; if Council fails to make a decision by March 14th, the application will automatically be granted. The Act allows the applicant to grant two 90-day extensions, and she requested the applicant allow the standard 90-day extension. There was discussion with Mr. Courtney who disagreed with Ms. Skousen's interpretation of the Act. Mr. Courtney then autho- rized a 30-day extension on behalf of Williams Brothers Market, Inc. Council agreed they could make a decision within that timeperiod. Discussion continued regarding the appropriate date for a contin- ued meeting. Council set March 14th at 6:00 p.m. in the Veterans 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 26, 1990 PAGE 21 Memorial Hall at which time Council will give staff direction to prepare final documents. E. CLOSED SESSION None F. ADJOURNMENT MOTION: Councilmember Wuriu moved the Williams Brothers item be continued to March 14, 1990, 6:00 p.m. in the Veterans Memorial Hall. The motion was seconded by Councilmem- ber Baker and unanimously carried. (5-0) The meeting adjourned at 11:10 p.m. Recorded by: L��Z�, ARDITH DAVIS City Clerk Cityof Morro Bay y Pq 595 Harbor St. • Morro Bay, CA 93442.805-772-1214 NOT = C E O F SPEC = AL MEET = NG NOTICE IS HEREBY GIVEN that a Special Meeting of the Morro Bay City Council is hereby called to be held on Friday, 16 February 1990 at 4:00 p.m. in the Morro Bay Community Center Conference Room, 1001 Kennedy Way, Morro Bay, CA. Said Special Meeting shall be for the purpose of holding a Closed Session in accordance with Government Code Section 54956.8, to consider real property negoti- ations; Den-bulk/Coleman Drive area, Morro Bay Devel- opment Co. DATED: February 13, 1990 CITY HALL 595 Harbor Street HARBOR DEPARTMENT 1275 Embarcadero 1 City of Morro Bay, Cali rnia FIRE DEPARTMENT PUBLIC WORKS 715 Harbor Street 695 Harbor Street POLICE DEPARTMENT RECREATION AND PARKS 850 Mom Bay Blvd. 1001 Kennedy Way MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - FEBRUARY 16, 1990 CITY ADMINISTRATOR'S OFFICE - 4:00 P.M. Mayor Sheetz called the meeting to order at 4:00 p.m. Mr. Napper advised he had adjourned the meeting, originally scheduled for the Community Center Conference Room, to this location citing lack of a quorum present at the Community Center. PRESENT: Rose Marie John Baker John Lemons Jeff Odell Tom Wuriu Sheetz Mayor Councilmember Councilmember Councilmember Councilmember STAFF: Gary Napper Judy Skousen PUBLIC CONMEN City Administrator City Attorney None 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 54956.8 to consider real property negotiations; Den-Dulk/Coleman Drive area, Morro Bay Development Company. Council adjourned to Closed Session at 4:01 p.m. and returned to regular session at 4:40 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 4:40 p.m. Recorded GARY A. -NAP Deputy City 9/min214 �� �3, iRga 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 13, 1990 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 Hearings 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 JANUARY 22, 1990 AND THE ADJOURNED REGULAR MEETING OF JANUARY 24, 1990 A-2 RESOLUTION NO. 21-90 AUTHORIZING INSTALLATION OF 20-MINUTE PARKING LIMIT ZONE ON THE SOUTH SIDE OF DUNES STREET, WEST OF MAIN STREET (BOTTLE LIQUOR, 999 MAIN STREET) A-3 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (COSTA) A-4 RESOLUTION NO. 20-90 ACCEPTING 1989 COMMUNITY DEVELOPMENT BLOCK GRANT MONIES AWARDED FOR A HOUSING REHABILITATION LOAN PROGRAM - PHASE II A-5 EXPENDITURE REPORT - DECEMBER 1989 A-6 AWARD OF CITY OFFICE SUPPLIES CONTRACT (BID NO. FD-90-30) A-7 APPOINTMENT OF MOTEL AND RESTAURANT REPRESENTATIVE (ROGER ANDERSON) TO COMMUNITY PROMOTIONS COMMITTEE A-8 PROCLAMATION DECLARING 1990 AS "FIRE SAFETY AND BURN PREVENTION YEAR" A-9 SET HEARING (FEBRUARY 26TH) FOR APPEAL OF PLANNING COMMISSION APPROVAL FOR CONVERSION OF TIME-SHARE CONDOMINIUMS TO FULL-TIME RESIDENTIAL USE FOR SEA HARBOR VILLAS, 645 MORRO AVENUE (CUP 47-89; REDMAN, APPELLANT) 0 A-10 AWARD OF COMMUNITY PROMOTIONS TELEVISION AND RADIO ADVERTISING CON- TRACT TO SUGGS AND LOMBARDI ADVERTISING AND GREGORY GRAY PRODUCTIONS A-11 RESOLUTION NO. 17-90 APPROVING SPECIAL PERMIT FOR USE OF HARBOR FOR CAL POLY CREW CLUB REGATTA (FEBRUARY 24TH AND MARCH 4TH) A-12 RESOLUTION NO. 19-90 CO -SPONSORING THE NOMINATION OF THE SUN -BULLETIN AS MEDIA SENIOR ADVOCATE OF THE YEAR IN COMPETITION SPONSORED BY THE CALIFORNIA COMMISSION ON AGING AND THE CALIFORNIA AGING NETWORK A-13 RESOLUTION NO. 16-90 AUTHORIZING PLACEMENT OF TRAFFIC REGULATORY SIGNS ON STREETS INTERSECTING SAN JACINTO STREET B. UNFINISHED BUSINESS B-1 RESOLUTION NO. 18-90 ESTABLISHING THE 1990 MORRO BAY WATER ALLOCATION/ NEW BUILDING PROGRAM AND WATER AVAILABILITY FEES C. NEW BUSINESS C-1 RESOLUTION NO. 15-90 APPROVING TEMPORARY LEASE AGREEMENT WITH ASSOCIATED PACIFIC CONTRACTORS, INC., FOR LIMITED MOORING USE OF LEASE SITE 49/49W (401 EMBARCADERO) C-2 REPORT ON FORMATION OF TRIHALOMETHANES (THMs) IN KINGS AVENUE WATER TANK AND RECOMMENDATIONS FOR DISPOSITION OF WATER; AND, REPORT ON NITRATES AND BLENDING PROGRAM FOR WATER FROM WELLS 9A AND 10A IN CHORRO BASIN D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 PROPOSED ORDINANCE TO ESTABLISH LOCAL PERMIT REQUIREMENTS FOR COMMERCIAL MOTION PICTURE PRODUCTIONS, TELEVISION PRODUCTIONS, AND STILL PHOTOGRAPHY ON CITY PROPERTY D-2 APPEAL HEARING FOR PROTEST BY PROPERTY OWNERS OF 1989 WEED ABATEMENT CHARGES D-3 CITIZENS' REQUEST TO DISCUSS CONTINUANCE OF APPEAL HEARING AND COST DELAYS TO IMPLEMENT PROPERTY OWNERS -INITIATED MIMOSA STREET ASSESSMENT DISTRICT AND RELATED IMPROVEMENTS (CDP 95-89R) D-4 COUNCILMEMBER AND PROPERTY OWNER REQUESTS FOR RECONSIDERATION OF COUNCIL ACTION TO RESCIND IMPLEMENTATION OF NEW WATER RATE SCHEDULE TO FUND SUPPLEMENTAL WATER PROJECTS E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY NEGOTIATIONS A. LEASE SITES 87-88W, 89/89W (GUNTHER; 833-845 EMBARCADERO B. DEN-DULK/COLEMAN DRIVE AREA; MORRO BAY DEVELOPMENT COMPANY 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 - FEBRUARY 13, 1990 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 Ralph Prince Louise Burt Alan Davis Ardith Davis Forrest Henderson Nick Nichols Steve Wolter City Administrator City Legal Counsel Finance Director Harbor Director City Clerk Asst. City Admin. Public Works Dir. Rec. & Parks Dir. Mayor Sheetz gave the invocation, and Councilmember Baker led the Pledge of Allegiance. 1. Charles Palmer, 485 Estero Avenue, commented on the lack of restaurants open on the Embarcadero for breakfast and suggested the City work with the Restaurant Association to do something about it. 2. Anne Freeman, 785 Cabrillo, asked the when General Plan is due for amendment, and will it be necessary to amend the Gen- eral Plan if the Williams Brothers Market project is approved? Mayor Sheetz requested Mr. Farrel respond in writing to Ms. Freeman's questions. DECLARATION OF FUTURE AGENDA ITEMS None. A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF JANUARY 22, 1990 AND THE ADJOURNED REGULAR MEETING OF JANUARY 24, 1990 Mr. Napper recommended Council approve the minutes as submitted. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 13, 1990 PAGE 2 A-2 RESOLUTION NO. 21-90 AUTHORIZING INSTALLATION OF 20-MINUTE PARKING LIMIT ZONE ON THE SOUTH SIDE OF DUNES STREET, WEST OF MAIN STREET (BOTTLE LIQUOR, 999 MAIN STREET) Mr. Napper recommended Council adopt Resolution No. 21-90. A-3 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (COSTA) Mr. Napper recommended Council deny the claim, and authorize the City Clerk to execute and mail the rejection letter. A-4 RESOLUTION NO. 20-90 ACCEPTING 1989 COMMUNITY DEVELOPMENT BLOCK GRANT MONIES AWARDED FOR A HOUSING REHABILITATION LOAN PROGRAM - PHASE II Mr. Napper recommended Council adopt Resolution No. 20-90. A-5 EXPENDITURE REPORT - DECEMBER 1989 Mr. Napper recommended Council approve the report as submitted. ✓A-6 AWARD OF CITY OFFICE SUPPLIES CONTRACT (BID NO. FD-90-30) Mr. Napper recommended Council waive the bid irregularities and award Bid No. FD-90-30 for the purchase of office supplies to Standard Office Supply of Los Osos. A-7 APPOINTMENT OF MOTEL AND RESTAURANT REPRESENTATIVE (RODGER ANDERSON) TO COMMUNITY PROMOTIONS COMMITTEE Mr. Napper recommended Council appoint Rodger Anderson to be the Motel and Restaurant Association representative on the City's Community Promotions Committee. A-8 PROCLAMATION DECLARING 1990 AS "FIRE SAFETY AND BURN PREVEN- TION YEAR" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-9 SET HEARING (FEBRUARY 26TH) FOR APPEAL OF PLANNING COMMIS- SION APPROVAL FOR CONVERSION OF TIME-SHARE CONDOMINIUMS TO FULL-TIME RESIDENTIAL USE FOR SEA HARBOR VILLAS. 645 MORRO AVENUE (CUP 47-89; REDMAN, APPELLANT) Mr. Napper recommended Council set 26 February 1990 as the hear- ing date for the appeal, and instruct staff to prepare the appro- priate notices and reports. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 13, 1990 PAGE 3 A-10 AWARD OF COMMUNITY PROMOTIONS TELEVISION AND RADIO ADVERTIS- ING CONTRACT TO SUGGS AND LOMBARDI ADVERTISING AND GREGORY GRAY PRODUCTIONS (FEBRUARY 24TH AND MARCH 4TH) Mr. Napper recommended Council award the contract to Suggs and Lombardi Advertising and Gregory Gray Productions in an amount not to exceed $9,000; and, the City Administrator be authorized to prepare and execute a Contract for Services. A-11 RESOLUTION NO. 17-90 APPROVING SPECIAL PERMIT FOR USE OF HARBOR FOR CAL POLY CREW CLUB REGATTA Mr. Napper recommended Council adopt Resolution No. 17-90. A-12 RESOLUTION NO. 19-90 CO -SPONSORING THE NOMINATION OF THE SUN -BULLETIN AS MEDIA SENIOR ADVOCATE OF THE YEAR IN COMPE- TITION SPONSORED BY THE CALIFORNIA COMMISSION ON AGING AND THE CALIFORNIA AGING NETWORK Mr. Napper recommended Council adopt Resolution No. 19-90. A-13 RESOLUTION NO. 16-90 AUTHORIZING PLACEMENT OF TRAFFIC REGU- LATORY SIGNS ON STREETS INTERSECTING SAN JACINTO STREET Mr. Napper recommended Council adopt Resolution No. 16-90. Councilmember Baker read the Proclamation declaring 1990 as "Fire Safety and Burn Prevention Year". He said the incident of fires throughout the country is increasing and, along with it, deaths related to fires. He noted when smoke alarms were first required in homes the number of deaths by fire decreased; however, people have not consistently kept them in working order and more deaths are now occurring. He suggested fire sprinklers in homes are also needed. Councilmember Lemons noted Resolution 16-90 in Item A-13 does not include installing a stop sign on San Jacinto Street at Elm Street as recommended by the Street Advisory Committee. He ques- tioned if this is Council's intent? Councilmembers Wuriu and Baker stated they favored the Resolution as proposed by staff not to stop traffic on San Jacinto Street. MOTION: Councilmember Baker moved for approval of the Consent Calendar as recommended by the City Administrator. The motion was seconded by Councilmember Wuriu and unani- mously carried. (5-0) Mr. Napper introduced attorney Ralph Prince who is providing legal counsel this evening in place of Judy Skousen. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 13, 1990 PAGE 4 B. UNFINISHED BUSINESS B-1 RESOLUTION NO. 18-90 ESTABLISHING THE 1990 MORRO BAY WATER ALLOCATION/NEW BUILDING PROGRAM AND WATER AVAILABILITY FEES Mr. Napper stated this resolution formally sets forth Council's action at their last meeting regarding the water allocation pro- gram and water availability fees for 1990. He noted allocation of the first quarter's water equivalencies will not occur until the City Council considers such at their March 26th meeting. MOTION: Councilmember Wuriu moved for the adoption of Resolu- tion No. 18-90. The motion was seconded by Councilmem- ber Baker and unanimously carried. (5-0) C. NEW BUSINESS C-1 RESOLUTION NO, 15-90 APPROVING TEMPORARY LEASE AGREEMENT WITH ASSOCIATED PACIFIC CONTRACTORS, INC.. FOR LIMITED MOOR- ING USE OF LEASE SITE 49/49W (401 EMBARCADERO) Alan Davis stated Lease Site 49/49W previously received Council tentative approval for development of an environmental research center. However, it may take the Morro Bay Estuary Center, Inc., three years to obtain financing to proceed with the project. In the interim, Associate Pacific Constructors, Inc. requests they be allowed to use the site for marine equipment and mooring of vessels. Associated Pacific currently leases property next to Lease Site 49/49W. Mr. Davis reviewed the proposed lease which provides for a 30 day termination notice. Mr. Davis said staff has made arrangements to exchange the $2,000 rental fee for installation of pilings needed within the harbor. He recommended Council approve Resolution No. 15-90 awarding an interim lease for Lease Sites 49/49W to Associated Pacific Con- structors, Inc. for a maximum term of three years. MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 15-90. The motion was seconded by Councilmem- ber Wuriu and unanimously carried. (5-0) C-2 REPORT ON FORMATION OF TRIHALOMETHANES (THMs) IN KINGS AVENUE WATER TANK AND RECOMMENDATIONS FOR DISPOSITION OF WATER: AND, REPORT ON NITRATES AND BLENDING PROGRAM FOR WATER FROM WELLS 9A AND 10A IN CHORRO BASIN Mr. Nichols reviewed the written report on how trihalomethanes (THMs) formed in the Kings Avenue Water Tank which caused the Department of Health Services to prohibit the City from dis- tributing the water in its present form. Rather than dumping the water, Mr. Nichols recommended the water be blended by pumping portions into other City water tanks thereby rendering the THMs MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 13, 1990 PAGE 5 below the maximum allowable. This is the safest, and most eco- nomical approach to using the 620,000 gallons of water presently in the water tank. Councilmember Wuriu asked how much this procedure would cost? Mr. Nichols stated there would be no out-of-pocket expenses; just fire truck pumping time. He noted the Department of Health Ser- vices is in agreement with this process. Mayor Sheetz asked if the water tank would have to be treated after the water is gone? Mr. Nichols stated no, the Department of Health Services said if the water is dispersed, it will no longer be contaminated; there was excessive chlorine residue left in the tank after the contractor cleaned it. Councilmember Odell commented the water really is not contami- nated, it just has too many THMs in it to comply with levels man- dated by the State. Mr. Nichols agreed. MOTION: Councilmember Baker moved the Department of Public Works Department, in cooperation with the Fire Depart- ment using a fire pump truck, begin blending the water as soon as possible. The motion was seconded by Coun- cilmember Wuriu and unanimously carried. (5-0) Mr. Nichols then explained the condition concerning the excessive nitrates in Wells 9A and 10A in the Chorro Creek Basin, and staff's progress in blending this water for human consumption. He emphasized the water delivered to customers along Chorro Creek Road never equaled or exceeded the maximum allowable by the State. He recommended a new service line be installed to provide the four services on Chorro Creek Road with water from Well No. 8 in addition to the other wells to further reduce the nitrate lev- els. This will cost approximately $20,000 and will be requested by staff during the 1990/91 Budget cycle. Councilmember Lemons stated according to the staff report the Environmental Protection Agency and the Department of Health Ser- vices limit nitrates in drinking water to 45 milligrams per liter, while foods such as spinach and lettuce contain several thousand parts per million. He asked why it's not illegal to sell or eat those foods? Councilmember Odell suggested perhaps scientific people are looking at cumulative amounts consumed and require control where they are able. Councilmember Wuriu referred to the charts provided in the staff report noting there is a great disparity between the nitrate readings at different times. Mr. Nichols stated during drought conditions, water quality suffers in certain locations and wells. Councilmember Lemons noted the Department of Health Services requires testing every 2 to 3 years; the City tests -1-2- times per 4* *Corrected at meeting of 2-26-90 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 13, 1990 PAGE 6 year. He requested Mary Phillips and Nancy Bast receive copies of the reports. No action was taken on this item; Mary Phillips was provided copies of the two staff reports at the meeting. D. PUBLIC HEARINGS, REPORTS & APPEARANCES D-1 PROPOSED ORDINANCE TO ESTABLISH LOCAL PERMIT REQUIREMENTS FOR COMMERCIAL MOTION PICTURE PRODUCTIONS, TELEVISION PRODUCTIONS, AND STILL PHOTOGRAPHY ON CITY PROPERTY Mr. Wolter reminded Council they had reviewed this item in Decem- ber 1989, and noted the proposed ordinance contains Council com- ments from that meeting. The proposed ordinance is modeled after the one adopted by the County of San Luis Obispo. He stated the ordinance is not scheduled for first reading this evening because the California Film Commission must first review and comment as required by AB 4680. After CFC review, staff will submit the ordinance for first reading. Mr. Wolter noted the San Luis Obispo County Film Commission informed the City they are finding it difficult to obtain insurance to indemnify the City from claims relating to inverse condemnation as required in the pro- posed ordinance. They requested "inverse condemnation" be elimi- nated from the indemnification requirements. Councilmember Lemons questioned the prohibition of use of City property for "still photography" without a permit; he asked if this would prohibit the general public from taking pictures? Mr. Wolter referred to Section 8.32.030, and stated the section does not apply to the "use of public property which is indistinguish- able from allowed general public use which does not interfere with public or City use of the property". Councilmember Wuriu asked if a road is to be closed for several hours to film a production, who will pay for the policing costs? Mr. Wolter stated there will be a condition in the permit for providing traffic control; the permittee will pay for costs incurred. Councilmember Lemons objected to eliminating the "inverse condem- nation" requirement in the indemnification procedures. If there is a possibility the City could be sued for inverse condemnation, the indemnification should be required. He suggested leaving it in, and letting the California Film Commission respond to the requirement. