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HomeMy WebLinkAboutJuly to December (3)i 6 City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. SPECIAL MEETING - VETERANS MEMORIAL 209 SURF ST., ROLL CALL PLEDGE OF ALLEGIANCE DECEMBER 18, 1990 HALL - 6:00 P.M. MORRO BAY, CA 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 at this time. 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. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 PUBLIC WORKS REPORT ON PRIORITIES AND ALTERNATIVES EXAMINED FOR DEVELOPMENT OF SUPPLEMENTAL CITY WATER SUPPLIES D-2 PRESENTATION BY LAKE NACIMIENTO REGIONAL WATER MANAGEMENT ADVISORY COMMITTEE D-3 PRESENTATION BY SOURCE ONE SERVICES (CALGON) REGARDING WATER CONSERVATION PROGRAM FOR LARGE -VOLUME COMMERCIAL LAUNDRY WATER USERS D-4 OPEN DISCUSSION ON PRESENT AND PROSPECTIVE CITY WATER POLICIES AND PROJECTS 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 SPECIAL MEETING - DECEMBER 18, 1990 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. PRESENT: Rose Marie Sheetz John Baker Ben Luna Susan Mullen Tom Wuriu ABSENT: None STAFF: Gary Napper Judy Skousen Bill Boucher Louise Burt Ardith Davis William Farrel Nick Nichols Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Assoc. Engineer Finance Director City Clerk Community Dev. Dir. Public Works Dir. Councilmember Baker led the Pledge of Allegiance. 1. John Lemons requested he be allowed to ask questions pertaining to Item D-2. Mayor Sheetz stated she will open the matter to the public. D. PUBLIC HEARINGS, REPORTS & APPEARANCES • _INWIM♦ • i_f * ' • _, _ • _ • ' • _ a _ ;_�_y _ • WO-0 n-04M Mayor Sheetz stated the meeting has been called for the purpose of reviewing the City's water priorities and alternatives. She commended the citizens of Morro Bay for their efforts at conser- vation, and noted Council will not take action on items tonight but rather give direction to staff for further action at subse- quent meetings. Bill Boucher introduced Leslie Blair, new Associate Civil Engi- neer; Mayor Sheetz welcomed her to the City. Mr. Napper reviewed current water usage and said the City is pro- ducing 2% less water than last year at this time. (1460 a.f. vs. 1490 a.f.). MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - DECEMBER 18, 1990 PAGE 2 Mr. Nichols gave a detailed report on the City's needs and expec- tations concerning water consumption. He said water resources have suffered due to a 4-year drought and increased agricultural uses. He noted previous Council commitments to these water pro- jects, not in any given priority: Coastal Streams Diversion, San Bernardo Dam, water treatment plant, and State Water Project. He reviewed project status in detail, as well as current water resources. Mr. Nichols reviewed the City's plans for a short-term emergency desalination project for 1991 should the drought continue; and, the City of San Luis Obispo's plans for construction of a seawa- ter desalination facility in Morro Bay at the P.G.&E. power plant. Council's determination on Morro Bay's participation in this project should be pursued only if it would provide a perma- nent long-term source of additional water for Morro Bay. Mr. Nichols reviewed a chart of water projects detailing each pro- ject's water yield, capital cost, annual cost, and when the pro- ject might be completed. Councilmember Wuriu stated Council is in receipt of a letter from Bill Hetland of the City of San Luis Obispo formally asking for Morro Bay's participation in their desal project. He said since Morro Bay has been waiting for an answer from them on negotiating an agreement for the Coastal Streams project for some time, per- haps that question could be included in discussions with them. Mayor Sheetz stated she intends to discuss that item under D-4. Councilmember Baker asked if there are any hidden costs in his figures on State Water? Mr. Nichols stated those are the figures from the EIR which contains the latest update. Mayor Sheetz asked if the figures shown for Nacimiento Lake water are based on Morro Bay being the only participant? Mr. Nichols stated no, they are based on a 1974 figure with Morro Bay being a participant with other agencies; an inflation factor has been added to update the figure. Mayor Sheetz opened the hearing to the public for comments on the report. Charles Palmer cautioned the Council their decisions should be based on the welfare of the people of the City. He said Council should look at other things presented from the public for water solutions which may be more productive than those suggested by staff. Cecil Carey, 155 Sienna, stated he is a consultant civil and agricultural engineer. He is disturbed because he does not believe Council is concerned with the severe water problem in Morro Bay. He said Council spends thousands of dollars every year in water studies and not a single drop of water has ever MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - DECEMBER 18, 1990 PAGE 3 been developed. He believes the State Water Project is the most viable project to get water within the next few years. Council has until May 1991 to make this decision, and it is imperative Council take immediate action to start the State Water process. He said new water supplies will not increase growth; Measure F already curtails tremendous growth. John Linhares, 2718 Alder, said State Water is viable in the long-term; in the short term, Council should revise their deci- sion to drill eight test wells; drill only two or three good- sized wells and buy reverse osmosis equipment as opposed to rent- ing desal units. Mary Phillips distributed a letter she received from S.N. Arrington, a Missouri sales broker, regarding transporting water to Morro Bay. She said the City has had this letter of intent on their desk since April 1990 and has not responded to it, nor advised Council of the matter. She reviewed prices of Canadian water which appear reasonable to her. Mr. Nichols stated staff did reply to the letter from Mr. Arrington requesting more information before signing a Letter of Intent; no response was forthcoming. He reviewed the various questions which need to be answered before the City can sign an agreement: water source, dependability, quality, and loading; means of transporting the water; unloading the vessel; storage; and treatment. Councilmember Baker indicated he thought the total cost would be $7,000 per acre foot of water. Bruce Risley, 540 Piney Way, said Council needs to take into con- sideration the current dry spell could continue on into the future. The best source of short-term water is more conservation by the people. He was shocked to learn The Inn at Morro Bay has not been retrofitted. He encouraged Council to re-establish com- munication with the City of San Luis Obispo on joint water projects. Don Smith, San Luis Obispo, stated he has three reports that state Nacimiento water is cheaper than State Water. He suggested staff look into this. David Morrow, 636 Bernardo, stated we live in a coastal desert and people are trying to alter their environment to something it is not. Even with the strict conservation methods in place, peo- ple are still washing off their driveways. He said the City's present water rate schedule allows people to use water in a wasteful manner. The schedule must be structured to force people to save water; the pricing method is irrational. Charles Palmer displayed graphs and stated 50% of Morro Bay water customers use 5 of of water or less; in-house usage should not exceed 50 gallons per person per day. People have to be encour- MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - DECE14BER 18, 1990 PAGE 4 aged financially to decrease their water consumption, and he does not believe the City's pricing structure does this. He showed several charts on which he based his assumptions. Mayor Sheetz called a recess at 7:29 p.m.; Council reconvened at 7:37 p.m. • PRESENTATION • _4K_M • • ,MANAGEMENT ADVISORY COMMITTEE Connie Flowers, Vice -Chairperson of the Nacimiento Regional Water Management Advisory Committee, stated the Committee was formed in August 1989. The property owners and residents of Lake Nacimiento formed the Committee to work towards stabilizing the level of Lake Nacimiento and to work for adoption of solutions to improve regional water resources management in the Central Coast. She discussed the EIR on the Castroville Marina Seawater Intru- sion Project in Monterey County which will outline the steps to be taken to stop seawater intrusion into the Northern Salinas Basin; this has regional implications to water management in San Luis Obispo County. Their Committee monitors the State Water Project extension to the Central Coast, and SB 2580 (and related clean-up legislation) which applies to the Monterey County Flood Control and Water Conservation District. Ed Quevedo, attorney for the Nacimiento Regional Water Management Advisory Committee, stated the State Water Resources Control Board has adopted a policy statement that wherever possible water resource planning shall take place on a regional basis. The Com- mittee's focus is to look at the water problem and drought on a regional basis and comment to the Board of Supervisors of Monterey and San Luis Obispo regarding same. The Committee is working on bringing about an awareness of projects being planned in Monterey County. Mr. Quevedo stated Monterey County is currently looking at a Boyle Engineering Report which is on a water capital facilities plant for Monterey County. Some of the elements of the Report include building additional reservoir storage in the Santa Lucia Watershed which is where Lake Nacimiento and Lake San Antonio are located. Any use of water from this area leaves less for other interests. He said there is water available to the City of Morro Bay from Lake Nacimiento that can be used under a current enti- tlement that benefits the County of San Luis Obispo. Monterey's interests could supercede any attempts by San Luis Obispo to increase the entitlement. He suggested San Luis Obispo County and cities in the County should carefully examine projects Monterey proceeds on to develop further water, and attempt to work with them on a regional basis. Mr. Quevedo stated there will be a Salinas River Workshop sched- uled for January 25, 1991, and invited the City to participate in MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - DECEMBER 18, 1990 PAGE 5 the workshop to share information on a regional basis. He stated the Committee has extended an invitation to Mayor Sheetz to sit as an ex-officio member of their Committee to participate in decision making that affects the region. With regard to the Coastal Branch of the State Water Project, it is over -subscribed; and, because of the drought, there may be cut -backs in the entitlements requested by the participating agencies. It is not a long-term solution. Councilmember Wuriu asked what specific problem caused the Com- mittee to be formed? Mr. Quevedo stated it began because prop- erty owners in the North County were concerned Monterey County was draining Nacimiento to a lower level than San Antonio; they wanted to attempt to achieve a balance between the two reser- voirs. The Committee has expanded to regional concerns from that beginning. Councilmember Luna asked with normal rainfall, how long will it take for Nacimiento to refill? Mr. Quevedo stated approximately five average years to fill to the level it was at before the drought began; and seven average years to fill to the level the reservoir must be below to provide for flood control measures. Mayor Sheetz asked if Morro Bay could find some way to obtain delivery of water from Nacimiento, would we run into Committee problems as far as water rights are concerned? Mr. Quevedo said the participation by Morro Bay in San Luis Obispo County's enti- tlement of Nacimiento water is to take its share of the 17,500 acre feet+; the County entitlement is available to be shared by whoever is willing to invest the money to bring the water to them. He pointed out if the County is able to increase the allo- cation to 50,000 acre feet, there is that much more water to go around. He noted there are limitations of the lake, and San Luis County should negotiate with Monterey County. Connie Flowers requested Council concur with the Committee's position and direct staff to prepare a resolution from the Coun- cil to the San Luis Obispo County Board of Supervisors expressing this concern and in support of the Committee's efforts. She noted the Cities of San Luis Obispo and Paso Robles have pre- sented similar resolutions to the Board of Supervisors. John Lemons asked what the position of the Committee would be if the Nacimiento project as originally envisioned in 1974 to be constructed and 17,500 acre feet per year were to be withdrawn from Lake Nacimiento? Will they be opposed or in favor of that? Mr. Quevedo stated the Committee would not oppose it but would try to create some linkage between the realization of the project and expanding or protecting the availability of additional water resources for San Luis Obispo County in the Santa Lucia Water- shed. They would be concerned this entitlement did not happen at MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - DECEMBER 18, 1990 PAGE 6 the same time Monterey County takes entitlement to all other available water that could be stored in the watershed. Mr. Lemons stated it sounds like their primary objective is to keep the Lake at a level acceptable to the people who are members of the Committee. He commented on a fund-raising brochure he received from this Committee over the week -end detailing their financial difficulties in the debt amount of $80,000. There was also a statement they have formed a political alliance with the City of Morro Bay. Mr. Lemons said he was not aware the Council has formed such an alliance in the last few years. Clint Milne, County Engineer, stated he read comments by Susan M. Trager, the law office represented by Mr. Quevedo, regarding the State Water Project Draft EIR. One of her comments had to do with the suggestion of Nacimiento as an alternative to State Water Project water. Ms. Trager objected to that consideration because the Lake is being reserved for recreational purposes. Mr. Quevedo explained the legal uses of the Lake set forth in their license; they include agricultural, flood control facility, and for recreational purposes in San Luis Obispo County. Mr. Milne said the first conditions of the license is that Monterey County must comply with the Agreement with San Luis Obispo County. The Agreement with San Luis Obispo County identi- fies the entire County as the area of beneficial use, and Monterey's license was amended to show that. He disagreed recre- ation is paramount; it is lowest in priorities in his opinion. Mayor Sheetz asked what is the composition of the Committee? Mr. Quevedo stated the Board of Directors is 10 residents of the Northern portion of San Luis Obispo County and several ex-officio members: Steve Martin, Paso Robles Councilmember; Penny Rappa, San Luis Obispo City Councilmember. He stated the Committee is not restricted to people who own property in Northern San Luis Obispo County. Mayor Sheetz asked him to also explain the law offices of Susan M. Trager. Mr. Quevedo stated the law firm is based in Irvine and they are general counsel to the Nacimiento Regional Water Management Advisory Committee; he is an associate in that office. Mayor Sheetz requested Mr. Napper agendize a Resolution support- ing the Committee's cause for the first meeting in January. Mayor Sheetz closed the hearing to the public. MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - DECEMBER 18, 1990 PAGE 7 D-3 PRESENTATION BY SOURCE ONE SERVICES (CALGON) REGARDING WATER CONSERVATION PROGRAM FOR LARGE -VOLUME COMMERCIAL LAUNDRY WATER USERS Larry Excel, Account Manager for Merck & Co., gave his company's various credits and discussed the large volumes of water to be saved by recycling laundry water. He said their recycling system has been installed in hotels, motels, hospitals, and nursing homes; and, saves considerable money in energy, water and sewage costs. He is currently working with one facility in Morro Bay which uses in excess of 10 million gallons of water per year; through his system, they are able to save at minimum 2' million gallons of water per year which in turn will save the facility $1,179 a month forever (energy, water, chemical savings). Mr. Excel discussed municipalities which mandate facilities to re -use their wash water thus conserving an enormous amount of water for their agencies. He believes the State will mandate re- use of this water soon. He said Bob Buss is the area distributor for this product and will be happy to work with the City to pro- mote their product. Mayor Sheetz asked if the program is effective for any facility with large volume water use? Mr. Excel said their system cannot be used in a home washing machine, but can be used in any kind of commercial laundry machine. He believes h billion gallons of water can be saved in facilities in Morro Bay. Councilmember Wuriu asked what Council has to do with Mr. Excel selling his product to large volume water users? Mayor Sheetz stated she invited him to make a presentation so large volume users could be aware of alternatives to using so much water; the presentation is for information only. Mr. Farrel requested a representative contact the Planning Department so they may obtain information on the system. Councilmember Mullen commented given the rising costs of water and energy, it would seem businesses would install the equipment on their own without Council having to adopt a mandating ordi- nance. Mr. Excel stated not everyone is interested in saving water due to conglomerate ownership; mandatory implementation perks them up. Councilmember Luna commented he would like to see a summary of the business responses in town to implement their system after Mr. Excel's contact. Mayor Sheetz opened the hearing to the public for comments. Ed Biaggini, President of the Motel, Hotel and Restaurant Associ- ation, stated he has met with representatives of this company and viewed a video they have to show on the recycling system. The hotels and motels he mentions which use the system have between MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - DECEMBER 18, 1990 PAGE 8 500 and 600 rooms; the total number of rooms in Morro Bay is 1,000, and approximately k of these send their laundry to a com- mercial laundry service. He stated the motel industry is doing their share to conserve water and do not need a mandated ordi- nance requiring them to re -use washing machine water. If this system is feasible and cost-effective, they will use it. He does not believe there is 5 billion gallons of water to be saved by this program. Mayor Sheetz asked how many rooms must a motel have before it is economical to do their own laundry? Mr. Biaggini responded 30 or more rooms makes it cost effective to do on -site. Charles Palmer said water conservation in commercial enterprise as well as residential is what he has been advocating. He does not believe anyone should be mandated to do anything. He reiter- ated his comments about instituting a pricing structure to encourage conservation. Mayor Sheetz closed the hearing to the public. No action was taken on this item. D-4 OPEN DISCUSSION ON PRESENT AND PROSPECTIVE CITY WATER POLICIES AND PROJECTS Mayor Sheetz stated Sandi Ford is the Code Enforcement Officer for the City; she also functions half-time to enforce the City's water conservation measures. Her full-time contract expires December 31st, and Mayor Sheetz would like to see it renewed. She believes the position is necessary and effective. She requested it be placed on the Council's next agenda for approval. Mayor Sheetz stated most Morro Bay citizens are very conscien- tious about adhering to the conservation restriction; however, there are some chronic abuses. She requested an item be placed on the agenda to consider enacting stiff fines for people who habitually violate the restrictions. Mr. Mapper stated the Code Enforcement officer already has citation authority; perhaps Coun- cil should discuss if they wish to have her take a more aggres- sive enforcement attitude with chronic abusers? Councilmember Luna asked why the Ordinance is not being enforced currently? Mr. Mapper stated pursuant to Council direction, staff has been using a series of encouragement methods to obtain voluntary conservation; citation has been a last resort. If Council wants enforcement stepped up, that can be done. Council agreed to discuss this at their next meeting. Councilmember Baker stated it appears the City's desal project and drilling wells is the best short-term solution. A medium - term solution could be a joint desal project with the City of San MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - DECEMBER 18, 1990 PAGE 9 Luis Obispo; and, in the long-term, the State Water Project. It is more economical and there is no capital outlay. Mayor Sheetz stated Council authorized funding for drilling test wells only at their last meeting. Mr. Nichols concurred and stated those funds will pay for the test wells and sampling the water quality. Funding for the implementation of the project has not been authorized. Mayor Sheetz asked how our project fits in with the City of San Luis Obispo's proposal. Mr. Nichols stated the letter from San Luis Obispo does not give any details on how they wish Morro Bay to "participate" in the project. The City needs to talk to them about a number of details. Councilmember Wuriu asked if the discussions with the City of San Luis Obispo could be held in conjunction with the City's requests regarding the Coastal Streams Project. It appears Morro Bay may now be dealing from a position of strength, and could use the leverage to get San Luis Obispo to negotiate an operating agree- ment for the Coastal Streams project. Councilmember Mullen suggested Morro Bay hold a joint meeting with the San Luis Obispo City Council to discuss these items. Councilmember Luna suggested the Whale Rock Commission also be included in the meeting, and the meeting needs to be held soon. Mayor Sheetz directed a letter be sent to the City of San Luis Obispo requesting a joint meeting with their City Council; she said the meeting will be held in Morro Bay. She also requested staff return to Council with a report on what the City of San Luis Obispo expects from Morro Bay and what Morro Bay will get out of a joint desal project. Councilmember Mullen requested the Coastal Streams and San Bernardo Dam projects also be scheduled for discussion with the City of San Luis Obispo. John Lemons cautioned the Council using the desal project for anything more than emergencies. He said the staff report makes it clear the State Water Project is the most dependable, safest solution for long term water. Mr. Lemons stated Council had an opportunity to adopt a large -volume water user ordinance requir- ing state-of-the-art retrofitting equipment, and they did not. They should not take the motel industry to task regarding the Calgon proposal to recycle water. He said one person's comment the people should live within their resources is not realistic; most things people use and eat come from somewhere else. He sug- gested Council obtain a copy of the San Luis Obispo Chamber of Commerce brochure entitled, "Water for Tomorrow"; a number of the items in the report apply to Morro Bay. Councilmember Luna requested a copy of the report. MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - DECEMBER 18, 1990 PAGE 10 Bruce Risley agreed with Council's indication they intend to re- establish communication and cooperation with the City of San Luis Obispo. He encouraged Council to take charge of the situation and not turn it over to staff and let the bureaucratic process work it out. Political leaders must take charge; he urged a meeting with the Governor be obtained. Mary Phillips requested Council secure proof ocean desalination is safe for human consumption before they spend money on installing a plant. She believes the process will put the fish- ermen out of business and destroy the estuary. Ed Ewing, 230 Pacific and commercial fisherman, does not believe desalination will hurt the fishermen in a short-term project. He suggested if Council does not secure a long-term solution to the water situation, they consider a rebate on property taxes for those people who are unable to obtain services. Someone may sue the City for not being able to build on their property. Charles Palmer reiterated earlier comments regarding encouraging conservation through pricing of water. John Alexander, Cayucos, believes the stated costs of reclamation may be over -blown. The City's current plant could be brought up to tertiary treatment for approximately $1 million. Reclaimed water could be used for the farming community, and cost only $100-$125 per acre foot. David Morrow commented on the City's water pricing structure and said the people who conserve are not being rewarded, and those who waste are not being penalized. He does not belive the system Calgon is selling should be mandated. He favored recharge of the water basin using reclaimed sewage treatment water. Mayor Sheetz closed the hearing to the public. Mayor Sheetz stated Council concurs a joint meeting with the City of San Luis Obispo is desirable. Council also agreed the water pricing structure should be examined for possible inequities. Councilmember Mullen stated she would like to elimi- nate the flat rate. Staff was directed to return this matter in February 1991 for Council review. Councilmember Baker suggested staff meet with John Alexander to explore his theory regarding wastewater reclamation. Mayor Sheetz included Millard Souza in the discussions. Councilmember Luna suggested the feasibility of pursuing less water in Toro Creek; Mr. Nichols reviewed the rationale for dis- continuing pursuit of this water due to watershed and Chevron opposition. MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - DECEMBER 18, 1990 PAGE 11 Councilmember Luna asked why the City has not drilled fresh water wells? Mr. Nichols stated the City did that in 1984 with the result no new water sources are available. Drilling up -stream of farmers brings protests from them. Councilmember Luna asked what steps are taken to ensure motels are saving water and posting water conservation stickers? Mr. Biaggini stated they have been distributing information and post- ing signs for four years. Mr. Napper stated there are no funds for that level of City enforcement. Councilmember Baker com- mented the motel use is not a big source of water loss. Mr. Farrel stated perhaps cost alone should not be the factor in choosing a direction for water acquisition. With the drought continuing, the main focus may be the project that will put water on-line the quickest. Councilmember Mullen does not believe State Water will be avail- able for ten years; it will be held up in court. If State Water is not available, the City has to be prepared to go in another direction. She is not in favor of using desal for a long period of time due to the enormous energy required to run the facility. She suggested focus be on the Coastal Streams and San Bernardo Dam projects. She supports water reclamation. It may be the City will have to go to a vote of the people before subscribing to State Water. Mayor Sheetz stated the City needs option but was never considered believes Council should keep the investigate reclamation further. Council should take whatever steps for State Water. Councilmember water options open. something now; desal is a good a permanent solution. She door open on State Water, and Councilmember Baker stated the necessary to sign the contract Wuriu urged Council keep all Mr. Napper pointed out Council will have to consider at some point where the funds will come from to implement all of these projects; the City's Water Fund has been depleted to produce emergency water. Councilmember Luna asked questions concerning rental vs. purchas- ing of the desal units. Mr. Nichols stated staff is looking into that as they prepare recommendations for proceeding on the pro- ject. The issue is being evaluated and will be reported on prior to Council authorization to implement the emergency water produc- tion measures. E. CLOSED SESSION None 0 MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - DECEMBER 18, 1990 PAGE 12 F. ADJOURNMENT MOTION: Councilmember Wuriu moved the meeting be adjourned. The motion was seconded by Councilmember Mullen and unanimously carried. (5-0) The meeting adjourned at 9:44 p.m. Recorded by: ARDITH DAVIS City Clerk CITY OF MORRO BAY DEPARTMENT OF PUBLIC WORKS MORRO BAY-CAYUCOS SANITARY DISTRICT JOINT POWERS COMMITTEE MINUTES December 13, 1990 meeting of the City of Morro Bay-Cayucos Sanitary District Joint Powers Committee held at the Morro Bay City Hall Conference Room, 595 Harbor Street, Morro Bay, California. ROLL CALL AND ATTENDANCE Morro Bay City Council: Rose Marie Sheetz, Mayor Ben Luna, Vice Mayor John Baker Susan Mullen Tom Wuriu Cayucos Sanitary District Board of Directors: Terry Schubert, Vice President Henry Piaskowski Tom Craig Staff: G. H. Nichols, Director of Public Works Louise Burt, Finance Director Darrel Richards, Wastewater Treatment Plant Superintendent Barry Daffern, Cayucos Sanitary District Superintendent PUBLIC COMMENT PERIOD - No public comments were received. A. CONSENT CALENDAR AND INFORMATIONAL REPORTS Baker requested Item A-2 be pulled for discussion. The remainder of the Consent Calendar was approved by unanimous vote. Item A-2, Flow Comparison Summaries and Unaudited Financial Statements -1st Quarter FY 1990-91. Baker requested an explanation regarding the confined spaces problem which has prevented reading the flowmeters at Cayucos Pump Station No. 5. Schubert explained the District's past problems with CAL -OSHA regarding safety procedures for entry of confined spaces. He said these problems have now been worked out, and proper equipment has been purchased and training provided to employees. He said Morro Bay and Cayucos Staff have met to discuss a resolution of the lack of meter readings. Morro Bay-Cayucos Sanitary District Joint Powers Committee December 13, 1990-Minutes Page 2 Nichols explained the location of Pump Station No. 5, the odor problems resulting from the construction of the new Cayucos collection line, and the ferrous chloride project to be completed in January 1991 which will hopefully resolve this issue. Sheetz said she is still receiving complaints about odors in north Morro Bay. Mullen said she received many complaints during her campaign for City Council. Luna said he lives in north Morro Bay and has noticed the odors are not so bad recently. Schubert said he will direct an increase of the dosage of hydrogen peroxide at Pump Station No. 5 to control the odors. A motion to approve Item A-2 as submitted was adopted by unanimous vote. B. NEW BUSINESS B1 - Overview of Agreement for Operation of Jointly -Owned Wastewater Treatment Plant. Nichols presented an overview of the Joint Powers Agreement between the Cayucos Sanitary District and the City of Morro Bay for the ownership and operation of the Wastewater Treatment Plant. The land on which the plant is located and other property near the plant are owned jointly 60% City/40% District. The actual treatment facilities are jointly owned 65%/35%, with each agency owning a proportionate share of the capacity of the treatment plant. The plant is operated and maintained under management of the City of Morro Bay and operational costs are shared between the City and the District based on flow proportion. This has been running very nearly 75% City/25% District for many years. The City is using 68% of its capacity; the District is using 44% of its capacity. The jointly -owned sewer collection main in north Main Street is owned 60% City/ 40% District. The Sanitary District is presently running about half its flow through the jointly -owned line and half through the newly constructed separate line. Mullen asked if the ongoing discharge permit renewal could result in a requirement to implement full secondary treatment. Nichols said there is that possibility. He gave background regarding the 301(h) waiver of secondary treatment requirements and explained the State Water Resources Control Board would only grant -fund those costs to provide treatment in accordance with the California Ocean Plan, which at that time did not require full secondary treatment. He said we have reapplied for continuation of this discharge standard because the environmental documentation that has been done over the last five years has indicated no environmental degradation as a result of the discharge. It would cost up to $3 million to provide full secondary treatment, or it is more economic for the JPA Committee's budget to continue under the present regime. Mullen noted paragraph G(page 3) of the JPA requires each agency to set aside funds equal to the annual depreciation of the cost of the treatment plant and asked if this is being done. Burt said this is not being done as a JPA issue. She said the City of Morro Bay is Morro Bay-Cayucos Sanitary District Joint Powers Committee December 13, 1990-Minutes Page 3 setting aside funds in its own sewer reserve accounts to pay for its portion of future plant upgrades and collection system improvements. She said SWRCB has determined the City and District's financial program comply with the legal requirements for managing grant -funded facilities. Wuriu noted the recent discussion in the press regarding potential use of the jointly owned outfall line for a City of San Luis Obispo or City of Morro Bay desalination project brine discharge. Nichols explained these discussions have been conceptual in nature. Any use of the outfall would require approval by the Joint Powers Committee who would establish any terms and conditions that would be required before said use. He said the outfall line has about a 6.7 mgd hydraulic capacity. The present peak hour demand at the treatment plant is approximately 3.5 mgd. Therefore there is about 3 mgd excess capacity in the outfall line which could be used for this purpose. Luna predicted there will be upgrades at the Treatment Plant required in the future and asked if the Committee could begin to increase its sewer rates now to build up a cost reserve over the years to pay for them as they arise. Burt said the City of Morro Bay is working on an overview of its entire infrastructure capital improvement needs. This report will be presented to the City Council in upcoming months. She said the City's existing infrastructure master plans indicate a need to provide $8 million per year in capital improvements to meet the conditions of those existing plans. The existing City budget is approximately $9 million. Therefore it would require a funding committment about equal to the City's existing budget to fund these infrastructure capital improvement programs. Luna asked if discussion of this topic could be placed on the next agenda of the JPC. Mayor Sheetz suggest that decision be postponed until additional information is gathered. C. CLOSED SESSION Motion to move to Closed Session Section 54956.9(c)-JPA Initiated unanimous vote at 7:35 p.m. for discussion of Government Code Litigation. Motion approved by A motion to return to open session was approved by unanimous vote at 8:00 p.m. A motion to adjourn was approved by unanimous vote. Respectf lly su mitted, Ni hols Director of Public Works GHN/lc:GHN1:JOINTMIN Lae-e4w�m l o, l q 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 - DECEMBER 10, 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 at this time. When recognized by the Mayor, please come forward to'tBie podium and state your name and address for the record. Comments should no ally be limited to three minutes. DECLARATION OF FIRE AGENDA ITEMS (CITY COUNCIL) A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the fol- low.ng actions are approved without discussion. A-1 CITY COUNCIL MINUTES OF THE SPECIAL MEETING OF DECEMBER 4, 1990 A-2 EXPENDITURE REPORT - NOVEMBER 1990 A-3 STATEMENT OF INVESTMENTS - NOVEMBER 1990 A-4 CANCELLATION OF DECEMBER 24, 1990 REGULAR CITY COUNCIL MEETING A-5 SET DATE (JANUARY 3, 1991) FOR INTERVIEW OF APPLICANTS TO VARIOUS ADVISORY BOARD VACANCIES A-6 SET DATE (DECEMBER 13, 1990) FOR SEMI-ANNUAL JOINT POWERS AUTHORITY MEETING WITH CAYUCOS SANITARY DISTRICT A-7 RELEASE OF 1990 ANNUAL WATER REPORT A-8 REPORT ON STATUS OF CITY'S WATER SUPPLY CONDITION A-9 RESOLUTION NO. 140-90 REVISING FIRE LANE AND COMMERCIAL LOADING ZONE DESIGNATIONS IN AREA SOUTH OF NORTH CITY T-PIER PREVIOUSLY ESTABLISHED BY RESOLUTION NO. 95-90 A-10 SET DATE (DECEMBER 18, 1990) FOR SPECIAL CITY COUNCIL MEETING TO EXAMINE PRIORITIES AND ALTERNATIVES FOR DEVELOPMENT OF SUPPLEMENTAL WATER PROJECTS A-11 SET HEARING DATE (14 JANUARY 1991) FOR APPEAL OF PLANNING COMMISSION APPROVAL OF TIDELANDS PARK PHASE II (CUP 35-89/CDP 62-89; HAGENBACK, DUNLAP, OGLE, LEONHARDT, CARATAN, APPELLANTS) A-12 PROCLAMATION DECLARING NOVEMBER 20, 1990 THROUGH JANUARY 1, 1991 AS MADD'S PROJECT RED RIBBON, "TIE ONE ON FOR SAFETY" A-13 PROCLAMATION DECLARING MORRO BAY A "RECESSION FREE ZONE" B. UNFINISHED BUSINESS NONE C. NEW BUSINESS C-1 CONSIDERATION OF CITY COUNCIL DISCRETIONARY APPOINTMENTS TO VARIOUS INTER -AGENCY BOARDS AND COMMITTEES C-2 REQUEST TO EXAMINE BY-LAWS, TERMS OF OFFICE, AND COMPOSITION OF RECREATION AND PARKS COMMISSION, STREET ADVISORY COMMITTEE, COMMUNITY PROMOTIONS COMMITTEE, AND FIRE FUNDING STEERING COMMITTEE D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 ORDINANCE NO 387 REPEALING EXISTING PROVISIONS OF MUNICIPAL CODE RELATING TO ANIMALS AND ANIMAL CONTROL, AND REPLACING THE REPEALED SECTIONS WITH PROVISIONS CONSISTENT WITH THE COUNTY CODE (INTRODUCTION/FIRST READING) D-2 PUBLIC HEARING ON FEES FOR CITY RECREATION AND SPORTS PROGRAMS UTILIZ- ING SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT FACILITIES, AND PROGRESS REPORT ON DEVELOPMENT OF JOINT POWERS AGREEMENT WITH SCHOOL DISTRICT D-3 CONCEPT REPORT ON PLACEMENT OF TEMPORARY PORTABLE TOILETS ALONG THE EMBARCADERO/WATERFRONT AREA E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.9(A), ROBERT AND MOLLY JOHNSON V. CITY OF MORRO BAY, ET AL., SUPERIOR COURT CASE NO. 68991 E-2 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY NEGOTIATIONS ♦ LEASE SITE 96/96W, DBA WHALE'S TAIL RESTAURANT, 945 EMBARCADERO ♦ LEASE SITE 113W, DBA VIRG'S DOCK AND BAIT TANKS, 1215 EMBARCADERO 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 - DECEMBER 10, 1990 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. PRESENT: Rose Marie Sheetz John Baker Ben Luna Susan Mullen Tom Wuriu ABSENT: None STAFF: Gary Napper Judy Skousen Rick Algert Ardith Davis Dave Howell Nick Nichols Steve Wolter Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Harbor Director City Clerk Police Chief Public Works Dir. Rec. & Parks Dir. Mayor Sheetz gave the invocation, and Councilmember Baker led the Pledge of Allegiance. Mayor Sheetz read the Proclamation which promotes safer holidays by driving sober. A representative from Mothers Against Drunk Driving accepted the Proclamation and distributed red ribbons to tie on vehicles as a reminder of the campaign and cause. Mayor Sheetz read the Proclamation encouraging citizens to accen- tuate the positive aspects of business and work to eliminate a recession. Bob Finley of the Merchants Association accepted the Proclamation and stated local people are behind this action and are promoting Morro Bay with enthusiasm. WYMI 41iG� 1. Colby Crotzer, 475 Arbutus and a teacher at Los Osos Junior High School, asked if is possible to get the "Just Say No to Drugs" red ribbons that were available in October? His stu- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 10, 1990 PAGE 2 dents are interested in wearing them year-round. Chief Howell stated he will give him some ribbons. 2. Ed McCracken said City Hall is too small and he is aware of City plans to double the size. However, he believes time is needed to plan and design a City Hall the community can be proud of. He suggested temporary facilities be rented or pur- chased in the interim to give staff more room to conduct business. • •, • y�P3W_ ;Iej2PkIt7:10YYp?vF� 1. Councilmember Mullen requested an item be scheduled to discuss changing the Council meeting night to Tuesday. Coun- cilmember Wuriu asked changing the starting time back to 7PM also be part of the discussion. Mr. Napper recommended Council approve the minutes as submitted. A-2 EXPENDITURE REPORT - NOVEMBER 1990 Mr. Napper recommended Council approve the Expenditure Report. A-3 STATEMENT OF INVESTMENTS - NOVEMBER 1990 Mr. Napper recommended Council receive the Statement for file. A-4 CANCELLATION OF DECEMBER 24, 1990 REGULAR CITY COUNCIL MEETING Mr. Napper recommended Council cancel the December 24th meeting. A-5 SET DATE (JANUARY 3. 1991) FOR INTERVIEW OF APPLICAN`j'S TO VARIOUS ADVISORY BOARD VACANCIES Mr. Napper recommended Council set January 3rd for interviewing advisory board applicants. !35 Y �iT�C�� w.i�)lE �IZ�I��l•3'��i �i3i ��;1.i+lad �� � Y 1)!=Z• ej 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 10, 1990 PAGE 3 A-7 RELEASE OF 1990 ANNUAL WATER REPORT Mr. Napper recommended Council receive the report for file, and set January 14th for public hearing on the Annual Water Report. A-8 REPORT ON STATUS OF CITY'S WATER SUPPLY CONDITION Mr. Napper recommended Council receive the report for file. A-9 RESOLUTION NO, 149-90 REVISING FIRE LANE AND COMMERCIAL LOADING ZONE DESIGNATIONS IN AREA SOUTH OF NORTH CITY T-PIER PREVIOUSLY ESTABLISHED BY RESOLUTION NO. 95-90 Mr. Napper recommended Council adopt Resolution No. 140-90. A-10 SET DATE (DECEMBER 18, 1990) FOR SPECIAL CITY COUNCIL MEET- ING TO EXAMINE PRIORITIES AND ALTERNATIVES FOR DEVELOPMENT OF SUPPLEMENTAL WATER PROJECTS Mr. Napper recommended Council set December 18th at 6PM in the Veterans Hall for a special meeting to review water project pri- orities and policies. A-11 SET HEARING DATE FOR APPEAL OF PLANNING COMMISSION APPROVAL OF TIDELANDS PARK PHASE II (CUP 35-89/CDP 62-89: HAGENBACK, DUNLAP, OGLE, LEONHARDT, CARATAN, APPELLANTS) Mr. Napper recommended Council set January 14th as the hearing date for the appeal. A-12 PROCLA14ATIQN DECLARING NOVEMBER 20, 1990 THROUGH JANUARY 1. 1991 AS MADD'S PROJECT RED RIBBON. "TIE ONE ON FOR SAFETY" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-13 PROCLAMATION DECLARING MORRO BAY A "RECESSION FREE ZONE" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. Councilmember Baker requested Item A-8 be pulled for separate discussion, and Mayor Sheetz requested Item A-9 be pulled. MOTION: Councilmember Wuriu moved for approval of the Consent Calendar with the exception of Items A-8 and A-9. The motion was seconded by Councilmember Mullen and unani- mously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 10, 1990 PAGE 4 A-8 REPORT ON STATUS OF CITY'S WATER —SUPPLY CONDITION Councilmember Baker asked if the fact the south end of town is using 6% less water than last year, and the north end of town is using 9% more water has anything to do with the reverse osmosis unit in North Morro Bay and the disposition of brine from the system. Mr. Nichols stated it is possible; also, more develop- ment of new water uses in the north end of town occurring. A-9 RESOLUTION NO. 149-90 REVISING FIRE LANE AND COMMERCIAL LOADING ZONE DESIGNATIONS IN AREA SOUTH OF NORTH CITY T-PIER PREVIOUSLY ESTABLISHED BY RESOLUTION NO. 95-90 Mr. Nichols reviewed staff's attempt to work with the businesses in the area to arrive at an equitable solution for provision of an emergency lane in this alley. He understood the Police and Fire Departments met with all concerned and the recommendation before Council is the one agreed upon. Savannah Williams, Crill's Salt Water Taffy, stated she was not notified of the proposal, and believes the plan interferes with her access to her business. She stated while the proprietor of the Fish Shanty is concerned about delivery trucks to the fish processing business interrupting the view of his patrons, the fish processing business has been there longer than the restau- rant has; the restaurant was previously an abalone processing plant. Chief Howell stated he was with Sergeant Salyer when he spoke to Ms. Williams about the situation. The owners of the Fish Shanty Restaurant and Cordero/Winston Fish Processing are agreeable to the proposal, and he believes it is in everyone's best interests. Councilmember Wuriu suggested the item be postponed until Council looks at the situation; Council agreed. MOTION: Councilmember Wuriu moved for the approval of Item A-8, and Item A-9 be returned to staff. The motion was sec- onded by Councilmember Baker and unanimously carried. (5-0) B. UNFINISHED BUSINESS NONE C. NEW BUSINESS C-1 CONSIDERATION OF CITY COUNCIL DISCRETIONARY APPOINTMENTS TO VARIOUS INTER -AGENCY BOARDS AND COMMITTEES Mr. Napper stated the City participates in several inter -govern- mental boards considering County -wide issues. With the recent MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 10, 1990 PAGE 5 election, it is appropriate for Council to consider these commit- tees and appointments thereto. Council made the following appointments: CITY TRANSIT AD -HOC COMMITTEE: Sheetz, Chairperson COUNCIL SUBCOMMITTEE ON EMPLOYEE GRIEVANCES: Baker, Luna CTAC: Bancroft "B" Rohan COUNTY SOLID WASTE TASK FORCE: Luna, delegate; Upton, alternate COUNTY WATER ADVISORY BOARD: Wuriu, delegate; Nichols, alternate SLO REGIONAL TRANSIT AUTHORITY: Sheetz, delegate; Upton, alternate SLO AREA COORDINATING COUNCIL: Sheetz, delegate; Wuriu, alternate TTAC: Upton TRI-COUNTIES SOCIOECONOMIC ADVISORY COMMITTEE ON OCS: Eliminated CMC CITIZENS' ADVISORY COMMITTEE: George Whiting INTER -AGENCIES COMMUNICATION COMMITTEE WITH SCHOOL DISTRICT: Baker, Napper CITIES/COUNTY PARTICIPATION GROUP: Mullen, Napper MORRO BAY/SCHOOL DISTRICT JPA FEASIBILITY COMMITTEE: Baker, Wuriu, Napper, Wolter MOTION: Councilmember Mullen moved for approval of the appoint- ments as stated. The motion was seconded by Coun- cilmember Baker and unanimously carried. (5-0) Mayor Sheetz stated with election of the new Council, it is a good time to take a look at the make-up of the various Council - appointed committees. She stated with Measure G failing on the November election to obtain funding for paramedics, the Fire Funding Steering Committee can be disbanded so those members can be free to serve on other committees. MOTION: Councilmember Baker moved the Fire Funding Steering Committee be disbanded. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mayor Sheetz said there has been recent controversy over the cut- ting of trees. She suggested the Street Advisory Committee be reorganized to include a Tree Committee thereby including consid- eration of trees in their charge. Mayor Sheetz proposed the Street Advisory Committee become the Street and Tree Advisory Committee and be a permanent City committee as opposed to ad -hoc. The current committee should be disbanded so people with an interest in trees can have an opportunity to serve, as well as those currently on the committee. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 10, 1990 PAGE 6 Councilmember Wuriu asked if this proposal has been reviewed by the Street Advisory Committee? Mayor Sheetz stated it had not. MOTION: Councilmember Mullen moved the current Street Advisory Ad -Hoc Committee be disbanded; a permanent Street and Tree Advisory Committee with terms of office and by- laws be established; and it be expanded to seven mem- bers. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mayor Sheetz said the Youth and Senior representatives on the Recreation and Parks Commission were once appointed by the Mayor; she wishes to reinstate this practice. Also, the Commission would like their terms staggered so four members' terms do not expire at one time. Mr. Napper noted the changes will have to be made by ordinance since the Commission is established by ordinance. MOTION: Councilmember Wuriu moved this item return to staff for an ordinance amendment specifying the Mayor appoint the Youth and Senior representatives to the Recreation and Parks Commission, and the terms of the Commission be staggered so three members' terms expire one year and two the next. The motion was seconded by Councilmember Luna and unanimously carried. (5-0) Mayor Sheetz stated with regard to the Community Promotions Com- mittee, it is the only committee wherein the Council does not have discretionary authority to appoint; the members are selected by the various organizations they represent. She suggested the Community Promotions Committee be established as a permanent com- mittee with terms of office and members appointed by the City Council. There was discussion regarding this concept; it was noted the categories would be retained so there will be representation from the Chamber of Commerce, Merchants Association, Hotel and Restau- rant Association, Embarcadero businessperson, and tourist busi- ness; however, if no people apply from the specific categories, Council will be able to appoint from the public at large. Councilmember Mullen was in favor of the proposal; she believes Council should be appointing the members due to the fact the mem- bers make recommendations for allocation of funds. MOTION: Councilmember Mullen moved staff establish a permanent 5-member Community Promotions Committee with set terms of office, categories, and the general public be allowed to apply. The motion was seconded by Coun- cilmember Luna and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 10, 1990 PAGE 7 Mayor Sheetz noted the Chamber of Commerce Executive Director and the City Administrator will continue as staff liaisons, without voting powers, to the committee. Mr. Napper requested the current Street Advisory Committee be allowed to continue until such time as the new Committee is established; Council concurred. D. PUBLIC HEARINGS, REPORTS & APPEARANCES mto Chief Howell stated the ordinance is basically a housekeeping item to keep the City's animal control ordinance in conformance with the County's, since the County is the enforcing agency for animal control in Morro Bay. He noted a section in the Ordinance particular to Morro Bay regarding the prohibition against dogs in public parks; the County will not enforce the City provisions, but the local police do. The chapters on Bird Sanctuary and Animals, Poultry and Household Pets remain unchanged. Mayor Sheetz asked if the City is required to enforce the leash law on the beach? Chief Howell stated the City is only responsi- ble from Morro Rock to approximately where Highway 41 ends at the beach; the remaining property is State beach. Councilmember Wuriu objected to not allowing dogs in public parks; he commented on the number of places they are not allowed and stated if dogs are under the control of their owner with a leash, they should be allowed in public parks. There was consid- erable discussion regarding this item; staff noted this particu- lar provision has been in effect since 1982. Mayor Sheetz opened the hearing to the public for comments. Howard Gaines, 441 Orcas, relayed details of a barking dog inci- dent in his neighborhood which was reported eight months ago and still has not been resolved. Chief Howell stated the reason it has not been resolved is the individual in control of the animals was out of the area for a number of months and animal control was unable to serve her notice in order to provide her due process. This has now been accomplished and due process is taking its course. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Mullen moved Ordinance No. 387 be amended to replace page one with the substituted page to estab- lish San Luis Obispo County as the place for a public MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 10, 1990 PAGE 8 pound; and, add language to Section 7.08.310 making it illegal to have dogs in a public park unless the "dog is properly leashed". The motion was seconded by Coun- cilmember Wuriu and unanimously carried. (5-0) Mayor Sheetz opened the hearing to the public for comments on the amendment. Howard Gaines is against allowing dogs in the park. People are over -sympathetic about animals, and parks are not the place for them. Dennis Cutshaw said Council should retain a humane attitude toward animals as long as they are kept on a leash, and allow them to be in Dublic Darks. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Wuriu moved Ordinance No. 387 as amended be read by title and number only. The motion was sec- onded by Councilmember Baker and unanimously carried. (5-0) Mr. Napper read amended Ordinance No. 387 by title and number only. MOTION: Councilmember Baker moved for introduction and first reading of Ordinance No. 387. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Wolter stated this item is returned from October 22nd wherein Council re -instated City subsidized rates for the lap swim pro- gram. Since that time staff has met with school officials and lap swim participants in an attempt to establish an equitable program. The School District remains adamant in their charge of $14/hour for pool use; they state the operation of the pool actu- ally costs them $31/hour, therefore, they are charging less than half actual costs. Mr. Wolter reviewed his staff report detail- ing possible arrangements between the City and the School Dis- trict for exchange of facilities and services in order to keep costs down for both agencies. The City's policy is parks and recreation programs must be finan- cially self-sufficient; he explained the Department's cost recov- ery policy for establishing rates. Mr. Wolter gave a detailed report on cost comparisons between different recreation programs and informal sports programs. He estimated if current lap swim • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 10, 1990 PAGE 9 rates remain the same, the City will be subsidizing this program $52,000 annually. He noted current participants of the lap swim program are unwilling to pay much more than they now pay at $1.75 per use. Mr. Wolter recommended Council direct staff to reduce operating hours for the informal sports program, develop a pool volunteer program to eliminate one lifeguard on a trial basis, establish pre -registration minimums and retain the cost recovery policy effective January 1, 1991. It is estimated monthly registration with a minimum of 45 participants will be $37.00 if the staff recommendation is adopted. Councilmember Luna asked if staff has studied how many users pur- chase sports passes on a monthly basis? Mr. Wolter stated no; however, they do know over the past four months 74 different peo- ple per month used the program. This does not include the number of times those 74 different people used the pool. If only half of those pre -register, the program can be successful. Councilmember Mullen asked who built and paid for the pool? Mr. Wolter stated it was constructed in the early 1960's through a three-way agreement between the County, Morro Union Elementary School, and San Luis Obispo Junior/Senior High School; this was before Morro Bay was incorporated and before San Luis Coastal Unified School District existed. The City Attorney has advised the City has no legal interest in the pool, and the School Dis- trict has the right to charge rent. If the City ceases to oper- ate the lap swim program, participants can pressure the School District to offer it. Councilmember Luna asked what use the pool gets in the summer from visitors; and, what marketing does the City do to advertise the program? Is there any information additional marketing could offset costs? Mr. Wolter stated the City does not advertise the programs other than in their quarterly brochures, and what the newspaper will print for free as a public service announcement. Councilmember Wuriu asked what is the monthly rate for lap swim- mers currently? Mr. Wolter stated it depend how often they swim; if it is everyday, it costs them $27 per month. Mayor Sheetz opened the hearing to the public for comments. Norma Vaughn stated the lap swimmers can accept reduced hours. She noted problems with the pool heat and lifeguards not showing up as reasons why participation in the program has suffered. She believes with publicity, the swimmers will come back. Joe Tag stated he participates in the aqua -kinetics program, and complained the pool has not been warm enough, and is concerned there may only be one lifeguard. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 10, 1990 PAGE 10 Norma Wightman, 331 Luzon, stated there are a group of swimmers enthusiastic about working with the City to solve the problem. She was concerned reduced hours could result in four people try- ing to swim in one lane. She believes advertising will increase participation; and, swimmers are interested in volunteering to help. An informal survey of the swimmers indicate they are will- ing to pay $1.75 to $2 per use; $50 per month is too excessive. Carol Lutz stated as soon as the cost for participants goes beyond a certain figure, participants drop and the City will not accomplish its goals. She encouraged Council to consider reduc- ing or eliminating passing on the City's indirect costs; those costs should not be increasing in direct proportion to the School District's increase since no additional work is required on the part of the City. She suggested setting a flat fee rather than a percentage. She said a lot of swimmers are not available to volunteer at 5:30 a.m., but would be available for other types of volunteer work throughout the day. Mayor Sheetz returned the matter to Council. Mayor Sheetz asked Mr. Wolter to explain the 30% overhead charge. Mr. Wolter explained the calculations involved to determine this charge and said it covers indirect costs such as workers compen- sation insurance, unemployment insurance, pool' specialist super- vision time, paper, etc. Items not included in the charge are pro -rated insurance, administrative costs, telephone, postage. Councilmember Wuriu suggested once the fee is established it should be a fixed cost rather than percentage. Mr. Wolter stated if Council approves that concept for the lap swim program, it will have to extend that policy to other recreation programs as well, and less funds will be recovered for the General Fund. He noted Morro Bay fees are relatively low in comparison to other agencies in the County. The City of San Luis Obispo is reviewing their fee schedule and it may increase as much as 50%. Councilmember Mullen commented the City and the School District have attempted to compromise, but the lap swimmers may not be willing to pay increased fees. She has to wonder if the City needs to meet this need for recreational services. In most lap swim programs, people have to swim 4 to 7 per lane; the average is greater than 2 per lane. Councilmember Mullen is in favor of promoting pool participation. Mayor Sheetz suggested an an -hoc committee of the Friends of the Pool work towards a solution. Councilmember Wuriu said there already is a committee; he does not believe another one is neces- sary, and it will create a lot of extra work for staff. Staff is currently meeting with the Friends of the Pool on an informal basis. He suggested the Friends raise funds to retrofit the MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 10, 1990 PAGE 11 pool. If the City is able to obtain a grant to rehabilitate the pool, it may only cost pennies per day to operate it. Edwin Denton, Superintendent, San Luis Coastal Unified School District, wanted to make clear the School District is currently subsidizing this program. They estimate the pool costs $31 per hour to operate, and are only charging the City $14 per hour. He noted the budget reductions the school is faced with and the School District Board's difficult decision to subsidize the pool for this adult program or use the funds towards a library aid. The School District's responsibility is educating children, but they also realize their responsibility to the community. He stated the School District is at their limit with charging the City $14 per hour for pool operation. Pool* Councilmember Luna suggested the Friends of the -L�Hrery hold an annual swim-a-thon to raise funds to off -set the costs of indi- vidual users throughout the year. He is willing to work with them towards that goal, and participate in the event. Councilmember Mullen noted the pool is very old and needs major renovating; a fund-raising event could help in that area also. She would like to see the program continue, but questioned whether 40 people will pre -register. A broader -based group needs to be developed to use the facility; a $52,000 per year subsidy is a lot of money for use on other things. Mayor Sheetz asked Councilmember Luna to work with the group to see what they can come up with. Councilmember Mullen volunteered to work with them also. Mr. Wolter stated staff can work with the users to find some parameters within which to work, but it is not easy if the people are not willing to pay on a pre -registration basis. MOTION: Councilmember Baker moved Council direct staff to reduce operating hours for the informal sports program, develop a pool volunteer program to eliminate one (1) lifeguard during lap swim on a trial basis, establish pre -registration minimums and retain the City cost recovery policy effective January 1, 1991. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Council also encouraged increased publicity of the informal sports program. Council recessed from 8:15 p.m. to 8:27 p.m. *Corrected 1-14-91 minutes. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 10, 1990 PAGE 12 D-3 CONCEPT REPORT ON PLACEMENT OF TEMPORARY PORTABLE TOILETS ALONG THE EMBARCADERO/WATERFRONT AREA Mr. Wolter stated this item was first discussed by Council in October 1990. He gave information concerning costs to rent portable toilets for the Embarcadero during holiday weekends and special events, as well as purchasing portable units. He said there are 71 restroom facilities available on the Embarcadero; only six are open to the general public and five of those are owned and operated by the City and the sixth is subsidized by the City. He noted future plans for an additional restroom at Tide- lands Park and replacement of the restroom at the Morro Bay Boulevard street -end. Two projects approved but not constructed (Morro Bay Marina; Morro Bay Research Center) are required to have their restrooms available to the public. He estimates pro- viding portable toilets will cost a minimum of $4,000 a year per unit. They cost approximately $450 to purchase, but the City does not have the equipment to pump the units; that will cost $100-$120 per day per unit. The Harbor Advisory Board reviewed this item and recommended pub- lic restrooms be placed every two blocks with appropriate signage. Mr. Wolter discussed the aesthetics of placing portable toilets on the Embarcadero. He suggested a visitor signage program be instituted, and perhaps rent credit to leaseholders who allow their restroom to be used and signed for the public. A service level of a public restroom every 1,000-1,200 feet along the Embarcadero is recommended by staff to be implemented. Mayor Sheetz asked when the restroom at the Centennial Stairway will be complete? Mr. Wolter estimated by April 1991. Mayor Sheetz asked when an additional restroom might be built at Tide- lands Park? Mr. Wolter said at this time there is no funding for that project; grant funds are usually not available for restrooms. Mayor Sheetz opened the hearing to the public for comments. Ed Biaggini, 456 Embarcadero and President of the Harbor Festi- val, Inc., commented on how expensive portable toilets are to rent. He said portable units on the waterfront during holiday weekends would not be detrimental; however, permanent units would be a disgrace. He encouraged the City to build restrooms if they are needed. Councilmember Baker asked if those responsible for special events are required to rent portable toilets? Mr. Wolter stated yes, but only on the event site. