Loading...
HomeMy WebLinkAboutJuly to DecemberCITY OF MORRO BAY PUBLIC NOTICE NOTICE IS HEREBY GIVEN that the regular Morro Bay City Council meeting scheduled for Monday, 23 December 1991, has been cancelled by order of the City Council. The next City Council meeting will be held Monday, 13 January 1991, beginning at 6:00 p.m. in the Veterans Memorial Hall, 209 Surf Street, Morro Bay. DATED: December 16, 1991 �CGI,6fC ARDITH DAVIS, City Clerk City of Morro Bay, CA 4 4=,O rn 4& c1, l99/ is b 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. CLOSED SESSION - DECEMBER 9, 1991 CITY HALL CONFERENCE ROOM - 5:15 P.M. 595 HARBOR ST., MORRO BAY, CA E-1 GOVERNMENT CODE SECTION 54957, PERSONNEL MATTERS REGULAR MEETING - DECEMBER 9, 1991 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 NOVEMBER 25, 1991 PULLED A-2 STATUS REPORT ON CITY'S EXISTING WATER SUPPLY A-3 PROGRESS REPORT TO OBTAIN IMPROVED DIRECTIONAL SIGNAGE ON HIGHWAYS 1 AND 41 A-4 CANCELLATION OF 23 DECEMBER 1991 REGULAR CITY COUNCIL MEETING A-5 SET DATE TO INTERVIEW ADVISORY BOARD CANDIDATES A-6 PROGRESS REPORT ON WASTEWATER EFFLUENT RECLAMATION JOINT PILOT STUDY A-7 RELEASE OF 1991 ANNUAL WATER REPORT 1 0 •0 A-8 REPORT ON ADMINISTRATIVE EXTENSION OF TIME FOR COASTAL DEVELOPMENT PERMIT ON TEMPORARY EMERGENCY DESALINATION PLANT (CDP 09-91 E-2) A-9 RESOLUTION NO. 126 ANNOUNCING FINDINGS AND UPHOLDING APPEAL OF A DECI- SION BY THE PLANNING DEPARTMENT, AND PROVIDING LEGAL STATUS TO A SECOND RESIDENTIAL UNIT (500 MARINA ST.; BARBARA PLAYAN, APPELLANT) r-MMURM.... B-1 STATUS REPORT ON IMPLEMENTATION OF PARK IRRIGATION SYSTEMS RETROFIT PROJECTS B-2 ORDINANCE NO. 409 DISBANDING DOWNTOWN SIDEWALK SALES COMMITTEE (SECOND READING/ADOPTION) C-1 SELECTION OF VICE MAYOR FOR ONE-YEAR TERM ENDING DECEMBER 1992 C-2 COUNCILMEMBER REQUEST FOR FISCAL ANALYSIS OF THE COASTAL BRANCH, PHASE II, STATE WATER PROJECT (MEASURE G) C-3 STATUS REPORT ON MAINTENANCE AND IMPROVEMENT CONDITIONS OF CERTAIN CITY FACILITIES AND BUILDINGS C-4 COUNCILMEMBER REQUEST FOR HISTORICAL REVIEW OF DEVELOPMENT AND IMPLE- MENTATION OF CITY WATER MANAGEMENT PLAN C-5 COUNCIL SUPPORT FOR GRANT FUNDS FROM CALIFORNIA DEPARTMENT OF CONSER- VATION'S DIVISION OF RECYCLING TO COASTAL RESOURCES CENTER FOR MARINE DEBRIS RECYCLING PROGRAMS IN HARBORS AND MARINAS D. PUBLIC HEARINGS, REPORTS & APPEARANCES D-1 CONTINUED CONSIDERATION OF DRAFT ENVIRONMENTAL IMPACT REPORT AND DEVELOPMENT APPLICATION ON PROPOSED 120 SINGLE FAMILY RESIDENTIAL LOT SUBDIVISION (CLOISTERS; CUP 28-90/TM 01-90/CDP 42-90) D-2 APPROVAL OF EXCLUSIVE 5-YEAR REFUSE COLLECTION FRANCHISE AGREEMENT WITH MORRO BAY GARBAGE SERVICES WITH INTERIM NON-EXCLUSIVE RIGHT TO RECYCLABLES D-3 CONSIDERATION OF AMENDING MORRO BAY MUNICIPAL CODE §12.08 TO ESTABLISH FINES FOR REMOVAL OF TREES WITHOUT A CITY PERMIT UNEEWN93• 1_�kly _ Z 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 CLOSED SESSION - DECEMBER 9, 1991 CITY HALL CONFERENCE ROOM - 5:15 P.M. Mayor Sheetz called the meeting to order at 5:15 p.m. PRESENT: Rose Marie Sheetz Mayor John Baker Councilmember Ben Luna Councilmember Susan Mullen Councilmember Tom Wuriu Councilmember STAFF: Gary Napper City Administrator Forrest Henderson Asst. City Admin. Jeff Jones Fire Chief PUBLIC COMMENT None. E. CLOSED SESSION • �I VIAZY mcol• •� Mayor Sheetz read Closed Session statement. MOTION: Councilmember Luna moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmem- ber Mullen and unanimously carried. (5-0) The meeting adjourned to Closed Session at 5:16 p.m. and returned to regular session at 5:35 p.m. F. ADJOURNMENT MOTION: Mayor Sheetz moved the meeting be adjourned. The motion was seconded by Councilmember Wuriu and unani- mously carried. (5-0) The meeting adjourned at 5:35 p.m. Recorded bv. GARY NAPP8R Deputy City 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 9, 1991 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 Ben Luna Susan Mullen Tom Wuriu ABSENT: None STAFF: Gary Napper Judy Skousen Bill Boucher Louise Burt Ardith Davis William Farrel Nick Nichols Steve Wolter Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Assoc. Civil Eng. Finance Director City Clerk Community Dev. Dir. Public Works Dir. Rec. & Parks Dir. Reverend Jim Berg of the Calvary Lutheran Church gave the invoca- tion, and Horace Strong led the Pledge of Allegiance. 1. Art Stansbury, 145 Java, read letters from Irene Ramos at 160 Java, and Mr. and Mrs. Paske at 184 Java, supporting resi- dential use for the Cloisters property. Mr. Stansbury suggested those people advocating the developers donate the property to the City should purchase the property themselves and donate it to the City. 2. Mary Phillips, 2645 Ironwood, gave Council a copy of a November 1991 letter from County Hydraulic Planning Engineer Louis Gibson regarding Nacimiento water. She said the City should look into which agencies have subscribed for this water; it is over -subscribed and not even a project yet. DECLARATION OF FUTURE AGENDA ITEMS 1. Councilmember Mullen stated Measure I passed a year ago (revising water allocation procedures); she requested a report on the status of implementation. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 9, 1991 PAGE 2 2. Councilmember Mullen requested an item be agendized to discuss including additional conservation opportunities into City building codes by allowing for in -home recycling systems. 3. Councilmember Wuriu asked when a proposal for solving the flooding problem on 2700 block of Juniper will be scheduled on the agenda? Mayor Sheetz stated that capital improvement item will be considered with the Mid -Year Budget review in January. A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF NOVEMBER 25 1991 PULLED A-2 STATUS REPORT ON CITY'S EXISTING WATER SUPPLY Mr. Napper recommended Council receive the report for file. A-3 PROGRESS REPORT TO OBTAIN IMPROVED DIRECTIONAL SIGNAGE ON HIGHWAYS 1 AND 41 Mr. Napper recommended Council accept the Report as submitted, and authorize continued contact with CalTrans to obtain improved directional and informational signage. A-4 CANCELLATION OF 23 DECEMBER 1991 REGULAR CITY COUNCIL MEETING Mr. Napper recommended Council cancel the December 23rd meeting. A-5 SET DATE TO INTERVIEW ADVISORY BOARD CANDIDATES Mr. Napper recommended Council set Tuesday, January 7th at 5:30 p.m. in the City Hall Conference room to interview advisory board applicants. A-6 PROGRESS REPORT ON WASTEWATER EFFLUENT RECLAMATION JOINT PILOT STUDY (DR. ALEXANDER) Mr. Napper recommended Council receive the report for file, agen- dize a status report for the next Morro Bay-Cayucos Sanitary Dis- trict joint meeting to be held in January 1992, and instruct staff to continue to work with Dr. Alexander on the pilot study. A-7 RELEASE OF 1991 ANNUAL WATER REPORT Mr. Napper recommended Council receive the report for file, and set January 13th as the public hearing date for the Report. 9 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 9, 1991 PAGE 3 A-8 REPORT- ON ADMINISTRATIVE EXTENSION OF Mr. Mapper recommended Council ratify the issuance of Administra- tive Amendment No. 1 to Emergency Coastal Development Permit No. 09-91 E-2. A-9 RESOLUTION NO, 126 ANNOUNCING FINDING AND UPHOLDING APPEAL OF A DECISION BY THE PLANNING DEPARTMENT, AND PROVIDING LEGAL STATUS TO A SECOND RESIDENTIAL UNIT (500 MARINA ST.; BARBARA PLAYAN, APPELLANT) Mr. Mapper recommended Council adopt Resolution No. 126-91. Councilmember Luna pulled Items A-2 and A-3, and Councilmember Mullen pulled Items A-6 and A-8 for separate discussion. A-2 STATUS REPORT ON CITY'S EXISTING WATER SUPPLY Councilmember Luna asked at point in time the desal unit will be shut down? Mr. Boucher stated when the TDS levels in Morro Basin drop to the State's safe level. Councilmember Wuriu asked if the City is required to shut the desal plant down tomorrow, what would happen to the City's water supply? Mr. Boucher stated the City would not be in compliance with health standards for delivering water to its citizens. There is a lengthy process for non-compliance; the Health Depart- ment is responsible for determining penalties. A-3 PROGRESS REPORT TO OBTAIN IMPROVED DIRECTIONAL SIGNAGE ON HIGHWAYS 1 AND 41 Councilmember Luna commended Mr. Farrel and staff on an excellent report, and indicated he was looking forward to CalTrans' response. A-6 PROGRESS REPORT ON WASTEWATER EFFLUENT RECLAMATION JOINT PILOT STUDY (DR. ALEXANDER) Councilmember Mullen stated she would like to see this project move forward with a higher priority; she believes reclamation is more environmentally sensitive than any of the other options for supplemental water. Mr. Mapper outlined staff's involvement in other current projects such as the desal plant and South T-Pier reconstruction. At some point an independent consultant experi- enced in effluent reclamation should be hired to evaluate and make recommendations to Council concerning Mr. Alexander's proposal. • • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 9, 1991 PAGE 4 Mr. Baker commented on Mr. Alexander's statement reclamation is cheaper than State Water, and said Mr. Alexander should be required to show supporting data. Councilmember Mullen stated Dr. Alexander has projects of this nature in New Mexico and Mexico; Council should be putting more staff and money into this project. Dr. Alexander has farmers ready to use the reclaimed water. Council asked the item be re-agendized for the next meeting (January 13th). A-8 REPORT ON ADMINISTRATIVE EXTENSION OF TIME FOR COASTAL DEVELOPMENT PERMIT ON TEMPORARY EMERGENCY DESALINATION PLANT Councilmember Mullen questioned whether the attached diagram in the report is correct. Ms. Skousen stated it is; the report is for an extension of time only. MOTION: Councilmember Wuriu moved for approval of the Consent Calendar. The motion was seconded by Councilmember Luna and unanimously carried. (5-0) B. UNFINISHED BUSINESS B-1 STATUS REPORT ON IMPLEMENTATION OF PARK IRRIGATION SYSTEMS RETROFIT PROJECTS Mr. Wolter reviewed his staff report and recommendation to use the $31,000 available for park irrigation retrofit to retrofit Monte Young and "City" Park. The cost will be approximately $20,000. He noted the higher costs for retrofitting Del Mar ($70,000) and Keiser Park ($50,000) could not be accommodated within budgeted funds. MOTION: Councilmember Luna moved staff proceed with park irri- gation system retrofit projects for Monte Young and Morro Bay "City" Park. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) B-2 ORDINANCE NO. 409 DISBANDING DOWNTOWN SIDEWALK SALES COMMIT- TEE (SECOND READING/ADOPTION) Mr. Napper stated the ordinance disbanding the Downtown Sidewalk Sales Committee is scheduled for second reading this evening. Councilmember Luna asked if the ordinance eliminates any future sidewalk sales? Mr. Napper responded permits will still be available but issued administratively. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 9, 1991 PAGE 5 MOTION: Councilmember Wuriu moved Ordinance No. 409 be read by title and number only. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mr. Mapper read Ordinance No. 409 by title and number only. MOTION: Councilmember Baker moved for the adoption of the sec- ond and final reading of Ordinance No. 409. The motion was seconded by Councilmember Luna and unanimously carried. (5-0) C. NEW BUSINESS C-1 SELECTION OF VICE MAYOR FOR ONE-YEAR TERM ENDING DECEMBER 1992 Mr. Mapper stated Council annually selects a Vice Mayor to serve in the absence of the Mayor; Councilmember Luna served for 1991. Councilmember Wuriu nominated Councilmember Baker for the posi- tion of Vice Mayor; Councilmember Luna nominated Councilmember Mullen. The nomination for Councilmember Baker to serve as Vice Mayor passed (3-2) with Councilmembers Luna and Mullen dissenting. C-2 COUNCILMEMBER REQUEST FOR FISCAL ANALYSIS 'OF THE COASTAL AQUEDUCT, STATE WATER PROJECT (MEASURE G) Mr. Mapper stated staff has compiled available financial data on the State Water Project for Council information. He noted pro- jections of actual costs cannot be made because it is unknown how many agencies will participate in the project. Councilmember Luna complimented Finance Director Louise Burt on preparation of the report. Councilmember Mullen stated the information is completely inade- quate, but realizes it is not the fault of staff. There are too many unknowns regarding the State Water Project. C-3 STATUS REPORT ON MAINTENANCE AND IMPROVEMENT CONDITIONS OF CERTAIN CITY FACILITIES AND BUILDINGS Mr. Wolter reviewed the current condition of City facilities and the need for renovations in order to comply with the Americans With Disabilities Act. He reviewed problems with asbestos in several facilities, but noted there is no danger of asbestos con- tamination to building occupants at this time. Staff will be generating a facility capital improvement plan and budget for Council consideration in the near future. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 9, 1991 PAGE 6 Information report; no action taken. C-4 COUNCILMEMBER REQUEST FOR HISTORICAL REVIEW OF DEVELOPMENT AND IMPLEMENTATION OF CITY WATER MANAGEMENT PLAN Mr. Napper stated this item was requested to be agendized by Councilmember Luna. Staff has provided information on file to facilitate Council discussions, and staff is prepared to receive direction from Council. Councilmember Luna recommended this matter be sent to the Water Advisory Board for their discussion, and Council can proceed from there. Council agreed. Councilmember Mullen commented Williams Brothers will be severely impacted by the City's lack of a Water Management Plan; she asked if anyone else is affected? Mr. Farrel stated he can think of no other large property owner; Cloisters is exempt because the prop- erty was previously subdivided. Councilmember Mullen requested this information be communicated to the Water Advisory Board as well. Mayor Sheetz expressed concerns the City will be asked to mitigate all water user problems in the basins outside the City through preparation of this Plan. Council consensus was to forward the matter to the Water Advisory Board. C-5 COUNCIL SUPPORT FOR GRANT FUNDS FROM CALIFORNIA DEPARTMENT OF CONSERVATION'S DIVISION OF RECYCLING TO COASTAL RESOURCES CENTER FOR MARINE DEBRIS RECYCLING PROGRAMS IN HARBORS AND MARINAS Mr. Napper stated this item has been scheduled at the request of Councilmember Mullen. Staff has provided updated, information noting the grant request by the Coastal Resource Center has been denied. Councilmember Mullen stated no action is necessary on the item at this time; if anything further develops, she will bring it to Council's attention. D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 CONTINUED CONSIDERATION OF DRAFT ENVIRONMENTAL IMPACT REPORT AND DEVELOPMENT APPLICATION ON PROPOSED 120 SINGLE FAMILY RESIDENTIAL LOT SUBDIVISION (CLOISTERS• CUP 28-90/TM 01- 90/CDP 42-90) Mr. Farrel reviewed the final EIR for the Cloisters project. He believes the EIR is reasonably complete and adequate for certifi- cation. He reviewed responses to comments from the last public hearing on the issues of traffic circulation, secondary access, MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 9, 1991 PAGE 7 pedestrian overpass of Highway 1, fire and other development impact fees, park improvements, flooding liabilities, and view - shed impacts. He noted Council should not attempt to protect public views unless Council can make a finding of public benefit. Councilmember Mullen asked how the project will proceed and what improvements must be done before one lot can sell if the item is approved this evening? Mr. Farrel responded ESHA restoration, grading and earthfill, infrastructures, streets, landscaping and parks. Councilmember Mullen was concerned the eight foot fill will be subject to liquefaction. Mr. Farrel believes it can be engineered so this will not happen. Councilmember Wuriu questioned the procedure for homes to obtain water on the parcels. Mr. Farrel stated lots in the Cloisters area currently hold places on the long-term waiting list for water. However, it is staffs position once the subdivision is approved, the old lots disappear and new lots are created. The positions of old lots on the waiting list are then lost, and the new ones can be added but at the end of the waiting list. Councilmember Luna asked questions with regard to the flood plain area; Mr. Farrel responded the applicant can submit data to get FEMA to remove them from the flood plain zone, or use fill to get above the flood plain. Councilmember Luna asked if the Settlement Agreement is binding as far the two story units on the south end of the property? Ms. Skousen stated the conditions of the Settlement Agreement have been met by putting the agreed zoning in place. The LCP provides the maximum perimeters; Council is free to do what is in the best interests of the City. Mayor Sheetz opened the hearing to the public. Vic Montgomery, 3026 South Higuera, stated he represents the applicant on this project. He stated the conditions recommended by staff are acceptable to the applicant including the turf and playground area for a park. He noted the second floor to homes will be limited to 50% of the ground floor, and there has been substantial compromise on the extent of property for viewshed purposes. Councilmember Wuriu asked if there has been any further compro- mise on the two story height of the units? Mr. Montgomery reviewed the number of compromises made by the applicant on this issue. They are also willing to offer one further compromise tonight: keep all units around the perimeter of the southern portion of the project at one story. Councilmember Baker asked how many number of two story homes are eliminated by this action? Mr. Montgomery responded by 50% (15 lots). MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 9, 1991 PAGE 8 Ed Smith objected to two story heights on eight feet of fill; Mr. Farrel noted the zoning standards of this land allow this provision. John Sharp said he is on the City's long-term waiting list for water. He does not believe it is fair for anyone who purchases a lot in the Cloisters project to maintain their position on the long-term waiting list. Mayor Sheetz assured Mr. Sharp they will follow the same requirements as anyone else. Ann Freeman, 785 Cabrillo, noted the number of compromises and concessions made by the applicant; if the project does not go forward, it will be a taking of their property. Tom Geshay objected to the two story units but was glad to see their latest compromise. Give them more lots but remove all two- story homes. Ned Rogoway, 150 Formosa, read a letter of objections to the pro- ject co -signed by Warren Dorn. Roger Ewing expressed concerns about water, flood plain, two story height, and traffic circulation. Neal Passage, 404 Monterey, spoke in favor of the project. Mary Phillips spoke in favor of supplying water to existing lots before this project. Warren Dorn, 212 Beach Street, said the zoning of this property allows many alternatives for a project besides residential; it would be a mistake to approve this project. The Corps of Engi- neers will not let it be built on a flood plain; viewshed and school district impacts are also not acceptable or addressed. Chuck Clarke, 2205 Nutmeg, stated he was chairman of the Blue Ribbon Committee formed to make recommendations for zoning on this property. He encouraged Council to apply the test of rea- soning in approving this project. He believes the EIR needs a lot more work and research. Mark Allen said it is time to either approve the project or buy the property from the applicant. Pauline Stansbury spoke in favor of the project. Bess Przybyla spoke in favor of the project; she said it is the best deal offered. Frances Budlong, 165 Bali, spoke in favor of the project. Jim Silver, 1800 Main Street, spoke in