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. Councilmembers agreed the provision for inverse condemnation indemnification should be included in the ordinance, and the pro- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 13, 1990 PAGE 7 posed Ordinance be submitted to the California Film Commission as -is. No further action was taken. D-2 APPEAL HEARING FOR PROTEST BY PROPERTY OWNERS OF 1989 WEED ABATEMENT CHARGES Mr. Nichols reviewed the annual weed abatement program. He stated one written protest had been received from Mr. E. H. Yoshimoto, and staff is recommending he be reimbursed $130.94 due to late notification caused by change in property ownership. Mr. Nichols stated 750 parcel owners were informed to abate weeds, and the City contractor actually abated 151 parcels. Mayor Sheetz opened the hearing to the public for comments or protests; there were no comments or protests and the appeal hear- ing was closed. MOTION: Councilmember Lemons moved the filing period for appeals to the 1989 Weed Abatement Program be closed; staff be authorized to release the retention monies ($2,064.28) to the contractor, Jack Bridwell; and, that Mr. E.H. Yoshimoto (APN 68-240-03) be reimbursed $130.94 from the City's weed abatement administration fund. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) D-3 CITIZENS' REQUEST TO DISCUSS CONTINUANCE OF APPEAL HEARING AND COST DELAYS TO IMPLEMENT PROPERTY OWNERS -INITIATED MIMOSA STREET ASSESSMENT DISTRICT AND RELATED IMPROVEMENTS (CDP 95-89R) Mr. Napper stated he received a FAX letter from the Prices today, copies of which were provided to Council this evening, requesting this hearing be postponed because they are unable to attend. They also requested their appeal hearing on this subject, which was postponed from January 22nd to February 26th, be further postponed to March 12th. Mr. Napper stated he also received a telephone call this afternoon from the Prices attorney, Lloyd Somogyi, requesting tonight's hearing be postponed. He informed Mr. Somogyi the Prices have no standing in the item scheduled this evening as it is a request by property owners to air their concerns regarding the Mimosa Street Assessment District. He also advised Mr. Somogyi Council will not be able to act on the request to postpone the February 26th appeal hearing to March 12th until the February 26th meeting; the appeal hearing is not agendized tonight for action. Terry Orton, project engineer, responded to certain questions asked by Mr. Lamouria in his letter of February 4th. He empha- sized the main roadblock to this project has been the opposition of the Prices and Mr. Maclean. At this point, the City has been unable to serve notice of condemnation on the Prices and Mr. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 13, 1990 PAGE 8 Maclean, and is in the process of serving notice by newspaper, all of which takes time. Mr. Orton noted while the costs of the assessment district are increased by the opposition of the Prices, the Prices are also paying for these increased costs along with the other assessment district participants, as well as paying their own attorney to attempt to stall the project. Mayor Sheetz asked if it is the City's fault the formation of the district has been delayed? Mr. Nichols stated no; State law requires if property owners wish to have public improvements con- structed, the City is obligated to go forward with the improve- ments. He stated, however, all property owners are also entitled to due process, and the Prices are accessing those avenues. The City has fulfilled its responsibility to the property owners. Mr. Orton noted selling the bonds was a lengthy process. Councilmember Wuriu stated from the beginning the Prices have been in opposition to this assessment district; it should have been assumed they were not going to cooperate. Mr. Orton com- mented this case is unusual in that the Prices were against the project ever proceeding. In other cases, the objections of prop- erty owners stem from disagreement with the appraisal of their property. Mayor Sheetz opened the hearing to the public for comments. Mary Phillips, 2645 Ironwood, objected to Council allowing com- ments by the project engineer before she was allowed to read a letter from the Prices requesting this hearing be postponed. She read the letter she received from the Prices. Mr. Napper stated a copy of this letter had been given to Council at the beginning of the meeting. Mayor Sheetz stated she talked to Mrs. Price over the weekend and explained to her the item this evening is to allow property own- ers of the assessment district to speak per their request, and Council will not be taking action on the item. Richard Atchley, 2059 Ironwood, questioned whether or not the property to be taken from the Prices is actually their property. Mr. Nichols stated Mr. Price has landscaping in the roadway area which will have to be removed. Chet Amyx, 550 Mimosa, stated he has lived in the district longer than anyone, including the Prices. He stands to lose the most by not getting the street finished. He asked if there was something the Council can do to help the property owners complete the con- struction of the street? MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 13, 1990 PAGE 9 Lloyd Lamouria, 565 Mimosa, stated the property owners have com- plied with every direction of the City to assist project com- mencement. There has not been timely completion of contractual the agreements the City entered into with consultants. He said it is time the Council, staff, and attorney began acting in the best interests of the funds entrusted into their care. There are been continual requests for delays which have been granted. Mr. Lamouria stated on the night before Mr. Price last requested a delay, Mr. Lamouria watched him load his van and then drive away Monday morning. He said he personally offered to serve Mr. Price with the condemnation papers. Mr. Orton stated a person who has an interest in the matter can- not effect service. Twila Breen, Fresno resident and property owner on Mimosa, stated her father died waiting for this assessment district to be formed and paved. Her family would like to live on Mimosa Street, but are currently #301 on the building permit waiting list because of delays in this project. Ms. Breen quoted from a letter dated April 4, 1986 from Mr. Haight, attorney for the project, to City Attorney Judy Skousen advising the City will have to get involved with the condemnation of the roadway, pointing out the City knew in 1986 this was going to be a problem. She also quoted from a May 22, 1985 letter from Mr. Napper outlining seven steps the property owners had to follow; all steps were complied with. Mr. Breen stated she requested a staff report for this evening's meeting; she had no intention of presenting anything to Council. Mr. Napper stated there seems to be a misunderstanding relating to individual requests for Council agenda time; according to the Municipal Code, person(s) requesting an item be presented to Council are to provide any documentation, letters, reports, etc. in advance of the item. Staff prepares reports from citizen -ini- tiated items at the direction of Council. Mr. Napper noted in anticipation of the item, he requested Mr. Orton attend the meet- ing to answer questions which may be raised. Mayor Sheetz closed the hearing to the public, and noted Council will not take action on this item. Councilmember Lemons questioned the process to serve papers on Mr. Price and Mr. Maclean and how it would affect the requested postponement of the appeal hearing. Mr. Orton stated he would be able to tell Council on February 26th if the process to serve Mr. Maclean has been completed; he advised the newspaper publication will be completed in Mr. Price's case before that date. If legal service has been effected by February 26th, the project will be further delayed by postponing the February 26th appeal hearing to March 12th. He stated if Mr. Price is legally served, the City can obtain permission to go on his property within five days for an archaeologist to begin that phase of the assessment district MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 13, 1990 PAGE 10 study. Mr. Napper noted without the valid re -issuance of the Coastal Development Permit now on appeal before the Council by the Prices, no actual field work can commence on the project. D-4 COUNCILMEMBER AND PROPERTY OWNER REQUESTS FOR RECONSIDERA- TION OF COUNCIL ACTION TO RESCIND IMPLEMENTATION OF NEW WATER RATE SCHEDULE TO FUND SUPPLEMENTAL WATER PROJECTS Mr. Napper stated Council, at their last meeting, took action to rescind previous action to establish a tierless water rate sched- ule and implement a $7.50 monthly water system charge. On Febru- ary 1st Councilmember Lemons filed a request for reconsideration of the item; and, on February 2nd, Morro Bay property owner Robert Enns filed a request for similar action. Robert Enns, 3421 Ocean Blvd, Cayucos, stated Council considered their action to rescind the new rate schedule at a late hour, and he was confused as to the direction Council was pursuing. He also received conflicting interpretation on final Council action. With the declining quality of water and continued increase in demand by others, he believes Morro Bay can no longer rely on the status quo. He requested Council re-agendize the matter and give it proper consideration. Ray Kaltenbach, 473 Sicily, objected to Mr. Enns comments since he does not live in Morro Bay. He believes Council took appro- priate action to rescind the new water rate schedule. Mary Phillips, 2645 Ironwood, stated the City's water tastes bad. The City should filtrate the nitrate groundwater and re -use the sewage effluent by tertiary treatment. Mayor Sheetz stated the question before Council is whether or not to agendize this item for reconsideration. Anne Freeman stated if Council decides to reschedule the matter, she would appreciate it being scheduled at a regular Council meeting [on Monday night]. Mayor Sheetz closed the hearing to the public. Councilmember Lemons stated he agrees there was a great deal of confusion when Council last acted on this subject and the matter should be reagendized. MOTION: Councilmember Lemons moved Council action to rescind implementation of the new water rate schedule to fund supplemental water projects be re-agendized for either the Council meeting of February 26th or March 12th. The motion was seconded by Councilmember Wuriu. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 13, 1990 PAGE 11 Mr. Napper stated the agenda for the February 26th meeting is quite full and includes the Williams Brothers project EIR; he requested Council agendize the item for March 12th. Councilmember Lemons amended his item on the March 12th agenda accepted by Councilmember Wuri unanimously carried. (5-0) E. CLOSED SESSION motion to schedule the The amendment was u and the motion was E-1 GOVERNMENT CODE SECTION 54956.8. REAL PROPERTY NEGOTIATIONS A. LEASE SITES 87-88W AND 89/89W (GUNTHER; 833-845 EMBARCADERO) B. DEN-DULK/COLEMAN DRIVE AREA; MORRO BAY DEVELOPMENT COMPANY MOTION: Councilmember Odell 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 to consider real property negotiations in accordance with Government Code Section 54956.8 in the matters of a) Lease Sites 87-88W and 89/89W (Gunther; 833-345 Embarcadero); and b) Den-bulk/Coleman Drive area, Morro Bay Development Company. Council adjourned to Closed Session at 8:02 p.m. and returned to regular session at 8:59 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 8:59 p.m. Recorded by: -�M�Zlee'ZA�a-, ARDITH DAVIS City Clerk c/min213 6 6 6 City Of Morro tay 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 - JANUARY 24, 1990 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF 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 Hearings 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. D-6 PUBLIC HEARING FOR APPEAL OF PLANNING COMMISSION DENIALS FOR A FAST- FOOD DRIVE -THROUGH RESTAURANT AT 940 MORRO BAY BLVD. (CUP 46-89/CDP 69-89R), ADDITIONAL ON -SITE SIGNAGE (SIGN EXCEPTION PERMIT 02-89); AND OFF -SITE SIGNAGE AT 899 QUINTANA ROAD (SIGN EXCEPTION PERMIT 04-89); McDONALD'S CORPORATION, APPELLANT D-7 RECONSIDERATION OF REVISED WATER RATE SCHEDULE AND $7.50/MONTHLY SERVICE CHARGE ENACTED BY COUNCIL TO RAISE REVENUES FOR SUPPLEMENTAL WATER PROJECTS D-8 CONTINUED PUBLIC HEARING ON 1989 ANNUAL WATER REPORT AND CONSIDERATION OF RESIDENTIAL CONSTRUCTION AND WATER ALLOCATIONS FOR CALENDAR YEAR 1990 E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY NEGOTIATIONS, LEASE SITE 87-88W,89/89W (GUNTHER; 833-845 EMBARCADERO) E-2 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION, MODERN COMMERCIAL KITCHENS. INC VS. BUNNELL CONSTRUCTION. INC., #66022 AND EVENSON. INC. VS, BUNNELL CONSTRUCTION. INC. AND THE CITY OF MORRO RAI, #66753 E-3 GOVERNMENT CODE SECTION 54956.9(B)(1), POTENTIAL LITIGATION 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 ADJOURNED REGULAR MEETING - JANUARY 24, 1990 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the adjourned meeting to order at 6:00 p.m. ROLL CALL PRESENT: Rose Marie John Baker Jeff Odell John Lemons Tom Wuriu Sheetz Mayor Councilmember Councilmember Councilmember Councilmember STAFF: Gary Napper Judy Skousen Louise Burt William Farrel Nick Nichols Elane Novak Larry Red City Administrator City Attorney Finance Director Comm. Dev. Director Pub. Works Director Deputy City Clerk Associate Planner Mayor Sheetz announced the Sun -Bulletin had printed a 7PM meeting time rather than 6PM as Council scheduled. She suggested Council consider Closed Session items at this time so those not arriving until 7PM will be able to participate in the scheduled items. MOTION: Councilmember Odell made a motion to adjourn to closed session. Councilmember Baker seconded the motion which was unanimously carried. (5-0) Mayor Sheetz announced Council is adjourning to Closed Session to consider the following items: Government Code Section 54956.8, real property negotiations, Lease Site 87-88W, 89/89W (Gunther; 833-845 Embarcadero) Government Code Section 54956.9(a), pending litigation, Modern Commercial Kitchens Inc vs Bunnell Construction Inc., #66022 and Evenson. Inc. vs. Bunnell Construction. Inc and the City of Morro Bay, #66753 Council adjourned to Closed Session at 6:00 p.m. and returned to regular session at 6:52 p.m. PUBLIC COMMENT 1. June Hofstead, 690 Elena, stated she is speaking on behalf of friends to express support of the Williams Brothers project. Some of the people who wanted her to express support MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JANUARY 24, 1990 PAGE 2 for this project are disabled, or do not have cars and would like to see shopping within easy reach of Morro Bay residents. She also supports the project. D-6 PUBLIC HEARING FOR APPEAL OF PLANNING COMMISSION DENIALS FOR A FASTFOOD DRIVE -THROUGH RESTAURANT AT 940 MO RO BAY BLVD. (CUP 46-89/CDP 69-89R), ADDITIONAL ON -SITE SIGNAGE (SIGN EXCEPTION PERMIT 02-89); AND OFF -SITE SIGNAGE AT 899 QUINTANA ROAD (SIGN EXCEPTION PERMIT 04-89); MCDONALD'S CORPORATION, APPELLANT Mr. Larry Red, Associate Planner, indicated the three items under consideration will be handled separately, the first of which would be the Conditional Use Permit. Mr. Red indicated minor changes had been made in the specifications regarding lighting, additional landscaping, and a provision for bicycle parking. Mr. Red indicated primary concerns are parking, air quality due to the drive-thru at the restaurant, solid waste generation, and site selection, along with restructuring of the Quintana Road/Morro Bay Boulevard intersection; two traffic lights at this location will be required. Arend Collen, McDonald's representative, said the location is appropriate for McDonald's, although the Planning Commission determined it was not. The air pollution problem being cited because of the drive-thru portion of the proposal caused Mr. Collen to review statistics from a 1982 air pollution study. He said the statistics are still valid; and, with the newer mecha- nisms on cars to control emissions, the air pollution problem is even less. Mr. Collen indicated McDonald's elsewhere has researched and built special incinerators for disposal of their solid waste and they also use recycled paper. He said the restaurant would par- ticipate in any community -wide recycling plan. Mr. Collen said they agreed with the Planning Commission and staff regarding their signage requirements except for the off - site sign. Mr. Collen indicated off -site signage is needed to alert customers in advance of their location so they can make a safe exit to the restaurant. Larry Messerschmidt, Traffic Engineer for McDonald's, reviewed the engineering design of the drive-thru lane and indicated it will stack 13 cars; he also noted the by-pass lane for vehicles exiting McDonald's will enable traffic to move smoothly. Tom Montgomery, Traffic Engineer and Consultant for the project, outlined the proposed traffic regulation improvements to be made at the Quintana Road/Morro Bay Boulevard intersection, and said MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JANUARY 24, 1990 PAGE 3 the report basis its statistics on the impact from McDonald's as well as the projected Williams Brothers shopping area traffic. Mr. Montgomery said traffic counts for the report were made in non -summer months; when Cal Trans pointed this out, McDonald's increased the figures by 20% to more accurately reflect summer traffic volume. Mr. Montgomery stated even though two traffic lights are proposed close together, he did not believe it would impact traffic patterns with the restaurant and the signals will really work as one by slot -clearance interval signals. Further, there will be left turn lanes in and out of McDonald's, left turn lanes on Morro Bay Blvd., and two lanes of traffic each way. He noted Morro Bay Blvd. at this location is presently