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 10, 1990 PAGE 13 Bertha Tyler, Morro Bay Aquarium, stressed the need for portable toilets on the Embarcadero; children and older people require them. She generally sends people to the HMS Salt Building when they inquire for a restroom and often times there is a line to get in. She commented the portable units do not use water. Mayor Sheetz closed the hearing to the public. Councilmember Luna commented part of the problem is public restrooms are extremely dirty; part of the solution is to see our restrooms are maintained on weekends, especially during holiday weekends and special events. Mr. Wolter said he has two people maintaining restrooms twice a day on weekends. There is a staffing problem; another problem is not being able to hose down the restrooms due to the water shortage. The answer for cleaner restrooms is to increase staff, let them use water, and increase service levels. Mayor Sheetz said there are also problems downtown when people want to use the restroom; however, she would not like to see portable toilets downtown. Gary Gillman, Main Street Chevron, commented on the need to keep restrooms clean; his are checked and cleaned every hour on the hour. That's the kind of maintenance it takes to keep them clean, and it is very expensive to do. Mr. Wolter noted a restroom can be cleaned and then trashed five minutes later by the public. Councilmember Baker read the staff recommendation and asked the Tylers if they thought it would be acceptable? Ms. Tyler believed public toilets every three blocks would be reasonable. MOTION: Councilmember Baker moved Council establish a service level of one public restroom approximately every 1,000 to 1,200 feet on the Embarcadero, direct staff to develop a signage program proposal for public access restrooms, and negotiate with lease sites in areas where a service shortfall exists to provide public access restrooms on lease -sites or rent temporary toi- lets to fulfill the service level policy. The motion was seconded by Councilmember Mullen and unanimously carried. (5-0) E. CLOSED SESSION 57.1MZWKS 3: _ _ 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECE14BER 10, 1990 PAGE 14 ♦ LEASE SITE 113W, DBA VIRG'S DOCK AND BAIT TANKS, 1215 EMBARCADERO MOTION: Councilmember Wuriu moved the meeting adjourn to Closed Session. The motion was seconded by Baker and unani- mously carried. (5-0) Mayor Sheetz read the Closed Session announcement. The meeting adjourned to Closed Session at 9:01 p.m. and returned to regular session at 9:25 p.m. 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 9:25 p.m. Recorded by: �a4�6X!21� ARDITH DAVIS City Clerk e, �,� 4, / q 6? o NOT = C E O F S P E C= AL ME EZ'= NG NOTICE IS HEREBY GIVEN that a Special Meeting of the Morro Bay City Council is hereby called to be held on Tuesday, December 4, 1990 at 6:00 p.m. in the Veterans Memorial Hall, 209 Surf Street, Morro Bay, CA. Said Special Meeting shall be for the purpose of adopting the official canvass of the 06 November 1990 General Municipal Election and installing the Re - Elected Mayor and Newly -Elected City Councilmembers. DATED: November 29, 1990 KOSE IIARIE HEETZ, Mayor City of Morro Bay, California 46 City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. SPECIAL MEETING - DECEMBER 4, 1990 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION - PASTOR TOM GESHAY, CALVARY BAPTIST CHURCH PRESENTATION OF COLORS - BOY SCOUT TROOP NO. 222, SANTA LUCIA AREA COUNCIL 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 at this time. 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. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following action is approved without discussion. A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF NOVEMBER 26, 1990 A-2 RESOLUTION NO. 142-90 RECITING THE FACT OF THE GENERAL MUNICIPAL ELECTION HELD ON NOVEMBER 6, 1990, AND DECLARING THE RESULTS THEREOF C. NEW BUSINESS C-1 OATH OF OFFICE BY JUDGE BARRY HAMMER TO MAYOR ROSE MARIE SHEETZ AND COUNCILMEMBERS BEN LUNA AND SUSAN MULLEN, AND CITY CLERK'S PRESENTATION OF CERTIFICATES OF ELECTION C-2 PRESENTATION TO COUNCILMEMBERS JOHN LEMONS AND JEFF ODELL C-3 SELECTION OF VICE MAYOR (ONE YEAR TERM) F. ADJOURNMENT e PUBLIC IS INVITED TO SHARE IN THE REFRESHMENTS AFTER THE MEETING 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 SPECIAL MEETING - DECEMBER 4, 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 Rick Algert Louise Burt William Farrel Forrest Henderson Dave Howell Nick Nichols Steve Wolter Bernie Zerr City Administrator City Attorney City Clerk Harbor Director Finance Director Community Dev. Dir. Asst. City Admin. Police Chief Public Works Dir. Rec. & Parks Dir. Fire Chief Pastor Tom Geshay, Calvary Baptist Church, gave the invocation. The Colors were presented by Boy Scout Troop No. 222, Santa Lucia Area Council, and Horace Strong led the Pledge of Allegiance. PUBLIC COMMENT None A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF NOVEMBER 26. 1990 Mr. Napper recommended Council approve the minutes as submitted. A-2 RESOLUTION NO. 142-90 RECITING THE FACT OF THE GENERAL MUNICIPAL ELECTION HELD ON NOVEMBER 6, 1990, AND DECLARING THE RESULTS THEREOF Mr. Napper recommended Council adopt Resolution No. 142-90. MOTION: Councilmember Baker moved for approval of the Consent Calendar. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - DECEMBER 4, 1990 PAGE 2 C. NEW BUSINESS •3=F_1f� • .•IiT�•lai:3'irliliZdai3�',3:�'�;l•�ui��1:�1C•7yC:�_��3:�' • ,�_; l� _ • • ' -- • •. Superior Court Judge Barry Hammer administered the Oath of Office to re-elected Mayor Rose Marie Sheetz and newly elected Coun- cilmembers Ben Luna and Susan Mullen. Ms. Davis presented Cer- tificates of Election to all officers, and then Councilmembers Luna and Mullen took their seats at the Council dais. C-2 PRESENTATION TO COUNCILMEMBERS JOHN LEMONS AND JEFF ODE Mayor Sheetz presented plaques to out -going Councilmembers John Lemons and Jeff Odell thanking each for their years of public service. Councilmember Lemons commented his greatest pleasure in office was working with a professional staff; all are first class individuals. He noted a report in the newspaper concerning the new Council using a broom to "sweep City Hall", and said it would be the biggest mistake they could make. Councilmember Odell thanked everyone on the Council and City staff for treating him with respect and dignity. He wished more had been accomplished during his term in office, but acknowledged things work very slowly. He thanked previous Councilmembers and Mayor for their work, and his wife for his support. He hoped the public realizes how hard the Mayor and Councilmembers work. Mayor Sheetz presented the new Councilmembers with a City pin, and invited them to say a few words. Councilmember Mullen stated running for office has been the most incredible experience of her life. She said Council may have some difficult issues facing them, but Morro Bay has such wonder- ful people she hopes they can be used as a resource. She invited people to contact her with their concerns. Councilmember Luna said he looks forward to working with the Council and being part of the solution to problems and making Morro Bay a better community in which to live. He thanked a num- ber of people for their support and work, and said he is looking forward to working with and getting to know City staff. He believes they all will be able to work cooperatively together. Councilmember Baker congratulated the Mayor and new Councilmem- bers on their election to office. He is sure matters brought before the Council will be in the spirit of cooperation even though there were differences in the campaign. The results of the election show the community 50/50 on a number of issues; he plans to vote for what is best for the City of Morro Bay. Councilmember Wuriu stated the Council faces issues which have split the community down the middle. What is often overlooked and not reported in the newspapers are many other issues impor- MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - DECEMBER 4, 1990 PAGE 3 tant to the City. In 1990, the Council made no less than 169 motions, not including procedural motions; and, 80% of all actions were a 5-0 vote. He hopes a true spirit of cooperation will prevail on the new Council. Mayor Sheetz stated the people elected her the first woman mayor of Morro Bay two years ago, and have just made her the first mayor to ever be re-elected in Morro Bay along with giving her the tools with which to work. She said she is going to conduct "fireside" one-on-one meetings with the people at the Community Center to find out what is on the public's mind. Councilmembers can then request their items be agendized for Council considera- tion. She requested the General Plan be updated. The Council needs to re-establish faith in elected officials; she does not believe the gap is as great as some people believe. Mayor Sheetz believes 100% 5-0 votes would be a rubber stamp, and is not good decision -making. She said December 18th has been established as a special meeting to discuss water projects. This is a subject the City has talked about for years; now is the time for action. She thanked her husband for his support and announced the birth of her first grandchild, Joshua Michael. Mayor Sheetz promised the citizens 200% effort. C-3 SELECTION OF VICE MAYOR (ONE YEAR TERM) Councilmember Mullen nominated Councilmember Luna for Vice Mayor; Councilmember Wuriu nominated Councilmember Baker. Council selected Councilmember Luna as Vice Mayor for the next year on a 3-2 vote with Councilmembers Baker and Wuriu dissenting. Mayor Sheetz thanked Pastor Tom Geshay, Judge Barry Hammer, and Boy Scout Troop 222 for their participation in this evenings ceremony. She invited everyone to stay for refreshments after the meeting. F. ADJOURNMENT MOTION: Councilmember Wuriu moved the meeting be adjourned. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) The meeting adjourned at 6:32 p.m. Recorded by: ARDITH DAVIS City Clerk City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING - VETERANS MEMORIAL 209 SURF ST., ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE NOVEMBER 26, 1990 HALL - 6:00 P.M. MORRO BAY, CA PRESENTATION: DECEMBER 1990 AS "EOC SILVER ANNIVERSARY MONTH" 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 at this time. 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 (CITY COUNCIL) 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 NOVEMBER 13, 1990 A-2 EXPENDITURE REPORT - OCTOBER 1990 A-3 STATEMENT OF INVESTMENTS - OCTOBER 1990 A-4 REJECTION OF ALL BIDS ON PROJECT NO. PW 89-13, EMERGENCY GENERATOR FOR PUBLIC SAFETY REPEATER STATION, AND AUTHORIZATION TO REVISE PROJECT SPECIFICATIONS AND READVERTISE PROJECT A-5 REPORT ON STATUS OF CITY'S WATER SUPPLY CONDITION A-6 RESOLUTION NO. 149-90 ESTABLISHING A TWENTY MINUTE PARKING ZONE IN AREA SOUTH OF NORTH CITY T-PIER PREVIOUSLY ESTABLISHED AS COMMERCIAL LOADING ZONE BY RESOLUTION NO. 95-90 A-7 PROCLAMATION DECLARING DECEMBER 1990 AS "ECONOMIC OPPORTUNITY COMMIS- SION SILVER ANNIVERSARY MONTH" B. UNFINISHED BUSINESS B-1 AUTHORIZATION FOR CITY REPRESENTATIVES TO ATTEND THE DECEMBER 1990 COASTAL COMMISSION APPEAL HEARING TO DEFEND APPROVAL OF THE PACIFIC COAST SHOPPING CENTER PROJECT (CUP 03-88/CDP 05-88R; WILLIAMS BROTHERS MARKET, INC.) • C� C-1 REPORT AND FUNDING AUTHORIZATION FOR DRILLING OF TEST WELLS ON CITY - OWNED PROPERTY ADJACENT TO P.G.&E. POWER PLANT TO EVALUATE FEASIBILITY OF AN EMERGENCY DESALINATION WATER SUPPLY PLANT IN 1991 IF DROUGHT PERSISTS C-2 RESOLUTION NO. 141-90 APPROVING AMENDMENT TO LEASE FOR LEASE SITES 71- 72W TO INCREASE RENTS AND EXTEND LEASE UNTIL JUNE 30, 1991 (MORRO BAY MARINA, INC., MASTER LESSEE) C-3 COUNCILMEMBER REQUEST FOR WATERFRONT BUILDING MORATORIUM AND "BLUE RIBBON" STATUS TO EXISTING WATERFRONT SPECIFIC PLAN STUDY COMMITTEE C-4 REQUEST BY SAN LUIS OBISPO COUNTY VISITORS AND CONFERENCE BUREAU TO HOLD ANNUAL MEMBERSHIP DINNER MEETING IN MORRO BAY FIRE STATION NO. 1 ENGINE ROOM D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 RESOLUTION NO. 139-90 DECLARING CITY COUNCIL'S INTENTION TO FORM STORM DRAIN MAINTENANCE ASSESSMENT DISTRICT NO. 1 FOR RESIDENTIAL SUBDIVI- SION TRACT NO. 1231 (LOPERENA SUBDIVISION, IRONWOOD COURT) NONE COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 26, 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 City Administrator Judy Skousen City Attorney Rick Algert Harbor Director Ardith Davis City Clerk Nick Nichols Public Works Dir. Bernie Zerr Fire Chief Mayor Sheetz gave the invocation, and Councilmember Odell led the Pledge of Allegiance. PRESENTATION: DECEMBER 1990 AS "EOC SILVER ANNIVERSARY MONTH" Mayor Sheetz read the Proclamation declaring December 1990 as "EOC Silver Anniversary Month", presented it to Elizabeth "Biz" Steinberg of EOC, and thanked Ms. Steinberg for her thirteen years of service with EOC. Ms. Steinberg thanked the Council and City for its support over the years and commended the number of volunteers that keep EOC going. She invited everyone to Open House at the EOC Agency on December 14th from 3 to 6 p.m. YI4 1. Ed Biaggini, 1164 Market, stated he represents the Vis- itors and Conference Bureau and can answer questions regarding Item C-4, the VCB request to hold their annual dinner meeting at Fire Station No. 1. 2. Ann Freeman, 785 Cabrillo, requested Council continue Item C-2, Morro Bay Marina request for lease site term extension, to the next meeting and hold a public hearing on the matter. She said the discussion regarding the waterfront building moratorium on tonight's Agenda, and the City Attorney's review of Measure I necessitates this item be continued and considered at a public hearing. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 26, 1990 PAGE 2 3. Randall Cook, attorney for the Fish Shanty, requested Item A-6 be pulled; he understood it was going to be taken off the agenda this evening. None A. CONSENT CALENDAR •3i1Y`Z�i+f4iI 1ERS"s Imo_ : _ ; : r • • Mr. Napper recommended Council approve the minutes as submitted. A-2 EXPENDITURE REPORT - OCTOBER 1990 Mr. Napper recommended Council approve the Report. A-3 STATEMENT OF INVESTMENTS - OCTOBER 1990 Mr. Napper recommended Council approve the Statement as submitted. A-4 REJECTION OF ALL BIDS ON PROJECT NO, PW 89-13, EMERGENCY GENERATOR FOR PUBLIC SAFETY REPEATER STATIONS, AND AUTHQ- RIZATION TO REVISE PROJECT SPECIFICATIONS AND READVERTISE PROJECT Mr. Napper recommended Council reject all bids, and instruct staff to re -advertise the project after amending equipment speci- fications to delete electrical surge protection components. A-5 REPORT ON STATUS OF CITY'S WATER SUPPLY CONDITION Mr. Napper recommended Council take no action; the item is for information only. A-6 RESOLUTION NO. 149-90 ESTABLISHING A TWENTY MINUTE PARKING ZONE IN AREA SOUTH OF NORTH CITY T-PIER PREVIOUSLY ESTAB- LISHED AS COMMERCIAL LOADING ZONE BY RESOLUTION NO, 95-90 Mr. Napper recommended Council this item be pulled from the Agenda since the proposed demarkation is not entirely acceptable to all parties. A-7 PROCLAMATION DECLARING DECEMBER 1990 AS "ECONOMIC OPPORTU- NITY COMMISSION SILVER ANNIVERSARY MONTH" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 26, 1990 PAGE 3 Mayor Sheetz pulled Item A-6 from the Agenda. MOTION: Councilmember Lemons moved for approval of the Consent Calendar with the exception of Item A-6. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) A-6 RESOLUTION NO, 149-90 ESTABLISHING A TWENTY MINUTE PARKING ZONE IN AREA SOUTH OF NORTH CITY T-PIER PREVIOUSLY ESTAB- LISHED AS COMMERCIAL LOADING ZONE BY RESOLUTION NO, 95-90 Mr. Napper stated staff learned today the proposed parking plan was not acceptable to one of the business people in the area. He requested Council continue the item to the next meeting. MOTION: Councilmember Odell moved Item A-6 be continued to the next meeting. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Napper announced the Council transition meeting will be held on Tuesday, December 4th at 6:00 PM in the Veterans Hall. B. UNFINISHED BUSINESS Mr. Napper stated in July 1990, Council discussed whether to send City representatives to the Coastal Commission appeal hearing on Council's approval of the Williams Brothers CUP. Council did not take action at that time preferring to wait until the hearing date was certain. The Coastal Commission has advised the City the appeal will be heard on December llth, 12th, or 13th. There is a possibility the hearing may be continued due to Williams Brothers announcement of scaling -down the project, and the asso- ciated impact of Measure H yet to be determined. Mr. Napper noted the City in the past has sent representatives to Coastal Commission hearings when it involved a Local Coastal Program amendment, but has not in recent years attended hearings on spe- cific project appeals. Councilmember Odell commented Council approved similar action when an initiative (Measure B) passed changing zoning. He thought the previous action was taken because the matter being discussed at the Coastal Commission level was the zoning initia- tive. In this case, the item is an appeal of Council's approval of a project, and he did not believe it would be proper to defend the project. He was uncertain whether the City should defend the approved CUP or defend the newly -passed Measure H initiative; he believed it presented a paradox for the City. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 26, 1990 PAGE 4 Councilmember Lemons said staff has been sent to the Coastal Com- mission on other occasions, citing the VRM zoning issue. He said statements may be made by the appellants regarding Council actions which will go unchallenged as truth if staff is not there to represent the City and the Council's action. Since the major- ity of the Council found in favor of the CUP, the City Attorney should be there to point out the Council's rationale in their approval. Councilmember Wuriu agreed the item is confusing because of the vesting map and the initiative recently passed by the people. It does, however, seem to be appropriate that Council has an obliga- tion to make as clear as possible what happened and what the positions were. This can best be done by the City Attorney. If the new Council wants to change their action, they can; but, he still believes Council should do what is appropriate based on earlier actions taken. Mayor Sheetz said the Community Development Director should go rather than the City Attorney; it is his field of expertise and he will be able to answer questions regarding the project. Coun- cilmember Lemons disagreed; legal questions may arise which should be addressed by the City Attorney. However, he has no objections if both staff members attend the meeting. MOTION: Councilmember Lemons moved City Attorney Judy Skousen and Community Development Director Bill Farrel be directed to appear at the Coastal Commission appeal hearing on the Williams Brothers CUP. The motion was seconded by Councilmember Baker. Councilmember Odell asked what the charge is to staff? Coun- cilmember Lemons said to be available to answer allegations and questions asked at the appeal hearing. The motion carried with Councilmember Odell and Mayor Sheetz voting no. (3-2) C. NEW BUSINESS • Mco 7"ITTRWOMang 73 No � Mr. Nichols stated with the last four consecutive years of less than average rainfall, staff has begun to plan for a possible fifth year drought situation which would be devastating to the municipal water supply. He discussed the lack of rainfall and the emergency measures conducted to counter -act the effects of the drought. Those emergency supplies may be dried-up by the end MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 26, 1990 PAGE 5 of Summer 1991 as well. If the drought continues, the City may be forced to make up one million gallons of water per day by the end of September. Staff is proposing the City turn to a desalination project that would involve the drilling of wells near the beach where Morro Creek enters the ocean, renting reverse osmosis units and placing them behind the City Corporation yard, and injecting treated water into the system. Staff considered purchasing rather than renting a permanent reverse osmosis unit; however, the permit and construction process required to establish a permanent unit would take considerably longer than renting a temporary unit which could be installed under emergency processes by June 1991. Also, a permanent plant's costs will be significantly higher. Mr. Nichols said the cost to drill a maximum of eight test wells is $120,000. The information received from drilling the wells will tell the quality and quantity of feed water that can be expected. He said the work needs to commence immediately in order to put a desal unit in place by summer if the tests indi- cate it is feasible. There was considerable discussion regarding purchase costs vs. rental costs for the treatment plants. Mr. Nichols explained the difference between a rental reverse osmosis unit and actually building a desalination plant. Councilmember Odell asked if drilling wells near the aquifers by the ocean could exacerbate the problem of salt water intrusion? Mr. Nichols stated the wells could actually have a positive effect of creating a barrier to salt water intrusion. Councilmember Wuriu said if this emergency project will ulti- mately cost $2.5 million, the City should instead work on a per- manent solution. Mayor Sheetz stated a Special Meeting will be held on December 18th to discuss water projects and long-term so- lutions. Mr. Nichols stated the $2.5 million estimate is a worse case scenario; it is possible the costs will be lower than that. Councilmember Wuriu asked if the wells drilled will be of any further use in the future? Mr. Nichols stated it is possible; the City of San Luis Obispo will be considering building a desalination plant to help their water problems, and the wells could be advantageous in a joint, permanent desalination project. Councilmember Baker asked if it is possible to purchase a rental unit? Mr. Nichols stated the cost of a rental unit to produce 800 gpm of potable water could be $4 to $6 million which does not include maintenance and operation of the unit; staff believes it is more economical to rent at this point. The reverse osmosis units currently rented by the City can produce only 110 gpm. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 26, 1990 PAGE 6 Councilmember Lemons commented the proposal is supportable as a worse -case scenario; however, he cautioned Council against using desalination as a long-term solution. He said it is very energy intensive and uses fossil fuel. He asked where the money will come from to support the $2.5 million emergency project? Mr. Napper stated the funds exist for drilling the test wells; staff is requesting Council appropriate $120,000 this evening. If the drought persists and the emergency desalination treatment project becomes necessary to install, staff will provide a cost analysis report to Council identifying funding sources. MOTION: Councilmember Wuriu moved Council appropriate $120,000 from the Water Capital Fund Balance for test well drilling on City -owned property for seawater as the first step in a seawater desalination emergency water project. The motion was seconded by Councilmember Lemons. Councilmember Odell asked if the City of San Luis Obispo is interested in working with Morro Bay on this project and if so, can we get some help from them on funding? Mr. Nichols stated it has been discussed on a staff level; however, it will be a policy decision made by both City Councils. Councilmember Odell asked if it is possible the test wells will not yield adequate water for this project? Mr. Nichols stated it is possible, but he hopes not. The motion carried unanimously. (5-0) •- •.. .�• R �SXG,•• •y. • •.: Rick Algert stated the lease for Lease Site 71-72W expires on January 31, 1991. He summarized the other leases held by Morro Bay Marina adjacent to this site and their expiration dates. Staff's position on renegotiating a lease for sites 71-72W is to negotiate a new City Master Lease for all sites held by Morro Bay Marina. Staff is recommending the lease for Lease Site 71-72W be extended to June 30, 1991 to allow the parties to work a lease for the entire site; the extension will include an increase in the existing rent. It will be made clear to the lessee of this property no further extensions will be granted, and the City will assume possession of the site if a new lease is not agreed upon by the extension date. Mr. Algert stated the City Attorney is researching the effect of adopted Measure I on the water equiva- lencies for a project approved to span this lease site. Mayor Sheetz referenced Public Comments by Ann Freeman and asked if lease extensions are usually matters for New Business rather than Public Hearings? Mr. Napper stated yes, lease site items are typically handled under New Business by Council Policy. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 26, 1990 PAGE 7 MOTION: Councilmember Baker moved for the adoption of Resolu- tion No. 141-90. The motion was seconded by Coun- cilmember Lemons and carried with Councilmember Odell voting no. (4-1) Mayor Sheetz stated Council will now consider Public Hearing items as it is 7PM. � \ - - • •.\ _ ice- �. - ' •_• - •.=3 Leg Mr. Nichols stated Council approved the Tentative Tract Map on this 13-lot single family residential subdivision on Ironwood two years ago. One of the conditions set by Council is the require- ment the developer form a property owners assessment district to reimburse the City for maintenance of municipal storm drain improvements. Mr. Nichols detailed the improvements required, and stated the developer has submitted documents to the City to form the District, and a resolution has been prepared to initiate the storm drain maintenance district. The resolution announces the City's intention to form the district, and sets the matter for public hearing on January 14, 1991. Councilmember Lemons offered a correction to Resolution No. 139- 90 which sets the hearing date as January 14, 1990 rather than January 14, 1991. Mayor Sheetz noted this is the first step of the process. Mayor Sheetz opened the hearing to the public for comments. There were no comments, and the hearing was closed. MOTION: Councilmember Odell moved for adoption of Resolution No. 139-90 as amended. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) Kul • •�M_ -- _ _ __ _ _ Mr. Napper stated this item is scheduled at the request of Coun- cilmember Lemons. A copy of the Government Code procedures to enact a temporary moratorium has been included in the Agenda packet. He noted Council and the Harbor Advisory Board agreed several years ago the preparation of the Waterfront Specific Plan should be undertaken by existing staff and members of current boards and commissions, rather than by a consultant. It was rec- ognized then that this policy would elongate the study period. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 26, 1990 PAGE 8 The current committee consists of members of the Planning commis- sion, Harbor Advisory Board, and Recreation and Parks Commission. If a moratorium is declared requiring the plan to be completed within a certain timeperiod, additional staff or a consultant will be needed to help with the project. Mr. Napper stated Coun- cil must also make findings of protecting the public safety, health and welfare to adopt an interim moratorium. Mayor Sheetz asked if Measure I virtually creates a moratorium? Ms. Skousen stated she is currently researching the matter; it is possible Measure I may allow some construction on a very limited basis. Mayor Sheetz suggested waiting until Ms. Skousen has fin- ished her research on Measure I before enacting a moratorium. Mayor Sheetz noted current projects going through the process on the Embarcadero are the Marina Center and the Gunther project; Mr. Napper added the Morro Bay Marine Research Center project as well. Councilmember Lemons stated his intention to enact a moratorium on the Embarcadero is not to include projects which have been approved. His intention is to hurry the Waterfront Specific Plan along so developers in charge of projects, such as the marina planned for The Inn at Morro Bay, will know in advance what the community wants for the Embarcadero. Developers will not have to go through the time and expense to find out the City does not want that type of project on the waterfront. Mayor Sheetz asked if a lawsuit would result if Council enacts a moratorium on the Embarcadero? Ms. Skousen said findings could be established to enact a moratorium if that is what Council wishes to do; findings cold also be made to exempt those projects already approved. She noted if Council enacts a moratorium, the Waterfront Specific Plan will have to be completed in a maximum of two years. Council can also direct the Waterfront Specific Plan Committee to finish the plan within a specific timeperiod without enacting a moratorium. No action was taken. C-4 REQUEST BY SAN LUIS OBISPO COUNTY VISITORS AND CONFERENCE BUREAU TO HOLD ANNUAL MEMBERSHIP DINNER MEETING IN MORRO BAY FIRE STATION NO, 1 ENGINE ROOM Mr. Napper stated the City received a request from the San Luis Obispo County Visitors and Conference Bureau to hold their annual dinner meeting at Fire Station No. 1. It is an unusual request, and has been submitted to Council for policy determination. He said the Fire Chief believes the event will have no effect on his ability to provide emergency services to the public, and the VCB has agreed to insure the City against any claims arising from MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 26, 1990 PAGE 9 their use of the facility. Conditions have been set for use of the Station, and the VCB has verbally agreed to them. Mayor Sheetz referred to the City Attorney's comment in the staff report regarding precedent setting, and asked if the City will be required to let others use the site if they approve this one? Ms. Skousen stated yes, if Council decides it is a facility available for an outside group, it cannot discriminate against other groups. However, Council can determine this use is experi- mental only; and, if it does not work, Council can adopt a policy the Fire Station will not be used for groups use such as this. Councilmember Baker said he has attended many events throughout the United States which have been held in Fire Stations without any detriment to Fire Department activities. Fire Stations have been social centers in many towns, and he sees nothing wrong with this proposal. MOTION: Councilmember Baker moved Council grant San Luis Obispo County Visitors and Conference Bureau's request for use of the Morro Bay Fire Station No. Engine Room for their annual dinner meeting on 29 January 1991, subject to the use conditions outlined in the staff report. The motion was seconded by Councilmember Lemons. Councilmember Wuriu stated this item was brought to Council too late; the VCB has already made arrangements and printed invita- tions. He believes it may set a precedent as the newspaper will most likely do an article on it and more people may request use of the Fire Station as a result. He believes a fee should be charged to the VCB for use of the facility similar to charges made for other City facilities. However, he will not vote against the use. Mayor Sheetz asked if Councilmember Baker will amend his motion to include the use is experimental only? Councilmember Baker said he does not see the need to do so. Fire Stations have been used historically for social events. Councilmember Wuriu com- mented they are normally used in small towns because there are no other facilities. The motion was unanimously carried. (5-0) E. CLOSED SESSION NONE MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 26, 1990 PAGE 10 F. ADJOURNMENT MOTION: Councilmember Odell moved The motion was seconded unanimously carried. (5-0) The meeting adjourned at 7:21 p.m. Recorded by: ARDITH DAVIS City Clerk the meeting be adjourned. by Councilmember Baker and • City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING - NOVEMBER 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 at this time. 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 (CITY COUNCIL) 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 OCTOBER 22, 1990 A-2 AUTHORIZATION TO ADVERTISE EXPIRING TERMS OF OFFICE (14) ON VARIOUS CITIZEN ADVISORY BOARDS A-3 RESOLUTION NO. 134-90 AUTHORIZING CITY CLAIM FOR FY 90-91 STATE TRANSPORTATION DEVELOPMENT ACT MONIES A-4 AGREEMENT WITH CALIFORNIA OFFICE OF EMERGENCY SERVICES FOR SUPPLY, STORAGE AND USE OF ALUMINUM PIPE FOR WATER DISTRIBUTION IN DISASTER SITUATIONS A-5 STATUS REPORT ON CITY'S GROUNDWATER SUPPLY SYSTEM A-6 RESOLUTION NO. 135-90 DESIGNATING CERTAIN EMPLOYEES TO RECEIVE REPORTS FROM STATE DEPARTMENT OF SOCIAL SERVICES REGARDING LICENSED SCHOOL -AGE CHILDCARE PROGRAMS A-7 RESOLUTION NO. 137-90 APPROVING PUBLIC AREA USE PERMIT FOR ANNUAL LIGHTED BOAT PARADE (DECEMBER 9TH) A-8 ACCEPTANCE OF RESIGNATION FROM COMMUNITY PROMOTIONS COMMITTEE (PERKINS) AND APPOINTMENT OF NEW REPRESENTATIVE FROM WATERFRONT LEASEHOLDERS ASSOCIATION A-9 RESOLUTION NO. 13 •0 APPROVING ASSIGNMENT OFL EASE SITE 86/86W FROM H.L. YOCUM & SONS, A PARTNERSHIP, TO CLARA BELLE YOCUM, H. GENE YOCUM, AND ROBERTA ARCHULETA (DBA FISH BOWL RESTAURANT/SOUTHERN PORT TRADERS) A-10 RESOLUTION NO. 131-90 AWARDING CONTRACT FOR PROJECT NO. PW 89-16; CENTENNIAL PARKWAY RESTROOM AND STREET -END IMPROVEMENT PROJECTS A-11 PROCLAMATION RECOGNIZING THE DEL MAR HEAD START CENTER'S RIBBON - CUTTING CEREMONY ON NOVEMBER 20TH B-1 ORDINANCE NO. 385 AMENDING SECTION 13.20 OF THE MORRO BAY MUNICIPAL CODE REVISING THE CITY'S WATER EQUIVALENCY TABLE "A" SPECIFYING AMOUNT OF WATER REQUIRED FOR VARIOUS TYPES OF USES (SECOND READING/ADOPTION) C-1 REPORT ON PROSPECT OF OFFERING LOCAL VENDOR PREFERENCES IN CITY PURCHASE OF SUPPLIES AND EQUIPMENT C-2 COUNCILMEMBER REQUEST FOR REVIEW OF CITY MASTER TREE LIST AND APPLICABLE ORDINANCES D. PUBLIC HEARINGS, REPORTS & APPEARANCES D-1 APPROVAL OF CERTIFICATE OF PUBLIC CONVENIENCE FOR OPERATION OF HORSE- DRAWN CARRIAGE IN EMBARCADERO AREA (CLYDESDALE CARRIAGE COMPANY, APPLICANT) D-2 DETERMINATION OF AWARDING CONTRACT OR REJECTING BIDS AND STATING FINDINGS OF FACT FOR THE USE OF DAY LABOR TO IMPLEMENT PHASE IV OF THE WATERLINE REPLACEMENT PROGRAM (PROJECT NO. PW 90-04) D-3 APPROVAL OF POLICY GUIDELINES FOR LIMITED USE OF GREYWATER FOR RESIDENTIAL LANDSCAPE IRRIGATION D-4 CONTINUED PUBLIC HEARING ON APPEAL OF PLANNING COMMISSION'S APPROVAL OF VESTING TENTATIVE MAP ON WILLIAMS BROTHERS PROPERTY (PM 04-90/CDP 37-90; AL PAUL AND BEN LUNA, APPELLANTS) ON E-1 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY NEGOTIATIONS; DOMENGHINI FLATLANDS E-2 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY NEGOTIATIONS; LEASE SITE 96/96W (945 EMBARCADERO, DBA WHALE'S TAIL RESTAURANT) E-3 GOVERNMENT CODE SECITON 54956.9(A), PENDING LITIGATION, NORTON V. CITY OF MORRO BAY, ET AL. 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. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 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 Judy Skousen Rick Algert Bill Boucher Louise Burt Ardith Davis William Farrel Forrest Henderson Dave Howell Nick Nichols Steve Wolter Horace Strong gave the invocation, Allegiance. City Administrator City Attorney Harbor Director Assoc. Civil Eng. Finance Director City Clerk Community Dev. Dir. Asst. City Admin. Police Chief Public Works Dir. Rec. & Parks Dir. and led the Pledge of 1. Bruce Risley, Piney Way, said in a 1988 election, the people overwhelmingly voted to rezone property near the old Safe- way Shopping Center for more competitive shopping. He requested Council place an item on the agenda to discuss competitive shop- ping and why the City has not yet accomplished the goal. He dis- cussed instances of shopping at other markets where their prices were much lower than Williams Brothers'. 2. Katherine Walling noted a radio program wherein the subject was Monarch butterflies. She said the butterflies depend on trees and she is concerned about the timing of the Monarch butterflies' migration and the cutting of trees in Morro Bay. During the last few years, the number of butterflies in Morro Bay has diminished, but has increased in Shell Beach. She noted a ballot measure passed in Pacific Grove to preserve property where the butterflies rest. She believes the Chamber of Commerce should be advertising these types of attractions rather than a 0 • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 13, 1990 PAGE 2 good place to eat and sleep; Morro Bay is missing big opportunities. 3. Ray Kaltenbach, 473 Sicily, commented on derelict boats moored at the North T-Pier, and asked if they could be removed? Mr. Algert stated three of the boats are current on their mooring fees, and one is being processed for removal. 4. Dick Haidet suggested Council consider building a small desalination unit for supplemental water. Other projects being considered by the City will take years. A small plant could help in the interim. 5. Bonnie Willow Kelley, 500 Atascadero Road, stated sugar pea planting is the most water -intensive agricultural use there is; farmers should be planting crops that use less water. 6. Joe Silvaggio, Complete Development Services, requested time to speak on Item A-10. Mayor Sheetz said he could speak at this time. Mr. Silvaggio of Development Services stated they are the low bidder on this project; however, staff is recommending their bid be rejected on the basis the contractor's organization is required to perform 50% of the work. He said the City is in receipt of a letter from him showing how they intend to accom- plish 50% of the work; he distributed the letter to Council. He said they are in compliance with CalTrans specifications, and a grave injustice is being done. Mr. Nichols stated a complaint was filed by the second low bidder regarding the Development Services' listing of subcontractors and the fact they were not going to accomplish at least 50% of the contract by their own organization. Staff's initial contact with Mr. Silvaggio resulted in his indication he did not intend to comply but would construct the project with subcontractors under his control. Subsequently, he provided staff with a breakdown which has been reviewed by the City Attorney and discussed with the Association of General Contractors and CalTrans; all are of the opinion the letter is not sufficient. The letter presented this evening is totally different and Mr. Nichols has not had the time to review it. Ms. Skousen agreed the letter is different information than his prior submittal; it is too late and unfair to let him modify the bid he submitted. a MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 13, 1990 PAGE 3 Mr. Silvaggio stated it is the same down differently, the total is the gave this information to Mr. Boucher. information; it is broken same. He said he verbally Ms. Skousen stated the bid Mr. Silvaggio originally submitted appeared to have all the work being accomplished by subcontrac- tors. When he was asked for a clarification, he said he did not think the 50% regulation applied to him. His subsequent break- down included profit and did not list material suppliers where it appears the costs exceeded 2% of the total bid. Mr. Silvaggio stated the numbers are identical; there is no change in bid package or bid numbers. The City Attorney is giv- ing Council bad information. Mr. Nichols said staff cannot be expected to review new informa- tion tonight and make a decision on it. The City complied with public bidding requirements; we have a duty to determine if all bids are correct and all contractors are dealing with the City on a fair basis. Ms. Skousen stated it is her opinion the profit figure cannot be added into the bid to prove the contractor is doing part of the work himself. Councilmember Lemons asked if the bid has to be awarded tonight? Mr. Nichols stated yes, it has to be awarded within 30 days or the project automatically goes to the low bidder. Bids were opened on October 16th. Council deferred action on this item until consideration of the Consent Calendar. OF FUTURE AGEN 1. Councilmember Wuriu requested a future agenda item to discuss the City's relationship with the County regarding han- dling of election returns. He believes it is regrettable a week has gone by since the election, and we still do not have the results of the close races in Morro Bay. With only 300 absentee votes, there should have been some way they could have been counted by now. • _h u_� _ • . WIR404men • • •: Mr. Napper recommended Council approve the minutes as submitted. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 13, 1990 PAGE 4 A-2 AUTHORIZATION TO ADVERTISE EXPIRING TERMS OF OFFICE fl4) ON VARIOUS CITIZEN ADVISORY BOARDS Mr. Napper recommended Council authorize the advertisement of existing and upcoming vacancies on six City advisory boards. A-3 RESOLUTION NO, 134-90 AUTHORIZING CITY CLAIM FOR FY 90-91 STATE TRANSPORTATION DEVELOPMENT ACT MONIES Mr. Napper recommended Council adopt Resolution No. 134-90. A-4 AGREEMENT WITH CALIFORNIA OFFICE OF EMERGENCY SERVICES FOR SUPPLY, STORAGE AND USE OF ALUMINUM PIPE FOR WATER DISTRIBU- TION IN DISASTER SITUATIONS Mr. Napper recommended Council authorize the City Administrator to sign the Agreement. A-5 STATUS REPORT ON CITY'S GROUNDWATER SUPPLY SYSTEM Mr. Napper recommended Council receive the report for information. A-6 RESOLUTION NO, 135-90 DESIGNATING CERTAIN EMPLOYEES TO RECEIVE REPORTS FROM STATE DEPARTMENT OF SOCIAL SERVI ES REGARDING LICENSED SCHOOL�AGE CHILDCARE PROGRAMS Mr. Napper recommended Council adopt Resolution No. 135-90. A-7 RESOLUTION NO. 137-90 APPROVING PUBLIC AREA USE PERMIT FO ANNUAL LIGHTED BOAT PARADE (DECEMBE 9TH) Mr. Napper recommended council adopt Resolution No. 137-90. A-8 ACCEPTANCE OF RESIGNATION FROM COMMUNITY PROMOTIONS COMMIT- TEE (PERKINS) AND APPOINTMENT OF NEW REPRESENTATIVE FROM WATERFRONT LEASEHOLDERS ASSOCIATION Mr. Napper recommended Council accept the resignation of John Perkins, and appoint Rodger Anderson to represent the Waterfront Leaseholders Association as recommended by that organization. Mr. Anderson currently serves as the Hotel/Restaurant Association representative, and that organization now nominates Ed Biaggini III, President of the Hotel/Restaurant Association, for that position. Mr. Napper recommended Council adopt Resolution No. 136-90. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 13, 1990 PAGE 5 MENT PROJECTS Mr. Napper recommended Council reject the low bid by Complete Development Services, Inc. as being non -responsive, and adopt Resolution No. 131-90 awarding the bid to Riedel Engineering and Construction in the amount of $139,457. Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. Councilmember Odell requested Item A-1 and A-6 be pulled for sep- arate discussion. A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF OCTOBER 22, 1990 Councilmember Odell offered a correction to the Minutes of Octo- ber 22nd; on page 10 there is a motion made and seconded by Coun- cilmember Odell. Staff indicated the correction will be made. Councilmember Odell asked Mr. Wolter questions regarding the des- ignation of employees to receive State reports. Mr. Wolter stated their authority extends only to accepting receipt of documents. MOTION: Councilmember Baker moved for approval of the Consent including the amendment to the Minutes. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Napper stated Council approved first reading of this ordi- nance at their last meeting; minor changes have been made as directed by Council. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 13, 1990 PAGE 6 Councilmember Baker stated the Dry Cleaners designation refers only to off -site cleaning; he believes there is one dry cleaners in town that does on -site cleaning. It was noted by staff if a dry cleaners applies for a permit, the ordinance allows adminis- trative estimating. Also, dry cleaners could be included in future revisions to the Water Table. Councilmember Wuriu asked if there is an appeal process if a facility operator does not agree with the figures? Mr. Farrel stated yes, through the Planning Commission and on appeal to the City Council. MOTION: Councilmember Lemons moved Ordinance No. 385 be read by title and number only. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mr. Napper read Ordinance No. 385 by title and number only. MOTION: Councilmember Baker moved for the adoption of the sec- ond and final reading of Ordinance No. 385. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) C. NEW BUSINESS Ms. Burt stated Council requested information regarding bid pref- erence to local businesses. She said the advantage to this is it allows City business dollars to recirculate through the commu- nity; the argument against the practice is it discourages compet- itive bidding and subsidizes a few businesses at the expense of the taxpayer. She suggested a compromise to allow local bid preference of 5% where there is no sacrifice or loss in quality, performance or price; and, only on items for supplies and equip- ment wherein the sales tax paid by the City returns to the City. Councilmember Baker said he is in favor of the staff recommendation. MOTION: Councilmember Baker moved staff be instructed to pre- pare an ordinance permitting a local vendor bid prefer- ence of 5% on City purchase of supplies and equipment when there is no apparent sacrifice or loss in quality, performance, or price. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 13, 1990 PAGE 7 AND D _ _ORDINANCES _ Councilmember Wuriu stated he believes a committee needs to be established to consider trees, their protection, what type of trees the community wants to plant and where. He said there was a committee in 1968 which devised a list of acceptable trees. Some people are complaining because of the messy eucalyptus trees. He discussed the matter with Mr. Napper, and it does not appear staff has the time to facilitate another committee at this moment. Mr. Napper stated he would like to make the committee part of the staff work program for 1990-91, and wait until one of the other Council -appointed committees has completed their task before commencing this one. MOTION: Councilmember Wuriu moved Council establish a Tree Com- mittee to look into problems connected to keeping our trees, planting different varieties, and update the previous committee's tree list; the committee to be established as staff has time available to organize it. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) D. PUBLIC HEARINGS--REPORTS—_APPEARANCES D-1 APPROVAL OF CERTIFICATE OF PUBLIC CONVENIENCE FOR OPERATION OF HORSE-DRAWN CARRIAGE IN EMBARCADERO AREA (CLYDESDALE CARRIAGE COMPANY, APPLICANT) Chief Howell stated the request by Todd Dolezal for a permit to operate a horse-drawn carriage on the Embarcadero has been pro- cessed through the City's taxi -cab ordinance. He has investi- gated the business which currently operates in San Luis Obispo and finds no reason to deny issuance of a Certificate of Public Convenience. He noted Mr. Dolezal plans to conduct the business on Fridays, Saturdays, and Sundays between 11AM and 4PM. Mr. Dolezal recently requested the Certificate of Public Convenience be amended to include operation on holidays. He will be loading and unloading the carriage and horses at Coleman Park or Morro Rock parking lots. While the carriage may have an adverse effect on traffic flow, Chief Howell does not believe it will be worse than the current problems relating to congestion on the Embarcadero. Mr. Dolezal circulated a picture of the Clydesdale Carriage to Council. Mayor Sheetz asked if this will be a year -around opera- tion? Mr. Dolezal stated yes, he would like expanded hours of operation during the summer, and will cut -back on the hours dur- ing the winter time. Mayor Sheetz opened the hearing to the public for comments. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 13, 1990 PAGE 8 Mr. Dolezal requested Council authorize the Chief of Police to approve any subsequent changes in hours of operation. Mr. Napper stated any subsequent changes should be placed on the Consent Calendar for Council review and approval, but would not require a public hearing. Ed Smith questioned the insurance and safety of the operation. Chief Howell stated Mr. Dolezal has provided the City with a Cer- tificate of Insurance in the amount of $1 million which names the City harmless for liability for his operations. William Manley, 680 Bella Vista, said it is already difficult to travel on the Embarcadero with the traffic and eliminating one of the north- and south -bound lanes to Coleman Drive. The carriage will impede traffic further and be dangerous. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Baker moved Council authorize the issuance of a Certificate of Public Convenience to the Clydesdale Carriage Company of San Luis Obispo, to include holiday operations as requested. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) Mr. Nichols stated this is the fourth and last phase of the pipeline replacement project. In the past, the City has used its own crews to perform the work in accordance with provisions of the Public Contract Code; this Code requires the City first advertise for bids, then prove it can perform the work itself for less money. He noted all bids received contain irregularities. The low bid from Valencia Construction is $282,544, and it is estimated the City forces can perform the work for $190,138. Mr. Nichols stated the City has saved over $k million dollars for Phases I -III by doing the work in-house. He said two Maintenance Worker II positions are vacant and may be temporarily filled if Council decides to award the contract to the City. Mayor Sheetz asked if Carmel Street will be paved after Phase IV is installed? Mr. Nichols stated yes. Mayor Sheetz asked where the money comes from to pay for this project since the Council has allocated funds from this budget to the emergency reverse osmosis project. Ms. Burt stated the funds saved from the first three phases can be used. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 13, 1990 PAGE 9 Councilmember Baker asked if the Fire Chief is satisfied with the 6" pipes to be installed for commercial areas? Mr. Nichols stated yes. Mayor Sheetz opened the hearing the public for comments. Bob Dorn, representing the Construction Industry Force Account Council (CIFAC), asked if the two employees hired to perform this work will be terminated after the project is done? Mr. Nichols stated yes. Mr. Dorn stated CIFAC filed suit against the City the last time they awarded a project of this nature to them- selves. The courts found CIFAC had no financial interest in the project, so dismissed the suit. However, the court made no find- ings on the allegations. He advised Council Valencia Construc- tion, low bidder in this project, has authorized CIFAC to sue in their name if the City awards the contract to itself; Valencia Construction does have a financial interest in the project, and CIFAC will ask for declaratory relief and go to court on their behalf. He criticized the City for using a loophole in the Pub- lic Contract Code to award the project to themselves, stating contractors go through considerable time and money to prepare bids. He said the City has not included all expenses in their costs, citing a backhoe purchased to do this work. Trench work is also inadequate when refilled. Councilmember Wuriu asked if Mr. Dorn would prefer the City sub- mit a sealed bid? Mr. Dorn noted no local contractors bid on the project; what the City is doing may not be illegal, but it is stretching the competitive bid process. Ray Kaltenbach, Sicily Street, stated cities have been doing this for years. When he worked for the Department of Water and Power in Los Angeles, it was done all the time. There is nothing ille- gal about it. June Hofstead, 690 Elena, said she appreciates the improvements to the streets. If the City can do it cheaper, it is saving her money; she noted her money also helps to pay for City equipment to construct the project. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Lemons moved Council reject all bids for Project No. 90-04. The motion was seconded by Coun- cilmember Wuriu. Ms. Skousen suggested Council also make findings the Valencia Construction and Blois Construction bids are unresponsive to the bid specifications. Councilmember Lemons amended his motion the Council finds the first two low bids un-responsive; rejects the MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 13, 1990 PAGE 10 bid of Coastal Earthmovers; and, adopts Resolution No. 133-90 (Option C). The amendment was accepted by Coun- cilmember Wuriu and unanimously carried. (5-0) MOTION: Councilmember Wuriu moved staff be instructed to pro- ceed forthwith on the waterline replacement project using City forces. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) • s Ji:L•I��Sail•3�{�'�h�F��F�F���al�3' - - u _ _ • • :. Mr. Nichols stated Council previously directed staff to develop guidelines for residents to follow in recovering washing machine water to irrigate landscaping on a subterranean level. He reviewed the booklet which has been developed by the Water Advi- sory Board with the help of the County Department of Environmen- tal Health and City of San Luis Obispo Utilities Department. The County Health Agency has approved the booklet for use as has the Planning Commission; the guidelines do not require a permit be obtained to construct this simple greywater system. Councilmember Odell requested an addition be made to the bottom of page 12 of the guidelines, "Greywater should not be used for direct consumption by humans or animals. Greywater should not be used to wash down hard surfaces such as sidewalks and driveways." Councilmember Wuriu asked if the guidelines can be enforced? Mr. Nichols stated the Health Agency is responsible for investigating health problems. Mayor Sheetz opened the hearing to the public for comments. Mary Phillips, Ironwood, said a public health official should be at the meeting to explain what greywater is. The older popula- tion and children are very susceptible to viruses. How is the City going to keep her neighbor's greywater from her animals and vegetables? Mayor Sheetz closed the hearing to the public. Mr. Nichols stated a public health official has reviewed the guidelines and stated they are acceptable for implementation. The pamphlet is very explicit on what the public can and cannot do. Councilmember Odell noted the booklet provides for use of washing machine water only. He said there is a greater hazard from just carrying dirty laundry to the washing machine than re -using the water from the laundry. He said it is a completely subterranean program. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 13, 1990 PAGE 11 Mayor Sheetz complimented Councilmember Odell on his persistence to have the guidelines established and said it is great contribu- tion to the City. MOTION: Councilmember Wuriu moved Council adopt the City of Morro Bay Guidelines for Approved Greywater Use in Res- idential Landscapes. The motion was seconded by Coun- cilmember Baker and unanimously carried. (5-0) Council recessed from 7:35 p.m. to 7:45 p.m. b llfll�ij ! S_. •� :_��_ •via.__ s� Mayor Sheetz stated the item on the agenda is not to discuss the merits of the Williams Brothers project, or the approval of it; the discussion will only be on the appeals to the Planning Com- mission's approval of the Vesting Tentative Map. Mr. Farrel stated in March 1990 the Council approved the Williams Brothers concept plan. In June, Williams Brothers applied for a Vesting Parcel Map to subdivide his property into four parcels. He outlined the review of the Map since that time and stated it was found complete on August 30th, then approved by the Planning Commission on October 1st. They found the Map in conformity with City and State Laws, the General Plan, Local Coastal Program, and current zoning. Mr. Farrel recommended Council deny the appeals; a Resolution has been provided for that purpose. He requested Council amend the Resolution on page 2, A2, to eliminate the word "Commission" in the first sentence and reword the first line as follows: "That the City Council does hereby deny the agaeals and..." Mayor Sheetz asked Mr. Farrel to explain the difference between a tract map and a parcel map. Mr. Farrel stated a tract map is required for more than four parcels; a parcel map refers to four or less parcels. The tract map process is more rigorous. Mayor Sheetz opened the hearing to the public for comments. Ben Luna, appellant, stated a tentative map can only be declared complete if all laws have been complied with. He said Williams Brothers falsely advertised if Measure H passed, they would not be able to build a project; now, they offer a compromise 13-acre project. He said the Council is a quasi-judicial board to rule on this matter and cited the following reasons for denial of the Vesting Tentative Parcel Map: 1) Failure to obtain a city tract number from the County; 2) failure to indicate the ultimate plan for the whole area; 3) inconsistency with the Circulation Element of the City's General Plan Policy C-16 with reference to cul-de- sacs; 4) non-compliance with Policy C-14 requiring construction MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 13, 1990 PAGE 12 of a through route before building east of Highway 1 south of the Harbor Front Tract. Mr. Luna said there are too many unanswered questions. The Plan- ning Commission approved the Map based on the City Attorney's guidance; at that meeting, she gave no legal basis for her find- ings. He stated Council decision should not be based on threats by applicant of a lawsuit, which threat is in violation of their CUP when they agreed to indemnify and hold the City harmless. David Williams, Williams Brothers Corporation, stated Williams Brothers has been part of this community for many years; they are proud of their reputation for service. During the past four years they have worked forward towards this project and do not want to start over. Williams representatives have met with new Councilmembers Ben Luna and Sue Mullen and advised them they are willing to scale down the shopping center. He requested Council reject the appeals. Bruce Elster, project engineer for the Williams Brothers project, urged Council to reject the appeals. He said Council is in receipt of letters from Williams Brothers attorneys which state there is no legal basis for the appeals. They would like to move forward to provide the citizens of Morro Bay with the shopping they want. The Vesting Map is not a building permit. Mayor Sheetz asked if Williams is willing to work on a smaller project, are they willing to drop this Map and go forward from there? Mr. Elster said Williams requests the Vesting Map be approved, then they will scale down the project; they do not want to the lose the zoning on the property. Mayor Sheetz wanted to know what Williams Brothers has planned for the rest of the prop- erty after they develop a smaller project. Mr. Elster said there are no plans at this time; the zoning will be preserved and remain in place. Mayor Sheetz asked if Williams Brothers planned to develop the rest of the property. Mr. Elster said it may be considered sometime in the future when the community wants it. Marshall Hilsky, environmental planner for the project, said the certified EIR for this project is environmentally sensitive. All concerns have been addressed. He quoted from a letter from the Department of Fish and Game commenting on the satisfactory miti- gation measures to preserve Willow Camp Creek. Many economical mitigations have been included in the CUP in the way of infras- tructure improvements. A trolley is proposed to operate between the shopping center and downtown area. All illustrate Williams Brothers' concern for protection of the environment. He stated he has been an environmental planner for 20 years, and never worked with client so willing to work with the citizens of Morro Bay. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 13, 1990 PAGE 13 Councilmember Lemons referred to a copy of the statement Mr. Luna read and asked him why he left out the paragraph stating, "Williams Brothers attorneys have no obligation to indemnify the individual councilmembers from a criminal investigation by the Grand Jury."? Mr. Luna responded he left it out because it was inappropriate. Ray Kaltenbach asked what happens to Measure H which was approved by the voters if Council approves the Tentative Map? Councilmem- ber Odell stated the Map has to be considered under the laws that were in effect on the day the Map was declared complete; those rules were in effect before the election. If the Map is consis- tent with the rules and regulations in effect at the time the Map was approved, Council's hands are tied. Anita Judd stated the Map is flawed; it is an inappropriate attempt to develop 30 acres. The people voted for a smaller shopping center. She encouraged Council to reject the Map and ask Williams Brothers to come back with a 13 acre map. Vernon Richardson, 2961 Sandalwood, said the Planning Commission did not unanimously approve the Map; Commissioner Bernie Melvin voted against it and that fact should be noted. He does not see why the Map has to be approved tonight, and why it has to be approved for 30 acres. As soon as Council approves this Map, the developers will return with another project. Susan Mullen, 985 Pacific, displayed a drawing of the Williams Brothers property showing the Conditional Use Permit map and a Vesting Tentative Map. She stated the Vesting Tentative Map must comply with the Subdivision Map Act, the General Plan, Local Coastal Plan, Section 16 of the Municipal Code dealing with Sub- divisions, and Ordinance 373 dealing with Vesting Tentative Maps. She asked if Council knew how these ordinance applied to the map, or were they totally relying on the Planning Director and City Attorney to tell them how to deal with it? She recommended Coun- cil get a third party, such as the County, to review this and make recommendations to the City. Wait on this another two weeks. Councilmember Baker said with regard to Ms. Mullen's question as to whether he could tell all the technical differences between one map and the other, the answer is no. He has worked in three different cities, and the staff in this City is equal or superior to any with which he has worked. He believes they are competent and he believes what they tell him. Ms. Mullen stated she has worked with Mr. Farrel and Ms. Skousen on this and she is not saying they are inappropriate; however, if a group of citizens in town can find things wrong with the Map, including the wrong name on the Map, there may be things wrong with it. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 13, 1990 PAGE 14 Robert Lane stated he has discussed the map with an attorney and there is something wrong procedurally. A vesting map can only vest the zoning that is in place. The Vesting Map in this case was accepted by an administrative commission of the City; it has no legislative effect. When the appeal was filed, the Vesting Map was suspended; there is no vesting map in place. Subse- quently, Measure H passed. The most that can be vested is what Measure H allows; you cannot vest what does not exist. Mayor Sheetz asked Ms. Skousen to respond to Mr. Lane's comments. Ms. Skousen stated the Subdivision Map Act and Vesting Map provi- sions require the Map be processed and approved or denied based only on the laws in effect at the time the Map was found complete which was August 31, 1990. The Planning Commission is the body required by the Subdivision Map Act to approve or deny a tenta- tive map; the City Council is only the appeal body. The Planning Commission had to consider the zoning in effect on August 31st. If Council grants the appeal, there is no vesting map. Roxanne Gerber, 416 Napa Ave., said half the voters want the size of the project reduced, and half of them rejected that proposal. She urged Council to remember they are representing 100% of the voters in Morro Bay. Keith Jeffries, 535 Bernardo, noted in 1984 Williams Brothers said, "integrity is our policy, and we intend to keep our word". Before the election, they said they could not build a reduced shopping center. Now they tell the people they are willing to downsize the project. The speak with forked tongue and are fool- ing people. Peter Diffley, 175 Kern, said there are so many problems with the Map that can result in litigation. He said he has discussed the issue with different attorneys and planners, and the Attorney General's Office. They stated Measure H became effective the day of the election. Mr. Diffley stated the CUP is under appeal to the Coastal Commission, and their standards are different and more stringent regarding Willow Camp Creek. Get some additional information on this, and wait. Lynda Merrill, 391 Sequoia, presented Council with a petition requesting Council reject the Vesting Map. She said Williams Brothers is using the vested interest law as a legal bludgeon to shut off public debate. She said people made a clear statement on Measure H, and urged Council to grant the appeals. Donna Baker, 450 San Jacinto, said the vote last Tuesday on Mea- sure H was anything but a clear mandate from the people. Thomas Walters, 385 Arbutus, said the spirit of the law with the vesting map is to avoid long delays. The City should move for- ward with a smaller shopping center, and deny the Vesting Map. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 13, 1990 PAGE 15 Councilmember Lemons referred to the petition presented by Ms. Merrill and the letter attached to the petition by Paul Donnelly. Councilmember Lemons stated he received a call from Mr. Donnelly this evening; Mr. Donnelly was not aware his letter was attached to the petition, nor had he given his permission for signature gatherers to do so. Further, Mr. Donnelly indicated all of his comments on that letter have been answered. Ray Larsen, 957 Pacific, said he has worked for Williams Brothers for 25 years; Mr. Williams has always been honest and his inter- ests in building a shopping center are honest. He urged Council to reject the appeals. Steve Mathew, 1600 Preston, said he moved to Morro Bay because he likes a small town. He believes the appeal is valid and Ben Luna has made substantial valid points. Gary Gillman, Chamber of Commerce President, stated the Chamber of Commerce Board of Directors voted to support the Williams Brothers project. Mayor Sheetz asked if the Chamber had polled all members of the Chamber? Mr. Gillman stated no, but the Board is authorized to act on their behalf. Jerry Mullen, 985 Pacific, stated he read the Williams Brothers EIR. During the election Williams Brothers lied about the EIR and there was not time to respond. The EIR does not support the project; the best solution, according to the EIR, is no project. The second best solution is a smaller project. Mary Hammerlund, 1272 Bolton, encouraged Council to allow the Williams Brothers project to go ahead. Frank St. Denis, member of the Chamber of Commerce Board of Directors, said the Board did not poll Chamber members on their support of the Williams Brothers project any more than Council polls the community regarding their decisions. Williams Brothers has shown leadership in this divided community to reduce the pro- ject size. Councilmember Odell reminded the audience the discussion is to be directed towards the Vesting Map only; not whether or not they want a project or a smaller project. Lee Pitts said he leases the Williams Brothers rangelands from the Williams Brothers Corporation. They have always taken care of the land, and dealt with him with integrity and honesty. They intend to continue leasing the land to him for range after the project is built. Changing rules at the last minute is not integrity. Lily Collier, Ironwood, relinquished her time to Peter Diffley. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 13, 1990 PAGE 16 Mr. Diffley read a portion of the Subdivision Map Act, and said there is enough question regarding the Map's compliance that it should be denied. He said the design of the project is likely to cause substantial environmental damage and serious health prob- lems (lack of water). If the Coastal Commission approves the CUP appeal, it will invalidate the map should Council approve it. Mayor Sheetz closed the hearing to the public. Councilmember Odell asked the City Attorney to respond to the technicalities raised by the public. Ms. Skousen said City staff reviewed the Map very carefully when it was submitted. It was sent back to the applicant several times for corrections to make sure it complied with City and State laws. The map is now complete and the Subdivision Review Board acted properly in its approval. one of the questions this evening had to do with whether the Map is a Tract Map or Tenta- tive Map; in this case, the title makes no difference because it is a Vesting Map. When it is a Vesting Map, it then must be a Tentative Map. The City required the applicant to meet all of the conditions for a Tentative Tract Map found in both the Subdi- vision Map Act and our local Vesting Ordinance and Subdivision Ordinance. Another question had to do with whether all the future plans have to be indicated. They must explain their entire plan; however, if they have no plan, you cannot make them show what they have no plan for. The CUP contains their entire plan for the project at this time. It does not require them to detail plans for the rest of the subdivision. The question regarding the cul-de-sac is resolved through incor- porating the CUP which requires all streets be in conformance with the Circulation Element. There was a question regarding a County condition an easement be shown which is not on the map. It is not the City's business to enforce the County's conditions; this map cannot be recorded until the Final Map is recorded. If the easement is still a condition, they will not be able to record the Map until it is shown. Councilmember Wuriu said Ms. Skousen indicates one map will not be required until another map is prepared; what guarantee does the City have these things will be done? Ms. Skousen said it is a specific condition of the Map; all conditions are listed on the Map and the Final Map will not be recorded until it returns to Council for approval. Ms. Skousen stated another concern was the mitigation of environ- mental impacts from the project. When Council certified the EIR, it meant all the impacts could be mitigated. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 13, 1990 PAGE 17 Mayor Sheetz verified if Council approves the Vesting Map this evening, it locks in the zoning on all 30 acres of Mr. Williams' property. Ms. Skousen agreed. There was some discussion regarding the amount of time it would take Williams Brothers to get to this point again if they had to file a different map. Mr. Farrel stated staff has reviewed the Map very carefully as to whether it complies with the Subdivision Ordinance and Subdivision Map Act, and their review has nothing whatsoever to do with whether they advocate for or against the project. It does comply. Staff has discussed the subject with several different agencies which process these types of maps. People must bear in mind the Subdivision Map Act is extremely complicated; staff has only been interested in what the law allows the City to do and it is staff's opinion the Map meets the conditions of the law. Mayor Sheetz asked if it is customary to file for a CUP before a vesting map? Mr. Farrel stated staff prefers to review them at the same time; however, when the developer applied for the CUP, they were not planning on subdividing the land. Mayor Sheetz asked if cul-de-sacs as long as the ones in this project are customary in projects of this nature? Mr. Nichols stated he has been involved in projects in Fresno and Merced and has seen long cul-de-sacs with required access. Councilmember Wuriu stated Mr. Farrel has met with Ms. Mullen and Mr. Luna and is familiar with their with their objections and research. He asked if Mr. Farrel is convinced this Map meets the required legal requirements of the City? Mr. Farrel stated yes. Councilmember Wuriu stated the Tentative Map gives Williams Brothers the right to develop his property with the zoning in effect at the time the Map was approved. If the map is valid legally, Council has little choice. Council still retains con- trol of the project and without Council approval, there will be no shopping center at all. Councilmember Baker reiterated his faith in the recommendations by City staff, and is in favor of their recommendation to deny the appeals. MOTION: Councilmember Lemons moved the two appeals be denied and Resolution No. 138-90 be adopted. The motion was seconded by Councilmember Baker. Councilmember Odell stated there is no mandate in Morro Bay. He hopes the people can get beyond this issue. He noted the two new Councilmembers, Ben Luna and Susan Mullen, said before they were elected they would be willing to work with Williams Brothers on 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 13, 1990 PAGE 18 this project; he hopes they still want to. Councilmember Odell said one of the rationales for approval of this project is its consistency with the City's LUP; he disagrees but Council voted against his objections and approved the CUP. He said there is nothing he has seen since that makes the project consistent, only a legislative act by Council that deemed it such. When he votes no on the approval of the Map, it is because he does not believe it is consistent. Mayor Sheetz said this is the most emotional issue Morro Bay has seen; the town is divided down the middle. She believes a shop- ping center can be built that will be acceptable if everyone gives a little. The motion carried with Councilmember Odell and Mayor Sheetz voting no. (3-2) E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.8. REAL PROPERTY NEGOTIATIONS: DOMENGHINI FLATLANDS E-2 GOVERNMENT CODE SECTION 54956.8. REAL PROPERTY NEGOTIATIONS; LEASE SITE 96/96W (945 EMBARCADERO. DBA WHALE'S TAIL RESTAURANT) E-3 GOVERNMENT CODE SECTION 54956.9(A). PENDING LITIGATION. (NORTON V. CITY OF MORRO BAY, ET AL. MOTION: Councilmember Odell moved the meeting adjourn to Closed Session. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) Mayor Sheetz read the Closed Session statement. The meeting adjourned to Closed Session at 9:33 p.m. and returned to regular session at 10:32 p.m. F. ADJOURNMENT MOTION: Councilmember Odell moved the meeting be adjourned. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) The meeting adjourned at 10:32 p.m. Recorded by: ARDITH DAVIS City Clerk Ll eafeM aa, rg90 City of Morro Bay City Council Agenda Mission Statement The City of Mom 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 - OCTOBER 22, 1990 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE MOST VALUABLE EMPLOYEE AWARD, THIRD QUARTER - STEVE ECONOMON 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 at this time. 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 (CITY COUNCIL) 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 OCTOBER 8, 1990, AND SPECIAL MEETING (CLOSED SESSION) OF OCTOBER 11, 1990 A-2 EXPENDITURE REPORT - SEPTEMBER 1990 A-3 STATEMENT OF INVESTMENTS - SEPTEMBER 1990 A-4 PROCLAMATION DECLARING NOVEMBER 1990 AS "HOSPICE MONTH" A-5 AWARD OF CONTRACT FOR PROJECT NO. PW 89-16; CENTENNIAL PARKWAY RESTROOM AND STREET -END IMPROVEMENT PROJECT (PULLED) A-6 STATUS REPORT ON GROUNDWATER WELL LEVELS B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 383 AMENDING SECTION 13.04.270 OF THE MORRO BAY MUNICIPAL CODE TO REQUIRE LARGE VOLUME WATER USERS TO INSTALL AND USE STATZttOF-THE-ART WATER -SAVING DEVICES (SECOND READING/ADOPTION) 0 C. NEW BUSINESS C-1 COUNCILMEMBER REQUEST FOR REVIEW OF CITY MASTER STREET TREE LIST AND APPLICABLE ORDINANCES C-2 REPORT ON FINANCIAL IMPACTS TO CITY BUDGET BY ADOPTION OF STATE BUDGET AND POSSIBLE FEDERAL BUDGET ACTIONS, AND RESOLUTION NO. 132-90 SUPPORTING THE REPEAL OF SB 2557 (MADDY) AND ENACTMENT OF LONG TERM LOCAL GOVERNMENT FINANCING D-1 ORDINANCE NO. 386 AMENDING TITLE 17 OF THE MORRO BAY MUNICIPAL CODE TO REQUIRE NEW DEVELOPMENT PLANS AND PROJECT LANDSCAPE PLANS TO MEET XERISCAPE LANDSCAPING STANDARDS (ZOA 04-90) INTRODUCTION/FIRST READING D-2 PUBLIC HEARING REGARDING JOINT USE OF FACILITIES WITH SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT FOR CITY RECREATION AND SPORTS PROGRAMS D-3 PUBLIC HEARING FOR APPEAL OF PLANNING COMMISSION'S APPROVAL OF VESTING TENTATIVE MAP ON WILLIAMS BROTHERS PROPERTY (PM 04-90/CDP 37-90; AL PAUL AND BEN LUNA, APPELLANTS) REQUEST FOR CONTINUANCE TO NOV. 13TH D-4 ORDINANCE NO. 385 AMENDING SECTION 13.20 OF THE MUNICIPAL CODE REVISING THE CITY'S WATER EQUIVALENCY TABLE "A" SPECIFYING AMOUNT OF WATER REQUIRED FOR VARIOUS TYPES OF USES (INTRODUCTION/FIRST READING) D-5 ORDINANCE NO. 384 AMENDING THE WATER ALLOCATION PROCEDURES TO PROVIDE SPECIAL PRIORITIES ON RESIDENTIAL BUILDING WAITING LISTS FOR CONSTRUC- TION OF CONVERSION PROJECTS NOT NEEDING ADDITIONAL WATER ALLOCATIONS (INTRODUCTION/FIRST READING) D-6 PROPERTY OWNER'S REQUEST FOR DISCUSSION OF NUMBER OF WATER EQUIVALEN- CIES AT 2170 NORTH MAIN STREET (CRAIG BELL) F211010toiLoRl21IM0 NONE COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 22, 1990 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. PRESENT: Rose Marie Sheetz John Baker John Lemons Jeff Odell Tom Wuriu ABSENT: None STAFF: Gary Napper Judy Skousen Louise Burt Ardith Davis William Farrel Don Funk Andrea Lueker Nick Nichols Steve Wolter Horace Strong gave the invocation, Allegiance. Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Finance Director City Clerk Community Dev. Dir Associate Planner Recreation Supv. Public Works Dir. Rec. & Parks Dir. and led the Pledge of Mayor Sheetz presented Steve Economon, Wastewater Treatment Plant Operator, with the Third Quarter Most Valuable Employee Award. She noted his many accomplishments during his 11-year tenure as a City employee, and gave him the City gifts presented to Most Valuable Employees. rdiPI iEt•Z&_T*7 Vd 5 I -z12 Y V 1. Mary Phillips, 2645 Ironwood, stated a filtration sys- tem on Highway 1 upstream of City wells will not do our wells any good. She said Morro Bay citizens will have better water because the State is enforcing better standards for water purity, and the Coastal Streams Project may be a pig -in -a -poke. 2. John Linhares requested he be allowed to comment on Item A-6. Mayor Sheetz stated the item is on the Consent Calen- dar and not scheduled for public discussion. She advised Mr. Linhares should make his comments at this time; Mr. Linhares sat down. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 22, 1990 PAGE 2 3. Ken Cess, Executive Director of Seashell Communities, requested he be allowed to speak on Agenda Item B-1. Mayor Sheetz stated she intends to open that item for public comment. 4. Bruce Risley stated he would like a Councilmember to pull Item A-6 so Mr. Linhares can speak. Mayor Sheetz stated Councilmember Baker has already indicated he intends to do that. 5. Ray Kaltenbach discussed the chronic water problem the City has had for years. He believes the only short-term answer is desalination; Whale Rock water is not suitable for drinking. He suggested Council buy a reverse osmosis unit rather than rent- ing one for $30,000 a month. 6. Lynda Merrill said the City Council is living in a dream world regarding water because it is depending on the State Water Project and rainfall for City water. She advocated using cheaper local resources in the form of wastewater reclamation. 1. Councilmember Wuriu requested Agenda Item D-1 regarding the Williams Brothers appeal hearing be continued to Council's next regularly -scheduled meeting. The subdivider has submitted written concurrence with the continuance. MOTION: Councilmember Wuriu moved Agenda Item D-1, Williams Brothers Tentative Map appeal hearing, be continued to November 13th. The motion was seconded by Councilmem- ber Lemons and unanimously carried. (5-0) 2. Councilmember Lemons requested an item be scheduled on a future Council meeting to discuss enacting a Waterfront morato- rium on building, and appointing a Blue Ribbon Committee to com- plete the Waterfront Specific Plan within one year. A. A-1 Mr. Napper recommended Council approve the minutes as submitted. A-2 EXPENDITURE REPORT - SEPTEMBER 1990 Mr. Napper recommended Council approve the Expenditure Report as submitted. i • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 22, 1990 PAGE 3 Mr. Napper recommended Council receive the Report for file. A-4 PROCLAMATION DECLARING NOVEMBER 1990 AS "HOSPICE MONTH" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-5 AWARD OF CONTRACT FOR PROJECT NO, PW 89-16, CENTENNIAL PARKWAY RESTROOM AND STREET -END IMPROVEMENT PROJECT (PULLED) A-6 STATUS REPORT ON GROUNDWATER WELL LEVELS Mr. Napper stated the report is for information only; no action is requested. Councilmember Baker requested Item A-6 be pulled and discussed separately. MOTION: Councilmember Wuriu moved for the approval of the Con- sent Calendar with the exception of Item A-6. The motion was seconded by Councilmember Lemons and unani- mously carried. (5-0) �__�1_ �:_ •� _:• Councilmember Baker requested a report regarding the water situa- tion from Mr. Nichols, and a response to the two public comment suggestions regarding desalinization and reclamation. Mr. Nichols stated he will discuss the staff report on the water situation; however, he is unprepared to discuss desalinization or reclamation this evening. He stated the water situation is bad; the City's groundwater resources are continuing to deteriorate and staff is doing everything it can to bring water to the citi- zens. He reviewed well levels in comparison to last year and stated all contingency emergency plans are in place and ready to operate as necessary. Mr. Nichols stated he is unable to guaran- tee continued delivery of water without the use of emergency sup- plies, and staff is monitoring the situation on a day-by-day basis. Councilmember Wuriu asked if emergency supplies can really be started at a moment's notice? Mr. Nichols stated all he has to do is flip a switch and the City will receive an additional 200 gallons of water per minute from the golf course wells. Councilmember Baker questioned the use of two reverse osmosis units. Mr. Nichols stated the City is still using both; however, one may be released because the water levels in the wells are too low to serve enough water for each unit to treat. Mr. Baker a 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 22, 1990 PAGE 4 asked if transferring one unit to Chorro Creek Basin would help the situation there? Mr. Nichols stated it would improve the water quality, but is not needed because the water presently meets State standards. John Linhares said the City has wasted $250,000 in the last 2 to 3 months on a second reverse osmosis unit. The first unit was able to pump 200 gallons per minute into the City system; the second one is only producing 70 gallons per minute and is not worth the $25,000 per month plus energy costs to keep using it. The City is paying $8,000 per acre foot for this water. He objected to the Level 5 rationing program stating people will be paying more money for less water if they over -use water, and receive nothing for their money. The people are going to get a water rate increase over all this; the City should have drilled two new brackish water wells instead. MOTION: Councilmember Baker moved for the approval of Item A-6. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) B. �:12�*)'dall 4U1:Is) �qw Z[0]�Ii�il7l:1Jo]4Z[«9D[gY0,pM4'CSjC*1 INSTALL AND USE STATE-OF-THE-ART WATER -SAVING DEVICES (SECOND READING/ADOPTION) Mr. Napper stated Council amended this ordinance at their last meeting to delete reference to "appliances" and retain the word "fixtures". If adopted this evening the ordinance will become effective November 21st. However, since the last meeting several large volume water users have complained stating their single water meters serve multiple dwellings and those units may use less water than a single family dwelling. He stated the concern has merit for those property owners who do not own the fixtures in question, such as mobilehome parks; however, multi -family buildings renting dwelling space should be required to retrofit their units. Mayor Sheetz opened the hearing to the public for comments. Don Howard, owner of E1 Morro Trailer Court, agreed with Mr. Napper. He also discussed a device he has invented which allows one to flush a toilet with less water for liquid waste, and slightly more water for solid waste. He offered the device to the City, but not to anyone else. Ken Cess, Executive Director of Seashell Communities, stated the ordinance will have a dramatic effect on his convalescent/ retirement facility. He said there is no way he can retrofit 120 toilets in the 30 days allowed, and outlined the problems he will MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 22, 1990 PAGE 5 nance be amended to allow large volume water users to submit a plan to the City addressing the ordinance and how they will com- ply. He also discussed the costs of the retrofitting and how the State budget cuts have affected his business. Rory Livingston, Assistant Superintendent (Business) of the San Luis Coastal Unified School District, stated no matter what the School District does to cut down water use, it will still be the largest water user in the City. He stated all of their toilets are Sloan valves, and their urinals use 1� gallons. He suggested since Morro Bay High School and Keiser Park are located near the Wastewater Treatment Plant, reclaimed wastewater could be used to irrigate these sites, and perhaps Del Mar Park. The reclaimed water could also be used to flush toilets. He stated the process is costly, but the City would be using existing water; it would be cheaper than Coastal Streams and desal units. Mayor Sheetz closed the hearing to the public. Mayor Sheetz said she suggested at the last meeting a survey be taken to find out who the large volume water users are; she still believes a survey should be taken. She suggested the ordinance be referred to the Water Advisory Board for their input. Councilmember Wuriu noted his earlier concern about the problems the ordinance may cause for certain types of water users and the hardships it may cause. He was in favor of contacting the large volume water users to see if there is any way for them to reduce their use. He said there is no way any of the heavy users are going to be able to accomplish retrofitting of their facilities in a 30-day period, and the ordinance should be amended to allow more time. He recognizes there is an appeal clause in the ordi- nance, but does not believe an ordinance should be adopted that is almost unenforceable as far as obtaining compliance in the required timeperiod. Councilmember Baker believes there are some single family users using more water than they should. He suggested the ordinance be returned to staff for amendment; perhaps staff and the Water Advisory Board could work with the larger volume users to see if they can come up with an alternate plan. Mr. Howard's device should also be investigated. The intent of the Ordinance is good. Councilmember Lemons agrees trailer parks should be exempt from the ordinance since the park owner does not own the fixtures in the trailers or mobilehomes. He also agreed with Mr. Cess' sug- gestion the large volume water users be given 30 days to submit a plan for completion of whatever work is necessary. The ordinance is feasible and the concerns expressed are easy to amend. He said the ordinance does not restrict the large volume users from MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 22, 1990 PAGE 6 using water, it restricts their ability to use water in a waste- ful manner. Councilmember Odell believes the appeal process is sufficient to deal with hardship cases; if the matter returns to staff, it will take another 30 days or longer to change it. There are always problems with these types of things that can be refined later. MOTION: Councilmember Baker moved the ordinance be referred to staff and/or the Water Advisory Board for further research and timing; and, investigate the device sug- gested by Don Howard. The motion was seconded by Coun- cilmember Wuriu and carried with Councilmembers Lemons and Odell voting no. (3-2) Mayor Sheetz stated since it is almost 7PM, Council will proceed to public hearing items at this time. _ _iq S._ _'._._Z Mr. Farrel reviewed the Xeriscape Ordinance which regulates land- scaping plans to minimize water use on new development through mandating low water -use plants. Since the ordinance's initiation by staff, the Planning Commission, Recreation and Parks commis- sion, and the Water Advisory Board have reviewed it resulting in the elimination of several major water saving concepts provided in the ordinance: 1) eliminates the requirement for maximum use of water -saving plants; 2) eliminates the requirement for back - flow prevention units on irrigation systems; 3) does not apply to residential development except subdivision of five or more units; and 4) the Recreation and Parks Commission requests exemptions for public -owned open space (schools, parks, golf courses). The Water Advisory Board does not support the ordinance at all. Even so, Mr. Farrel stated "xeriscape" is the landscaping of the future and adoption of the modified ordinance may bring about some water savings. Mayor Sheetz opened the public hearing to the public. Mr. Linhares said the recommendation in effect says, "Let manage- ment waste water, but let the people have the hardship". The ordinance is not fair to everyone. Mayor Sheetz closed the hearing to the public. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 22, 1990 PAGE 7 Mayor Sheetz asked who would be affected by the ordinance? Mr. Farrel said commercial, industrial mixed -use and residential development or redevelopment except for single family dwellings. Mr. Wolter commented the Recreation and Parks Commission recom- mendation for exemption of public areas is based on the need for safe playing areas for the public. Councilmember Lemons recommended Stuart McElhinney's letter to the Council as expressing objections which are on target. Since no new building permits were authorized in 1990, this ordinance would have had no effect had it been in place during this calen- dar year. If the rain situation does not improve, permits will probably not be issued next year, and saving water by adopting this ordinance is unclear. He said Council just refused to adopt an ordinance with a real potential for saving water. He is totally against this ordinance. Councilmember Wuriu agreed and stated enforcement of this ordi- nance will take a lot of time and City staff. Councilmember Odell pointed out the City Administrator's recommendation sug- gests it is pointless to go forward with this in its present form. MOTION: Councilmember Wuriu moved the matter be tabled. The motion was seconded by Councilmember Lemons and unani- mously carried. (5-0) Mr. Napper noted for audience information, Item D-3 on the Williams Brothers tentative map has been continued to November 13th. Steve Wolter reviewed a lengthy staff report summarizing negotia- tions between the School District and the City to form a Joint Powers Agreement for use of school facilities. He reviewed the School District's increase in fees for use of the pool, weight room, and gym and the impact on participants by Council action to pass -through the increase to them. He emphasized the largest increase is for use of the swimming pool and staff has raised lap swimmer rates from $1.50 to $4.25 per visit. Understandably, these users are not happy with the entire situation. He reviewed a chart illustrating the breakdown in costs for staff wages, facility rental, and overhead recovery. Alternatives to charges these rates are: 1) Allow the school dis- trict to run the drop -in program at the high school. The School District has indicated this is not feasible. 2) Operate the City program only during High School use periods and during the sum- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 22, 1990 PAGE 8 mer. This would eliminate a swimming program from October to March of each year. 3) Only charge direct costs of services by eliminating overhead charges. This would reduce the fee to $2.80 per user which still may be too high for users. 4) Reduce the hours of service. 5) Eliminate the program. Councilmember Odell asked why the overhead recovery costs are increased in direct proportion to the percentage of facility rental fees? How does staff justify the City has more overhead because the School District increased their fees? Mr. Wolter responded it is a consistent policy throughout recreational activities noting increased costs for uniforms, equipment, pro- cessing paperwork, etc. Councilmember Odell commented those costs should be limited by the number of participants; it does not justify the overhead increase. The City should establish a flat number per participant, and stated increasing our overhead costs is adding to the problem. Mr. Wolter stated it could be worked out; right now a drop -in policy exists. A program could be established similar to other classes whereby people are required to sign up ahead of time and the class is cancelled if there is not sufficient participation to pay for the class. Councilmember Odell stated he has a problem increasing our over- head just because other costs go up; it is based on a false inflation figure. Mr. Napper stated if staff charges overhead only on City labor, the cost per participant will still be $2.84. He noted it is an expensive problem as far as the facility being used [pool) and the relatively few number of users (average seven per hour). Councilmember Wuriu asked if staff is comparing fees with other jurisdictions? Mr. Wolter stated yes, County pools charge $1/adult and 500/child; Sinsheimer and Cuesta pools may be a little higher. Councilmember Wuriu recommended staff rework City overhead charges. Councilmember Lemons asked what is the difference between dis- counting high school water and paying an increased charge? Mr. Wolter said it is basically going from one account to another. It might be different with capital improvements in that the City can qualify for grants not available to the School District. Councilmember Baker stated according to the School District, the pool costs $91,000 per year to operate with $51,000 of that amount attributed to the City. If the City does not use the pool, will the costs be the same? Mr. Wolter stated if the School District closed the pool during the times the City uses it, they would have a significant decrease in costs. The major costs are water and heating which are not required if the pool is not in use. Mayor Sheetz opened the hearing to the public for comments. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 22, 1990 PAGE 9 Rory Livingston, Assistant Superintendent of San Luis Coastal Unified School District, noted due to discussions with City staff, the fee for use of the gym was dropped from $18/hour to $9/hour, and the weight room from $8.75/hour to $4/hour. He said the swimming pool charge of $14/hour is less than 50% of their direct costs and they add no overhead into the fee. It costs approximately $31/hour to operate the pool. He said in the last year the School District has used the pool 500 hours for its pro- grams, and the City has used it 2500 hours. Mr. Livingston stated the School District is also affected by the State Budget cuts. Stuart McElhinney, member of the San Luis Coastal Unified School District Board of Directors, noted Morro Bay only paid $17,000 of the $51,000 costs attributed to their use last year. He said the School District experienced a revenue drop of $3.5 million last year, and expect at least half of that again next year. Since the School District is not charging full costs to Morro Bay for use of the pool, some of the Boardmembers have asked if the School District should be subsidizing Morro Bay programs in the amount of $30,000 when those funds could be used for educational purposes. Mr. McElhinney suggested perhaps recreational use of the pool is an extravagance the City may not be able to afford. Edwin Denton, 1394 Carmel Drive and Superintendent of the San Luis Coastal Unified School District, said the School Board of Directors has given their staff direction to work with the City on this problem. He said the District will also be in contact with the City on how they can reduce their use of water. Others speaking in favor of community use of the pool and school facilities at a reduced rate were Carol Lutz, 846 Marina; Susan Wilson, 1165 Las Tunas; Norma Vaughn, 585 Kings; Roxie Tack, 403 Santa Barbara; Chuck Clarke, 2205 Nutmeg; Greg Wilson, 1165 Las Tunas; Dane Howell, 1165 Monterey; Russell Harmon, 62 llth, Cayucos; Peter Whiteman, Luzon; and Lois Barakatt, 585 Bernardo. Some people have medical problems for which swimming is therapeu- tic and recommended by their doctors. Mayor Sheetz closed the hearing to the public. Mayor Sheetz stated there are many aspects involved in this situ- ation, and she is not prepared to make a decision at this time. The City and the School District are negotiating terms of a mutual agreement, and she would like to see the results of those negotiations. In the interim, she suggested rates in effect prior to the increase be re -instituted. Councilmember Baker agreed. Mr. Napper pointed out some of the items included in overhead costs. He said to put things in perspective, the City's entire MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 22, 1990 PAGE 10 share of property taxes is $1.2 million while the Police Depart- ment budget alone is $1.4 million. He noted the tightening of budgets since the passage of Proposition 13; government is now feeling the full impact of that legislation. He said because of the low participation of the drop -in swimming program, it may be hours of operation will have to be reduced. In the interim, the General Fund will be subsidizing the program as the School Dis- trict will charge the increased rates. He asked Council to appoint two of their members to a sub -committee to work with staff during negotiations with the School District. MOTION: Councilmember Odell moved Council roll -back City recre- ation fees to their prior rate for use of school facil- ities. The motion was seconded by Councilmember Odell. Councilmember Lemons asked if there is a timeperiod when this roll -back will expire since the program is being offered at below cost? MOTION: Councilmember Odell amended his motion to state the fees be rolled -back for a 60-day period, and staff be directed to continue to work diligently with the School District to negotiate a JPA. The amendment was ac- cepted by Councilmember Baker and unanimously carried. (5-0) Council recessed from 8:35 p.m. to 8:45 p.m. Mayor Sheetz stated a sub -committee of Councilmembers to negoti- ate with the School District has to be appointed; she recommended Councilmember Baker and Councilmember Wuriu. All Councilmembers were in favor of the appointment. Council previously continued this item to November 13th. Don Funk, Associate Planner, reviewed Ordinance No. 385 which amends the Water Equivalency Table; the amendment has been approved by the Planning Commission. He said the proposal to amend the water allocation procedures is for Council information only; the Planning Commission has not completed its review of MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 22, 1990 PAGE 11 that aspect to this ordinance. Council is only considering modi- fications to Water Equivalency Table A at this time. Mr. Funk reviewed the Summary of Water Use which is an analysis of water use by building type, and establishes updated figures for use in determining how many water equivalencies will be assigned to specific uses. The analysis applies only to commer- cial uses at this time; a residential update will be conducted later. He noted the basis of determining water use has been changed from a water consumed per unit basis to a per square foot usage as a more equitable way to allocate water. There are some exceptions to this formula. Mayor Sheetz commented sweet shops and bakeries are in the same category and she believes bakeries use considerably more water than her candy store. Also, there is a category for laundromats, but not commercial laundries such as Mission Linen. Mr. Funk stated candy stores could be added separately; however, they are grouped together because their use is relatively close. Mission Linen is calculated separately. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the matter was returned to Council. Council discussed dry cleaners category and decided to add "off - site" notation to the category. If someone requests a permit for on -site dry cleaning, a category will have to be created. Mr. Funk stated the words "Square Foot Per Site" should be inserted after Churches in place of "Site". Councilmember Baker asked if a building has been used in the past for storage and ceases to operate, would an individual be able to place a light industrial use on the site? Mr. Funk stated if the water equivalencies for the use are higher than those for stor- age, he would have to obtain the additional equivalencies. MOTION: Mayor Sheetz moved the Ordinance be amended to add "Per Square Foot Site" in the Churches category; and, "off - site" after Dry Cleaning. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) Mayor Sheetz opened the hearing for comments on the amended ordinance. Harry Rodgers, 950 Morro Bay Blvd., said the ordinance penalizes commercial establishments; people using these types of facilities are not using their water at home. Mayor Sheetz closed the hearing to the public. 0 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 22, 1990 PAGE 12 MOTION: Councilmember Lemons moved Ordinance No. 385 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Napper read the Ordinance by title and number only. MOTION: Councilmember Odell moved for approval of first reading and introduction of Ordinance No. 385. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) COUNCILMEMBER LEMONS LEFT THE MEETING DUE TO ILLNESS (9:15 p.m.). D-5 ORDINANCE NO. 384 AMENDING THE WATER ALLOCATION PROCEDURES TO PROVIDE SPECIAL PRIORITIES ON BUILDING WAITING LISTS FOR CONSTRUCTION OF CONVERSION PROJECTS NOT NEEDING ADDITIONAL WATER ALLOCATIONS (INTRODUCTION/FIRST READING) Mr. Farrel stated this ordinance has been reviewed by Council previously; it was postponed for action until the revised water equivalency table was approved. Since Council approved the table this evening, it is now in order to consider this ordinance which allows for priority on the building waiting list for projects not needing additional water, and only when Council has not awarded any additional water allocations during the year. Mr. Farrel stated developers of the Alta Morro project have requested this consideration, although their specific project is not under Coun- cil review. Mayor Sheetz opened the hearing to the public; there were no com- ments and the hearing was closed. Councilmember Baker said he is philosophically opposed to the ordinance at this time. He believes the public will perceive the construction of a project, even if it is not using additional water, as using additional water while they (the citizens) are on very tight water restrictions. MOTION: Councilmember Baker moved this item be .deferred until after the rainy season. The motion was seconded by Councilmember Wuriu. Councilmember Odell does not believe putting this item off will gain anything; the ordinance does not create additional water usage. Mayor Sheetz said it will give the building industry an opportunity to continue working and keep the economy of the City moving. If Council enacts Level 5 water rationing measures, pro- jects will not be allowed to go forward. SUBSTITUTE Councilmember Odell moved Ordinance No. 384 be MOTION: read by title and number only. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 22, 1990 PAGE 13 Mr. Napper read Ordinance No. 384 by title and number only. MOTION: Councilmember Odell moved for introduction and approval of the first reading of Ordinance No. 384. The motion was seconded by Mayor Sheetz and failed on the follow- ing vote: AYES: Odell, Sheetz NOES: Baker, Wuriu MOTION: Councilmember Baker moved this ordinance be put off until the City's wells are in a condition so that the City can issue building permits without having everyone worry they will be on rationing forever. SUBSTITUTE Mayor Sheetz offered a substitute motion that MOTION: Council direct this item be continued until such point and time as there is sufficient water to justify the issuance of a building permit. The motion was seconded by Councilmember Wuriu and carried with Councilmember Odell voting no. (4-1) D-6 PROPERTY OWNER'S REQUEST FOR DISCUSSION OF NUMBER OF WATER EQUIVALENCIES AT 2170 NORTH MAIN STREET (CRAIG BELL) Craig Bell, owner of property at 2170 N. Main Street, stated he presented Council with a packet of information on this subject two weeks ago. He urged Council to tell the Community Develop- ment Department to honor its word of 2.65 water equivalencies for the property as outlined in the letters from that Department. He acted in good faith by entering into a business contract based on information from the City; the City has placed him in a precari- ous legal position. He said he has had the property surveyed and plans drawn to submit to the Planning Department for approval, spending a considerable amount of money already. Councilmember Wuriu asked Mr. Bell when he purchased the prop- erty, and did he buy the property based on a higher number of equivalencies? Mr. Bell stated he bought the property in 1986. At that time the subject of water equivalencies was not a prob- lem, but he was led to believe there was a considerable number of water equivalencies attached to the property. Councilmember Wuriu asked Mr. Bell if he knew the fish processing use was an illegal use? Mr. Bell said not until Mr. Farrel told him during the first part of October 1990. Mayor Sheetz commented the fact of Mr. DeGarimore's problems with the illegal use at that site were well published in the newspaper during Planning Commission and City Council hearings to revoke the permit. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 22, 1990 PAGE 14 Mr. Bell stated he is not asking for nine water equivalencies; only the 2.65 as determined by the Planning Department. Councilmember Odell asked if the 2.65 figure was arrived at by averaging including the fish processing use? Mr. Funk stated his first estimate on the property was 1.65 water equivalencies which came from averaging the water use at this site for the last seven years, two of the years included the use by the fish processing plant. The second figure (2.65) was his second average after Mr. Bell informed him the water use when Central Coast Seafood was operating was higher; he then analyzed the last ten years of water use to arrive at 2.65. He noted all his letters on this subject state the figures are estimates only and subject to change. Mr. Funk then looked further in the file and discovered the water use during the time Central Coast Seafood was operating was for an illegal use not in conformance with the Conditional Use Permit approved for the site which was cold storage and office space. Mr. Farrel stated staffs discussions with Mr. Bell were in an attempt to help him; when he first received the revised 2.65 water equivalency determination, Mr. Bell was not happy with that either in comparison to DeGarimore's seafood processing water use. Staff has not given or committed to anything. Mr. Bell indicated he plans to join the property at 2170 Main Street with adjacent property and spread the water equivalencies over the two parcels with improvement development. Councilmember Baker stated Mr. Bell was led astray by Mr. DeGarimore, and the City did essentially tell him in one letter there were 2.65 water equivalencies for the site. The City does too many things to discourage business. Mr. Bell has been searching for a tenant for his property for some time, and Coun- cilmember Baker believes he should be awarded the 2.65 water equivalencies. Ms. Skousen stated it may be beyond the Council's authority to grant water equivalencies where none exist. In order to allow the equivalencies, Council would have to find Mr. DeGarimore was not in violation of his CUP. She stated even if staff made a mistake in determining water equivalencies (which is not the case since the letter contained qualifying language), the law does not hold the City liable for an employee's mistake during the exer- cise of his duties. Councilmember Odell noted the City and City Council are bound by the law, not by employee mistakes. Mr. Farrel stated actual water equivalencies are determined when a building permit is pulled. He is making recommendations in the ordinance amending water allocation procedures that staff not respond to requests for water equivalency estimates. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 22, 1990 PAGE 15 Mayor Sheetz informed Mr. Bell Council is not able to honor his request. Mr. Bell asked how many water equivalencies he has? Mr. Funk said that answer will depend on when he pulls a permit; first reading of the ordinance amending the water equivalency table was this evening. If Mr. Bell's permit is pulled after the ordinance is effective (November 21, 1990) that table will deter- mine the water equivalencies. Mr. Farrel stated it is a fraction of a percentage because of the historic use of the site which is cold storage. Mr. Funk pointed out Mr. Bell can earn additional water equivalencies through the retrofit program when Council reinstates that program. Mayor Sheetz suggested Mr. Bell get tenants into the vacant building. Mr. Bell responded he is lim- ited on that option by the City's parking standards. No action was taken on this item. C-1 COUNCILMEMBER REQUEST FOR REVIEW OF CITY MASTER STREET TREE LIST AND APPLICABLE ORDINANCES MOTION: Councilmember Wuriu moved this item be continued to the next meeting. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) MOTION: Councilmember Odell moved for adoption of Resolution No. 132-90. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) E. CLOSED SESSION None F. MOTION: Councilmember Odell moved The motion was seconded unanimously carried. (5-0) The meeting adjourned at 9:55 p.m. Recorded by: ARDITH DAVIS City Clerk the meeting be adjourned. by Councilmember Baker and 0 171 NOT = C E O F S P EC = AL MEET = NG NOTICE IS HEREBY GIVEN that a Special Meeting of the Morro Bay City Council is hereby called to be held on Thursday, October 11, 1990 at 8:30 a.m. in the City Hall Conference Room, 595 Harbor St., Morro Bay, CA. Said Special Meeting shall be for the purpose of holding a Closed Session in accordance with Government Code Section 54957.6(a), labor relations. DATED: October 10, 1990 City of Morro Bay, California 0 MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - OCTOBER 11, 1990 CITY HALL CONFERENCE ROOM - 8:30 A.M. Mayor Sheetz called the meeting to order at 8:30 a.m. PRESENT: Rose Marie Sheetz John Baker John Lemons Jeff Odell Tom Wuriu ABSENT: STAFF: PUBLIC COMMENT None None Gary Napper Judy Skousen Forrest Henderson E. CLOSED SESSION Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Asst. City Admin Mayor Sheetz stated the meeting will adjourn to Closed Session in accordance with Government Code Section 54957.6(a), labor relations. MOTION: Councilmember Wuriu moved the meeting adjourn to Closed Session. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) The meeting adjourned to Closed Session at 8:30 a.m. and returned to regular session at 9:55 a.m. 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 9:55 a.m. Recorded by: GARY NAPP•ER Deputy City eeww 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 - OCTOBER 08, 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 at this time. 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 (CITY COUNCIL) 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 SEPTEMBER 24, 1990 A-2 RESOLUTION NO. 126-90 AWARDING CONTRACT FOR PROJECT PW 90-05, FERROUS CHLORIDE FEED SYSTEM FOR HYDROGEN SULFIDE CONTROL IN SEWERAGE COLLEC- TION SYSTEM A-3 REJECTION OF LIABILITY CLAIM AGAINST CITY (KLEPPER) A-4 NOTICE OF COMPLETION ON PROJECT PW 90-02, ANNUAL STREET STRIPING PROGRAM A-5 RESOLUTION NO. 125-90 APPROVING RIGHT-OF-WAY CERTIFICATION FOR FAU TRAFFIC CONTROL SIGNAL PROJECT AT MAIN STREET AND QUINTANA ROAD A-6 STATUS REPORT ON GROUND WATER WELL LEVELS A-7 RESOLUTION NO. 127-90 ACCEPTING SETTLEMENT OF THE WORKERS' COMPENSATION CLAIM IN BRYN V. CITY OF MORRO BAY, AND RESOLUTION NO. 128-90 DETERMINING THE INDUSTRIAL DISABILITY OF'LOCAL SAFETY MEMBER, ROBERT BRYN B. UNFINISHED BUSINESS NONE 1 C. NEW BUSINESS C-1 RESOLUTION NO. 129-90 APPROVING MEMORANDUM OF AGREEMENT FOR PREPARA- TION OF CITY AND COUNTY SOURCE REDUCTION AND RECYCLING ELEMENTS AND COUNTY INTEGRATED WASTE MANAGEMENT PLAN C-2 RESOLUTION NO. 124-90 AUTHORIZING ACCEPTANCE OF $5 MILLION LOW - INTEREST LOAN FROM DEPARTMENT OF WATER RESOURCES FOR CONSTRUCTION OF WATER TREATMENT PLANT C-3 COUNCILMEMBER REQUEST TO DISCUSS POSSIBLE HARBOR ADVISORY BOARD PURVIEW OF STATE TIDELANDS LEASES D-1 REQUEST BY CITIZEN (MARY PHILLIPS) TO DISCUSS VARIOUS SUBJECTS RELAT- ING TO GARBAGE SERVICES AND FEES, LANDFILLS, AND RECYCLING PROGRAMS D-2 RESOLUTION NO. 130-90 DECLARING SUPPORT FOR THE DESIGNATION OF THE CENTRAL COAST (POINT SAL TO RAGGED POINT) AS A NATIONAL MARINE SANCTUARY D-3 ORDINANCE NO. 380 ADDING CHAPTER 9.26, SECTIONS 9.26.101 THROUGH 9.26.120 TO THE MORRO BAY MUNICIPAL CODE RELATING TO MASSAGE ESTAB- LISHMENTS AND AMENDING THE MASTER FEE SCHEDULE TO INCLUDE MASSAGE ESTABLISHMENT AND MASSAGE TECHNICIAN APPLICATION FEES (PULLED) D-4 ORDINANCE AMENDING SECTION 13.04.270 OF THE MORRO BAY MUNICIPAL CODE TO REQUIRE LARGE -VOLUME WATER USERS TO INSTALL AND USE STATE -OF -THE ART WATER -SAVING DEVICES E. CLOSED SESSION NONE 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 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 8, 1990 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. Mayor Sheetz gave the invocation, and Councilmember Baker led the Pledge of Allegiance. ROLL CALL PRESENT: Rose Marie Sheetz John Baker John Lemons Jeff Odell Tom Wuriu STAFF: Gary Napper Judy Skousen Rick Algert Ardith Davis Forrest Henderson Nick Nichols Mike Upton Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Harbor Director City Clerk Asst. City Admin. Public Works Dir. Administrative Asst. 1. Ernie Miller, 955 Napa, stated the water rate schedule is unfair and needs to be restructured. Because he has a 2" meter on his 3-unit building, he is paying a much higher rate for water than other multi -units on a 5/8" meter. Mayor Sheetz said she would have the Finance Director check into the matter. ��3�L��h`;f:V_� t•] � L•] a■ SLY IL1;�Mf:S�:1�1Js� � Y��i 1. Councilmember Wuriu requested a item be scheduled for a future agenda regarding the Sign Ordinance and the restrictions for using temporary directional signs, such as those used by the real estate industry. A. CONSENT CALE 4.1!_ •1�1:L�}fJwM4:L�4_ Y•]- Y.IJ. �Lr1J�►:1;� l�l �l�tL�I•] � Y�w!]AA 1990 Mr. Napper recommended Council approve the minutes as submitted. A-2 RESOLUTION NO, 126-90 AWARDING CONTRACT FOR PROJECT PW 90- 05, FERROUS CHLORIDE FEED SYSTEM FOR HYDROGEN CQN- • •. - :• Mr. Napper recommended Council adopt Resolution No. 126-90. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 8, 1990 PAGE 2 A-3 REJECTION OF LIABILITY CLAIM AGAINST CITY (KLEPPER) Mr. Napper recommended Council deny the claim and authorize the City Clerk to send the rejection notice. A-4 NOTICE OF COMPLETION ON PROJECT PW 90-02 ANNUAL STREET STRIPING PROGRAM Mr. Napper recommended Council accept the project as complete and authorize the City Clerk to sign and file the Notice of Completion. A-5 RESOLUTION NO 125-90 APPROVING RIGHT-OF-WAY CERTIFICATION FOR FAU TRAFFIC CONTROL SIGNAL PROJECT AT MAIN STREET AND QUINTANA ROAD Mr. Napper recommended Council adopt Resolution No. 125-90. A-6 STATUS REPORT ON GROUND WATER WELL LEVELS No recommendation; information report only. A-7 RESOLUTION NO 127-90 ACCEPTING SETTLEMENT OF THE WORKERS' COMPENSATION CLAIM IN BRYN V. CITY OF MORRO BAY AND RESOLU- TION NO 128-90 DETERMINING THE INDUSTRIAL DISABILITY OF LOCAL SAFETY MEMBER ROBERT BRYN Mr. Napper recommended Council adopt Resolutions No. 127-90 and 128-90. Councilmember Odell offered typographical corrections to the min- utes on pages 11 and 15. Mayor Sheetz stated she will abstain from approval of the minutes since she was not at the last meeting. MOTION: Councilmember Wuriu moved for the approval of Item A-1 as corrected. The motion was seconded by Councilmember Baker and carried with Mayor Sheetz abstaining. (4-0-1) MOTION: Councilmember Baker moved for approval of the remaining Consent Calendar. The motion was seconded by Coun- cilmember Odell and unanimously carried. (5-0) B. UNFINISHED BUSINESS NONE MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 8, 1990 PAGE 3 C. NEW BUSINESS C-1 RESOLUTION NO 129-90 APPROVING MEMORANDUM OF AGREEMENT FOR PREPARATION OF CITY AND COUNTY SOURCE REDUCTION AND RECY- CLINr ELEMENTS AND COUNTY INTEGRATED WASTE MANAGEMENT PLAN Councilmember Odell stepped down from consideration of this mat- ter due to a conflict of interest. Mike Upton, Administrative Assistant, stated Council previously agreed to a regional effort to comply with State mandates imposed by AB 939. The Agreement before Council is between the County and the cities in the County to prepare a Source Reduction and Recycling Element and County Integrated Waste Management Plan. He reviewed activities leading up to the Memorandum of Agreement (MOA). He recommended Council adopt Resolution No. 129-90. MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 129-90. The motion was seconded by Coun- cilmember Baker and carried with Councilmember Odell abstaining. (4-0-1) Councilmember Odell returned to the Council dais. C-2 RESOLUTION NO. 124-90 AUTHORIZING ACCEPTANCE OF $5 MILLION LOW -INTEREST LOAN FROM DEPARTMENT OF WATER RESOURCES FOR CONSTRUCTION OF WATER TREATMENT PLANT Mr. Nichols stated the City is in receipt of a loan offer from the State Department of Water Resources (DWR) under the California Safe Drinking Water Bond Law of 1986. The amount of the loan is $5 million at 3.41% interest and repayment period of 25 years. The loan would be paid back by water fund revenues. He described the water treatment plant for which the City pro- poses to use the funds. Councilmember Wuriu asked when will the City be required to raise water rates by 30% to pay for the loan? Mr. Nichols stated when- ever it is necessary to start paying back the loan; he stated the City must budget funds in the next fiscal budget for the 10% set - aside. Council asked several questions concerning the loan agreement to which Mr. Napper and Mr. Nichols responded. Councilmember Lemons was concerned the DWR letter accompanying the agreement indicates the loan will be paid through an assessment district. Mr. Nichols stated he has informed the State the City will be paying the loan through water revenues, and they have no objection; the Resolution also states how the loan will be repaid. Councilmem- ber Lemons suggested the State be notified in writing along with Council's approval of the Agreement how the City intends to repay MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 8, 1990 PAGE 4 the loan so there will be no misunderstanding or requirement to form a Citywide assessment district. MOTION: Councilmember Odell moved for adoption of Resolution No. 124-90 on condition staff write to the Department of Water Resources stating the City desires to fund the loan through the Water Fund and not an assessment dis- trict,and requesting approval of same. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) C-3 COUNCILMEMBER REQUEST TO DISCUSS POSSIBLE HARBOR ADVISORY BOARD PURVIEW OF STATE TIDELANDS LEASES Councilmember Odell stated he asked for this item to be consid- ered by Council due to the number of leases which default on lease provisions. Normally, Council receives this information in Closed Session several months after the situation exists and the City is legally trying to get the lessee to come into compliance. He said he discussed the situation with some people and came to the conclusion that instead of Council hearing about an issue after -the -fact, it might be a better incentive for the lessee to comply if the terms of the lease were regularly discussed in pub- lic meetings. Councilmember Odell stated according to the Munic- ipal Code map, the Harbor Advisory Board's jurisdiction does include Tidelands leases, and they need to know if the lessee is performing to contract. He believes the public's interest and right -to -know regarding these leases should be protected. Councilmember Wuriu was concerned this might give the Harbor Advisory Board more authority than Council wants them to have. Councilmember Odell stated the harbor is a specialized area and the Harbor Advisory Board are selected based on their knowledge of this area. They can stay on top of issues concerning lessees, whereas the City Council does not find out about them for some- time after there is a problem. Perhaps the knowledge lease defaults will be discussed at monthly meetings may be an incen- tive to a lessee to stay in compliance. Councilmember Lemons stated he has a problem with giving respon- sibilities of this nature to a volunteer board. The Harbor Director is the individual with the responsibility for keeping the Council informed. He believes the Harbor Advisory Board should be consulted as to what kind of provisions should be in leases generally, but not involved in leases specifically. Mayor Sheetz said the City Council is the landlord; if there is problem, the Harbor Director should notify the Council. Since this Board was reorganized, things have been running smoothly. Councilmember Odell stated the Harbor is the City's highest lia- bility. The Council is not the landlord, the State of California MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 8, 1990 PAGE 5 island the City is trustee. He stated he sometimes has a problem with having to deal with lease defaults because it is behind closed doors. The Tidelands are public lands similar to a national park, and he does not agree with the ethics of handling these items in Closed Session Mayor Sheetz commented the protraction of lease defaults may have been the fault of Council, and we may need the push. Councilmem- ber Baker noted the "buck" stops with the City Council. No action was taken on this item. D. PUBLIC HEARINGS, REPORTS & APPEARANCES D-1 REQUEST BY CITIZEN (MARY PHILLIPS) TO DISCUSS VARIOUS SUB- JECTS RELATING TO GARBAGE SERVICES AND FEES. LANDFILLS, AND RECYCLING PROGRAMS Councilmember Odell stepped down on this item due to a possible conflict of interest. Ms. Phillips said she just found out Council does not have the April 1990 Board minutes, and she just received a draft of them. There was no meeting in February; in April there was a meeting. At that time she gave out what she had requested and could not be refused because her name was mentioned on the decision that Judy gave, which incidentally was on a different code than she gave at the time that she had found two of them showing that in this Country you do not have pay for what you do not get service for. Mayor Sheetz expressed confusion at Ms. Phillips statements. Ms. Phillips said what she is trying to say is that the City has a Garbage Franchise Board that care nothing for the people what- soever. She has sat in year after year. She has taken a public stand by refusing to pay for a service that was never rendered to her, that she never used, not even when they had the yearly free service. She is taking a stand to prove to people that in America you just pay for what you use, what you create. She said the City was told by the State 13 years ago to stop filling our landfills. The Garbage Franchise Board and the City Council, because of its careless attitude, have allowed the people to be put in jeopardy of closing two landfills. The Turri landfill and the one Cattaneo bought and again, without putting out to bid, we could have gone with Gibbs and Atascadero and we would have had a landfill that still has a 100 years use in it. But because it's easier to just go along with the flow, Cattaneo now has a garbage landfill that has to be closed and we are having to pay the same amount as those who have been using it over the years, and a greater amount than they were paying over the years. Ms. Phillips advocated the $1/bag program to encourage people to recycle. She said when they put in one garbage pail and six MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 8, 1990 PAGE 6 garbage pails, they did it because the bins have six barrels to it, and the apartments were one bin with the six barrels and pay- ing less than the six barrels at 6 residential places. She said Council turns things over to a committee and then does nothing about it. She said Council is supposed to be making things eas- ier for the people, not the businessman out to make money. She found out today she will not have a conflict of interest at any time should the occasion arise. She said she is being charged for six barrels because she did not sign up for the one barrel. She stated Tom Martin is putting the City in jeopardy in the newspaper; he's trying to make it look like the City is the one going to pay the expense; no way. She said all she wants from Council is "you're out" in writing to Cattaneo, and then we'll see where we go from there because she is going to get him for open face harassment. She said she read before Mike Upton read about AB 939, and it isn't saying the City can do one thing, the County can do another. Ms. Phillips spoke at length on garbage and stated she is fight- ing for the City of Morro Bay and for the seniors who do not use and create a lot of garbage. They eat most of their meals out. She encouraged the Mayor to reduce the garbage rates to $1/bag stating the garbage company is making money on their recyclables. She said she wants Cattaneo to take her to small claims court and try to prove he has rendered a service. The other bill she never got a legal opinion on was Government Code 54346(b). She said she is trying to keep the City from being sued, and Council has told him but he doesn't believe it, nor does Mr. Upton believe; he is still going to try to make the City put a lien on property for unpaid bills. She said she is reminded of Hilter's Germany. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed to the public. Councilmember Baker asked if there is a reason why the City has not established the $1/bag operation in Morro Bay? Mr. Upton stated Council discussed this subject at their last meeting. The City's Solid Waste Management Board recommended Morro Bay wait to initiate the program until after San Luis Obispo has the results of their six-month pilot project. Tom Martin of Morro Bay Garbage Service informed him there will have to be a monthly ser- vice charge on the $1/bags. Additionally, there are concerns regarding the inconvenience of the service, health hazards with animals damaging the bags, and the bags put additional non - biodegradable sacks in the landfill. The object of San Luis Obispo's program is to reduce the waste to the landfill, but recent figures show their tonnage going to the landfill is the same despite our efforts. Councilmember Baker asked if it is true the Chicago Grade Land- fill has 100 years left on its life, and asked if there was any way for the City to use it? Mr. Upon stated he has heard the 100 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER S, 1990 PAGE 7 year figure. He indicated it is very costly for the trucks to transport solid waste to the Chicago landfill site over Cuesta Grade or Highway 41. Councilmember Wuriu stated it seems like when solutions get to the City Council, they have generally been proposed by the garbage company and there seems to be very little leeway as far as the Council is concerned for approval. He asked if there is any way the Council could be more involved in modifications that might make the system work better? Mr. Nichols explained the Council's Solid Waste Management Board (SWMB) is doing a thorough job of studying the alternatives and making recommendations to Council based on facts. The items could be presented to Council first, or Council could review SWMB minutes. He said the staff report also discussed the alterna- tives discussed by the SWMB. Mayor Sheetz stated before mandatory garbage service was in effect, there were numerous complaints about service; things have been quiet since mandatory service was enacted. Councilmember Wuriu asked if the SWMB ever objects to the garbage company's proposal? Mr. Upton stated the Board makes the garbage service justify every increase requested, and noted they had reduced the initial 10.44% increase down to 5%. Councilmember Lemons stated mandatory garbage service has been a total benefit to the City, one of the best things the City ever did. Ms. Phillips stated the six -barrel charge makes the garbage com- pany look good, but how many people actually use all six barrels? She believes if Council could see how many people only use two or three barrels, they would see how the City is being manipulated. Rates should be volume -based. There was no action on this item. Councilmember Odell returned to his seat. Rick Algert stated in 1972 the National Marine Sanctuary Act was established designating certain sensitive marine habitats as national marine sanctuaries. The U.S. Department of Commerce will begin receiving new nominations in 1991, and the County of San Luis Obispo will prepare a nomination packet for the Central Coast area. They have contacted local agencies with the request they adopt resolutions in support of this nomination. Acceptance MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 8, 1990 PAGE 8 into the program means a management plan would be developed for the marine sanctuary which would add protection to the Central Coast's valuable resources. Mr. Algert noted there is some con- cern the designation of this area as a National Marine Sanctuary may preempt some local control; however, with close monitoring of the development plan we can ensure local input into the final document. Richard Murphy, San Luis Obispo County Planning and Building Department, Energy Division, described the areas affected on a map and indicated where current oil leases are situated with respect to the marine sanctuary. He encouraged Council to adopt the Resolution supporting this matter. Existing oil and gas lease sites would be grandfathered in. Council discussed the possible loss of local control if the area attains the National designation. Councilmember Lemons commented the City can be assured of input into the process, but not adop- tion of our input. He asked if there is a potential for the fishing industry to be hurt by this designation? Mr. Algert stated he hoped not; staff is using Monterey Bay as a model of what to look at. Councilmember Odell said the fishing industry believes this will protect their interests as well. He noted the Central Coast is the "hot spot" for the Federal Government. Councilmember Baker asked if it is possible to have a sanctuary and still have oil development offshore? Mr. Murphy responded yes. Councilmember Baker indicated this is not a cure-all. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. MOTION: Councilmember Wuriu moved for adoption of Resolution No. 130-90. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) D-3 ORDINANCE NO. 380 ADDING CHAPTER 9.26, SECTIONS 9.26.101 THROUGH 9.26.120 TO THE MORRO BAY MUNICIPAL CODE RELATING TO MASSAGE ESTABLISHMENTS AND AMENDING THE MASTER FEE SCHEDULE TO INCLUDE MASSAGE ESTABLISHMENT AND MASSAGE TECHNICIAN APPLICATION FEES (PULLED) D-4 ORDINANCE NO. 383 AMENDING SECTION 13.04.270 OF THE MORRO BAY MUNICIPAL CODE TO REQUIRE LARGE -VOLUME WATER USERS TO INSTALL AND USE STATE -OF -THE ART WATER -SAVING DEVICES Mr. Napper stated this Ordinance was first presented to Council in July of this year; it failed on first reading (2-2). Coun- cilmember Baker, who was absent from that meeting, has requested the matter be reconsidered. The Ordinance would require large volume water users, using 4,000 cubic feet or more of water per month, to install state-of-the-art water -saving devices. The City would identify those who use more than the 4,000 cubic feet MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 8, 1990 PAGE 9 of water per month and notice them to install water -saving devices within 30 days. Councilmember Lemons stated this Ordinance will give the City the opportunity to look at high volume water users and determine if they are using water in a wasteful manner. Councilmember Odell questioned the meaning of "appliance" as used in the Ordinance? Ms. Skousen stated anything that uses water would be included such as fixtures at car washes, laundromat washing machines, and dishwashers in restaurants. Councilmember Odell stated there is considerable difference in the financial impact of installing 1.5 gallon toilets versus installing a state-of-the-art recycling system in a car wash. He also did not believe the 30 day timeperiod to install the systems is enough time. Ms. Skousen stated there is room for negotiations, and the water user can appeal the building official's decision. There was discussion regarding the burden this requirement may put on certain businesses, and the determination of what is and is not state-of-the-art water saving devices. Councilmember Baker commented the ordinance does not say a user has to save a specified amount of water. Ms. Skousen stated the idea of the ordinance is a consumer can use as much water as he needs; he just cannot waste water. Councilmember Wuriu said a personal hardship clause should be included in the ordinance to allow Council to grant exceptions. Ms. Skousen stated the appeal procedures allow Council to waive the requirements. Mayor Sheetz opened the hearing to the public for comments. Charles Long, 3420 Main Street, asked how many consumers use over 40 units of water per month? Councilmember Lemons said approxi- mately 100. Dan Reddell commented on Council's past actions for the community to conserve water, and said it is time to stop the large volume water users from wasting water. What is the resistance to that? Mr. Crimshaw, Orcas Street, said Council should allow five years rather than three years to amortize water saving equipment previ- ously installed. Jeff Solenberger, General Manager of The Inn at Morro Bay, said motels and hotels are going to be impacted by this ordinance. He said he will have to spend $4,800 to install 1.5 gallon toilets which will not save additional water. His gardener tells him he could save water by irrigating three days a week for two to three hours each, rather than watering on just one day. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 8, 1990 PAGE 10 Mayor Sheetz closed the hearing to the public. Councilmember Wuriu stated he favored the ordinance if a hardship clause can be included. Councilmember Odell would like the word "appliance" stricken from the ordinance and considered as a sepa- rate issue. MOTION: Councilmember Odell moved the Ordinance be adopted with an amendment to eliminate the word "appliances" and deal with it as a separate matter; the Ordinance would apply to "toilets, showerheads, faucets, and irrigation systems". Councilmember Lemons suggested the three years be changed to five years to coincide with current federal depreciation rules. He also believed the word "fixtures" is sufficient for describing the devices. Mayor Sheetz asked if the High School's use of water had been discussed at meetings between the City and the School District? Mr. Napper said it was brought up, but not discussed in detail. Councilmember Lemons said he is not only concerned about the School District, but also about the City's use of water. Mayor Sheetz asked how the City determines the state-of-the-art water saving devices? Mr. Napper said the State Department of Housing and Community Development specifies the devices; for example, toilets are set at 1.6 gallons. Councilmember Odell asked how plumber to hire should the City saving devices and place a lien Mr. Napper stated possibly by Proposals. the City will determine what be forced to install the water on the property for the costs? advertising for a Request for Dan Reddell suggested Council allow people in line for water to retrofit the high water users, and bank the equivalencies for when the City begins awarding water again. Ms. Skousen stated that should be considered when Council is discussing water allo- cation procedures. Mr. Napper commented the City does not cur- rently allow people to pre -earn water equivalencies. Mr. Napper stated while waiting for the ordinance to become effective, staff will identify the consumers using over 40 units of water per month and send a letter to them advising of the new requirements. Mayor Sheetz stated the amendments to the ordinance include changing three years to five years in Section 13.04.270 D.2.; and eliminating the word "appliance" and throughout the ordinance. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 8, 1990 PAGE 11 Councilmember Wuriu asked for assurance hardships will be consid- ered. Ms. Skousen stated she cannot assure they will be consid- ered, but she assured Council they may be considered. Mayor Sheetz opened the hearing to the public for comments on the amended ordinance; there were no comments and the hearing was closed. MOTION: Councilmember Odell moved Ordinance No. 383 be read by title and number only. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mr. Napper read Ordinance No. 383 by title and number only. MOTION: Councilmember Odell moved for approval of introduction and first reading of Ordinance No. 383 as amended. The motion was seconded by Councilmember Lemons and unani- mously carried. (5-0) E. CLOSED SESSION None F. ADJOURNMENT MOTION: Councilmember Odell moved the meeting be adjourned. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) The meeting adjourned at t 8:47 p.m. Recorded �by: ARDITH DAVIS City Clerk AM ate, / ffo 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 - SEPTEMBER 24, 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 at this time. 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 (CITY COUNCIL) 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 SEPTEMBER 10, 1990 A-2 STATEMENT OF INVESTMENTS - AUGUST 1990 A-3 EXPENDITURE REPORT - AUGUST 1990 A-4 PROCLAMATION DECLARING THE WEEK OF OCTOBER 21-28, 1990 AS "RED RIBBON WEEK"FIGHT AGAINST DRUGS A-5 AWARD OF CONTRACT FOR PROJECT PW 89-09, REPLACEMENT OF SIDEWALK AND STREET TREES IN DOWNTOWN AREA AND REPAIR OF 100 FOOT PORTION OF BEACHCOMBER DRIVE A-6 PROCLAMATION DECLARING OCTOBER 7, 1990 AS "HANDS ACROSS OUR BEACHES DAY" A-7 RESOLUTION NO. 122-90 ACCEPTING GRANT MONIES FROM STATE COASTAL CONSERVANCY FOR FUNDING OF CENTENNIAL PARKWAY RESTROOM PROJECT AND RECREATIONAL PHASE OF TIDELANDS PARK A-8 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (GILLMAN) A-9 RESOLUTION NO. 118-90 ACCEPTING OFFER OF DEDICATION OF STREET RIGHT- OF-WAY, PINEY WAY AT SOUTH STREET (CUP 01-90/MB 89-454) (PULLED) 1 • 0 A-10 RESOLUTION NO. 121-90 COMMENDING AND THANKING CHUCK LOWMAN FOR SIX YEARS OF SERVICE TO THE CITY UPON RETIREMENT B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 379 ADDING CHAPTER 9.27, SECTIONS 9.27.010 THROUGH 9.27.050 TO THE MORRO BAY MUNICIPAL CODE RELATING TO SECOND RESPONSE RECOVER CHARGES FOR POLICE SERVICES (SECOND READING/ADOPTION) B-2 ORDINANCE NO. 381 AMENDING LEVEL 4 CRITICAL WATER SUPPLY CONDITIONS TO PERMIT COMMERCIAL CAR WASH EXEMPTION (SECOND READING/ADOPTION) B-3 ORDINANCE NO. 382 AMENDING THE NORTH MAIN STREET SPECIFIC PLAN (LCP/GP/ZOA 01-86A) SECOND READING/ADOPTION B-4 PROGRESS REPORT CONCERNING DISCUSSIONS WITH SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT FOR JOINT POWERS AGREEMENT REGARDING EXCHANGE OR REDUCTION IN FACILITY USE FEES AND SERVICES B-5 STATUS REPORT CONCERNING GROUNDWATER WELL LEVELS C. NEW BUSINESS C-1 SELECTION OF VOTING DELEGATE AND ALTERNATE DELEGATE TO REPRESENT CITY AT ANNUAL CONFERENCE OF THE LEAGUE OF CALIFORNIA CITIES C-2 RESOLUTION NO. 115-90 APPROVING ASSIGNMENT AND ASSUMPTION OF LEASE SITE 62/62W (551 EMBARCADERO) FROM BRUCE AND KATHY LEWIS TO QASI, INC., A CALIFORNIA CORPORATION, AND AMENDMENT OF AGREEMENT REGARDING USES AND HOURS OF OPERATION C-3 RESOLUTION NO. 119-90 APPROVING SUBLEASE FOR A PORTION OF LEASE SITE 91-92W (DBA GALLEY RESTAURANT) TO M/M KNOX FOR OPERATION OF A MARINE NOVELTY GIFT SHOP, AND MINOR REVISION TO PERMITTED USES C-4 RESOLUTION NO. 120-90 APPROVING SUBLEASE FOR A PORTION OF LEASE SITE 93-95W (DBA HARBOR CENTER) TO RAY KNOX FOR OPERATION OF "BY THE BAY" GIFT SHOP C-5 RESOLUTION NO. 114-90 AUTHORIZING LOAN APPLICATION TO THE CALIFORNIA DEPARTMENT OF BOATING AND WATERWAYS FOR RECONSTRUCTION OF SOUTH T-PIER C-6 APPOINTMENT OF COUNCILMEMBER AND STAFF PERSON TO SERVE ON A CITY/ COUNTY PARTICIPATION GROUP IN THE COUNTY'S PREPARATION OF A COMPREHEN- SIVE DEVELOPMENT IMPACT FEE STUDY C-7 SUPPORT OF PROPOSITION 149 (CALIFORNIA PARK, RECREATION, AND WILDLIFE ENHANCEMENT ACT OF 1990), FUNDING MECHANISM FOR IMPLEMENTATION OF AB 145 E D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 ORDINANCE NO. 378 ADDING CHAPTER 9.26, SECTIONS 9.26.010 THROUGH 9.26.120 TO THE MORRO BAY MUNICIPAL CODE RELATING TO DETRIMENTAL NOISE LEVELS; AND REPEALING CHAPTER 9.28, PROHIBITED CONDUCT (PULLED) D-2 RESOLUTION NO. 116-90 AUTHORIZING CITY APPLICATION FOR URBAN MASS TRANSPORTATION ACT (UMTA) SECTION 18 CAPITAL PROJECT FUNDS FOR IMPROVEMENTS TO DIAL -A -RIDE OFFICE AND WORK STATIONS D-3 CONSIDERATION OF MORRO BAY GARBAGE SERVICE'S REQUEST TO INCREASE REFUSE COLLECTION RATES DUE TO INCREASED LANDFILL CHARGES (TIPPING FEES/AB 939 MANDATE) D-4 REQUEST BY CITIZEN (NELSON SULLIVAN) TO DISCUSS THE BALLOT INITIATIVE DOCUMENT TREATMENT BY THE CITY ATTORNEY D-5 REQUEST BY CITIZEN (MARY PHILLIPS) TO DISCUSS VARIOUS SUBJECTS RELAT- ING TO GARBAGE SERVICES AND FEES, LANDFILLS, AND RECYCLING PROGRAMS E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54957.6, LABOR RELATIONS F. ADJOURNMENT COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. 3 6 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 24, 1990 VETERANS MEMORIAL HALL - 6:00 P.M. Vice Mayor Odell called the meeting to order at 6:00 p.m. F1MWz7TW PRESENT: Jeff Odell John Baker John Lemons Tom Wuriu ABSENT: Rose Marie Sheetz STAFF: Gary Napper Judy Skousen Rick Algert Ardith Davis Forrest Henderson Nick Nichols Mike Upton Steve Wolter Horace Strong gave the invocation, Allegiance. Vice Mayor Councilmember Councilmember Councilmember Mayor City Administrator City Attorney Harbor Director City Clerk Asst. City Admin. Public Works Dir. Admin. Asst. Rec. & Parks Dir. and led the Pledge of Vice Mayor Odell presented Mr. Lowman with a Resolution commend- ing him on his retirement after six years of service to the City. 1. Vivian Doubledee, 541 Estero, referred to Item A-5 on the agenda regarding replacement of sidewalk and street trees in the downtown area. She asked if consideration has been given to planting a different kind of tree than the flowering eucalyptus? She said the present trees are beautiful but very dirty. Mr. Nichols stated the Municipal Code specifies the type of trees to be planted in specific areas of the City. Councilmember Wuriu said he agrees with Ms. Doubledee and sug- gested Council consider amending the ordinance. Vice Mayor Odell asked if the contract could be awarded, but the tree planting postponed until Council has an opportunity to review this sub- ject? Mr. Nichols stated yes. Mr. Napper commented a public hearing may be required; Council considered this item some time 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 24, 1990 PAGE 2 ago, and it was a controversial one as many citizens prefer the flowering eucalyptus. 2. Mary Phillips, 2645 Ironwood, requested her item (D-5) be pulled from the agenda and rescheduled at the next meeting at an earlier time. 3. Ann Freeman, 785 Cabrillo, stated several stacks of lumber from the Bayshore Village development are located on the Bayshore Bluffs Park. She asked if staff has issued a permit to store lumber in a public park; does the developer have liability insurance to cover the City against claims; and, if there is no insurance, what is the City's liability if there is an injury due to the lumber? Vice Mayor Odell asked if Bayshore Bluffs is a dedicated City park? Mr. Wolter stated it is not a dedicated park, but it is public property. The City has not yet accepted the improvements. Vice Mayor Odell asked if the Bayshore Village developer has per- mission to store lumber at the park site? Mr. Wolter stated he understands the Community Development Director gave the developer permission to store building materials in the south end of the park. Vice Mayor Odell asked if the City is liable? Ms. Skousen stated the City could,be sued for any accident that happens. The City has attempted to leave the liability with the property owners. Storage of materials on City property usually requires an encroachment permit and insurance certification. Vice Mayor Odell stated he would like information on the matter. Mr. Napper stated staff would look into it and report back. 4. Warren Dorn, 212 Beach St. and President of Morro Bay Beautiful, stated Morro Bay Beautiful is concerned about lack of funding for park purposes and they have been working on the pas- sage of AB 145 (the California Park, Recreation, and Wildlife Enhancement Act of 1990) . It is now on the November ballot as Proposition 149. He noted some of the monies from the Proposi- tion could possibly be used to purchase the VRM property. He encouraged Council to work with Peter Grenell of the Coastal Con- servancy in support of this Proposition, and forward support let- ters to the Assembly and Senate offices in the area. Mr. Dorn stated Morro Bay Beautiful is also on record in support of better zoning for the Chevron property in North Morro Bay on the beach where the Standard Pier used to be. He said two Clean Seas box cars are at this location and are unsightly. The Coun- cil should ask the Planning Commission to review the zoning to eliminate the M-2 currently assigned to the area. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 24, 1990 PAGE 3 CLARATION OF FUTURE AGENDA ITEMS 1. Councilmember Lemons said Council previously requested the item regarding large volume water users be returned to Coun- cil, and asked when it would be on the Agenda? Mr. Napper stated it is scheduled for the next meeting. Councilmember Wuriu reiterated his request to examine the City's street tree master list. A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF SEPTEMBER 10. 1990 Mr. Napper recommended Council approve the minutes as submitted. A-2 STATEMENT OF INVESTMENTS - AUGUST 1990 Mr. Napper recommended Council accept the Statement for file. A-3 EXPENDITURE REPORT - AUGUST 1990 Mr. Napper recommended Council approve the Report as submitted. A-4 PROCLAMATION DECLARING THE WEEK OF OCTOBER 21-28, 1990 AS "RED RIBBON WEEK" FIGHT AGAINST DRUGS Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-5 AWARD OF CONTRACT FOR PROJECT PW 89-09, REPLACEMENT OF SIDE- WALK AND STREET TREES IN DOWNTOWN AREA AND REPAIR OF 100 FOOT PORTION OF BEACHCOMBER DRIVE Mr. Napper recommended Council waive the bid irregularity and award the project to Reidel Engineering of Morro Bay in the amount of $25,765.20. A-6 PROCLAMATION DECLARING OCTOBER 7. 1990 AS "HANDS ACROSS OUR BEACHES DAY" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-7 RESOLUTION NO. 122-90 ACCEPTING GRANT MONIES FROM STATE COASTAL CONSERVANCY FOR FUNDING OF CENTENNIAL PARKWAY RESTROOM PROJECT AND RECREATIONAL PHASE OF TIDELANDS PARK Mr. Napper recommended Council adopt Resolution No. 122-90. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 24, 1990 PAGE 4 Mr. Napper recommended Council deny the claim, and authorize the City Clerk to sign and mail the rejection notice. A-9 RESOLUTION NO, 118-90 ACCEPTING OFFER OF DEDICATION OF STREET RIGHT-OF-WAY, PINEY WAY AT SOUTH STREET (CUP 01-90/MB 89-454) (PULLED) A-10 RESOLUTION NO, 121-90 COMMENDING AND THANKING CHUCK LOWMAN FOR SIX YEARS OF SERVICE TO THE CITY UPON RETIREMENT Mr. Napper recommended Council adopt Resolution No. 121-90. Councilmember Lemons stated he will abstain from voting on the minutes since he was not at the last meeting. MOTION: Councilmember Wuriu moved for approval of the Consent Calendar. The motion was seconded by Councilmember Baker and carried with Councilmember Lemons abstaining on the minutes. (4-0) B. UNFINISHED BUSINES B-1 ORDINANCE NO, 379 ADDING CHAPTER 9.27, SECTIONS 9,27,010 THROUGH 9.27,050 TO THE MORRO BAY MUNICIPAL CODE RELATING TO SECOND RESPONSE RECOVER CHARGES FOR POLICE SERVICES (SECOND READING/ADOPTION) Mr. Napper stated the Ordinance allows the Police Department to charge for services when responding a second time to an incident. He noted the Police Officers will use discretion when enforcing this new law. If adopted this evening, it will go into effect October 24th. Councilmember Lemons asked if he can vote on the second reading of this Ordinance? He was not at the last meeting when the mat- ter was introduced, but he has read the minutes. Ms. Skousen stated he can vote on the issue. Vice Mayor Odell stated the Ordinance should be deferred until after the Noise Ordinance has been adopted. He asked who makes the determination on whether or not to cite people on the second response? Mr. Napper stated the officer in charge; they are re- quired to use their discretion in enforcing the law at all times. Councilmembers discussed the possibility of abuse of the Ordi- nance. Ms. Skousen stated the police will determine if the reporting party is abusing the law; they have to witness the incident and use their judgment as to whether or not a violation is occurring. The person cited can also appeal to the courts. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 24, 1990 PAGE 5 Councilmember Lemons asked where the line is drawn as to whether or not the noise is a violation of the Ordinance? Ms. Skousen stated when it interferes with the public's right to quiet enjoy- ment of their property, it becomes a public disturbance. MOTION: Councilmember Wuriu moved Ordinance No. 379 be read by title and number only. The motion was seconded by Councilmember Baker and unanimously carried. (4-0) Mr. Napper read Ordinance No. 379 by title and number only. MOTION: Councilmember Baker moved for the adoption of the sec- ond and final reading of Ordinance No. 379. The motion was seconded by Councilmember Wuriu and carried with Vice Mayor Odell voting no. (3-1) M-2 ORDINANCE NO. 381 AMENDING LEVEL 4 •,• • • • i L; CRITICAL EXEMPTION • • Mr. Napper stated the Ordinance amends Water Conservation Level 4 to exempt the operation of commercial car washes from the restrictions. Staff has administratively allowed the exemption of car washes from this provision and will continue to do so until the Ordinance goes into effect on October 24th. Councilmember Lemons asked Ms. Skousen if a restriction on wash- ing boats and RVs by tourists is legal? Ms. Skousen responded the City cannot restrict the use of water just to local resi- dents. Councilmember Baker commented if the City restricts tourists in this manner, they should also be restricted from tak- ing showers in motels; that would be farfetched. MOTION: Councilmember Baker moved Ordinance No. 381 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) Mr. Napper read Ordinance No. 381 by title and number only. MOTION: Councilmember Baker moved for the adoption of the sec- ond and final reading of Ordinance No. 381. The motion was seconded by Councilmember Wuriu and carried with Councilmember Lemons voting no. (3-1) Mr. Napper stated the Coastal Commission has requested the City rezone portions of Area D in the North Main Street Specific Plan back to Visitor -Serving Commercial. Staff has no objection to the request. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 24, 1990 PAGE 6 MOTION: Councilmember Wuriu moved Ordinance No. 382 be read by title and number only. The motion was seconded by Councilmember Baker and unanimously carried. (4-0) Mr. Napper read Ordinance No. 382 by title and number only. MOTION: Councilmember Wuriu moved for the adoption of the sec- ond and final reading of Ordinance No. 382. The motion was seconded by Councilmember Baker and unanimously carried. (4-0) B-4 PROGRESS REPORT CONCERNING DISCUSSIONS WITH SAN LUIS COASTAL UNIFIED SCHOOL• DISTRICT FOR JOINT POWERS AGREEMENT REGARDING EXCHANGE OR REDUCTION IN FACILITY USE FEES AND SERVICES Mr. Wolter said the School District submitted a considerable increase in fees for use of school facilities effective September loth. He said the increase must be passed on to participants as it should not be absorbed by the City due to user -fee policies. This action will probably result in lower participation further increasing per unit costs to participants; it may ultimately result in minimal or non -participation which may require elimina- tion of the class. The City has met with the School District to discuss exchange of services in lieu of significant rent increases. While a joint powers agreement may be possible, it will take some time to prepare and the School District is not willing to forego their fee increases until an agreement is established. Therefore, it is necessary to increase user fees for classes at Morro Bay High School. The programs would run at a $500 deficit each week because of the increased fees. Another suggestion to hold costs down is to eliminate the free sports passes to City employees. Councilmember Wuriu commented it is shame we must raise fees but the benefits of a joint agreement appear to be weighed in favor of the School District. He asked if the School District would cut down on water use at the High School? Mr. Napper said he is unaware if the School District has looked at that recently; he noted they are required by health standards to change the pool water weekly when in use. Vice Mayor Odell asked how services could be provided to the School District without incurring costs? Mr. Wolter stated some things could be done without increased staff costs; in other cases the increase could be passed to the user. The City may have to absorb a small part of the costs. MOTION: Councilmember Lemons moved this item be set for the second meeting in October for a status report and pub- lic hearing; staff implement a new fee schedule for recreation programs utilizing School District facili- ties to "pass -through" the School District's increased MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 24, 1990 PAGE 7 rental fees; and Council authorize the cancellation of the employee free "sports pass" program. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) Mr. Napper stated it is 7PM and asked if Council would like to consider public hearing items at this time? MOTION: Councilmember Lemons moved Council consider public hearing items at this time, and come back to Unfinished and New Business after the public hearings. The motion was seconded by Vice Mayor Odell and unanimously carried. (4-0) D. PUBLIC HEARINGS REPORTS & APPEARANCES D-1 OORDINANCE NO 378 ADDING CHAPTER 9 26 SECTIONS 9 26 010 THROUGH 9 26 120 TO THE MO RO BAY MUNICIPAL CODE RELATING TO DETRIMENTAL• NOISE LEVELS• AND REPEALING CHAPTER a 28 PRO- HIBITED CONDUCT (PULLED) D-2 RESOLUTION NO 116-90 AUTHORIZING CITY APPLICATION FOR URBAN MASS TRANSPORTATION ACT (UNTA) SECTION 18 CAPITAL PROJECT FUNDS FOR IMPROVEMENTS TO DIAL -A -RIDE OFFICE AND WORK STATIONS Mike Upton, Administrative Assistant, reviewed the proposed application for grant funds from UMTA for a $6,000 Dial -A -Ride office and work station improvement project. Vice Mayor Odell asked when Council will see the new contract for the Dial -A -Ride system? Mr. Upton stated the RFP should go out within the next two to three weeks. Vice Mayor Odell opened the hearing to the public for comments. Mary Phillips said she read somewhere cities do not have the responsibility for transportation; it is usually the county. She believes it would work better that way, and the City could save its money for water. Mr. Upton stated the Area Coordinating Council is responsible for the transportation funds and dis- tributes them to cities for transportation systems. State law does not allow cities to use transportation funds for water. Susan Mullen, 986 Pacific, asked if transportation funds have to be specifically spent on Dial -A -Ride or can it be used for other general mass transit expenditures? Mr. Upton stated most expen- ditures have been for capital projects or transit improvements. Ms. Mullen asked if these funds could be used to support a trol- ley taking people from downtown to the proposed Williams Brothers Shopping Center? Mr. Upton stated yes, but it would not appear MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 24, 1990 PAGE 8 to be a high priority project for use of discretionary grant monies. Mary Phillips asked questions regarding spending these funds for street improvements. Mr. Upton stated the City spends 100% of Transportation Development Act Funds on transit. If cities and counties are successful in getting changes in the way funds are distributed, there may be funds left over for street and road purposes. Vice Mayor Odell closed the hearing to the public. Councilmember Lemons asked if the local match money is currently in the budget for this project? Mr. Upton stated no; it will be budgeted next fiscal year since the grant will not be available until that time. MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 116-90. The motion was seconded by Coun- cilmember Wuriu and unanimously carried. (5-0) Vice Mayor Odell stated he is stepping down from discussion on this matter because of a conflict of interest. Councilmember Wuriu took over chairing this item. Mike Upton gave a detailed explanation of Morro Bay Garbage Ser- vice's initial request for a 10.44% increase in rates. Their request is based on the County Board of Supervisors approving an increase in tipping fees at the Cold Canyon Landfill from $8.50/ton to $12.30/ton. The landfill increase is due to State - mandated programs concerning landfills. He noted Morro Bay Garbage Service has not requested an operational increase for refuse collection since February 1983; recent increases they have received were due to tipping fee increases and the new recycling program. Negotiations between staff and Morro Bay Garbage Ser- vice have reduced the 10.44% increase to 5% on condition Morro Bay agrees to a formula allowing increased rates if the Board of Supervisors approves an increase for landfill charges. He noted the City of San Luis Obispo's new $1/bag program; our Solid Waste Management Board recommended San Luis Obispo's program be moni- tored until after the first of the year before Morro Bay seri- ously considers it. Councilmember Wuriu asked if we agree to this formula and the Board of Supervisors approves another tipping fee increase, will it go into effect in Morro Bay automatically? Mr. Upton stated Morro Bay Garbage Service would have to notify their customers first. Council also reserves the right to reject the County's MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 24, 1990 PAGE 9 analysis and reasoning for a rate increase for Morro Bay. He added if Council adopts the Resolution this evening, the increased fees will go into effect November 1st for residential and October 1st for commercial. Councilmember Baker stated he has received comments concerning Morro Bay Garbage Service having a monopoly on refuse collection in the County, and asked how long they have been serving the com- munity? Mr. Upton stated Morro Bay Garbage Service has been in business for 30 years. The Wagners initially owned the company and Mr. Cattaneo purchased it in 1986. He added that with even the new fee schedule, Morro Bay's rates remain the lowest in the County for residential service. Councilmember Baker asked when the agreement with Morro Bay Garbage Service expires? Mr. Upton stated 31 December 1991. Councilmember Wuriu opened the hearing to the public for comments. Susan Mullen, 985 Pacific and representing ECOSLO, stated ECOSLO could be a potential bidder on portions of the refuse contract when it expires. She suggested the rates for service should be based on volume. Mary Phillips commented on Mr. Cattaneo picking up and selling recyclables, with the citizens paying 50G for recycling pick-up services. She encouraged Council to begin the $1/bag program now and said it encourages recycling and works in other cities. The current system puts the financial burden on those creating less garbage. The State told cities to recycle 10 years ago; she ob- jects the blame placed on the State for causing these increases. Harry Marks, Kings Avenue and member of the Solid Waste Manage- ment Board, stated he has been on the Board since the Wagners owned Morro Bay Garbage Service; the service has improved consid- erably since Mr. Cattaneo bought the business. People are get- ting more for their money than they have in the past. He encour- aged Council to approve the Resolution. Howard Gaines, 441 Orcas, said Council needs to put things in perspective: Cattaneo owns the Cold Canyon landfill site; he owns Morro Bay Garbage Service; the County leases the landfill from Cattaneo. He stated the garbage service should be treated as a.stock public utility and the rate set according to what the owner has invested and the PUC rate of return. Fred Hall stated rates should be set on a volume basis; all peo- ple should not have to pay the price of large volume users. Councilmember Wuriu closed the hearing to the public and returned the matter to Council. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 24, 1990 PAGE 10 Councilmember Lemons inquired of State law with regard to monopo- lies. Mr. Upton stated the City has the authority to provide exclusive franchise garbage service; it is optional for the City to submit it to bid. He added an independent auditor reviewed the Garbage Service's books and determined Morro Bay Garbage Ser- vice receives a 13% return on their operation. Councilmember Wuriu said it would be healthy competition if another garbage service would bid on this contract when it expires, but it does not seem there are others in the area who can provide the service just for Morro Bay. Councilmember Lemons asked if there is anything set aside from the tipping fee for recovery of closing costs? Tom Martin, Con- troller for Morro Bay Garbage Service, stated Cold Canyon Land- fill sets aside $3.50 per ton of refuse into a trust for this purpose. Neither the garbage service company or landfill opera- tion has access to the fund. MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 117-90. The motion was seconded by Coun- cilmember Baker and carried with Vice Mayor Odell abstaining. (3-0-1) Vice Mayor Odell returned to the Council dais. D-4 REQUEST BY CITIZEN (NELSON SULLIVAN) TO DISCUSS THE BALLOT INITIATIVE DOCUMENT TREATMENT BY THE CITY ATTORNEY Mr. Sullivan stated on August 27th he tried to speak on the City Attorney's treatment of ballot initiatives. Two years ago, a similar measure was presented to the City Council, and the City Attorney and City Administrator decided to prepare a fiscal impact on the initiative. He said this action is reserved to the City Council, but they saw fit to use City personnel to create a fiscal impact and included this information in the ballot title and summary. The $260,000 to $280,000 fiscal impact determined by the City Attorney was so exaggerated it was out of the ques- tion the initiative could be circulated successfully. The fiscal impact is to be determined after the initiative has been circu- lated. Also, he did not have time to go to court to have the matter resolved before the election, and the City has continued to mis-manage water since then. This year Measure I is closely aligned with the measure proposed two years ago, and the City Attorney's current analysis is designed to confuse people; it was a negative factor in the circulation of the petition. He believes there is a conspiracy continued from two years ago to keep the present water allocation procedures. Mr. Sullivan stated the City Council can request a second legal opinion. The City Attorney has made the City liable for damages because of her actions, and suggested Council mitigate this by seeking compe- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 24, 1990 PAGE 11 tent, unbiased legal advice. The cards are stacked against Mea- sure I because of her actions. Dale Reddell, 680 Sequoia Court, stated he supports what the City Attorney wrote regarding Measure I. Vice Mayor Odell closed the hearing and returned the matter to Council. Councilmember Lemons asked Ms. Skousen if she would like to change her analysis, or is it in keeping with State law? Ms. Skousen stated her opinion is impartial, unbiased, and the best she could do with the ballot measure before her. The initiative was difficult to understand, and she attempted to explain what it means, its purpose, and function. It is a poorly drafted initia- tive, and she believes she did her best to interpret it. She stated Mr. Sullivan's remedy is with the courts at this point; he was aware of this remedy two years ago, and at present. Councilmember Baker believes the City's Attorney's opinion is proper; Mr. Sullivan's charge of mis-use of water allocations is farfetched. The City is not using any more water today than it did last year, despite the drought. Vice Mayor Odell stated it is a difficult issue to understanding* and Mr. Sullivan should go to court if he is dissatisfied. Councilmember Lemons suggested if this matter or a similar one with regard to calling attention to something or someone on the November ballot is presented with a request for agenda time, it be deferred for Council hearing until after the election. No action was taken on this matter. Council recessed from 8:06 P.M. to 8:19 p.m. Councilmember Lemons left the meeting during recess due to illness. D-5 REQUEST BY CITIZEN (M_ARY PHILLIPS) TO DISCUSS VARIOUS SUBJECTS RELATING TO GARBAGE SERVICES AND FEES LANDFILLS AND RECYCLING PROGRAMS Item pulled by requestor to be rescheduled for October Sth. B-5 STATUS REPORT CONCERNING GROUNDWATER WELL• LEVELS Mr. Nichols reviewed the status of the municipal well groundwater supplies; they appear to be holding steady. Annual water produc- tion is 1.4% less than the same period last year with increased population which relates to reduced per capita consumption. The groundwater aquifers are in a stressed state and continue to *corrected 10-8-90 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 24, 1990 PAGE 12 decline. There is one well in Morro Creek which is not in ser- vice, and two wells not in service in the Chorro Basin due to high nitrates. The second reverse osmosis unit has been installed and is now producing a total of 350 gallons of desalted water per minute in Morro Creek. He reviewed water quality fig- ures, and stated we meet all State Health Department standards. All emergency supply projects are in place should the City require emergency water; however, there is no reason at this point to recommend changes to water conservation. The amount of rain received during the recent rainstorm was .4411, and he noted last year in September, the City also received .44" of rain. No action was taken. C. NEW BUSINESS C-1 SELECTION OF VOTING DELEGATE AND ALTERNATE DELEGATE TO REP- RESENT CITY AT ANNUAL CONFERENCE OF THE LEAGUE OF CALIFORNIA CITIES Mr. Napper stated the League of California Cities Annual Confer- ence is being held October 20th-24th this year. Each city is requested to select a voting delegate and alternate for the Gen- eral Business Session. If no elected officials attend the con- ference, a staff member can be selected to vote on behalf of the City. Assistant City Administrator Forrest Henderson and City Attorney Judy Skousen will be going to the Conference. MOTION: Councilmember Wuriu moved the Assistant City Adminis- trator be the voting delegate, and the City Attorney the alternate. The motion was seconded by Councilmem- ber Baker and unanimously carried. (3-0) C-2 RESOLUTION NO. 115-90 APPROVING ASSIGNMENT AND ASSUMPTION OF LEASE SITE 62/62W (551 EMBARCADERO) FROM BRUCE AND KATHY LEWIS TO OASI. INC.. A CALIFORNIA CORPORATION, AND AMENDMENT OF AGREEMENT REGARDING USES AND HOURS OF OPERATION Rick Algert, Harbor Director, stated Bruce and Kathy Lewis have requested assignment of Lease Site 62/62W to QASI, a California corporation. Mr. Brousseau, the chief stock holder in the corpo- ration, proposes to use the lease as a working studio area for local artists to create and sell artworks. He said the proposed lessee is requesting an amendment to the lease to alter the hours of operation from 6 hours daily, 6 days a week to a minimum of 30 hours weekly because of the nature of the activity proposed. Councilmember Wuriu asked if there are any artists signed up to operate in the studio? Mr. Brousseau, 3090 Main Street, stated yes, there is interest from a number of local artists that do not have the opportunity to display their art in a prime location. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 24, 1990 PAGE 13 MOTION: Councilmember Wuriu moved for the adoption of Resolu- tion No. 115-90. The motion was seconded by Coun- cilmember Baker and unanimously carried. (3-0) C-3 RESOLUTION NO 119-90 APPROVING SUBLEASE FOR A PORTION OF LEASE SITE 91-92W (DBA GALLEY RESTAURANT) TO M/M KNOX FOR OPERATION OF A MARINE NOVELTY GIFT SHOP AND MINOR REVISION TO PERMITTED USES Mr. Algert reviewed the request of leaseholders on Lease Site 91- 92W to sublease a portion of their site to Ray and Becky Knox. The Knox's currently operate "By the Bay" gift shop in the Harbor Center across from the Anderson lease site. The lease must also be amended to incorporate "retail gift shop" as an approved use. MOTION: Councilmember Baker moved for adoption of Resolution No. 119-90. The motion was seconded by Councilmember Wuriu and unanimously carried. (3-0) AN M Mr. Algert stated Mr. Knox's sublease for the "By the Bay" gift shop on Lease Site 93-95W was a partnership with Bruce Stamp. The partnership has been dissolved, and Mr. George, leaseholder, is requesting Council approve a sublease with the new owners, Ray and Becky Knox. MOTION: Councilmember Baker tion No. 129-90. cilmember Wuriu and moved for the adoption of Resolu- The motion was seconded by Coun- unanimously carried. (3-0) Mr. Algert reviewed his attempts to secure a low -interest loan from the Department of Boating and Waterways for reconstruction of the South T-Pier. The Department is willing to loan the City up to $2 million at 4.7% interest for 30 years. When the insur- ance matter is settled, the City can pay the loan back with those funds. He recommended Council adopt Resolution No. 114-90 autho- rizing application for the loan which should be available by July 1991. Project reconstruction is tentatively scheduled for that time as well. Councilmember Baker commended Mr. Algert for his resourcefulness in locating this loan, and Mr. Napper for choosing him to do the job. He asked what would happen if the City receives the insur- ance money after the loan is processed? Mr. Napper stated there is no pre -payment penalties involved with this loan. He noted if MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 24, 1990 PAGE 14 the insurance money does become available, the maximum amount the City is insured is $1.5 million; the project cost is estimated at over $2 million so financing of this additional $.5 million expense can be accomplished through this loan. MOTION: Councilmember Baker moved for adoption of Resolution No. 114-90. The motion was seconded by Councilmember Wuriu and unanimously carried. (3-0) Mr. Napper stated the County of San Luis Obispo is beginning to reach the point many other counties have where they do not have sufficient revenues to support programs. The State Budget re- duced their revenues and allowed them to bill cities for tax ad- ministration and collection services, and for booking prisoners. Now, our County is considering a possible development impact fee on new construction projects which impact County facilities and services. Because of the impact on cities, the County is propos- ing a City/County Participation Group to overview prospective fees and review documentation supporting the fees. The County requests a councilmember and a staff person be appointed to rep- resent the City on the proposed committee. Mr. Napper suggested the City be represented in order to protect its interests. Councilmember Baker asked if, according to AB 1600, the County has to prove the fees and taxes are necessary? Mr. Napper said they only have to prove it to themselves, unless challenged in court. If they decide to levy the fees, they are empowered to do so. A consultant will document the services and costs. Councilmember Wuriu stated it appears to be a polite form of highway robbery; if the City does not participate, our voice will not be heard. Vice Mayor Odell agreed the City should be involved out of self-defense. MOTION: Councilmember Wuriu moved Councilmember Lemons and City Administrator Gary Napper be appointed to the City/ County Participation Group. The motion was seconded by Councilmember Baker and unanimously carried. (3-0) Mr. Napper stated in July 1990, Council supported AB 145 which proposed a multi -million dollar bond act to purchase, develop, and rehabilitate parks, recreation facilities, museums, and coastal areas. It is now on the November ballot as Proposition 149. The Coastal Conservancy stands to benefit in the amount of MINUTES - MORRO BA• ITY COUNCIL ' REGULAR MEETING - SEPTEMBER 24, 1990 PAGE 15 $15 million for local coastal grant programs, which gives Morro Bay opportunities to receive grant monies. He stated support for Proposition 149 is consistent with Council's earlier support of AB 145. MOTION: Vice Mayor Odell moved Council go on record in support of Proposition 149, and authorize the Mayor to send a letter to the California Coastal Conservancy, Califor- nia Department of Parks and Recreation, Senator Ken Maddy, the League of California Cities, and Proposition 149 Headquarters. The motion was seconded by Coun- cilmember Wuriu and unanimously carried. (3-0) E. CLOSED SESSIO E-1 GOVERNMENT CODE SECTION 54957.6. LAB MOTION: Councilmember Baker moved Council adjourn to Closed Session. The motion was seconded by Councilmember Wuriu and unanimously carried. (9'-`0) 3 Vice Mayor Odell announced Council is adjourning to Closed Ses- sion to discuss labor relations in accordance with Government Code Section 54957.6. The meeting adjourned to Closed Session at 9:04 p.m. and returned to regular session at 9:36 p.m. F. ADJOURNMENT MOTION: Vice Mayor Odell moved the meeting be adjourned. The motion was seconded by Councilmember Baker and unani- mously carried. (9-0) 3 The meeting adjourned at 9:36 p.m. Recorded by: ARDITH DAVIS City Clerk *corrected 10-9-90 meeting. IqL City Of Morro Bay City Council Agenda Mission Statement The City of Mono 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 - SEPTEMBER 10, 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 at this time. 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 (CITY COUNCIL) 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 AUGUST 27, 1990 A-2 RESOLUTION NO. 111-90 APPROVING PUBLIC AREA USE PERMIT NO. 468 FOR THE 1990 HARBOR FESTIVAL A-3 PROCLAMATIONS DECLARING SEPTEMBER 15 THROUGH OCTOBER 8, 1990 TO BE "COAST WEEKS" IN MORRO BAY; SEPTEMBER 15TH "COASTAL AWARENESS DAY"; AND SEPTEMBER 22ND "ADOPT A BEACH COASTAL CLEAN UP DAY" A-4 PROCLAMATION DECLARING THE WEEK OF SEPTEMBER 16-22, 1990 AS "EMERGENCY MEDICAL SERVICES WEEK" A-5 RESOLUTION NO. 106-90 AUTHORIZING THE REMOVAL OF NO -PARKING RESTRICTIONS ON MORRO BAY BLVD. AT NAPA AVENUE A-6 RESOLUTION NO. 105-90 AUTHORIZING AND DIRECTING THE INSTALLATION OF STOP SIGN ON ZANZIBAR STREET AT MAIN STREET A-7 RESOLUTION NO. 109-90 APPROVING AN AGREEMENT WITH ARROWHEAD INDUSTRIAL WATER, INC. FOR THE RENTAL OF A PORTABLE REVERSE OSMOSIS WATER TREATMENT PLANT B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 381 AMENDING LEVEL 4 CRITICAL WATER SUPPLY CONDITIONS TO PERMIT COMMERCIAL CAR WASH EXEMPTION (MOVED TO ITEM D-7) B-2 STATUS REPORT ON DEVELOPMENT OF EMERGENCY SUPPLEMENTAL WATER SUPPLY C. NEW BUSINESS C-1 RESOLUTION NO. 107-90 APPROVING AN AGREEMENT WITH SAN LUIS OBISPO COUNTY CONFIRMING THE CITY'S BENEFICIAL USE OF WATER FROM A COUNTY - OPERATED WELL LOCATED IN THE CHORRO CREEK BASIN C-2 RESOLUTION NO. 108-90 APPROVING AGREEMENT WITH PACIFIC GAS & ELECTRIC CO. FOR THE TEMPORARY USE OF TWO WATER WELLS FOR AN EMERGENCY SUPPLEMENTAL WATER SUPPLY C-3 DISCUSSION FOR CITY PROVISION OF TEMPORARY TOILETS FOR SPECIAL EVENTS AND HOLIDAY WEEKENDS D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 ORDINANCE NO. 378 ADDING CHAPTER 9.26, SECTIONS 9.26.010 THROUGH 9.26.120 TO THE MORRO BAY MUNICIPAL CODE RELATING TO DETRIMENTAL NOISE LEVELS; AND REPEALING CHAPTER 9.28, PROHIBITED CONDUCT (INTRODUCTION/ FIRST READING) D-2 ORDINANCE NO. 380 ADDING CHAPTER 8.32, SECTIONS 8.32.010 THROUGH 8.32.250 TO THE MORRO BAY MUNICIPAL CODE RELATING TO MASSAGE ESTABLISHMENTS AND MASSAGE TECHNICIANS (INTRODUCTION/FIRST READING); AND DRAFT RESOLUTION AMENDING THE MASTER FEE SCHEDULE TO INCLUDE MASSAGE ESTABLISHMENT AND MASSAGE TECHNICIAN APPLICATION FEES D-3 ORDINANCE NO. 379 ADDING CHAPTER 9.27, SECTION 9.27.010 THROUGH 9.27.050 TO THE MORRO BAY MUNICIPAL CODE, RELATING TO SECOND RESPONSE RECOVERY CHARGES FOR POLICE SERVICES (INTRODUCTION/FIRST READING) D-4 RESOLUTION NO. 112-90 RESTORING VISITOR SERVING -COMMERCIAL (VS-C) ZONING DESIGNATION TO CERTAIN PORTIONS OF AREA D OF THE NORTH MAIN STREET SPECIFIC PLAN; AND, ORDINANCE NO. 382 AMENDING THE NORTH MAIN STREET SPECIFIC PLAN (LCP/GP/ZOA 01-86A) INTRODUCTION/FIRST READING D-5 RESOLUTION NO. 110-90 ORDERING NUISANCE ABATEMENT OF UNSAFE CONDITIONS AT 2590 LAUREL AVENUE D-6 RESOLUTION NO. 113-90 ORDERING NUISANCE ABATEMENT OF UNSAFE CONDITIONS AT 2598 LAUREL AVENUE D-7 ORDINANCE NO. 381 AMENDING LEVEL 4 CRITICAL WATER SUPPLY CONDITIONS TO PERMIT COMMERCIAL CAR WASH EXEMPTION (INTRODUCTION/FIRST READING) E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY NEGOTIATIONS; DOMENGHINI FLAT LANDS 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 - SEPTEMBER 10, 1990 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:03 p.m. ROLL CALL PRESENT: Rose Marie John Baker Jeff Odell Tom Wuriu Sheetz Mayor Councilmember Councilmember Councilmember ABSENT: John Lemons Councilmember STAFF: Gary Napper City Administrator Judy Skousen City Attorney Ardith Davis City Clerk William Farrel Community Dev. Dir. Sandi Ford Code Enforcement Off. Forrest Henderson Asst. City Admin. Dave Howell Police Chief Nick Nichols Public Works Dir. Steve Wolter Rec. & Parks Dir. Horace Strong gave the invocation, and led the Pledge of Allegiance. PUBLIC COMMENT 1. Mary Phillips, 2645 Ironwood, quoted from a 1977 Carollo Engineers report. She said the City is pumping water past the salt water intrusion; if the City goes below sea water, it is going to ruin the aquifers. She objected to Mayor Sheetz promising the ocean to Morro Bay, and commented a Congressional report states no long-term health affects such as damage to kid- neys is known because desalination has not been in effect long enough. DECLARATION OF FUTURE AGENDA ITEMS None A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF AUGUST 27, 1990 Mr. Napper recommended Council approve the minutes as submitted. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 10, 1990 PAGE 2 A-2 RESOLUTION NO. 111-90 APPROVING PUBLIC AREA USE PERMIT NO. 468 FOR THE 1990 HARBOR FESTIVAL Mr. Napper recommended Council adopt Resolution No. 111-90. A-3 PROCLAMATIONS DECLARING SEPTEMBER 15 THROUGH OCTOBER 8, 1990 TO BE "COAST WEEKS" IN MORRO BAY; SEPTEMBER 15TH "COASTAL AWARENESS DAY"; AND SEPTEMBER 22ND "ADOPT A BEACH COASTAL CLEAN UP DAY" Mr. Napper recommended Council authorize the Mayor to sign the Proclamations. A-4 PROCLAMATION DECLARING THE WEEK OF SEPTEMBER 16-22, 1990 AS "EMERGENCY MEDICAL SERVICES WEEK" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-5 RESOLUTION NO. 106-90 AUTHORIZING THE REMOVAL OF NO -PARKING RESTRICTIONS ON MORRO BAY BLVD. AT NAPA AVENUE Mr. Napper recommended Council adopt Resolution No. 106-90. A-6 RESOLUTION NO. 105-90 AUTHORIZING AND DIRECTING THE INSTAL- LATION OF STOP SIGN ON ZANZIBAR STREET AT MAIN STREET Mr. Napper recommended Council adopt Resolution No. 105-90. A-7 RESOLUTION NO, 109-90 APPROVING AN AGREEMENT WITH ARROWHEAD INDUSTRIAL WATER, INC. FOR THE RENTAL OF A PORTABLE REVERSE OSMOSIS WATER TREATMENT PLANT Mr. Napper recommended Council adopt Resolution No. 109-90. Councilmember Odell requested Item A-7 be pulled for separate discussion; Councilmember Wuriu requested Item A-1 be pulled. • K14"+fSf�i`. A 0*111 7 Councilmember Wuriu said on page 20, fifth paragraph, third sen- tence stating, "...while Councilmember Wuriu had put 1/3% of their average,..." should be changed to read 33 3 rather than 1/3%. A-7 RESOLUTION NO. 109-90 APPROVING AN AGREEMENT WITH ARROWHEAD INDUSTRIAL WATER, INC. FOR THE RENTAL OF A PORTABLE REVERSE OSMOSIS WATER TREATMENT PLANT Councilmember Odell asked if the document attached to the Resolu- tion is the only contractual document? Mr. Nichols said the MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 10, 1990 PAGE 3 attachment is an outline; the main contract is in small print and was difficult to reproduce. Councilmember Odell stated with regard to #11 in the contract, if the contractor terminates the agreement, will the City receive a pro -rated refund? Mr. Nichols stated he would make sure of it. Councilmember Odell also asked if the City has an identical option to terminate? Mr. Nichols said he will find out. MOTION: Councilmember Wuriu moved the Consent Calendar be approved including the amendment to the minutes. The motion was seconded by Councilmember Baker and unani- mously carried. (4-0) B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 381 AMENDING LEVEL 4 CRITICAL WATER SUPPLY CONDITIONS TO PERMIT COMMERCIAL CAR WASH EXEMPTION (MOVED TO ITEM D-7) B-2 STATUS REPORT ON DEVELOPMENT OF EMERGENCY SUPPLEMENTAL WATER SUPPLY Mr. Nichols stated his report responds to the Council's request for a progress report at each meeting on development of emergency water supplies should the City be forced to enact Level 5 rationing procedures. Staff has been pursuing four emergency sources per Council action. Council just approved an agreement this evening to obtain another reverse osmosis treatment plant from Arrowhead to reduce the salinity in water from the Keiser Park wells. This will result in significant improvement in the quality of water delivered to North Morro Bay reducing the cur- rent TDS from 1400 ppm to 250 ppm. P.G.&E. has agreed to allow the City to use two water wells located on their power plant property. They will be used to supplement Keiser Park wells, and the City will provide water to the P.G.&E. power plant from the City's water system on the Embarcadero. The City has also worked out an agreement with the County to use the Golf Course wells while they are not being used for golf course irrigation. Coun- cil is aware the Whale Rock Commission has also approved City use of 100 acre feet of Whale Rock water should rationing go into effect; if used, the water must be paid back after the water sup- ply crisis. Mr. Nichols stated Agreements with P.G.&E. and the County for use of their wells are scheduled on this evening's Agenda for Council approval. Staff is in the process of preparing all projects to come on-line should it be necessary. Currently, ground water levels have stabilized and, unless something sudden occurs, he does not recommend changing water conservation requirements this week. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 10, 1990 PAGE 4 Councilmember Wuriu said while Council will not be enacting Level 5 at this meeting, he suggested citizens see if they can live within the requirements so they can be prepared if Council is forced to implement the Level 5 conservation requirements. Councilmember Baker asked if ceasing to water the parks and school grounds has had an effect on stabilizing the situation? Mr. Nichols said it is possible; more likely, up -stream agricul- tural irrigation is not as intensive as it has been. Councilmember Baker asked if City pumps are able to pump water back to Whale Rock? Mr. Nichols said Well N8 has the ability to pump against Whale Rock line pressure. Mayor Sheetz commented hardware stores are reporting major sales in water conservation devices. Mr. Nichols remarked the Public works field and office crews deserve credit for the hard and high caliber of work accomplished to make these projects come about. Mayor Sheetz asked Mr. Nichols to express Council's thanks to the City employees. Mr. Napper stated Council requested a report at every meeting regarding supplemental water sources. With this report, staff has maximized all reasonable emergency water options and he asked if Council wished to change their instructions? Staff will con- tinue to report well levels at every meeting. Mayor Sheetz said she intended to bring the matter up after the next two Agenda items. C. NEW BUSINESS C-1 RESOLUTION NO. 107-90 APPROVING AN AGREEMENT WITH SAN LUIS OBISPO COUNTY CONFIRMING THE CITY'S BENEFICIAL USE OF WATER FROM A COUNTY -OPERATED WELL LOCATED IN THE CHORRO CREEK BASIN Mr. Nichols requested Council approve the agreement with the County of San Luis Obispo for use of their Golf Course well. The Board of Supervisors will consider the agreement at their meeting on September 18th. The golf course irrigates approximately 16 hours per day which leaves 8 hours the City can use the well dur- ing a Level 5 emergency. MOTION: Councilmember Wuriu moved for the adoption of Resolu- tion No. 107-90. The motion was seconded by Coun- cilmember Odell and unanimously carried. (4-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 10, 1990 PAGE 5 C-2 RESOLUTION NO 108-90 APPROVING AGREEMENT WITH PACIFIC GAS & ELECTRIC CO FOR THE TEMPORARY USE OF TWO WATER WELLS FOR AN EMERGENCY SUPPLEMENTAL WATER SUPPLY Mr. Nichols stated P.G.& E. has agreed to let the City use its domestic wells at no cost during a Level 5 emergency. He requested Council approve the agreement. MOTION: Councilmember Baker moved Council adopt Resolution No. 108-90. The motion was seconded by Councilmember Odell and unanimously carried. (4-0) Mayor Sheetz said with these projects in the process, Council no longer needs an update on securing emergency supplemental sources of water. MOTION: Mayor Sheetz moved staff be relieved of the requirement to report at every meeting on acquisition of emergency supplemental sources of water. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) C-3 DISCUSSION FOR CITY PROVISION OF TEMPORARY TOILETS FOR SPECIAL EVENTS AND HOLIDAY WEEKENDS Mr. Wolter stated Council requested information on costs for portable restrooms to alleviate concerns regarding a shortage of restrooms on the Embarcadero. He said providing portable units for holiday weekends and special events will annually cost approximately $10,000 per unit. Currently, special event spon- sors are required to provide portable toilets during their events. He noted there are six public restrooms on the Embar- cadero; five of those are operated by the City. Three of those owned by the City are open 24 hours a day. He pointed out some of the problems with portable toilet units, and suggested an alternative may be increased signage as to location of public restrooms. Long-term solutions may be construction of an addi- tional restroom at Tidelands Park, and requiring public access to waterfront business restrooms through lease negotiations. Councilmember Baker discussed a problem one leaseholder had with people urinating on his lease site. The leaseholder rented a portable toilet unit to alleviate the problem. Councilmember Baker did not believe the City can wait until another restroom is built before taking action, and suggested checking with busi- nesses on the Embarcadero as to their opinions on portable restrooms. Councilmember Wuriu agreed the City is the responsi- ble party to provide toilet facilities on the Embarcadero. Councilmember Odell said he would like to see costs to purchase a unit since the rental figures are so high. Mr. Wolter said the major costs are for daily pumping of the units which remains even if the City purchases the unit. Councilmember Odell believed • i MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 10, 1990 PAGE 6 City crews and existing equipment could accomplish that task at minimal expense. Mr. Wolter commented if the portable restrooms become more than a temporary fixture, the City may need to obtain a Conditional Use Permit and Coastal Development Permit. Councilmember Wuriu suggested better signage be installed, but that staff investigate the purchase of several units. MOTION: Councilmember Baker moved staff investigate with lease- holders as to the proper placement of one or more portable toilets; and, also investigate the price of purchasing and servicing them ourselves. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) D. PUBLIC HEARINGS REPORTS & APPEARANCES D-1 ORDINANCE NO 378 ADDING CHAPTER 9 26 SECTIONS 9 26 010 THROUGH 9 26 120 TO THE MORRO BAY MUNICIPAL CODE RELATING TO DETRIMENTAL NOISE LEVELS• AND REPEALING CHAPTER 9.28. PROHIBITED CONDUCT (INTRODUCTION/FIRST READING) Ms. Skousen requested Council amend the Ordinance to add after the title and before Section 9.26.010, the following: "Now, Therefore, the City Council of the City of Morro Bay does hereby ordain as follows: 1. Chapter 9.28 of the Morro Bay Municipal Code is hereby repealed. 2. The Morro Bay Municipal Code is hereby amended to add a new chapter 9.26, Sections 9.26.010 through 9.26.120 to read as follows:" MOTION: Councilmember Baker moved Ordinance No. 378 be amended to include the language suggested by the City Attorney. The motion was seconded by Councilmember Odell and unanimously carried. (4-0) ` Chief Howell reviewed the proposed Ordinance noting it sets acceptable daytime and nighttime noise standards which are enforceable. The current ordinance is difficult to enforce. This proposal is modeled after the City of San Luis Obispo's, and will help resolve barking dog problems, consistency standards amongst mixed use zones, and it grants time for compliance by some commercial/retail establishments. One does not go to jail for violating the ordinance; penalty for violation is an infrac- tion, not a misdemeanor. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 10, 1990 PAGE 7 Councilmember Odell stated it is a very lengthy Ordinance. It is hard to know what the Ordinance means when he does not know how loud 50 or 60 decibels is. He would like to see how a skill saw or garbage truck measure to the standards set forth in the Ordi- nance. He requested the matter be continued. Mr. Farrel stated noise is very subjective; staff used standards typically accepted by health agencies and used nation-wide. Mayor Sheetz opened the hearing to the public for comments. Hugo Hemp, Cypress Trailer Park, stated the service station next door to his park is open all night; the noise from the station keeps his patrons awake. Specifically, the gasoline trucks are very noisy when they come to fill the tanks at night. Gary Gillman, owner of the service station next door to Mr. Hemp, stated previous to the station staying open all night, there were complaints from the park concerning people throwing cans and bot- tles over the fence from the station to the trailer park. That problem has been eliminated with the station open all night. Additionally, when the station was remodeled, the gas tanks were moved from the side of the station near the park to the center of the lot so as to minimize the noise to the trailer park. Mayor.Sheetz asked Mr. Gillman and Mr. Hemp to get together and try to work something out. She closed the hearing to the public. Councilmember Wuriu agreed with Councilmember Odell; there is too much material in the Ordinance to make a decision this evening. Council needs to find out what the terms in the Ordinance mean. Councilmember Baker wanted further research and explanation regarding the loading and unloading section; will this put fish processors in violation each week? MOTION: Councilmember Odell moved this item be continued to the next meeting. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) D-2 ORDINANCE NO. 380 ADDING CHAPTER 8.32, SECTIONS 8.32.010 THROUGH 8.32.250 TO THE MORRO BAY MUNICIPAL CODE RELATING TO MASSAGE ESTABLISHMENTS AND MASSAGE TECHNICIANS (INTRODUCTION/FIRST READING); AND DRAFT RESOLUTION AMENDING THE MASTER FEE SCHEDULE TO INCLUDE MASSAGE ESTABLISHMENT AND MASSAGE TECHNICIAN APPLICATION FEES Chief Howell stated the Ordinance provides regulation for massage businesses and technicians. He said it is modeled after the City of San Luis Obispo's. The regulations are provided to ensure the public's health, welfare and safety. There are four people cur- rently licensed in the City to provide this service. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 10, 1990 PAGE 8 Councilmember Odell questioned the references to the Penal Code in the Ordinance, and Chief Howell explained them. Councilmember Wuriu asked if there currently are problems with this type of business in Morro Bay? Chief Howell stated no, the proposed Ordinance is an attempt to be proactive before any prob- lems surface as the City Code is silent on local rules and proce- dures for this type of business. Mayor Sheetz opened the hearing to the public. Marie Moore, Clinical Psychologist and Massage Therapist stated she is representing the American Massage Therapy Association. Currently, there are no State licensing requirements for massage therapist; however, her organization is trying to develop a cer- tification of some sort. She stated many laws governing a mas- sage business are based on old laws for "massage parlors" and prostitution. The standard today for a massage therapist is 500 hours hands-on experience. She would like to see Morro Bay's Ordinance plan for the future of massage therapy rather than reliance on the past which may be out -dated shortly. Councilmember Wuriu stated it may be constructive for Dr. Moore to work with the Police Chief on a re -draft of the Ordinance. Mayor Sheetz closed the hearing to the public. Councilmember Wuriu stated he would like to see this item contin- ued also. There is a strong implication in the Ordinance that massage businesses have shifty characters and need to be watched. With some help from the people involved in the business, perhaps this Ordinance can be made more valuable? Mayor Sheetz remarked there really are legitimate people in this business and the proposed ordinance seems to over -police the industry. More refinement is needed. MOTION: Councilmember Wuriu moved this item be continued and returned to Council within 30 days. The motion was seconded by Councilmember Baker and unanimously car- ried. (4-0) • • ��J;S�L9�lt[•7tci.L:isl•].71`�I�Z•].`.:13�Y1;���/l��oL•1�1M��� � _ � Chief Howell stated there is a movement across the State where cities are attempting to recover expenses in certain emergency responses. The Police Department is responding to an increasing number of complaints on loud parties, and sometimes must return to the site more than once to disperse the gathering. The Ordi- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 10, 1990 PAGE 9 nance would allow the Department to charge individuals for having to respond to the same complaint more than once. Councilmember Odell was concerned this Ordinance depends on the previous noise ordinance in order to quantify noise levels. He was not in favor of adopting it until the noise ordinance has been established. Chief Howell stated the Department will not be citing on the first call unless someone has willfully disturbed the peace and quiet. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. Chief Howell indicated the police officers exercise a great deal of discretion; this law will be used mainly as a deterrent and only in extreme situations will it be enforced. Mayor Sheetz asked if there will be a warning before someone is cited? Chief Howell stated the offender will be given an infor- mation sheet with his/her name on it to put them on notice. MOTION: Councilmember Wuriu moved Ordinance No. 379 be read by title and number only. The motion was seconded by Councilmember Baker and unanimously carried. (4-0) Mr. Napper read Ordinance No. 379 by title and number only. MOTION: Councilmember Baker moved for approval of the introduc- tion and first reading of Ordinance No. 379. The motion was seconded by Councilmember Wuriu and carried with Councilmember Odell voting no. (3-1) D-4 RESOLUTION NO. 112-90 RESTORING VISITOR SERVING -COMMERCIAL (VS-C) ZONING DESIGNATION TO CERTAIN PORTIONS OF AREA D OF THE NORTH MAIN STREET SPECIFIC PLAN; AND. ORDINANCE NO. 382 AMENDING THE NORTH MAIN STREET SPECIFIC PLAN (LCP/GP/ZOA 01- 86A) INTRODUCTION/FIRST READING Mr. Farrel stated the North Main Street Specific Plan was pre- sented to the Coastal Commission in late 1989. Hearings were held and the City was notified the Commission did not agree with the City's zoning redesignation of the frontage lots along Main Street between Highway 41 and Morro Creek. Their concern was the proposed MCR/R-4 zone which would replace the VS-C zone would not allow additional recreational vehicles to be located in the Tratel-Morro Bay trailer park. Mr. Farrel stated staff does not object to the Commission's find- ings, and a Resolution and Ordinance are submitted for Council to comply. Mr. Farrel requested Council amend the title of Resolu- tion No. 112-90 omit the words, "DELETE THE" in the third line, and replace them with "REVISE THE DESIGNATED LAND USE". MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 10, 1990 PAGE 10 Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. MOTION: Councilmember Odell moved for the adoption of Resolu- tion No. 112-90 as revised. The motion was seconded by Councilmember Baker and unanimously carried. (4-0) MOTION: Councilmember Odell moved Ordinance No. 382 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) Mr. Napper read Ordinance No. 382 by title and number only. MOTION: Councilmember Odell moved for approval of introduction and first reading of Ordinance No. 382. The motion was seconded by Councilmember Baker and unanimously carried. (4-0) Council recessed from 7:38 pm. to 7:51 p.m. D-5 RESOLUTION NO. 110-90 ORDERING NUISANCE ABATEMENT OF UNSAFE CONDITIONS AT 2590 LAUREL AVENUE D-6 RESOLUTION NO. 113-90 ORDERING NUISANCE ABATEMENT OF UNSAFE CONDITIONS AT 2598 LAUREL AVENUE Sandi Ford, Code Enforcement Officer, stated both property owners at 2590 and 2598 Laurel Avenue have been served with a notice and order to abate and notice of this hearing for abatement proceed- ings. She explained the building permit for 2590 Laurel was deviated from causing excavation which has undermined some of the adjacent properties and destabilized the hill. If not corrected before the rainy season, the situation could become dangerous to the adjacent properties and properties below the lot. Ms. Ford reviewed the City actions taken since the excavation occurred. She recommended Council declare the properties a pub- lic nuisance and order abatement before the rainy season starts; a list of items to be accomplished and a timetable were attached for Council consideration. If the property owners fail to comply with the abatement order, the City will abate the nuisance and charge the cost as a lien against the properties. Mayor Sheetz opened the hearing on Items D-5 and D-6 for public comment. Dale Mitchell, attorney for property owners at 2590 Laurel, stated they are as shocked and upset about the excavation as any- one. They have spent $100,000 on the property so far and hired a licensed contractor to build the house. They were shocked to find a 26 foot excavation hole where a 9 foot one was supposed to MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 10, 1990 PAGE 11 be. He said his clients have spent hours trying to solve the problem. They are having trouble finding engineers willing to work on the problem because of the liability, and finally found one after promising to indemnify the firm from liability. He stated his clients have done everything they can and are waiting on the City to approve their plans and tell them their building permit is ready. His clients also need written permission from adjoining property owners to go on their property and work. Ms. Skousen stated they did turn in plans; however, she has informed their engineer, Mr. Carnes, the massive retaining wall is proposed for the public right-of-way and cannot be there due to traffic hazards. The plans also require the removal of the garage at 2598 Laurel. If Council declares both sites a nui- sance, it will give the City leverage to solve the problem. Mr. Mitchell was not aware of the City's instructions for redesign of the plans. He said the neighbors have been very cooperative and naturally would like to keep the garage intact. Ms. Skousen said due to the number of homes involved if a land- slide occurs, it makes sense to remove the garage in order to protect the homes. Ed Mendren, representing the Board of Directors for a corporation that owns the property at 2598 Laurel, stated he would like to get another opinion from an engineer to see if the garage can remain where it is. He did not create the problem, that is why nothing has been done. Gary Gillman, owner of 2586 Laurel property, said the Planning Department was notified there was a problem, and he explained some of the damage to his property. He said his house has been for sale since August 1989, and he is not able to sell it. He stated he tried desperately to get Planning Department assis- tance, and they told him it was not their problem, the contractor would take care of it. Mayor Sheetz asked who he called the com- plaints to? Mr. Gillman said he could only get to Elizabeth Szwabowski, Building Inspector, and the City came to the site once. Mayor Sheetz asked Mr. Mitchell if he has been in contact with the contractor who made the cut? Mr. Mitchell said no; his name is Don Martin and he has a Cambria address, but Mr. Mitchell has not been able to find him. Mr. Farrel stated he did not receive any messages from Gary Gillman about work in progress on this site. His department had no knowledge of the situation until after the excavation was complete. Barbara Sanders stated she spoke to Mr. Farrel in January about this problem. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 10, 1990 PAGE 12 Mayor Sheetz asked when the stop work order was put on the site? Mr. Farrel said about three months ago, after the excavation was complete. Ms. Skousen stated the stop work notice was placed on the property for shoring work, not because of the excavation; when attempting to correct the problem, the contractor did not following the engineer's plans. The engineer walked off the pro- ject because the contractor would not follow the plans. The con- tractor continued to work, and the stop work order was issued. Mary Phillips commented on the natural water spring on the prop- erty, and stated Mr. Farrel has a map of the land slide areas. The City needs to resolve this; put back the dirt that was removed. Ed Mendren said he contacted the Planning Department about the situation and they said it was out of their hands; he believes the discussion was in February. Mayor Sheetz asked him to pro- vide the Council with exact dates. Mayor Sheetz closed the hearing to the public. She asked what will happen if the owners of the property are unable to rectify the problem and the City does nothing? Ms. Skousen stated the geologists report indicates with any amount of rain, the house and garage can slide into the hole. Even without rain there is danger from an earthquake or tremor. It is unfortunate the garage at 2598 Laurel has to be removed, but the danger is much greater if it is not. It is unsafe to send people under the garage to shore up the area in its present condition. Mr. Mendren asked if the garage is removed, can it be rebuilt after the fill is complete? Ms. Skousen said there is a dispute as to where the property line is between the properties, the City will not be the arbiter of the dispute. There is some question the garage may have been built on the property line. Also it may be impossible to reestablish the hill enough to build the garage on it. After the engineer completes the plans, they should indi- cate whether a garage can be rebuilt on that location. Ms. Skousen stated the Resolutions for adoption this evening allow the property owners a reasonable time to work out a solu- tion and allow the City to determine what is safe. If the prop- erty owners wish to resolve the property line dispute before tak- ing action to abate the nuisance, it could take years. Mr. Mitchell indicated the property owner could meet the time sched- ule but they must have the cooperation of the City. Ms. Skousen stated she has been in contact with the property owners' engi- neer, Mr. Carnes, and he is aware of the need to redesign the plans without the retaining wall. Under the schedule established in the Resolution the plans must be completed by September 14th, and work completed by October 26th. The City has retained an MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 10, 1990 PAGE 13 outside consultant to review the plans the property owner will submit. Councilmembers Odell and Wuriu expressed concern the City needs to take action this evening. MOTION: Councilmember Wuriu moved for the adoption of Resolu- tion No. 110-90. The motion was seconded by Coun- cilmember Odell and unanimously carried. (4-0) MOTION: Councilmember Wuriu moved for adoption of Resolution No. 113-90. The motion was seconded by Mayor Sheetz and unanimously carried. (4-0) D-7 ORDINANCE NO 381 AMENDING LEVEL 4 CRITICAL WATER SUPPLY CONDITIONS TO PERMIT COMMERCIAL CAR WASH EXEMPTION (INTRODUCTION/FIRST READING) Mr. Napper stated Council, at their last meeting, directed an ordinance amendment be prepared for the Level 4 critical stage water conservation measures to allow car washes to be exempt from the regulations. Mr. Napper said staff has been administratively exempting car washes; however, the Ordinance formally makes the change. Mayor Sheetz opened the hearing to the public for comments. Mary Phillips commented the car wash uses 11 gallons of water in one cycle; individuals just put in extra money for additional water if they don't work fast enough during the first cycle. Non -potable water was used in the 170's to wash police vehicles. Tourists use whatever water they want. She said Mission Linen Laundry washes clothes from other areas besides Morro Bay. The whole burden of water conservation is on the permanent popula- tion. The City's program needs to be equalized. Mayor Sheetz asked her to come up with a plan to save commercial water. Mrs. Phillips said she would. Councilmember Odell suggested a timeframe be developed giving car washes an amount of time to change their facilities to recycled water; they could be given two or three years to install the technology1like Santa Barbara and Goleta. Councilmember Baker stated it must be remembered by prohibiting car washes, the City would be putting people out of business. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Baker moved Ordinance No. 381 be read by title and number only. The motion was seconded by Councilmember Odell and unanimously carried. (4-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 10, 1990 PAGE 14 Mr. Napper read Ordinance No. 381 by title and number only. MOTION: Councilmember Baker moved for approval of the introduc- tion and first reading of Ordinance No. 381. The motion was seconded by Councilmember Wuriu and unani- mously carried. (4-0) E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.8. REAL PROPERTY NEGOTIATIONS; DOMENGHINI FLAT LANDS MOTION: Councilmember Baker moved Council adjourn to Closed Session. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mayor Sheetz announced Council is adjourning to Closed Session to discuss real property negotiations in accordance with Government Code Section 54956.8; Domenghini Flat Lands. The meeting adjourned to Closed Session at 8:49 p.m. and returned to regular session at 9:47 p.m. F. ADJOURNMENT MOTION: Councilmember Odell moved the meeting be adjourned. The motion was seconded by Councilmember Baker and unanimously carried. (4-0) The meeting adjourned at 9:47 p.m. Recorded by: ARDITH DAVIS City Clerk 6 ' City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING - AUGUST 27, 1990 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE PRESENTATION: "U.S. CONSTITUTION MONTH' PROCLAMATION TO MASONS ESTERO LODGE NO 719 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 at this time. 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 (CITY COUNCIL) 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 AUGUST 13, 1990 AND THE SPECIAL MEETING OF AUGUST 15, 1990 A-2 PROCLAMATION DECLARING OCTOBER 1-5 1990 AS "FREE DIAL -A -RIDE WEEK" A-3 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (JOHNSON) A-4 STATEMENT OF INVESTMENTS - JULY 1990 A-5 EXPENDITURE REPORT - JULY 1990 A-6 PROCLAMATION DECLARING SEPTEMBER 1990 AS "U.S. CONSTITUTION MONTH" A-7 STATUS REPORT REGARDING UNREINFORCED MASONRY (URM) BUILDING REHABILITATION LIST AND FINANCING ALTRENATIVES FOR URM RECONSTRUCTIONS 6 6 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 27, 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 John Baker John Lemons Jeff Odell Tom Wuriu ABSENT: None STAFF: Forrest Henderson Judy Skousen Elane Novak Rick Algert Bill Boucher Louise Burt William Farrel Steve Wolter Mayor Councilmember Councilmember Councilmember Councilmember Asst. City Adm. City Attorney Deputy City Clerk Harbor Director Assoc. Civil Eng. Finance Director Community Dev. Dir. Rec. & Parks Dir. Horace Strong gave the invocation, and led the Pledge of Allegiance. Mayor Sheetz presented a proclamation declaring September 1990 as U.S. Constitution Month. The Proclamation was received by Emery Arlich, Secretary of the Masons Estero Lodge No. 719, in commemoration of the 203rd Anniversary of the signing of the Constitution. Mayor Sheetz read a press release announcing that the City of Morro Bay has received $250,000 in grant monies from the State Coastal Conservancy water front access improvement. She said a big "Thank You" was due Steve Wolter, Recreation and Parks Director, Grantmanship expertise expert. PUBLIC COMMENT 1. Mr. Robert Enns who had attended and spoke at the Special Water meeting of August 15, 1990 remarked he had noticed that this Special City Council meeting had not been publicized in either the Telegram Tribune nor the Sun Bulletin and when he inquired was told by staff that the meetings no longer had to be publicized. He also wanted to clarify the fact that he was not representing anyone, or any organization and that he was not called upon by anyone in the building industry to speak, but rather came as an individual and spoke of his own personal beliefs. 0 a B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 377 AMENDING THE WATER ALLOCATION PROCEDURES TO PROVIDE CERTAIN PRIORITIES ON RESIDENTIAL BUILDING WAITING LIST FOR CONSTRUCTION OF LOW AND VERY LOW-INCOME AFFORDABLE HOUSING PROJECTS (SECOND READING/ADOPTION) B-2 CONSIDERATION OF CITY POSITIONS(S) ON FORESTRY ACQUISITION AND TIMBER HARVESTING PRACTICES BOND ACT ("FORESTRY AND WILDLIFE PROTECTION ACT", PROPOSITION 130), FORESTRY PROGRAM AND TIMBER HARVESTING PRACTICES BOND ACT ("BIG STUMP", PROPOSITION 138), AND/OR CALIFORNIA ENVIRONMENTAL PROTECTION ACT OF 1990 ("BIG GREEN", PROPOSITION 128) B-3 RESPONSE TO DEPARTMENT OF WATER RESOURCES REGARDING THE DRAFT ENVIRONMENTAL IMPACT REPORT ON THE STATE WATER PROJECT, COASTAL BRANCH PHASE II C. NEW BUSINESS C-1 APPROVAL OF CAPITAL PROJECT AND OPERATING ENCUMBRANCE LIST FROM FY 1989-90 C-2 ASSIGNMENT OF LEASE SITE 86/86W FROM H.L. YOCUM & SONS, A PARTNERSHIP, TO CLARA BELLE YOCUM, H. GENE YOCUM, AND ROBERTA ARCHULETA (PULLED) C-3 RESOLUTION NO. 103-90 AUTHORIZING INSTALLATION OF 4-WAY STOP SIGNS AT INTERSECTION OF MORRO BAY BLVD. AND NAPA AVE. C-4 RESOLUTION NO. 104-90 MODIFYING CONDITIONS OF APPROVAL ON CUP 23- 89/CDP 32-89R TO PERMIT ON -STREET PARKING ON WEST SIDE OF BERNARDO AVE., PACIFIC ST. TO MORRO BAY BLVD. C-5 PROGRESS REPORT ON SEARCH FOR PROCUREMENT OF EMERGENCY WATER SUPPLIES D. PUBLIC HEARINGS, REPORTS & APPEARANCES D-1 REVIEW OF ORDINANCE REGULATING THE PLANTING, MAINTENANCE, AND REMOVAL OF TREES IN CITY RIGHTS -OF -WAY, AND CONCEPT CONSIDERATION OF REGULATING REMOVAL OF TREES ON PRIVATE PROPERTY D-2 HEARING REGARDING INCREASES IN RENTAL FEES FOR USE OF SCHOOL DISTRICT FACILITIES CAUSING CORRESPONDING INCREASES IN FEES FOR RECREATION AND CULTURAL ARTS PROGRAM D-3 REQUESTS BY COUNCILMEMBER ODELL FOR RECONSIDERATION OF THE CONSERVATION AND RATIONING MEASURES IN A LEVEL 5 "EMERGENCY WATER SUPPLY SITUATION", AND CONSIDERATION OF IMMEDIATELY CEASING IRRIGATION OF ALL TURF LAWNS ON CITY PROPERTY 2 D-4 REQUEST BY CITIZEN (NELSON SULLIVAN) FOR AGENDA TIME TO DISCUSS INITIATIVE MEASURE I (INITIATIVE MEASURE TO REFORM WATER ALLOCATION POLICIES) AND THE CITY ATTORNEY'S IMPARTIAL ANALYSIS OF THE BALLOT MEASURE D-5 REQUEST BY COUNCILMEMBER LEMONS FOR INTERPRETATION OF LEVEL 4 "CRITICAL WATER SUPPLY CONDITIONS" ALLOWING WASHING OF VEHICLES AND BOATS ON TRAILERS BY USE OF A BUCKET OF WATER ONLY IN COMPARISON TO OPERATION OF CAR WASHES AND PROHIBITION OF WASHING BOATS IN WATERFRONT FACILITIES (ORDINANCE NO. 374) 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. 3 2. Charles Palmer said he wanted to speak on item C-4 when it came up. In regards to the State Water Project Mr. Palmer indicated he had spoken with Mr. Nichols, Public works Director and learned that if we subscribed to less than the 1,330 acre feet we had asked for, the amount paid by the citizens of Morro Bay would go down in direct relationship to the amount of water received. So how much State Water do we really need and how much State Water can we get for the minimum dollar? He said the City has a good solid basis for water, and cited some water we could get locally and said we could get those sources of water for about 40% of the cost of State Water, and with the loss of ground water he felt we would gain nothing. 3. Ray Kaltenbach said he had read that the City was going ahead with work on the T Pier which had burned, regardless of the insurance outcome. He had deducted from this article that the City did not have the insurance and felt that someone had goofed and there should be an investigation as to who and why this had been neglected. 4. Mary Phillips talked about reduction in garbage rates, why not $1 per bag and when the bag is full put it out and get another for a $1? If it takes a year to fill the bag you would still be charged $1. She said that San Luis Obispo County is following this practice and 40% of the customers went down and got this bag. The regular rate is $9 a month and the others will use the $1 bags. She said the garbage company wanted to get more recycling and she felt they would with this practice. Ms. Phillips also mentioned she had passed on the information to the Garbage Franchise Board, asking that it be put on the agenda, so in case staff does not make the request, she is requesting this item for reduction of garbage bills be put on the agenda. Mayor Sheetz indicated this request would be a part of the discussion when garbage rates are discussed in a City Council meeting which is coming up in a few weeks. i, 5. Ed McCracken said that he had tried to use the phone booth by the rock as someone was climbing the rock. The 911 number did not work and he went through all kinds of calls, collect and otherwise trying to reach someone to take care of the problem. He was finally successful in getting the message to the proper people, but it was time-consuming. Mayor Sheetz asked Mr. Algert, Harbor Director to check on the phone and find out why the 911 number did not go through. DECLARATION OF FUTURE AGENDA ITEMS 1. Councilmember Lemons said a couple of meetings back he had introduced an ordinance having to do with inspection of high -end water users to see that they are not engaging in wasteful water practices and it failed to pass as there was a 2-2 vote, with the 2 absence of Councilmember Baker. Councilmember Lemons would like the item to be reagendized. Judy Skousen, City Attorney said she did not have her Roberts Rules with her but believed that the absent party (Councilmember Baker in this case) could request that the item be brought back since the item failed to pass. Councilmember Baker asked that the item be placed on the agenda for the next Council meeting. Mayor Sheetz said the City Attorney would check out Roberts Rules and if there was no problem the item would be placed on the agenda. Mr. Henderson, Assistant City Administrator explained he was taking the meeting tonight as Mr. Napper is out of town. He then introduced Mr. Rick Algert the new Harbor Director. A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF AUGUST 13, Mr. Henderson recommended the Council approve the minutes as submitted. A-2 Mr. Henderson recommended Council authorize the Mayor to sign the Proclamation. A-3 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (JOHNSON) Mr. Henderson recommended that Council deny the liability claim and authorize the City Clerk to sign and mail the rejection notice. A-4 STATEMENT OF INVESTMENTS - JULY 1990 Mr. Henderson recommended that Council receive and accept the report for file. A-5 EXPENDITURE REPORT - JULY 1990 Mr. Henderson recommended that Council approve the July 1990 Expenditure Report as submitted. A-6 PROCLAMATION DECLARING SEPTEMBER 1990 AS "U.S. CONSTITUTION Mr. Henderson recommended that Council authorize the Mayor to sign the Proclamation. 3 Councilmember Wuriu asked for discussion on this item. He noted that of the people contacted eight had not responded to the City. Mr. Farrel, Community Development Director said that staff would follow-up with a letter to these people. MOTION: Councilmember Lemons moved for approval of the Consent Calendar. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) B. UNFINISHED BUSINESS 14W WAITING LIST FOR CONSTRUCTION OF LOW AND VERY LOW-INCOME AFFORDABLE HOUSING PROJECTS (SECOND READING/ADOPTION) Forrest Henderson recommended Council have Ordinance No. 377 read by title and number only, and by separate motion, Council would adopt Ordinance No. 377. If this Ordinance is adopted it would go into effect on September 26, 1990. MOTION: Councilmember Lemons moved that Ordinance No. 377 be read by title and number only. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mr. Henderson read Ordinance No. 377 by title and number only. MOTION: Councilmember Lemons moved that Ordinance No. 377 be adopted. The motion was seconded by Councilmember Odell. Ayes: Baker, Lemons, Odell, Sheetz, Wuriu Mayor Sheetz asked that Council proceed to item B-3 as two people had called to speak on B-2, and they had not yet arrived. B-3 RESPONSE TO DEPARTMENT OF WATER RESOURCES REGARDING THE DRAFT ENVIRONMENTAL IMPACT REPORT ON THE STATE WATER PROJECT, COASTAL BRANCH PHASE II Mr. Henderson passed out to the City Council a draft letter addressed to the County Board of Supervisors. Mayor Sheetz asked that Mr. Henderson read the letter to the public as it had not been included in the Council packet. Mr. Henderson read the letter. 4 0 A second letter addressed to the Department of Water Resources was also read by Mr. Henderson as there was an insert prepared by the Mayor to be placed in the letter. After some discussion City Council accepted the first letter as read. Councilmember Odell said he had some problem with the letter to the State. The last sentence in the next to last paragraph did not contain a list of pesticides and organic chemicals referred to in the Draft EIR and should be included in this letter. Councilmember Lemons commented on the insert prepared by the Mayor saying that the State would probably not be able to give exact costs until the contracts had been let. Mayor Sheetz said she wanted the paragraph left in and wanted to know as close as possible what the costs would be. MOTION: Councilmember Wuriu moved both letters be accepted with the addition of the amendment proposed by Councilmember Odell. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) B-2 CONSIDERATION OF CITY POSITIONS) ON ia41D7 Mayor said Council would now go back to B-2. Mr. Henderson said City Council at their last meeting had instructed the City Administrator to contact campaign headquarters for each of these propositions and solicit information concerning their ballot measures. After he received the information the City Administrator indicated the staff does not have any preference or inclination towards any of these propositions as they do not directly affect our City or any other Cities, and the League of CA Cities has not rendered any position on any of these propositions. It is staff recommendation that Council determine any policy they wish on these State issues and Propositions. Councilmember Odell indicated he had done some research on this item mainly checking with the League of CA Cities to see if they had arrived at a policy position on these three propositions. He indicated that the League Environmental Policy Committee will meet on 27 September regarding these initiatives and hopefully after that time the League will have a policy on these propositions. Councilmember Odell said the League would be sending a more complete agenda on these items, but he believes that Council has already received the information from the Secretary of State's Office. Councilmember Odell said they could 5 wait until mid -October for the Leagues position or determine their own policy tonight. Councilmember Wuriu said he would like to wait and see what position the League of CA Cities takes and not have Council take any position at this time. Councilmember Odell suggested that Council might even like to send a representative to this meeting of 27 September. Councilmember Odell felt the economic impact would be better known after that date also. Councilmember Baker said he agreed with Councilmember Wuriu and wanted to wait for the League's position. Mayor Sheetz asked if anyone would like to speak on this subject. 1. Doug Pierto came forward to speak about Proposition 128. He is a Forester and teaches forestry at Cal Poly. He urged that the Council vote "no" on this proposition. He said that he is an environmentalist but the proposition encompasses too much and trys to do too much and it clearly costs too much. ✓ rti'E5 The first estimate prepared by analysts for the State Legislature sets implementation costs at $3 billion with additional unknown costs to State and local taxpayers. Other economists have estimated those unknown costs to be as much as $12 billion a year. He further stated that Proposition 128 has no funding mechanism for its multi -billion dollar costs. The only way to support this whole new bureaucracy would be to cut services or raise taxes. He felt the seniors, low income families and single parents would be the hardest hit. Councilmember Lemons pointed out an article he had read in the LA Times regarding Tom Hayden's background (the author of 128) and he felt some of these things were downright un-American and he personally could never vote for this Proposition. He also pointed out that the organization Earth First who supports these propositions, used methods to get their point of view across that are outside the law. For Council to support something proposed by an outlaw organization is totally unacceptable. He expressed the view that Council drop the subject. Councilmember Wuriu agreed at this time Council should do nothing. After the League takes a position it should be reexamined and then decide whether or not they should do anything. He expressed the view that in many instances Council really did not know, just accepted information from Public Relations firms and individuals had no real personal information. Councilmember Lemons pointed out we do have information about one of the organizations involved and did not want Council to condone the outlaw acts perpetuated by this organization. ri The general consensus of Council was to wait until the League comes out with their decision. Councilmember Odell indicated he probably would attend the League meeting as they always do an excellent analysis and he looked forward to the additional information. Councilmember Baker indicated he would also like to wait until the League made a determination. Council as a whole would like to wait until the League determination is received. NEW BUSINESS C-1 ENCUMBRANCE LIST Louise Burt, Finance Director presented this annual report. MOTION: Councilmember Lemons moved that Council approve the staff recommendation. It was seconded by Councilmember Baker and unanimously carried. (5-0) C-2 ASSIGNMENT OF LEASE SITE 8686/86W FROM H.L. YOCUM & SONS, A PARTNERSHIP, TO CLARA BELLE YOCUM, H. GENE YOCUM, AND ROBERTA ARCHULETA This item was pulled. C-3 RECOMMENDATION FOR INSTALLATION OF 4-WAY STOP SI Mr. Henderson said that back on July 9, 1990 Council had asked for a 4-way stop at this intersection, and had asked that staff review the intersection. Mr. Henderson said after review by staff and the Street Advisory Committee they both recommend installation of a 4-way stop at that location. This installation is permissible by Council order under the Vehicle Code, Section 21354, that would also restore several on street parking sites. Mr. Henderson recommended Council adopt Resolution No. 103.90. Councilmember Baker asked how parking places were restored by putting in stop signs. Mr. Boucher said with installation of stop signs removal of the red painted curb and lining down the middle of the street would restore the parking spaces. MOTION: Councilmember Lemons moved Council adoption of Resolution No. 103.90. Councilmember Wuriu seconded the motion. The motion carried by the following roll call vote. Ayes: Baker, Lemons, Odell, Sheetz, Wuriu 7 Mayor Sheetz said we would move on to Public Hearings, Reports & Appearances, and go back to C-4 and C-5. D. PUBLIC HEARINGS, REPORTS & APPEARANCES D-1 Mr. Farrel, Director Community Development stated that some time ago, he thought at the request of the Mayor this item was placed on the agenda for a general report on the status of tree removal and tree planting within the City. He stated there are a variety of regulations regarding tree removal, the most important is found in the Municipal Code, Section 1208, wherein the Public Works Dept. has jurisdiction over installing new trees, trimming, removal etc. A permit must be obtained from the Public Works Department, and no tree will be removed from the street, unless required for street improvement, public utilities, or if the tree is a hazard to a person or property. Mr. Farrel went on to explain other processes which can be taken, such as petition by citizens to take out trees, which then makes it their responsibility to replace the tree. He explained there is a master tree list which has been approved by the Planning Commission. He explained how many trees had been removed and for what reasons, and what trees are not approved. He said staff needs some assistance in updating the policy and the tree list. He said Recreation and Parks had tried to update the tree list some years ago but this had not been completed. He said that the Rotary Club had been working with the City to obtain trees to plant in City tree wells. He felt that if we could put some City program in motion it would help this effort. Councilmember Wuriu said it seemed apparent from the report that saving trees had not been totally followed by citizens of the City. He wondered if there were any penalties to citizens for not following proper procedures in regards to trees, such as fines or whatever. Mr. Farrel said he did not have a real background, but noted that recently trees had been cleared from vacant parcels without benefit of Coastal Development Permit, and in both of those cases the Community Development Department posted violations and are following through, such as obtaining retro-active permits and assessing the normal fine for construction without a building permit. He said the fine structure is so minimal that it is probably not much of a deterrent if someone did want to remove trees from their property. He said also in both of these cases there would probably have been no reason not to approve the permit had they been requested. He said the people said they were not aware of the requirement. Mr. Farrel said they are attempting to get out information to the tree services so they are aware of City policy. Councilmember Wuriu said as well as getting more trees, we need to have a positive program of getting trees planted and stop their untimely demise which seems to happen very often without anybody knowing or doing anything about it. Councilmember Baker asked about the eight eucalyptus trees removed on San Jacinto Street, between Highway 1 and Sandalwood, the reason given as tree authorized, why was it authorized? Bill Boucher said due to numerous property owner requests the Council budgeted specific funds for their removal. The complaints were dropping of limbs, bark, blocking the sun etc. Mayor Sheetz opened the hearing to the public for comments. 1. Charlie Palmer said he is very much in favor of trees and has between 40 to 50 on his property; however, he is very much against the City telling private property owners what to do in regard to those trees. He wants the option of taking out trees and replacing them when he wants. He has some Monterey Pine trees that are infested with the beetle and one of these days those 70 foot trees are going to have to come down. He said he had a Monterey Pine on City right-of-way and his property line which died. He said the City cut it down but did not remove the stump. He stated he had to hire someone to take out the stump. He also talked about the last Council meeting when Council had been talking about sewers and gutters and the people paying for drainage to haul the water away. He said the City has some responsibility to the people who live here if the people caused a problem they should be responsible for the situation, but if they did not cause the problem the City should be responsible or there is going to be an uprising. People are to be served by the City, not charged for everything that happens. 2. Nancy Bast hopes that City Council will look into modifying the Ordinance so trees can be preserved. She said she feels the tree services are fully aware of the rules and they are never penalized in anyway. There needs to be some sort of punishment so they will not cut trees without the proper notice. She thought some other tree rather than the Flowering Eucalyptus should be considered because of the root system. It is expensive for the City to remove them, plus they are often not replaced. Tree are such a valuable resource such as processing the pollutants in the air, homes for wildlife. We are a Bird Sanctuary and yet the trees are cleaned out or cut down. If we are going to call ourselves a tree City we need and ordinance to back it up. She said if the City should form a committee to address this problem she would like to be on it. 3. Catherine Walling stated that when the City was incorporated the City formed a Tree Society. She said that a survey was made dividing the City in to soil zones, of which there were five. From these findings they made a tree list to be planted in each of these zones. She said the people from Mobil Oil met with the Tree Society and re -designed their station so as to leave the trees which are still there. She feels the trees are very important and wishes the Chamber of Commerce would view them as being more important than they do. She said while working at the Natural History Museum she see people from all over the world who come to view the birds and butterflys. The habitat of the Monarch butterflys has practically been destroyed. The trees along the water have been thinned for view and the butterflys and birds need them to be dense to protect them from the elements. 4. Mary Phillips said her problems with trees is that the City allows bushes to be planted that grow to be big trees and over- grow driveways, protrude out into the street, obstructing traffic and parking. If the City allows them to be planted they should be the ones to take them down. If you pass an ordinance follow up on it. 5. Susan Mullen said she got the feeling there was another study or committee coming on this issue and she didn't feel it was necessary. The information is at hand, all that is needed is a proposal that can be commented on at the public level and then make a decision. Mayor Sheetz closed the hearing to the public. Mayor Sheetz asked Mr. Wolter or Mr. Farrel when the xeriscape would be brought to the Council. Mr. Farrel said staff had prepared an outline of a xeriscape landscaping proposal for consideration by the Planning Commission. The Planning Commission has continued the item until next month, requesting additional information before scheduling for action. The City Administrator also wants this item brought to Council as he feels it is a valuable water saving item. Mayor Sheetz indicated that after the water issue, she gets the most comments about the trees, why are they being cut down, what can be done to preserve them? Lots of concern in the community. She felt the problem is that we don't have a standard. She said when she had served on the Planning Commission 8-9 years ago, she can remember some times when they had people redesign their home so the trees would not be taken out. She feels that maybe now the Planning Commission just says OK, go ahead. Councilmember Wuriu agreed with the Mayor and said more should be done to protect the trees, and adopt some program which will provide new and appropriate trees for the area. He feels a lot of the legislation is there, it is just a matter of getting organized and set up so the existing regulations are adhered to. 10 Mayor Sheetz asked if the master tree list the City now has is the one referred to by Mrs. Walling from years ago. No need to have a study as we know where in the City certain types of trees should be planted. Mr. Wolter said there is some question as to whether the tree list is appropriate at this time. In 1976 there was an attempt to revise the list, but was not successful, partly because of the reliance on the tree committee. He stated that many of the specific trees listed for specific areas have difficulty living in that geographic area, such as the Acacia on North Main Street. These are very short lived trees is this marine climate, they experience salt burn. It is staff's contention that we need to take a good look at revising this tree list, try to keep what we have. Use trees that are available, some of which were not available at the time the tree list was made. Mayor Sheetz asked who would be undertaking this project. Mr. Farrel said probably all the staff members, Public Works, Recreation and Parks, the Planning Department. Mr. Farrel said they needed to identify also areas of trees, that for historical reasons or whatever needed to be preserved. He didn't feel there would be too many of these, but they do need to be identified. Staff would like to develop some ideas for Council consideration, anything that might be missed by current ordinances and then if there was need for a study, to present it at some later date as a budget item to Council. Councilmember Baker asked staff if the Flowering Eucalyptus was viewed as a good tree for street use. He personally does not care much for it as it drops leaves, seeds, pods etc. and he is constantly cleaning up after it as there is one in front of his place of business. After further discussion it was determined it was not the best of trees and staff is taking this into consideration when replanting as well as taking other precautions such as the wells in front of City Hall to alleviate the sidewalk raising due to the root system not being watered deeply enough. The Mayor asked if staff had not planned at one time to put trees in barrels so there would not be the sidewalk situation. Bill Boucher said that yes, Council had budgeted money for this tub project. Bill indicated staff had been looking for a special order and wanted to accommodate the different slopes and put some benches on the tub. They have not been been able to get a manufacturer to retool their plant for the scale of project the City is looking at. Mr. Boucher indicated staff would be asking for more monies at budget time to put this plan into effect. Mayor Sheetz asked about a wooden tank that had been dismantled for this project. Mr. Boucher said that staff has a tree at the yard, but did not want to put it out in public until it is fully 11 established. Also, the City does not have a regular watering plan for the trees which has also been part of the problem, due to lack of deep irrigation the trees have just had run off and the tree roots surface, making the raised sidewalk problem. Mr. Farrel said the other problem is asking homeowners to repair or replace damaged sidewalks due to the roots from the tree and then replanting with another Eucalyptus, so perhaps another species would be the answer. Councilmember Lemons cautioned staff on the amount of control the City would exercise over someonesI design as to what they would put on their lot. He said he personally had located his home so as to fit between existing pine trees on the lot and now after having lived there for some 10 years, and while the City is a bird sanctuary, with the watering restrictions it has been a great hardship due to the birds and trees, and cannot wash cars, other than with a bucket, nor can driveways or sidewalks be washed. It is also difficult to maintain good health for the Pine trees with only once a week watering. He said his and other trees in the neighborhood are turning yellow due to the stress. He suggested that when requiring replacement of trees on private property because of tree removal, the height limit enforced on buildings should also be taken into consideration with the planting of trees, so as not to obstruct views. Mayor Sheetz asked Mr. Farrel if this would not also be taken into consideration. Mr. Farrel said staff planned to put in a lot more study of the item and would also take into consideration the points raised tonight. D-2 HEARING REGARDING INCREASES IN RENTAL FEES FOR USE OF SCHOOL i1110"Zi_1bi Mr. Wolter, Director of Recreation and Parks gave a history of City use of facilities owned by the San Luis Unified School District. He said the City had historically used these facilities so taxpayers would not pay for a duplication of facilities such as swimming pool, weight room and gymnasium. He indicated that since the 1981 agreement, the City had tried unsuccessfully to make an arrangement with the school district for facility use at a minimum cost. Due to changes in staff etc. at Morro Bay High School and other school district staff, the City's use of school facilities has been intermittent, and has often created tension between the two agencies. In March 1990 at a joint City Council/Recreation Commission meeting, Council directed staff to attempt to develop a joint powers agreement with the school district to try and resolve the problems which existed: including trying to reduce the facility cancellations by the high school; and try to allow district use of City facilities at no cost; continue to offer the school district a resource officer at no cost to the school district; discuss the acquisition of Napa Ave. for use at Morro Elementary; provide for 12 joint maintenance of use areas; and continue the City's use to school facilities. Mr. Wolter said that in June of this year the City received notice from the school district that user fees will increase by 100-200%. The resulting fee increase would be charged to users as is City Council policy. The fees, without the increase are already the highest in the area and will result in negative impacts from the public. The increase is scheduled for implementation on September 10, 1990 however it has been delayed due to the school districts understanding of the problems encountered by the City. Mr. Wolter indicated that the City Administrator and the School Superintendent met to discuss the City's concerns. They have agreed to reach an agreement that would balance the needs of both the school district and the City. Mr. Wolter said that Superintendent Denton and the Assistant Superintendent were in the audience and willing to answer any questions. Superintendent Denton said he had met with City Administrator Gary Napper and was prepared to discuss the issues, but would be unable to answer any other questions as he did not know the history. He indicated they had discussed some of the problems and how they could best share the facilities for the residents of Morro Bay. By gathering the facts as they exist now and the changes since 1982, he needed to look at those facts and determine how they can save one another (school District and City) from inflated budgets, when it might be possible to trade services and considerations, which would not only be a savings to mutual budgets but develop a mutual respect and spirit of cooperation between the two organizations to serve the same people. He said he spoke not only as the Superintendent but as a 10 month resident of Morro Bay. 1. Charles Palmer said that the swimming pool at Morro Bay was built by public subscription money. one of the implications being that it would be open to the public, he does understand that the showers would run the cost up for the school. He does not object paying more, but a 100% more may be too much for some people. He remarked that some of the showers put out a lot of water plus it takes a lot of time for the hot water to reach the shower room, the school still has 7 gallon toilets so there are some changes they might make to save some money. 2. Ray Kaltenbach said in dealing with the school board in the past he had found them to be very uncooperative. He said that a good many Morro Bay citizens are Seniors and do not have children in school and yet they have to pay school taxes and yet they can deny the City use of their facilities. He felt it is a real crime. 3. Mary Phillips wondered if perhaps maybe the problem was with the Recreation and Parks Department rather than the school 13 district. If the school is not stopping the public from using the facilities she couldn't see any problem. Ms. Phillips said let the school make their money and it might lower taxes, just let them do their thing. Mayor Sheetz explained that the concern is that the school district is raising facility fees which raises City fees to the public for recreation activities. Mr. Wolter said the staff is concerned because the fee charged for use of facilities at the school are the highest in the County. The increase that is projected will result in doubling of already the highest fees in the County. If that happens people just will not participate. No access has been denied, he is just concerned about the fees. Mr. Wolter asked that Council adopt staff recommendation with one addition that the item be returned to the September 24 meeting for a status report. Mayor Sheetz indicated that the City needed to pursue a JPA Agreement with the school district. Mr. Wolter said that staff and school district representatives will be meeting the week of September 4-10 and hopefully resolve the problems and work toward an agreement. Councilmember Wuriu said that the school district is one of the biggest water users in the City and they should be aware of all the attempts to cut back. Mayor Sheetz indicated she had talked with a member of the school board recently and he is very supportive and interested in the school district doing something to bring about a cut in water use at the high school Councilmember Lemons said he had also talked with a school board member and he expressed an understanding of the problem, but beyond changing a few shower heads he didn't know that anything could be done. Councilmember Lemons said he felt that kind of attitude needed to be reexamined. MOTION: Councilmember Baker made a motion to adopt staff recommendation and bring back a status report to September 24 City Council meeting. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) 14 D-3 REQUESTS BY COUNCILMEMBER ODELL FOR RECONSIDERATION CONSERVATION AND RATIONING MEASURES IN A LEVEL 5 "Er WATER SUPPLY SITUATION". AND CONSIDERATION OF IMMF Mr. Henderson said that Mr. Wolter or Mrs. Burt could answer questions regarding the item. Mr. Wolter said at the direction of the City Administrator, the City turf areas were already receiving less water. He stated parks personnel were watering just one day a week, cutting down irrigation by about 50%. Councilmember Odell asked if Mr. Wolter had any idea how many units or gallons of water were saved by this action. Mr. Wolter said he had not had time to analyze this. Mrs. Burt said Del Mar Park had used about 900 units last month, one billing period. This is the largest park and the largest water user. Mayor Sheetz cited an incident in Santa Barbara where the Board of Supervisors had asked that grounds in a certain area be watered as it would cost thousands and thousands of dollars to replace the grounds if they died out. She wondered what the financial impact would be if the turf died in all the City Parks. Mr. Wolter said about $30,000 to reseed and not the cost for reestablishing the turf. He said historically September has been a month for cutting back on irrigation, with fog etc. hopefully we would not lose them. Del Mar Park turf is well established and should be able to survive the drought. He is most concerned about newly planted trees and shrubs. Also, compaction of turf in athletic areas is a safety hazard. Those areas should be watered. The following discussion was mostly of a speculative nature "what if," it turned hot for six weeks, timing of winter rains etc. Councilmember Baker commended Councilmember Odell on bringing this item back, feels the City should be an example of cutting back since they are asking the citizens of Morro Bay to cut back. Mayor Sheetz opened the hearing to the public. 1. Charles Palmer said he did not have any 1990 data on water use but in 1989 people with 5/8 inch meters used over 300 units. He said that there are few people in any category that are high water users. He felt in those instances either the water rates were not high enough to effect them, or they just did not care and paid the rates. With the present rate schedule he said nothing could be done about the people with a 5/8 inch meter who were using as much as people with a 2 inch meter. He felt people could be given enough jolt financially to get them to use less water. 15 2. Catherine Walling wondered why Bermuda grass was not in wider use. Mr. Wolter said that Bermuda grass needed to be overseeded in the winter and does not do well in this area. 3. Cathy Leech Morose is in favor of water conservation but is not in favor of the City discontinuing watering of City Parks. She is not sure this would get the proper message to the public. She feels there is a real need for people to be able to go to a nice green gathering place. 4. Ray Kaltenbach said he did not mind cutting back, but did not feel we should water parks and should really clamp down on the schools. He did not feel they should get away with over -use when private citizens were cooperating to conserve water. 5. Rory Livingston of the San Luis Coastal Unified School District said the schools had put themselves on a minimal watering schedule and were down to just irrigating the playing fields, their motivation being health and safety. There are over 1600 students in 3 campuses and the district is concerned about their health and safety. Not watering during the football season, would bring up the number of injuries. They actually experienced this some years back when they stopped watering the soccer field, it was very hard and they had a lot of injuries. He said they are in the process of retrofitting the old gym which is used by the people using the swimming pool. These are spring loaded valves which do shut off. He said at Del Mar School they have a new irrigation system which has a moisture detection system so the sprinklers only come on when needed rather than being on a time clock. They are planning to put in this type of system at Morro Elementary and Morro Bay High School. 6. Ann Freeman agreed with Councilmember Odell that the level 5 water rationing needs to be redefined. She cited the fact that empty vacation homes were used to arrive at the formula of 7 units average water use for permanent residents. She feel this should be reworked to take into account only the year round residents. On Item 2-B requiring residents to supply a copy of their IRS form is an invasion of privacy. It is also an inaccurate measure of who lives in a home. She cited Seniors who live on social security and reside with their children are not required to file a tax return and are not listed on anyone's tax return. She also has a question regarding the meter reading problem, we would need to know when the meter is read under Level 5 in order to monitor our water use. 7. Jane Von Koehe said she has been taking care of some property. She said since there is no one in the house she decided to use the water for the lawn since the house is for sale. She challenged everyone to come out to her house as she has fruit trees and roses and has only used 3 units of water. W. She told of numerous ways she conserves water. She expressed the view that one should be able to use water in anyway one chooses so long as you are not a water abuser but she has no answers. She does not want watering restricted in the parks as her children and other peoples' children play there. 8. Dan Reddell asked what the penalties will be if one exceeds the 7 units. Mrs. Burt, Finance Director said the plan adopted at the last council meeting, but not adopted, will allow a 100% surcharge with the first incident, with increasing financial penalties with possibility of a flow restrictor and ultimately a turn off of water service. Mr. Reddell wondered if it is legal to shut off someone's water if it exceeded 7 units. He wondered how many people in Morro Bay were exceeding that amount already and would they even get down to 7 units. He did not feel the plan, especially the shut off part was good. He felt it might be a good idea to go to a percentage rate as San Luis Obispo is doing which would encourage people to set realistic goals they could meet and avoid penalties. Mayor Sheetz closed the hearing to the public. Mayor Sheetz asked Ms. Skousen, City Attorney to respond to some of the concerns Mr. Reddell had. Mayor Sheetz said she thought the City had to provide water to its citizens. Ms. Skousen said the City could in certain circumstances shut off someones water, but frankly, felt the City would not turn off water of a family with small children because they have over -used water. She said maybe if the City could show that someone was outright wasting water the Court would uphold the City, but the City should be very careful. Ms. Skousen said she thought at the last City Council meeting the recommendation by the Public Works Director had been adopted rather than the one proposed by the City Administrator requiring IRS returns. The one in tonights packet has the IRS return proposal. She said it is illegal for any public agency to require disclosure of IRS returns. She said Council would have to determine whether a request for additional water was strictly voluntary or whether the City was requiring something it is prohibited by law from doing. Councilmember Wuriu said San Luis Obispo City had talked rather vaguely about a cut-off and no one had ever been cut off. He said unless there was an obvious waste such as water running down the gutter all day, then we might consider cut-off. He suggested a couple of changes, indicating he had voted against this item at the last meeting. He said he had thought everyone should participate in a crash emergency program, but after talking to some citizens he realized that some people had already conserved 17 0 and are already below the average, it would be unfair to ask them to conserve even more. He said the base rate of 7 units is too low. As it was pointed out there are 400 homes that are not occupied all the time, and use less than 1 unit of water. These homes should not be included when working out the average so the average should be about 8 units. He also wanted to have some appeal process. He suggested they talk with Louise Burt, Finance Director, if that could be worked out. Also, the people already above the base line would be required to cut consumption by a fixed percentage. He said in discussing this with Mrs. Burt that maybe a 15% percent savings would be realistic until the winter rains come. Councilmember Wuriu also pointed out that in times past when there wasn't such a water shortage, the City had encouraged and in fact required landscaping in some cases. If someone has been working on their landscaping for 10-20 years and have mature trees it would not be fair to penalize them if they were using more than 8 units, but rather, the percentage basis would be more fair. During the following discussion Mayor Sheetz indicated she asked people if they had a reverse osmosis system and a water softener and if so, a lot of water is being used. Mayor Sheetz took a poll of water use by the Council. Councilmember Wuriu indicated he had a reverse osmosis system which he had Culligan shut off so he can tell how much it really saves. He is reading the water meter everyday. He pointed out that time was involved in finding out about all these things and since hopefully it will last only a couple of months it should be done the simplest, fairest way possible. Mayor Sheetz said that some type of rationing program had to be in place before the City could get water from whale Rock. Councilmember Baker said at the last meeting these figures seemed OK but now he goes along with Councilmember Wurius thinking, that it is going to be very difficult to cut back people right away. He said the one area not discussed is commercial use such as restaurant owners. He said these people are very concerned because they wonder if a small business would get the same allocation as a large business; such as Kitty's Kitchen as opposed to Great American Fish Company. Mayor Sheetz asked if there could be two scales, one geared toward commercial use and one toward residential use? There are certain businesses such as laundromats and Mission Linen and that is their business, how could they cut back. Mrs. Burt said that might be a legal question, but in an emergency situation, findings could be made to distinguish between commercial and residential. Ms. Skousen said yes. Different findings could be made for commercial and residential. Commercial users are usually m required to stay in business, but the City could require a percentage cut -back, by retro fitting or some other attempt to save water. Councilmember Odell asked if motels are commercial. He said their business license probably showed them as commercial, but doesn't it really constitute a residential use? Mrs. Burt noted that they are really sort of borderline but in State reporting they are considered commercial. Mayor Sheetz also noted that allocations for trailer parks are less than motels. She asked Mr. Farrel how those figures are arrived at? Mr. Farrel said he did not have the water tables with him and couldn't say off -hand how those figures are arrived at, except to say that all are arrived at by some averaging as to past existing uses. Mayor Sheetz wondered if the table figures were arrived at when the trailer parks were smaller and now with expanded use, maybe the tables should be updated. Mr. Farrel said he could not answer that but hopefully at the second meeting in September, staff will have updated figures. Councilmember Wuriu asked Mrs. Burt about the percentage comparison, which she stated would be comparing use say of September this year with 1989's September usage. Councilmember Lemons said he is not in favor of rationing at all, but as indicated in the discussion, if we are to get water from Whale Rock or PG&E we need to have level 5 in place. Since that is the case he would like to participate in the discussion. He feels the City has imposed enough on the citizens. He mainly agrees with Councilmember Wuriu except for the 8 units. He feels it should be 9 units. All other uses such as multi -family and commercial should have a requirement to save 10-15% or whatever Council determines to be the better figure over the same month last year or an average of the last two or three years, whichever is best. Water use is seasonal and averaging and then cutting 15% in a high -use month might not give the proper figure. Councilmember Lemons also said he was willing to take anyone's word on the number of people in their home, we don't need any sort of documentation, such as an IRS form. He said the threat to shut someones water off should be removed if they exceed their allotment. Mayor Sheetz indicated she would be speaking with representatives of Whale Rock next week. Some decision needs to be made regarding amending the ordinance. She also was concerned about the turning off of someones water and wondered if we had just patterned our proposal after San Luis Obispo City, or did they actually have a provision such as this. 19 Ms. Skousen indicated this is not an ordinance and it could be amended tonight, but she needed to work out the wording so Council is clear what they are adopting. Ms. Skousen said San Luis Obispo did have a provision for turning off water but they had just sent letters instead and never actually turned off anyones water. Councilmember Lemons wondered why there would be a provision like this if the City never intended to use it. The rest of Council agreed with Councilmember Lemons. Mrs. Burt said there is a provision in the Municipal Code for turning off water if it is wasted, so there is something to fall back on. Councilmember Odell asked if everyone had a copy of Councilmember Wuriu's memo in front of them. He thought it was a good memo and said perhaps the ideas in the memo could be used. He like number 1 changing from 7 units to 8 units. On number 2 he felt 15% is a reasonable number, while Councilmember Wuriu had put 1/3% of their average, he had changed his mind after talking with citizens in the community who had been conserving water all along. Councilmember Wuriu agreed with this. As to whether it is called a surcharge or fine, Councilmember Odell felt it was indifferent. On number 4 he felt 50% of your bill for overuse and 100% for second month and 200% third month if it should happen would be OK. Councilmember Wuriu said the reason for the 50% the first month is because by the time the person got their bill they would be half way into the next month. As to the appeals process, Councilmember Odell said he was not quite sure what to do, maybe come to Council. Ms. Skousen suggested they go to Mrs. Burt, Finance Director. If the problem could not be resolved on that level, then they could appeal to the Council. Councilmember Baker asked if Mr. Gillman was still in the audience, and asked if from the meeting they had previously had, would the 15% cut be agreeable to the business community. Mr. Gillman said it was a starting point and if there was a hardship for someone they could come to Council. Councilmember Baker said in looking over the San Luis figures, 15% seemed about the lowest so he felt it was fair. Councilmember Baker proposed that all businesses be asked to cut back 15%. The Council and Ms. Skousen went through the proposal line by line with the following results: Number 1, no changes; Number 2A changed the 7 units to 8 units. 