favor of the project. n n MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 9, 1991 PAGE 9 Dee Dee Edwards said she would rather see the sunset through trees than houses. Council recessed from 8:28 p.m. to 8:38 p.m. Councilmember Wuriu stated this important item has been before the City since he has been on the Council, which is three years. If the money was available, he would favor purchasing the prop- erty for open space. He believes the present developer has done a very good job of trying to comply with the law and the desires of the people. He noted although he prefers one story homes, he is impressed this evening with the developer's agreement to fur- ther reduce the number of two story homes. He doubts the City could get a better plan or more cooperative developer. He will vote in favor of the project. Councilmember Luna said his personal preference is also to leave the property in its natural state. However, he recognizes the property is privately owned and at some point a development is going to be there. He said after decades of work and study, the present plan is probably the best the City is going to see for the area. He commended the developer on coming up with one of the most environmentally sensitive projects the City has seen. He indicated he will probably support the project. Councilmember Baker stated he believes a property owner has a right to develop his property or be justly compensated for it. He said the property owners have been extremely cooperative and patient; he will support the project. Councilmember Mullen thanked the developers for an outstanding job of providing public review of their proposal. She stated her biggest concern is the project's close proximity to Environmen- tally Sensitive Habitat. She believes 120 developed lots is too many. Her other concerns include water, movement of wetlands, impact of fill, and traffic. She will not vote in favor of the project. Mayor Sheetz stated she was on the Planning Commission in 1983 and voted to table a proposal for this property which included 664 residences. She said this property has had more scrutiny and consultant reports than any other project in Morro Bay. She believes the time has come to move forward. Mayor Sheetz prefers a children's park on the property; she believes the wetlands area can be successfully established on the property. MOTION: Councilmember Wuriu moved for the adoption of Resolu- tion No. 127-91 to include the reduction of two story units as outlined by Mr. Montgomery and requirement of one acre improved park. The motion was seconded by Councilmember Baker and carried on the following vote: MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 9, 1991 PAGE 10 AYES: Baker, Luna, Wuriu, Sheetz NOES: Mullen D-2 APPROVAL OF EXCLUSIVE 5-YEAR REFUSE COLLECTION FRANCHISE AGREEMENT WITH MORRO BAY GARBAGE SERVICES WITH NON-EXCLUSIVE RIGHT TO RECYCLABLES Councilmember Mullen stepped down from consideration on this item due to a conflict of interest. Mike Upton reviewed the proposed agreement between the City and Morro Bay Garbage Service for an exclusive solid waste franchise and an interim non-exclusive curbside recycling franchise. The Solid Waste Management Board has spent numerous hours working on this agreement, and recommends approval. Mr. Upton stated the Agreement does not provide for a rate increase; and, noted Morro Bay has the lowest garbage collection rates in the County at this time. Mayor Sheetz opened the hearing to the public for comments. Mary Phillips said the City should find out if Wil-Mar, the garbage service in Atascadero, is interested in this contract. She stated the contract must go to bid. Roger Ewing, Vice Chair of the Solid Waste Management Board, stated the proposed contract is a good one and beneficial to the City. Councilmember Wuriu asked if there is anyone who would bid on the contract if it was offered? Mayor Sheetz stated other collection companies would not bid for one city; she reviewed discussions at the Area Council level regarding a regional garbage service contract. Mayor Sheetz closed the hearing to the public. Councilmember Luna commented he has talked to Wil-Mar Disposal three times, and they have no interest in serving the City of Morro Bay. He asked questions regarding the $1/bag service study. Mr. Upton explained the program would not work in Morro Bay because the service would end up costing more than one can. Councilmember Luna asked if Council can expect a recycling RFP within the next six months? Mr. Upton stated yes. MOTION: Councilmember Wuriu moved for adoption of Resolution No. 125-91. The motion was seconded by Councilmember Luna and carried with Councilmember Mullen abstaining. (4-0-1) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 9, 1991 PAGE 11 Councilmember Mullen returned to the Council dais. D-3 CONSIDERATION OF AMENDING MORRO BAY MUNICIPAL CODE 412.08 TO ESTABLISH FINES FOR REMOVAL OF TREES WITHOUT A CITY PERMIT Mr. Farrel stated staff is in the process of developing an ordi- nance for Council consideration which includes a fine for cutting down trees without a permit. The proposed ordinance will be sub- mitted to the Streets and Trees Committee for their review and recommendations to Council. Ms. Skousen noted penalties must be tied to reimbursement of actual costs. Mayor Sheetz opened the hearing to the public for comments. Ed McCracken asked about trees on City property that extend into private property? Mr. Napper stated there is already a permit process to trim such trees. Roger Ewing said the penalty for commercial tree cutting should be the same for residential. Mayor Sheetz stated it will be the same. No action; information only. F. ADJOURNMENT MOTION: Councilmember Baker moved the meeting be adjourned. The motion was seconded by Councilmember Luna and unan- imously carried. (5-0) The meeting adjourned at 9:28 p.m. Recorded by: ae y ARDITH DAVIS City Clerk i E `i2�imlA-j o?5, rf9/ 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. CLOSED SESSION - NOVEMBER 25, 1991 CITY HALL CONFERENCE ROOM - 5:15 P.M. 595 HARBOR ST., MORRO BAY, CA E-1 GOVERNMENT CODE §54956.9(A), PENDING LITIGATION A. GIFFORD VS. CITY OF MORRO BAY,. Superior Court Case No. 68652 B. SONIC VS. CITY OF MORRO BAY, Superior Court Case No. 70852 REGULAR MEETING - NOVEMBER 25, 1991 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 NOVEMBER 12, 1991 A-2 EXPENDITURE REPORT - OCTOBER 1991 A-3 STATEMENT OF INVESTMENTS - OCTOBER 1991 A-4 WATER SUPPLY STATUS REPORT A-5 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (NIBLER) A-6 AUTHORIZATION TO ADVERTISE ADVISORY BOARD/COMMISSION ANNUAL VACANCIES A-7 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (SIHOTA) NONE C-1 RESOLUTION NO. 122-91 APPROVING AMENDMENT CONSOLIDATING TERM, RENT, PERMITTED USES, AND RECONSTRUCTION ON LEASE SITES 50-51W (ASSOCIATED PACIFIC CONSTRUCTORS, 451-471 EMBARCADERO) C-2 SELECTION OF COUNCIL SUB -COMMITTEE TO DEVELOP STRATEGY AND REPRESENTA- TION FOR CITIZENS COMMUNITY GOALS ADVISORY COMMITTEE C-3 RESOLUTION NO. 123-91 RECITING THE FACT OF THE SPECIAL MUNICIPAL ELEC- TION HELD IN THE CITY OF MORRO BAY ON THE 5TH DAY OF NOVEMBER, 1991; DECLARING THE RESULTS THEREOF; AND SUCH OTHER MATTERS AS ARE PROVIDED BY LAW C-4 REQUEST FROM COUNTY OF SAN LUIS OBISPO FOR AGENDA ITEMS FOR JOINT BOARD OF SUPERVISORS/CITY COUNCILS MEETING D-1 ORDINANCE NO. 409 DISBANDING DOWNTOWN SIDEWALK SALES COMMITTEE (INTRODUCTION/FIRST READING) D-2 APPEAL OF COMMUNITY DEVELOPMENT DEPARTMENT ADMINISTRATIVE DETERMINA- TION TO NOT ISSUE ELECTRICAL BUILDING PERMIT ON NON -CONFORMING PROP- ERTY (500 MARINA ST.; BARBARA PLAYAN, APPELLANT) D-3 CONSIDERATION OF DRAFT ENVIRONMENTAL IMPACT REPORT AND DEVELOPMENT APPLICATION ON PROPOSED 120 SINGLE FAMILY RESIDENTIAL LOT SUBDIVISION (CLOISTERS; CUP 28-90/TM 01-90/CDP 42-90) D-4 CONTINUED HEARING OF DRAFT ORDINANCE INCORPORATING CERTAIN REQUIRE- MENTS REGARDING THE PROTECTION AND CONSTRUCTION OF AFFORDABLE HOUSING STOCK (ZOA 04-91) D-5 HEARING ON LOCAL UNMET TRANSIT AND BIKEWAYS NEEDS FOR SUBMITTAL TO SAN LUIS OBISPO AREA COORDINATING COUNCIL D-6 COUNCILMEMBER REQUEST TO CONSIDER PURCHASE OF TROLLEY WITH NEW MONIES FROM TRANSIENT OCCUPANCY TAX RATE INCREASE D-7 APPROVAL OF EXCLUSIVE 5-YEAR REFUSE COLLECTION FRANCHISE AGREEMENT WITH MORRO BAY GARBAGE SERVICE WITH NON-EXCLUSIVE RIGHT TO RECYCLABLES PULLED D-8 REQUEST FOR EARLIER RELEASE OF CITY COUNCIL AND PLANNING COMMISSION AGENDA 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 CLOSED SESSION - NOVEMBER 25, 1991 CITY HALL CONFERENCE ROOM - 5:15 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. PRESENT: Rose Marie Sheetz Mayor John Baker Councilmember Ben Luna Councilmember Susan Mullen Councilmember Tom Wuriu Councilmember STAFF: Forrest Henderson Asst. City Admin. Judy Skousen City Attorney PUBLIC COMMENT None E. CLOSED SESSION E-1 GOVERNMENT CODE §54956.9(A), PENDING LITIGATION A. GIFFORD VS. CITY OF MORRO BAY, Superior Court Case No. 68652 B. SONIC VS. CITY OF MORRO BAY, Superior Court Case No. 70852 MOTION: Councilmember Baker moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmem- ber Wuriu and unanimously carried. (5-0) Mayor Sheetz read the Closed Session statement. The meeting adjourned to Closed Session at 5:15 p.m. and returned to regular session at 5:49 p.m. F. ADJOURNMENT MOTION: Mayor Sheetz moved the meeting be adjourned. The motion was seconded by Councilmember Baker and unani- mously carried. (5-0) The meeting adjourned at 5:50 p.m. Recorded by: Forrest Henderson Deputy City Clerk MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 25, 1991 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:05 p.m. INT-If rel- iiii PRESENT: Rose Marie Sheetz John Baker Ben Luna Susan Mullen Tom Wuriu ABSENT: None STAFF: Forrest Henderson Judy Skousen Rick Algert Ardith Davis William Farrel Mike Upton Horace Strong gave the invocation, Allegiance. I��I��Fi�Z�l•7'v�l_N:l��i Mayor Councilmember Councilmember Councilmember Councilmember Asst. City Admin. City Attorney Harbor Director City Clerk Community Dev. Dir. Admin. Asst. and led the Pledge of 1. Warren Dorn displayed new emblems made for Morro Bay Beautiful. 2. Mary Phillips commented regarding the desalination plant. 3. Nancy Bast requested a fiscal impact analysis of ballot Measure G. 4. Lilly Collier, Ironwood, requested a stop sign on Avalon Street where it intersects with Ironwood Avenue. Mayor Sheetz stated the item will be referred to the Streets and Trees Committee. 5. Roger Ewing said at the last City Council meeting two Councilmembers and the Mayor invalidated Measure H, the Williams Brothers initiative. They have abused the democratic rights of the citizens. • —.�.. _ _ • • • ter. 1. Councilmember Mullen requested an item be scheduled on the next agenda to consider support of a grant to the Coastal MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 25, 1991 PAGE 2 Resources Center from the Department of Recycling. The Coastal Resources Center supports harbor recycling programs. 2. Councilmember Mullen requested a future agenda item be scheduled to discuss the policy with regard to Councilmembers meeting individually with developers; a clear policy needs to be developed. 3. Councilmember Luna requested an agenda item be sched- uled to receive an update on the Water Advisory Board's review of the City's Master Water Plan. 4. Councilmember Luna requested an agenda item be sched- uled on the next agenda to receive a fiscal analysis on ballot Measure G, State Water. A. CONSENT C A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF NOVEMBER 12. 1991 Mr. Henderson recommended Council approve the minutes as submitted. A-2 EXPENDITURE REPORT - OCTOBER 1991 Mr. Henderson recommended Council approve the Expenditure Report as submitted. A-3 STATEMENT OF INVESTMENTS - OCTOBER 1991 Mr. Henderson recommended Council receive the report for file. A-4 WATER SUPPLY STATUS REPORT Mr. Henderson recommended Council accept the report for file. A-5 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (NIBLER) Mr. Henderson recommended Council reject the claim, and authorize the City Clerk to send the rejection notice. A-6 AUTHORIZATION TO ADVERTISE ADVISORY BOARD/COMMISSION ANNUAL VACANCIES Mr. Henderson recommended Council authorize staff to advertise the vacant advisory board positions. A-7 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (SIHOTA) Mr. Henderson recommended Council reject the claim, and authorize the City Clerk to send the rejection letter. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 25, 1991 PAGE 3 Councilmember Mullen requested Item A-4 be pulled for separate discussion. MOTION: Councilmember Luna moved for the approval of the Con- sent Calendar with the exception of Item A-4. The motion was seconded by Councilmember Wuriu and unani- mously carried. (5-0) A-4 WATER SUPPLY STATUS REPORT Councilmember Mullen requested an update on the John Alexander reclamation program. John Alexander was present and gave a report. Mr. Henderson suggested the item be agendized for the next meeting at which time a report from staff will be available. Council concurred. MOTION: Councilmember Luna moved for the approval of Item A-4. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) B. UNFINISHED BUSINESS NONE C. NEW BUSINESS C-1 RESOLUTION NO. 122-91 APPROVING AMENDMENT CONSOLIDATING TERM, RENT, PERMITTED USES, AND RECONSTRUCTION ON LEASE SITES 50-51W (ASSOCIATED PACIFIC CONSTRUCTORS, 451-471 EMBARCADERO) Mr. Algert reviewed his staff report and the terms of lease. MOTION: Councilmember Luna moved for approval of Resolution No. 122-91. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) C-2 SELECTION OF COUNCIL SUB -COMMITTEE TO DEVELOP STRATEGY AND REPRESENTATION FOR CITIZENS COMMUNITY GOALS ADVISORY Mayor Sheetz stated this item is scheduled as the result of dis- cussions at a recent joint City Council/Planning Commission meet- ing. She appointed Councilmembers Baker and Luna to serve on the sub -committee. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 25, 1991 PAGE 4 C-3 RESOLUTION NO 123-91 RECITING THE FACT OF THE SPECIAL MUNICIPAL ELECTION HELD IN THE CITY OF MORRO BAY ON THE 5TH DAY OF NOVEMBER 1991• DECLARING THE RESULTS THEREOF• AND SUCH OTHER MATTERS AS ARE PROVIDED BY LAW Ardith Davis stated the Board of Supervisors has completed the canvass of the November 5, 1991 election; the results have been formalized in a resolution for Council adoption. MOTION: Councilmember Baker moved for the adoption of Resolu- tion No. 123-91, and the Resolution be forwarded to the Board of Supervisors and Clint Milne, County Engineer. Mayor Sheetz pointed out the County has the results of the elec- tion since they conducted it. Councilmember Baker rescinded his motion. MOTION: Councilmember Luna moved for the adoption of Resolution No. 123-91. The motion was seconded by Councilmember Mullen and unanimously carried. (5-0) C-4 REQUEST FROM COUNTY OF SAN LUIS OBISPO FOR AGENDA ITEMS FOR JOINT BOARD OF SUPERVISORS/CITY COUNCILS MEETING Mr. Henderson reviewed the letter from San Luis Obispo County Administrator Robert Hendrix proposing a joint meeting between the cities in San Luis Obispo County and the County of San Luis Obispo. They have requested Council response and suggestions for agenda items. MOTION: Councilmember Mullen moved the County Administrator be advised Council is interested in a joint meeting, but would prefer to wait until after the first of the year. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Council agreed to submit suggested agenda items to the City Administrator for transmittal to the County. D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 ORDINANCE NO. 409 DISBANDING DOWNTOWN SIDEWALK SALES COMMIT- TEE (INTRODUCTION/FIRST READING) Mr. Henderson reviewed the Ordinance which disbands the Sidewalk Sales Committee. It was noted the Committee has not met since 1989 due to a lack of applications for downtown sidewalk sales permits. Mayor Sheetz opened the hearing to the public. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 25, 1991 PAGE 5 Bob Finley, member of the Sidewalk Sales Committee, thanked everyone who worked on the Committee. He believes is it time to disband the Committee and leave the administrative details to staff. MOTION: Councilmember Luna moved Ordinance No. 409 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Napper read Ordinance No. 409 by title and number only. MOTION: Councilmember Baker moved for approval of the introduc- tion and first reading of Ordinance No. 409. The motion was seconded by Councilmember Wuriu and unani- mously carried. (5-0) D-2 APPEAL OF COMMUNITY DEVELOPMENT DEPARTMENT ADMINISTRATIVE DETERMINATION TO NOT ISSUE ELECTRICAL BUILDING PERMIT ON NON -CONFORMING PROPERTY (500 MARINA ST.; BARBARA PLAYAN, Mr. Farrel reviewed his report detailing events that took place in 1978 with regard to remodeling at 500 Marina St. Questions were posed by Council to which staff responded. Mayor Sheetz opened the hearing to the public for comments. Barbara Sanders, realtor, and appellant Barbara Playan spoke in favor of granting a legal second residential unit at 500 Marina. Mary Phillips stated she remembers Henry Mello had a law passed for in -lieu apartments. Perhaps this unit is one of them. Mayor Sheetz closed the hearing to the public. Councilmembers agreed there is conflicting evidence regarding this issue and were inclined to grant the appeal with findings sufficient to not set a precedent for establishing legal second units after the fact. Suggested findings for this specific case are the second unit is in an R-3 zone; there is a history of minor permits for this site; square footage of the unit is the size of a normal second unit; there is a side separate entrance to_the unit; the electri- cal circuits are those normal for a second unit; there was a mis- take on the building permit and the intention was for there to be 2 units; and there is a statement from one of the people who helped build the addition that it was intended for a second unit. MOTION: Councilmember Wuriu moved Council grant the appeal based on the foregoing findings; and, normal fees MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 25, 1991 PAGE 6 required for a second unit and standard building inspections apply. The motion was seconded by Coun- cilmember Luna and unanimously carried. (5-0) Ms. Skousen stated a formal resolution will be prepared for Coun- cil approval. Mr. Farrel noted the project is still required to go through the Coastal Development Permit process. D-3 CONSIDERATION OF DRAFT ENVIRONMENTAL IMPACT REPORT AND DEVELOPMENT APPLICATION ON PROPOSED 120 SINGLE FAMILY RESI- DENTIAL LOT SUBDIVISION (CLOISTERS• CUP 09-87/TM 02-88LpP 89-87) Mr. Farrel stated on November 18th, the Planning Commission approved the Cloister's 120 lot residential subdivision after numerous hearings. Staff reports, Planning Commission minutes and correspondence is included in the Agenda packet to facilitate Council's consideration of this item. He noted January 7th is the expiration period for City action on the project under time limitations of the State Permit Streamlining Act. Victor Montgomery of RRM Design Group, representing the owner of the Cloisters property, gave a slide presentation of the project. Mr. Montgomery reviewed most of the Agenda packet material in detail and responded to Council questions. Councilmember Luna asked how the development would proceed if the project is not started before the vesting map expires and the vesting map is not extended? Mr. Montgomery listed the number of things that have to be accomplished before construction can start, including determining a source of water for the project. Councilmember Luna asked of the developer is agreeable to a pro- posed condition which would require the development to comply with the master plan of evacuation in the event of a flood? Mr. Montgomery explained the units will be built to withstand flood conditions. Councilmember Wuriu commented some people call the development a "gate" community where there will be limited public access. Mr. Montgomery stated the area will be open to the public; there are both North and South accesses to the property. Mayor Sheetz asked about noise pollution with some of the units so close to the highway? Mr. Montgomery detailed the type of insulation and windows to be installed to mitigate the problem. Mr. Farrel stated Earth Metrics was hired by the City to prepare the Environmental Impact Report on this project. Naomi Simms of Earth Metrics reviewed the findings in the EIR. Council recessed from 8:38 p.m. to 8:48 p.m. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 25, 1991 PAGE 7 Ned Rogoway, 150 Formosa, read a letter which he and Warren Dorn signed in opposition to this project. He listed the adverse impacts which will be caused by the project. Mr. Farrel noted the hearing this evening is not for approval of homes; it is the subdivision only. Warren Dorn, 212 Beach St., spoke in opposition to the develop- ment and stated one of the reasons the Coastal Act was formed was to preserve areas such as this for the people. Thom White agreed with Mr. Dorn and stated the project has been denied numerous times. Mary Phillips, 2645 Ironwood, spoke in opposition to the project and noted there are still 600 lots in the City which should be developed before this area is. Ed McCracken stated all traffic for the project goes through one area. Bruce Risley and Roger Ewing objected to the two story height limit at the southern end of the property. Nina Litvinoff, 2360 Ironwood, objected to losing her view when the houses are built. The developer should donate the property to the City and use it as a tax write-off. Mr. Stansbury, 145 Java, stated a person has the right to build on his own property. He favored the proposed residential use to a two- to three- story building. Ed Smith spoke in favor of infill rather than expansion. This developer should get in line for water like everyone else. Skip Fleming, 730 Morro Ave., commented on the hazards of build- ing in a flood zone. Mr. Farrel noted the application before Council this evening is a Conditional Use Permit concept plan and a vesting Tentative Tract Map to subdivide the Cloisters property into 120 lots. No houses or water for houses is being considered at this time. Councilmember Wuriu questioned the height limit on the houses. Mr. Farrel stated the Settlement Agreement between the property owner and the City allows some two-story houses on the southern portion of the property in exchange for the loss of units on the site. The plan conforms to Council and Coastal Commission approval; it is a plan the City set for the developer. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 25, 1991 PAGE 8 Councilmember Mullen stated Planning Commission approval required a 4/5th vote; does this apply to Council? Mr. Farrel stated he does not believe so. Councilmember Luna stated the Planning Commission approved pas- sive recreational areas as opposed to structured areas with bar- becues and play equipment. He asked if passive recreation only could have an impact on the environmentally sensitive areas? Mr. Farrel stated this was a Planning Commission determination in which staff does not agree; there are no park facilities on this side of the highway and staff recommends one for this site. Councilmember Mullen said the Planning Commission's intention was to provide a natural education area as opposed to play areas. Councilmember Luna asked if the developer will consider single - story buildings throughout the project? Mr. Montgomery stated the current plan is the result of a compromise with the Planning Commission; he noted the second story is required to be 50% of the square footage of the first story. Councilmember Luna requested Mr. Montgomery discuss the matter with his client. Councilmember Luna also requested the developer make an effort to hire local laborers for the project. Lily Collier said Council has the power to veto or add to any Planning Commission conditions. MOTION: Councilmember Mullen moved this item be continued to the Council's December 9th meeting. The motion was seconded by Councilmember Luna and unanimously carried. (5-0) • •e c• ,• •NINE •_ „ - - Mr. Farrel reviewed his staff report including responses to con- cerns previously expressed by Council. Councilmember Baker asked who determines whether or not a project can feasibly support affordable housing? Mr. Farrel stated the Council does and relies on information from the developer to make the determination. Councilmember Wuriu stated he still objects to the concept requiring one unit in three must be affordable housing. Mayor Sheetz opened the hearing to the public; there were no com- ments and the hearing was closed to the public. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 25, 1991 PAGE 9 Councilmember Mullen stated the issues should be considered sepa- rately; Council should review an ordinance which applies to in - lieu fees across the board for everyone. The issue of preserving existing affordable housing in the City should be considered as a separate item. MOTION: Councilmember Mullen moved this item be referred back to staff to develop an ordinance for in -lieu fees across-the-board. The motion was seconded by Coun- cilmember Luna. Councilmember Baker disagreed with the motion; he does not believe the builder should be required to offer a unit for low- cost housing and, at the same time, build it to the same stan- dards as for the current -priced units. He said there are enough fees attached to building. Councilmember Wuriu asked what the fee would be in -lieu of? Councilmember Mullen stating in -lieu of inclusionary housing. This way the City would not have to monitor the selling price of homes year after year. The motion carried with Councilmember Baker voting no. (4-1) D-5 HEARING ON LOCAL UNMET TRANSIT AND BIKEWAYS NEEDS FOR SUBMITTAL TO SAN LUIS OBISPO AREA COORDINATING COUNCIL Mr. Upton stated the hearing tonight is supplemental to the annual regional hearing in San Luis Obispo; it gives people locally a chance to comment on unmet transit needs. He noted Dan Herron of San Luis Obispo County staff is present to record pub- lic comments and deliver them to the County. Mr. Herron stated there will be a hearing in the Board of Supervisors' Chambers on December 4th at 1:30 p.m. where action will be taken. All that is required of Council this evening is to accept public testimony. Mayor Sheet2 opened the hearing to the public for comments. Mary Phillips said there should be evening transit service so people can go out at night, and Sunday service so people can go to church. Requirements of seniors should be considered. Rosalie Valvo, 260 Pacific, noted improvements needed to the dan- gerous situation for bicyclists on South Bay Blvd. within City of Morro Bay limits. Mr. Williams, president of the San Luis Obispo Bicycle Club, also addressed the dangerous situation on South Bay Blvd. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 25, 1991 PAGE 10 Ed McCracken made suggestions for realigning lower State Park Road in order to accommodate bicyclists on South Bay Blvd. Suedene Nelson stated the Chamber of Commerce has also received comments from bicyclists concerning the danger on South Bay Blvd. She also expressed the need for bus service after regular hours for emergencies. Art Stansbury agreed with others about the dangerous situation on South Bay Blvd. David Wilson, 476 Yerba Buena, stated he is an advisor for a bicycle club at Cuesta College. He discussed problems with South Bay Blvd. Dan Perkins, 495 Java, said more bike racks are needed at bus stops and on buses. He is also concerned about South Bay Blvd. Lynda Merrill said Main Street is a terrorizing street to drive on. Mayor Sheetz closed the hearing to the public. Councilmember Mullen said there was not enough publicity on this hearing. She questioned increased funding for the Area Council. Mr. Herron stated the funding only affects the City of San Luis Obispo. Councilmember Mullen suggested a reserve be established for futuristic -type projects. She said people need transporta- tion from the bus stops within a city to home, evening trans- portation, and bike racks on buses are needed. Councilmember Mullen stated she would like to see a solar train. The Area Council should consider putting money into clean -air type of mass transportation. She agreed emergency -type transportation is needed. Councilmember Wuriu questioned whether the County is exploring the feasibility of light rail transportation? Mr. Herron stated there is a feasibility study in progress and preliminary results are favorable; however, it is very expensive to add new rail. Mayor Sheetz noted the goal of transportation planning is to get people out of their cars and detailed some of the considerations discussed at the Area Council level. No formal action was taken. D-6 COUNCILMEMBER REQUEST TO CONSIDER PURCHASE OF TROLLEY WITH NEW MONIES FROM TRANSIENT OCCUPANCY TAX RATE INCREASE Councilmember Luna reviewed his idea to use some of the funds to be derived from the increase in transient occupancy tax to pur- chase a trolley for Morro Bay. He suggested staff be directed to MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 25, 1991 PAGE 11 look for matching funds from grants for this project. Cost recovery may be had in the form of advertising on the trolley; it could be rented out for special events. Councilmember Luna believes his proposal could be an economical as well as environ- mental advantage to the City. Mayor Sheetz asked Mr. Upton to review Area Council discussions with regard to a trolley. Mr. Upton stated originally grant funds were not allowed to be used for this purpose, but recently some of the restrictions have been lifted and funds may be avail- able after the first of the year. He discussed some of his con- cerns about the City's ability to maintain a trolley; they are very different from the buses. Roger Ewing said a trolley for Morro Bay is a good idea. He sug- gested giving a Dial -a -Ride bus to high school students to con- vert into a trolley. Mayor Sheetz closed the hearing to the public. Councilmember Wuriu agreed it is a good idea. Councilmember Baker was concerned about the success of the pro- gram due to reports the Pismo Beach trolley program is not working. Mayor Sheetz appointed Councilmembers Baker and Luna to work on the proposal. Councilmember Luna stated he would like this item re-agendized for public hearing at the first meeting in January. At that time, he requested Mr. Upton provide staff with a report on what our current Dial -a -Ride operators would charge to operate the program, and if there are any grants available for it. He said the business economy needs the program. • • • • •:�\;�r7�iA95=diJ����i!]`��91L:1�L9s.F�� �_ _.:.,y.•..� L:� a 7• D-8 REQUEST FOR EARLIER RELEASE OF CITY COUNCIL AND PLANNING COMMISSION AGENDA Councilmember Luna he is in favor of receiving the packets ear- lier; it will give Council more time to discuss the items with staff and the community. Councilmember Wuriu agreed. Councilmembers decided receiving the agenda packets on Wednesday before the Monday meeting would be helpful. i • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 25, 1991 PAGE 12 Ann Freeman, 275 Cabrillo, encouraged Council to set an earlier day to receive packets, and suggested changing Council meetings to Tuesday night. Roger Ewing agreed and suggested the packet in the library remain in place until the packet for the following meeting is available. Councilmember Mullen was also in favor of the earlier packet day, and a Tuesday night meeting. MOTION: Councilmember Mullen moved the ordinance be amended to require packets to be available by the close of busi- ness on the Wednesday before a Monday night meeting. The motion was seconded by Councilmember Luna and unan- imously carried. (5-0) F. ADJOURNMENT MOTION: Councilmember Baker moved the meeting be adjourned. The motion was seconded by Councilmember Mullen and unanimously carried. (5-0) The meeting adjourned at 11:28 p.m. Recorded by: ARDITH DAVIS — City Clerk �7?pxPirn�l /a, i 99/ 0 0 City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING - TUESDAY, NOVEMBER 12, 1991 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 OCTOBER 28, 1991 A-2 WATER SUPPLY STATUS REPORT A-3 AUTHORIZATION OF NO -PARKING ZONE, EMBARCADERO AT MARINA STREET PULLED A-4 RESOLUTION NO. 115-91 REVISING RECORDS DESTRUCTION POLICY FOR CERTAIN POLICE RECORDS A-5 RESOLUTIONS NO'. 116-91 AND 117-91 AUTHORIZING PROGRAM SUPPLEMENTS NO. 005 AND 006 FOR LOCAL AGENCY/STATE AGREEMENT NO. 05-5391 (MAIN STREET/ QUINTANA ROAD TRAFFIC SIGNAL PROJECT) A-6 FY 1991-92 CLAIM FOR LOCAL TRANSPORTATION FUNDS AND STATE TRANSIT ASSISTANCE FUNDS A-7 RESOLUTION NO. 119-91 URGING RESTORATION OF ADEQUATE FUNDING FOR THE STATE DEPARTMENT OF ALCOHOL BEVERAGE CONTROL B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 408 MODIFYING EXISTING WATER ALLOCATION PRIORITIES FOR MODERATE, LOW, AND VERY -LOW INCOME AFFORDABLE HOUSING DEVELOPMENTS (SECOND READING/ADOPTION) 1 a 6 B-2 CONTINUED CONSIDERATION OF SUGGESTION BY STREETS AND TREES COMMITTEE FOR "ADVANCE WARNING" PAVEMENT MARKINGS AT STOP SIGN INTERSECTIONS ON MORRO BAY BLVD. AT NAPA AVE. AND PINEY WAY ARENERVA12mi-ii0oltm C-1 RESOLUTION NO. 120-91 APPROVING EXTENSION OF TIME TO PAY OVERDUE RENTS ON LEASE SITE 90-90W (EDNA EDDY, LESSEE; 875 EMBARCADERO) C-2 REQUEST FOR REPORT ON TREE REMOVAL AT DEL MAR SCHOOL BY SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT D-1 REVIEW OF POSSIBLE ALTERNATIVES PROPOSED BY COASTAL COMMISSION AND WILLIAMS BROTHERS MARKETS FOR AMENDMENT OF LOCAL COASTAL PROGRAM/LAND USE PLAN TO MODIFY LAND USE DESIGNATIONS ON PORTIONS OF WILLIAMS BROTHERS PROPERTY (MEASURE H); AND, CONSIDERATION OF POTENTIAL SETTLE— MENT AGREEMENT AND MUTUAL RELEASE BETWEEN LITIGANT PARTIES D-2 CONTINUED HEARING ON DRAFT ORDINANCE INCORPORATING CERTAIN REQUIRE— MENTS REGARDING THE PROTECTION AND CONSTRUCTION OF AFFORDABLE HOUSING STOCK (ZOA 04-91) D-3 PRESENTATION OF CITIZEN CONCERNS FOR STORM DRAIN FACILITY IMPROVEMENTS IN THE ELENA ST./JUNIPER AVE. AREA (KOENIG; MAYER) D-4 REQUEST FOR EARLIER RELEASE OF CITY COUNCIL AND PLANNING COMMISSION AGENDA PACKETS D-5 PRESENTATION ON WATER MANAGEMENT (PALMER) 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. E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 12, 1991 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 Ben Luna Susan Mullen Tom Wuriu ABSENT: None STAFF: Gary Napper Judy Skousen Rick Algert Louise Burt Leslie Blair Ardith Davis William Farrel Dave Howell Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Harbor Director Finance Director Assoc. Civil Eng. City Clerk Community Dev. Dir. Police Chief Tom Geshay of the Calvary Baptist Church gave the invocation, and Councilmember Baker led the Pledge of Allegiance. Mayor Sheetz stated on advice of the City Attorney an item regarding the December election on State Water needs to be added to the agenda. MOTION: Councilmember Wuriu moved Council give emergency con- sideration to a discussion relating to last week's bal- loting on State Water. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mayor Sheetz stated the item will be taken up under New Business, Item C-1. D-5 PRESENTATIO Mayor Sheetz stated Mr. Palmer's presentation will be given at this time; Mr. Palmer is not feeling well and prefers to make his statement now instead of at the end of the meeting. Council concurred. Mr. Palmer read a statement concerning water costs and the advan- tages to obtaining local water as opposed to State Water. He believes the high water users in Morro Bay are being grossly over -charged for water, as are regular customers. He said City MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 12, 1991 PAGE 2 personnel are not qualified to devise a fair formula for the dif- ferent mix of customers. Council thanked Mr. Palmer for his report. PUBLIC COMMENT 1. Randy Ruff, Shasta Ave., stated he wishes to challenge Council's consideration of a Williams Brothers settlement agree- ment before they consider the item under D-1. He believes con- sideration of the Coastal Commission staff report and the settle- ment agreement should be reviewed as separate items. Mr. Ruff stated the settlement agreement does not meet the requirements of Measure H and further eliminates the City's rights. He objected to private negotiations with the developer. 2. Frank St. Denis stated on November 5th, the citizens of Morro Bay sent a message to Council; they want both water pro- jects. He said the same people who voted for State Water voted in favor of Nacimiento; one option is not enough. He noted Nacimiento has 22 communities waiting to obtain water. He said 2 and sometimes 3 members of the Council have made efforts to thwart the people of Morro Bay; he reminded Council they all said they would honor the outcome of the election if the people said they want State Water. Now 2 members of the Council are saying they are going to over -throw the voters. This is the reason the December 17th election is being held. 3. Bill Quigley, 455 Acacia, stated the citizens voted overwhelmingly for the Nacimiento project at the November 5th election; State Water will provide an additional assurance. The people must now be told what the cost will be per household if State Water will be used as a back-up; this information should be presented before the December 17th election. 4. Ann Freeman, Cabrillo Place, said Mr. St. Denis' pre- sentation is laughable. She was at all meetings where Coun- cilmembers said they would vote in favor of outcome of the advi- sory election; the State Water proponents did not believe the Council and instead circulated a petition for their own election, sued the City, and cost the City a lot of money. 5. Roger Ewing said tonight he speaks as a "Calvickie" and referred to a City Key article relating to Councilmember Mullen's closed session remarks to City Attorney Judy Skousen. He asked how is it the City Key and not other newspapers have access to closed session comments? He urged Council to look into the mat- ter. If Council cannot guarantee the integrity of Closed Ses- sions, they should be held in public. 6. John Lemons, 419 Shasta Avenue, stated there is no way anyone believed the two advisory questions on the ballot were a MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 12, 1991 PAGE 3 popularity contest between State Water and Nacimiento; the propo- nents of State Water advocated voting for both water options. He reminded the public the State Water proponents were invited and challenged to submit a petition, which is what they did. Had Council done what the law require, they would not have filed a lawsuit. If the lawsuit had no basis in law, the judge would not have ordered it on the ballot. 7. Ed Ewing, 2400 Nutmeg, does not believe costs are important; one group in the City will pay anything for additional water, and the other group does not want any water because they do not want growth. Water needs to be provided for future use. He said tourism is down, perhaps because people know Morro Bay does not have water. A majority of Morro Bay Councils have put off making water decisions; this Council needs to make a decision. DECLARATION OF FUTURE AGENDA ITEMS 1. Councilmember Luna requested a Public Hearing item be scheduled to consider using the funds from the Transient occu- pancy Tax increase just approved by the voters for a trolley. 2. Councilmember Baker noted the recent fire at the San Marcos Motel and requested an item be scheduled for a report on laws requiring innkeepers to be on site. A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF OCTOBER 28. 