way below traffic design standards. Councilmember Lemons asked what are the signal phasing priorities at the intersection as pertains to the actual signal light? Mr. Montgomery stated traffic adjusted signals are actually imbedded in the pavement and respond to traffic demands. Councilmembers questioned the length of left turn lane, if there was a pedestrian button, and if the signal will also be activated by cars leaving McDonald's? Mr. Montgomery said there will be a pedestrian button which will allow the appropriate number of sec- onds for someone to cross the street, the light will activate when a car is leaving McDonald's, and the left turn lane is approximately 130 feet long which will allow 6 vehicles in the line at one time. He explained the light intervals are set in such a way as to allow an appropriate holding area between the lights. He noted again the Williams Brothers project was consid- ered in this traffic study and the intersection will be able han- dle traffic from both projects. Mr. Montgomery said there is no provision for left turns onto minor streets but there should be even less problem making these turns than there is with no lights. He reiterated his opinion a signal is needed there now, with or without McDonald's Restaurant. Mayor Sheetz opened the hearing to the public for comments. Charles Palmer, 485 Estero, stated it sounds as though the light controls for the signals would be set in concrete. He expressed the concern if something went wrong with the control system, it should be easy to access the controls to make changes. He stated there should be an agreement between the City and McDonald's requiring McDonald's to be financially responsible for part of the maintenance on the lights. Lynda Merrill, 391 Sequoia, said the Planning Commission is doing a fine job and requested Council uphold their decision and not allow McDonald's. Her main concern is traffic which she believes would become a "nightmare" on Morro Bay Blvd. and would also force more traffic onto Main Street. MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JANUARY 24, 1990 PAGE 4 Ray Kaltenbach, 473 Sicily, said this particular intersection has always been a problem and engineers can say whatever they want, but it will still be a mess. Janice Peters, 635 Kern Avenue, said the proposed location of McDonald's will be injurious to the community at large, and stated two stop lights located within a block of each other does not seem like a good idea. She said living on Kern Avenue has its problems now as far as accessing Morro Bay Blvd. and believes it can only get worse. She expressed concern regarding solid waste from this project; even if McDonald's has an incinerator on site, there are people who take their food down to the waterfront and leave their garbage there. She was concerned if McDonald's is allowed off -site signage, other restaurants such as Foster Freeze and Burger King may request the same privilege; we don't need this fast-food competition. Carol Winston, 650 Avalon, said Burger King is just a block from the proposed McDonald's site; noon traffic, which is already bad, will become atrocious. Nancy Severson, 1185 Balboa Street, said McDonald's would detract from, rather than add to, Morro Bay, especially at this entrance to town. She believes the location is a real problem. Nancy Bast, 450 Fairview, said the report does not deal realisti- cally with the problem as it has not addressed the hours the restaurant will be open, and whether the lights will be on all the time. She said the 20% figure for summer traffic as opposed to winter traffic is not realistic. Randy Gonzales, 740 Kern Avenue and restaurant manager of Burger King, was opposed to McDonald's noting: they are not local peo- ple; increased traffic problems; litter on the site; and the restaurant would be the first thing people see and smell when they come into town. Dennis Adams, 801 Piney Way, objected to the traffic pattern; the traffic flows would cut some businesses off. While the lights and design may meet the needs of McDonald's, they do not meet the needs of the citizens of Morro Bay. True intersection overload is not being disclosed. June Hofstead, 690 Elena, stated she served 8 years on the Plan- ning Commission, and is in favor of McDonald's. She said the Planning Commission discussed a McDonald's project at this site 13 years ago; at that time there was no restaurant serving break- fast in Morro Bay. She said one of McDonalds' assets is its affordability; they will not change the ocean or the size of the town and the people should listen to the experts; we don't know anything about traffic. MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JANUARY 24, 1990 PAGE 5 Frank St. Denis, 2551 Nutmeg, spoke on behalf of the Chamber of Commerce and in favor of the McDonald's project. He referred to articles concerning McDonald's plan to recycle plastic. He felt this is an indication of Mcdonald's leadership in this field. Mr. St. Denis noted local banks and savings and loan establish- ments have drive-thrus. The traffic plan cannot be any worse than the 5 stop signs already there. Fred Smith, 225 Beach, spoke in favor of McDonald's noting the many things they do for the children of America. Henry Garcia stated he does not want McDonald's downtown; it will attract high school students and create a feeling of too much commercialism for the City of Morro Bay. He does not believe this type of business is right for Morro Bay and suggested McDonald's go elsewhere. Gary Gillman, President of the Morro Bay Chamber of Commerce, stated the Chamber welcomes McDonald's to Morro Bay. Traffic can be handled by design; the project will create many jobs for the community and stimulate the economy. The signage and building has been designed to fit in with the character of Morro Bay Mayor Sheetz closed the hearing to the public. Councilmember Odell stated he had no problem with McDonald's locating in Morro Bay and considers them an economic and social asset, and recognizes the public services they perform, in par- ticular McDonald's House. However, he views the traffic and location as the main problem. He requested the McDonald's repre- sentative to explore another site; he will not support the pro- ject at this location. MOTION: Councilmember Odell moved Council uphold Planning Com- mission denial (Resolution No. 11-90). The motion was seconded by Councilmember Wuriu. Resolution No. 11-90: Resolution announcing findings and upholding the action by the Planning Commission denying a Conditional Use Permit and Coastal Development Permit to allow a fast food and drive-thru restaurant. Councilmember Wuriu said he has objections concerning the traffic program, and the fact it ties in with the Williams Brothers pro- ject; the City is not sure at this time how much traffic that project will generate which will depend on the size of the pro- ject when it is built. Councilmember Wuriu said McDonald's is a fine company, and he would welcome them to Morro Bay if the traf- fic problem could be solved. MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JANUARY 24, 1990 PAGE 6 Councilmember Lemons asked if the south -bound and north -bound off -ramp to Highway 1 needs to be signal -controlled now? Mr. Montgomery stated yes, the improvement plan shows it is already needed. Councilmember Lemons asked if the Williams Brothers pro- ject is not built, would this traffic plan be over -designed? Mr. Montgomery, the traffic engineer, responded yes. Mr. Montgomery outlined the heaviest points of traffic and said the signals and design will actually work better in the future with 30% more traffic than it does today with no signals. Mr. Montgomery stated CalTrans information was valid and is the rea- son for the 20% increase in traffic estimates in the report. Councilmember Lemons believes the traffic plan will not be a problem and accepts the study of traffic engineering experts in this area. Councilmember Baker stated he is in favor of the project, but prefers the alternative architecture -design plan offered by McDonald's. Mayor Sheetz asked McDonald's representative, Arend Collen, if he would reconsider and try to find another location? Mr. Collen said he selected what he considered to be the best location in Morro Bay; considering the monetary investment the future fran- chisee will be making, he did not believe another location would do as well. MOTION: Councilmember Wuriu moved Council debate on this issue close. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) The motion to uphold the Planning Commission decision and deny the appeal was carried with Councilmember Lemons and Councilmember Baker voting no. (3-2). Council recessed from 8:43 p.m. to 8:55 p.m. Associate Planner Larry Red noted in light of the restaurant denial, subsequent denial of the Sign Permits would also be in order. Mayor Sheetz opened the Public Hearing for on -site signage and off -site signage for McDonald's; there were no public comments and the hearing was closed. MOTION: Councilmember Lemons moved Council adopt the Planning Commission recommendation to deny Sign Exception Permit 02-89 (Resolution No. 12-90). The motion was seconded by Councilmember Baker and unanimously carried. (5-0) • • MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JANUARY 24, 1990 PAGE 7 Resolution No. 12-90: Resolution announcing findings and upholding the action by the Planning commission and denying a sign exception request; Sign No. 02-89. MOTION: Councilmember Odell moved Council adopt the Planning Commission recommendation to deny Sign Exception Permit 04-89 (Resolution No. 13-90). The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Resolution No. 13-90: Resolution announcing findings and upholding the action by the Planning Commission and denying a sign exception request; Sign No. 04-89. D-7 RECONSIDERATION OF REVISED WATER RATE SCHEDULE AND $7.50/MONTHLY SERVICE CHARGE ENACTED BY COUNCIL TO RAISE REVENUES FOR SUPPLEMENTAL WATER PROJECTS This item was brought back to Council at the request of Coun- cilmember Odell; Mayor Sheetz asked him to present the item. Councilmember Odell stated when Council increased the water rate schedule, it used too big an economic hammer; he pointed out if the City were in the private sector, it would have gradual increases over the years to pay for projects, rather than a large increase all at once. Councilmember Odell stated the increase should be revised; the $7.50 base fee Council approved bothered him and he believed the time has come for town citizens to vote for water projects they want to pursue. He requested at least 60 days before implementing new rates for business or commercial use. During that period of time, he would like to explore some ideas such as checking out historical usage; perhaps any business that goes over the historic use would pay for going over that amount? He was afraid the currently -approved increase will put some people out of business. Councilmember Wuriu commented the basic service charge should be called a "system" charge rather than a "service" charge. Councilmember Lemons expressed disappointment in this request as it is exactly where Council was two months ago when Councilmember Odell asked for additional time to explore some of the above options. Councilmember Odell said he did not have access to statistics to provide Council with the information he wants to explore. He also said he has no problem with the residential rates but is very concerned the rate increases would actually close some businesses. Councilmember Wuriu stated he opposes the flat rate charge; there are no solid figures to show what is needed in 1991 for water projects, only estimates. MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JANUARY 24, 1990 PAGE 8 In the ensuing discussion Council suggested that a $5.00 or $4.00 fee be used as the base monthly charge. It was also suggested Resolution 137-89 be rescinded in its entirety. MOTION: Councilmember Wuriu moved the basic system charge be established at $4.00/month, plus a Lifeline Program. The motion was seconded by Councilmember Odell. Mayor Sheetz opened the hearing to the public for comments. Ray Kaltenbach, 473 Sicily, said he is appalled to find fixed income citizens are footing the bill, and questioned why not increase the Bed Tax to 10% or 13%? He also said the State Water Project cannot guarantee us a subscription amount of water. Councilmember Lemons commented if the State Water Project does not have enough water for full entitlement, they first cut agri- cultural users by 50% before other users are cut. Councilmember Odell stated motel owners have agreed to bear their share of the costs; they just do not want to show separate transient occupancy tax increases from a marketing stand -point. Charles Palmer, 485 Estero, stated the charge hits those who use a minimum amount of water. He suggested the City divide the cus- tomers into their needs; the City of San Luis Obispo fines have conserved 30%-40% by using this method. John Linhares, 2718 Alder St., stated the rates have increased, but there is no new water. He suggested management get the water first, and then the residents will pay. Nancy Bast, 450 Fairview, opposed any new rate increase for new water projects. She said Morro Bay's rates are the highest in the County and commented on: City budgeting for Community Promo- tions at $93,000 for tourists; degradation of streets; sewer capacity; litter pickup; additional police, fire and parks and recreation people. Ms. Bast said the Lifeline Rates are not as great as they sound; landlords will use rates as an excuse to increase rents even higher. Tony Linhares, 960 Maguilside, said Well No. 12 is down, and 10A and 9A are temporarily out -of -service. Citizens are already pay- ing an outrageous price for poor quality water. Quit investing money in study after study. Howard Gaines, 441 Orcas, said the City's rate schedule is putting the burden on those who can least afford it. He said the statewide average transient occupancy rate is 9%; the tourists cause the problem and they should pay. He said the monthly ser- vice charge is a tax. MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JANUARY 24, 1990 PAGE 9 Dale Reddell questioned the $1.50 new construction tax; he pointed out Council has approved this tax and the resolution is not included in this report. Mr. Napper responded the new con- struction fee is not before the Council at this time, and is not a subject being reconsidered. The hearing was closed to the public Councilmember Lemons stated if additional income is collected from motels through transient occupancy tax or increased water rates, what difference does it make? The money will still be generated. Put motels on the residential rate and they will still be at the top end; they will pay their share by either method. AMENDED Councilmember Wuriu moved Council amend Resolution No. MOTION: 137-89 to reflect a $4.00 monthly base fee rather than the $7.50 charge. The amended motion was seconded by Councilmember Odell and unanimously carried. (5-0) Councilmember Odell stated the Resolution should also be amended to delete the new water rates, give at least 60 days to determine a rate schedule for commercial use, and encourage conservation but not to force businesses out of business. MOTION: Councilmember Odell moved Resolution No. 137-89 be amended to hold new water usage rates for 60 days to develop a rate schedule for commercial use, encourage conservation, but not force businesses out. The motion was seconded by Councilmember Wuriu. Councilmember Baker agreed with Councilmember Odell with regard to the businesses. He asked if different rates could be used on people who had higher water usage. Judy Skousen, City Attorney, said different rates could be used for commercial and residential but she does not believe the City can implement different rates from one commercial business to another; she is also not sure historical use for businesses can be used as a basis for charging rates. Councilmember Lemons stated attempting to establish historic water usage would be an enormous task; and it will hurt busi- nesses just starting out. He said it is not possible to secure water and pay later; the studies and designing required before more water is obtained require funding. He stated he was elected to Council to make these decisions; the City must pursue all three projects until one is obtained. Councilmember Baker asked if the Finance Director and staff would be conducting the analysis for a new program to raise revenues, MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JANUARY 24, 1990 PAGE 10 or is the Water Board going to be charged with researching this matter? Councilmember Odell said it would be logical for the Water Board to do it, but he was afraid of burning them out after they had put so much time in on their recommended plan. It would be appropriate for the Water Board to look into the feasibility of an alternate plan; if there is a legal roadblock, the City could try to phase the plan in over a number of years so it would not have an enormous impact on the community for the three capital projects. Louise Burt said staff could bring back alternative curves for payment, but if any provision is made for a special interest group, monies collected from anyone else could be considered a tax. It was decided the curve was the only choice the City had to work with. Judy Skousen, City Attorney, requested Council allow her some time to research the problem; perhaps she could find something the City could legally do. Councilmember Wuriu said there are at least two cities he knows of who are doing this. The Mayor suggested the League of California Cities be contacted also. SUBSTITUTE Councilmember Lemons moved Resolution 137-89 be MOTION: approved as amended to reflect the $4.00 basic system charge, with the understanding that when staff, the Water Advisory Board, or others have a different sug- gestion, Council will consider it. Councilmember Wuriu seconded the motion and it failed on the following vote: AYES: Lemons NOES: Baker, Odell, Wuriu, Sheetz MOTION: Councilmember Odell moved Resolution No. 137-89 be rescinded, the $4.00 service charge. go into effect 01 February 1990, but not the increased rates. The motion carried on the following vote: AYES: Wuriu NOES: Baker, Lemons, Odell, Sheetz Mr. Napper suggested Resolution No. 137-89 be rescinded in ita entirety and request staff and the Water Advisory Board work fur- ther on the project and return recommendations to Council at the next meeting. It was determined, however, two weeks for staff and the Water Advisory Board was not enough time to prepare another water revenue plan. It was suggested an alternative MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JANUARY 24, 1990 PAGE 11 water revenue plan be incorporated into the upcoming FY 90-91 budget process starting with staff in February/March 1990. MOTION: Mayor Sheetz made a motion to rescind Resolution No. 137-89, have staff develop an alternative, and re-agen- dize the item. The motion was seconded by Councilmem- ber Baker. After discussion, Mayor Sheetz withdrew her motion and Coun- cilmember Baker his second. MOTION: Mayor Sheetz moved Resolution No. 137-89 be rescinded. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) D-8 CONTINUED PUBLIC HEARING ON 1989 ANNUAL WATER REPORT AND CONSIDERATION OF RESIDENTIAL CONSTRUCTION AND WATER ALLOCA- TIONS FOR CALENDAR YEAR 1990 Mr. Farrel outlined the five staff recommendations made in the Annual Water Report distributed in December 1989 and discussed by the Council at a previous meeting. Council discussed the merits of retrofit, pipeline replacement and why the Water Advisory Board preferred the blend approach to awarding water equivalencies. The Board's reasoning is it is getting more difficult to find homes to retrofit. Mayor Sheetz opened the matter to the public for comments. Ray Kaltenbach, 473 Sicily, said he does not understand how the City can keep issuing building permits; he is against retrofit, and stated it has never been proved it works. Dale Reddell said he is convinced retrofit works; he agrees with the staff report, but has a problem with the $6,000 hook-up fee. He said the building industry contributes to water conservation by retrofitting. Howard Gaines,441 Sicily, opposed allocating building permits because of the water situation; he suggested Council wait until end of March before making any decision to see if additional rain falls. Retrofit has overstated savings of water. Marshall Roper asked if a person is awarded water allocation in the third quarter of 1989, what fees would they have to pay? Mr. Farrel said fees are paid at the time building permits are picked up and issued; they would be subject to whatever fees are in effect that time. John Heimel stated he agrees with the staff report and said many businesses will be affected if building permits are not issued. MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JANUARY 24, 1990 PAGE 12 Dan Reddell asked how many retrofits are still available in the City? Mr. Farrel stated approximately 50% of the residential homes had been retrofitted, but the new 1'k gallon toilet require- ment makes everything eligible for retrofitting. Mr. Reddell stated he supports the blend program, and believes the additional $6,000 per new home construction is ridiculous. Charles Palmer, 435 Estero, stated well levels in the Chorro Basin are rising even without rain because farmers are not pump- ing as much water. However, the City will still be in a bad sit- uation if there is no rain; the City should manage its water use. Nancy Bast, 450 Fairview, supports the staff recommendation; con- struction can also make a living from remodeling, but new housing gives them a bigger profit. Mayor Sheetz closed the hearing and returned the matter to Counl cil for discussion. Mayor Sheetz and Councilmember Wuriu stated they believe the retrofit program works; however, they were in favor of holding the first quarter allocation for release until the end of March to see if the rainy season improves. Mr. Nichols commented the City will not see any substantial water basin improvement until the spring rains conclude in April or May. Councilmember Baker questioned the status of the leak detection program. Mr. Nichols said it will be in operation in April after the rains are over so it does not interfere with readings. There are approximately 5.2 miles of pipeline left to replace, primar- ily in the south end of town. They will be finishing everything currently under construction in November, and with FY 90-91 bud- get approvals, Phase 4 of pipeline replacement will go into effect. Councilmember Odell stated the Chorro acquifer is fed by the California Mens Colony with stream releases. Regardless of the lack of rain, Chorro will be artificially recharged. He is get- ting uncomfortable about awarding water, and concurs the Council should wait until the end of March to award the first quarter's allocation. MOTION: Councilmember Wuriu moved Council approve a maximum allocation according to the staff report (70 residen- tial units; 50 single family dwellings and 20 multi- family mix) as 70 residential units for the year 1990; and the first quarter awards not be allocated by Coun- cil until the end of March 1990. The motion was sec- onded by Councilmember Baker and unanimously carried. (5-0) MINUTES - MORRO BAY ITY COUNCIL ' ADJOURNED REGULAR MEETING - JANUARY 24, 1990 PAGE 13 MOTION: Councilmember Baker moved water be awarded on the "blend" program (50% of the water earned by retrofit; 50% awarded through pipeline replacement water) as rec- ommended by the Water Advisory Board, with the retrofit ratio to be 2:1. The motion was seconded by Coun- cilmember Wuriu and carried on the following vote: AYES: Baker, Lemons, Wuriu NOES: Odell, Sheetz Councilmember Odell stated he agrees with the staff recommenda- tion to allow full retrofit as the only way to earn water. MOTION: Mayor Sheetz moved to approve the staff recommendation regarding water hookup fees. The motion was seconded by Councilmember Wuriu and carried with Councilmember Odell voting no. (4-1) Finance Director Louise Burt commented this action will increase the out-of-pocket expense for builders by $2,300, utilizing the blend program as approved by Council. F. 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 11:15 p.m. Recorded by, Elane Novak Deputy 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 - JANUARY 22, 1990 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 Hearings 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 JANUARY 8, 1990 A-2 STATEMENT OF INVESTMENTS - DECEMBER 1989 A-4 PROCLAMATION DECLARING FEBRUARY 3-10, 1990 AS "BAY AND ESTUARY WEEK" A-5 APPOINTMENT OF CHAMBER OF COMMERCE REPRESENTATIVE (GARY GILLMAN) TO COMMUNITY PROMOTIONS COMMITTEE A-6 RESOLUTION NO. 14-90 APPROVING A JOINT POWERS AGREEMENT CREATING THE SAN LUIS OBISPO REGIONAL TRANSIT AUTHORITY FOR OPERATION OF COUNTYWIDE PUBLIC TRANSPORTATION SYSTEMS A-7 RESOLUTION AUTHORIZING INSTALLATION OF 20-MINUTE PARKING LIMIT ZONE ON THE SOUTH SIDE OF DUNES STREET, WEST OF MAIN STREET (BOTTLE LIQUOR, 999 MAIN STREET) PULLED A-8 APPOINTMENT OF REFUSE COLLECTION FRANCHISE BOARD APPLICANT (DAVID MORROW) A-9 PROCLAMATION DECLARING FEBRUARY 1990 AS "CALIFORNIA SELF-ESTEEM AND RESPONSIBILITY MONTH" 1 B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 367 DELETING REQUIREMENT FOR JOINT MEETING WITH RECREATION AND PARKS COMMISSION IN DECEMBER OF EACH YEAR (SECOND READING/ADOPTION) C. NEW BUSINESS C-1 REQUEST FOR LEGAL OPINION REGARDING GOVERNMENT CODE §54346 PERTAINING TO PAYMENT OF REFUSE COLLECTION BILLS C-2 CONSIDERATION OF CITY PARTICIPATION AND FUNDING FOR A MAY 1990 COUNTYWIDE HOUSEHOLD HAZARDOUS WASTE COLLECTION DAY AT COUNTY OPERATIONS CENTER ON HIGHWAY 1 D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 APPEAL HEARING FOR PLANNING COMMISSION DENIAL OF VARIANCE FROM FRONT AND SIDE YARD SET BACK STANDARDS TO ALLOW CONSTRUCTION OF A 420 SQ.FT. ADDITION TO EXISTING RESIDENCE AT 154 ORCAS STREET (VAR 38-89/CDP 86- 89R; LANSER, APPELLANT) PULLED; APPEAL WITHDRAWN D-2 RESOLUTION NO. 04-90 ESTABLISHING PERMIT AND ASSOCIATED FEES FOR UNREINFORCED MASONRY REHABILITATION CONSTRUCTION (MASTER FEE SCHEDULE) D-3 PUBLIC HEARING ON APPEAL OF PLANNING COMMISSION RE -ISSUANCE OF COASTAL DEVELOPMENT PERMIT NO. 95-89R FOR MIMOSA STREET IMPROVEMENT DISTRICT (PRICE, APPELLANT) D-4 PUBLIC HEARING FOR APPEAL OF CERTAIN PLANNING COMMISSION CONDITIONS TO CENTRAL COAST SEAFOOD'S PRECISE PLAN FOR IMPROVEMENTS AT 1001 FRONT STREET (CUP 08-89; DeGARIMORE, APPELLANT) D-5 PUBLIC HEARING ON DRAFT ENVIRONMENTAL IMPACT REPORT REGARDING A PROPOSED DEVELOPMENT OF COMMERCIAL AND VISITOR -SERVING FACILITIES (PACIFIC COAST SHOPPING PLAZA) AS A PHASED PROJECT ON 17.3 ACRES EAST OF HIGHWAY 1 AND MORRO BAY BLVD. (CUP 03-88/CDP 05-88R; WILLIAMS BROTHERS MARKETS, INC., APPLICANT) D-6 PUBLIC HEARING FOR APPEAL OF PLANNING COMMISSION DENIALS FOR A FAST- FOOD DRIVE -THROUGH RESTAURANT AT 940 MORRO BAY BLVD. (CUP 46-89/CDP 69-89R), ADDITIONAL ON -SITE SIGNAGE (SIGN EXCEPTION PERMIT 02-89); AND OFF -SITE SIGNAGE AT 899 QUINTANA ROAD (SIGN EXCEPTION PERMIT 04-89); MCDONALD'S CORPORATION, APPELLANT CONTINUE TO 24 JANUARY 1990 HEARING AT APPELLANT'S REQUEST D-7 RECONSIDERATION OF REVISED WATER RATE SCHEDULE AND $7.50/MONTHLY SERVICE CHARGE ENACTED BY COUNCIL TO RAISE REVENUES FOR SUPPLEMENTAL WATER PROJECTS CONTINUE TO 24 JANUARY 1990 ADJOURNED MEETING D-8 CONTINUED PUBLIC HEARING ON 1989 ANNUAL WATER REPORT AND CONSIDERATION OF RESIDENTIAL CONSTRUCTION AND WATER ALLOCATIONS FOR CALENDAR YEAR 1990 CONTINUE TO 24 JANUARY 1990 ADJOURNED MEETING P, E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY NEGOTIATIONS, LEASE SITE 87-88W,89/89W (GUNTHER; 833-845 EMBARCADERO) E-2 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION, MODERN COMMERCIAL KITCHENS INC VS BUNNELL CONSTRUCTION INC., #66022 AND EVENSON INC VS BUNNELL CONSTRUCTION. INC. AND THE CITY OF MORRO BAY, #66753 F. ADJOURNMENT: TO WEDNESDAY, 24 JANUARY 1990 (6 PM) VETERANS MEMORIAL HALL, 209 SURF STREET, MORRO BAY PUBLIC HEARING ITEMS D-6, D-7, AND D-8 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 - JANUARY 22, 1990 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 Ardith Davis City Clerk William Farrel Community Dev. Dir. Nick Nichols Public Works Dir. Nick Nicklas Chief Bldg. Insp. Woody Shoemaker, of the Coast Christian Church, gave the invoca- tion, and Horace Strong led the Pledge of Allegiance. Ma-6CgEous v'_G 49 1'. Richard Maxine, 1768 8th Street, Los Osos, stated he wished to make the Council and public aware of his intentions to start a community theater in Morro Bay. He has been in contact with the Chamber of Commerce and Recreation and Parks Department for their support. He said a good word from Council will open doors, he requested Council support, and promised hard work, entertainment and laughter. Mayor Sheetz responded he should not have any problem obtaining Council support and encouragement. 2. Mary Phillips, 2645 Ironwood, requested information on the tri-halomethanes and nitrates in the City's water supply. She said there was too long a period between when it was discov- ered by the City and when the public was informed of the matter. Mayor Sheetz requested Mr. Nichols prepare a report for Ms. Phillips. 3. Bruce Risley, 540 Piney Way, referred to Items D-7 and D-8 on the agenda regarding water matters. He noted the items are scheduled to be continued to January 24th; he will be out of • i MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 22, 1990 PAGE 2 town and would like to address Council this evening on those subjects. Mr. Risley encouraged Council to say no to water rate increases. He said Council ignored the Water Advisory Board recommendations to assess costs for new water to developers and tourists, and instead have given a subsidy of $1.5 million to builders in the form of retrofit fee credits. Last year, Council increased rates by 10% which places the main burden on the citizens. He com- mented on "retrofitting the retrofit" referring to additional water allocated for replacing previously retrofitted toilets with low -flush toilets. He stated four years ago, a Water Engineer was hired and developed the Coastal Stream Diversion Plan; then, his hands were tied and a gag placed in his mouth. Mr. Risley attended a joint meeting between the San Luis Obispo City Council and the Whale Rock Commission in which they discussed the consul- tant's report on the Coastal Stream project; Phase I is now all but dead by the San Luis Obispo City Council. He said no new water should be allocated until we can see a light at the end of the tunnel. 4. Lynda Merrill, 391 Sequoia, requested Council consider conducting an open public forum on water issues with experts and City employees to answer the public's questions. She commented on the Annual Water Report which states on page 10 retrofit is oper- ating at a loss, and then on page 11 that retrofit continues to save water; gets conflicting reports. 5. Ray Kaltenbach, 473 Sicily, stated when he was on the Council he tried for two years to find out how much water retrofitting saved; there has never been concrete proof it saves water or how much. He said wells are below last year at this time. 6. Nancy Bast, 450 Fairview, stated she would like the public to be informed of the answers to the questions posed by Mary Phillips and Linda Merril. DECLARATION OF FUTURE AGENDA ITEMS 1. Councilmember Lemons requested Mr. Nichols outline in writing the circumstances surrounding the Kings Avenue water tank water contamination, and the nitrates in several wells. 2. Councilmember Lemons requested a verbal report on the repair of the South T-Pier. Mr. Nichols stated the City has selected a consulting engineer to design the pier and he is cur- rently drafting a contract for this purpose. Mayor Sheetz stated due to the length of the agenda this evening, an adjourned meeting will be held Wednesday, January 24th in the Veterans Hall at 6:00 p.m. to consider Items D-6, D-7, and D-8. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 22, 1990 PAGE 3 The McDonald's people called and requested their item, D-6, be postponed to that evening. Also, Council received a request from Mrs. Price to continue the Mimosa Street item, D-3, to February 27th; her husband was admitted to the hospital today. MOTION: Councilmember Wuriu moved Items D-6, D-7, and D-8 as well as the Closed Session items be continued to Wednesday, January 24th in the Veterans Hall at 6:00 p.m.; and Item D-3 be continued to February 26th. The motion was seconded by Councilmember Baker and unani- mously carried. (5-0) A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF JANUARY 8. 1990 Mr. Napper recommended Council approve the minutes with a correc- tion to page 11 changing the motion regarding implementation of curbside recycling with rate increase to reflect a 3-1 vote with Councilmember Odell dissenting. A-2 STATEMENT OF INVESTMENTS - DECEMBER 1989 Mr. Napper recommended Council receive the report for file. A-5 EXPENDITURE REPORT - DECEMBER 1989 Mr. Napper stated this item was inadvertently left off the posted Agenda, althrough the report is in the Agenda Packet. Council therefore may not act on this item; it will be rescheduled for the next Council meeting. A-4 PROCLAMATION DECLARING FEBRUARY 3-10, 1990 AS "BAY AND ESTUARY WEEK" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-5 APPOINTMENT OF CHAMBER OF COMMERCE REPRESENTATIVE (GARY GILLMAN) TO COMMUNITY PROMOTIONS COMMITTEE Mr. Napper recommended Council appoint Gary Gillman to the Commu- nity Promotions Committee representing the Morro Bay Chamber of Commerce. A-6 RESOLUTION NO. 14-90 APPROVING A JOINT POWERS AGREEMENT CREATING THE SAN LUIS OBISPO REGIONAL TRANSIT AUTHORITY FOR OPERATION OF COUNTYWIDE PUBLIC TRANSPORTATION SYSTEMS Mr. Napper recommended Council adopt Resolution No. 14-90. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 22, 1990 PAGE 4 A-7 RESOLUTION AUTHORIZING INSTALLATION OF 20-MINUTE PARKING LIMIT ZONE ON THE SOUTH SIDE OF DUNES STREET, WEST OF MAIN STREET (BOTTLE LIQUOR. 999 MAIN STREET) PULLED A-8 APPOINTMENT OF REFUSE COLLECTION FRANCHISE BOARD APPLICANT (DAVID MORROW) Mr. Napper recommended Council appoint David Morrow to the Refuse Collection Franchise Board for the unexpired term of office end- ing 31 December 1990. A-9 PROCLAMATION DECLARING FEBRUARY 1990 AS "CALIFORNIA SELF- ESTEEM AND RESPONSIBILITY MONTH" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. Mayor Sheetz requested Item A-1 be pulled, and Councilmember Odell requested Item A-4 be pulled. MOTION: Councilmember Odell moved for approval fo the Consent Calendar with the exception of Items A-1, A-3, and A-4. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF JANUARY 8. 1990 Mayor Sheetz stated she pulled this item in order to abstained from approval since she was not at the last meeting. MOTION: Councilmember Baker moved for the approval of the min- utes as corrected. The motion was seconded by Coun- cilmember Odell and carried with Mayor Sheetz abstaining. (4-0-1) A-4 PROCLAMATION DECLARING FEBRUARY 3-10. 1990 AS "BAY AND ESTUARY WEEK" Councilmember Odell requested the Proclamation be pulled in order to bring added attention to the subject of the Morro Bay Estuary. He noted Coastal Commission funded implementation of a watershed enhancement plan for an estuary, and stated the estuary is the heart of the City. MOTION: Councilmember Odell moved Mayor Sheetz be authorized to sign the Proclamation declaring February 3-10, 1990 as "Bay and Estuary Week". The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 22, 1990 PAGE 5 B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 367 DELETING REQUIREMENT FOR JOINT MEETING WITH RECREATION AND PARKS COMMISSION IN DECEMBER OF EACH YEAR (SECOND READING/ADOPTION) Mr. Napper stated Ordinance No. 367 deletes the requirement for Council to hold a December joint meeting with the Recreation and Parks Commission. He noted Council can call a meeting with any advisory board if the need arises. MOTION: Councilmember Wuriu moved Ordinance No. 367 be read by title and number only. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) Mr. Napper read Ordinance No. 367 by title and number only. MOTION: Councilmember Baker moved for approval of the second reading and adoption of Ordinance No. 367. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) C. NEW BUSINESS C-1 REQUEST FOR LEGAL OPINION REGARDING GOVERNMENT CODE §54346 PERTAINING TO PAYMENT OF REFUSE COLLECTION BILLS Mr. Napper stated this item was agendized at the request of Coun- cilmember Odell after Mary Phillips asked for a written legal opinion on Government Code §54346 with reference to the City requirement for her to pay for mandatory garbage services even if she does not use the service. The question is whether or not Council wishes to authorize the legal expense to research this matter. Councilmember Odell asked the City Attorney if she could provide Council with a verbal opinion on this matter without a formal request. Ms. Skousen stated she has an opinion on Mrs. Phillips question, but has not researched the subject and Council has not instructed her to do so. Mayor Sheetz asked the City Attorney to give her verbal opinion now. Ms. Skousen stated Ms. Phillips has asked two questions over the years. One is whether or not the City really has the authority to adopt an ordinance that requires mandatory garbage service; and, can the City require someone to pay the bill when they do not want to have their garbage picked -up and do not place it at the curb to have it picked -up? The first answer is yes, the City does have the authority to institute mandatory garbage service which means you must pay the garbage bill and you may not keep MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 22, 1990 PAGE 6 your garbage in your back yard or wherever; you must have your garbage picked -up. The City does not require someone to put their garbage out on the curb and, in fact, wants to encourage people to recycle as much as possible, but they still must pay for having the service available, and the City has the authority to require they pay the garbage bill. The Government Code sec- tion cited by Ms. Phillips causes her to think that the City can- not collect on her bill, that the City should terminate her garbage service if she does not pay her bill. Ms. Skousen said Ms. Phillips has misunderstood the section; if the City were sending out the bills and collecting the garbage bill, the City would then have the right to terminate her garbage service if the City so desired. However, the City does not send out the garbage bill; according to the franchise agreement the garbage company sends out the bill. The City has mandated the garbage company continue picking up the garbage and they may not (by their fran- chise agreement with the City) terminate her garbage service. The purpose of our mandatory garbage ordinance is to insist all persons have this garbage service available, therefore, it is not the City's desire to terminate the garbage service; we want to continue picking up her garbage and continue requiring that she pay her bill. This section says the City may terminate her garbage service; this is not an avenue we want to take advantage of; it is at the City's option, not Ms. Phillips'. Councilmember Odell asked if the City can charge for a service that is not rendered, if the definition of rendering the service means a person having their garbage picked -up? Ms. Skousen said the service is rendered, she just does not take advantage of it. Whether she puts her garbage out or not, the City can still bill her; that's mandatory garbage service. Councilmember Wuriu asked if there are other cases of this type. Ms. Skousen stated yes there are, and they have been upheld in court numerous times. The City's law has not been challenged, however. Councilmember Odell asked if Council requested the City Attorney provide a written opinion, is it possible her answer would change? Ms. Skousen said no, the research would provide legal verification so Council could read what the laws say. Councilmember Odell asked if the Refuse Board has requested an opinion of this sort in the past? Ms. Skousen stated they have not; she believes they are satisfied the City has the authority to enforce the mandatory nature of the ordinance. No action was taken on this item. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 22, 1990 PAGE 7 C-2 CONSIDERATION OF CITY PARTICIPATION AND FUNDING FOR A MAY 1990 COUNTYWIDE HOUSEHOLD HAZARDOUS WASTE COLLECTION DAY AT COUNTY OPERATIONS CENTER ON HIGHWAY 1 Mr. Napper stated County and city officials have been developing a program to hold a regional house -hold hazardous waste collec- tion day in the County; such a program is now State -mandated. He noted Morro Bay was the first agency to hold such an event in June 1987; the one -day event cost was approximately $12,000. Mr. Napper reviewed the County's proposed Hazardous Waste Collection Day to be held May 19th at the County Operations Center off High- way 1. The estimated cost is $260,500 for a one -day event with each City to pay its per capita share. He asked if Council wished Morro Bay to participate in this County -coordinated event, and if so, how to fund the City's share of the program? Staff suggests a residential surcharge on the garbage bill since the program will be on -going and is directly related to consumerism. Councilmember Lemons asked if there is any assurance three col- lection days will be held, and will they all be held at the County Operations Center? Mr. Napper stated the City Manager's Sub -committee suggested three different sites: one each in the north, central and southern parts of the County in order to encourage participation. However, the County says holding a col- lection day in three separate locations will cost three times the cost; they want to have this collection day at one location and then refine the program based upon experience and funding needs. Councilmember Odell suggested using vehicles to transport haz- ardous wastes from different areas to one location. Mr. Napper said he does not believe it has been suggested. Councilmember Lemons stated there are a lot of rules and regulations concerning the handling and combination of hazardous wastes; more than one type of vehicle may be needed to implement that suggestion. Councilmember Baker stated the 50 lb. limit on individual collec- tions may pose a problem; batteries only can weigh that amount, without other household wastes. Mr. Napper stated he would bring that matter to the County Health Department for an answer. Councilmember Wuriu believed the City should pay for the costs of this first collection day; Council just added 500 to trash pick- up for recycling and he was not in favor of passing this cost on to the citizens. Mayor Sheetz stated if other cities do not join in the program, the costs could go up for those cities that do participate. It would be difficult to impose a garbage rate surcharge when it is unknown was the charge will be. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 22, 1990 PAGE 8 Mr. Napper stated the City will have to front the money, but since it is an on -going program, there is a need to develop per- manent funding by passing the charge on to the consumer. Councilmember Lemons asked if some cities have indicated they might not participate? Mr. Napper said State legislation says cities must have a program, but no timetable has been estab- lished; if some decide not to participate, they are only acting on this first event. All city managers have indicated their cities wish to have a program, but the logistics, funding, and geographic location of this event are causing problems for some of the cities. Councilmember Odell suggested perhaps a fee for dispensing toxic materials could be charged to help defray costs. MOTION: Councilmember Lemons moved the City Administrator write to the County advising them the City of Morro Bay will participate in the May 19th program, and refer the mat- ter of garbage rate surcharges to pay for it to the Refuse Collection Franchise Board for their input. The motion was seconded by Councilmember Odell and unani- mously carried. (5-0) Councilmember Odell was concerned Morro Bay might be the only participant in the program. Mr. Napper stated he would word the letter so Morro Bay will participate providing all other agencies do so, and request the City be notified if any agencies decline to participate. Mayor Sheetz announced Council previously continued Items D-6, D- 7, and D-8 to Wednesday, January 24th at 6:00 p.m. in the Veter- ans Hall. She noted D-1 has been withdrawn by the appellant and D-3 has been continued to February 27, 1990. D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 APPEAL HEARING FOR PLANNING COMMISSION DENIAL OF VARIANCE FROM FRONT AND SIDE YARD SET BACK STANDARDS TO ALLOW CON- STRUCTION OF A 420 SO.FT. ADDITION TO EXISTING RESIDENCE AT 154 ORCAS STREET (VAR 38-89/CDP 86-89R; LANSER. APPELLANT) PULLED: APPEAL WITHDRAWN D-2 RESOLUTION NO. 04-90 ESTABLISHING PERMIT AND ASSOCIATES FEES FOR UNREINFORCED MASONRY REHABILITATION CONSTRUCTION (MASTER FEE SCHEDULE) Mr. Farrel stated Council enacted an Unreinforced Masonry (URM) ordinance in December which became effective January llth. The proposed fees will recover the actual cost of staff work and expense in plan checking and issuing permits under the Ordinance. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 22, 1990 PAGE 9 Councilmember Lemons asked if the International Conference of Building Officials (ICBO) could do the plan checking? Mr. Nicklas, Chief Building Inspector, stated he has not asked them; ICBO takes 75% of the fee charged, and he believes it is better to deal with local people. Councilmember Lemons said he was concerned the City may contract with an engineer who offers the cheapest price; staff should also consider capabilities and experience. Cost should not be the prime consideration for selecting an engineering consultant on this important matter. Councilmember Wuriu asked how many buildings are affected? Mr. Nicklas stated initially 45 were identified, but five have been eliminated. He said the program is going along very well. Mayor Sheetz asked if the list of buildings is a working list? Mr. Nicklas stated it is a working list; it may contain struc- tures that do not belong on it, but the City has no way of know- ing until the property owner submits documents for an engineer to check. That process could eliminate more buildings from the list. 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. 04-90. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) D-3 PUBLIC HEARING ON APPEAL OF PLANNING COMMISSION RE -ISSUANCE OF COASTAL DEVELOPMENT PERMIT NO. 95-89R FOR MIMOSA STREET IMPROVEMENT DISTRICT (PRICE. APPELLANT) Mayor Sheetz stated this item has been postponed to February 27th at the written request of the appellant received by the City today. D-4 PUBLIC HEARING FOR APPEAL OF CERTAIN PLANNING COMMISSION CONDITIONS TO CENTRAL COAST SEAFOOD'S PRECISE PLAN FOR IMPROVEMENTS AT 1001 FRONT STREET (CUP 08-89; DeGARIMORE. APPELLANT) Mr. Farrel stated the Conditional Use Permit on this project was approved last year with conditions. The applicant has determined several of the conditions are unsatisfactory to him and has appealed those conditions: 1) Condition No. 8 requiring the ded- ication of any private property underlying the improved sidewalks on Front Street, and 2) the portion of Condition No. 16 requiring landscaping in front of the Coffee Pot Restaurant and Shirt Shop. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 22, 1990 PAGE 10 Mr. Farrel reviewed the conditions in detail noting Mr. DeGarimore believes the landscaping requirement should be deleted because of the water drought. Mr. Farrel stated the parking lot is a rather unsightly area and staff originally recommended more extensive landscaping than stated in the final condition. The City Administrator has suggested a compromise to require its installation but defer the actual landscaping until the mandatory rationing restrictions are lifted. Mr. Farrel explained the requirement for dedication of property for public sidewalk right-of-way is a standard procedure. Mr. DeGarimore objects to deeding this property to the City. Mr. Farrel stated an alternative may be to have the property owner grant an easement to the City so if the sidewalk use is ever eliminated in the future, the property remains in title with Mr. DeGarimore. Mayor Sheetz opened the hearing to the public for comments. Mr. DeGarimore stated there is no justification or legal require- ment for him to donate property to the City. His property is the only privately -owned land on the waterfront, and it is very valu- able. He has no problem with the sidewalk requirement. He dis- cussed the small amount of space left for vehicles to maneuver in the parking lot because of the landscaping requirement. Councilmember Baker asked if he would be agreeable to the ease- ment suggestion by staff? Mr. DeGarimore stated he would. Mary Phillips questioned who would be liable if she falls on Mr. DeGarimore's portion of the sidewalk in front of this develop- ment? She suggested the City purchase the property if they want it. Ned Rogoway stated he represents owners of property over -looking this site. His clients are concerned the conditions be applied to the project; the applicant worked on these conditions with the property owners on the bluff. They believe the conditions are reasonable and would not like to see the them reduced. They are not concerned about the sidewalk issue except the applicant should be required to make improvements like any other property owner regarding a project of this type. Mayor Sheetz closed the hearing to the public. Councilmember Lemons believes the Planning Commission conditions are reasonable. He said drought -resistant plants should be required, but was not in favor of deterring the landscaping for a time. Dedication of sidewalks is required all over town, and this project is no different. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 22, 1990 PAGE 11 MOTION: Councilmember Lemons moved for adoption of Resolution No. 09-90 denying the appeal and adding a further con- dition the landscaping plants be drought resistant. The motion was seconded by Councilmember Wuriu. Mr. Farrel asked if Council wished to include language regarding the dedication of an easement rather than property? Councilmem- ber Baker was in favor of including this in the Resolution. Councilmember Odell asked if the existing language is broad enough to allow for easement or dedication of property options? Mr. Nichols responded yes. Mayor Sheetz stated the dedication of property for public right- of-way is standard procedure; she is also in favor of retaining the landscaping requirement. The motion was unanimously carried. (5-0) Mayor Sheetz announced Items D-6, D-7, and D-8 would not be heard this evening, but are continued to Wednesday, January 24th at 6:00 p.m. in the Veterans Hall. Council recessed from 7:36 p.m. to 7:47 p.m. D-5 PUBLIC HEARING ON DRAFT ENVIRONMENTAL IMPACT REPORT REGARD- ING A PROPOSED DEVELOPMENT OF COMMERCIAL AND VISITOR -SERVING FACILITIES (PACIFIC COAST SHOPPING PLAZA) AS A PHASED PROJECT ON 17.3 ACRES EAST OF HIGHWAY 1 AND MORRO BAY BLVD. (CUP 03-88/CDP 05-88R; WILLIAMS BROTHERS MARKETS, INC.. APPLICANT) Mayor Sheetz stated she would like to give everyone an opportu- nity to speak to this item and outlined several ground rules. She asked Ms. Skousen to explain Measure B which was approved by the voters in 1986 with regard to the Williams property. Ms. Skousen stated Measure B amended the Local Coastal Program and the City's Zoning; it did not approve a specific project, and it did not bind the City's hands as to review of any project. It just rezoned the property. The City still must go through all the normal steps of project approval. This project has not been pre -approved by the initiative. Mayor Sheetz also asked Mr. Farrel to explain why the Planning Commission is having one type of hearing and the Council another. Mr. Farrel stated the Planning Commission is presently involved in processing the Conditional Use Permit application and a Coastal Development Permit. They are also conducting hearing and receiving comments on the adequacy and completeness of the EIR. At tonight's Council hearing, the applicant's representative, Tom Courtney, will introduce the project, and Ted Adams, consultant for preparation of the EIR, will give a summary of the draft EIR. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 22, 1990 PAGE 12 The public hearing before Council is for specific comments on the draft EIR. Mayor Sheetz emphasized Council is not conducting a hearing on whether to approve or disapprove the project. They will be hear- ing the public's views on the environmental impacts of the project. Tom Courtney, project architect, reviewed the background and his- tory of the project. He also noted the people who have worked on the project and their credentials. Mr. Courtney showed slides of the project site and other projects he has been involved with. He noted the ways in which Mr. Williams has contributed to the community, and displayed slides of Williams Brothers developments in other areas. Mr. Courtney stated the project development area contains 17 acres; the first phase is the development of the shopping center itself. There are no plans for any other phased development areas at this time; they do not have plans for a hotel at this location. He said the project will be built in two sub -phases and offer a small village image. He reviewed the first sub -phase plans and their efforts to minimize impacts. He said the project will annually add $300,000 to $400,000 to the City's revenue tax base. Councilmember Wuriu asked what the time table is for Phase II; is it possible it might never be built? Mr. Courtney responded yes. He noted in a survey of the community, K-Mart was the highest choice for a retail store at this location. However, this build- ing is not included in the first phase of the project. Mayor Sheetz asked what would trigger Phase II construction? Mr. Courtney responded market demand (economics). Ted Adams, consultant with EIP Associates who prepared the EIR, gave a summary of the draft EIR. He said the purpose of the EIR is to enable the public and Council to evaluate the project's effects on the environment and to suggest mitigating measures on those effects. He said preservation of agriculture lands is a statement in the City's General Plan. He recommends the General Plan policy be enforced for lands adjacent to this site, and utilities be limited to that necessary for the project. When fully developed, this project will employ 1200 workers. To reduce the housing demand, the EIR recommends hiring individuals who already live in the area. Various traffic intersection improvements need to be implemented and Mr. Adams listed the intersections and recommended improvements. Mr. Adams stated public services will be impacted which could require additional City personnel; he recommended a private secu- rity service be included in the project. He discussed the water MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 22, 1990 PAGE 13 equivalencies needed for the project and the need for a water conservation plan for the project. He said 600,000 cy of mate- rial will be taken from the existing site and relocated for fill. He said 1800 feet of Willow Camp Creek is to be filled for pro- ject construction, and recommended a Streambed Alternation Agree- ment from the Department of Fish and Game be approved prior to construction. Mr. Adams stated the alternatives analyzed for the project are: no project; smaller project; mitigated project; and environmen- tally -superior alternative. He reviewed these for Council. Councilmember Lemons questioned the text's use of "the City shall" throughout the EIR, instead of "the City may". Mr. Farrel stated he requested the consultant use that language so it was clear what actions need to be taken; it does not obligate the City and Council can change it if they wish. Councilmember Lemons stated if Council approves the document with the present language, the City will be required to do certain things; this type of recommendation should come from the Planning Commission or City Council. Councilmember Odell commented on page 311-8, there is discussion regarding Measure D which was to designate a parcel on Piney Way and Quintana as commercial; however, there is no mention of this as an alternative project location in the EIR's review of alter- natives. He suggested the environmentally -superior project may be at another location than proposed. Councilmember Wuriu stated he has problems with topping off a hill and removing it for fill for the project; is there a way to eliminate that? Bruce Elster, Project Engineer, stated when it was determined the project would require fill, an evaluation of where to obtain the fill established this borrow site as having the least disturbing environmental impact to the area. Mr. Elster explained the top soil will be removed and stored nearby, and the dirt/rock underneath will be used for fill. The top soil will then be returned to the hill and the hill reseeded to encourage growth. He said it is in the County portion of the property, and not visible from Highway One. Mayor Sheetz commented on the amount of dust generated by large projects and questioned how six months of construction would affect residents. Mr. Elster said the conditions placed on the project require continuous watering and compacting to mitigate the dust problem; he noted they would be using non -potable water and the grading should take approximately five months. Councilmember Lemons stated there has been discussion regarding a secondary access to the project through Bolton Drive; he asked if that is addressed in the EIR? Mr. Farrel stated the project needs a secondary access for emergency vehicles only (non-public MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 22, 1990 PAGE 14 use), and several have been proposed by the applicant. He said staff prefers the Bolton Drive secondary access with some sort of controlled gate so it is only used in emergencies. Councilmember Lemons asked why certain streets on the project will be dedicated to the City if they are on private property? Mr. Elster stated they will be offered to the City for dedica- tion. With regard to the secondary access, Mr.Elster stated the applicant was required to evaluate several options and is not advocating one over the other. Mayor Sheetz opened the hearing to the public for comments. Tom Knepher, 584 Napa Avenue, stated the comments he makes are also intended for the McDonald's appeal hearing which will be held on Wednesday, January 24th. He stated Council has the opportunity to set the direction of the City with these projects; they must decide whether Morro Bay will be another California city suburb, or maintain what is here now. He recommended either no project or a mall in the downtown area. Bob Romine, 500 Atascadero Road, asked if the term "borrowing" from the top of a hill for project fill meant the fill will be replaced? If so, it will not be happening. Ben Luna, 341 Luzon, stated he is not a member of CAL, and the ex -Mayor's comments in the newspaper were redundant and ignorant. He is against the project, and encouraged the people to come for- ward and express their views. Gail MacDonald, 1028 Main Street, stated the current Williams Brothers Shopping Center is an eyesore; she is impressed with all the things Mr. Williams has done to develop his new project and is in favor of it. She believes it will attract spending and other businesses to Morro Bay. Keith Jeffries, 535 Bernardo, stated the community is at a turn- ing point. He believes the grading for this project will disturb the natural water flow from the watershed into the estuary from Willow Creek. There is nothing in the EIR to mitigate the impact of this. Bicycle and pedestrian access also needs improving at the site. Nancy Bast, 450 Fairview, requested Council uphold the recommen- dation of staff and have the applicant re -submit their plan. She asked who will pay for the Morro Bay Blvd./Highway 1 interchange? There has been no input from CalTrans, Air Pollution Control Board, or Fish and Game; no information on the effect on the business area. She suggested Mr. Williams be required to com- plete the interchange before he starts construction on the pro- ject. She wants Phase II tied -down to specifics, and noted it MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 22, 1990 PAGE 15 will leave an eyesore at the current Williams Brothers store site. Bonnie Willow Kelley, 500 Atascadero Road, asked if the design of the project is sensitive to archaeological questions? She said this land was inhabited by her Chumash relatives and contains sensitive burial sites. Ms. Kelley quoted from the California Public Resources Code and the Assembly Monitoring Act (AB 3180); she said the Native American community will be monitoring this development closely. Peter Whiteman, Luzon Street, stated he came to the United States because it is a capitalist country; he believes Mr. Williams is "putting his money where his mouth is" and meeting a public need. The old site will be rehabilitated by American enterprise. Thelma Violege, 560 Pacific, stated she opposes the project. It will increase traffic congestion and commuting on Morro Bay Blvd., increase population, increase pollution, and cause water- shed damage. Katherine Walling, Piney Way, stated the EIR is inadequate. She quoted LUP Policy 4.03 with regard to archaeological sites, and stated she is concerned about earthquake dangers when using fill in developments. Ms. Walling said Willow Camp Creek should not be disturbed; it is an old Indian burial ground. Jeff Queen, 710 Main St., was concerned about the change of four major traffic intersections in Morro Bay, the increase in public services required such as police and fire, public housing, water, and the increase in taxes to pay for additional services. Mr. Queen stated the downtown area is already hurting without this project to exacerbate it. Carol Winston, 650 Avalon, stated the size of the project will be a serious concern in five years. She said a number of "mom and pop" businesses will be affected. She believed a better Williams Brothers store is needed with ample parking, but not this enor- mous shopping center. ' Janice Peters, 635 Kern Avenue, stated she appreciates Williams Brothers but doesn't know if it needs to be as large as proposed. There is no mention of lighting on the project, and lighting will reflect towards town; also, there will be additional noise from cars and delivery trucks. She asked if the Phase II major retail store is automatically included in the project. If there is no motel planned, why is it mentioned in the report? Len Carpenter, Pacific Street, commented on the lack of cars parking on Morro Bay Blvd. presently, and stated this project could harm downtown. He said Mills Stationary and Copy Center owner Roger Marlin has informed him he will move to the new shop- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 22, 1990 PAGE 16 ping center if the Post Office relocates there. The increased demand for employee housing will drive costs up and force low- income people out. Doris Murray, 236 Surf, stated she voted against Measure B which approved zoning for this project; there has been misrepresenta- tions and subterfuge by the proponents. She is not in favor of the project as presented. Linda Merrill, 391 Sequoia, said the Telegram -Tribune should have asked her if she belonged to CAL; she may join yet. She referred to page 3.1.1-14 of the EIR which emphasizes preserving Morro Bay's village atmosphere in future developments; she said this project is no village. Ms. Merrill requested Council deny the project. Angela Beecham, Harbor Street, stated she is totally in favor of the project, and likes the Pismo Beach Williams Brothers shopping center design. Angela Carpenter, Pacific Street, stated she is concerned about the growth -inducing EIR; the land use creates a significant impact on growth. She said the lighting and traffic will create an impact, and asked who will be paying for the highway off -ramp? She stated the downtown area may become a ghost town; the project does not meet the definition of infill; the mitigated efforts for riparian habitat are questionable; and she was concerned the pro- ject will visually destroy the small town character of Morro Bay. Michael Swettenam, 450 Shasta, stated he is in favor of the store, but would like one in the downtown area. He stated the applicant refers to the plan as a walking village concept; how does a person walk to this center? The downtown area will be empty because of this project. Howard Gaines, 441 Orcas, stated he is against the project; Morro Bay needs a market, but not one on this scale. He believes the project will railroad citizens out of town economically. He dis- cussed the amount of water the project will use and the impact it will have on the City's sewer system and plant, which could result in additional sewage spills and break -downs. Ed Coughlin, Kern Avenue, stated Council should know ahead of time what is going to be placed on the other places on the prop- erty. Dedication of open space should be required. Bruce Risley, 540 Piney Way, stated only two CAL members so far have spoken against this project; he has been opposed to the pro- ject since 1984 or 1982. His basic objection is this large pro- ject forever changes the character of Morro Bay; it is not infill development. He said CAL is preparing a detailed analysis of the EIR and they do not believe it is adequate as presented tonight. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 22, 1990 PAGE 17 The air quality as a result of the project has not been addressed; traffic will have a tremendous impact; CalTrans and Fish and Game should be involved; the EIR should address the impact of shopping centers on small businesses by comparing what has happened in other cities. The project can ruin this commu- nity forever. Bruce McCray stated he is not a member of CAL and is not opposed to this plan, however he is concerned about the scale of the pro- ject; it is insensitive to the site. He is concerned about the plans and location of Phase II and stated it should be in an area that has a low visual impact. The plan does not consider Willow Camp Creek as an outdoor enjoyment amenity. If any new design is presented, he would like to see sensitive treatment to the City's entry from Highway 1. Robert Gray, 2961 Juniper, stated he made a living for awhile doing art shows in malls; without exception, within a mile of the malls, you will find a depressed business area. City after city used to be a nice place to live before malls were developed. There is a vast majority of people against this mall; he hopes Council is listening. Ray Kaltenbach, 473 Sicily, stated he is opposed to this project. He said when people voted on this initiative, they thought they were voting for a new market. The only one who benefits from this project is Mr. Williams and he is a land developer. No com- petition in grocery stores is created by this. Dale Reddell, 680 Sequoia Court, stated he moved to Morro Bay 31 years ago. When Highway 1 was built, people said it would ruin or destroy downtown. In 1963, the Safeway Shopping Center was developed, and people said it would destroy downtown. In 1966, Williams Brothers Shopping center was built, and in 1968 the Youngs Giant Food was constructed and people said the downtown area would not survive. The town is still here and will be here after this project is built; he is in favor of the project, and we will survive. Ralph Agee, 430 LaJolla, stated he does not want the beautiful City ruined by this project. He believes the project is beauti- ful; but, it would be better suited for the Giant Food store location. Henry Garcia commented Los Angeles has managed to survive also despite pollution, crime and congestion; he doesn't want to see that here. He stated CalTrans estimates an additional 13,000 ve- hicles will be generated by this project, and Morro Bay will suf- fer the effects of their pollution. He said traffic signals do not take care of the traffic problem; the congestion will remain. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 22, 1990 PAGE 18 Patrick Rose, Morro Avenue, was opposed to the project; he said there are lands on the west side of Highway 1 to develop. He believed it is not a good idea to disturb the Chumash Indian burial grounds. Margaret Dooley, 1055 Allesandro, stated she is opposed to the shopping center in the hills; anything available at K-Mart can be purchased in town now. She said the City does need another shop- ping center and suggested a shopping center be built on the land behind the current Payless Store. Ben Sanders agreed with Dale Reddell's comments; he believes it is time the shopping center was built. He said the Planning Com- mission, City Council, and staff along with Williams Brothers have enough intelligence to develop a good project for the commu- nity. The downtown businesses already go in and out of business frequently; this center might draw people to the downtown. Robert Lane, Quintana Road, stated once this project is approved, it is going to lock up commercial water equivalencies and no one in Morro Bay will be able to commercially build until this pro- ject is through. He requested Council not foreclose the opportu- nity for other people to build just to have this shopping center. Mary Phillips, 2645 Ironwood, stated she would like to see more competition amongst grocery stores; "monopolies are odious and not to be tolerated" (quoted from Abraham Lincoln). Craig Beecham, Harbor Street, commented he was unable to find a parking space at the current Williams Brothers shopping center tonight; he is in favor of the project. Mayor Sheetz closed the public hearing (9:55 p.m.) Councilmember Odell asked when the deadline is for written com- ments? Mr. Farrel stated January 29th. Councilmember Baker agreed with the comments made earlier about the benefits of a capitalistic county, and stated other communist countries wish they had the same benefits. He believes staff working with Williams Brothers can make this a good project. Williams Brothers is a small operator willing to pay his fair share. Mayor Sheetz stated Council is not here to discuss the merits of the project, but to receive comment and provide input regarding the EIR. Councilmember Lemons questioned the grading on hillsides and effect of the 4:1 mitigation plan. Mr. Elster stated 4:1 is a relatively flat slope; they are proposing slopes to be 2:1, and some in front will be 1.5:1. Mr. Farrel stated staff is recom- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 22, 1990 PAGE 19 mending the 4:1 ratio can reduce the toe of the slope rather than the top of the hills. Councilmember Lemons stated the EIR calls for improvements to the intersection of Highway 41 and Main Street, and Radcliffe and Main Street as a result of traffic impacts because of the pro- ject. He questioned where the additional traffic is coming from? He believed people coming from out-of-town will be using Highway 1 to get to the shopping center rather than City surface streets. Councilmember Wuriu stated Council is not considering whether or not they want a shopping center, but what the size, shape and scope of the project should be. He asked if the Williams people are prepared to make some compromises to develop a project which is acceptable to the people of Morro Bay? Mr. Courtney stated they will respond in detail to Council's questions and concerns. Mayor Sheetz stated she is concerned about Phase II and the large area for a regional or major department store. She asked who had been contacted to lease the store in Phase II? Mr. Courtney stated no one has been contacted yet; additional marketing stud- ies need to be done before contact is made. Mayor Sheetz asked if the building will be large enough to accom- modate a hotel? Mr. Courtney stated a hotel at this location is a misconception; there are no plans for a motel. Mayor Sheetz responded Mr. Williams had told her several years ago he wanted a Holiday Inn there. Mayor Sheetz commented a one -stop shopping center means just that; people will not be going out into other parts of the community. Mr. Farrel stated the applicant has never indicated any intention to build anything particular on the Phase II portion of the prop- erty. Staff requested the EIR analyze a motel land use to base traffic counts on so as to determine a "worst case" traffic impact. Mayor Sheetz asked unless Council knows what is going on that property, how can they determine the impacts? Mr. Farrel stated the applicant is not required to develop all of his property at once. Councilmember Lemons stated the fact the EIR was considering "worst case" scenarios should have been more forcefully stated and emphasized in the EIR. Councilmember Odell suggested the applicant consider an on -site treatment plant rather than connecting to the City sewer system in order to mitigate the impact on the wastewater treatment plant MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 22, 1990 PAGE 20 and the watershed. The on -site effluent could be discharged to restore the riparian habitat and flow of Willow Camp Creek. No action was taken. D-6 PUBLIC HEARING FOR APPEAL OF PLANNING COMMISSION DENIALS FOR A FAST-FOOD DRIVE -THROUGH RESTAURANT AT 940 MORRO BAY BLVD. (CUP 46-89/CDP 69-89R1, ADDITIONAL ON -SITE SIGNAGE (SIGN EXCEPTION PERMIT 02-89); AND OFF -SITE SIGNAGE AT 899 QUINTANA ROAD (SIGN EXCEPTION PERMIT 04-89); McDONALD'S CORPORATION. APPELLANT CONTINUE TO 24 JANUARY 1990 HEARING AT APPELLANT'S REQUEST This item was continued to January 24th at the request of the appellant. D-7 RECONSIDERATION OF REVISED WATER RATE SCHEDULE AND $7.50/MONTHLY SERVICE CHARGE ENACTED BY COUNCIL TO RAISE REVENUES FOR SUPPLEMENTAL WATER PROJECTS CONTINUE TO 24 JANUARY 1990 ADJOURNED MEETING This item was continued to January 24th. D-8 CONTINUED PUBLIC HEARING ON 1989 ANNUAL WATER REPORT AND CONSIDERATION OF RESIDENTIAL CONSTRUCTION AND WATER ALLOCA- TIONS FOR CALENDAR YEAR 1990 CONTINUE TO 24 JANUARY 1990 ADJOURNED MEETING. This item was continued to January 24th. E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.8. REAL PROPERTY NEGOTIATIONS. LEASE SITE 87-88W. 89/89W (GUNTHER; 833-845 EMBARCADERO) E-2 GOVERNMENT CODE SECTION 54956.9(A). PENDING LITIGATION. MODERN COMMERCIAL KITCHENS. INC. VS. BUNNELL CONSTRUCTION INC.. #66022 AND EVENSON, INC. VS. BUNNELL CONSTRUCTION. INC. AND THE CITY OF MORRO BAY. #66753 The Closed Session items were also continued to January 24th. F. MOTION: Councilmember Odell moved the meeting adjourn to Wednesday, January 24, 1990 at 6:00 p.m. in the Veterans Memorial Hall. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 22, 1990 PAGE 21 The meeting adjourned at 10:16 p.m. Recorded by: ale4k� ARDITH DAVIS City Clerk m/min122 • • 8, ia�o 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 8, 1990 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 Hearings 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 DECEMBER 11, 1989, AND THE SPECIAL MEETING OF DECEMBER 21, 1989 A-2 EXPENDITURE REPORT - NOVEMBER 1989 A-3 STATEMENT OF INVESTMENTS - NOVEMBER 1989 A-4 RESOLUTION NO. 01-90 AWARDING CONTRACT TO DONOHUE & ASSOCIATES, INC. FOR WATERLINE LEAK DETECTION PROJECT A-5 RESOLUTION NO. 03-90 SUPPORTING CALIFORNIA COASTAL CONSERVANCY GRANT TO COASTAL SAN LUIS RESOURCE CONSERVATION DISTRICT FOR IMPLEMENTATION OF PHASE I OF THE MORRO BAY WATERSHED PROGRAM A-6 SET HEARING DATE (JANUARY 22) FOR APPEAL OF RE -ISSUANCE OF COASTAL DEVELOPMENT PERMIT NO. 95-89R FOR MIMOSA STREET IMPROVEMENT DISTRICT (PRICE, APPELLANT) A-7 SET HEARING DATE (JANUARY 22) FOR APPEAL OF CERTAIN CONDITIONS TO CENTRAL COAST SEAFOOD'S PRECISE PLAN FOR IMPROVEMENTS AT 1001 FRONT STREET (CUP 08-89; DeGARIMORE, APPELLANT) A-8 AWARD OF CONSULTANT CONTRACT TO NASH & COMPANY FOR CITYWIDE EMPLOYEE CLASSIFICATION STUDY 0 A-9 SET HEARING DATE (JANUARY 22) FOR APPEAL OF PLANNING COMMISSION DENIALS FOR A FAST—FOOD DRIVE —THROUGH RESTAURANT AT 940 MORRO BAY BLVD. (CUP 46-89/CDP 69-89R), AND EXTRA ON —SITE SIGNAGE (SIGN EXCEPTION PERMIT 02-89); McDONALD'S CORPORATION, APPELLANT A-10 RESOLUTION NO. 02-90 AUTHORIZING INSTALLATION OF YIELD SIGN ON JAVA STREET AT BEACHCOMBER AVENUE INTERSECTION B. UNFINISHED BUSINESS NONE C. NEW BUSINESS NONE D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 ORDINANCE NO. 367 DELETING REQUIREMENT FOR JOINT MEETING WITH RECREATION AND PARKS COMMISSION IN DECEMBER OF EACH YEAR (INTRODUCTION/FIRST READING) D-2 RESOLUTION NO. 04-90 ESTABLISHING PERMIT AND ASSOCIATED FEES FOR UNREINFORCED MASONRY REHABILITATION CONSTRUCTION (MASTER FEE SCHEDULE) PULLED D-3 CONSIDERATION OF 1989-90 MID —YEAR CAPITAL IMPROVEMENT BUDGET D-4 REQUEST FOR MODIFICATION TO CONDITIONS OF TRACT MAP 01-85 (LOPERENA, APPLICANT; TRACT 1231) REQUIRING RESIDENTIAL ROOF DRAINAGE TO STREETS (WEST SIDE OF IRONWOOD BETWEEN MIMOSA AND AVALON STREETS) D-5 REFUSE FRANCHISE BOARD RECOMMENDATION TO IMPLEMENT A CURBSIDE RECYCLING PROGRAM WITH CORRESPONDING 8.38% ACROSS—THE—BOARD RATE INCREASE; AND, DEFERRAL OF LOCAL RECYCLING MASTER PLAN NEED TO AB 939 PROCESS D-6 PUBLIC HEARING ON 1989 ANNUAL WATER REPORT AND CONSIDERATION OF RESIDENTIAL CONSTRUCTION AND WATER ALLOCATIONS FOR CALENDAR YEAR 1990 E. CLOSED SESSION 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 INSkCTION AND REPRODUCTION AT COST. e/agenl8 6 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 8, 1990 VETERANS MEMORIAL HALL - 6:00 P.M. Vice Mayor Odell called the meeting to order at 6:00 p.m. ROLL CALL PRESENT: Jeff Odell John Baker John Lemons Tom Wuriu ABSENT: Rose Marie Sheetz STAFF: Gary Napper Judy Skousen Louise Burt Ardith Davis William Farrel Forrest Henderson Dave Howell Nick Nichols Mike Upton Bernie zerr Vice Mayor Councilmember Councilmember Councilmember Mayor City Administrator City Attorney Finance Director City Clerk Community Dev. Dir. Asst. City Admin. Police Chief Public Works Dir. Admin. Asst. Fire Chief Forrest Henderson gave the invocation, and Horace Strong led the Pledge of Allegiance. PUBLIC COMMENT 1. Mary Phillips, 2645 Ironwood, requested the City Attor- ney provide her a legal opinion on Government Code §54346, which she believes says she does not have to pay for garbage service if she does not use the service. Ms. Skousen stated Council can direct her to research this mat- ter; however, that action will have to take place at a subsequent meeting since it is not scheduled on tonight's agenda. 2. Bob Finley, merchant at 415 Morro Bay Blvd., thanked Council and City staff for working with the business community regarding the URM ordinance. He also understands Mr. Nicklas is attempting to develop a fee program which will have the least monetary impact on those affected; he appreciates these considerations. 3. Coreen Cropschot, Danville, explained the problems she has encountered in attempting to obtain a building permit which resulted in their application for a single family home placed 324 on the waiting list. She said she and her husband want to retire in Morro Bay, and it seems they will have to give up their dream; building speculators should have last priority. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 8, 1990 PAGE 2 4. Linda Merrill, 390 Sequoia, asked how she could obtain the minutes or listen to tapes of the Planning Commission and City Council meetings? She does not believe the newspapers are reporting what takes place at the meetings regarding the Williams Brothers project. Mr. Napper explained she can obtain this information through the City Clerk. DECLARATION OF FUTURE AGENDA ITEMS 1. Vice Mayor Odell requested an item be scheduled on the next Council meeting to consider the request of Ms. Phillips for a legal opinion on whether or not she is required to pay a garbage bill if she does not use the services. A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF DECEMBER 11, 1989, AND THE SPECIAL MEETING OF DECEMBER 21, 1989 Mr. Napper recommended Council approve the minutes as submitted. A-2 EXPENDITURE REPORT - NOVEMBER 1989 Mr. Napper recommended Council approve the Expenditure Report. A-3 STATEMENT OF INVESTMENTS - NOVEMBER 1989 Mr. Napper recommended Council receive the report for file. A-4 RESOLUTION NO. 01-90 AWARDING CONTRACT TO DONOHUE & ASSOCI- ATES, INC. FOR WATERLINE LEAK DETECTION PROJECT Mr. Napper recommended Council adopt Resolution No. 01-90 award- ing a water system leak detection project to Donohue & Associ- ates, Inc., in the amount of $11,000. A-5 RESOLUTION NO. 03-90 SUPPORTING CALIFORNIA COASTAL CONSER- VANCY GRANT TO COASTAL SAN LUIS RESOURCE CONSERVATION DIS- TRICT FOR IMPLEMENTATION OF PHASE I OF THE MORRO BAY WATER- SHED PROGRAM Mr. Napper recommended Council adopt Resolution No. 03-90. A-6 SET HEARING DATE (JANUARY 22) FOR APPEAL OF RE -ISSUANCE OF COASTAL DEVELOPMENT PERMIT NO. 95-89R FOR MIMOSA STREET IMPROVEMENT DISTRICT (PRICE. APPELLANT) Mr. Napper recommended Council set 22 January 1990 as the hearing date, and authorize staff to prepare the appropriate notices and reports for the appeal hearing. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 8, 1990 PAGE 3 A-7 SET HEARING DATE (JANUARY 22) FOR APPEAL OF CERTAIN CONDI- TIONS TO CENTRAL COAST SEAFOOD'S PRECISE PLAN FOR IMPROVE- MENTS AT 1001 FRONT STREET (CUP 08-89; DeGARIMORE. APPELLANT) Mr. Napper recommended Council set 22 January 1990 as the hearing date, and authorize staff to prepare the appropriate notices and reports for the appeal hearing. A-8 AWARD OF CONSULTANT CONTRACT TO NASH & COMPANY FOR CITYWIDE EMPLOYEE CLASSIFICATION STUDY Mr. Napper recommended Council authorize hiring Dr. Michael Nash of Nash and Co. to conduct an employee classification study, and allocate $12,450 from FY 89-90 General Fund Contingency for this project. A-9 SET HEARING DATE (JANUARY 22) FOR APPEAL OF PLANNING COMMIS- SION DENIALS FOR A FAST-FOOD DRIVE -THROUGH RESTAURANT AT 940 MORRO BAY BLVD. (CUP 46-89/CDP 69-89R). AND EXTRA ON -SITE SIGNAGE (SIGN EXCEPTION PERMIT 02-89); MCDONALD'S CORPORA- TION, APPELLANT Mr. Napper recommended Council set 22 January 1990 as the hearing date, and authorize staff to prepare the appropriate notices and reports for the appeal hearing. A-10 RESOLUTION NO. 02-90 AUTHORIZING INSTALLATION OF YIELD SIGN ON JAVA STREET AT BEACHCOMBER AVENUE INTERSECTION Mr. Napper recommended Council adopt Resolution No. 02-90. MOTION: Councilmember Wuriu moved for approval of the Consent Calendar as recommended by the City Administrator. The motion was seconded by Councilmember Baker and unani- mously carried. (4-0) B. UNFINISHED BUSINESS NONE NONE D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 ORDINANCE NO. 367 DELETING REQUIREMENT FOR JOINT MEETING WITH RECREATION AND PARKS COMMISSION IN DECEMBER OF EACH YEAR (INTRODUCTION/FIRST READING) Mr. Napper stated at the last meeting, Council cancelled the December joint meeting with the Recreation and Parks Commission, and directed staff prepare an ordinance deleting the required MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 8, 1990 PAGE 4 December meeting from the Ordinance. He noted Council can call meetings with their various boards and commissions as the need arises. Vice Mayor Odell opened the hearing to the public for comments; there were no comments and the hearing was closed. MOTION: Councilmember Baker moved Ordinance No. 367 be read by title and number only. The motion was seconded by Councilmember Wuriu. Councilmember Lemons stated it is a good idea to meeting two times each year with the Recreation and Parks Commission, as well as the Water and Harbor Boards and the Planning Commission. He does not believe Council should reduce the number of meetings. Councilmember Baker concurred; however, he was in favor of elimi- nating extra meetings in December. Councilmember Wuriu agreed with the cancellation of meeting in December; he believes the boards are functioning independently without Council's assis- tance. Councilmember Lemons stated he was suggesting there be more communication; some commissioners and boardmembers do not know all Councilmembers. Councilmember Baker suggested passing the Ordinance as written and contacting the boards and commissions as to their opinion in having more joint meetings. Vice Mayor Odell pointed out Council can always call meetings with any committee at will. The motion to read Ordinance No. 367 by title and num- ber only passed unanimously. (4-0) MOTION: Councilmember Baker moved for introduction and approval of Ordinance No. 367 as first reading. The motion was seconded by Councilmember Wuriu and carried with Coun- cilmember Lemons voting no. (3-1) D-2 RESOLUTION NO. 04-90 ESTABLISHING PERMIT AND ASSOCIATED FEES FOR UNREINFORCED MASONRY REHABILITATION CONSTRUCTION (MASTER FEE SCHEDULE) UP LLED D-3 CONSIDERATION OF 1989-90 MID -YEAR CAPITAL IMPROVEMENT BUDGET Mr. Napper advised the City's unaudited Fund Balance is $1,961,123. Continuing with Council policy to reserve at least 10% as a Reserve Fund Balance ($950,000), $1,056,123 is available for capital projects. Department Heads submitted priority pro- jects for consideration, and Mr. Napper recommends 38 of these projects to Council. He reviewed the proposed expenditures and their sources of funding. Councilmember Baker questioned the need for General Fund monies to support street projects. Mr. Napper explained all gas tax revenue ($131,333) has been used on Street Division projects; MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 8, 1990 PAGE 5 however, more street improvements are needed and therefore must be paid for through the General Fund. Councilmember Wuriu asked about the need for a reserve fund for the South T-Pier. Mr. Napper explained the reserves are to pay for legal fees as the City fights Firemen's Fund to meet their insurance obligations. He reviewed other efforts the City is making to obtain funding for reconstruction of the T-Pier from the Coastal Conservancy, State Boating and Waterways, and the Office of Emergency Services. Councilmember Lemons questioned the $130,000 expenditure for air pollution equipment for the sewer system. Mr. Nichols said the Air Pollution Control Board has determined the emission of sul- fides at the treatment plant is above allowable levels in viola- tion of State law, and directed the problem be resolved. He noted the $130,000 is Morro Bay's 65% share of the cost; Cayucos Sanitary District will pay the remainder $70,000 of the total project cost of $200,000. Councilmember Baker asked if it is necessary to paint the hydro - vac? Mr. Nichols stated the equipment is beginning to show signs of corrosion from the marine air; this expenditure will prolong the life of the $100,000 machine. Vice Mayor Odell opened the hearing to the public for comments. Mary Phillips, 2645 Ironwood, asked when the Fire Department last received an allocation for capital improvements? Mr. Napper stated they received $6,000 for the Fire hose in July of 1989, and $148,500 out of reserves for a fire ladder truck. Ms. Phillips stated the Police Department is budgeted at $1.2 mil- lion, the Fire Department at $830,000, and Recreation and Parks at $900,000. She also commented on Item D-1 stating Council should take the time to go to commission and board meetings to find out what is going on. Nancy Bast, 450 Fairview, questioned why there were no capital expenditures budgeted for retrofitting parks; asked if the air pollution expenditure includes correcting the manhole odor prob- lems on North Main Street; and asked why more than $42,000 had not been budgeted for water projects when there is so obvious a need and water rates had been increased to residents? Mr. Napper stated Council reserved the initial retrofit program for parks for Mr. Trapp's Embarcadero project, and Mr. Napper has not heard yet whether or not he intends to pursue his project; Council can allocate money for this purpose if they wish. The manhole odor problems on North Main Street are caused by Cayucos Sanitary District transmission lines, and the air pollution expenditure will resolve that problem. Mr. Napper stated only $42,000 for water projects is recommended because that is all the amount of money in the Water Fund; Council can allocate water projects out of the General Fund if they desire. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 8, 1990 PAGE 6 Councilmember Wuriu asked if a deadline had been set for Mr. Trapp by when he must decide if he will retrofit a park for his project? He believed parks should be retrofitted as soon as pos- sible. Mr. Napper stated he will write a letter to him; Mr. Trapp indicated his project may no longer be solvent after Coun- cil's decision regarding retrofitting of parks, and was supposed to provide Mr. Napper with the decision of his economic analysis. Vice Mayor Odell closed the hearing to the public. Councilmember Wuriu stated he was disappointed no funds were allocated to improving traffic control signage on City streets; specifically San Jacinto. He said it is a main thoroughfare and should be signed at all cross -streets. He said it was odd some streets had yield signs on one side of the street, but not the other. Councilmember Wuriu suggested $1,000 should be enough to properly sign this street. Councilmember Lemons asked if the Street Advisory Board had con- sidered this matter. Mr. Nichols stated they had, and determined no signs are needed in that area. Vice Mayor Odell agreed with Councilmember Wuriu that more sig- nage on City streets is needed; he said it is a public safety issue. Councilmember Lemons commented the American Institute of Traffic Engineers states if you put a stop sign at an intersection where a normal driver does not expect one, you are creating a hazardous situation. He has no objections to signing streets if someone with expertise has studied the intersections and recommends it for signage based upon accepted traffic standards. Councilmember Wuriu stated he had been hearing arguments from traffic engineers for a long time regarding the need for a number of accidents at an intersection before signage is appropriate; he does not agree with that philosophy. MOTION: Councilmember Lemons moved the Street Advisory Commit- tee and Public Works Department study San Jacinto and recommend what type of change in signage should be installed. The motion was seconded by Councilmember Baker. Councilmember Wuriu commented the motion is a good way to delay the subject to extinction. The motion failed with Councilmember Wuriu and Vice Mayor Odell voting no. (2-2) MOTION: Councilmember Wuriu moved $1,000 be put in the budget for appropriate traffic signage on San Jacinto. The motion was seconded by Vice Mayor Odell. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 8, 1990 PAGE 7 Councilmember Lemons asked what is "appropriate traffic signage" and who will make the determination? Councilmember Wuriu stated appropriate signs are stop and yield signs and Public Works will determine which to use. The motion was unanimously carried. (4-0) Councilmember Lemons asked what account the $1,000 will come from. Mr. Napper suggested using FY 89-90 General Fund Contin- gencies; there is a balance of $46,000 in that account. MOTION: Councilmember Wuriu moved the $1,000 for traffic signage on San Jacinto be allocated from the FY 89-90 General Fund Contingencies. The motion was seconded by Councilmember Lemons and unanimously carried. (4-0) MOTION: Councilmember Lemons moved Council authorize the FY 89- 90 Capital Improvement Budget as submitted. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) D-4 REQUEST FOR MODIFICATION TO CONDITIONS OF TRACT MAP 01-85 (LOPERENA. APPLICANT; TRACT 1231) REOUIRING RESIDENTIAL ROOF DRAINAGE TO STREETS (WEST SIDE OF IRONWOOD BETWEEN MIMOSA AND AVALON STREETS) Mr. Farrel reviewed the history of the project and the appli- cant's current request to revise a condition of his application to allow drainage to the ditches along the rear of the downhill lots rather than using aerial drain pipes as required in the per- mit. Five of the 13 lots drain naturally to the street. Mr. Farrel suggested the unattractiveness of aerial piping systems can be hidden by connecting the roof drainage system to a fence, and recommended amending the condition to allow drainage systems to drain to the rear yards where the necessary aerial piping would be higher than 4 feet. Mr. Farrel requested Council amend the proposed Resolution No. 06-90 to delete the last part of the second number 2 in the find- ings, "... subject to the conditions attached hereto, including special condition #8." Also, the page titled "Conditions of Approval" 1-7 should be deleted, and #8 changed to #19 under Special Conditions. These are housekeeping changes to the draft Resolution. Vice Mayor Odell opened the hearing to the public for comments. Nancy Bast, 450 Fairview, said she was curious if the residences adjoining this property were notified the matter would be heard this evening? Mr. Farrel stated they had. Vice Mayor Odell closed the hearing to the public. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 8, 1990 PAGE 8 Councilmember Baker questioned if a drainage system would really be attractive along a fence. It does not seem a practical solu- tion. Mr. Farrel said drainage systems can be designed for a fence; other places have done it, but not in Morro Bay. Councilmember Lemons did not like the original condition; he said the only difference this solution makes to the drainage flows to the back of the lots is the small run-off from the roof. Mr. Napper suggested requiring roof drainage to the street for Lots 1-5, and allowing roof drainage to the lined drainage swale at the rear of Lots 6-13. He noted the rear drainage swale is designed for a 25-year storm to handle all 13 lots. MOTION: Councilmember Baker moved the condition be amended to require roof drainage to the street for Lots 1-5, and allow roof drainage to the lined drainage swale at the rear of Lots 6-13. The motion was seconded by Coun- cilmember Lemons. Councilmember Baker amended his motion to also amend Resolution No. 06-90 as noted by Mr. Farrel. The amendment was accepted by Councilmember Lemons and the motion was unanimously carried. (4-0) D-5 REFUSE FRANCHISE BOARD RECOMMENDATION TO IMPLEMENT A CURB- SIDE RECYCLING PROGRAM WITH CORRESPONDING 8.38% ACROSS-THE- BOARD RATE INCREASE; AND, DEFERRAL OF LOCAL RECYCLING MASTER PLAN NEED TO AB 939 PROCESS Mike Upton, Administrative Assistant, reviewed the requirements of AB 939 mandating cities and counties to develop a program for source reduction, waste reduction, and recycling. It provides for the creation of a County Task Force to oversee the program and institutes very stringent requirements. The Refuse Franchise Board recommends the City defer a local recycling master plan to the local processing of AB 939, and implement a curbside recy- cling program with an across-the-board rate increase. Mr. Upton stated the Refuse Board has been discussing recycling for 2 years. The Board has received information, reports and presentations from various agencies and consultants, and they came to the conclusion that voluntary participation in a curbside recycling program is the best method; it eliminates the cost of policing and enforcement. He noted curbside recycling will still allow people to take their recycling products to whom they want for refunds or donation. The Board's recommendation also pro- poses an 8.38% across-the-board garbage rate increase to fund the recycling program; this amounts to 500 per month for the average residential refuse customer. Nancy Wood, County Recycling Coordinator, stated AB 939 requires local governments to achieve a 25% recycling diversion of munici- pal waste by 1995, and 50% by the year 2000. She stressed curb- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 8, 1990 PAGE 9 side recycling is not a money-maker. The refuse collector cannot rely on the market to pay the operating costs; the market is unpredictable because of increased recycling. She said curbside recycling should be viewed as a service; a portion of the rate increase will go to educate the public and advertise the program. Councilmember Lemons asked if a source reduction and recycling element will require an EIR? Ms. Woods stated that subject has not been discussed yet. Councilmember Baker stated the proposed program is great; how- ever, if a profitable market for recyclables does not exist, where will everything accumulate? Ms. Woods said legislation is currently being proposed which would stimulate recycling markets in California. Councilmember Lemons asked if any legislation has been considered to require changes in packaging? Mr. Nichols stated there has been some, but it is limited. Councilmember Lemons asked if the County is considering legisla- tion that would allow a break on bids for office supplies if recycled paper is used? Mr. Nichols stated the County recently passed an ordinance which allows the purchasing department to apply a 5% "discount" for recycled paper when considering vendor proposals. Tom Martin, Controller, Morro Bay Garbage Service, stated they have a warehouse in Pomona who has taken their newsprint for a number of years, and believes that market will continue. He said the recyclable materials will be picked up the same day as regu- lar garbage service. Mr. Martin stated a portion of the increase in rates will go towards a $2 per capita advertising program to educate the public on recycling. He will account for all monies received and those funds not spent on advertising, labor and materials costs will be returned to the City. He emphasized Morro Bay Garbage Service will not be making a profit on this venture. Their main goal is to keep recyclables out of the waste stream. Councilmember Wuriu asked if the 500 residential charge is guar- anteed for any length of time? Mr. Martin stated at some point, they may begin to make money on recycling materials and the full 500 charge will not be necessary. Councilmember Baker asked what is the tipping fee for Cold Canyon Landfill? Mr. Martin stated it is the per tonnage fee Cold Canyon charges for Morro Bay Garbage Service to dump at the land- fill, and will increase shortly due to State legislation mandates. Sandra Santini, Chairman of the Refuse Collection Franchise Board, stated the Board has studied this subject for two years MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 8, 1990 PAGE 10 and they strongly feel their recommendation is the best plan available. She encouraged Council to approve the plan. Vice Mayor Odell stated although curbside recycling will be vol- untary, is the new fee mandatory? Mr. Upton stated yes. Vice Mayor Odell opened the hearing to the public for comments. Mary Phillips, 2645 Ironwood, stated it is ridiculous"to expect people who don't want to recycle to pay the 50G fee. She pointed out the Seniors made $4,000 on aluminum cans last year, and said Council will be punishing those who try to save and recycle. Howard Gaines, 441 Orcas, stated the bins to be provided by Morro Bay Garbage Service can easily be tipped over by dogs and the contents scattered over the neighborhood. He also cautioned Council to make sure the agreement contains a provision for Morro Bay to share in recycling profits; there may be a considerable market for it in the future. He said the voluntary recycling program conflicts with the mandatory fee, and noted Mr. Cattaneo, owner of Morro Bay Garbage Service, is part owner in the land- fill. He said he would be happy to pay the 500,/month increase just to pick-up his newspapers. Geraldine Price, President of the Senior Citizens, stated the Seniors have been recycling for years, and she believes this pro- gram will take this revenue from them. She also objected to the mandatory fee. The Seniors are asking Council to say no to this program. Harry Marks, 350 Kings Avenue and a , member of the Refuse Board, stated the program recommended is outstanding; and, there is no intention to take away from those who recycle on their own. Curbside recycling helps people recycle more. Jim Hough, 2555 Hemlock, stated the Seniors made $4,000 last year on cans, and they pick-up when requested. The program is in com- petition with the Seniors. Brian Touey, Coast Recycling, encouraged Council to evaluate the higher purpose of recycling and the ultimate goal. He said the revenue the Seniors and others rely on in their recycling pro- grams will not be affected by curbside recycling. Kathleen Pennington stated the program does not require residents to recycle, but the 50q charge will pickup a household's newspa- pers and makes it easier for people to recycle. Councilmember Baker asked if the Seniors could pickup the bins set out for recycling? Mr. Martin stated individuals can use the bins to take their goods to a recycling center, but he believes there are anti -scavenging laws against going through one's garbage at curbside. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 8, 1990 PAGE 11 Barbara Playan, 3116 Tide, stated the bins are small and asked if they have covers? Mr. Martin stated there are no covers; people should place newspapers in paper bags or bundle them with string. Nancy Bast stated there is a major problem of incredible waste that is generated. The opportunity to save natural resources for $6.00 per year is not too much to ask, and it will create more recycling opportunities. Linda Merrill, Sequoia, stated she is in favor of the recycling program. Brian Touey, Coast Recycling, gave figures the recycling compa- nies pay for cans, and stated people can save the 500 per month by recycling their cans themselves and receiving the money directly. Geraldine Price requested Council conduct the program on a volun- tary basis, including the fee. Councilmember Lemons stated the Refuse Board had done a great job in developing this program. He is in favor of it, and stated the voluntary participation is necessary to alleviate the costs of enforcing a mandatory participation program. He believes this program will be very successful in Morro Bay. Councilmember Wuriu agreed with Councilmember Lemons; recycling is upon us and the time is here to move forward with this program for the entire City. Councilmember Lemons asked if consideration had been given to adding grass clippings to the recycling program? Mr. Upton stated new state law requires cities to look into composting, and it will be considered as part of the upcoming AB 939 planning process. vice Mayor Odell stated he has been recycling for a number of years and, in effect, has been subsidizing garbage collection since he seldom puts 6 cans of garbage out for collection. He is in favor of the program except for the across-the-board rate increase. Councilmember Lemons said this is a bargain program that gives everyone the opportunity to recycle; people are paying the costs of cleaning -up the environment. MOTION: Councilmember Lemons moved staff be directed to prepare the necessary documents to implement a curbside recy- cling program in Morro Bay with corresponding rate increase, by 01 April 1990. The motion was seconded by Councilmember Baker and carried with Councilmember Odell voting no. (3-1) Council recessed from 9:02 p.m. to 9:10 p.m. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 8, 1990 PAGE 12 D-6 PUBLIC HEARING ON 1989 ANNUAL WATER REPORT AND CONSIDERATION OF RESIDENTIAL CONSTRUCTION AND WATER ALLOCATIONS FOR CALEN- DAR YEAR 1990 Mr. Farrel stated a lengthy analysis of this issue has been pre- pared for Council information. He summarized the questions and recommendations from staff, and noted that although new water sources are being pursued, it is not likely the City will be able to continue a full building program until supplemental water is received. Mr. Farrel also reviewed the recommendations from the Water Advisory Board and the Planning Commission to continue using the "blend" program, allowing � an applicant's water be obtained through retrofit and � through purchase of pipeline replacement water from the City. Both the Water Advisory Board and the Planning Commission were concerned about ways to extend the life of the 2 programs in the future and trying to keep costs down somewhat for participants. Councilmember Wuriu asked if it would be possible to set-up the allocation for the year as recommended, but not actually grant the first quarter? Mr. Napper said yes, noting Council did the same thing last year by reserving the quarterly allocation deci- sion for themselves. vice Mayor Odell opened the hearing to the public for comments. Bruce Risley, 450 Piney Way, stated he supports the recommenda- tion which calls for an end to the subsidy for new building in Morro Bay. He said last year in April he urged Council to end the subsidy; at that time over $1 million had been subsidized by the City for building, and another $500,000 has been lost for this purpose since then. He said the staff report is thorough but inconclusive, and suggests the City not retrofit the retrofit. Nancy Bast, 450 Fairview, requested Council adopt the staff rec- ommendation deleting the credit provided for the retrofit pro- gram. If Council had eliminated the credit earlier, it could have covered the $225,000 annual water capital needs cost being discussed. Howard Gaines, 441 Orcas, suggested Council wait to see what nature will bring in the way of rain before allocating water equivalencies; he noted this is the City's fourth year of drought conditions. Be conservative, why the hurry; the retrofit program is a pig -in -a -poke. Kathy Leech, 411 Jamaica, agreed with the staff recommendations and suggested all new building be required to have approved water -conserving landscaping, and any new landscaping be subject to City approval. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 8, 1990 PAGE 13 Richard Harvey, 1188 Market, commented inflation in housing costs in Morro Bay by builders got the break. 10 on the extremely high this proposal; earlier Tony Linhares, 960 Hillside, made numerous allegations concerning the City's waste of water, including a new street sweeper that uses more water and having to dump 630,000 gallons of contami- nated water in Kings Tank due to a mistake. Retrofitting is ridiculous, people will just flush more using 1� gallon toilets. Water levels are so low it will take 2 years to replenish the basins. Mr. Linhares stated it is unbelievable Council is con- sidering allocating water for building just to satisfy contrac- tors. Mr. Nichols responded to the allegations the City is wast- ing water; to the best of his knowledge, none of Mr. Linhares' allegations are true. Katherine Walling stated in the 1950's and 19601s, Chorro Willows had an abundant willow growth; it is all dead and gone now because of salt water intrusion. She believes it is irresponsi- ble of the Chamber to try to get people to come to Morro Bay with the water situation as bad as it is. Bill Wittiger, 2710 Fir, stated he purchased a lot in Morro Bay four years ago and wants to build one house. He requested Coun- cil approve building allocations. Larry Pennington, 467 Avalon, stated Council should not allow any more building until we can supply them with water. John Heimel, 2998 Cedar, agrees with the staff report; retrofit does not use any more water. People in Morro Bay earn a living from the building trade, and building should be allowed to con- tinue if it can be done without impact to the water situation. Tony Linhares disagreed with Mr. Nichols comments, and stated the City is going down -hill fast, and needs to wake up; retrofit doesn't save water. Linda Merrill, Sequoia, stated Council faces a difficult problem and she hopes they have the courage to make the right decision. Anne Freeman, 785 Cabrillo, questioned the quality of City water; she asked should residents be concerned about the quality of water? Mr. Nichols stated the quality of water is experiencing normal deterioration as it does each year at this time from what the City would like to provide. Because of no rain water recharge, the City is experiencing increased TDS levels. At the current time, the City meets all health requirements established by the State of California. There is a aesthetic deterioration, but it is hopefully a temporary situation. Vice Mayor Odell closed the hearing to the public. MINUTES - MORRO BAYCITY COUNCIL REGULAR MEETING - JANUARY 8, 1990 PAGE 14 Councilmember Lemons stated he would like to have more time to review the information before taking action. MOTION: Councilmember Lemons moved the hearing be continued to January 22nd. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) E. CLOSED SESSION None F. ADJOURNMENT MOTION: Councilmember Baker moved the meeting be adjourned. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) The meeting adjourned at 10:06 p.m. Recorded by: ARDITH DAVIS City Clerk e/min18