2B - from 5 units to 6 units, with a written statement to the Finance Director with addition of person or persons; 2C, commercial users reduce by 15% (based on prior usage, and then for households, number 2 from Councilmember Wuriu's letter, 15% 20 decrease, with comparison to the same month in the prior two years for both commercial and residential; D, no change; and then on number 3, 50% of first time exceeding allotment, then 100%, 200% per Councilmember Wuriu's letter number 4, as previously discussed and then take out the part about turning off water. The percentages would be taken for consecutive use. Mr. George asked if he might speak. He owns a car wash in town and indicated his usage is up because people frequent his car wash now more than ever to save on their home usage. He had some concerns as to how this 15% would affect him as his usage is obviously up to what it was in the same months a year ago. He is also putting in new, water saving equipment. Councilmember Odell suggested he document usage with the old equipment and now with the new water saving equipment and Council and staff would try to work out some equitable solution. Mr. Henderson suggested that after Council completed their changes this item should be opened to the public once again. As to the flow restrictors, Bill Boucher said they do have a lot of value in certain situations to conserve water, but he is not too sure about going into peoples homes and installing these, unless it was put in the service line and installed on the customer side of the meter. Council was not especially happy with flow restrictors, so this whole line was taken out. Councilmember Lemons had a concern about the 15% depending on how many units were used or overused, it could cost the customer a lot of money. Mrs. Burt suggested that could be a case by case decision if the Council wished. Mayor Sheetz suggested a minimum surcharge on so many units, and then 50% beyond that. It was determined that all appeals would be left to the City Finance Director, and would have to be put in writing. After that, to a City Council sub -committee and ultimately to the City Council as a whole if they were not satisfied. Mayor Sheetz reopened this item to the public. 1. Charles Palmer again reiterated the proposal he has been making to the City for the past 5 years. 2. Dale Patterson of Bay Pines Travel Trailer Park. He had some concerns about the 15% as he has a laundromat on the premises and wondered if this would apply to all his bill? He also has a pool and wondered if this should be closed. Mayor Sheetz asked how often water is changed. Mr. Patterson said it depended on many things as to how much water added, but did not 21 11 40 have a meter so could really not this particular item. He said it down 15% but he would try. say how many gallons used for could be a real problem to cut 3. Ray Kaltenbach said there was no way to be equitable to everyone. He felt the proposal was very reasonable, but in the end we just don't have the water so everyone has to sacrifice. 4. Mary Phillips said there are a lot of old/sick people in the area who would be very worried and wondered if a note from the persons doctor certifying they needed extra water would suffice? Also, will notices be sent out. Mayor Sheetz said this would be taken care of in the appeals. The City had sent out notices before and we will this time. Ann Freeman wanted to know when level 5 goes into effect, how does the City plan to read the meters? Mrs. Burt said all the customers will be noticed that level 5 is going into effect on the next full meter read after the effective date. The customer would have a reading date, the City would put on extra people if necessary to get the readings to all customers in a timely fashion. Jane Von Koehe wanted to say that she thought Councilmember Wuriu had done a good job on this water item, but felt the customer should be able to use the water in anyway they wished as long as they did not go over their allotment. She used the example that it is required to use a bucket of water to wash vehicles and since she has a van this is not possible, while she uses a brush and bucket she does have to spray it off. Councilmember Odell said he thought Ms. Von Koehe was asking if Level 5 would supercede Level 4 when it went into effect. During the following discussion it was decided this is not the case. Level 4 will remain in effect also. Council discussed the fact that everyone does have an entitlement and what one does with the water is their own business, if they meet the rationing provisions and use water on the right days. Ms. Skousen said that is not the case, a paragraph in Level 5 says that all the provisions in Level 4 are still to be met. Council still felt that as long as one stayed within their entitlement, what one did with the water was their concern. Councilmember Lemons felt one item that was overlooked is the fact that while Level 5 is being discussed it is not yet in effect, so Level 4 is in effect. MOTION: Councilmember Wuriu made a motion that the amended version of Level 5 water rationing be accepted. It was seconded by Councilmember Odell. The vote was unanimously carried by the following roll call vote. Ayes: Baker, Lemons, Odell, Sheetz, Wuriu 22 Mayor Sheetz said the last item in the Level 5 measure had not been covered. Councilmember Odell said in talking with Mr. Wolter that if they discontinued irrigation in the parks, except for the playing fields there would be a 90% savings in water. MOTION: Councilmember Odell moved City of Morro Bay cease watering of turf on City property with the exception of the playing field at Lila Keiser Park for health and safety considerations, this would go into effect immediately. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) D-4 Mr. Sullivan questioned the analysis by the attorney given on this item. Mayor Sheetz reminded Mr. Sullivan that he did have an appeal process through the courts if he did not agree with the attorney's findings. Mr. Sullivan responded by saying that he had sought legal advise on this issue and was told that his chances of his getting a hearing in a timely manner was very slim, plus he was not willing to put the mandate together himself in the 10 days allowed and did not have the money to have it done. Mayor Sheetz said this item is a public hearing and if anyone in the audience would like to address the issue to please come forward. There were none, so the item was closed to the public and returned to the Council, no action was taken. D-5 Councilmember Lemons requested this item be brought before Council to discuss washing of cars and boats with a bucket of water and washing of boats in waterfront facilities and yet they can be washed at a car wash. Mr. Henderson said Council can affirm the administrative language or close the commercial car washes. Councilmember Lemons said he did not see that these were the only two options, but rather for Council to amend the existing Ordinance. 23 Ms. Skousen said actually there are two options, Council could make their own policy interpretation, which Council is allowed to do, or revise the language in the ordinance. Councilmember Lemons said the City is not enforcing the ordinance the way it is written therefore it should be written to comply with the way they want it enforced. Mayor Sheetz opened this item to the public for comment. Jane Von Koehe said she believed it is $1.25 per car to wash or $2.50 per car as her neighbor had done. Her point is that her water did not add up to that amount, so people should use their water anyway they want. In the following discussion among Council, Councilmember Lemons said he felt his memo was fairly self explanatory, and wondered if Council really meant what it said: "washing of cars, trailers, boats, etc. is only permitted by washing with a bucket of water." If that is true then the car washes are operating illegally. He thinks that if Council meant to accept car washes it should be in the ordinance. Mayor Sheetz said she thought the ordinance was referring to cars and boats in residential uses and not commercial. Councilmember Lemons said he did not disagree with this but felt the ordinance needed correction. Councilmember Baker noted that the ordinance did not say how many buckets could be used or what size bucket, so he sees no problem in going to the car wash because one cycle at the car wash uses only 7 gallons of water. He suggested they allow car washes, but if washed at home they would still have to use the bucket. Ms. Skousen said that if Council wanted to amend the ordinance on 1-C just add the words; "commercial car washes are exempt from these provisions." MOTION: Councilmember Odell moved this language be accepted. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) C-4 RESOLUTION NO. 104- � VASP0aFCOMPY�KH5(0)0"Coo -Y.-V4 Mr. Boucher said one of the conditions was that the position of the curb and gutter be moved to accommodate two pine trees, and with the narrower street the property owner install signs, for no parking, on Bernardo Street. Mr. Boucher said this item went to the Street Advisory Committee and they found there was in fact enough footage for two driving lanes and parking. They recommended that Council restore parking by rescinding the 24 Planning Commission requirement and further for safety purposes, have a center line stripe. 1. Mr. Palmer said he was curious as to why the no parking signs had gone up, since City Council had not approved them, and the "no parking" was not enforced. He felt the real danger was not on Bernardo but rather on Napa street. Mr. Boucher responded by saying that the signs were put up by the developer before it came to Council, staff did not feel it prudent to direct the contractor not to do this on a presumed action on Council's part. Since it took a couple of weeks to get this item on Council agenda the signs have been left up but not enforced as there is no resolution for enforcement. Mayor Sheetz asked if this was normal procedure, for the contractor to put the signs in place. Mr. Boucher said yes that is the procedure. MOTION: Councilmember Lemons moved for approval of Resolution 104-90. The motion was seconded by Councilmember Odell and unanimously carried with the following roll call vote. Ayes: Baker, Lemons, Odell, Sheetz, Wuriu C-5 PROGRESS REPORT ON SEARCH FOR PROCUREMENT OF EMERGENCY WATER Bill Boucher passed out an item to Council. Mr. Henderson gave the background on this item indicating possible sources of supplemental water that may be available to us. Included are use of 2 wells on PG&E property. Also, as indicated earlier, a meeting with Whale Rock on September 5 to secure Whale Rock water, and also makeing arrangements with the County to pump water from one of the golf course wells. At Lila Keiser Park the quality of water is deteriorating quickly, so staff would like permission to acquire another desal unit to take some of the strain off the Lila Keiser wells. It will take about 2 weeks to get the unit and get it hooked up if permission is received tonight. Mr. Henderson suggested that the funds for this be taken from the Water Funds Reserve Account. Councilmember Lemons asked what the timing is if we accept the PG&E offer. Mr. Boucher said there is currently a contractor on the site and everything could be ready long before the lab analysis comes back, and staff does anticipate an RO unit needed there. Mr. Boucher said that the PG&E water is better than the water from the Lila Keiser Park wells, but worse quality than the Chorro Wells. For use of the PG&E water the City would need only to be responsible for repair and maintenance costs of those two wells while the City is using the water. Mr. Boucher said the City has offered to reconnect their preexisting City service for domestic purposes. He said the City would allow PG&E to use the 25 weaker of the two wells for their fire protection while the City would hold the stronger of the two in reserve for City domestic use. Councilmember Lemons asked if a filtration unit was needed. Mr. Boucher said only with the acquisition of surface water from Whale Rock would this be needed. Councilmember Lemons asked if the yield from the stronger PG&E well was as great as the yield we had lost from Well number 12? Mr. Boucher said slightly less. Well number 12 has not been used this summer, nor have 9A & 10A, so there is this reserve. Mayor Sheetz indicated she would send a letter of appreciation to PG&E. Mr. Boucher said that would be greatly appreciated. Mayor Sheetz moved the report be accepted for file and then made the following motion: MOTION: Mayor Sheetz made a recommendation to rent treatment unit for Lila allocation of $100,000 Replacement project. Councilmember Lemons and E. CLOSED SESSION NONE motion that the staff a second reverse osmosis Keiser Park well system and from the Water Fund Pipe The motion was seconded by unanimously carried. (5-0) F. ADJOURNMENT MOTION: Councilmember Wuriu made a motion to adjourn the meeting, it was seconded by Councilmember Baker and unanimously carried. (5-0) Recorded by: ELANE NOVAK Deputy City Clerk 26 0 a,54e�l / Sj /990 6;a�5 a,& A"�Z"4 f xode� E-7/,j�,, NOT = C E O F S P E C= AL MEET = NG NOTICE IS HEREBY GIVEN that a Special Meeting of the Morro Bay City Council is hereby called to be held on Wednesday, August 15, 1990 at 6:00 p.m. in the Veterans Memorial Hall, 209 Surf Street, Morro Bay, CA. Said Special Meeting shall be for the purpose of receiving comments on the Draft Environmental Impact Report (DEIR) of the Coastal Branch of the State Water Project, and comments regarding Morro Bay's participa- tion in the State Water Project. DATED: August 3, 1990 City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. SPECIAL MEETING - AUGUST 15, 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 at this time. When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments should normally be limited to three minutes. D-1 PUBLIC HEARING ON DRAFT ENVIRONMENTAL IMPACT REPORT (DEIR) OF THE COASTAL BRANCH OF THE STATE WATER PROJECT, AND COMMENTS REGARDING MORRO BAY'S PARTICIPATION IN THE STATE WATER PROJECT 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 SPECIAL MEETING - AUGUST 15, 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 Deborah Schulte Asst. City Attorney William Farrel Community Dev. Dir. Forrest Henderson Asst. City Adm. Nick Nichols Public Works Dir. Elane Novak Deputy City Clerk Councilmember Baker led the Pledge of Allegiance. Mayor Sheetz introduced Deborah Schulte, Assistant City Attorney. PUBLIC COMMENT Robert Enns wondered where the information from this meeting will be sent? He indicated there was public input in San Luis Obispo about two weeks ago and said Morro Bay has a local project EIR but he wanted to be sure the preliminary EIR was being discussed. Mayor Sheetz told Mr. Enns the draft EIR is for the State Water Project, not Morro Bay's local -related project. Mr. Napper indicated the lead agency on the draft EIR is the State Department of Water Resources and that is where comments will be sent. The item also includes any other comments regarding Morro Bay's prospective participation in the State Water Project. D-1 PUBLIC HEARING 00 1. Cecil Carey indicated he lived in the North end of Morro Bay and the water supply in that area is terrible. Mr. Carey, a Civil and Agriculture Engineer, has worked in water development, administration, financing, etc. for the past 44 years and believes the City does need the State Water. He said many people in Morro Bay do not realize the City has no water 1 supply at this time; he said we are applying for a license to pump 1700 acre feet per year, but we do not have the license yet. while it is probable the City will get the license, it may be restrained by the available ground water and upstream riparian rights; so basically, there is no water supply at all. State Water is essential since the safe ground water is now being depleted, and the City does need additional water supplies, either imported or developed by local supplies. In addition to State Water, we need Coastal Streams Diversion project which he is much in favor of; as a last resort, ocean desalinization which is 3-4 times more expensive than the State Water. We also need to develop and continue using the safe -yield ground water and he feels that eventually the City will need to reuse the existing Morro Bay water, about 80% of which is now going out to the ocean and unusable as effluent. Those supplies need to be developed and reused. The additional water is not just needed for the expansion of the City but for the existing supplies. He felt the comment "more water means more expansion" is a ridiculous statement. He feels drought will continue; even if we get a rainy year, we will get in drought again and must depend on hydrology throughout the state, not just in our local area, and backed up by ocean desalinization and other water supplies. 2. Dick Haidet indicated he moved here in 1979 hoping to build his retirement home which he did in 1983 after a drought period. He referred to a 1952 newspaper article indicating that Morro Bay needed water. He listed the projects which had been considered through the years; damming creeks, building a reservoir, and he felt someday they might be good, but during this drought period they need water not here. He felt we should take advantage of the State Water; it is not going to be any cheaper and we should make the commitment and go ahead with the project. He felt some people were concerned with the growth problem if we had water but felt we should control growth in some other way as we do need the water now. He felt some growth was good or the City would die. 3. Charles Palmer indicated he is an urban water manager and engineer. He feels the growth issue is being under estimated. Local government has had some problems raising local general fund monies they would like to have since Proposition 13 was passed in 1978. He felt this contributed to property being sold at inflated prices, with construction and reconstruction of buildings. Fees, licenses, etc. generated from construction enhanced the general funds. He feels one of the reasons for current water crisis is that governments encouraged building that created the water demands that encroached on the safe annual yields. Building was encouraged solely to increase the general fund tax base. He said any existing water or State water would be used by local governments to increase their growth rate. He said local governments have requested more water than they can use in the near or distant future. Any thought for long-term water conservation has been discarded already. Demands for State Water will increase as population grows until the resources will 2 not meet the demand. He said according to the DEIR, unless the State develops new water it cannot meet the supply demands they now have. 4. Sil Cadenasso, business person in Morro Bay, felt we have suffered from a lack of foresight in obtaining water, and cited our failure to get Nacimiento water and Whale Rock water. Morro Bay has had a water crisis on a regular basis and our answer has been to retrofit or stop watering lawns and a few other things which help in the short run. With State Water, we have an opportunity for an adequate water supply for the near future and he felt it was a fairly reasonable price. He preferred it to the cost of desalinization. He urged Council to vote for the State Water Project. 5. Chuck Clarke felt the adequacy of the DEIR was a very difficult issue and he had studied it thoroughly. He cited the need for action now and quoted the overdraft of safe water in San Luis Obispo County by over 61,000 acre feet per year. Overdraft conditions will continue without development of additional water supply. San Luis Obispo County overdraft is projected to increase to 89,000 acre feet per year by 2035. Local sources will not be able to satisfy these needs. He stated the need for State water is self evident. The leaders of the community need to take a stand and lead the people. He referred to a meeting he had attended in San Diego, the subject being water and the title of the report "Which Comes First Water Supply or Growth" written by a community development director in Santa Barbara referring to the need for outside water. Mr. Clarke highly recommended its reading. Water is becoming a precious commodity and we are going to have to go outside to get water. We need this State Water and the leaders need to go after it. 6. Mary Phillips agreed we need water from all sources. She stated that a staff member had told her the solution was ocean desalinization, which she disagreed with, saying it was not a satisfactory solution for long term. She is for State Water, saying in the 70's the City voted away Nacimiento water. She said the City is compelled to allow building on the vacant lots in the City as there is pipeline and taxes have been paid. She wants the City to go for all available sources of water especially the State Water at this time. She pointed out that Los Angeles is begging for water from numerous sources and if desalinization is such a great source, why have they not turned to it? 7. Bruce Risley stated at the last Council meeting when the DEIR was first presented he understood the comments would be forwarded to the State for their revising and updating the DEIR, such as items overlooked or inaccurate. He said the staff report for tonight's meeting was excellent and the DEIR does not adequately deal with the growth -inducing aspects of State Water. Mr. Risley referred to an item in the Monday Telegram Tribune which he gave to the Deputy City Clerk to become part of the 3 record forwarded to the State. The DEIR does not adequately deal with the cost of State Water. In reading the DEIR it would appear, at least in the case of Morro Bay, that 3 million dollars worth of cost would be incurred, with water not being available until 1997. He said Santa Barbara is setting up a desalinization plant for 10 million dollars, with 4,000 acre feet per year with a one and one-half year construction period. He felt Santa Barbara's study must be available to the State. When the DEIR discusses alternatives to the State Water he thinks they should seriously consider Morro Bay and San Luis Obispo sharing a local desalinization project which might be less costly and still keep control in local hands. He wondered how long implementation would take and how much it would cost the local water user if we accept State Water? 8. Dale Reddell said he supports the State Water Project and that Morro Bay should send a message to the County and other cities to get this project underway. 9. Barbara Sanders said the Blue Ribbon Committee examining growth in San Luis Obispo County was in favor of the State Water Project, and she encourages all in the County to go along with the project. 10. Robert Enns said he spoke at the DEIR meeting in San Luis Obispo and gave a compliment to the City of Morro Bay as being the first in the County to disassociate water with growth. The City has a growth ordinance and not enough water to support it. He referred to an article in the Wall Street Journal, March 15, 1990 speaking of Santa Barbara, saying; "the residents have inflicted the water shortage on themselves by refusing to join California's huge storage and delivery system". The Goleta Water District has been in court so often with local developers that they spend almost as much money on lawyers as it does in finding new water. He also referred to an article in the Morro Bay paper which said; "owning to the current water shortage in this area which is also prevalent in other sections of California water boards are cooperating on water conservation, taking steps to correct the emergency and institute a long range program to solve the water problem." This article was referring to Cayucos as the residents are restricted from yard watering until further notice. The date on the article was August 16, 1957. We need a long range plan to solve the problem; he believes the State Water Project is a good plan. 11. Donald Smith of San Luis Obispo read a letter he had sent to the City Council which questioned the costs in the DEIR and when the water would be delivered. He said desalinization is cheaper than State Water over a 25 year period. Councilmember Lemons asked Mr. Smith if he is a property owner in Morro Bay? Mr. Smith responded he is not. 4 12. Gary Gillman, President of the Morro Bay Chamber, said the Chamber is in favor of the Council taking some action to get water. The Chamber and Business Community encourages the City Council to get the water situation behind us; the time for action is now. 13. Ed Ewing was glad to see a meeting to try and solve the water problem. He felt there had been opportunities in the past, he felt some of those missed opportunities were delay tactics by one side or the other. He is in support of State Water, saying we do not know at this time if other communities are going to vote for or against, but wants the City of Morro Bay to keep it open as an option. In the meantime, work on alternatives as this could be a long, drawn -out project. He said he did not think the desal plant in Santa Barbara had cost them any up -front money; they provided the property and a company would come in and operate for so much money per acre foot. He feels Morro Bay has a lot of alternatives and options as they have in the past and hopes there is no wrangling about them but will accept the State project. 14. Dave Martin says Morro Bay has been flirting with suicide for the past 18 years as far as water is concerned. When he arrived in 1972 the City was in the midst of a water shortage. He said Joe Giannini was in charge of a meeting he attended and he felt with all the energy generated and the interest of the people that the water problem would be solved. Now after all these years and thousands of dollars have been spent on water studies, drilling of dry wells and spending more than $36,000 per month on a filter system for brackish wells, the City is still in a water crisis. He gave a history of requests for State Water and monies spent, all to no avail. He said he had attended the meeting in San Luis Obispo when the DEIR was reviewed. He said one speaker at the meeting had suggested limiting population in the State to help with the water crisis. He said he hoped this was not contagious. Another speaker said she had come from Oklahoma in 1952 and was glad the gates had not been closed at that time; she urged the County to go ahead with the State Water Project. Mr. Martin is for the project to help the well-being of the current population. 15. Dan Reddell said the one negative he heard on the DEIR is that someone said it should address growth. He felt the purpose of the EIR was not to address growth. He felt the communities of the County should address their own individual growth situation, stating that Morro Bay had done this with Measure F, with 52 houses a year maximum being built. He quoted someone as saying that if we got State Water, surplus water would go to the ocean. He does not see anything wrong with that. Also, if we had surplus water we could sell it, so either way we are a winner. Mr. Reddell asked that all the people in the audience for State Water stand up, (which they did; it was about three-quarters for and one -quarter against). His recommendation is for the City Council to vote for State Water. L� 0 16. Dan Wixom, a fourth generation Morro Bay citizen said he is in favor of the State Water Project. Mayor Sheetz closed the meeting to the public. Mayor Sheetz asked Mr. Farrel, Community Development Director since the City has Measure F is there anyway the State Water Project could impact the City's growth? Mr. Farrel stated our maximum population is limited to 12,000 by the year 2010; since we have this cap, we have growth control in place. The basis for the Measure is our limited water resource. He cited court cases in which growth control must be tied to the availability of resources. Mayor Sheetz asked Mr. Farrel if he thought the DEIR as currently written is defensible in court, if challenged? Mr. Farrel said since the growth control in Morro Bay is taken care of by Measure F, the final analysis of growth control in the EIR, which seems to be the most prominent issue, has been given short service and should be improved as indicated in the staff report. If the Council would ask the State to do that the EIR would be more defensible in court. For the benefit of the public Mayor Sheetz asked Mr. Farrel to briefly describe what was addressed in the staff report which he did. Mr. Farrel further explained his report citing deficiencies in the DEIR concerning growth -inducing impacts and supply dependability. Councilmember Lemons asked Mr. Farrel in view of the fact Morro Bay's sewer plant is designed for the year 12,000 or 2010 population as in Measure F, then water is not a growth -inducing factor in Morro Bay because there are other constraints to the development. In view of these facts, Councilmember Lemons said he thought the staff report was worded rather strongly, and he did not see where the DEIR was "wholly inadequate". Councilmember Lemons asked if the statements made in the staff report had been made to the County Board of Supervisors? Mr. Farrel said they had not been made by City staff but the issue had been raised by others. Councilmember Lemons said he felt the water issue was not the main issue and he did not want the words "as wholly inadequate" used in any report to the County from the City of Morro Bay. Mr. Farrel said the decision on what to send to the County is entirely up to the Council and the staff report is only staff analysis and the Council should discuss and send what they feel adequate, if anything. Mr. Farrel said we are dependent upon the certification of the EIR to receive State Water; we want all areas of the EIR to be properly addressed. R Councilmember Lemons said probably all these comments have already been made. Mr. Farrel indicated he had not attended any of the hearings so did not know if that were true or not. Councilmember Lemons said that based upon what he had read in the paper he assumed they had been made. Councilmember Lemons said why didn't the City send a one page letter saying in affect that section covers all the bases, rather than saying it is wholly inadequate? Mr. Farrel said in his view it is wholly inadequate, but again it is up to Council to send what they want; certain issues are weak and need to be upgraded. Councilmember Wuriu said this is a County wide EIR document and yet we can't comment on anything other than our own backyard. Councilmember Wuriu said with Measure F we have good controls in place which have worked and feels it would be out of place for Morro Bay to add lots of information. Maybe just a brief comment, beefing up a little bit in this area? Councilmember Baker felt it was rather refreshing to be in a meeting where most of the people were for a project rather than against. Councilmember Baker felt this "wholly inadequate" rather strong considering the caliber of the people who had written the DEIR. He felt the 6 pages written on the subject of growth inducement more than adequate. Councilmember Odell said that Mr. Smith claims the true cost of the project would be $2,675 acre foot as opposed to the $570 acre foot. He asked Nick Nichols, Public Works Director, if he could shed any light on this. Mr. Nichols referred to the summary report in the staff report, which is a cost comparison on the various water projects Morro Bay has been looking at. All State Water costs in that document are taken directly from the DEIR. Mr. Nichols said Mr. Smith believes the costs in the DEIR are not accurately reflected. Mr. Nichols said he could only use the information published in the public document (DEIR). Councilmember Odell referred to Mr. Carey's comments which he said were very well done. He mentioned that we don't have the rights to our groundwater, which has been discussed many times, and the City has applied for licensing 14-15 years ago. Councilmember Odell wondered if this was an inordinate amount of time? Mr. Nichols said, yes he felt this was an inordinate amount of time to obtain historical appropriative water permits. Councilmember Odell wondered if we would ever get the rights to the groundwater? 7 Mr. Nichols said Council's prediction was as good as his, he does not know why the State Water Resources Control Board is taking so long. Mr. Nichols said there were hearings in 1977 and again in 1987, and the usual turn around time is a year or two. Mr. Nichols said they continue to call the Board and ask if the City can expect a report soon, or permits, and always get the same answer of workloads, priorities, etc. Existing water uses take a lower priority than new water so in the end we are told we are on hold or low priority; we never get a report so he cannot give an answer as to how much of the groundwater applied for will be approved. Mr. Nichols said our groundwater resource is diminishing and it may be in the average rainfall year 1,723 acre feet will be available; but, the competition, agriculture use is increasing in additional acreage every year as irrigation in both basins. The water quality is a little worse each year and it is increasingly difficult to get the amount of water we want. Every year the Coastal Commission and Fish and Game reinforce their desire to see us get off groundwater. There are reports from the early 1980's that groundwater in the Chorro Creek and Morro Creek Basins in the two year drought is in overdraft. The demand exceeds the water supply; and now, we are in a 4 year drought or even a 6 year drought. So, there is not enough water to support the demands on all the basins and municipal uses take a lower priority in the environmental laws. So this year in the extended drought period, no one is getting as much water as they want. The residences and farmers in the basins are drilling new wells. Mr. Nichols said we are receiving requests for new wells at the rate of about 1 or 2 a month from the County. Councilmember Odell said if all we have is State Water which is 1,330 acre feet and we never get permits for groundwater we are getting right now, we will actually be getting about 200 acre feet of water less than we are now consuming. Mr. Nichols said that is a very good possibility and not just a couple hundred but several hundred acre feet less. During further discussion Mr. Nichols indicated staff had given Council information in the past that pointed out the community's demand for water has increased and based on historical rates of increase it is expected to increase, also expect that the existing water supply will diminish. The State Water Project is only one of many the Council should be options considering as a water supply for the future in Morro Bay. It is not either State Water or desal, or water reclamation, or San Bernardo Dam but Council has made a determination that staff should explore all of the possibilities. Mayor Sheetz referred to a meeting which took place about 5 years ago and Mr. Kennedy stating the City would not be guaranteed always having 1,300 acre feet of water and the City did need a supplemental source. Mayor Sheetz stated that applying for State Water was not going to solve the problem, we still need another supplemental source of water. Mayor Sheetz said she was not sure 0 who would get cut first in a water shortage, agriculture or non - agriculture? Councilmember Lemons said agriculture would be cut first until they get down to 50% and then the other subscribers would start taking their cuts. He thought agriculture had never taken more than a 25% cut, under the present State Water Project system, which means non-agricultural users have never been reduced. Councilmember Wuriu said it was amazing how much opposition there is to any plan for obtaining additional water for Morro Bay. He said Council thought everyone would be delighted with the Coastal Streams water project, but that did not turn out to be the case. When groups come in opposition then the project gets delayed a year, or longer, so while it is obvious State Water along will not solve our problem, without State Water we would lose one of our most valuable options for the future. Mr. Napper, referring to growth -inducing impacts, said our State Water subscription is 1,330 acre feet, San Bernardo Creek Dam would yield 1,700 acre feet, and our other projects would also yield a certain number of acre feet. When considering growth inducing impacts to Morro Bay, this theme of growth inducement will or should arise from any of these projects; and yet, the only reference has been to the State Water Project. It causes one to wonder if supporters of these other projects will say "growth inducing" when the projects are ready for final approval? Therefore Council should examine which project or projects in combination will provide a reliable, high -quality of water needed to assure community needs. Deborah Schulte referred to a comment by Mr. Farrel with regard to the inadequacy of the report. The DEIR claims that it would not be growth -inducing but that statement is based on a report that is misstated in the DEIR. The report quoted says the opposite of what the EIR quotes it as saying. Councilmember Lemons said he did not see in the DEIR where it quoted another report. During the following discussion, Ms. Schulte said it is OK to say what they say in the DEIR as long as it is based on accurate information; if the information is not accurate and since this is the draft report, now is the time to make recommendations for them to correct the inaccuracies so that the report will withstand future challenges. Mr. Farrel said that starting on page 113 through 118, it referred to growth inducement and the fact the report is not growth inducing is based on the findings in another study done in 1973. Mr. Nichols pointed out where the quote may have come from on page 113. Ms. Schulte indicated she did not have the report to show Councilmember Lemons the misquote, but it had been established that the study was misquoted. E Mayor Sheetz suggested that the Council might ask in their comments that this area be clarified. Mr. Farrel said the City Attorney had reviewed the report in question and stated that the comments were taken out of context and misquoted in the DEIR being discussed tonight. Mayor Sheetz asked that Mr. Farrel ask for clarification on this matter when he sent in comments. Mr. Farrel indicated he would do so. Councilmember Odell referred to a section that troubled him in the DEIR on page 113; in theoretical considerations, the second sentence in the paragraph says; "economic and population growth are interrelated", the rest of the paragraph referred to economy and how both are interdependent. He referred to Councilmember Wuriu's statement that we should be concerned about things in our own backyard. He referred to people moving into the area and their lack of concern as to whether or not they could get a job. We are really a retirement community here in Morro Bay and a retirement draw. To say the inability of the area to provide jobs for people will prevent growth he feels is a misstatement because it is a retirement community and this is an incorrect statement. His second concern was on page 114 of the DEIR next to last paragraph; there is an entire growth inducement chapter missing as he can not find where the added housing demand and real estate demand could be induced by the people who come here. He said that since the early 1970's there has been an influx of wealthy people who build, some due to the influx of the Diablo Canyon workers. He does not know if there is any direct correlation, but rents in Morro Bay did go up because of this; he finds no mention of this "boom town" phenomenon and would like this to be addressed in comments to the State. Mayor Sheetz indicated she had received a phone call from Mr. Jack Curry, who was unable to attend the meeting expressing his support for the State Water Project. Mayor Sheetz would like this information to be part of the minutes. Councilmember Lemons referred back to the licensing for ground water and asked Mr. Nichols if there had not been some time in a past EIR in which the comment was made by the Coastal Commission and maybe Fish and Game thought that if Morro Bay succeeded in increasing their water supply by groundwater projects, we could expect a concurrent reduction of the amount of water withdrawal in Chorro and Morro Basins. Mr. Nichols stated this comment was first heard from both agencies protesting the City's groundwater applications. The EIR for groundwater uses was done in 1986 or 1987 and also included that statement. Mr. Nichols stated the City should resist that from happening. Mayor Sheetz asked Mr. Nichols, in the event the drought turned into 7 years rather than 4, would that in any way have a long 10 range effect on the State Water Project? She stated the upper delta people are disturbed about sending water to the Los Angeles area. Mr. Nichols said if Mayor Sheetz was talking about a prolonged Statewide drought, it would have an effect on the reliability of delivery. The DEIR points out that with existing facilities, the Project has an 85% reliability of delivering a certain amount of water. The State Water system is predicated on the building of additional facilities which are presently being planned by the State Department of Water Resources; with the construction of these facilities, the yield will increase and reliability will improve. The DEIR also tries to divide local from State drought times so in the event there is a local drought, State Water will carry the area through; in the event of State drought, the local area will be able to produce enough water locally. Mr. Nichols asked Mr. Van Lauren of the County if he had any better response to the question asked. Mayor Sheetz asked Mr. Van Lauren to come forward. Mr. Van Lauren said the one point he would like to make is comments on the draft EIR should not be addressed to the County, but to the State Department of Water Resources. Councilmember Odell asked Mr. Van Lauren if he could shed any more light on the differences in numbers as quoted by Mr. Smith and the actuals shown in the DEIR; is it $2,675 per acre foot or the $600 in the report? Mr. Van Lauren said he was confident the $600 in the report is accurate. He is not sure where Mr. Smith determined his $2,600 figure, but surmises it would be from taking less than a full entitlement in the first few years. Mr. Van Lauren said that in the case of Morro Bay we would probably take our full entitlement right away so the cost would be as stated. Councilmember Odell said it was his understanding that when we signed on for the project we started paying right away whether or not we received water right away. Mr. Van Lauren said that fact has not been finalized. He said the State would not start charging for the pipeline (which is the major cost) as of the date the contract is signed. There will be at least a 1-2-3 year delay until the State accrues the cost before it can be passed on to individual cities. Nick Nichols asked Mr. Van Lauren about a potential schedule of payments received some time back which showed from the signing of the contract the first few years of payments would be quite low. Mr. Nichols asked if this was to be revised or was still in effect? Mr. Van Lauren said it was not being discussed or 11 revised at this time and it was as good a guess as any at this time. Mayor Sheetz asked about the Morro Bay spur pipeline. She indicated she had contacted the Chief Executive Officer of the Lemoore pipeline from the ocean to Lemoore. She said the letter she received back indicated this line would be evacuated as a new line is being placed in Fresno to carry the fuel. This was to have happened in December of last year. In the event that does take place in the next 7-8-9 years, would that be a possibility of bringing the water here rather than building a new pipeline which would save a lot of costs? Mr. Van Lauren said he and Mr. Nichols had been discussing that possibility and that he had written the Department of Defense in Virginia and had not yet received a response. The Public Information Officer at Lemoore Air Base has said they definitely are going to decommission the line but they are not sure they will let anyone else take it over, so they may use it again in the future if needed. Mr. Van Lauren feels it will not be of any great benefit; their tanks might be of more benefit than the pipeline due to the fact the pipeline is only 6 inches in diameter and they estimate the maximum amount of water through a pipeline that size would be about 400 acre feet. Mr. Nichols said there are two tanks and they hold five million gallons each. Mayor Sheetz suggested if we did not take the full entitlement from the State, we could store water in these tanks for reserve. Mr. Nichols said this 10 million gallons represents only about a six day supply for Morro Bay so it is not really worth the acquisition. Councilmember Lemons said it was his understanding that we would always take the 1,313 acre feet every year and if we needed additional water we would take it from groundwater. Councilmember Lemons wanted it clear for the record that there was never any question of Morro Bay not taking its full entitlement. Mr. Nichols said this is a policy decision to be made by Council as to how we access the entitlement if we have it. Assuming we have the full entitlement, build the project and use it as the baseline supply, it is the best quality water even though more expensive, compared to our groundwater, it is there every day within the limits of our entitlement, and feels the community will insist on this better water. Plus, our ground water is not as reliable and the community is having to live within the confines of our drastic water conservation limits. 12 Councilmember Wuriu asked if Mr. Van Lauren knew what would happen as far as payments to the State if the project were delayed? Is there any provision for delay on payment? Mr. Van Lauren said he did not think there is and it was certainly something that should be brought up in discussing the contract form, but the County would not absorb the delay costs from the general tax base but would want to pass along any costs from the State to the cities. Mr. Van Lauren agreed with Councilmember Lemons that the full entitlement should be taken from the start and economics dictate that; the City would be paying for the construction, delta water charges, etc. everything except for treatment and energy for any water not taken. The City would be paying 90% of the cost of water and it would make no sense to not take your full entitlement. Mayor Sheetz asked for a cost breakdown, which Mr. Van Lauren explained, saying the cost from Cuesta tunnel would be somewhere in the range of $120 - $180 acre foot. Councilmember Baker said it was also his understanding that we would take the full entitlement of 1,313 acre feet, but wondered if doing so would put any restriction on our groundwater supply? Mr. Nichols says there is a distinct possibility there will be a limitation placed on our groundwater supply, which is the tradeoff and that is the policy decision Council will have to make. If we stop using a certain amount of groundwater for a while and then as our demand increases and we want to go back to using that groundwater again there will be people who will not want us to do that because in the mean time other uses of that water will develop, either farming for irrigation or habitat restoration, native vegetation or wildlife become dependent upon the water, then Fish and Game will resist us taking it back. Fish and Game and Coastal Commission, as pointed out by Councilmember Lemons, will want us to permanently reduce use of groundwater if we get another source of water. With today's population wanting to use about 1,800 acre feet, that amount would increase 1 to 1-1/2 % per year depending on our growth rate. Mr. Farrel said we should resist losing the groundwater and try to obtain the permits for groundwater before the State Project comes on line. The City may want to acquire agricultural land and use the groundwater so we would not lose when we had excess water. This would have to be temporary use, but would be no problem if we owned the land. Mayor Sheetz wondered if the City annexed some land and made a "green belt" around Morro Bay, with the annexation of additional lands could the City have a larger entitlement of State Water? Mr. Van Lauren responded by saying the amount of land is not what determines the amount of State Water; any amount can be 13 requested. However, there is a limited amount of water for all the users in an area; asking for additional water could cause a delay as a supplemental EIR would have to be done to address the additional request. Mayor Sheetz asked what would happen if one of our neighboring users should decide to sell us their entitlement? Mr. Van Lauren said there was no problem with that, there would be no EIR required. Councilmember Lemons asked if at the present time the State Water Project was over subscribed. Mr. Van Lauren said that was the case with 28,599 acre feet being requested and an area entitlement of only 25,000 acre feet. He said some communities may not participate and that would free up some of the entitlement. Councilmember Odell asked about the quality of water and its sampling tests. In the following discussion, it was determined that the State Water project delivers raw water and the water must go through treatment to comply with health regulations. Mr. Carey said from his experience water samples are taken monthly from the State Water Project and if there is any problem samples are taken even more often, but at least every month. Mayor Sheetz again asked about getting permits for groundwater before we get the State water allocation? The Mayor asked if there was anyway we could move things along to get these permits. Mr. Napper indicated that we have been diligently checking all along as Mr. Nichols indicated earlier without any success. Mr. Napper suspects the State Department of Water Resources may be waiting for Morro Bay to get this State Water or another promising water supply and then address the situation through reductions in our groundwater extractions. MOTION: Councilmember Lemons moved that Council have staff prepare a response to the DEIR for submission to the State for City Council review and approval at next Council meeting. The motion was seconded by Councilmember Wuriu. The motion unanimously carried (5-0). Councilmember Odell was still concerned about the pesticide content in the water and wanted to be sure this comment was sent in for clarification. 14 MOTION: Councilmember Lemons moved City Council send a letter to Board of Supervisors that when the appropriate review periods are over and EIR is certified that they proceed without delay to implement the State Water Project. The motion was seconded by Councilmember Odell. The motion was approved. (3-2). Ayes: Baker, Lemons, Wuriu Noes: Odell, Sheetz Councilmember Odell said he would like to explain his "no" vote. He said he had given a lot of thought to this issue before he took office, during and now that he is leaving. He said we are in a drought, we are always in a drought and will continue to be. Councilmember Odell said there are two things that can be done; the first, assess how you are using the resource and figure out how to be more efficient or look for more. This State Water is not unlimited and the more people that compete for it the harder it will get. He thinks we are just putting off the problem by taking from one area to make life better here. He referred to Mr. Carey's comments about our need to develop our own water and said he thinks we will if we are willing to spend the money. Councilmember Odell's concern with the State Water Project is that he fears if we get this water to alleviate the current problem people will just forget all about trying to conserve water and just wait until we are in a crisis again so we will not have solved the problem. He feels we have grown more efficient; not efficient enough, but closer. Rather than being belligerent toward the farmers who use the water, we should find an incentive program for them to be more efficient with the use of water. Mayor Sheetz voted "no" because City Council was voting on a draft EIR. She wants to see the final, approved version and be sure it was definable and could not be challenged if it went further. She does not like to be premature on a decision, but wants the final word before taking action. Councilmember Baker said he believes in some of the action taken, retrofit, etc., so there is more efficiency down the road. We are now in a desperate situation probably due to some lack of foresight. He thinks Council should act now, so as not to be accused of lack of foresight from those who come after them. It appears State Water will help us now, but go ahead with the other water projects so as not to neglect any possibility of other sources of water. Councilmember Wuriu voted "yes" and wants to see what is in the final EIR. But, he seconded the motion because this Council feels a substantial majority of the people in the City want Council to move along with State Water, and that is why he voted "yes". 15 MOTION: Councilmember Lemons moved Council adjourn to Closed Session to talk about land acquisition. The motion was seconded by Councilmember Odell. Unanimously carried. (5-0) Mayor Sheetz announced Council is adjourning to Closed Session in accordance with Government Code Section 54956.8, real property negotiations concerning Domenghini Flat Lands. Council adjourned to Closed Session at 8:05 p.m., and returned to open session at 8:28 p.m. F. ADJOURNMENT MOTION: Councilmember Baker moved that the meeting be adjourned. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) The meeting adjourned at 8:28 p.m. Recorded by: -�jfiCvv�— / Gam✓^" ELANE NOVAK Deputy City Clerk W. 6 4 6 a 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 - AUGUST 13, 1990 VETERANS MEMORIAL HALL -.6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE PRESENTATION: PROCLAMATION DECLARING "GOOD NEIGHBOR MONTHS" TO UNITED WAY 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 at this time. 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 (CITY COUNCIL) 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 JULY 23, 1990 A-2 PROCLAMATION DECLARING OCTOBER 1990 AS "ENERGY AWARENESS MONTH" A-3 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (POTTS) A-4 ACCEPTANCE OF RESIGNATION FROM CABLE TELEVISION BOARD (PETER MATHER) AND AUTHORIZATION TO ADVERTISE VACANCY A-5 ACCEPTANCE OF RESIGNATION FROM DOWNTOWN SIDEWALK SALES COMMITTEE (JAYNE WICKLUND) AND COMMITTEE NOMINATION TO APPOINT VIVIAN DOUBLEDEE A-6 RESOLUTION NO. 102-90 RATIFYING MORRO BAY'S PARTICIPATION IN THE SAN LUIS OBISPO AREA COORDINATING COUNCIL JOINT POWERS AGREEMENT A-7 PROCLAMATION DECLARING THE MONTHS OF SEPTEMBER 1990 THROUGH DECEMBER 1990 AS "GOOD NEIGHBOR MONTHS" A-8 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (NORTON) A-9 RESOLUTION NO. 99-90 ACCEPTING THE ANNUAL STATEMENT OF INVESTMENT POLICY 01 �J A-10 RESOLUTION NO. 101-90 ACCEPTING OFFER OF DEDICATION OF RIGHT-OF-WAY ON KODIAK AND LUZON STREETS (GILTON; CUP 52-89) A-11 RESOLUTION NO. 100-90 REJECTING ALL BIDS ON PROJECT NO. PW 89-16, CENTENNIAL STAIRWAY RESTROOM AND STREET -END IMPROVEMENT PROJECT A-12 ADOPTION OF REVISED PROGRAM GUIDELINES FOR PHASE II OF THE CITY'S CDBG HOUSING REHABILITATION LOAN PROGRAM (1989) A-13 ACCEPTANCE OF RESIGNATION FROM WATER ADVISORY BOARD (BILL MAZZACANE), AUTHORIZATION NOT TO FILL VACANCY, AND ADOPTION OF BY-LAWS ESTABLISH- ING SEVEN MEMBER BOARD B. UNFINISHED BUSINESS NONE C. NEW BUSINESS C-1 APPROVAL OF CAPITAL PROJECT AND OPERATING ENCUMBRANCE LIST FROM FY 1989-90 BUDGET (PULLED) C-2 CONSIDERATION OF CITY POSITION ON FOREST AND WILDLIFE PROTECTION INITIATIVE AND BOND ACT OF 1990 (NOVEMBER 1990 BALLOT) C-3 STATUS REPORT ON DOWNTOWN AREA PARKING EXEMPTIONS PROGRAM AND CLARIFI- CATION OF 10% IMPROVEMENT VALUE CONTRIBUTED BY APPLICANTS TOWARDS BUILDING FACADE OR STREET AMENITIES D. PUBLIC HEARINGS REPORTS & APPEARANCES D-1 DRAFT ORDINANCE ESTABLISHING CITY POLICIES AND REGULATIONS FOR DEVEL- OPER INSTALLATION OF CURB, GUTTER, SIDEWALK AND DRAINAGE FACILITY IMPROVEMENTS D-2 ORDINANCE NO. 377 AMENDING THE WATER ALLOCATION PROCEDURES TO PROVIDE CERTAIN PRIORITIES ON RESIDENTIAL BUILDING WAITING LIST FOR CONSTRUC- TION OF LOW AND VERY LOW-INCOME AFFORDABLE HOUSING PROJECTS (INTRODUC- TION/FIRST READING) D-3 ORDINANCE NO. 376 AMENDING THE WATER ALLOCATION PROCEDURES TO PROVIDE CERTAIN PRIORITIES ON BUILDING WAITING LISTS FOR CONSTRUCTION OF CONVERSION PROJECTS NOT REQUIRING ADDITIONAL NEW WATER ALLOCATIONS (INTRODUCTION/FIRST READING) D-4 REPORT ON PROSPECT OF PERMITTING TRANSFER OF WATER EQUIVALENCIES BETWEEN PROPERTIES D-5 DISCUSSION REGARDING FEASIBILITY AND AUTHORIZATION FOR USE OF GREY WATER FOR LANDSCAPING IRRIGATION D-6 WATER ADVISORY BOARD RECOMMENDATIONS CONCERNING COMPONENTS OF CONSER- VATION AND RATIONING IN A LEVEL 5 "EMERGENCY WATER SUPPLY SITUATION" 2 0 D-7 CITIZEN'S REQUEST FOR AMENDMENT TO MUNICIPAL CODE (SECTION 13.20.090, NONTRANSFE ABILITY OF WATER EQUIVALENCY UNITS) CURRENTLY PROHIBITING TRANSFER OF TITLE UNTIL PROJECT APPROVED FOR FINAL OCCUPANCY (THOM WHITE) E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY NEGOTIATIONS; DOMENGHINI FLAT LANDS 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 6 AGENDA N0. Date_VaL Action ,.A'. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - 13 AUGUST 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 John Baker John Lemons Jeff Odell Tom Wuriu ABSENT: None STAFF: Gary Napper Judy Skousen Louise Burt Ardith Davis William Farrel Forrest Henderson Nick Nichols Horace Strong gave the invocation, Allegiance. Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Finance Director City Clerk Community Dev. Dir. Asst. City Admin. Public Works Dir. and led the Pledge of PRESENTATION: PROCLAMATION DECLARING "GOOD NEIGHBOR MONTHS" TO UNITED WAY Mayor Sheetz presented a Proclamation declaring September through December 1990 as "Good Neighbors Months" to Bill Coy, County Supervisor and on the Board of Directors of United Way, accepted. Mr. Coy the Proclamation on behalf of United Way/Neighbors Help- ing Neighbors and thanked Council for approving the Proclamation. PUBLIC COMMENT 1. Robert Enns referred to a previous statement regarding the State Water Project that Cayucos could not afford their share of the pipeline from Cayucos to Morro Bay. He stated the commu- nity of Cayucos has been working with Van Lauren of the County of San Luis Obispo and information has been given to the Environmen- tal Coordinator to change the EIR so Cayucos will be included in it. Whether or not they can afford it will be left to Cayucos to determine. They are also attempting to arrange a meeting with the Whale Rock Commission regarding possible exchange of water. He said he also agonized over Council's decision not to send a letter to the Board of Supervisors encouraging them to move quickly on the State Water Project; -he believes there is no other MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - 13 AUGUST 1990 PAGE 2 choice. Council members stated they want to hear from the pub- lic, but Council was elected to office to lead and make the decisions. 2. Mary Phillips, Ironwood, said the Solid Waste Manage- ment Board has been postponing meetings again. She said San Luis Obispo Garbage bills went up 10%, but allows $1 per bag with no fees other than that. Morro Bay should be the forerunner on this instead of the follower. 3. Ray Kaltenbach, 473 Sicily, objected to discussing the Domenghini property in Closed Session. There is no new water on that property; it is non -potable and from the same aquifer. DECLARATION OF FUTURE AGENDA ITEMS 1. Councilmember Odell requested an item be scheduled on a future agenda to reconsider the concept of reinstituting the Har- bor Advisory Board's purview of Tideland's leases. Their review would only include performance and terms of the lease; not inves- tigation of business records. A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES FROM THE REGULAR MEETING OF JULY 23, 1990 Mr. Napper recommended Council approve the minutes as submitted. A-2 PROCLAMATION DECLARING OCTOBER 1990 AS "ENERGY AWARENESS MONTH" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-3 REJECTION OF LIABILITY CLAIM AGAINST THE CITY_(POTTS) Mr. Napper recommended Council deny the claim, and authorize the City Clerk to sign and mail the rejection notice. A-4 ACCEPTANCE OF RESIGNATION FROM CABLE TELEVISION BOARD (PETER MATHER) AND AUTHORIZATION TO ADVERTISE VACANCY Mr. Napper recommended Council accept Mr. Mather's resignation, and authorize staff to advertise the vacancy. A-5 ACCEPTANCE OF RESIGNATION FROM DOWNTOWN SIDEWALK SALES COMMITTEE (JAYNE WICKLUND) AND COMMITTEE NOMINATION TO APPOINT VIVIAN DOUBLEDEE Mr. Napper recommended Council accept Ms. Wicklund's resignation, and appoint Vivian Doubledee to the Committee. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - 13 AUGUST 1990 PAGE 3 A-6 RESOLUTION NO. 102-90 RATIFYING MORRO BAY'S PARTICIPATION IN THE SAN LUIS OBISPO AREA COORDINATING COUNCIL JOINT POWERS AGREEMENT Mr. Napper recommended Council adopt Resolution No. 102-90. A-7 PROCLAMATION DECLARING THE MONTHS OF SEPTEMBER 1990 THROUGH DECEMBER 1990 AS "GOOD NEIGHBOR MONTHS" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-8 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (NORTON) Mr. Napper recommended Council deny Mr. Norton's claim, and authorize the City Clerk to sign and mail the rejection notice. A-9 RESOLUTION NO. 99-90 ACCEPTING THE ANNUAL STATEMENT OF INVESTMENT POLICY Mr. Napper recommended Council adopt Resolution No. 99-90. A-10 RESOLUTION NO. 101-90 ACCEPTING OFFER OF DEDICATION OF RIGHT-OF-WAY ON KODIAK AND LUZON STREETS (GILTON; CUP 52-89) Mr. Napper recommended Council Resolution No. 101-90. A-11 RESOLUTION NO. 100-90 REJECTING ALL BIDS ON PROJECT NO. PW 89-16. CENTENNIAL STAIRWAY RESTROOM AND STREET -END IMPROVE- MENT PROJECT Mr. Napper recommended Council adopt Resolution No. 100-90. A-12 ADOPTION OF REVISED PROGRAM GUIDELINES FOR PHASE II OF THE CITY'S CDBG HOUSING REHABILITATION LOAN PROGRAM (1989) Mr. Napper recommended Council adopt the Guidelines. A-13 ACCEPTANCE OF RESIGNATION FROM WATER ADVISORY BOARD (BILL MAZZACANE). AND AUTHORIZATION NOT TO FILL VACANCY, AND ADOP- TION OF BY-LAWS ESTABLISHING SEVEN MEMBER BOARD Mr. Napper recommended Council accept Mr. Mazzacane's resigna- tion, instruct staff not to advertise the vacancy, and set the number of Water Advisory Board members to be 7, effective immedi- ately, by revision to the By -Laws. Councilmember Lemons offered a correction to the Minutes on page 7, bottom on the page, "July" should be changed to "August". a • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - 13 AUGUST 1990 PAGE 4 MOTION: Councilmember Lemons moved for approval of the Consent Calendar with the amendment to the Minutes. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) Councilmember Wuriu referred to Bill Mazzacane's resignation from the Water Advisory Board and Chamber of Commerce. He said he worked with Bill 3 years on the Water Advisory Board and also on Chamber activities. Bill is an intelligent, diligent hard - worker; moderation is his character trait which is commendable. He is always able to maintain contacts with groups and individu- als in all parts of the political spectrum. This a trait some- times lacking in our City and we need more people like him. B. UNFINISHED BUSINESS IZto) 3 I C. NEW BUSINESS C-1 APPROVAL OF CAPITAL PROJECT AND OPERATING ENCUMBRANCE LIST FROM FY 1989-90 BUDGET (PULLED) C-2 CONSIDERATION OF CITY POSITION ON FOREST AND WILDLIFE PROTECTION INITIATIVE AND BOND ACT OF 1990 (NOVEMBER 1990 BALLOT) Mr. Napper stated this initiative will appear as Proposition No. 130 on the State's November ballot. It is sponsored by environ- mental groups and forestry experts and would provide $742 million for the State to purchase "ancient forests" for preservation. The timber industry is proposing an alternate to this initiative, Proposition 138, which would provide $300 million for urban reforestation; and, Proposition 128 is being proposed which is an environmental initiative addressing pesticides, offshore drilling, water quality, clean air issues, and redwood preserva- tion. Mr. Napper noted the City has not researched any of these Propositions, and what information there is comes from the propo- nents of Proposition 130. Councilmember Lemons asked if the League of California Cities has taken a position on the propositions. Mr. Napper said not to his knowledge. Mayor Sheetz said "The Big Green" initiative was challenged in court and upheld. Councilmember Lemons favored holding off tak- ing a position on the initiatives until the League of California Cities has considered them. Mr. Napper stated the League does not usually take a position on statewide issues unless they directly affect cities. If they do take a position, it may not be until October. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - 13 AUGUST 1990 PAGE 5 Councilmember Odell suggested the matter be re-agendized for the next meeting. In the meantime, he will try to obtain information on the other initiatives. Council agreed to place the matter on the next Agenda. Mr. Napper indicated he will contact the respective initiative headquarters and request their information. C-3 STATUS REPORT ON DOWNTOWN AREA PARKING EXEMPTIONS PROGRAM AND CLARIFICATION OF 10% IMPROVEMENT VALUE CONTRIBUTED BY APPLICANTS TOWARDS BUILDING FACADE OR STREET AMENITIES Mr. Farrel reviewed the Council's policy to allow exceptions to parking requirements for structural improvements of buildings in the downtown area under certain conditions: 1) the applicant must agree not to protest inclusion in any future parking assess- ment district; and, 2) must contribute to the improvement of the building facade or street amenities equal to 10% of the value of the building improvements. Since inception of the policy, 8 businesses have used the pro- gram; approximately 48 parking spaces have been waived. So far, all applicants have used the 10% contribution towards the build- ing facade to comply with the policy. Staff sometimes has diffi- culty determining if the improvements might have been made any- way. An alternative might be to collect 10% of the parking in - lieu fee. In general, the program is working well and there is a gradual upgrading of buildings in the downtown area. Councilmember Odell asked if there have been any parking problems because of the waiver? Mr. Farrel said he has received no spe- cific complaints and no surveys have been conducted; however, the downtown area does seem to be getting busier. No action was taken; Council concurred with the present staff practice of interpreting the program. D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 DRAFT ORDINANCE ESTABLISHING CITY POLICIES AND REGULATIONS FOR DEVELOPER INSTALLATION OF CURB, GUTTER, SIDEWALK AND DRAINAGE FACILITY IMPROVEMENTS Mr. Nichols said Council directed staff some time ago to work on developing modifications to the curb, gutter and sidewalk improvement Ordinance in connection with the development of prop- erties. The Street Advisory Committee has been working on this project and developed recommendations for Council consideration. Mr. Nichols reviewed their recommendations and noted the Planning Commission has not finished their review of the Ordinance and is not in agreement with the draft as written, Council should not approve first reading this evening. The Street Advisory Commit- tee requests any comments or suggestions for changes Council might have. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - 13 AUGUST 1990 PAGE 6 Councilmember Wuriu said it appears the only time curb, gutter and sidewalk improvements will take place is when someone spends money for improvements. He wondered if assessment districts would help. Mr. Farrel stated Council can require property own- ers to install the improvements if more than 50% of the street frontage has them. Councilmember Odell asked if the City administers a contract, would prevailing wages have to be paid? Mr. Nichols stated yes. Councilmember Lemons asked if an applicant can appeal the improvement requirements to anyone? Mr. Nichols said yes, to the City Council. Councilmember Lemons referred to Section 14.44.030 of the proposed Ordinance and asked if it is possible an appli- cant might be required to construct a storm drain? Mr. Nichols responded the Street Advisory Committee decided not to address the storm drain issue in this Ordinance; they did not want to tie this large expensive issue to curb, gutter and sidewalk improve- ments. The issue will be coming up as more properties are developed. Councilmember Baker believed the $2,000 threshold to be too low and suggested a graduated scale. He would like the Planning Com- mission's and Street Advisory Committee's opinion on those suggestions. Paul Donnelly, Chairman of the Street Advisory Committee, urged Council to take the recommendations under consideration; he will answer questions if Council has any. Councilmember Wuriu asked why the Planning Commission was taken out of the appeal process? Mr. Donnelly stated the Street Advi- sory Committee did not believe the requirements for improvements should be waived on a hardship basis because a potential appli- cant could not afford them. The standards should be applied evenly throughout the City. With regard to the storm drain issue, Mr. Donnelly stated it is a separate subject that does need to be dealt with; however, the Street Advisory Committee did not believe it reasonable to include it in the Curb, Gutter and Sidewalk Ordinance since the costs for drainage improvements are considerably more than curbs, gutters, and sidewalks. Mark Allen, Planning Commissioner, stated the Planning Commission does not think of the improvements as a hardship as much as they are in shock at the list of improvements required in relationship to the amount of money to be spent by the applicant. They favor a graduated scale of value of on -site improvements on which to base frontage improvements. If an applicant is spending $30,000 on his development, the requirement for improvements can be jus- tified, but not if they are only spending $2,000 to $5,000. The Commission would like to be able to encourage people to spend 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - 13 AUGUST 1990 PAGE 7 money on their buildings, and requirements for extensive infras- tructure improvements may discourage them. Mary Phillips, Ironwood, said Greenwood Street has curbs, gutters and sidewalks. The City should investigate how that was done. She said the City could afford to do one side of the street at a time. Harry Rodgers, 950 Morro Bay Blvd., said equal rights are some- times trampled by what the City says is important at a certain time. He said the last person on the block developing property should not be required to pay for all the improvements. The City should be helpful rather than making demands which makes a pro- ject prohibitive to the builder. Everyone uses the street and should share in improvements costs. Mayor Sheetz closed the hearing to the public. Councilmember Wuriu believes the Planning Commission should be included in any appeal process. Councilmember Odell said the $2,000 threshold is too low. Coun- cilmember Lemons agreed and stated the cost of the building improvements should be compared against the total value of the improvements required. He believes the Planning Commission should be included in the appeal process or have the ability to grant waivers. Mr. Farrel stated the existing ordinance has no way to address appeals. He noted nothing in the Ordinance pre- vents the City from taking on a project; and, people are only required to place improvements in front of their development. Mayor Sheetz asked how many years does it take to pay-off an assessment district? Mr. Nichols stated Council sets the bond pay-off period; typically 10 to 15 years. Mr. Nichols commented the cost of the off -site improvements has to be less than the cost of the on -site improvements. Councilmembers Lemons and Odell suggested other things be taken into consideration when requiring the improvements such as the neighborhood, traffic situation, safety. Also, the type of improvements; a sign installation costing more than $2,000 should not trigger expensive off -site improvements. Councilmember Odell asked how the list of streets which need to be improved was arrived at? Mr. Nichols stated the Street Advi- sory Committee took into consideration the City's Circulation Element and Storm Drain Master Plan when establishing the map. The Ordinance was returned to the Street Advisory Committee and Planning Commission with Council comments to adjust the $2,000 threshold, investigate using a graduated scale, and include an appeals procedure involving the Planning Commission. • 0 MINUTES - MORRO BAY'CITY COUNCIL REGULAR MEETING - 13 AUGUST 1990 PAGE 8 D-2 ORDINANCE NO. 377 AMENDING THE WATER ALLOCATION PROCEDURES TO PROVIDE CERTAIN PRIORITIES ON RESIDENTIAL BUILDING WAITING LIST FOR CONSTRUCTION OF LOW AND VERY LOW-INCOME AFFORDABLE HOUSING PROJECTS (INTRODUCTION/FIRST READING) Mr. Farrel stated this Ordinance was prepared at Council direc- tion to reserve 50% of the annual building allocation for low income housing, and the priority will only be granted for 100% low income housing projects. Mayor Sheetz asked what happens if there are not enough low income housing applications to use 50% of the allocations? Mr. Farrel stated the maximum is 50%; if there are no low-income applications, they can all be used for market rate residential projects. Councilmember Lemons stated the ordinance should set a date by when all low-income housing applications have to be received. He was concerned if 50% of the allocations are not immediately filled and the remaining allocated to residential, it will be possible for a low-income housing project to submit an applica- tion at a later date and take allocations away from those already awarded or expecting to build. Mayor Sheetz opened the hearing to the public for comments. Ray Kaltenbach, Sicily, asked what is considered low-cost hous- ing? Mr. Farrel said the State Department of Housing and Commu- nity Development provides guidelines to counties and cities that indicate what the median income is for families. Based on that, the definition of what is moderate and low and very low is the expression of median income. Mr. Kaltenbach recalled other low income housing in Cayucos where applicants could not qualify because their income was too low. Where is the City going to get water to allocate to low-income housing? Mayor Sheetz asked if Phase II of the People's Self -Help Housing project will qualify under this concept? Mr. Farrel stated yes. Mary Phillips, Ironwood, asked questions to which Mr. Farrel responded. She objected to grouping low-income housing in one area. Len Carpenter, 938 Pacific, suggested other incentives for low- income housing projects, such as parking and off -site improvement waivers. Mayor Sheetz closed the hearing to the public. In order to correct the problem of possible late low-income applications after the awards are made, Ms. Skousen suggested MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - 13 AUGUST 1990 PAGE 9 amendments to the Ordinance: Section 13.20.090 B, should be amended to read, "In any given year. at the time water alloca- tions are authorized by the City Council, priority on the..."; also, Section 13.20.090 C, add to the last sentence, " ..received by the City to be eligible for priority in the following year's MOTION: Councilmember Lemons moved the Ordinance be amended as suggested by the City Attorney. The motion was sec- onded by Councilmember Wuriu and unanimously carried. (5-0) Mayor Sheetz opened the amended ordinance to the public for com- ments; there were no comments, and the matter was returned to Council. MOTION: Councilmember Lemons moved Ordinance No. 377 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Napper read Ordinance No. 377 by title and number only. MOTION: Councilmember Lemons moved for approval of the intro- duction and first reading of Ordinance No. 377. The motion was seconded by Councilmember Baker and unani- mously carried. (5-0) D-3 ORDINANCE NO. 376 AMENDING THE WATER ALLOCATION PROCEDURES TO PROVIDE CERTAIN PRIORITIES ON BUILDING WAITING LISTS FOR CONSTRUCTION OF CONVERSION PROJECTS NOT REQUIRING ADDITIONAL NEW WATER ALLOCATIONS (INTRODUCTION/FIRST READING) Mr. Farrel stated this Ordinance was also prepared at Council direction to allow priority for building on sites with existing water equivalencies. The Ordinance specifies the priority is only allowed when Council does not award all water allocations permitted by the City's growth management ordinance. He noted the Alta Morro project, which hopes to access this program, has other planning requirements before they can be eligible. Mayor Sheetz opened the hearing to the public for comments. Harry Rodgers, Morro Bay Blvd., said this is a pure example of over -kill; Council is over-riding building and zoning ordinances with water restrictions. It will not change the amount of water people use by changing the building; it has nothing to do with water. Mayor Sheetz closed the hearing to the public. MINUTES - MORRO BAY COUNCIL REGULAR MEETING - AUGUST 1990 PAGE 10 Councilmember Wuriu questioned equivalencies being present on "previous" non-residential property. If a parcel had a high water use on it at one time, and was converted to a reading room, the high water use no longer exists and neither does the water. Mr. Farrel said the property could currently be vacant whereby the City could not establish the "existing" use. Councilmember Wuriu said it is dangerous to assume an amount of water used 14 years ago is still available today. Council discussed the City's Water Table by which uses are assigned water equivalency units. Mr. Farrel stated the Table is currently undergoing revision based on current water usage; the existing table was prepared in 1977 and is based on information from that time period and the early 19801s. Councilmember Lemons stated the Ordinance mentions "pre-existing" water equivalencies; he believes the Ordinance should only address actual use, or perhaps a 3-year average. Mr. Napper stated a 3-year average could get complicated when considering motels since their water use relates to occupancy. He said Coun- cil could make amendments to the Ordinance this evening, noting the reliance upon the current or a revised Water Table is a dif- ferent issue not related to deciding action on this ordinance. MOTION: Councilmember Lemons moved this Ordinance be tabled until the first meeting in December. The motion was seconded by Councilmember Odell. Councilmember Odell stated he wished to discuss the motion; Mayor Sheetz advised a motion to table cannot be discussed. Councilmember Odell withdrew his second to the motion. The motion died for lack of a second. Councilmember Odell asked why wait until December to consider this item? Councilmember Lemons stated there is no urgency to adopt the Ordinance. He said this Council is concerned with peo- ple's perceptions; he does not believe you can convince anyone more water is not being used by this approach. MOTION: Councilmember Wuriu moved the item be tabled for no more than 30 days. The motion died for lack of a second. MOTION: Councilmember Wuriu moved the Ordinance return to staff for revisions as indicated this evening. Councilmember Odell suggested the motion include the matter not return to Council until the revised Water Table is completed. Mr. Farrel stated the Table is a separate issue from this ordi- nance. Council can adopt the Ordinance and not make a special Ll MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - 13 AUGUST 1990 PAGE 11 building application. If Council's only existing" water equivalencies, eliminating Ordinance should resolve the problem. concern is the "pre - that word from the Councilmember Odell said the Water Table is being amended based on historical use; it should be more reasonable. Mr. Napper com- mented water usage is currently artificially constrained because of water conservation; therefore, the revised Water Table will be more conservative. Councilmember Odell seconded the motion to return the matter to staff for revisions. Mayor Sheetz asked Councilmember Wuriu to restate his motion. MOTION: Councilmember Wuriu moved this item be returned to staff for revisions discussed this evening, and the item return to Council when the Water Table has been revised. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) Council recessed from 8:11 p.m. to 8:22 p.m. PROPERTIESLENCIES BETWEEN Mr. Farrel stated Council requested a legal opinion on the rami- fication of transferring water from one property to another. He reviewed the possible public benefits which could be realized from this activity such as allowing transfer of equivalencies in the downtown area only in order to increase economic activity. An undesirable effect is potentially losing all laundromats in the community. He also reviewed the difficulties of administer- ing this type of program, and transferring water based on a 1977 usage which may not have been used for a number of years. Mr. Farrel suggested parameters if Council is interested in allowing the transfer of water equivalencies. Judy Skousen said Cambria allows the transfer of water equivalen- cies from one property to another under very strict procedures. There must be a finding of public benefit if Council allows transfer of water equivalencies from property to property. She is concerned that by adopting procedures to allow people to transfer water in this manner, the Council will be creating an artificial commodity and only the very wealthy will be able to access the program. Council would also have to enact restric- tions on the program so that uses such as laundromats are not financially foreclosed. Mayor Sheetz opened the hearing to the public. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - 13 AUGUST 1990 PAGE 12 Bruce Risley, 540 Piney Way, noted the proposal from Jeff Edwards to close the laundromat on Monterey and Harbor and transfer the water equivalencies to the Caratan property for residential uses was very innovative. People who use that laundromat will go to another one and use water there. He thought Mr. Edwards could have gone one step further and suggested homes discontinue use of their washing machines and transfer that water to another site. Ann Freeman, 785 Cabrillo, said this is an idea who's time has not come; the Water Table should be updated first. She agrees with the staff assessment all laundromats could be eliminated by this. She requested Council table this item until the Water Table has been revised. Mary Phillips, Ironwood, requested Council direct staff to deter- mine a way to keep the water we drink healthy. Building should be halted until water is found. Ray Kaltenbach, Sicily, agreed with Mr. Risley and the City Attorney. He said you can make figures read any way you want to. Coastal Cities are using more water than there is. Charles Palmer, 485 Estero, said a valueless piece of property in Cambria sold for $300,000 due to their water equivalency transfer policy. That could happen here; it may increase the tax base but it opens a can of worms. Jeff Edwards, 1119 6th Street, Los Osos, stated at a time of lit- tle or no rain, we must rely on little or no resources. If it means re -allocating resources which does not result in an increase in water use and allows continued economic activity, Council should seriously consider it. MOTION: Councilmember Lemons moved this item be tabled. The motion was seconded by Councilmember Odell and unani- mously carried. (5-0) D-5 DISCUSSION REGARDING FEASIBILITY AND AUTHORIZATION FOR USE OF GREY WATER FOR LANDSCAPING IRRIGATION Councilmember Odell stated grey water is waste water that comes from sources around the home, such as the washing machine. it can be used for irrigation of shrubs and trees, but cannot be used on things that come into contact with humans such as lawn or vegetable gardens, or to wash off hard surfaces; it cannot be sprayed because the bacteria would become airborne. He reviewed an illustration of a simple way to take washing machine water and divert it to the yard. He said the County and City of San Luis Obispo have a grey water ordinance to allow their people to use this system; he would like to see an identical system available to Morro Bay citizens. • r MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - 13 AUGUST 1990 PAGE 13 Mr. Napper stated this proposal does not require an ordinance change or permits; he suggested staff return to Council with pro- cedures for people to follow if they wish to install such a sys- tem. Mr. Odell noted if people wish to use the grey water from their sink or bathtub, they would have to obtain a permit. He explained the items that should not be washed in a washing machine using this system, and also said there is a list of rec- ommended cleaning products to avoid. The State Department of Health Services, and the Department of Water Resources approve the use of these systems in time of strict water restrictions. Mayor Sheetz asked what the cost of conversion is? Councilmember Odell estimated $200 to $300, plus labor. Mr. Nichols noted the City can provide guidelines to the public, but it would be the property owners' responsibility to construct the system in a way that is healthy and sanitary. Councilmember Lemons asked if the City would be liable by dis- tributing procedures and endorsing grey water systems? Ms. Skousen stated no; there are sufficient warnings and legal state- ments in the regulations. Mayor Sheetz opened the hearing to the public for comments. Mary Phillips, Ironwood, said grey water is a bacteria activator. She said to stop growth and get the State Water Project. Henry Hammer, Los Osos, said it costs approximately $300 for parts to install the grey water system. All water transported to trees and shrubs is conducted underground, thereby keeping sur- faces safe. He urged Council to adopt procedures so people can install these systems. Ray Kaltenbach thinks it is a good idea; soap and bleach kill bacteria. People with large yards would benefit. Councilmember Baker said the regulations recommend against using bleach in water to be used for irrigation. Charles Palmer, 485 Estero, suggested porous hosing for under- ground irrigation. It is probably a good idea. Mayor Sheetz closed the hearing to the public. Councilmember Wuriu commended Councilmember Odell for pursuing this subject. He is in favor of allowing the public to install grey water systems of this nature. MOTION: Councilmember Baker moved this matter be reviewed by the Water Advisory Board and any other necessary City Advisory Board to prepare the necessary documents so citizens wishing to use grey water systems for land- MINUTES - MORRO BAY •TY COUNCIL . REGULAR MEETING - 13 AUGUST 1990 PAGE 14 scape irrigation may do so. The motion was seconded by Councilmember Wuriu. Councilmember Odell suggested the Water Advisory Board also con- sider procedures to carry the grey water system further than just using washing water. Councilmember Lemons suggested any fees be waived since the pro- gram is in the public interest. Mr. Napper noted a simple pro- gram as envisioned would not involve the City from a permit or inspection standpoint; therefore, no fees are necessary or expected. The motion was unanimously carried. (5-0) D-6 WATER ADVISORY BOARD RECOMMENDATIONS CONCERNING COMPONENTS Mr. Nichols stated Council previously instructed the Water Advi- sory Board to make recommendations for a rationing program if it becomes necessary to enact one during an emergency water situa- tion. The trigger mechanism to enact the rationing program would be when the Director of Public Works determines the City's wells are incapable of re -filling the City's water storage tanks overnight due to depleted pumping capability or deteriorated water quality. The rationing procedures include a maximum use of 7 billing units per month for a family of up to 3 people (one additional unit could be added for each additional permanent res- ident); multi -family residential allowance will be 5 billing units for up to 3 people with one additional unit for each addi- tional person. He reviewed the penalties for not complying with the rationing program. Large landscape areas such as City parks and schools will reduce their landscape irrigation by 50%. A temporary moratorium on issuing building permits to new projects would be enacted. Staff also recommends Council petition the Whale Rock Commission for emergency water from their reservoir. Councilmember Wuriu asked how close the City is to declaring an emergency situation? Mr. Nichols said close; he believes the action will be necessary within the next 4 to 5 weeks or even around Labor Day. Ms. Burt explained the procedure she must go through to get computer programming time in order to set-up for rationing billing and monitoring. It will probably be October readings before a decrease in water usage will be noticed. Councilmember Wuriu said an original idea for rationing was to base it on a residences past usage; now there is a proposal based on the average of the whole City. He believes it penalizes peo- ple who are larger users. He asked if meters would be read a specific day each month? Mr. Nichols said they would do their best to at least read them in the same week every month. MINUTES - MORRO BAY PTY COUNCIL • REGULAR MEETING - 13 AUGUST 1990 PAGE 15 Councilmember Odell stated he disagreed with Number 3 in the reg- ulations; adding an extra bathroom or kitchen onto an existing residence does not increase water use. Councilmember Lemons stated if the average residential use in the City is 7 units, there must be at least 1800 residences that use over 7 units and probably 900 using more than 12 units. Some are not going to be able to cut down to 7 units. Mayor Sheetz commented one of the problems San Luis Obispo had with their rationing program is people used laundromats and car washes instead of their residential water. Councilmember Baker said if the City is in an emergency situa- tion, large landscape areas such as City parks and the schools should discontinue watering entirely. Councilmember wuriu said the 100% surcharge for exceeding the maximum water use is severe. If the average is 7 units, quite a few people are going to be affected. Mayor Sheetz opened the hearing to the public for comments. Ray Kaltenbach did not see why Council will penalize homeowners; they have been squeezed as it is. Using less water means the City get less revenue and will have to raise rates again. Perma- nent residents should have priority on water over visitors. Ann Freeman, Cabrillo Place, said Council is penalizing those who cannot meet the water requirements no matter how hard they try. The City needs to give the people a date when their meter will be read so they can be sure they do not go over the maximum. Mary Phillips, Ironwood, explained how a meter works and said people will be unable to tell exactly how much water they have used because the meter does not read by gallons of water. Mayor Sheetz closed the hearing to the public. Mayor Sheetz asked if the procedures were patterned after the City of San Luis Obispo? Mr. Nichols said they are similar; their restriction is to reduce 35% of the same amount last year, and they do not have to go below 8 units of water. Mayor Sheetz asked if whale Rock turns down the City's request for emergency water, what does the City do then? Mr. Nichols said the City is going to have to reduce the demand in the commu- nity to what is available. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - 13 AUGUST 1990 PAGE 16 Mayor Sheetz said under the worse situation, she agrees with Councilmember Baker; the City is responsible to the people rather than landscaping large areas. Councilmember Odell commented Pacific Grove allows 85 gallons per capita per day; this would be an easier way to calculate allowances rather than billing periods. Councilmember Wuriu said he will not vote in favor of a 100% or 200% surcharge; he prefers a warning before the charges are assessed. Mayor Sheetz stated a strong method of enforcement is needed for the people that are not complying. Councilmember Lemons said this is one more degradation of the living style of Morro Bay citizens. Before he votes in favor of invoking these measures, he wants the farmers to be approached again who have indicated they are willing to cease watering dur- ing this situation; get costs established and be prepared to spend money. He stated Council should also give consideration to installing a desal unit at the well at the end of Chorro Basin and treat that brackish water. Mayor Sheetz asked about the Giannini well. Mr. Nichols said Mr. Giannini may still be willing to let the City use the well. At the time the City was considering it, the water contained high TDS and nitrates. Also, it will cost approximately $100,000 for the pipeline to hook into the City system. Councilmember Lemons asked about the Domenghini wells. Mr. Nichols said Mr. Domenghini wanted money up -front just to negoti- ate. He said staff is talking to the County about use of the golf course well for an emergency situation. Councilmember Lemons said securing emergency water should be the number one priority rather than rationing measures. Mr. Nichols said con- necting with the Giannini well and/or securing another desalina- tion unit cannot be done in time for an emergency. Councilmember Wuriu asked if the City will need rationing if the Whale Rock Commission agrees to an emergency allocation? Mr. Nichols said he cannot be sure; the City must be prepared to face an emergency situation. Ms. Burt commented if a person uses 12 units instead of the maxi- mum 7 units per month, it will cost him 50C a day to use the additional water. Councilmember Lemons said if that is the case, people will probably pay rather than save the water. He said the people in San Luis Obispo can save and still not use as little as Morro Bay citizens because we have been on conservation for so long. MOTION: Councilmember Lemons moved staff pursue at a minimum emergency water from Whale Rock, Giannini well, MINUTES - MORRO BAY WY COUNCIL • REGULAR MEETING - 13 AUGUST 1990 PAGE 17 Domenghini well, and the County Golf Course well; and, that Council approve the Level 5 emergency conditions. The motion was seconded by Councilmember Baker. Councilmember Lemons amended the motion to direct a report be made at the next council meeting and every subsequent meeting on the progress of negotiations for supplemental water. The amendment was accepted by Councilmember Baker. Councilmember Odell reiterated his objection to limiting remodel- ing activities on the basis it cuts down on water use. AMENDMENT: Councilmember Odell offered an amendment to the motion to delete the parenthetical sentence in Number 3, and insert, "(This would include any restaurant expansion which would increase water use." Councilmem- ber Baker seconded the amendment. This amendment was unanimously carried. (5-0) AMENDMENT: Councilmember Wuriu moved the paragraph after 2.D. be amended to change the word "shall" in the first line to "can", and "will" in the second line to "may". Ms. Skousen asked how this will be enforced? Councilmember Wuriu suggested Council decide at the time the rationing measures go into effect. The motion died for lack of a second. AMENDMENT: Councilmember Baker moved section 2.D., the words, "...reduce their water use by 50% from 'this month last year'" be deleted; and the words, "...discontinue watering completely" be inserted. The motion was sec- onded by Councilmember Odell and unanimously carried. (5-1) MAIN The main motion with the approved amendments was MOTION: adopted with Councilmember Wuriu voting no. (4-1) D-7 CITIZEN'S REQUEST FOR AMENDMENT TO MUNICIPAL CODE (SECTION 13.20.090, NONTRANSFERABILITY OF WATER EQUIVALENCY UNITS) CURRENTLY PROHIBITING TRANSFER OF TITLE UNTIL PROJECT APPROVED FOR FINAL OCCUPANCY (THOM WHITE) Councilmember Lemons stepped down from discussion on this item because of a potential Conflict of Interest in that the subject property is across the street from his residence. Thom White read a letter he submitted to Council regarding the transfer of water equivalencies. The Harings are going through MINUTES - MORRO BAY 41TY COUNCIL • REGULAR MEETING - 13 AUGUST 1990 PAGE 18 divorce proceedings and wish to sell their property; they are on the waiting list for a water allocation. City regulations do not allow transfer of water equivalencies except for hardships such as death or bankruptcy. Mr. White believes other hardships, such as divorce, should be included. He requested relief for Mr. and Mrs. Haring, and questioned the purposes to prohibiting transfers of title. Mr. Skousen stated Section 13.20.090 originally prohibited any transfer of water equivalencies until the owner/builder had lived in the house for at least one year; the purpose was to curb spec- ulative building in Morro Bay. The requirement for one-year res- idency was deleted after legal issues were discussed as to enforcement. The existing section is legal and will stand up in court. Councilmember Wuriu asked if the Harings are in line for water equivalencies? Mr. Napper stated they are 153 on the list and could move up if some people are not ready to build when their number comes up. The water equivalencies and building permit have not been issued for this property; it will probably be at least 1992 before they are issued. Mr. Farrel explained when people get on the waiting list, they are required to show title to the property; when they pull their building permit, they are required to show title again. Some time ago, Council determined the people on the title to the prop- erty could change as long as at least one person remained the same; this would allow for changes in corporation partnerships. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the matter was returned to Council for discussion. Mr. Napper pointed out the Municipal Code Section discusses transfer of water equivalencies in specific hardships; at this time, there are no water equivalencies existing. The Harings are on a list waiting for water to build. Ms. Skousen stated Mr. White is asking Council to allow the Harings to sell their place in line; there are good reasons not to allow people to sell their place in line. Perhaps the hard- ship exemptions once the equivalencies are awarded could be expanded, but there is no good reason to allow the sale of a place in line. Councilmember Odell asked what if one of the Harings keep their name on the title? Ms. Skousen said that section of the Munici- pal Code only applies after the water equivalencies are awarded. Mr. Napper stated Council could allow for hardship case transfers for the waiting list similar to the procedures for transferring water equivalencies after they have been awarded. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - 13 AUGUST 1990 PAGE 19 Mayor Sheetz was concerned allowing people to sell their place in line would be creating a commodity. Mr. White stated in this case the Harings own property that is worth an amount of money. If you take away their place in line, it is worth nothing. He does not see why it matters if it is at the end or the beginning of the project. Councilmember Wuriu said the Council is not taking anything from them because they do not have anything. Councilmember Odell said water rights do exist as a commodity. Mayor Sheetz asked if there is rational to support Councilmember Odell's contention. Ms. Skousen said properties on the waiting list have the same value; once they get to the head of the wait- ing list and receive water, their property jumps in value. She is concerned if Council allows transfers for places in line, there will be no way to stop it. Councilmember Odell wanted to change the law to permit transfers in line under certain hardships. MOTION: Mayor Sheetz moved this item be referred to Judy Skousen for further deliberation. The motion was sec- onded by Councilmember Wuriu and carried with Coun- cilmember Lemons abstaining. (4-0-1) Councilmember Lemons returned to his Council seat. E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.8. REAL PROPERTY NEGOTIATIONS; DOMENGHINI FLAT LANDS 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 in accordance with Government Code Section 54956.8, real property negotiations concerning Domenghini Flat Lands. Council adjourned to Closed Session at 10:47 p.m. and returned to regular session at 11:30 p.m. 9 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - 13 AUGUST 1990 PAGE 20 F. ADJOURNMENT MOTION: Councilmember Odell moved that the meeting be adjourned. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) The meeting adjourned at 11:30 p.m. Recorded by: 6A �- ARDITH DAVIS City Clerk 0 0 4;2- 3, / eMr 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 - JULY 23, 1990 VETERANS MEMORIAL HALL -.6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE PRESENTATIONS: 1. RESOLUTION COMMENDING MANUEL VENANCIO FOR HIS 30 YEARS OF PUBLIC SERVICE UPON RETIREMENT FROM THE CITY OF MORRO BAY 2. RESOLUTION EXTENDING GREETINGS TO VISITING MEMBERS OF THE COMMITTEE OF YOUTH ORGANIZATIONS OF THE USSR (KMO) 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 at this time. 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 (CITY COUNCIL) 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 JULY 9, 1990 A-2 AWARD OF CONTRACT FOR PROJECT NO. PW 90-01, HARBOR PATROL FLOATING DOCKS A-3 AWARD OF CONTRACT FOR PROJECT NO. PW 90-02, ANNUAL STREET RE -STRIPING AND PAVEMENT MARKING PROGRAM A-4 AWARD OF CONTRACT FOR PURCHASE OF FIRE CHIEF ' S VEHICLE ( BID NO. 90- 197) A-5 AWARD OF BID FOR INTERDEPARTMENTAL OFFICE SUPPLIES (BID NO. FD 90-193) A-6 STATEMENT OF INVESTMENTS - JUNE 1990 A-7 EXPENDITURE REPORT - JUNE 1990 1 A-8 FY 89-90 ANNUAL REPORT ON CABLE TELEVISION FRANCHISE OPERATIONS A-9 RESOLUTION NO. 92-90 AWARDING CONTRACT FOR PURCHASE OF STREET DIVISION 2' TON DUMP TRUCK (BID NO. 90-190) A-10 APPROVAL OF COMMUNITY PROMOTIONS PROGRAM FOR FY 1990-91 A-11 RESOLUTION NO. 95-90 ESTABLISHING A FIRE LANE AND COMMERCIAL LOADING ZONE IN AN AREA ADJACENT TO THE NORTH CITY T-PIER USED FOR ALLEY PURPOSES A-12 RESOLUTION NO. 94-90 DETERMINING THE INDUSTRIAL DISABILITY OF LOCAL SAFETY MEMBER, PAUL DEIS, FOR RETIREMENT PURPOSES A-13 RESOLUTION NO. 93-90 CONFIRMING THE REPORT OF WEED ABATEMENT PROCE- DURES AND MAKING ASSESSMENTS A-14 RESOLUTION NO. 96-90 COMMENDING MANUEL VENANCIO FOR HIS 30 YEARS OF PUBLIC SERVICE UPON RETIREMENT FROM THE CITY OF MORRO BAY A-15 RESOLUTION NO. 98-90 EXTENDING GREETINGS TO VISITING MEMBERS OF THE COMMITTEE OF YOUTH ORGANIZATIONS OF THE USSR (KMO) B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 375 AMENDING SECTION 13.20.100 OF THE MORRO BAY MUNICI- PAL CODE MODIFYING THE TIME LIMIT FOR USING WATER EQUIVALENCY UNITS (SECOND READING/ADOPTION) B-2 REPORT ON INSTALLATION AND OPERATION OF REVERSE OSMOSIS WATER TREAT- MENT UNIT AT WELLS NO. 1 AND 2 B-3 SELECTION OF MEMBERS TO THE PRE-SCHOOL CHILDCARE SERVICES ADVISORY TASK FORCE C. NEW BUSINESS C-1 AUTHORIZATION FOR CITY REPRESENTATIVES TO APPEAR AT THE COASTAL COMMISSION APPEAL HEARING TO DEFEND APPROVAL OF THE PACIFIC COAST SHOPPING CENTER PROJECT (CUP 03-88/CDP 05-88R; WILLIAMS BROTHERS MARKET, INC.) C-2 REQUEST FOR CITY ATTORNEY OPINION WHETHER MEASURE H (WILLIAMS BROTHERS LAND REZONE) ON THE NOVEMBER 1990 BALLOT IS AN INITIATIVE OR A REFERENDUM D. PUBLIC HEARINGS, REPORTS & APPEARANCES D-1 ANNUAL GRANTEE PERFORMANCE REPORTS REGARDING 1989 COMMUNITY DEVELOP- MENT BLOCK GRANT (CDBG) PROJECTS: 1) PLANNING AND TECHNICAL ASSISTANCE GRANT FOR STUDY OF CONVERSION OF MOTELS TO LOW INCOME EFFICIENCY HOUS- ING UNITS; AND 2) PHASE II - HOUSING REHABILITATION LOAN PROGRAM E D-2 ORDINANCE NO. 374 AMENDING CITY'S MANDATORY WATER CONSERVATION PROGRAM ADDING AN ADDITIONAL LEVEL OF CONSERVATION, "CRITICAL WATER SUPPLY CONDITION" (URGENCY ADOPTION), AND RESOLUTION NO. 87-90 ENACTING NEW "CRITICAL WATER SUPPLY" CONSERVATION MEASURES D-3 ORDINANCE NO. 376 AMENDING THE WATER ALLOCATION PROCEDURES TO PROVIDE CERTAIN PRIORITIES FOR AFFORDABLE HOUSING PROJECTS AND CONVERSION TO PROJECTS NOT REQUIRING ADDITIONAL NEW WATER ALLOCATIONS (PULLED) D-4 CONSIDERATION OF DRAFT ENVIRONMENTAL IMPACT REPORT ON COASTAL BRANCH OF THE STATE WATER PROJECT, AND REQUEST FOR CITY LETTER TO BOARD OF SUPERVISORS URGING EARLIEST IMPLEMENTATION OF THE STATE WATER PROJECT IN THE COUNTY D-5 PROTEST HEARING FOR FORMATION OF LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT FOR BAYSHORE BLUFFS PARK, AND ADOPTION OF RESOLUTION NO. 97-90 ORDERING THE FORMATION OF BAYSHORE BLUFFS PARK MAINTENANCE ASSESSMENT DISTRICT D-6 ORDINANCE NO. 377 AMENDING SECTION 13.04.270 OF THE MORRO BAY MUNICI- PAL CODE TO REQUIRE LARGE -VOLUME WATER USERS TO INSTALL AND USE STATE- OF-THE-ART WATER -SAVING DEVICES (INTRODUCTION/FIRST READING) 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 - JULY 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 John Lemons Jeff Odell Tom Wuriu ABSENT: John Baker STAFF: Gary Napper Judy Skousen Ardith Davis William Farrel Forrest Henderson Nick Nichols Steve Wolter Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney City Clerk Community Dev. Dir Asst. City Admin. Public Works Dir. Rec. & Parks Dir. Mayor Sheetz stated Councilmember Baker is absent due to illness. Horace Strong gave the invocation, and led the Pledge of Allegiance. PRESENTATIONS: 1. RESOLUTION COMMENDING MANUEL VENANCIO FOR HIS 30 YEARS OF PUBLIC SERVICE UPON RETIREMENT FROM THE CITY OF MORRO BAY Mayor Sheetz read the Resolution commending Mr. Venancio on his 30 years of public service and retirement, and presented him with a plaque which included a laser -cut City seal in a wood back- ground with a City Key mounted below. Mr. Venancio stated the presentation was a surprise and thanked all the City people as well as the people of Morro Bay. He said he came to America 30 years ago from the Canary Islands and raised a family here; he has been an American citizen for 25 years. Steve Wolter pre- sented Manuel with retirement gifts from the City employees: a tree (canary pine) to be planted in the "City" Park with a bronze plaque at the foot of the tree in his honor, and a fishing reel to enjoy in his retirement. RESOLUTION EXTENDING GREETINGS TO VISITING MEMBERS OF THE COMMITTEE OF YOUTH ORGANIZATIONS OF THE USSR (KMO) Mayor Sheetz called the USSR citizens forward and read a Resolu- tion in their honor, presented them with chocolate city keys, and small flags and one large City flag of Morro Bay. Nickolay Sidorov made comments through an interpreter thanking the City MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 23, 1990 PAGE 2 for their welcome and gifts. The USSR citizens are visiting the United States as a Committee of Youth Organizations working with the local California Conservation Corps. Marcie Mendibles of the Conservation Corps staff and Chuck Clarke, member of the local Corps' Citizens Advisory Committee, were also present. PUBLIC COMMENT 1. Ann Freeman, 785 Cabrillo Place, stated she would like to speak on Agenda Items C-1 and C-2 when they come up. Mayor Sheetz said she could speak on those items at that time. 2. Howard Gaines, 441 Orcas, stated item A-8, Cable TV Franchise Annual Report, should be a public hearing. He noted legislation being considered by Congress which may result in some local control of rates. He suggested Council contact Congress in support of the bill. 3. Mary Phillips, 2645 Ironwood, passed two containers to Council in which she had boiled water until there was no water left. She said the residue in the bottom of the pots is being analyzed by the Health Department to see what it is. She said it is past time for Council to find the City a water source and get a commitment; don't wait until there is no water before you ask for it. 4. Ron Hillman, 420 Harbor Street, stated there is a garbage dumpster near the entrance to a restaurant on the Embarcadero. It needs cleaning and is the first thing you see when entering the restaurant. Mayor Sheetz referred him to Code Enforcement Officer Sandi Ford who will look into the complaint. DECLARATION OF FUTURE AGENDA ITEMS (CITY COUNCIL) None. A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF JULY 9 1990 Mr. Napper recommended Council approve the minutes as submitted. FLOATING DOCKS CONTRACT FOR PROJECT NO. PW 90-01, HARBOR - Mr. Napper recommended Council waive the bid irregularity in the low bidder's proposal, and award the project to Associated Pacific Constructors in the amount of $111,577; and, appropriate $10,000 from the Harbor Fund Street Maintenance Reserve and $11,312 from the Harbor Revetment Reserve to supplement project funding. 6 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 23, 1990 PAGE 3 A-3 AWARD OF CONTRACT FOR PROJECT NO PW 90-02 ANNUAL STREET RE -STRIPING AND PAVEMENT MARKING PROGRAM Mr. Napper recommended Council waive the bid irregularity and award the contract to Safety Striping Service, Inc. in the amount of $19,729.76. A-4 AWARD OF CONTRACT FOR PURCHASE OF FIRE CHIEF'S VEHICLE (BID NO. 90-197) Mr. Napper recommended Council award the bid to Hysen-Johnson Ford in an amount not to exceed $18,000 for a 4X4WD Ford Explorer; and, allocate $1,000 from FY 90-91 General Fund Contin- gencies to the capital project amount. A-5 AWARD OF BID FOR INTERDEPARTMENTAL OFFICE SUPPLIES (BID NO FD 90-193) Mr. Napper recommended Council award the contract to Standard Discount Office Supply of Baywood Park. A-6 STATEMENT OF INVESTMENTS - JUNE 1990 Mr. Napper recommended Council receive the report for file. A-7 EXPENDITURE REPORT - JUNE 1990 Mr. Napper recommended Council approve the Report as submitted. A-8 FY 89-90 ANNUAL REPORT ON CABLE TELEVISION FRANCHISE OPERATIONS Mr. Napper recommended Council receive the Report for file. A-9 RESOLUTION NO. 92-90 AWARDING CONTRACT FOR PURCHASE OF STREET DIVISION 2' TON DUMP TRUCK (BID NO 90-190) Mr. Napper recommended Council award the contract to Central Valley Truck Center in the amount of $31,683.75. A-10 APPROVAL OF COMMUNITY PROMOTIONS PROGRAM FOR FY 1990-91 Mr. Napper recommended Council approve the Program as submitted by the Community Promotions Committee. A-11 RESOLUTION NO 95-90 ESTABLISHING A FIRE LANE AND COMMERCIAL LOADING ZONE IN AN AREA ADJACENT TO THE NORTH CITY T-PIER USED FOR ALLEY PURPOSES Mr. Napper recommended Council adopt Resolution No. 95-90. A-12 RESOLUTION NO 94-90 DETERMINING THE INDUSTRIAL DISABILITY OF LOCAL SAFETY MEMBER. PAUEIS. FOR RETIREMENT PURPOSES Mr. Napper recommended Council adopt Resolution No. 94-90. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 23, 1990 PAGE 4 A-13 RESOLUTION NO. 93-90 CONFIRMING THE REPORT OF WEED ABATEMENT PROCEDURES AND MAKING ASSESSMENTS Mr. Napper recommended Council adopt Resolution No. 93-90. A-14 RESOLUTION NO. 96-90 COMMENDING MANUEL VENANCIO FOR HIS 30 YEARS OF PUBLIC SERVICE UPON RETIREMENT FROM THE CITY OF MORRO BAY Mr. Napper recommended Council adopt Resolution No. 96-90. A-15 RESOLUTION NO. 98-90 EXTENDING GREETINGS TO VISITING MEMBERS OF THE COMMITTEE OF YOUTH ORGANIZATIONS OF THE USSR (KMO) Mr. Napper recommended Council adopt Resolution No. 98-90. Councilmember Odell requested Item A-1 be pulled for separate consideration, and Councilmember Lemons requested Items A-5 and A-12 be pulled. A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF JULY 9. 1990 Councilmember Odell offered a correction to the Minutes, pages 8 and 9 where he discusses drip irrigation systems; he would like the word "automated" inserted before "drip" (Paragraph 4, page 8, under D-2; and paragraph 9, page 9). A-5 AWARD OF BID FOR INTERDEPARTMENTAL OFFICE SUPPLIES (BID NO. FD 90-193) Councilmember Lemons asked if there is a City provision to allow Council to award bids to local suppliers as long as it is within a certain percentage of the low bid? Mr. Napper said no. Coun- cilmember Lemons believes the City should consider such a provi- sion in the future. A-12 RESOLUTION NO. 94-90 DETERMINING THE INDUSTRIAL DISABILITY OF LOCAL SAFETY MEMBER, PAUL DEIS. FOR RETIREMENT PURPOSES Councilmember Lemons stated the last sentence in the City Admin- istrator's Determination of Industrial Disability says Mr. Deis has "rejected/accepted" the rehabilitation program; which is it? Mr. Henderson stated the word "rejected" should be crossed out; at the time the staff report was prepared, it was unknown if Mr. Deis had accepted the program but he has now. MOTION: Councilmember Odell moved for approval of the Consent Calendar including the amendment to the minutes and Item A-12. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) Councilmember Wuriu believed a discussion regarding Cable TV is appropriate. Although there are no specific problems, he said it will be healthy to let people discuss the issue. Mr. Henderson MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 23, 1990 PAGE 5 stated the City has a Cable TV Franchise Board to discuss issues such as those raised by Mr. Gaines, and the public is invited to attend. The next meeting is scheduled for Thursday, July 26th at 5:30 p.m. in the City Hall Conference Room. B. UNFINISHED BUSINESS B-1 ORDINANCE NO 375 AMENDING SECTION 13 20 100 OF THE MO RO BAY MUNICIPAL CODE MODIFYING THE TIME LIMIT FOR USING WATER EQUIVALENCY UNITS (SECOND READING/ADOPTION) Mr. Napper stated this will be the second reading and adoption of an Ordinance to amend existing procedures to coincide the life of water equivalencies awarded with the life of other permits issued on the same project. This ordinance will become effective August 22nd. MOTION: Councilmember Wuriu moved Ordinance No. 375 be read by title and number only. The motion was seconded by Councilmember Lemons and unanimously carried. (4-0) Mr. Napper read Ordinance No. 375 by title and number only. MOTION: Councilmember Odell moved for the adoption of Ordinance No. 375 as second and final reading. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) B-2 REPORT ON INSTALLATION AND OPERATION OF REVERSE OSMOSIS WATER TREATMENT UNIT AT WELLS NO. 1 AND 2 Mr. Nichols reviewed the problems with continued deterioration of water quality in the Morro Creek Basin. This is due to the lack of rainfall causing no recharge of the groundwater aquifer. An emergency desalination unit was installed to improve the quality of water from the Morro Basin wells. Mr. Nichols reviewed the procedures taken to install this unit and water quality testing processes to ensure safety of water to the customer. He said July 3rd water samples showed bacteria in the water to only two service connections: Wixom Concrete and Keiser Park. The unit was shut-off until the problem could be corrected, and disin- fected water was distributed to the two connections. Mr. Nichols noted the desal unit is not a permanent water supply; it is only to improve the quality of water from the Morro Basin until the Basin is recharged. Mayor Sheetz asked if the health of the citizens was affected at any time from the desal unit water? Mr. Nichols stated no, the Health Department stated there is little likelihood of danger; however, the City was required to notify the users anyway. Mayor Sheetz asked why there is a layer of film on Morro Bay cof- fee? Mr. Nichols stated the water quality has a lot to do with 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 23, 1990 PAGE 6 that; it is a result of water hardness, TDS, and natural oils from the coffee bean. Councilmember Wuriu asked if the problem of having bad water one day and terrible water the next is a pattern that will continued? Mr. Nichols stated it will continue until the rains start and the Basin is recharged; he knows of no reason for the variations from one day to the next, and it is unrelated to the desal unit's operation. Councilmember Lemons asked if the water quality would be worse without the reverse osmosis unit? Mr. Nichols stated yes; the Unit treats water from City wells producing non -potable brackish water. This low-level TDS water is blended with water from the Keiser Park wells, thereby improving the overall quality of water. Councilmember Lemons questioned the water sampling pattern of the City. Mr. Nichols explained the sampling process: as a result of complaints from Mary Phillips and others, the City is taking samples from different locations and sending them to a lab for analysis. It takes approximately 2 weeks to get the results. Councilmember Odell asked if running the brine water through the sewage plant will be detrimental to the sewage treatment plant? Mr. Nichols stated the Regional Water Quality Control Board has no concerns; the brine is 1/3 the salinity of sea water. Councilmember Wuriu asked who pays the rent if the unit breaks down? Mr. Nichols stated the City does; it is part of the contract. No action was taken on the report; information only. B-3 SELECTION OF MEMBERS TO THE PRE-SCHOOL CHILDCARE SERVICES ADVISORY TASK FORCE Mr. Napper stated Council, at their last meeting, created a 5 member advisory committee to research the problems of establish- ing pre-school childcare services. Council directed the Recre- ation and Parks Commission select one of their members to be on the committee, bringing the total membership to 6. The Commis- sion selected Sandra Young as their representative. Council also directed their members submit nominations for the Task Force to be considered at this meeting; 8 nominations from Council were received, and it is now in order for Council to select 5 of those to serve on the committee. Mr. Napper requested Council also set guidelines for the committee to work within. Mayor Sheetz stated one additional nomination, Julie Loe, had been submitted this evening, so a total of 9 nominations will be considered. She requested Council write 5 of the 9 nominations on paper to be tallied by the City Clerk. She suggested those not chosen for the committee be designated as alternates to serve in the absence of a committee member. While the nominations were • 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 23, 1990 PAGE 7 being tallied, Mayor Sheetz discussed a charge for the Committee to include an inventory of childcare resources, i.e., home provider or licensed day-care services; evaluate childcare needs and recommend appropriate programs; assist potential childcare providers in working with City regulations to see if any can be alleviated to make it easier to establish day-care centers; research funding sources. Councilmember Lemons favored giving the committee a mission statement of their objectives and purpose for being. He believed they should investigate grants that are available, inventory, current facilities, and research ways in which the City could lighten its permitting or regulatory requirements. Mayor Sheetz asked Mr. Wolter if he understood the Council's intent for Committee direction? Mr. Wolter said yes, but wanted to clarify the term "childcare" which spans a lot of ages. He understands Council wants to focus on pre-school age children, not school age. Council agreed. Ms. Davis announced those selected by Council to serve on the Committee are Elizabeth Clarke, Pat Dilbeck, Julie Loe, Linda Donnelly, and James McCallum. Mayor Sheetz stated the alternates to the Committee are Susan Eisenzimmer, Helen Kennedy, Rosemary Strickland, and Mary Phillips. Mayor Sheetz stated since it is after 7:00 p.m., Council will now handle the Public Hearing items. D. PUBLIC HEARINGS REPORTS & APPEARANCES D-1 ANNUAL GRANTEE PERFORMANCE REPORTS REGARDING 1989 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECTS: 1) PLANNING AND TECHNICAL ASSISTANCE GRANT FOR STUDY OF CONVERSION OF MOTELS TO LOW INCOME EFFICIENCY HOUSING UNITS; AND 2) PHASE II - HOUSING REHABILITATION LOAN PROGRAM Mr. Napper reviewed the progress reports for the two CDBG awards from 1989: a $30,000 Planning and Technical Assistance Grant to study the feasibility of converting older motel rooms into sin- gle -room occupancy units for full-time housing of low-income, handicapped, or single seniors; and, a $500,000 grant for Phase II of the City's Housing Rehabilitation Loan Program. Mr. Napper stated the performance reports are a requirement of the grant agreement; no Council action is necessary. Mayor Sheetz opened the hearing to the public for comments; no comments were received and the hearing was closed. Councilmember Lemons questioned notation on the Housing Rehabili- tation report stating the "waiting list has been notified ... no applications received...". Tina Metzger of People's Self -Help Housing stated they will start receiving applications -au-Iy 1st. *August - (corrected 8-13-90 Council meeting) 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 23, 1990 PAGE 8 Mr. Napper noted the waiting list remains from the first loan program. MOTION: Councilmember Lemons moved the City Administrator be authorized to sign the reports. The motion was sec- onded by Councilmember Odell and unanimously carried. (4-0) D-2 ORDINANCE NO 374 AMENDING CITY'S MANDATORY WATER CONSERVA- TION PROGRAM ADDING AN ADDITIONAL LEVEL OF CONSERVATION. "CRITICAL WATER SUPPLY CONDITION" (URGENCY ADOPTION). AND RESOLUTION NO. 87-90 ENACTING NEW "CRITICAL WATER _SUPPLY" CONSERVATION MEASURES Mr. Napper stated there are two separate issues in this agenda item: Ordinance No. 374 to establish an additional level of con- servation entitled "Critical Water Supply Condition"; and, a Res- olution implementing the new Level 4. Mr. Nichols stated Council requested changes to the proposed ordinance at the last meeting. Those changes were submitted to the Water Advisory Board (WAB) for their input. With regard to the Council's request for exemptions to the one -day -per -week watering schedule to allow for weekend watering, the WAB con- cluded it would be impractical to implement exemptions and diffi- cult to enforce. They contend if Council believes it necessary to maintain the 2-day per week watering schedule or allow weekend exemptions, there is no reason to consider the ordinance. Mr. Nichols stated staff has attempted to provide an exemption in the ordinance per Council instructions; however, staff agrees with the WAB position to establish one -day -per -week watering. Councilmember Wuriu commented the restrictions are harder than necessary with regard to time periods for washing cars to coin- cide with irrigation restrictions. MOTION: Councilmember Wuriu moved Section D.l.c. be amended to delete the words "...during specified outdoor irriga- tion hours and only...". The motion was seconded by Councilmember Lemons and unanimously carried. (4-0) Councilmember Odell questioned the prohibition against using potable water for washing down buildings before painting; the last level allowed washing with a bucket and brush. Mr. Nichols stated during this critical level it is believed people should wait until after the drought to re -paint their homes. Councilmember Odell said vegetable gardens should be exempt from the irrigation schedule; they have to be watered more than once a week to be maintained. Councilmember Lemons agreed there should be an exception for non-commercial vegetable gardens. Council discussed the language to be inserted to allow this exception. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 23, 1990 PAGE 9 MOTION: Councilmember Odell moved non-commercial vegetable gar- dens be exempt from the requirements of the section. The motion was seconded by Councilmember Lemons. Ms. Skousen requested Council use the words "non-commercial food crop gardens". Councilmember Odell amended his motion to add the sen- tence, "Non-commercial food crop gardens are exempt from these restrictions." to Section D.2.b. The amend- ment was accepted by Councilmember Lemons and the motion was unanimously carried. (4-0) Mayor Sheetz opened the hearing to the public for comments on the Ordinance and amendments. Ray Kaltenbach, 473 Sicily, stated he was on a trip for 3 weeks during which time his plants were not watered; they are still living. Mary Phillips, 2645 Ironwood, said Council should allocate so much water per family and let them use it anyway they want. If a person would rather miss a bath and water their garden instead, they should be allowed to do so. Mel Lees, Bayshore Village, said Ms. Phillips' idea is the fairest way to allocate water. He asked why Council is allowing lawn watering at all if the City is in a critical situation? He said tourists should be cut out during the critical time. Howard Gaines, 441 Orcas, said he has a fruit and vegetable gar- den; if it is foggy, he only waters once a week. He said what a person does with the water allocated to him is his business, and automatic sprinklers should be cut out. Let tourists know about the City's critical water level; the citizens are paying the bill for the tourist and the sacrifice should be equal. Sandi Ford, City Code Enforcement Officer, said she is distribut- ing pamphlets to motels and recreational facilities so the tourists will know there is a water shortage. Nancy Bast, 450 Fairview, said Cambria has a banner across town stating they are experiencing a water shortage, and suggested Morro Bay do the same with its banners. Sue Mullen, 985 Pacific, said Santa Barbara has signs on the mir- rors and in showers in motel rooms concerning saving water. She does not believe we perceive the gravity of the situation; we are living in a desert. Keep it simple as it creates one more level of enforcement. Ed McCracken, 2439 Hemlock, said water is not saved by watering 2 times per week; watering as needed conserves more. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 23, 1990 PAGE 10 Ron Hillman, 420 Harbor Street, said lawns can be neglected but he is concerned about the trees. They take 15 to 16 years to grow and are showing stress now due to lack of water. Mayor Sheetz closed the hearing to the public. She asked Coun- cilmember Odell to explain what grey water is. Councilmember Odell stated it is waste water in the home that is not sewage; i.e., washing machine, shower, sink. It is not legal to use grey water in this County, but the policy may change. There will be an agenda item soon to discuss this matter. It cannot be used where it will come into human contact such as grass or vegetables. Mayor Sheetz asked Council if they agree to delete the exception to outdoor irrigation in Section D.2.b? MOTION: Councilmember Wuriu moved the language in Section D.2.b involving weekend exceptions to outdoor irrigation be deleted. The motion was seconded by Mayor Sheetz and unanimously carried. (4-0) Mayor Sheetz opened the hearing to the public concerning this last amendment; there were no comments and the hearing was closed to the public. MOTION: Councilmember Wuriu moved Ordinance No. 374 be read by title and number only. The motion was seconded by Mayor Sheetz and unanimously carried. (4-0) Mr. Napper read Ordinance No. 374 by title and number only. MOTION: Councilmember Wuriu moved for adoption of Ordinance No. 374 as an urgency ordinance. The motion was seconded by Councilmember Lemons and unanimously carried. (4-0) Mayor Sheetz asked Mr. Nichols if the City has reached the point where new Level 4 should be implemented? Mr. Nichols stated he and the Water Advisory Board believe it is appropriate to imple- ment Level 4 tonight. MOTION: Councilmember Lemons moved for adoption of Resolution No. 87-90. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) Councilmember Wuriu asked about the suggestion to allocate a cer- tain amount of water to individual households? Mr. Nichols stated that will be a Level 5 measure which includes rationing. The Water Advisory Board will consider Level 5 conservation mea- sures at their next meeting. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 23, 1990 PAGE 11 D-4 CONSIDERATION OF DRAFT ENVIRONMENTAL IMPACT REPORT ON COASTAL BRANCH OF THE STATE WATER PROJECT, AND REQUEST FOR CITY LETTER TO BOARD OF SUPERVISORS URGING EARLIEST IMPLE- MENTATION OF THE STATE WATER PROJECT IN THE COUNTY Mr. Napper stated there are two sections to this item: considera- tion of the draft EIR for the Coastal Branch of the State Water Project; and, Councilmember Lemons' request to write a letter to the Board of Supervisors urging implementation of the State Water Project in the County. Mr. Nichols stated the State Department of Water Resources is accepting comments on the EIR for Phase II of the Coastal Branch of the State Water Project until August 18th. The City has pre- viously indicated to the State its tentative interest in receiv- ing 1,313 acre-feet of water per year from the project. The Water Advisory Board is urging Council to accept the EIR as informationally accurate and adequate and to recommend to the Department of Water Resources and County the project be imple- mented at the earliest possible date. Clint Milne, County Engineering Department, stated the reason Morro Bay is in the report is because Morro Bay asked to be included in the plan in 1986. The EIR is one year late; it does not include local projects, which are the spur line from the pro- ject to Morro Bay, or a water treatment plant. The Environmental Coordinator estimates the EIR on the local projects will be out towards the end of the year, with certification in April or May of next year. Some communities in the County are having advisory elections on participation in the Project. The State is estimat- ing 4 years for design and construction of Phase II. He noted hearings will be held in Lompoc and San Luis Obispo shortly. Mayor Sheetz said with regard to the spur line to Morro Bay, it is assumed Cayucos cannot afford it, and Los Osos does not need it, leaving Morro Bay alone; what does that mean? Mr. Milne agreed Los Osos may not need additional water until 2010. Cayucos is interested, but a better alternative is to exchange Whale Rock water for the State Water Project. Mayor Sheetz questioned costs for subscribers who do not partici- pate initially? Mr. Milne stated he recommends those participat- ing in the project at a later date buy -in retroactively with penalties and interest. Councilmember Wuriu asked how long have we been paying for the State Water Project and how much? Mr. Milne stated the County paid its first bill in 1964 at $12,000 per year. Since then the cost has gone up; it is more than $1 million per year now. Two hundred miles of aqueduct have been built. Over $7 million has been invested since 1964. Mayor Sheetz opened the hearing to the public for comments. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 23, 1990 PAGE 12 Bruce Risley, 540 Piney Way, encouraged Council to seek an exten- sion on the public input period. He commented regarding Coun- cilmember Lemons' relationship to the California Precast Pipe Association and the EIR's description of 14,493 sections of 40 foot long pipe such as manufactured by the California Precast Pipe Association; this is a conflict of interest and Councilmem- ber Lemons should not be allowed to vote on this matter. Morro Bay needs to know how much extra electric power will be generated in Morro Bay due to the State Water Project, and how much pollu- tion will result? He said the EIR does not deal with the water quality of State water which shows 7 times the allowable State drinking water standard for arsenic in the sample. Mr. Risley said the EIR does not adequately address loss of local control over water. He prefers a third alternative in the report, "SWP participation in the development of local water supplies." Robert Lane, Tahiti, stated the project is an "economic pig in a poke". He asked what the project is going to cost the citizens of Morro Bay? He requested Council approve an independent eco- nomic impact study followed by a voters' advisory election. If not, an initiative drive is likely. The people must have a chance to vote on whether they want to submit themselves to a large tax for this water. Peter Diffley, 175 Kern, said it is premature to address a letter to the Board of Supervisors encouraging their implementation of the State Water Project because so much is in process. There are many objections throughout the County to the EIR. He urged Coun- cil to request a time extension on the public input period. Mary Phillips, 2645 Ironwood, said if Morro Bay does not take SWP water, someone else will. We have been paying taxes on it for almost 30 years; "go for it". Let's not be sorry. Nancy Bast, 450 Fairview, said it is premature to send a letter of the City's support. Costs are unknown, and there has been no newspaper coverage of the project. The City's current water sup- ply costs $260 per acre foot, and SWP water is now estimated at $800 per acre foot. She does not see how the City can commit the citizens to those costs on the lack of information. Ray Kaltenbach, 473 Sicily, said 1300 acre feet is just a drop in the bucket. The City has never been given an accurate figure on the costs of the project, and the cost overruns will be tremen- dous. What is the City going to do in the meantime before the State Water Project is here? All coastal cities have been over - drafting their water supply for years. Susan Mullen, 985 Pacific, stated she is still reading the EIR. It is too early to say the City wants the project; there are a lot of problems. The City should be formulating a response to the EIR, and urged Council to request a time extension to respond. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 23, 1990 PAGE 13 Keith Jeffreys, 353 Bernardo, stated we are in a crisis situation which may cause us to make a rash decision. The City is follow- ing a familiar pattern, and the cost will be borne by the younger members of the community. He said Morro Bay has a Mediterranean climate and desert environment. Jerry Mullen, 985 Pacific, asked for a rough estimate of the cost to Morro Bay. He said Council should not write to the Board of Supervisors encouraging their implementation, and should request a time extension to the public comment period. Morro Bay should look at solving its water problems by itself; there are other solutions that should be researched. Melvin Lees, Bayshore Villas, said every time something comes up, people say "Let's wait". He stated the only way to get water is either desalination or the State Water Project and both are going to cost money. Morro Bay does not pay much for water, but it pays a lot for Sonic Cable TV. Howard Gaines, Orcas, stated Morro Bay water is not cheap. The SWP is going to bring growth with growth's defects, and problems of sewage disposal. He believes the cost of desalting water will come down with the continuing development of technology in this area. He is not in favor of Council requesting the Board of Supervisors move forward on this project. He reminded Council the recent growth initiative, Measure A, carried in Morro Bay; the people want some type of growth control. Cline Milne asked to respond to some comments. He referred Coun- cil to page 31, table 9 in the EIR and stated there is an error; the arsenic should be .00034 parts per "billion" rather than "million". Mr. Risley discussed additional power for the pro- ject; Mr. Milne stated the SWP is one of the largest power pro- ducers in the State. It takes advantage of nature by using hydroelectric power; it is designed so pumping occurs at night to avoid peak periods; and it will sell power instead of creating a need. Mr. Milne also discussed costs noting State Water Project capital, operation and maintenance is estimated at $370 per acre foot; $110/af for treating the water; and $180/af for the distri- bution line: total $670/af. Desalting by comparison is still prohibitively expensive and energy intensive. Councilmember Wuriu asked when the City will have to make a final decision on participation in the project? Mr. Milne stated the irrevocable decision will be when the City signs the contract as a participant, which will not happen until after the SWP EIR has been certified. Councilmember Odell stated the City just budgeted for a treatment plant; would it be advisable to have a dam? Mr. Milne stated the City must plan a program for water that gives it the capability of serving customer needs. All riparian users have superior water rights to Morro Bay's. The SWP will serve water year- round; need to plan for that. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 23, 1990 PAGE 14 Keith Jeffreys stated with the two discrepancies on crucial points in the EIR noted this evening, he believes the EIR needs further scrutiny. Mr. Milne said how the City pays for the pro- ject is up to the City; however, Morro Bay has been paying for the project for 27 years. Councilmember Wuriu stated he has supported SWP proposals in the past, and has also seen various local projects go down the drain. He believes there is a lot of sense to a local project, but the fact is every plan the City has tried has not produced water. He said the SWP is one of the options the City must pursue; however, he has no objections to setting a hearing for more public input if anything will be served by it. He said some of the people bringing up objections may be urging delay because they do not want the project at all. Are the delays sincere, or ways to kill the project? Mayor Sheetz said she called the Chairman of the Board of Super- visors and asked her what impact a letter from the City will have? Ms. Delaney said if something is sent to the Board, make sure it reflects what the people are in favor of. Mayor Sheetz believes additional hearings should be held and a time extension requested. Councilmember Lemons noted Council earlier enacted a Level 4, Critical Water Conservation Measures; he asked Council if they know what that means? He commented on Bruce Risley's attack on him stating he has reported his past associations (he has not worked for them in a number of years) with the California Precast Pipe Association to the Fair Political Practices Commission; their investigation into the association found nothing wrong. He said the City has spent a considerable amount of money investi- gating potential local projects, i.e., Toro Creek and Coastal Streams Diversion. Two problems with the projects are they do not solve the water problem in dry years, and the City is at the mercy of the Whale Rock Commission. The City cannot get the Whale Rock Commission to meet to set up an agreement, and the EIR on the Coastal Streams project cannot be completed until there are rains. Money has also been appropriated to the San Bernardo Creek Dam project in order to keep the City's options open. The one project that has possibility is the State Water Project. It will reduce the City's complete dependence on local underground streams which depend on rainfall and will reduce county -wide com- petition for water between cities and agriculture. Mr. Jeffreys mentioned "quality of life"; there was further deterioration of the quality of life when the Council just voted for additional restrictions on the use of water. People are entitled to better than that. Writing a letter to the Board of Supervisors is not buying into the project, but points out one legislative body in this County who is aware of the problems. He suggested the let- ter state when the project EIR is completed, the project proceed as quickly as possible. Councilmember Odell said he has no idea how many people do or do not want the project, and it will be at least 5 years before the e MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 23, 1990 PAGE 15 project is constructed. He agrees with the concept in the EIR; if growth is a concern, it should be dealt with as a policy issue locally. He does not believe a letter to the Board of Supervi- sors will be helpful at this time. It will just be "political steam" about something he is not thoroughly convinced is the answer to water problems. MOTION: Councilmember Lemons moved the City Administrator be authorized to draft a letter to the Board of Supervi- sors asking them to expedite processing of the State Water Project. The motion died for lack of a second. Council discussed holding an additional hearing on the State Water Project. It was noted Morro Bay has no standing in the EIR process as the State is the lead agency. MOTION: Councilmember Wuriu moved the City hold a public hear- ing solely to discuss the State Water Project and receive public input. The motion was seconded by Mayor Sheetz and unanimously carried. (4-0) Council recessed from 9:31 p.m. to 9:43 p.m. D-5 PROTEST HEARING FOR FORMATION OF LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT FOR BAYSHORE BLUFFS PARK, AND ADOPTION OF RESOLUTION NO. 97-90 ORDERING THE FORMATION OF BAYSHORE BLUFFS PARK MAINTENANCE ASSESSMENT DISTRICT Mr. Wolter stated Council previously adopted a Resolution of Intention to form a lighting and landscaping maintenance assess- ment district for the Bayshore Bluffs Park. This district will be paid for by the property owners in Bayshore Village. A protest hearing is scheduled for this evening; to date, no protests have been received. The 4 property owners in Bayshore Village have all requested the formation of the district. Mr. Wolter stated concerns were expressed at the last meeting regard- ing who assumes liability of the park. If the City contracts for maintenance of the park, the contractor will be required to have the proper liability insurance. If the City maintains the park, the City will be responsible for park maintenance liability as well as the park and improvements. However, the cost of insur- ance will be charged to the assessment district. Mr. Wolter noted first year costs are estimated at $315.21 per lot. Mayor Sheetz opened the hearing to the public for comments. Paul Reynolds, 2979 Clark Valley Road in Los Osos, stated he is currently in escrow on one of the units in Bayshore Village. He said the people who will be purchasing the units from Inland West are not property owners yet and do not have a voice in the pro- ceedings. The assessment district fees will be paid by the silent majority, future owners of the units. Mr. Wolter previ- ously stated liability will be the responsibility of the City; 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 23, 1990 PAGE 16 now it seems those costs will be charged to the assessment dis- trict. He requested Council not vote in favor of charging the property owners for the insurance. He asked to see a break -down of the costs as there seems to be a lot of overhead. He would like to see property owners involved in the process so costs can be monitored. Perhaps after the improvements are completed, the property owners can look at maintaining the park themselves. Mr. Wolter stated the State Department of Real Estate determined homeowner maintenance of the park is not acceptable, and an assessment district is the only mechanism they will accept. He noted the insurance costs are allowed to be charged to the assessment district; they amount to approximately $300 per fiscal year. He stated the assessment district has to be formed before the units are sold so the information can be included in the sales documents. Mayor Sheetz asked who is responsible for the supplies in the park? Mr. Wolter stated the City maintains the restrooms and parking lot; the rest is Bayshore Village responsibility. He noted a separate account will be established for the assessment district with only the charges to maintain the park billed to the account. Mel Lees requested something formally be established between the homeowners and City. He said the homeowners should have input into the expenses on the park. The new marina proposal calls for access through the park, and the homeowners should not have to pay for any upkeep or building as a result of that use. Mr. Wolter stated the Recreation and Parks Commission considered the impact of the marina on the park and found the park an inadequate access. He stated the homeowners can voice their concerns to the Recreation and Parks Commission. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Odell moved for the adoption of Resolu- tion No. 97-90. The motion was seconded by Councilmem- ber Wuriu and unanimously carried. (4-0) Councilmember Lemons requested the record show City staff is directed to act as liaison between the homeowners and the Assess- ment District. D-6 ORDINANCE NO. 377 AMENDING SECTION 13.04.270 OF THE MORRO BAY MUNICIPAL CODE TO REQUIRE LARGE -VOLUME WATER USERS TO INSTALL AND USE STATE-OF-THE-ART WATER -SAVING DEVI_C__ES_ (INTRODUCTION/FIRST READING) Ms. Skousen reviewed the proposed ordinance requested by Council to require large -volume water users to retrofit by installing water saving devices. The Finance Department estimates approxi- mately 100 customers would be affected by the ordinance as those users averaging more than 40 billing units per month for one water meter. The ordinance would require these customers to MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 23, 1990 PAGE 17 install low -flow toilets, faucets and showers; to fix leaks; and, install drip or other water -saving irrigation systems. The ordi- nance allows the City to install the fixtures if the property owner refuses to, and charge the costs as a lien against the property. She noted this action will not be taken without due process and a search warrant. There has to be reasonable cause a violation exists for the City to take this action. Councilmember Wuriu asked who the City would be dealing with, the property owner or the tenant? Ms. Skousen stated the property owner; however, notice will also be given to the tenant. Councilmember Odell asked if the City is required to do the retrofitting, how will the plumber be selected? Ms. Skousen stated that has not been determined; possibly, the project would be let for bid depending on the extent of the job. Mayor Sheetz was concerned the City will have another "leak police" ordinance due to the requirement for the City to have the work accomplished if the property owner refuses to do so. Ms. Skousen said the ordinance spells out in detail the procedures we have; they are already part of the Municipal Code and apply to other enforcement requirements. Mayor Sheetz asked if the retrofit will be costly and cannot be accomplished within 30 days, how will the City respond? Ms. Skousen stated the City can enforce the Code, but the individual can appeal to the Council and Council can grant additional time. Mayor Sheetz opened the hearing to the public for comments. Howard Gaines, Orcas Street, opposed the ordinance, stating Coun- cil may later lower the large volume definition which could even- tually affect him. Ray Kaltenbach, Sicily, said the ordinance is worthless; the peo- ple using that amount of water are paying a lot of money for it and do not need to be told to save. Paul Reynolds, Los Osos, suggested Council just establish rationing. The cost to enforce the ordinance will be enormous. Nancy Bast, 450 Fairview, questioned how "state-of-the-art" will deal with laundromats. She noted recirculation is one method, but is very expensive. Mayor Sheetz closed the hearing to the public. Councilmember Odell stated he is more interested in incentives to encourage people to save water, such as increasing rates for more water used. He is concerned the ordinance will create an addi- tional burden for the City that will not yield that great a result. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 23, 1990 PAGE 18 Councilmember Lemons stated the ordinance was written to require savings from a small amount of large water users who have refused to install water saving devices. The ordinance cannot be written to target individuals. Many large water users are not paying the water bill from their personal funds, so they do not care how large the bill is. He reminded Council they just adopted criti- cal water situation measures; this ordinance is not onerous in view of the situation. Mayor Sheetz said the high school is one of the largest users, and so is Mission Linen; how do they cut water use? Councilmem- ber Lemons stated if they have installed water saving devices, the ordinance does not require additional measures. Councilmember Odell said maybe the school district has not real- ized the impact of the increased water rates because school is not in session. Mr. Napper stated summer school is going on and there are other activities at the school. He noted he had a meeting with the new District Superintendent when he first arrived, and discussed Morro Bay's water situation with him and gave him copies of the high school's water bill; he has not heard from him since. Councilmember Lemons said he does not understand the problem. We have an emergency water situation and someone is using 6,000 cubic feet of water per month and they can save 10% or 6 units, which is more than the average single family house. What objec- tion can there be to telling them they cannot waste water? Councilmember Odell said he supports the idea, but the new water rates have only been in effect for one month. He objected to passing the ordinance and deciding later how to administer it. He suggested most users probably have retrofit, but do not have state-of-the-art devices. Ms. Skousen stated the City cannot require anything more than is set in the Building Code. If installed within the last 3 years, the devices are considered state-of-the-art. Mayor Sheetz asked how people cut back if water is their busi- ness? Ms. Skousen stated there may only be 2 to 4 users that have not installed the water saving devices. MOTION: Councilmember Lemons moved Ordinance No. 377 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) Mr. Napper read Ordinance No. 377 by title and number only. MOTION: Councilmember Lemons moved for approval of introduction and first reading of Ordinance No. 377. The motion was seconded by Councilmember Wuriu. Councilmember Odell asked if state-of-the-art means every water device? Ms. Skousen stated yes, but only if something new has been developed or improved that saves a substantial amount of MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 23, 1990 PAGE 19 water. Councilmember Odell asked why the City cannot notify the high volume water users they are required to lower their consump- tion? Ms. Skousen stated the City has no authority to do so. The motion failed on the following vote: AYES: Lemons, Wuriu NOES: Odell, Sheetz Councilmember Lemons suggested Council call -off Level 4 of the water crisis. No action was taken. C. NEW BUSINESS C-1 AUTHORIZATION FOR CITY REPRESENTATIVES TO APPEAR AT THE COASTAL COMMISSION APPEAL HEARING TO DEFEND APPROVAL OF THE PACIFIC COAST SHOPPING CENTER PROJECT (CUP 03-88/CDP 05-88R• WILLIAMS BROTHERS MARKET, INC.) Mr. Napper stated Council's approval of the Pacific Coast Shop- ping Center has been appealed to the Coastal Commission by the Voters Initiative Committee, proponent of Measure H (Williams Brothers land rezoning). Councilmember Lemons has requested Council authorize he and the City Attorney to attend the appeal hearing and defend the Council's action. The appeal date has not be set by the Commission. Councilmember Lemons said he believes Council attendance at the appeal hearing is necessary to demonstrate Council believes their action was proper and legal. He said there is precedence for it; City representatives appeared before the Coastal Commission on the Cloister's property, and he believes there have been 1 or 2 other occasions. Councilmember Odell thought the major problem with the appeal is that it concerns the City's General Plan as well as the Local Coastal Plan. Ms. Skousen stated some of the grounds for the appeal were the Council's approval was inconsistent with the Gen- eral Plan; the Coastal Commission has no jurisdiction over the City's General Plan. Councilmember Odell stated if it is a sim- ple matter, a letter could be sent requesting the Commission only hear the legal appealable items. Mayor Sheetz suggested the Community Development Director attend the appeal hearing rather than the City Attorney and Councilmem- ber Lemons. Ms. Skousen stated a legal representative should be present to protect the City's jurisdiction. Mayor Sheetz sug- gested the City Attorney go alone. Councilmember Odell was concerned about the City Attorney's rep- resentation of a 3-2 approval of this project. Ms. Skousen stated she will follow Council's direction on supporting the broader issue of Council findings on the project, or just the appealable items. Councilmember Odell said he could justify the appealable items, but he is opposed to the project and voted 0 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 23, 1990 PAGE 20 against it. Councilmember Wuriu said the City Attorney should be present to defend Council action. Peter Diffley stated the Voters Initiative Committee has revised their appeal per Coastal Commission direction they cannot rule on City General Plan issues. The Coastal Commission will be using only the Local Coastal Program Land Use Plan in their considera- tion of the appeal. Ben Luna, 341 Luzon, said the issue of sending a Councilmember and the City Attorney to the appeal hearing is none of the City's business. Council had their opportunity on the project and made their decision. The Coastal Commission has found the appeal sig- nificant enough to review it, and the only representation needed is the Voters Initiative Commission and Williams Brothers. Ray Kaltenbach, Sicily Street, asked if Council is so concerned about water, why spend so much money on Williams Brothers? He said it looks like some of you may be on their payroll. Mayor Sheetz closed the matter to the public. Councilmember Odell remembers sending staff to the Coastal Com- mission hearing on the Williams Brothers initiative because it was an initiative. Ms. Skousen said when she last spoke with the attorney for the Coastal Commission, they were still working on items relating to the City's General Plan. Councilmember Odell suggested in view of Mr. Diffley's statement, further information be obtained before City resources are committed to this item. Mayor Sheetz stated the item will be deferred to a later date when there is more information. C-2 REQUEST FOR CITY ATTORNEY OPINION WHETHER MEASURE H (WILLIAMS BROTHERS LAND REZONE) ON THE NOVEMBER 1990 BALLOT IS AN INITIATIVE OR A REFERENDUM Councilmember Lemons stated Williams Brothers has requested an opinion on whether or not Measure H is an initiative or a refer- endum. The City Attorney informed Councilmember Lemons she can- not deliver an opinion on this request unless directed to do so by the Council. Councilmember Lemons he believes the subject warrants an opinion. Councilmember Odell suggested both sides in this matter, Williams Brothers and the Voters Initiative Committee, submit legal briefs to the City Attorney within 10 calendar days and the matter be re-agendized at the next Council meeting. The briefs will give the City Attorney the basic research to render an opinion, and will not cost the City as much as if she researched the matter. Mayor Sheetz opened the hearing to the public. Peter Diffley, Kern Avenue, asked what action the Council could take if someone came up with an opinion the initiative was not an 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 23, 1990 PAGE 21 initiative? After reading the letter from Williams Brothers' attorney, it seems Mr. Stoker is on a fishing expedition. One of the cases cited in his opening paragraph is not relevant at all. The initiative has nothing to do with the Conditional Use Permit. Howard Gaines, Orcas Street, stated an initiative is an act of the people establishing a new policy; a referendum is an action of the people over -turning the action of the Council. Williams Brothers themselves took advantage of the initiative process to change zoning, now they deny others that right?. Ann Freeman, Cabrillo Place, said the City Attorney had the ini- tiative before her two times and did not raise the referendum issue. Ray Kaltenbach said the City Council fired one City Attorney; if a new Council is elected, this one might be on shakey ground. Nancy Bast, Fairview, said the issue of referendum should have been raised during the City Attorney's review of the initiative. Why go through these machinations for one Councilmember who is openly hostile? It is wasting time and money. Richard Paynter, attorney for Williams Brothers, said their posi- tion is they would like to make sure whatever action is taken is not successfully challenged in court by either side. Mayor Sheetz stated if the initiative is not legal, a judge in a court of law can make the decision. Councilmember Lemons said everyone concerned should want to know whether it is a legal initiative or a referendum. There will be significant difference in the final results if this issue is a referendum and we have ordered it on the ballot as an initiative. Mayor Sheetz stated if the City Attorney thought the matter was not an initiative, she should have told Council it was a referen- dum. Ms. Skousen said she did not make a specific finding it was or was not an initiative. It is a complex question and she did not consider there was such a question. She does not know whether there is a problem or not because she has not research it. Jerry Mullen, Pacific Street, said this is not the City's prob- lem, and he encouraged Council to tell Williams Brothers to use their attorney and take the matter to court. Sue Mullen, Pacific Street, stated the time to discuss whether or not the issue is an initiative or referendum is when it first came up. Bob Lane, Tahiti, said this is a non -issue. Williams Brothers does not want to challenge this in court because it would be bad public relations to see Williams Brothers in court. He said they MINUTES - MORRO BAYCITY COUNCIL Iq REGULAR MEETING - JULY 23, 1990 PAGE 22 are trying to keep the people from their legal right to the ini- tiative process. Councilmember Wuriu thought the suggestion for both sides to pre- pare briefs on the issue made sense. He is surprised at the vehemence of the opposition to that. It would seem like any time you can get information, it would be important. However, there is a point the fight is between Williams Brothers and the Voters Initiative Committee as far as whether the initiative is legal or not. Councilmember Odell is not interested in the briefs after the public comments this evening. The less City involvement in the subject, the better. Councilmember Lemons pointed out if the challenged by Williams Brothers in court, costs to defend the initiative. No further action was taken. E. CLOSED SESSION None initiative passes and is the City has to pay the F. ADJOURNMENT MOTION: Councilmember Wuriu moved the meeting be adjourned. The motion was seconded by Mayor Sheetz and unanimously carried. (4-0) The meeting adjourned at 11:21 p.m. Recorded by: ARDITH DAVIS City Clerk 6 City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING VETERANS MEMORIAL 209 SURF ST., ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE PRESENTATIONS• - JULY 9, 1990 HALL - 6:00 P.M. MORRO BAY, CA 1. MOST VALUABLE EMPLOYEE (APRIL, MAY, JUNE 1990) - DELMA MENDES 2. MORRO BAY HIGH SCHOOL AUTOMOTIVE TEAM FOR CHAMPIONSHIP WINS AT THE CALIFORNIA AND NATIONAL PLYMOUTH-AAA AUTOMOTIVE TROUBLE SHOOTING CONTESTS - DAVID FELLOWS, NATHAN GRIFFIN, INSTRUCTOR GARY VILLA 3. CERTIFICATES OF APPRECIATION FOR AGENCIES INVOLVED IN MORRO BAY HARBOR CLEAN-UP DAYS IN JUNE 1990 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 25, 1990 A-2 RESOLUTION NO. 86-90 COMMENDING THE MORRO BAY HIGH SCHOOL TEAM FOR THEIR CHAMPIONSHIP WINS AT THE CALIFORNIA AND NATIONAL PLYMOUTH-AAA AUTOMOTIVE TROUBLE SHOOTING CONTESTS A-3 RESOLUTION NO. 84-90 ACCEPTING OFFER OF DEDICATION OF AN EASEMENT FOR STREET PURPOSES AT 3310 NORTH MAIN STREET (DBA MAIN LIGHTING) A-4 RESOLUTION NO. 85-90 ESTABLISHING AN ON -STREET PARKING PROHIBITION ON THE WEST SIDE OF BERNARDO AVENUE FROM PACIFIC STREET TO THE MORRO BAY BOULEVARD ALLEY A-5 APPROVAL OF COMMUNITY PROMOTIONS PROGRAM FOR FY 1990-91 (PULLED) A-6 DESIGNATION OF FIRE LANE AND COMMERCIAL LOADING ZONE IN EMBARCADERO PARKING LOT ALLEY FROM VIRG'S FISH'N TO ESTERO BAY SEAFOOD (PULLED) B. UNFINISHED BUSINESS B-1 MODIFICATION OF WATER ADVISORY BOARD BY-LAWS CHANGING NUMBER OF BOARD - MEMBERS FROM 9 TO 7 B-2 RESOLUTION NO. 89-90 SUPPORTING AB 145 (COSTA), THE CALIFORNIA PARK, RECREATION, AND WILDLIFE ENHANCEMENT BOND ACT OF 1990 C. NEW BUSINESS C-1 CONSIDERATION OF ESTABLISHING CITIZENS ADVISORY TASK FORCE CONCERNING PRE-SCHOOL CHILDCARE SERVICES IN MORRO BAY C-2 REQUEST FOR ASSIGNMENT OF LEASE SITES 87-89W (DBA BOB'S SEAFOOD, GOLDEN SWAN GIFT SHOPS, BOB'S SPORT FISHING, MARINE WAYS) FROM RALPH AND SHIRLEY GUNTHER TO MICHAEL AND B.J. GREENBERG; RESOLUTIONS NO. 90- 90 AND 91-90 C-3 CONSIDERATION OF POSSIBLE TRANSFER OF A PORTION OF TIDELANDS GRANT (WEST OF MORRO ROCK) BACK TO THE STATE LANDS COMMISSION D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 ORDINANCE NO. 375 AMENDING SECTION 13.20.100 OF THE MORRO BAY MUNICI- PAL CODE MODIFYING THE TIME LIMIT FOR USING WATER EQUIVALENCY UNITS (FIRST READING/INTRODUCTION) D-2 ORDINANCE NO. 374 AMENDING CITY'S MANDATORY WATER CONSERVATION PROGRAM ADDING AN ADDITIONAL LEVEL OF CONSERVATION, "CRITICAL WATER SUPPLY CONDITION" (EMERGENCY ADOPTION), AND RESOLUTION NO. 87-90 ENACTING NEW "CRITICAL WATER SUPPLY CONSERVATION MEASURES" D-3 REQUEST BY CITY OF SAN LUIS OBISPO TO ESTABLISH AN INTER -AGENCY COMMITTEE TO DISCUSS MUTUAL CONCERNS WITH THE SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT, THE COUNTY OF SAN LUIS OBISPO, AND CITY OF MORRO BAY D-4 RESOLUTION NO. 88-90 DECLARING THE INTENTION TO FORM A LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT FOR BAYSHORE BLUFFS PARK E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.9(B)(1); POTENTIAL LITIGATION E-2 GOVERNMENT CODE SECTION 54957.6(A); LABOR RELATIONS 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 - JULY•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: Gary Napper Judy Skousen Louise Burt Ardith Davis William Farrel Forrest Henderson Nick Nichols Horace Strong gave the invocation, Allegiance. z • City Administrator City Attorney Finance Director City Clerk Community Dev. Dir. Asst. City Admin. Public Works Dir. and led the Pledge of 1. MOST VALUABLE EMPLOYEE (APRIL, MAY. JUNE 1990) - DELMA MENDES Mayor Sheetz stated Delma Mendes has been selected Most Valuable Employee for the second quarter of 1990. She detailed Delma's expertise in the field of accounting, and presented her with a City T-shirt labeled Most Valuable Employee, and a gift certifi- cate for dinner for two. y• �•U._ �. •• • • _ _ •j �V • L_ Mayor Sheetz presented the Resolution honoring the Morro Bay High School Team for their championship wins at the California and National Plymouth -AAA Automotive Trouble Shooting Contests. Gary Villa, instructor, gave credit to David Fellows and Nathan Griffin for their hard work. He said they beat the second place team, Texas, in the Nationals by 14 minutes. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 9, 1990 PAGE 2 3. CERTIFICATES OF APPRECIATION FOR AGENCIES INVOLVED IN MORRO BAY HARBOR CLEAN-UP DAYS IN JUNE 1990 Mayor Sheetz commended the efforts of the many participants in the Harbor Clean -Up Days, organized by Bud Laurent of the Depart- ment of Fish and Game, which yielded 1-2 tons of bottom debris, and 8 sunken vessels. She thanked them all for their time and energy in the cleaning of Morro Bay Harbor. Those receiving certificates of appreciation were the E1 Paso De Robles School (California Youth Authority) for their dive team; Depth Perceptions Dive Shop, divers; Bill's Sporting Goods for divers, shore support, and organizing the thank -you BBQ; Corder - Winston Fish Co., thank -you BBQ, donation of salmon; California Conservation Corps for shore support and return of living organ- isms to waters; Sea Wink Sporting Goods, divers and shore sup- port; Friends of the Estuary for shore support, clean-up, and return of living organisms to water; Goofy Graphics for designing the logo for the participant buttons; P.G.&E. for mobile cranes and operators; Associated Pacific Constructors for debris and vessel removal, and barge support services; Fordington Construc- tion for crane operation; Harbor Department for logistical sup- port and City liaison; Public Works Department for debris hauling to landfill; and Bud Laurent, California Department of Fish and Game, as coordinator of the event, diver, and participant in sou- venir buttons. Mr. Laurent thanked all the participants and stated Mayor Rose Marie Sheetz and City Administrator Gary Napper also deserved recognition for their help. PUBLIC COMMENT 1. Mary Phillips, 2645 Ironwood, discussed coliform in the City's water as a result of using the reverse osmosis unit. She was concerned it affected more than just Keiser Park and Wixom's Cement Plant. She called various agencies (State and County Health Departments) regarding the situation and no one seemed to know anything about it. She said Council is getting careless with the water, and she wants a full report. 2. Jerry Lennon, general counsel for the California Orga- nization of Police and Sheriffs and counsel for the Morro Bay Peace Officers Association, made comments with regard to the Classification Study Council will be reviewing in Closed Session this evening. He said he was speaking on behalf of the MBPOA, and expressing sentiments of the City's other employee represen- tatives. Mr. Lennon stated the bargaining agents for the employee groups have not had enough time to analyze the study; if this study is implemented without going through the meet and con- fer process, it will be a violation of unfair labor practices. He cited Government Code Section 3500 requiring the City to nego- tiate in good faith regarding wages, hours, and working condi- tions. He charged the City with "end -running" around the bar- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 9, 1990 PAGE 3 gaining representatives and individual employees by submitting the study to employee unit representatives. He requested the meet and confer process be followed before any implementation of the study. Councilmember Lemons asked if Mr. Lennon has had any indication from the City they did not intend to follow the meet and confer process in this matter? Mr. Lennon stated no, but the City is dangerously close when individual members of the bargaining units have been presented with evidence there's going to be salary changes. Councilmember Lemons also asked if Mr. Lennon was implying the fact Council commissioned and were reviewing the study is a violation of Memorandum of Understanding Agreements? Mr. Lennon stated no. 3. Charles Palmer, 485 Estero, questioned the no parking prohibitions on Bernardo Avenue (Item A-4). He said the present parking spaces are needed and used by businesses in the area. 4. Ron Hillman, 420 Harbor, critiqued Council's public speaking skills. He asked Mayor Sheetz how she wished to be addressed? Mayor Sheetz stated during Council meetings as Madam Mayor. 5. Nelson Sullivan, 450 Fairview, referred to Item C-2 on the Agenda (Assignment of Lease Sites 87-89W from Gunther to Greenberg) and stated Council approval of the transfer will be approval of the way the lease has been run. He said it is the only marine ways in Morro Bay and has gradually deteriorated over the years. He said leaseholders always seem to get what they want from Council, and the people are not being adequately repre- sented. Perhaps the Grand Jury would be interested in this. Mayor Sheetz requested Mr. Nichols report to the Council at the next meeting concerning the desalting unit; there has been some misunderstanding and misrepresentation with regard to its operation. DECLARATION OF FUTURE AGENDA ITEMS 1. Councilmember Lemons requested Council reconsider a 4- way stop at the intersection of Napa Avenue and Morro Bay Boule- vard. Mayor Sheetz suggested the item first be considered by the Street Advisory Committee and then forwarded to Council with their recommendations; staff was so directed. A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF JUNE 25, 1990 Mr. Napper recommended Council approve the minutes as submitted. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 9, 1990 PAGE 4 A-2 RESOLUTION NO 86-90 COMMENDING THE MORRO BAY HIGH SCHOOL TEAM FOR THEIR CHAMPIONSHIP WINS AT THE CALIFORNIA AND NATIONAL PLYMOUTH-AAA AUTOMOTIVE TROUBLE SHOOTING CONTESTS Mr. Napper recommended Council adopt Resolution No. 86-90. A-3 RESOLUTION NO, 84-90 ACCEPTING OFFER OF DEDICATION OF AN EASEMENT FOR STREET PURPOSES AT 3310 NORTH MAIN STREET (DBA MAIN LIGHTING) Mr. Napper recommended Council adopt Resolution No. 84-90. A-4 RESOLUTION NO. 85-90 ESTABLISHING AN ON -STREET PARKING PROHIBITION ON THE WEST SIDE OF BERNARDO AVENUE FROM PACIFIC STREET TO THE MORRO BAY BOULEVARD ALLEY Mr. Napper recommended Council adopt Resolution No. 85-90. A-5 APPROVAL OF COMMUNITY PROMOTIONS PROGRAM FOR FY 1990-91 (D) A-6 DESIGNATION OF FIRE LANE AND COMMERCIAL LOADING ZONE IN EMBARCADERO PARKING LOT ALLEY FROM VIRG'S FISH'N TO ESTERO BAY SEAFOOD (PULLED) Councilmember Lemons requested Items A-1 and A-4 be pulled from the agenda for separate discussion. He requested a correction to Page 8 of the Minutes from the meeting of June 25th; the figure in the fifth paragraph citing $9,600 should be $3,690. A-4 RESOLUTION NO, 85-90 ESTABLISHING AN ON -STREET PARKING PROHIBITION ON THE WEST SIDE OF BERNARDO AVENUE FROM PACIFIC STREET TO THE MORRO BAY BOULEVARD ALLEY Councilmember Lemons stated his reaction to this item is similar to Mr. Palmer's; he does not understand why the parking prohibi- tion is needed here. Mr. Nichols explained the new condominium project at this location and the City desires to save existing pine trees created a 36 foot wide street section where 40 feet is the standard. For safety reasons, staff is recommending elimi- nating parking on the west side of Bernardo. Councilmember Lemons asked if the Street Advisory Committee reviewed this item? Mr. Nichols stated no. Mayor Sheetz suggested the item be referred to the Street Advisory Committee for their recommendations. MOTION: Councilmember Lemons moved for approval of the Consent Calendar as amended with regard to Items A-1 through A- 3, and that Item A-4 be submitted to the Street Advi- sory Committee for review. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 9, 1990 PAGE 5 B. UNFINISHED BUSINESS u • • ��Ft$:� _ • • �:1cii��l+ifdiT;i'�S;��i3'O-R:L'�'�•3:2aI`�L�}i�L•7i[ilw]3_.; Ij Mr. Napper stated Council, at their last meeting, directed staff to amend Water Advisory Board By -Laws to reduce membership from 9 to 7. This was due to the lack of applications for the current vacancy on the Board. He requested Council also amend the By - Laws to eliminate the non -voting Regional Water Quality Control Board member. The Board recently communicated to the City they no longer wish to be represented on the City's Water Advisory Board. Mr. Napper suggested the reduction of members from 9 to 7 be effective 01 January 1991 to eliminate the necessity of asking one member of the Board to resign. Instead of advertising for the three vacancies that will occur on 31 December 1990, staff will then only advertise two vacancies. MOTION: Councilmember Wuriu moved for approval of the staff recommendation to halt the current vacancy on the Water Advisory Board, amend the by-laws to eliminate the Regional Water Quality Control Board non -voting repre- sentation, and authorize staff to advertise only 2 vacant positions in December 1990 with appropriate revisions to the By -Laws at that time to establish the Board's membership to be 7 voting members. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) r RESOLUTION NO. 89-90 SUPPORTING AB 145 (COSTA). CALIFORNIA PARK, RECREATION, AND WILDLIFE ENHANCEMENT BOND ACT OF 1990 Mr. Wolter stated staff has been tracking AB 145, the California Park, Recreation and Wildlife Enhancement Act of 1990, through the Senate Natural Resources and Wildlife Committee to see if they would amend it to exclude the requirement for an adopted Housing Element in order to be eligible for grant funds. He said several amendments were made to the bill in Senate Committee, including deletion of the housing element linkage. Prior to the amendments, the League of California Cities recommended cities' opposition to the bill; the League now supports the bill. Councilmember Lemons asked what is the status of the City's Hous- ing Element? Mr. Wolter responded the City has an approved Hous- ing Element. MOTION: Councilmember Lemons moved the proposed Resolution be amended to include language the City of Morro Bay would not have been affected by the housing element require- ment, however, we still do not wish it included in the legislation. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 9, 1990 PAGE 6 MOTION: Councilmember Baker moved for the adoption of Resolu- tion No. 89-90 as amended. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) Zix:i:11190U*V C-1 CONSIDERATION OF ESTABLISHING CITIZENS ADVISORY TASK FORCE CONCERNING PRE-SCHOOL CHILDCARE SERVICES IN MORRO BAY Mr. Wolter stated the City has been informed by the San Luis Coastal Unified School District that Del Mar School will reopen in the fall, thus suspending other agencies' use of that facil- ity. One business being replaced is a day care center for pre- school age children which has been unable to locate an alterna- tive site, and several individuals have written to Council requesting assistance. This matter was heard by the Recreation and Parks Commission on June 21st; they concluded a combination of City zoning regulations, water allocation requirements and State Department of Social Services licensing requirements, make it extremely difficult to provide day care services in Morro Bay. The Commission recommends a task force be formed to study the issue, and the City allow non-profit groups to qualify for vari- ances from zoning regulations and exceptions to water allocation requirements. Mayor Sheetz stated this is not a new concern; day care for chil- dren is a nation-wide problem. She is in favor of formation of a task force to study this issue. She noted a letter on the sub- ject received tonight from Sue Donaldson. Councilmember Baker asked why water equivalencies are a problem if a pre-school is placed in a building which already has water equivalencies? Mr. Napper stated there can be 60 children in a pre-school which would require more water equivalencies than any existing building has through historical water use. Councilmem- ber Baker asked if Council could approve such a use if the build- ing is sound? Mr. Napper stated a task force could investigate the possibility. Mayor Sheetz suggested the task force be formed and then objec- tives and goals developed. Community interest in this subject should be assessed. She asked Jim McCallum, owner/operator of Estero Bay Day Care Center, to comment on the situation. Mr. McCallum reviewed some of the roadblocks to starting a pre- school. Councilmember Lemons asked if the operators of the pre-school at Del Mar School intend to open at a new location? Sue Donaldson, Cayucos, stated her children attended the pre-school last year and the center received notification from the School District June 1st they would not be able to open in September; they have been trying to find a location since then. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 9, 1990 PAGE 7 Councilmember Lemons stated he has no objection to the task force, but was concerned about the lack of operator interest in the subject. Mr. Wolter stated some individuals have tried to use churches; however, renting space from the church subjects the church to possessory interest taxes. With all the State and City regula- tions, it makes it difficult to open a day care site and make it profitable. MOTION: Councilmember Wuriu moved a task force to examine the needs and problems of pre-school childcare services in Morro Bay be established. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mayor Sheetz asked Councilmembers to submit candidates' names for the task force to her, and the matter will be scheduled for appointments at the next meeting. She also said a member of the Recreation and Parks Commission should be appointed to the task force. Mayor Sheetz stated since it is after 7PM, Council will move on to Public Hearings at this time. Mr. Farrel stated Council, at their last meeting, directed staff to amend the ordinance regarding expiration of water equivalen- cies to make the life of water equivalency awards the same dura- tion as Conditional Use Permits and Coastal Development Permits; both are for an initial one year period and can be extended administratively for an additional year. A proposed ordinance to this effect has been prepared for Council consideration. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. Councilmember Lemons asked questions with regard to ministerial actions to extend permits to which Mr. Farrel responded. MOTION: Councilmember Lemons moved Ordinance No. 375 be read by title and number only. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mr. Napper read Ordinance No. 375 by title and number only. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 9, 1990 PAGE 8 MOTION: Councilmember Baker moved for and first reading of Ordinance seconded by Councilmember carried. (5-0) approval of introduction No. 375. The motion was Lemons and unanimously WRIP • ; •J Us V_ Mr. Nichols stated Council requested the Water Advisory Board prepare a contingency plan for emergency water. Their recommen- dation contains an additional level of mandatory water conserva- tion; Level 4 would become "Critical Water Supply Condition", and Level 5 would be an Emergency Water Supply Program. The Board also recommended Council adopt a Resolution declaring the water supply condition to be critical and implement the new fourth level mandatory water restrictions. Additionally they recommend all motels, restaurants, campgrounds, RV parks, mobile home parks, service stations, etc. display the current mandatory water conservation requirements; and, the City provide flyers with this information for motel, RV parks, and campgrounds to hand out to customers as they enter the premises. Mr. Nichols reviewed the provisions in the proposed "critical" level of water conservation, and the amendments to the Ordinance needed to put the Water Advisory Board recommendations into effect. Councilmember Odell suggested an exception be allowed to washing down buildings in cases where they are being painted. Mayor Sheetz said she has discussed this matter with Ken Powell who owns a paint store and his response is people washed their build- ings with a brush and bucket of water before pressure sprayers were available, so it is not a problem. * automated Councilmember Odell objected to the restriction from using/drip irrigation systems in Level 4; he said it is the most efficient way to irrigate. Mr. Nichols stated the Water Advisory Board concern is we are into a critical water situation; they are try- ing to get people to use less water and so have established con- ditions which make it inconvenient to water. Councilmember Wuriu said hand-held hoses are the most inefficient way to water the yard. He does not believe it is appropriate to have that requirement; it is extremely harsh. Water reduction will result with the restriction to one day per week for land- scape watering. Mayor Sheetz opened the hearing to the public for comments. *Corrected 7-23-90 meeting MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 9, 1990 PAGE 9 Fred Rupp, Zanzibar Condominiums, stated there is no way he can use hoses to irrigate his hillside property; he has 164 sprin- klers. They use very little water and there is no run-off to the street. He requested an exemption to the hose watering requirement. Mary Phillips, Ironwood, stated if the City is declaring a crit- ical water shortage, there should be a ban on construction. Peo- ple who want to save water at home wash their cars at a carwash and do their laundry at a laundromat. She said if she wants to grow a garden, she will. Let her use her water as she sees fit. Charles Palmer, Estero Avenue, stated he was on the Water Advi- sory Board in 1985; the Water Management Plan addressed many of the issues being discussed. He said some residential water users are using just as much water as they did six years ago. If the one day of watering per week is set in the middle of the week, those who live out of town will have to let their yards die. Ron Hillman, Harbor Street, mentioned the dried lawns and said greenery is not natural to California. We have been lulled into an unnatural state of greenery; let us greet the season, a new change. Stuart McElhinney, Tropicana Nursery, said the proposal to use only hand-held hoses for watering will waste more water. Drip irrigation is the best way to water. If you don't want people to irrigate, just say so instead. Ann Freeman, Cabrillo Place, said it is ridiculous to reject the most efficient of watering systems. Council is penalizing the people who live out of town; cutting outside watering to one day per week will save the necessary water. Nelson Sullivan stated 515 single family residences have been allocated water since 1977 without proof of saving one drop of water, and retrofit was supposed to save half of that. He sug- gested Council ask the Water Advisory Board to address the issue of requiring large volume water users to retrofit their toilets. Councilmember Wuriu asked if he was suggesting mandatory retrofit? Nelson Sullivan said yes. Mayor Sheetz asked Mr. Wolter about drip irrigation systems in parks. Mr. Wolter stated drip irrigation is the most efficient way to water, but is not effective for large turf areas. automated* Councilmember Odell stated he is not in favor of outlawing/drip irrigation systems; additionally, if the systems are on a timer, people do not forget about leaving them running. The City can't enforce this anyway. Councilmember Baker asked how the parks and school football field would be watered if Council enacts these measures? Mr. Wolter stated the turf areas probably would not be watered; just those *Corrected 7-23-90 meeting MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 9, 1990 PAGE 10 trees which might not be able to make it through the summer. Councilmember Baker asked if the City would be able to enforce the restrictions against the school district? Mr. Nichols stated yes, if Council passes a law, they must comply; this is a criti- cal water supply situation. Councilmember Wuriu stated the hand-held watering restriction should be in the fifth level of water conservation. He recom- mended the second sentence in Ordinance No. 374, III,D,2,b be deleted ("Irrigation may be done by use of hand-held hoses or manually -operated drip systems only. Use of sprinkler systems, hose sprinklers, soaker hoses, and timer -controlled drip systems is prohibited.") Councilmember Odell said perhaps the City should not allow turf to be watered since it takes four to ten times the amount used for trees and shrubs? Mr. Wolter stated there are health and safety concerns with needing to water football and soccer fields, but turf does use 60%-70% more water than other types of landscape. Councilmember Lemons was concerned the Health Department may require restaurants to wash down their outside areas. Sandi Ford, City Code Enforcement Officer, said some restaurants are effectively using hot water in a bucket and brush. Councilmember Lemons stated there seems to be a need to force a deterioration in citizens lifestyle because the City does not have sufficient water. But to a lot of people, their garden is their life. He said a letter should be sent to the County Board of Supervisors telling them to get the State Water Project here. The City has to go on record pushing the Board of Supervisors, or this exercise will be repeated every year. There is not enough water to take care of the people on the central coast. He said he will not vote for these restrictions unless Council agrees a City letter be sent to the Board of Supervisors pushing them to get the State Water Project built. Council reviewed the changes to the proposed Ordinance: 1) striking the second sentence in III,D,2,b regarding hand-held hoses; 2) Add "and all other vehicles" after "Washing cars" in III,D,l,c; 3) amend III,D,l,b to state "No water shall be used for cleaning driveways, patios ... or other such uses, except Health Department; and. in such cases. only use of a bucket with brush is permitted.; 4) add a new III,D,l,d prohibiting the use of water to wash mobile homes and buildings. Councilmember Odell asked why the two days in the middle of the week were chosen as watering days? Mr. Napper stated there is less water demand during the week than on weekends when more peo- ple are in town. Councilmember Odell said it takes more than once a week to water vegetable gardens. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 9, 1990 PAGE 11 Sandi Ford stated most people are willing to comply; the rules are for those who are not complying. She said she will not be looking in people's back yards for violations. MOTION: Councilmember Wuriu moved Ordinance No. 374 be amended as discussed. The motion was seconded by Mayor Sheetz. SUBSTITUTE Councilmember Lemons offered a substitute motion: MOTION: The City Council send a letter to the Board of Supervi- sors stating the City of Morro Bay, because of the critical water situation in this area, urgently requests the Board to begin implementing the State Water Project as soon as possible. There was no second to the motion. Councilmember Lemons stated >he must vote against the original motion without that letter to the Board. Councilmember Wuriu asked why the State Water Project is being singled out? Coun- cilmember Lemons responded, what else is there? The original motion carried with Councilmember Lemons voting no. (4-1) Mayor Sheetz requested an agenda item be placed on the next Coun- cil meeting to discuss City support of the State Water Project. Mayor Sheetz opened the public hearing on the amended Ordinance. Charles Palmer believed the watering days should be changed so people can water on the weekends. They are voters - think about it. Mary Phillips stated she is going to Sacramento to get legal advice from the State as to what the City Council can do to the citizens. The City cannot force this ordinance on people; they must go to allocations/rationing. Ms. Skousen advised Council they have a legal right to adopt the proposed ordinance. Mayor Sheetz closed the hearing to the public. Councilmember Lemons suggested changing the water days to once per week without specifying days. Mr. Napper stated there would be no way to enforce it. Councilmember Lemons said he is tired of telling people in Morro Bay they get less and less. He suggested a waiver be allowed for those who are unable to water during the week. Councilmember Wuriu agreed. Mr. Napper pointed out there are alternatives if people cannot water during the week: ask a neighbor to do it; hire a gardener; install timed irrigation system that are more 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 9, 1990 PAGE 12 water efficient. The restrictions force people to change their water habits. MOTION: Councilmember Lemons moved the requirement for watering only on Tuesday and Wednesday be amended some way to take care of situations as discussed. The motion was seconded by Councilmember Odell and carried with Mayor Sheetz voting no. (4-1) Council directed staff to amend the Ordinance as outlined and return the matter for first reading at the next meeting. D-3 REQUEST BY CITY OF SAN LUIS OBISPO TO ESTABLISH AN INTER- AGENCY COMMITTEE TO DISCUSS MUTUAL CONCERNS WITH THE SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT. THE COUNTY OF SAN LUIS OBISPO. AND CITY OF MORRO BAY Mr. Napper stated Mayor Dunin, City of San Luis Obispo, wrote Morro Bay suggesting an inter -agency committee be formed to meet periodically with the School District, City and County of San Luis Obispo, and Morro Bay to discuss matters of mutual interest and concern. Mr. Napper stated some areas which could be explored are joint use of facilities, water conservation, on -cam- pus police resource officer and crime prevention programs, etc. He requested Council direction in responding to the suggestion. Councilmember Lemons stated there is merit in our City meeting with the School District, but questioned the commonality of interest with the City of San Luis Obispo. Mr. Napper stated each agency would probably want to discuss issues separately with the School District. Mayor Sheetz opened the hearing to the public for comments. Stuart McElhinney, member of the School District Board, stated this item has not come before the Board yet, but he does see value in a committee of this nature; there are numerous concerns that cover the County and the School District. Mary Phillips said it is a good idea; the City can always back out. She suggested pre-schools use some of the school space for their programs. Water equivalencies are already there. It would work better than the City getting involved in childcare. Mayor Sheetz closed the hearing to the public. Council discussed possible representatives to the committee and selected Councilmember Baker and Mr. Napper to represent the City. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 9, 1990 PAGE 13 D-4 RESOLUTION NO. 88-90 DECLARING THE A LANDSCAPING AND LIGHTING ASSESSMENTFOR BAYSHORE BLUFFS PARK Steve Wolter reviewed the request by the Bayshore Village prop- erty owners to form a landscaping and lighting assessment dis- trict for the Bayshore Bluffs Park. This is the first step to the formation of that District: Notice of Intention to form the district which lists improvements. The estimated assessment for the first year is $22,695, or $315.21 per year per individual parcel. Mr. Wolter noted staff has not decided if the City will perform the maintenance or contract it out. The assessment dis- trict process is to conduct two public hearings, allow written protests, declare district size, list the proposed assessment and mail public notices to property owners. Mayor Sheetz commented there are only three units occupied at Bayshore Village; Inland West owns the other 69. Would Inland West pay the assessment on the 69 units until they are sold? Staff responded yes. Councilmember Odell asked if the park is finished? Mr. Wolter stated the property owner is in the process of bringing it up to the acceptable standard. Councilmember Odell asked if the City adds improvements to the park, are the property owners required to pay for the maintenance of the improvements? Mr. Wolter stated Council can assess the property owners for improvements; the Lighting and Landscaping Act allows the legislative body to make those decisions. Coun- cilmember Odell asked if the district boundaries are fixed? Mr. Wolter responded the Council can alter boundaries in the future with appropriate hearings and due process. Councilmember Lemons commented Mr. Davey's letter seems to carry a disclaimer with it that the City be included in the assessment district; does it still represent a valid request to form the district if the City is not included? Ms. Skousen stated yes; some of the things he is requesting the City could not comply with. Ms. Skousen stated the amount of the assessment is set year to year. The notice of intention tonight is for the maintenance of the park, not capital improvements. Mayor Sheetz opened the hearing to the public for comments. Mel Lees, property owner and resident at Bayshore Village, stated he assumed the assessment is only for maintenance, not liability; that was supposed to be handled by the City. He said there should be some procedural requirements for the City to liaison with the people being assessed so they can have input into what's happening with the park and the amount of assessment. MINUTES - MORRO BAY CITY COUNCIL • REGULAR MEETING - JULY 9, 1990 PAGE 14 Mr. Wolter stated in the original homeowners agreement, the City accepted liability for ownership and improvements, but not main- tenance of the park. Since the City would be maintaining the park, it should accept maintenance liability as well. If the City contracts for the service, the contractor will provide insurance. Assessment district members will annually have the opportunity to review the assessment fee before the City Council establishes the charge each year; this is a requirement of the Act. MOTION: Councilmember Wuriu moved for adoption of Resolution No. 88-90. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) MOTION: Councilmember Baker moved 23 July 1990 be set as the hearing date for the formation of a landscaping and lighting assessment district for Bayshore Bluffs Park. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Councilmember Odell remarked he is a little leery about what has been done because someone in the future could add capital improvements to the park and sock it to the district members to pay for maintenance expenses. Council recessed from 8:35 p.m. to 9:00 p.m. C-2 REQUEST FOR ASSIGNMENT OF LEASE SITES 87-89W (DBA BOB'S SEAFOOD GOLDEN SWAN GIFT SHOPS BOB'S SPORT FISHING MARINE WAYS) FROM RALPH AND SHIRLEY GUNTHER TO MICHAEL AND B.J. GREENBERG; RESOLUTIONS NO. 90-90 AND 91-90 Mr. Napper reviewed Mr. Gunther's request to transfer his lease sites to Michael and B.J. Greenberg. Although the Greenbergs' financial experience is characterized as "marginal", the last two years show substantial income and financial lending institutions have committed to the transfer. The proposed Lessee is requesting transfer without any alterations to the leases; the City cannot unreasonably withhold or deny transfer, pursuant to the lease agreements. Councilmember Baker noted Mr. Sullivan's comments about the Lessee and his failure to maintain the marine ways. Mr. Napper stated the old City and Pipkin Lease language does not give the City enough authority to enforce the specific use. The Greenbergs have indicated they intend to maintain current uses on the site. Councilmember Odell asked if the City can change the lease document? Mr. Napper responded no, not unilaterally; only if the Lessee requests a new item or use can lease content nego- tiations be opened. MOTION: Councilmember Odell moved for adoption of Resolution No. 90-90 and 91-90. The motion was seconded by Coun- cilmember Baker and unanimously carried. (5-0) 19 MINUTES - MORRO BA,CITY COUNCIL REGULAR MEETING - JULY 9, 1990 PAGE 15 • ��]� 7,MM�i]�t•]aiY•x'�Yii:3q:�iY_i:L`L�Y77�1:=iT,'��1�.�31 • � • 00 MOTION: Councilmember Odell moved this item be tabled. The motion was seconded by Mayor Sheetz and carried with Councilmember Lemons voting no. (4-1) Councilmember Odell indicated although he was initially in favor of this idea, the staff report indicates it will not resolve the liability problem which is why he initially requested considera- tion of the item. E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.9(B)(1); POTENTIAL LITIGATION E-2 GOVERNMENT CODE SECTION 54957.6(A); LABOR RELATIONS E-3 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY NEGOTIATIONS, DOMENGHINI MOTION: Councilmember Baker moved the meeting adjourn to Closed Session. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mayor Sheetz announced the Closed Session items. Council adjourned to Closed Session at 9:12 p.m. and returned to regular session at 10:00 p.m. F. ADJOURNMENT MOTION: Councilmember Odell moved the meeting be adjourned. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) The meeting adjourned at 10:00 p.m. Recorded by: ARDITH DAVIS City Clerk