1991 Mr. Napper recommended Council approval of the minutes as submitted. Mr. Napper recommended Council receive the report for file. A-3 AUTHORIZATION OF NO -PARKING ZONE, EMBARCADERO AT MARINA STREET PULLED • _ y_ _ � � � • _ ���Si_�►�%�$i�I�.��S�7����7�'St4l:7iL�4EZ7:i.7�7At Mr. Napper recommended Council adopt Resolution No. 115-91, with a minor amendment to add the word "Retainable" to page 3, 2(e). MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 12, 1991 PAGE 4 A-5 RESOLUTIONS NO, 116-91 AND 117-91 AUTHORIZING PROGRAM SUPPLEMENTS NO, 005 AND 006 FOR LOCAL AGENCY/STATE AGREEMENT NO, 05-5391 (MAIN STREET/OUINTANA ROAD TRAFFIC SIGNAL Mr. Napper recommended Council adopt Resolution No. 115-91. A-6 FY 1991-92 CLAIM FOR LOCAL TRANSPORTATION FUNDS AND STATE TRANSIT ASSISTANCE FUNDS Mr. Napper recommended Council adopt Resolution No. 118-91. :�N•�•]�IfY11•]`J2L•2i�Lg3�1.Z�fit�:iN,��L9 iVll{•7��•3�i��]�I•1�7:I�1���Ii1\ ! _ � Mr. Napper recommended Council adopt Resolution No. 119-91. MOTION: Councilmember Baker moved for the approval of the Con- sent Calendar as amended with regard to Item A-4. The motion was seconded by Councilmember Luna and unani- mously carried. (5-0) B. UNFINISHED BUSINESS Mr. Napper stated this is the second and final reading of an ordinance adding "moderate -income" households to the list of pro- ject types eligible to receive incentives from the City in devel- opment of affordable housing. The ordinance will go into effect on December 12th. MOTION: Councilmember Mullen moved Ordinance No. 408 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Napper read Ordinance No. 408 by title and number only. MOTION: Councilmember Mullen moved for the adoption of the sec- ond and final reading of Ordinance No. 408. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) •Z•]�45M�1�1�1_�LZ•I.]ip'1�4•]�1.7_:V1i�J�t�I�9�1��'Y.4��•7�i3��YiN�4��;�� ! M: _. Mr. Napper stated this item consists of a Streets and Trees Com- mittee recommendation to paint wavy lines on Morro Bay Blvd. at • f MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 12, 1991 PAGE 5 Napa Ave. and Piney Way. The Committee believes additional warn- ings are needed at these intersections to remind drivers of the stop sign. Surveys of these intersections were conducted and, although there were numerous violations, it is suspected similar violations occur at other 4-way stops throughout the City. Staff believes present signage is sufficient at these intersections. Councilmember Mullen thanked Al Paul for the amount of time he spent on the survey. She believes the data on record is a lia- bility to the City. She is most concerned about the Morro Bay Blvd./Piney Way intersection, and said she would like more infor- mation on rumble strips. Councilmember Mullen stated a majority of the complaints are of excessive speed on Piney Way and asked if there is any way to warn people there is a stop sign ahead? Chief Howell responded the majority of violations occurred on Morro Bay Blvd. and noted an oversized stop sign has been placed at this location. There was discussion regarding the wavy lines vs. rumble strips with Chief Howell commenting the wavy line concepts came from the Streets and Trees Committee and is the least expensive alternative. MOTION: Councilmember Baker moved the City install wavy lines at both intersections on an experimental basis. The motion was seconded by Councilmember Mullen and unani- mously carried. (5-0) _1814*9 to). • -9noMA-11iitY03Sy7-am-4Kel *** + Ms. Skousen stated the City has been in litigation with Frank St. Denis regarding when to hold the election for the initiative petition concerning mandatory State Water. She said subsequent to the election when the advisory measure passed, she appeared in Court regarding the litigation issue and requested the Court postpone action until after this meeting and so Council could consider if they wished to adopt the ordinance as is; this would negate the necessity for an election in December. Upon research- ing the matter, it was determined if Council adopted the initia- tive, it could be a subject of referendum. This would also require the City to conduct an election on the matter. Since funds have been spent, ballots printed, etc. for the December 17th election and since it seems likely a referendum would be filed if Council adopted the initiative, it appears prudent to go ahead with the election which will be binding on the voters. If the City continues with the election, the soonest it could appear on the ballot through an initiative is one year. Another reason to hold the election rather than Council adopting the initiative is it is unknown whether the initiative is suffi- 4 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 12, 1991 PAGE 6 ciently specific regarding bonding and whether or not the City has the authority to approve bonding provisions without a vote of the people. Mayor Sheetz stated she will not take sides on the State Water issue nor try to sway anyone's vote on the issue. Council took no action on this item. C-2 RESOLUTION NO, 120-91 APPROVING EXTENSION OF TIME TO PAY OVERDUE RENTS ON LEASE SITE 90-90W (EDNA EDDY. LESSEE: 875 EMBARCADERO) Mr. Algert stated Ms. Eddy has requested an additional six months delay on collection action for rents past due. She has agreed to pay 10% penalty and 1% per month interest on the late payments. Ms. Eddy is having difficulty finding a buyer for the site after the previous lease holders defaulted. MOTION: Councilmember Mullen moved for adoption of Resolution No. 120-91. The motion was seconded by Councilmember Luna and unanimously carried. (5-0) C-3 REQUEST FOR REPORT ON TREE REMOVAL AT DEL MAR SCHOOL BY SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT Mr. Farrel reviewed the incident wherein San Luis Coastal School District removed a pine tree at the Del Mar School Site without a permit. He said his department had been contacted regarding the removal but the School District had not yet obtained a permit. Mayor Sheetz said there is not enough "teeth" in our ordinance. She asked if there is some way to require a person to come to the Planning Department before cutting a tree down? Mr. Farrel stated that is the procedure now; the School District started the process but did not finish it. There is no real enforcement or penalty for cutting down trees. Mayor Sheetz requested staff develop a steep fine for cutting trees down without a permit. Stuart McElhinney, member of the School Board, said there was a mis-communication between a School District employee and City staff. He reviewed the plans for landscaping the area where the tree will be removed. Mr. Farrel stated he will draft an interim penalty fee for cut- ting down trees, but noted the Streets and Trees Committee is working on a Tree Ordinance. Ms. Skousen stated violation of any City ordinance can be a mis- demeanor or infraction. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 12, 1991 PAGE 7 Mr. Mapper stated this item has been agendized to give Council and the public the opportunity to comment on the Coastal Commis- sion's staff report regarding the William Brothers project. He noted the current configuration allows approximately 9 acres of land near the highway open to zoning considerations with the Coastal Commission staff recommending the area be zoned Agricul- ture or Open Area. Williams Brothers prefers the area be zoned Visitor -Serving Commercial and have submitted a settlement agree- ment to this effect in which Williams Brothers also agrees to end litigation and release all claims. They maintain it is not financially feasible to construct the 13 gross acreage shopping center without the opportunity to develop the additional 9 acres. They will agree, however, not to develop the 9 acres for at least 5 years from approval of the Settlement Agreement. Mr. Mapper stated the item is scheduled for action by the Coastal Commission tomorrow, November 13th. Councilmember Mullen asked if the Council is going to address the concerns expressed by Randy Ruff as to separating the Coastal Commission staff report item from the settlement agreement? Ms. Skousen stated Council can consider the matter any way they like. The issues are closely tied and will have to linked at the end; Council's determination on the settlement agreement affects the Coastal Commission staff report. Councilmember Mullen said it is not necessary to talk about the settlement agreement this evening; she preferred to consider the items separately. Councilmember Luna agreed; he asked the Williams Brothers item be placed on the agenda and his intention was for Council make for- mal responses to the Coastal Commission staff report. Mr. Mapper stated if Council chooses to address these items sepa- rately, whatever action they take this evening will be expressed to the Coastal Commission tomorrow. Mayor Sheetz preferred to discuss the entire matter this evening. Councilmember Luna read the City Attorney's impartial analysis of Measure H which states the initiative rezones the remaining prop- erty back to agriculture. He asked if she still agreed with her interpretation at that time? Ms. Skousen stated she believes that is what the proponents of Measure H intended. She explained MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 12, 1991 PAGE 8 the components of law when interpreting language; and, if you take away the title of the measure and concentrate on the lan- guage of the measure only, there is no mention of the remaining property being returned to agriculture use. Council has to make the decision as to whether the words or intention is clear or ambiguous. Mayor Sheetz opened the hearing to the public for comments. Randy Ruff said it makes sense for Council to restrict themselves to discussion of rezoning Area D and not consider other aspects of the settlement agreement at this time. Shish Crotzer said she believes once an initiative has been voted on the citizens have spoken and the issue is settled; she is con- cerned Council is even discussing rezoning the 9 acres. She said Williams Brothers is threatening the City with lawsuits unless they get their way. Marshal Ochylski, representing Williams Brothers, said there are four parties to this issue being resolved: the City Council, his clients, the voters, and the Coastal Commission. He stated the Coastal Commission is•not bound by the initiative; he read from the transcript of their hearing on this matter to emphasize. Williams Brothers thought the vote meant the people wanted a down -sized shopping center. He believes they have arrived at a solution which meets that intent. They have tried to show good faith and have not proceeded with litigation pending and not re - filed against two City Councilmembers, although they reserve that right. They are not asking for an additional nine acres; their plan is only a re -allocation of voter approved use of the site. Mr. Ochylski displayed maps showing the areas in question and explaining their designations. He noted the maps basically show the 13 acre area approved by the Coastal Commission which includes a 2.2 acre creek setback area, a 1.4 acre agriculture buffer around the perimeter, and the area on the northern prop- erty has been dedicated as an 8.2 acre Open Space easement. Since the Coastal Commission is requiring 110 foot setback from the creek buffer, it leaves the project less than nine gross areas to develop. Williams Brothers is requesting the area at the southern area of the property near the highway be left in its present zoning: Visitor Serving. He noted any development of this area in the future would require normal planning process, City Council and Planning Commission approval. Colby Crotzer, 475 Arbutus Ave., said as a voter in Morro Bay in support of Measure H, his intention had been that a reasonable sized center, approximately 13 acres, would be built. If there is need for additional property to be dedicated for CalTrans pur- poses or landscaping to mask the development, that would be fine. But to obviously allow a Visitor Serving designation, which means MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 12, 1991 PAGE 9 hotels, motels, restaurants, is clearly against the will of the people. Peter Diffley said he placed a call to the Coastal Commission and found Williams Brothers has exhausted their requests for continu- ation, and now the Coastal Commission has to decide whether to continue the matter for another month. He said it is obvious they cannot act on this tomorrow, and Council should not act tonight. Mr. Diffley then read a letter from the Voters Initia- tive Committee stating the settlement agreement is a blatant attempt to circumvent the Initiative Measure H, and urging Coun- cil to approve the Coastal Commission staff report. Ann Freeman, 785 Cabrillo Place, said she could not believe an agreement would be reached that would breach the civil rights of two Councilmembers and invalidate Measure H. She said Mr. Ochylski threatened the two Councilmembers Williams Brothers is reserving the right to sue. She said Councilmembers have a right and a duty to protect each other and not allow a corporation to threaten them with lawsuits. Roger Ewing said according to Mr. Ochylski Williams Brothers reserved the right to continue litigation against the City and Councilmembers, but in the settlement agreement it states the City and Councilmembers give up their right to sue. Val Sherman stated the new arrangement was negotiated very quietly; she supports the Coastal Commission staff report. She said the settlement agreement was a concession by the City Coun- cil or Mayor Sheetz to the power and money this corporation has spent over the years to do exactly what they want to do with their land. Mary Phillips said this is a Salem witch hunt. She said there are old people in Morro Bay that are unable to go to San Luis Obispo for shopping; they need local shopping areas. Brenda Reynolds, Cuesta student, spoke against the shopping cen- ter for purposes of convenience at the expense of ecological considerations. Ed Ewing said he believes people in Morro Bay want a shopping center, but there is also a small amount of people who do not want a shopping center at all. It is time for Council to make a decision; a few acres is not going to make that much difference. Economic development will bring business to the community. Bud Zeuschner, former Morro Bay Mayor, said the debate is not whether there is going to be a shopping center; that has been decided. The decision is where to have it and how to rezone the other area. He believes Measure H was very clear about no Visi- tor Serving designations, and Council should not support some- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 12, 1991 PAGE 10 thing that violates the spirit of Measure H. Council should be very careful with the fine print in the settlement agreement. Robert Lane stated the settlement agreement is unacceptable; it is Williams Brother attempt to do what they could not do at the polls; defeat Measure H. He reminded Council Williams Brothers proclaimed before the election there would be no shopping center if Measure H passed. Mr. Lane reviewed the various sections of the settlement agreement and the flaws in each. He said the law- suit against the City by Williams Brothers is an abuse of pro- cess; he intends to act against Williams Brothers to restore costs to the City and set an example for future lawsuits of this nature. Janice Peters stated she voted in favor of Measure H for 13 acres; no more. Part of that support was to prevent zoning the area Council is considering this evening for Visitor Serving. If Williams Brothers wants to request additional land when the econ- omy and water situation have improved, they should do so at that time. Ray Kaltenbach said everytime an initiative passes, special interest groups are ready to sue. He is disgusted with attorneys interpreting things. Nancy Bast said the City should support the Coastal Commission staff report; it is already a compromise of Measure H. She said a number of people think the City has a very good chance of suing Williams Brothers and recouping the $50,000 that has already been spent on this item. She asked where does it say elected offi- cials can bargain away what has been voted on by a people's initiative? Council recessed from 8:17 p.m. to 8:29 p.m. Bernard Melvin, Elm Street, said Mr. Ochylski indicated the Coastal Commission could approve the project and Morro Bay would not have anything to say about it. That is not true; nothing will be built in Morro Bay without the approval of the City. He said he laughed when he first read the settlement agreement; it invalidates Measure H. He said Council responsibility is to faithfully carry out Measure H. Judy Davidoff, attorney for Williams Brothers, stated the settle- ment agreement reduces the District Commercial to 13 acres; it provides for an increased amount of land protected in Open Space; it reduces the area available for Visitor Serving while retaining some Visitor Serving on site. The settlement agreement does not reserve the right to continue litigation against the City; it agrees to dismiss litigation. She said there has been consider- able negotiation regarding this agreement for six months. There MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 12, 1991 PAGE 11 is no commitment on the part of the City. Section 19 does not preclude individual lawsuits. Councilmember Luna took issue with Ms. Davidoff's statement the Council has been negotiating for the last six months. He first received the settlement agreement 1� weeks ago; Williams Brothers has not been negotiating with him. Councilmember Luna said Williams Brothers has stated it is not economically feasible to build a shopping center on 13 acres, and Councilmember Luna has repeatedly asked for feasibility studies to back-up this statement. Ms. Davidoff said Williams Brothers extended an open invitation to discuss any issues with Council. She noted they had tried to set up a meeting with Councilmember Luna but were unable to schedule one. Councilmember Luna stated the meetings were sup- posedly to talk about the shopping center, not a settlement agreement. Councilmember Mullen stated she met two times with Williams Brothers representatives and at no time did they present her with documentation related to a settlement agreement. Al Paul, 2520 Laurel, stated this whole things should be brought to a conclusion; it has been going on so long Morro Bay is the laughing stock of California. if Council makes a bad decision, maybe they will not get re-elected; so what? Bruce Risley stated it has been more than one year and this City Council has been unable to carry out the wishes of the people who voted in favor of Measure H. He said to send the matter to the Coastal Commission and get it settled. Ed Smith said he has seen a terrible outpouring of pity for Mea- sure H as though there was something sacred about its 74 margin victory. He said before that Measure B passed zoning the prop- erty 30 acres. Jack Curry, 990 Morro Avenue, stated Morro Bay businesses have some very deep-rooted problems. He said Council has the opportu- nity right now to vote on something that will help the community; a good shopping center. It will draw people to our area. Tom Walters, 385 Arbutus, stated he is surprised and appalled he has to come to the meeting tonight to defend Measure H. He has attended Coastal Commission hearings and things were finally get- ting resolved. Now, at the llth hour, Council is considering a settlement agreement. He said it would be very radical for Coun- cil to approve a settlement of this nature after so much time has been spent trying to come to a consensus. The Coastal Commission proposal should be supported. Three of the Councilmembers were elected largely because of their stand on Measure H. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 12, 1991 PAGE 12 Anita Judd, Bernardo, encouraged Council to reject the settlement offer which invalidates Measure H and takes away citizens, rights. Jeff Odell, Driftwood, noted past agreements with Williams Brothers on this project and stated the settlement agreement is not consistent with what the City and Williams Brothers seemed to agree to when he was on the Council. He urged Council to support the Coastal Commission recommendations. James Silver, 1880 No. Main Street, said for the 36 years he has lived in Morro Bay, the same problem continues to exist: there is a group of people who do not want growth and a group of people who want some growth. He said the smart people have moved out of Morro Bay. He said Morro Bay needs the shopping center. Mike Anderson said he is tired of traveling to Costco and San Luis Obispo for his shopping needs. He would like to spend his money in Morro Bay. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Mullen moved Council support the Coastal Commission staff report including Attachment 13 of the October 30th report. The motion was seconded by Coun- cilmember Luna. Councilmember Luna stated it is obvious people want the project to go forward. The most expedient way to do that is to take action this evening by approving the Coastal Commission staff report. Mayor Sheetz asked the City Attorney to explain the difference between the Coastal Commission September 24th and October 30th staff reports. Ms. Skousen stated in the most recent report, the Coastal Commission staff changed their original recommendation to designate the front portion of the property agriculture, to now recommending it be designated oA-1 (with the small easterly por- tion agriculture). There is also a change in the urban rural boundary line. Mayor Sheetz asked how that compares with the settlement offer by Williams Brothers? Ms. Skousen stated the staff reports and the settlement agreement discuss what zoning to place on the bottom area; the settlement agreement proposes leav- ing the area in front Visitor Serving. Both staff reports and the settlement agreement agree the 13 acre shopping center to be located in the center of the property should be commercial with the creek area running down the middle of the property Open Space. Mayor Sheetz asked what options Williams Brothers would have if the Coastal Commission goes forward to approve their staff recom- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 12, 1991 PAGE 13 mendation with regard to the front area? Ms. Skousen stated if it were designated OA-1, it leaves almost no uses for that por- tion. Councilmember Mullen disagreed stating the OA designation leaves quite a few options. Mayor Sheetz asked if the Council designated the area OA-1, would that constitute a taking? Ms. Skousen stated the uses are so minor, it is possible the court may not find OA a viable use of the property. Councilmember Wuriu asked if there is validity to the fear expressed by the public the settlement agreement will deny Coun- cilmembers Luna and Mullen to take legal action at some future date? Ms. Skousen stated no; the settlement agreement requires Williams Brothers dismiss the action against the City and against Councilmembers Luna and Mullen and prohibits the City from suing Williams Brothers, but does not preclude Councilmembers Luna and Mullen from suing Williams Brothers. Councilmember Luna emphasized Measure H and the City Attorney's impartial analysis both refer to zoning only 13 acres commercial and the City Attorney's analysis notes the remaining acreage will return to agriculture. MOTION: Councilmember Luna called for a vote on the motion; there was no second and the motion died. Councilmember Mullen stated she has worked for Measure H since April 1990. She said her efforts before she was elected were constantly thwarted by a City Council that refused to listen to the people. She enumerated the number of times the public has been before the Planning Commission, City Council, and Coastal Commission on this matter; and the initiative which had to be circulated twice because of a technicality. She believes a majority of the citizens approve of the Coastal Commission recom- mendation on the project, and she is appalled by the settlement agreement that has come forward in the last lk weeks. If the City had a representative at the last Coastal Commission hearing, Council would not even be discussing the issue this evening. Councilmember Mullen said it is time to stop running over people and their concerns. She encouraged Council to adopt the Coastal Commission staff report. Councilmember Baker responded to statements by the public the Council is being frightened by threats from Williams Brothers; he said there have been no threats and he is not a bit frightened. Councilmember Baker distributed a proposed resolution to approve the settlement agreement; he believes the settlement is a compro- mise and reflect the intent of Measure H. To reduce the project to 13 acres with all the mitigation measures and public works requirements would make the project non -viable. The compromise is the reasonable solution. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 12, 1991 PAGE 14 Mayor Sheetz asked if the Coastal Commission approves the area zoned for the commercial shopping center and zones the other por- tions of the property something else, does it negate Williams Brothers' position to do something with the property or does it accelerate their position? Ms. Skousen stated if the City does not approve the settlement agreement, she surmises Williams Brothers will submit a plan for the other acreage in order to get a decision on what the zoning will be; the settlement agreement prohibits them from developing the property for at least 5 years. Mayor Sheetz stated Measure H addresses a 13 acre shopping cen- ter; does this prohibit Williams Brothers from requesting a zon- ing change on the rest of the property? Ms. Skousen stated if you only look at the language of the text of Measure H, §1 repeals entirely LU-48 which set forth the agriculture zoning; it takes the Ag zoning away. §2 zones 13 acres District Commercial and there is no mention of what the remaining acreage is zoned. The Council can determine the language is clear and make the zon- ing whatever they want, or they can determine the language is ambiguous and begin reviewing the intent of the measure. It is clear the intent of Measure H is the people wanted the remaining acreage to be something other than Commercial or Visitor Serving. Councilmember Mullen asked since this is all contained in the Agriculture section of the General Plan/Local Coastal Plan, does that not give further definition? Ms. Skousen said it is in the Ag chapter, but the Ag designation is repealed; perhaps that is what makes it ambiguous. Councilmember Wuriu asked if Council makes the area of contention something other than Visitor Serving as the developer wants, would it make it difficult to proceed? Ms. Skousen stated it is one way to deal with the problem. Council could also develop a new designation in order to give them something to develop, but would not be Visitor Serving, Ag, or District Commercial. Councilmember Mullen referred to the brief prepared by Attorney Katherine Stone who represented the City at the Federal level in the Williams Brothers suit. It states Measure H is not unconsti- tutionally vague, nor is an ordinance vague if its application can be made certain through subsequent administrative action. She detailed the numerous hearings this item has been through with the Planning Commission and City Council agreeing to 17 acres and the balance returned to Ag. She said there is a clear administrative record of this, and now Council is being asked to change direction. Mayor Sheetz asked about interim zoning until such time as a decision can be reached on this area? Ms. Skousen stated Planned Development used to be used extensively when it was unknown exactly what designation to give property; however, recent plan- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 12, 1991 PAGE 15 ning practices lean towards assigning a more specific designation with the PD overlay. Councilmember Mullen reviewed the Coastal Commission's basis for supporting the OA zoning; she asked if the City Attorney would be able to defend the OA-1 zoning? Ms. Skousen stated if Council goes along with it, she will do her best to defend it. The defense could be that by giving them the 13 acres commercial development, it was sufficient development for the entire 30 acres and therefore justifies zoning the rest Open Space. Coun- cilmember Mullen commented the City gave them 17 acres if you in- clude the creek and buffers which is more than Measure H allows. Councilmember Baker disagreed; Council did not give them 17 acres. They have to restore the creek and install landscaping; it is not developable land. There is only 13 acres available to develop. Mayor Sheetz agreed; she was initially against the pro- ject because of the creek being filled in, but the Williams Brothers plan calls for complete restoration of the creek. Councilmember Wuriu asked if Williams Brothers had input on the Council discussions. Marshall Ochylski stated the issue is the area next to the high- way designated Area D on their Exhibit 1. He said Williams Brothers would be agreeable to saying "we agree to disagree" on Area D; however, the Coastal Commission may take action on the item tomorrow. Williams Brothers believes that in order to have any shopping center more than 13 acres is necessary. They will agree to designating Area D as "interim" and keep the existing zoning which is Visitor Serving. He said Williams Brothers will also state very clearly that no motel or hotels will be built on that property. Councilmember Wuriu suggested Williams Brothers live with the interim Open Area designation for the next three years, and when they decide what to apply for, get the designation altered. Mr. Ochylski responded if the issue is proceeding forward with the shopping center in a timely fashion the OA is an unacceptable designation; there will be no settlement agreement not agreeable to Williams Brothers. They believe they need the commitment to at least have Area D as developable area. Councilmember Mullen asked if Williams Brothers will not develop a shopping center if Area D is zoned OA? Mr. Ochylski deferred to David Williams. Mr. Williams stated if Williams Brothers receives an OA zone that is deemed valid by the City or the courts, they will not move forward with development. With $3 million in off -sites for the just the first phase of the project, it would be financial suicide. He added he would exhaust all resources from a legal standpoint. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 12, 1991 PAGE 16 Mayor Sheetz suggested assigning something different to Area D, such as Visitor Serving prohibiting hotel/motel use. Mr. Ochylski stated that would be acceptable. Mr. Farrel stated the City does not have interim zoning and he does not see that as an option. The item would have to be con- tinued long enough for the Planning Commission to consider it. Councilmember Luna stated the Council owes it to the people to uphold Measure H. Councilmember Luna called for the question; it was sec- onded by Councilmember Mullen and carried with Coun- cilmember Wuriu and Mayor Sheetz voting no. (3-2). . MOTION: The motion to approve the Coastal Commission staff report failed on the following vote: AYES: Mullen, Luna NOES: Baker, Wuriu, Sheetz Council recessed from 9:50 to 9:59 p.m. Mayor Sheetz did not believe it is time to adopt the settlement agreement by resolution, but offered the following motion: MOTION: Mayor Sheetz moved the City Council forward to the Coastal Commission their recent recommendation with the change for the blue area that it be left Visitor Serv- ing with a prohibition that no hotels will be built on it and with a PD overlay so that the developer would have to come in and apply; see what the Coastal Commis- sion says tomorrow; and, not sign the settlement agree- ment and continue discussions on the settlement agree- ment into the next month or so. The motion was sec- onded by Councilmember Wuriu. Councilmember Mullen stated she will not support the motion; she believes the OA designation is a fair designation. It is very clear Measure H did not say you can develop 13 acres now and 9 acres later. Designating the 9 acres Visitor Serving is in con- flict with Measure H. RESTATED Mayor Sheetz moved Council support the Coastal Commis - MOTION: sion staff recommendation for the siting of Measure H for the 13 acres and, rather than naming the bottom portion ag or open space, to let it retain its present zoning with the prohibition, as the developer has said that he will not build any hotels on the property, and that the development agreement would be discussed fur- ther with the staff and Council. The motion was sec- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 12, 1991 PAGE 17 onded by Councilmember Wuriu and carried on the follow- ing roll call vote: AYES: Baker, Wuriu, Sheetz NOES: Luna, Mullen Mayor Sheetz suggested Council will consider Item D-3 at this time and continue the other items. MOTION: Mayor Sheetz moved Council consider Item D-3 at this time and continue Items D-2, D-4, and D-5 to the next meeting. The motion was seconded by Councilmember Luna and unanimously carried. (5-0) D-2 CONTINUED HEARING ON DRAFT ORDINANCE INCORPORATING CERTAIN REOUIREMENTS REGARDING THE PROTECTION AND CONSTRUCTION OF Continued to November 25th. D-3 PRESENTATION OF CITIZEN CONCERNS FOR STORM DRAIN FACILITY IMPROVEMENTS IN THE ELENA ST./JUNIPER AVE. AREA (KOENIG: MAYER) Mr. John Koenig stated he and Jan Mayer wish to present to Coun- cil an action plan to control water run-off on Juniper Avenue. During the March 1991 storms, flash floods caused considerable property damage. Using maps, he described where the water comes from and its pathway through the neighborhood. The path it takes goes by only one storm drain which is not adequate for the volume of water and the storm drain quickly fills with debris. It was noted the water initiates from property outside City limits. Mr. Koenig stated several homeowners have made improvements to their property to minimize the affects of future floods. At this point, however, they request the City adopt a plan before prop- erty owners spend money to install further improvements which may have to be eliminated at a later date if the City adopts a plan contrary to their improvements. He suggested the City initially enlarge the west side storm drain inlet at 2725 Juniper Avenue to minimize debris clogging, and develop an overall plan to include solutions for the trouble -spot areas. Mayor Sheetz stated she has discussed this matter with Mr. Meyer, the owner the of the property outside the City limits where the problem originates. She suggested perhaps this item should be considered in January when Council reviews mid -year budget allo- cations. Mr. Napper agreed stating this problem should be con- sider in light of all areas in need so Council can prioritize and allocate funds on that basis. He cautioned Council to assume a problem which initiates on County land and on private property. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 12, 1991 PAGE 18 Councilmember Wuriu stated Mr. Koenig and Mr. Mayer should be commended for doing this preliminary work and their willingness to contribute finances towards a solution. Councilmembers discussed trying to work something out for this problem now instead of waiting for mid -January. Ms. Skousen stated she is currently working with on a drainage problem with a property owner which could lead to litigation. If Council is considering allocating money towards a Juniper Street project, they should consider that allocation along with other problem areas. John Lemons suggested the County be encouraged to install reme- dial measures for this problem. There is case law that holds up- stream property owners liable if the up -stream property owner diverts water where it has not gone before and causes damage to down -stream property. Ed Ewing detailed problems on Nutmeg Avenue with regard to storm drains. Councilmember Mullen stated she has concerns that should it rain in December, these people are going to be in trouble. Ms. Skousen stated the County property owner, Mr. Meyer, con- ducted some grading that changed the natural flow of water; down stream property owners can go to him for damages. She believes Council increases their liability if they take care of this prob- lem without looking at others. Jan Mayer stated he believes the water would still come down the hill and cross his property if Meyer's house was not there. He said it becomes a City problem when the water is on the street. It has been suggested they sue; they could waste a lot of money suing. He prefers to put the money into his property and trying to solve this problem. It is time to stop placing blame for the problem, and begin finding a solution. Mr. Napper stated Council's packet this evening contains a report from May 1991 wherein staff outlined the problems and the costs. Councilmember Mullen requested a list of the top 10 areas of com- plaints from the March 1991 rains. Council discussed the matter further including a suggestion to establish an assessment district in the area to finance improvements. Council direction was to prepare a list of problem areas in the City, and contact the County for their input on the situation. The item will also be considered during the mid -year budget review. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 12, 1991 PAGE 19 D-4 REQUEST FOR CITY COMMISSION N!: - - Continued to November 25th. F. ADJOURNMENT MOTION: Councilmember Mullen moved the meeting be The motion was seconded by Councilmember Luna imously carried. (5-0) The meeting adjourned at 10:53 p.m. Recorded by: ARDITH DAVIS City Clerk adjourned. and unan- 0 City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. ADJOURNED CLOSED SESSION — NOVEMBER 1, 1991 CITY HALL CONFERENCE ROOM — 9:00 A.M. 595 HARBOR ST., MORRO BAY, CA ROLL CALL E. CLOSED SESSION E-1 GOVERNMENT CODE §54956.9(A), PENDING LITIGATION, WILLIAMS BROTHERS V. CITY OF MORRO BAY, SAN LUIS OBISPO SUPERIOR COURT, CASE NO. 69397 F 0 MINUTES - MORRO BAY CITY COUNCIL ADJOURNED CLOSED SESSION - NOVEMBER 1, 1991 CITY HALL CONFERENCE ROOM - 9:00 A.M. Mayor Sheetz called the meeting to order at 9:05 a.m. PRESENT: Rose Marie Sheetz Mayor John Baker Councilmember Ben Luna Councilmember Susan Mullen Councilmember Tom Wuriu Councilmember ABSENT: None STAFF: Gary Napper City Administrator Judy Skousen City Attorney William Farrel Community Dev. Dir. E. CLOSED SESSION E-1 GOVERNMENT CODE 654956.9(A). PENDING LITIGATION. WILLIAMS BROTHERS V. CITY OF MORRO BAY SAN LUIS OBISPO SUPERIOR COURT, CASE NO, 69397 MOTION: Councilmember Wuriu moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmem- ber Luna and unanimously carried. (5-0) Mayor Sheetz read the Closed Session statement. The meeting adjourned to Closed Session at 9:05 a.m. and returned to regular session at 9:45 a.m. F. ADJOURNMENT MOTION: Councilmember Luna moved the meeting be adjourned. The motion was seconded by Councilmember Mullen and unani- mously carried. (5-0) The meeting adjourned at 9:45 a.m. Recorded GARY NAPPER Deputy City 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. CITY COUNCIL/PLANNING COMMISSION JOINT MEETING - OCTOBER 24, 1991 LIBRARY COMMUNITY ROOM - 7:00 P.M. 625 HARBOR ST., MORRO BAY, CA ROLL CALL PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters 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. GOALS/OBJECTIVES/POLICIES A-1 THE "GOAL SETTING PROCESS" A-2 "WHERE IS MORRO BAY HEADED?" B. PROGRAMS/FUTURE PLANNING B-1 NEED FOR DOWNTOWN PLAN B-2 NEED FOR REDEVELOPMENT B-3 DESIGN CRITERIA TO HELP BEAUTIFY NORTH MORRO BAY B-4 MEANS OF ENHANCING CITIZEN PARTICIPATION IN PLANNING PROCESS B-5 STRENGTHENING SIGN ORDINANCE AND ENFORCEMENT B-6 REGULATION OF POTENTIAL UNDESIRABLE BUSINESSES (HEADSHOPS, MASSAGE PARLORS, ADULT BOOKSTORES) C. BUDGETING FOR PLANNING PROJECTS D. OTHER PLANNING NEEDS F. ADJOURNMENT COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. 0 ect 4e4 a r / 9 9/ City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. CLOSED SESSION - OCTOBER 28, 1991 CITY HALL CONFERENCE ROOM - 5:15 P.M. 595 HARBOR ST., MORRO BAY, CA E-1 GOVERNMENT CODE §54956.9(A), PENDING LITIGATION, WILLIAMS BROTHERS V. CITY OF MORRO BAY, SAN LUIS OBISPO.SUPERIOR COURT, CASE NO. 69397 REGULAR MEETING - OCTOBER 28, 1991 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE PRESENTATION: MOST VALUABLE EMPLOYEE: ELIZABETH SZWABOWSKI 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 14, 1991 A-2 STATEMENT OF INVESTMENTS - SEPTEMBER 1991 A-3 EXPENDITURE REPORT - SEPTEMBER 1991 A-4 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (GARCIA EXCAVATING AND GRADING) A-5 WATER SUPPLY STATUS REPORT A-6 RESOLUTION NO. 112-91 APPROVING SPECIAL HARBOR AREA USE PERMIT FOR 1991 LIGHTED BOAT PARADE (DECEMBER 7) A-7 PROCLAMATION DECLARING NOVEMBER 1991 AS "NATIONAL HOSPICE MONTH" • • A-8 RESOLUTION NO. 113-91 URGING THE FEDERAL GOVERNMENT TO INVESTIGATE AND ACCOUNT FOR ALL POW/MIA MEMBERS A-9 RESOLUTION NO. 114-91 SUPPORTING THE SMALL WILDERNESS AREA PRESERVA- TION'S EFFORTS TO ACQUIRE THE EL MORO ELFIN FOREST A-10 APPOINTMENT OF APPLICANT (ROBERT MCCAY) TO STREETS AND TREES COMMITTEE A-11 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (WILLIAM PATRICK GRAHAM) B. UNFINISHED BUSINESS B-1 COUNCIL SUB -COMMITTEE REPORT AND CONSIDERATION OF ORDINANCE NO. 407 ESTABLISHING COMPREHENSIVE VESSEL HABITATION (LIVEABOARD) RULES AND REGULATIONS B-2 PROGRESS REPORT ON WATERFRONT AREA VISITOR DIRECTIONAL SIGNAGE C. NEW BUSINESS C-1 AUTHORIZATION FOR EXTENSION OF TIME TO PAY OVERDUE RENTS ON LEASE SITE 90-90W (EDNA EDDY, LESSEE; 875 EMBARCADERO) PULLED C-2 APPROVAL OF APPLICATION TO SEEK LA CIOTAT, FRANCE, AS MORRO BAY'S "SISTER CITY" C-3 REQUEST TO ADD COUNCILMEMBER REPORTS AS REGULAR BUSINESS ITEM ON CITY COUNCIL AGENDAS C-4 REQUEST TO RECONSIDER AND MODIFY COUNCIL ACTION TO FORM SUB -COMMITTEES TO PROMOTE ECONOMIC ENHANCEMENT D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 DETERMINATION OF CONCEPT SITING OF WATER TREATMENT PLANT FACILITIES, AND CORRESPONDING RE -ASSIGNMENT OF STATE DEPARTMENT OF WATER RESOURCES LOAN D-2 DRAFT ORDINANCE INCORPORATING CERTAIN REQUIREMENTS REGARDING THE PROTECTION AND CONSTRUCTION OF AFFORDABLE HOUSING STOCK (ZOA 04-91) D-3 ORDINANCE NO. 408 MODIFYING EXISTING WATER ALLOCATION PRIORITIES FOR MODERATE, LOW, AND VERY -LOW INCOME AFFORDABLE HOUSING DEVELOPMENTS (INTRODUCTION/FIRST READING) E. CLOSED SESSION E-1 GOVERNMENT CODE §54956.9(A), PENDING LITIGATION, CAYUCOS SANITARY DISTRICT V. CITY OF MORRO BAY, SAN LUIS OBISPO SUPERIOR COURT, CASE NO. 70420 F. ADJOURNMENT COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. 0 • MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION - OCTOBER 28, 1991 CITY HALL CONFERENCE ROOM - 5:15 P.M. Mayor Sheetz called the meeting to order at 5:15 p.m. PRESENT: Rose Marie Sheetz Mayor John Baker Councilmember Ben Luna Councilmember Tom Wuriu Councilmember ABSENT: Susan Mullen Councilmember STAFF: Gary Napper City Administrator Judy Skousen City Attorney William Farrel Community Dev. Dir. PUBLIC COINX;Qv&� None E. CLOSED J E-1 GOVERNMENT CODE G54956.9(A). PENDING LITIGATION, WILLIAMS BROTHERS V. CITY OF MORRO BAY, SAN LUIS OBISPO SUPERIOR COURT. CASE NO, 69397 MOTION: Councilmember Luna moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmem- ber Baker and unanimously carried. (4-0) Mayor Sheetz read the Closed Session statement. The meeting adjourned to Closed Session at 5:15 p.m. and returned to regular session at 5:50 p.m. COUNCILMEMBER MULLEN ARRIVED AT 5:17 P.M. F. ADJOURNMENT MOTION: Councilmember Luna moved the meeting be adjourned. The motion was seconded by Councilmember Mullen and unani- mously carried. (5-0) The meeting adjourned at 5:50 p.m. Recorded by: GARY NAPPER Deputy City MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 28, 1991 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 Bill Boucher Ardith Davis William Farrel Forrest Henderson Steve Wolter Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Harbor Director Assoc. Civil Eng. City Clerk Community Dev. Dir. Asst. City Admin. Rec. & Parks Dir. Father O'Connor, St. Joseph's Catholic Church in Cayucos; gave the invocation, and Horace Strong led the Pledge of Allegiance. PRESENTATION: MOST VALUABLE EMPLOYEE: ELIZABETH SZWABOWSKI Mayor Sheetz stated Elizabeth Szwabowski, Acting Chief Building Inspector, has been chosen Most Valuable Employee for the third quarter of 1991. Mayor Sheetz outlined Elizabeth's accomplish- ments, and presented her with an award. 1. Mary Phillips, 2645 Ironwood, advised Council of a dan- gerous traffic situation which exists at Ironwood and Highway 41 noting a recent accident at this location. Ms. Phillips also discussed HR 355, a bill giving federal authorities new power to move water where it is needed most during emergencies. She urged Council to look to the need for water in the future. Councilmember Baker requested staff investigate the situation at Ironwood Avenue and Highway 41. 2. Ed McCracken gave to Council pictures of Carp Lake which was supposedly located in the Cloisters property north of the High School. He read a letter Warren Dorn of Morro Bay Beau- tiful wrote to Community Development Director Bill Farrel con- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 28, 1991 PAGE 2 cerning the need for Corps of Engineers assessment of this prop- erty south of Azure Street as wetlands and a flood plain. The letter also protests attempts by the City to approve subdivision of property. 3. Edgar Smith, Marina Street, requested a letter to Warren Dorn of Morro Bay Beautiful from William E. Warne, previ- ous Director of Water Resources 1960-1966, be entered into the record. The letter deals with the State Water Project; Mr. Warne indicates the only thing wrong with this water project is it is not finished yet. 4. Chris Buckley, 190 Verdon, referred to Ordinance No. 407, the liveaboard ordinance, and stated the City has been charged by the Regional Water Quality Control Board to control discharge from "houseboats". He said this authority is set forth in Chapter 11, Division 7 of the California Water Code, §139704; Mr. Buckley read from this section. He urged Council to table Ordinance No. 407, give the liveaboard community a chance to do something about the existing ordinance, and address on -shore facilities to support them. 5. Roger Ewing, referred to Item C-3 regarding adding City Council Reports on the Agenda. He requested City Council and Planning Commission packets be made available prior to Friday afternoon. The current timeframe does not give citizens enough time to review the information before the Monday night meeting. Mr. Ewing also asked why Dr. Alexander's experiment on reclama- tion has not been finished? Mayor Sheetz stated she will open Item B-1 regarding the live - aboard ordinance to the public for comments when the item is con- sidered by Council. Mayor Sheetz referred to Ms. Phillips' comments regarding Iron- wood Ave./Highway 41, and asked what the City's responsibility is? Mr. Boucher stated this intersection is under sole jurisdic- tion of CalTrans. The City discussed with them the possibility of a turn -pocket at this location and believes it is on their planning board for FY 93-94. Mayor Sheetz asked for an update on Dr. Alexander's study. Mr. Boucher stated staff has been conducting tests on Well No. 9A; the results were received Friday afternoon and staff is reviewing that data before proceeding with the pilot study. Councilmember Mullen stated Dr. Alexander is concerned the City is not going to be testing the treatment plan anytime soon. Mr. Boucher stated Dr. Alexander's people are aware of the status of the project; City staff works through Dr. Alexander's technical staff and they should be keeping him informed. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 28, 1991 PAGE 3 Councilmember Baker asked if there is validity to the statements made by Mr. McCracken the Cloisters plan should be submitted to the Corps of Engineers? Mr. Farrel stated these questions will be addressed during the Planning Commission hearings. He noted the applicant is aware of the 100-year flood plain. 1. Councilmember Luna requested a Public Hearing item be scheduled on the next agenda to discuss receiving agenda packets earlier. A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES -OF_-THE-REGULAAR_ MEECIN_G---O-F_ OC Mr. Napper recommended Council approve the minutes as submitted. A-2 STATEMENT OF INVESTMENTS - SEPTEMBER 1991 Mr.. Napper recommended Council receive the Statement for file. A-3 EXPENDITURE REPORT - SEPTEMBER 1991 Mr. Napper recommended Council approve the Report as submitted. A-4 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (GARCIA EXCA- VATING AND GRADING) Mr. Napper recommended Council deny the claim, and authorize the City Clerk to sign and mail the rejection notice. A-5 WATER SUPPLY STATUS REPORT Mr. Napper recommended Council receive the report for file. He stated Mr. Boucher will present an update on the status of the City's water supply. A-6 RESOLUTION NO. 112-91 APPROVING SPECIAL HARBOR AREA USE PER- MIT FOR 1991 LIGHTED BOAT PARADE (DECEMBER 7) Mr. Napper recommended Council adopt Resolution No. 112-91. A-7 PROCLAMATION DECLARING NOVEMBER 1991 AS "NATIONAL HOSPICE MONTH" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 28, 1991 PAGE 4 A-8 RESOLUTION NO, 113-91 URGING THE FEDERAL GOVERNMENT TO INVESTIGATE AND ACCOUNT FOR ALL POW/MIA MEMBERS Mr. Napper recommended Council adopt Resolution No. 113-91. A-9 RESOLUTION NO, 114-91 SUPPORTING THE SMALL WILDERNESS AREA PRESERVATION'S EFFORTS TO ACQUIRE THE EL MORO ELFIN FOREST Mr. Napper recommended Council adopt Resolution No. 114-91. A-10 APPOINTMENT OF APPLICANT (ROBERT McCAY) TO STREETS AND TREES COMMITTEE Mr. Napper recommended Council appoint Robert E. McCay to the Streets and Trees Committee for the term expiring 31 December 1992. A-11 REJECTION OF LIABILITY __CLAIM AGAINSTL THE_ CITY LWILLIAM Mr. Napper recommended Council deny the claim, and authorize the City Clerk to sign and mail the rejection notice. A-5 WATER SUPPLY STATUS REPORT Mr. Boucher stated certified laboratory tests reveal blended water in the Morro Basin has Total Dissolved Solids (TDS) which exceed 1500 parts per million (ppm). The State Health Department has determined water must be treated if TDS levels are above 1500 ppm. Mr. Napper stated the City will be turning on the desalina- tion plant to treat the brackish water in these wells. Councilmember Mullen asked if Saturday's rain changed the situa- tion at all? Mr. Boucher said Morro Bay did not receive much rain from the storm; he doubts there will be rapid improvement. Councilmember Mullen asked if the brine from the treatment of the brackish wells will be dispersed through the wastewater treatment plant outfall? Mr. Boucher stated yes. Councilmember Mullen asked for an update on negotiations with P.G.&E. to use their outfall. Mr. Napper stated he will provide an update in Closed Session. Staff has met with P.G.&E, but no commitments have been made on either side. Councilmember Mullen asked if the EIR on the desalination plant is proceeding? Mr. Napper stated the City is under direction by the Regional Water Quality Control Board to do an EIR within the next two years. He plans to request funding for an EIR during the mid -year budget review. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 28, 1991 PAGE 5 Councilmember Wuriu asked if the brine from the brackish water disbursed through the outfall is the same procedure used last year? Mr. Boucher stated yes. Councilmember Mullen stated she will abstain from voting on the minutes since she was absent from the last meeting. MOTION: Councilmember Luna moved Consent Calendar Items A-2 through A-11 be approved. The motion was seconded by Councilmember Mullen and unanimously carried. (5-0) MOTION: Councilmember Luna moved for the approval of Item A-1. The motion was seconded by Councilmember Wuriu and car- ried with Councilmember Mullen abstaining. (4-0-1) B-1 COUNCIL SUB -COMMITTEE REPORT AND CONSIDERATION OF ORDINANCE NO. 407 ESTABLISHING COMPREHENSIVE VESSEL HABITATION (LIVEABOARD) RULES AND REGULATIONS Rick Algert reviewed the report from the Council Sub -Committee meeting. He stated the consensus of the meeting was an attempt should be made to simplify the regulations by amending the exist- ing ordinance to make it enforceable and acceptable to the Regional Water Quality Control Board. Mr. Algert pointed out what was originally proposed as a three page ordinance in 1987 has turned into a lengthy ordinance by trying to meld various interests. Mayor Sheetz stated when the Sub -Committee met, the representa- tives of the liveaboards wanted to reformat the ordinance into three separate categories; address permanent liveaboards, commer- cial fishermen, and transient people who occupy the bay. Sandy Winston and John Greenville will work together to form something the commercial fishermen support. They have asked for 60 days to do this. Mayor Sheetz read from the October 25th letter from the RWQCB regarding the necessity for the City to regulate discharge from liveaboards. Mayor Sheetz opened the hearing to the public for comments. Lee Mattson, liveaboard resident, objected to receiving the wrong version of the ordinance on September 23rd, and to the number of changes that have been made to the ordinance. City Clerk Ardith Davis responded to the mix-up in providing him the September 9th version. Ann Freeman, 875 Cabrillo Place, asked if the fees for boat inspection will be the same for the transient vessels and live- aboards? Mayor Sheetz stated the resolution adopting fees will MINUTES - MORRO REGULAR MEETING PAGE 6 BAY CITY COUNCIL - OCTOBER 28, 1991 be a subject of a future agenda should be the same. Ms. Freeman stated the fees Paul Lorenzen, liveaboard resident, stated the representatives for the Sub -Committee were chosen for that one meeting only; they are not authorized to continue negotiating for the liveaboard community. He stated the letters from the RWQCB of 1988 and October 25, 1991 refer to "houseboats", not habitable vessels. There are no people living on houseboats in Morro Bay. He also stated the State Lands Commission allows a one-time transfer of liveaboard permits to another party. Mr. Lorenzen requested the ordinance exempt liveaboards from in -lieu parking fees. John Servane said the time spent formulating the proposed ordi- nance has not been wasted; however, there has been a "sledge -ham- mer" approach to it. He is thankful for the attention the City Council is giving to this matter. Gene Doughty, Harbor Advisory Board member, stated he has been involved in formulating this ordinance since 1988. A lot of work has gone into it and it should not be thrown out. It is a com- plex issue, the proposed ordinance has done a good share to resolve all problems. Councilmember Luna referred to page 4, item 7, first paragraph of the ordinance, and compared it with a previous version. He asked why it was changed? Mr. Algert stated as he explained at the time, the first version of the ordinance inadvertently left out specific language approved by the Harbor Advisory Board; this language was inserted in the subsequent version of the ordinance on September 23rd. Councilmember Luna asked what has happened to the liveaboard peo- ple who applied for a permit? Mr. Mattson says he paid $50 2k years ago and still has not received one. Mr. Algert stated for $50 a person secures a place on the permit waiting list. He said he covered what the status means very carefully to Mr. Mattson. Councilmember Luna stated he supports a 60-day review period; he believes Mr. Mattson and Mr. Lorenzen should communicate with Harbor Director; and he recommends Mr. Mattson and Mr. Lorenzen be on the sub -committee. Councilmember Mullen stated Mr. Lorenzen mentioned the liveaboards will have to vote again on their representatives. Councilmember Baker commented on the use of the word "houseboats" by the RWQCB, and asked if it has a different definition than that of liveaboard vessel? Mr. Algert stated the City is not talking about houseboats. He referred again to the letter from the RWQCB of 1988 which specifically states liveaboard boats in Morro Bay must comply with State law. Judy Skousen stated it is her understanding the definition of houseboats is almost the same MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 28, 1991 PAGE 7 as liveaboards. Councilmember Luna stated the item should be clarified. Councilmember Wuriu recognizes the widespread problems with the ordinance as far as the liveaboard community is concerned. He favors the 60-day review period to try to come up with something that will please a majority of the people. MOTION: Councilmember Baker moved for a 60-day extension for action on the proposed ordinance. The motion was sec- onded by Councilmember Wuriu and unanimously carried. (5-0) Councilmember Mullen stated there is no historical record or evi- dence of pollution in the bay from liveaboard boats. She said instead of coming down hard with the RWQCB mandates, the City should support the liveaboard people. There may be other prob- lems in the bay, and the City is operating on 3k year old infor- mation. She was concerned about the number of complaints of the ordinance, and was not in favor of three different ordinances for different categories of boats. The ordinance should be kept to three pages and address everyone; it should address the concerns of the RWQCB and State Lands Commission requirements, and should be easy to read and understand. Mayor Sheetz stated Council will now consider Public Hearings items and return to Unfinished and New Business after the Public Hearings. • 0� •_ • • : --- •:�• •._:_ '•�•_� :_ a �_ • • _:S_ Bill Boucher reviewed Council's October 1990 approval of accep- tance of a Department of Water Resources loan of up to $5 million for the purpose of constructing a water treatment plant for the Coastal Streams/San Bernardo Creek Dam projects. In March of this year, Council re -prioritized water projects and removed the Coastal Streams and San Bernardo Creek projects from the list. The Water Advisory Board discussed alternate uses for the loan at their October 9th meeting and recommends a three -phased project for municipal water treatment. He reviewed the State Health Services requirements for implementing the Surface Water Treat- ment Rule, and stated the Water Advisory Board recommends the first phase consist of installation of a treatment facility for City Well No. 8; Phase II is installation of a 2.0 million gallon per day capacity treatment facility located along San Bernardo Creek Road; and Phase III would expand the Phase II facility to a capacity of 4.6 million gallons per day. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 28, 1991 PAGE 8 The implementation deadline for Phase I is July 1993; staff requests the flexibility to concurrently investigate pursuit of Phase I and II to see if there is any way the Phase II facility could be on line by the Phase I deadline thereby avoiding build- ing a facility on two sites. Councilmember Mullen asked for clarification on the filtration process. Mr. Boucher stated it is a slow sand filtration pro- cess; it is the oldest water treatment process known. Councilmember Mullen asked if the process is acceptable treatment for water that comes from Lake Nacimiento? Mr. Boucher stated yes, the process works with all surface waters. Councilmember Wuriu asked if Well #8 is close enough to Chorro Creek to be called surface water? Mr. Boucher stated the City could attempt to prove that Well #8 is not under the influence of Chorro Creek; however, it is unlikely we would be successful. Councilmember Luna asked what is the cost of the proposed plants and the interest rate on the loan? Mr. Boucher stated the Phase I package plant for Well #8 is $500,000; the loan is available at a 4% interest rate. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. Councilmember Mullen expressed concerns regarding the location of the plant in Chorro Basin vs. Morro Basin in the event Nacimiento Water comes to Whale Rock. Mayor Sheetz commented the City is not obligated beyond Phase I at this time. Mr. Napper agreed; the problem at this point is reallocating the money to eligible projects before the State recalls the loan for use by other agen- cies. Council can approve the project recommendation in concept, lock in the loan again, and alter the projects if future circum- stances warrant it. Councilmember Mullen clarified by stating the documentation for Council to approve will allow the City to hold the funding, but still allow us the flexibility of changing the program. Staff concurred. MOTION: Mayor Sheetz moved Council adopt the Water Advisory Board's 3-phased recommendation on water treatment planning needs of the City; and, authorize staff to commence investigation and preparation for implementa- tion of Phase I (package treatment plant at Well No. 8). The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 28, 1991 PAGE 9 Mr. Farrel reviewed the proposed amendments to the existing affordable housing ordinance. The major changes include estab- lishing limits on demolition of affordable housing stock unless replacement of rental housing is provided; and an "inclusionary" housing requirement for new projects of three or more attached units or eleven or more detached units. This "inclusionary" pro- vision would require the developer to construct at least one unit (or 10% of the project, whichever is greater), for sale to low and moderate income households. Mr. Farrel noted the changes reflect State housing laws. Councilmember Wuriu commented if a developer builds a three -unit condo and has to make one of the units low-cost housing, it is one-third of the project; that is ridiculous! Mr. Farrel stated that specific formula is suggested by staff; it is not State law. Staff was attempting to establish specific standards. Mayor Sheetz asked what is the criteria for low income? Mr. Farrel stated the State annually establishes and publishes the standards based on family size and median income. Councilmember Luna commented on the definition of "apartment" and asked how a kitchen can be "temporarily" installed? Mr. Farrel stated he also has a problem with this language. Mayor Sheetz asked how many applications there are for three -unit projects? Mr. Farrel stated he does not know the numbers; how- ever, there is a substantial waiting list and some potential out there. Councilmember Baker said he could understand a 10% factor but not 1 out of 3 units! Mayor Sheetz asked if the equation of 1 out of 3 can be changed by Council? Mr. Farrel responded yes. Mayor Sheetz noted individual single family residences are demol- ished and high-priced homes built in their place. She is con- cerned the ordinance may not address the problem, but further curtail building of low-cost housing. Mr. Farrel stated the ordinance provides a window of opportunity. Councilmember Mullen questioned that portion of the ordinance stating replacement housing can be outside the City limits. Mr. Farrel said where it is not feasible to provide low cost housing in a development, State law allows it to be provided in the coastal zone (i.e., County). Mayor Sheetz opened the hearing to the public for comments. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 28, 1991 PAGE 10 Mark Allen stated this ordinance will destroy the building indus- try and the private property owners. He believes if the City ever gets water, property owners will want to build a house with two rental units behind it on their property. He reviewed the time, money, and effort an individual must expend to prove it is not feasible to allow one of the units to be low cost housing. He believes what will happen is a developer with property large enough to build ten units will tear down what is there and attempt to access this ordinance and fight with the City over the 10%. Thom White, 484 Rennell, said he would like to find available land on which to build 10 quality houses, sell them for less than $100,000 each, and make 5% or 10% profit; however, this is not going to happen in Morro Bay. He said one cannot get quality for a house that sells for $130,000 on $48,000 a year income. This ordinance will add more development dollars to the cost of a pro- ject. Mr. White stated if he has to make one house out of three affordable housing, he would not do it. It would necessitate building the affordable home as cheaply as possible and jacking up the price on the other two. Ed McCracken stated there is no place in Morro Bay to build a number of houses except the Cloisters property. The Cloister property owners plan to sell the lots and let individuals build their own homes. Mayor Sheetz agreed with the speakers this evening; affordable housing is needed, but not at the ratio of 1 to 3. Mr. Farrel stated the concerns expressed are not unique to Morro Bay. The State developed the legislation because people are get- ting displaced from their homes in the coastal zones. People of average income cannot live in Morro Bay. But the law is clear; we must address this social problem. Councilmember Luna asked if the 1 to 3 equation has been used in other cities? Mr. Farrel stated he is not familiar with other cities' policies; he noted the Ordinance provides for in -lieu fees if this formula is not feasible for a development. Councilmember Wuriu was in favor of delaying action on the ordi- nance for two weeks; he would like to discuss it with some of the builders. He does not believe the City will get anyone to build under these terms; if so, we defeat the purpose. Councilmember Baker asked if the builders would accept the 10% figure? Mr. White stated 10% would be OK; anything more would be discouraging. Mark Allen stated he would rather see more in -lieu fees than the 1 to 3 ratio; do not burden private enterprise, the City should MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 28, 1991 PAGE 11 take the money and do it. Mr. White asked in -lieu of what: 1 to 3 or 10%? Mr. White said no additional costs should be added to housing in Morro Bay; we already have some of the highest fees in the entire County. Councilmember Wuriu suggested a straight 10% figure. Councilmem- ber Mullen stated the ordinance would not be worth adopting in that case. She agreed the item should be continued for two weeks; it is a very complex document and she has a lot of ques- tions. She said she favored across-the-board in -lieu fees also. MOTION: Councilmember Mullen moved this item be continued for two weeks with Council direction to be given to Mr. Farrel at that time. The motion was seconded by Coun- cilmember Luna and unanimously carried. (5-0) Warren Dorn asked what action Council had taken concerning the comments made by Mr. McCracken on the Cloisters property and involving the Corps of Engineers? Mayor Sheetz stated that item will be before the Planning Commission initially. Mr. Farrel stated the proposed ordinance provides a broader pri- ority for affordable housing development projects by including the "moderate" income level as a priority; very low and low are currently included in the ordinance. He noted the amendments. will provide better conformity to the City's Housing Element. Councilmember Luna said he believes the City needs to define what "affordable" is to the potential applicant; it is a gray area. Mr. Mapper stated the State issues those guidelines each year. Mayor Sheetz opened the hearing to the public for comments. Thom White asked for an estimate of moderate housing cost. Mr. Farrel stated last year the State set median income for a family of four at approximately $38,500; housing is set at 80% to 120% of the median income, so a moderate unit might cost $130,000. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Wuriu moved Ordinance No. 408 be read by title and number only. The motion was seconded by Councilmember Luna and unanimously carried. (5-0) Mr. Mapper read Ordinance No. 408 by title and number only. MOTION: Councilmember Mullen moved for approval of the intro- duction and first reading of Ordinance No. 408. The MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 28, 1991 PAGE 12 motion was seconded by Councilmember Luna and unani- mously carried. (5-0) Council recessed from 8:17 p.m. to 8:28 p.m. B-2 PROGRESS REPORT ON WATERFRONT AREA VISITOR DIRECTIONAL SIGNAGE Mr. Wolter reviewed Council action to fund this visitor signage program in the amount of $5,800, and the difficulties staff has encountered in implementing the program. He stated in order to complete the program, an additional allocation of funds in the amount of $2,900 is necessary. The unexpected increases are for sign installation, pole acquisition, and sign placards costs. Mr. Wolter stated as directed by Council, he contacted members of the business community soliciting their financial support of the program. They indicate they are willing to donate funds to future expansions of the program, particularly in the Downtown area. Councilmember Luna asked if there are plans to sign the downtown area? Mr. Wolter stated the proposed signage will extend up to the Main Street area, restricted by use of Harbor Funds. Council direction was to complete this part of the project and then approach the community about expanding the program and bringing the information back to Council. Supplemental programs can be considered at the mid -year budget review. Councilmember Mullen questioned the $1,320 for use of P.G.&E. poles. Mr. Wolter stated it is a one-time fee. He noted there is a secondary benefit of using P.G.&E. light poles in that the street light will shed light on the signs. MOTION: Councilmember Luna Council accept the report for file; and, allocate $2,900 from the FY 1991-92 Harbor Fund Contingency to complete the Waterfront Area Visitor Directional Signage Program. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) . • : _i•iiL•3:��2:i�iF�I;E • , •IM�YL�L•�_3?�lil.��11�-➢_�•J, LEASE SITE • DNs EDDY, LESSEE: 875 EMBARCADERO) PULLED C-2 APPROVAL OF APPLICATION TO SEEK LA CIOTAT. FRANCE, AS MORRO BAY'S "SISTER CITY" Mr. Napper stated this item is agendized at the request of Mayor Sheetz as a result of her recent visit to France. He reviewed the proposed affiliation with the French city of La Ciotat MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 28, 1991 PAGE 13 through Sister Cities International and the benefits of the association. Mayor Sheetz stated the idea of a Sister City was first suggested by the Rotary Club; their suggestion was Cassis, France. During her visit to France she attempted to meet with representatives of this city; however, they were experiencing major problems at the time. She received an invitation to visit La Ciotat to establish a Sister City affiliation with them. They are interested in a cultural student exchange program. Mayor Sheetz reviewed the history of La Ciotat noting they have 14 councilmembers, a mayor, and 55 advisors for a community the size of San Luis Obispo. Councilmember Luna asked if costs or staff time is involved in the association? Mr. Napper favored the City joining Sister Cities International; they provide coordination of sister city relationships. Membership for a city the size of Morro Bay is $200. In addition, a citizen's committee to guide the program would be advantageous. Councilmember Mullen stated she is in favor of the City becoming part of Sister Cities International, and she approves of a citi- zens advisory committee to work on this program. She suggested the City pursue the affiliation with La Ciotat, and not re-estab- lish the Taiwan City relationship at this time. MOTION: Councilmember Mullen moved Council authorize the filing of an application with Sister Cities International to establish official Sister City affiliation with Ville de La Ciotat, France; and, that a citizens advisory committee be formed to guide the Sister City program. The motion was seconded by Councilmember Luna and unan- imously carried. (5-0) Mr. Napper stated he would return with a formal resolution estab- lishing the committee for this purpose. Councilmember Mullen stated the San Luis Obispo City Council has an item on their agenda under this heading. She said there is a certain amount of non -communication about what, many councilmem- bers are doing on other committees such as Mayor Sheetz on the Area Council; Councilmember Wuriu on the County Water Advisory Board, etc. The time allowed for the reports could be limited to three minutes; no action would be taken on the item; Council will merely report on the activities of the committees they belong to. Councilmember Luna agreed it is a good idea; he supports the con- cept as a pilot program. It will also be a good avenue to keep MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 28, 1991 PAGE 14 the community informed of what Council is doing in their other duties. Councilmember Wuriu stated the same purpose could be served with- out a formal agenda item. Councilmember Baker recently gave Council a written memo in their mail boxes regarding his partici- pation as a voting delegate at the League of California Cities Annual Convention; and, Councilmember Wuriu also wrote a memo to Council when he wished to report on County Water Advisory Board activities. If it is an important item, it should be agendized so the community knows it is coming up. Councilmember Mullen stated this item could be scheduled after Public Hearing items; she does not anticipate it would add a great deal of time to the agenda. Mayor Sheetz commented San Luis Obispo is a larger City than Morro Bay. She believes anytime a councilmember has something important to report, it should be agendized. Councilmember Luna stated the difference between writing a memo to Council and reporting an item at a Council meeting, is the public is informed of what Council is doing. Councilmember Wuriu expressed some concern it could become a forum for anyone who wants to make a speech. Mayor Sheetz said she does not favor this item. No action was taken on this matter. C-4 REQUEST TO RECONSIDER AND MODIFY COUNCIL ACTION TO FORM SUB- COMMITTEES TO PROMOTE ECONOMIC ENHANCEMENT Councilmember Mullen stated this item was covered at the joint meeting with the Planning Commission. E. CLOSED SESSION E-1 GOVERNMENT CODE 654956.9(A). PENDING LITIGATION. CAYUCOS SANITARY DISTRICT V. CITY OF MORRO BAY, SAN LUIS OBISPO SUPERIOR COURT, CASE NO, 70420 MOTION: Councilmember Baker moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmem- ber Luna and unanimously carried. (5-0) Mayor Sheetz read the Closed Session statement which also includes pending litigation in the matter of Polymetrics vs City of Morro Bay, Case # 70101, Superior Court. MINUTES - MORRO-BAY CITY COUNCIL REGULAR MEETING - OCTOBER 28, 1991 PAGE 15 The meeting adjourned to Closed Session at 8:59 p.m. and returned to regular session at 10:26 p.m. F. ADJOURNMENT MOTION: Councilmember Mullen moved the meeting be adjourned.. The motion was seconded by Councilmember Luna and unan- imously carried. (5-0) The meeting adjourned at 10:26 p.m. Recorded by: �ARDITH DAVIS City Clerk ocro VA 14, 1 qql 0 City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING - OCTOBER 14, 1991 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE 1. PRESENTATION BY CHERYLL S. MCCARTY, BAHA'IS OF MORRO BAY, ON "THE VISION OF RACE UNITY: AMERICA'S MOST CHALLENGING ISSUE" 2. PRESENTATION OF PROCLAMATION DECLARING "RED RIBBON WEEK" TO ROGER FREEBERG 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 FOR THE CITY COUNCIL/CAYUCOS SANITARY DISTRICT MEETING OF AUGUST 22, 1991; THE SPECIAL MEETING OF SEPTEMBER 23, 1991; AND THE REGULAR MEETING OF SEPTEMBER 23, 1991 A-2 WATER SUPPLY STATUS REPORT A-3 AWARD OF CONTRACT FOR PROJECT NO. PW 91-02, RECONSTRUCTION OF SOUTH T-PIER A-4 PROCLAMATION DECLARING OCTOBER 19-26, 1991 AS "RED RIBBON WEEK" IN THE CAMPAIGN AGAINST DRUG ABUSE A-5 RESOLUTION NO. 111-91 AUTHORIZING CITY APPLICATION FOR INCLUSION IN FEDERAL SURPLUS PROPERTY PROGRAM 1 A-6 GRANT OF TEMPORARY LEAVE OF ABSENCE FROM PLANNING COMMISSIONER DUTIES (REASOR) A-7 REPORT OF RECREATION AND PARKS COMMISSION ACTION MODIFYING RULES FOR RESERVATION OF CITY TENNIS COURTS A-8 MAYOR'S APPOINTMENT OF COUNCIL SUB -COMMITTEE TO REVIEW PORTIONS OF JOINT POWERS AGREEMENT WITH CAYUCOS SANITARY DISTRICT B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 407 ESTABLISHING COMPREHENSIVE VESSEL HABITATION (LIVEABOARD) RULES AND REGULATIONS (SECOND READING/ADOPTION) C. NEW BUSINESS C-1 SET DATE (OCTOBER 24TH) AND AGENDA FOR SEMI-ANNUAL JOINT MEETING WITH PLANNING COMMISSION C-2 CITY POSITION ON POLICY RESOLUTIONS FOR THE 1991 LEAGUE OF CALIFORNIA CITIES CONFERENCE C-3 REQUEST BY MORRO BAY 4-H CLUB FOR WAIVER OF CONDITIONAL USE PERMIT FEE FOR CHRISTMAS TREE LOT C-4 REQUEST TO ADD COUNCILMEMBER REPORTS AS REGULAR BUSINESS ITEM ON CITY COUNCIL AGENDAS C-5 APPROVAL OF RECREATION AND PARKS COMMISSION RECOMMENDATION TO CHANGE THE NAMES OF ANCHOR STREET PARK AND DUNES STREET PARK TO MARINER PARK AND ANCHOR MEMORIAL PARK, RESPECTIVELY; AND, REVIEW OF PROPOSAL TO RENAME "J" STREET TO "PARK STREET" C-6 REQUEST TO RECONSIDER AND MODIFY COUNCIL ACTION TO FORM SUB -COMMITTEES TO PROMOTE ECONOMIC ENHANCEMENT C-7 APPROVAL OF CAPITAL PROJECTS AND OPERATING ENCUMBRANCES FROM FY 1990-91 D-1 RESOLUTION NO. 110-91 CALLING A SPECIAL MUNICIPAL ELECTION TO BE HELD IN THE CITY OF MORRO BAY ON TUESDAY, 17 DECEMBER 1991, FOR THE PURPOSE OF VOTING ON AN INITIATIVE MEASURE (G) MANDATING PARTICIPATION BY THE CITY OF MORRO BAY IN THE STATE WATER PROGRAM D-2 HEARING FOR PROTEST OF FORMATION OF UNDERGROUND UTILITY DISTRICT NO. 5 ON MORRO BAY BLVD., HIGHWAY 1 TO MAIN STREET D-3 DRAFT ORDINANCE ESTABLISHING A FAST FOOD PACKAGING RECYCLING AND WASTE REDUCTION PROGRAM 2 0 D-4 RECOMMENDATION FROM CABLE TV FRANCHISE AND SERVICES BOARD REGARDING COMPLIANCE OF SONIC CABLE TELEVISION WITH FRANCHISE AGREEMENT AND MUNICIPAL CODE D-5 REQUEST FOR COUNCIL AGENDA TIME BY SERENE CONSTRUCTION OF CAYUCOS FOR PERMISSION TO MOVE A WATER METER TO A NEW LOCATION (WATER TRANSFER CONCEPT) U 10 0 9� M5ED)&)&II J' NONE UNNIFT� • :_k y k _ 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 - OCTOBER 14, 1991 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 Tom Wuriu ABSENT: Susan Mullen STAFF: Gary Napper Judy Skousen Rick Algert Leslie Blair Bill Boucher Louise Burt Ardith Davis Forrest Henderson Dave Howell Steve Wolter Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Harbor Director Assoc. Civil Engr. Assoc. Civil Engr. Finance Director City Clerk Asst. City Admin. Police Chief Rec. & Parks Dir. Reverend Donald Carey of the Presbyterian Church gave the invoca- tion, and Horace Strong led the Pledge of Allegiance. Mayor Sheetz read the Proclamation declaring October 19-26 as "Red Ribbon Week", and presented it to County Chairman Roger Freeberg of the Red Ribbon Committee. Mr. Freeberg elaborated on the campaign against drug abuse and thanked the Mayor and Council for their support. 2. PRESENTATION BY CHERYLL S. MCCARTY, BAHA'IS OF MORRO BAY. ON "THE VISION OF RACE UNITY: AMERICA'S MOST CHALLENGING ISSUE" Cheryll McCarty presented a written statement issued by Baha'is of the United States declaring racism is the most challenging issue facing America today. PUBLIC COMMENT 1. Lee Mattson, Morro Bay resident, accused the City of making a number of covert changes to the harbor liveaboard ordi- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 14, 1991 PAGE 2 nance. He said the whole thing is a farce and he requested Coun- cil review the matter again. 2. Paul Lorenzen stated he agrees with Mr. Mattson; the liveaboard people have never once seen the actual ordinance which is to apply to them. Now, he stated, commercial fishermen have been added to the ordinance without their knowledge; they have been exempt in the past. Every fishing boat in the harbor will have to be inspected. The have been misinformed and disinformed; send the Ordinance back to the Harbor Advisory Board. 3. Reg Whibley, 595 Napa, stated there is a discrepancy in the bid documents for the South T-Pier, and he does not believe the low bidder complied with the City's specifications. He asked Council to pull Item A-3 from the Consent Calendar for separate discussion. Mayor Sheetz agreed to do so. 4. John Lemons, 419 Shasta, criticized Councilmember Luna for using his name and City title in connection with a flyer that is replete with lies and mis-representations in opposition to the State Water Project. Councilmember Luna stated the statistics in the flyer were taken out of the EIR. Mr. Lemons stated those facts were for delivery of Nacimiento Water to Whale Rock Reservoir, not treated and delivered to Morro Bay, and the flyer does not say that. 5. Sandy Winston commented on the liveaboard ordinance with regard to commercial fishermen. He stated over the years there have been more and more regulations on the commercial fish- ing industry; he believes the commercial fleet should be exempt from this ordinance, taxes, and interference. DECLARATION OF FUTURE AGENDA ITEMS 1. Councilmember Luna requested the Coastal Commission alternatives on Measure H be scheduled for formal Council recom- mendations to the Commission as soon as the Coastal Commission report has been received by the City. 2. Councilmember Luna requested a status report on the visitor signage program on the next agenda. 4�4 SANITARY MEETING OF THE SPECIAL MEETING OF 1991 Napper recommended Council approve the minutes • u - MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 14, 1991 PAGE 3 A-2 WATER SUPPLY STATUS REPORT Mr. Napper recommended Council receive the report for file. A-3 AWARD OF CONTRACT FOR PROJECT NO, PW 91-02, RECONSTRUCTION OF SOUTH T-PIER Mr. Napper recommended Council award the contract to R.E. Staite Engineering, Inc. in the amount of $1,175,274. A-4 PROCLAMATION DECLARING OCTOBER 19-27, 1991 AS "RED RIBBON WEEK" IN THE CAMPAIGN AGAINST DRUGS Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. Mr. Napper recommended Council adopt Resolution No. 111-91. A-6 GRANT OF TEMPORARY LEAVE OF ABSENCE FROM PLANNING COMMIS- SIONER DUTIES (REASORI Mr. Napper recommended Council grant Planning Commission Chairman Charles Reasor an excused leave of absence from 07 October 1991 through 01 December 1991 due to surgery and associated convalescence. Mr. Napper recommended Council ratify the Recreation and Parks Commission action to modify tennis court reservations and use rules; and, adopt Resolution No. 109-91 establishing reservation fees. w_:- •: Wei _.9..._z_ • •J.. •;1u.- a Mr. Napper recommended Council ratify Mayor Sheetz's selection of Councilmembers Mullen and Wuriu to the Joint Powers Sub -Committee with representatives from the Cayucos Sanitary District to review and recommend new language for Paragraph 6 of the Joint Powers Agreement. Mayor Sheetz pulled Item A-3 from the Consent Calendar, and Coun- cilmember Wuriu pulled Item A-7. MOTION: Councilmember Baker moved for approval of the Consent Calendar except for Items A-3 and A-7. The motion was 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 14, 1991 PAGE 4 seconded by Councilmember Luna and unanimously carried. (4-0) A-3 AWARD OF CONTRACT FOR PROJECT NO, PW 91-02, RECONSTRUCTION OF SOUTH T-PIER Rig Whibley, one of the unsuccessful bidders on the South T-Pier project, stated Council previously set precedence in not allowing irregularities of this type in bids. He said the City requires bidders to list subcontractors and material vendors; the low bid- der on this project, R.E. Staite Engineering, left out an impor- tant material vendor in Greenheart piling. He said the second, third, and fourth low bidders did submit this information in their bid. It is a $60,000 item. Mr. Whibley explained his views of the differences between Greenheart and timber; the low bid is not technically correct and should go to the second bidder or be rebid. Leslie Blair, City Project Engineer, stated the requirement for Dimerara Greenheart timber piling is in the bid specifications; the City requires that type of piling. The low bidder listed a supplier which provides this type of lumber; upon review, there is no discrepancy in the bid. MOTION: Councilmember Baker moved for the approval of Item A-3. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) A-7 REPORT OF RECREATION AND PARKS COMMISSION ACTION MODIFYING RULES FOR RESERVATION OF CITY TENNIS COURTS Councilmember Wuriu asked Mr. Wolter to review the charges for the tennis courts. Mr. Wolter did so and noted the charges are for reservations only if someone desires exclusive use of the courts. If someone arrives with a reservation permit, anyone playing must relinquish the tennis court. The fee is not for rental of the court; it pays for staff time and expense to issue a reservation permit for the facility. Councilmember Luna asked about the potential for conflict? Mr. Wolter said the same procedure is used for reserving park sites and there have been no problems. MOTION: Councilmember Wuriu moved for the approval of Item A-7. The motion was seconded by Councilmember Baker and unanimously carried. (4-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 14, 1991 PAGE 5 K�+hi*Ci_I'l',ix611A0 4�1-* B-1 ORDINANCE NO. 407 ESTABLISHING COMPREHENSIVE VESSEL HABITA- TION (LIVEABOARD) RULES AND REGULATIONS (SECOND READING/ ADOPTION) Mr. Napper stated the liveaboard ordinance is before Council for second reading and adoption this evening. The ordinance regu- lates potential pollution in the harbor by liveaboards and com- plies with State Lands Commission mandate to allow liveaboards in the public trust harbor for security purposes only. He noted the ordinance has been reviewed and approved by the State Department of Boating and Waterways, and is being required by the Regional Water Quality Control Board. Mayor Sheetz asked if the commercial fishermen had been included in the ordinance previous to this evening? Mr. Algert if a com- mercial fisherman desires a liveaboard permit, the ordinance does not exclude him; they are not included in the cap set for other liveaboards but still must obtain a permit. Mayor Sheetz questioned how Mr. Mattson received two different ordinances for the same meeting? Mr. Algert stated Mr. Mattson may have the ordinance from the first meeting in September; it was changed at that meeting and the revised ordinance presented at the second meeting in September. Councilmember Luna referred to letters from the Regional Water Quality Control Board (RWQCB) in 1989 and 1990; they specifically discuss a monitoring program for lift stations. Councilmember Luna asked if a program has ever been implemented? If this has not been addressed, perhaps we are getting ahead of ourselves with addressing pollution from liveaboards. Mr. Napper stated there are a variety of potential pollution sources in the bay. He believes the letter may be referring to private lift stations from waterfront businesses rather than City lift stations in our sewer system; those businesses have addressed their own facilities. Councilmember Luna said a November 9, 1989 letter from the RWQCB states they do not have the authority to delegate pollution con- trol. Mr. Algert stated he has a May 10, 1991 letter from the RWQCB stating different priorities. Mr. Napper indicated he could not respond to the 1989 letter regarding their authority. Mayor Sheetz asked if there was a series of events that led to the City chlorinating the outfall due to possible pollution? Mr. Algert stated yes, the RWQCB was concerned about pollution to the shellfish harvest in the bay. Requiring the City to chlorinate the outfall was one direction; regulation of liveaboards is another to attempt to eliminate this problem. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 14, 1991 PAGE 6 Councilmember Luna was in favor of the matter returning to the Harbor Advisory Board in order to address these last few issues; he has a hard time running government on assumptions and there is no documentation that liveaboards are polluters. Councilmember Baker agreed; he suggested adoption of the ordi- nance be postponed to the next meeting. Councilmember Wuriu said Council has delayed long enough; there have been two complete hearings with a number of years of discus- sion. He said the liveaboards really do not want the ordinance. MOTION: Councilmember Baker moved action on the ordinance be postponed until the next regular meeting of the Coun- cil. The motion was seconded by Councilmember Luna. Councilmember Baker said he is willing to meet with the live- aboards to try and work out the problems. Councilmember Luna said the liveaboards are confused about what is going on; they do not oppose the ordinance. Mayor Sheetz suggested the item be postponed to the next meeting; in the interim, she and Councilmember Baker can meet with a rep- resentative of the liveaboards, Commercial Fishermen's Associa- tion, and Harbor Advisory Board to discuss their concerns. MOTION: Councilmember Baker amended his motion to postpone action on the ordinance to the next meeting; and, in the interim, a City Council sub -committee meet with a representative of the liveaboards, Commercial Fisher- men's Organization, and Harbor Advisory Board to dis- cuss concerns. The amendment was accepted by Coun- cilmember Luna and the motion unanimously carried. (4-0) Mayor Sheetz stated she and Councilmember Baker will meet with the representatives; she asked Mr. Algert to organize the date, time, and place. Members of the audience shouted they did not want anyone else speaking for them on this matter. C. NEW BUSINESS INFORWRON Mr. Napper stated Council recently adopted an ordinance providing for joint meetings with the Planning Commission twice a year in October and April. Staff suggests the October meeting be set for October 24th at 6PM in the Library Community Room. A proposed agenda has been submitted by the Planning Commission; Council may wish to delete or add to the items. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 14, 1991 PAGE 7 Mayor Sheetz requested the meeting time be changed to 7PM. Councilmember Luna asked to add the Master Water Plan to the Pro- grams/Future Planning section of the Agenda. He said the discus- sion may lead to prioritizing the items, and he believes a Master Water Plan should be among those prioritized. Mayor Sheetz disagreed; the Water Advisory Board should be involved with a Water Management Plan. There was discussion regarding this matter with Council consensus not to include the requested item in the agenda with the Planning Commission. MOTION: Mayor Sheetz moved the joint meeting with the Planning Commission be set for October 24th at 7PM in the Library Community Room. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) C-2 CITY POSITION ON POLICY RESOLUTIONS FOR THE 1991 LEAGUE OF CALIFORNIA CITIES CONFERENCE Council reviewed the resolutions scheduled to be acted upon by the League of California Cities at their Annual Convention, and gave direction to Councilmember Baker who will be attending and voting on behalf of the City of Morro Bay. Mayor Sheetz stated she favored Resolution No. 39 which deals with animal overpopula- tion; Councilmember Wuriu urged a yes vote on Resolutions No. 7 and 8 regarding drug abuse. Councilmember Luna said he favored most resolutions; they address important issues in the community. ��L•Ii7�Tii:Yi�Ci]:�iZ•f7:�'L�:t�)1[iff •7L7:L�l��+ �i • _ • � � _ _ • � Mr. Napper stated he is in receipt of a request from the 4-H Club to waive the $50 land use permit fee for a Christmas tree sales lot. He suggested the Council, rather than waiving the fee, approve a special allocation from Aid to Agencies. This avoids the allegations of discrimination in waiving land use permit fees. MOTION: Councilmember Luna moved Council deny the request of the Morro Bay 4-H Club for waiver of the $50 Condi- tional Use Permit fee to hold a Christmas tree sale at 1170 Quintana Road; and, authorize the grant of $50 to the Morro Bay 4-H Club from the FY 1991-92 Aid to Other Agencies account. The motion was seconded by Coun- cilmember Baker and unanimously carried. (4-0) 0 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 14, 1991 PAGE 8 Mayor Sheetz stated this item will be continued to the next meet- ing at the request of Councilmember Mullen who is ill this evening. :•YiY \�.; •. Mr. Wolter stated the Recreation and Parks Commission recently made their annual tour of City parks which resulted in several recommendations concerning park names. The Commission recommends the Anchor Street Park be changed to Mariner Park, and the Dunes Street Park to Anchor Memorial Park. Also, they recommend "J" Street, the street to Keiser Park, be changed to Park Street. The Commission believes the recommended changes are more appro- priate and enhance the identity of the parks and street. Mr. Wolter stated Council can approve the park name changes by motion; however, the Municipal Code requires street name changes be approved by the Planning Commission. MOTION: Councilmember Baker moved Council approve the recommen- dation of the Recreation and Parks Commission to rename Anchor Street Park and Dunes Street Park to Mariner Park and Anchor Memorial Park, respectively; and, for- ward to the Planning Commission the recommendation to change "J" Street to Park Street. The motion was sec- onded by Councilmember Luna and unanimously carried. (4-0) • VIM _ _ _ _ - _ • i • V _ _ • \ • V._ _ \ 1.:_ _ Y _ \ ` _ _ _ _ Mayor Sheetz stated this item will also be continued to the next meeting at the request of Councilmember Mullen. C-7 APPROVAL OF CAPITAL PROJECTS AND OPERATING ENCU19BRANCES FROM Louise Burt stated City policy concerning a departmental saving program allows departments to encumber and carry forward 50% of operating savings from the prior year. The end of the fiscal year savings have been established, and it is in order for Coun- cil to approve the encumbrance of $3,386,546 and authorize the transfer of $24,296 from General Fund Balance to offset operating deficits of Personnel ($9,433) and Streets ($14,853) in FY 90-91. E r� MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 14, 1991 PAGE 9 Councilmember Luna noted the San Bernardo Dam/Coastal Streams projects are still listed with monies in the account. Ms. Burt stated the projects have ended, but were carried forward to close out the books and complete the work done to date. MOTION: Councilmember Baker moved Council approve the 30 June 1991 encumbrance list as submitted, totalling $3,386,546; and, authorize the allocation of $24,296 from General Fund Balance to offset operating deficits of Personnel ($9,433) and Streets ($14,853) in FY 90- 91. 'The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) Ardith Davis stated the City filed a motion for reconsideration after the Court ordered the City to hold the election for the initiative petition on mandatory State Water (Measure G) on or before November loth. That motion was granted, and the Court has now ordered the City to hold the election on or before December 17, 1991. Ms. Davis stated the resolution for Council considera- tion sets the election date for December 17th since it is believed all time allowed will be necessary to prepare for the election. Councilmember Luna questioned what the costs will be for the election. Ms. Davis stated it is unknown; however, staff is keeping track of expenses to provide an accurate figure for future reference. Councilmember Wuriu asked if the election could be held a week earlier because December 17th is so close to Christmas? Ms. Davis said she believes the additional time is necessary to allow for unexpected incidents; she noted the City is required to hold the election on a Tuesday. Mayor Sheetz opened the hearing to the public for comments. John Lemons, 419 Shasta, referred to Councilmember Luna's letter to the Sun -Bulletin in which he attempts to lay the blame for this special election and its costs on the proponents of the ini- tiative. He stated the Judge told the City they did not fulfill their constitutional duties, and that is the reason the propo- nents won the lawsuit against the City. He said the petition was submitted in accordance with the law, and there is no way Council can escape the fact they tried to keep the people of this commu- • • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 14, 1991 PAGE 10 nity from voting on this matter this year. He said the costs of the election and lawsuit are on the City's shoulders. Bill DeCarolis, 2551 Nutmeg, said he was in Court when the City was ordered to hold the election at the earliest possible date. It should be held on December loth, not the last day just to have extra time. Mary Phillips reviewed past Council actions with regard to the initiative; Council could have changed the advisory vote to a binding vote. Frank St. Denis, initiative proponent, requested Council hold the election at the earliest date possible; Christmas is a demanding time on people. He urged Council, since the election has been ordered, not to make this matter more difficult on people than Council already has. Bruce Risley stated it is unfortunate the City has to go through a double election. He has been involved in initiative petition drives in the past, and the groups he worked with always made an effort to find out what the deadlines were for filing an initia- tive. He said if this group had done its homework, the election on the initiative could have been held at the same time as the advisory election. He noted all Councilmembers have since pledged to abide by the outcome of the advisory vote; if State Water received the majority of the votes Council would pursue that project, and if Nacimiehto received the majority of the votes they would pursue it. Mayor Sheetz stated she and Councilmember Mullen did not say they would pursue whichever project received the highest number of votes; rather, they would pursue State Water if the majority of the people voting on State Water voted in favor of that issue. Katherine Walling asked what difference one week makes in holding the election? Mayor Sheetz explained some people believe it is too close to Christmas. Ms. Skousen stated the December 17th date was arrived at because it was the soonest the City could hold a legal election in rela- tion to Election Code requirements and notices. Ed McCracken stated people can always vote by absentee ballot if they are too busy because of the season. Councilmember Baker stated he originally brought this matter before Council for placing on the ballot as a mandatory issue. If Council had gone along with his request, the petition drive and subsequent problems would not have been necessary. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 14, 1991 PAGE 11 Councilmember Luna said last year the previous City Council did not listen to the people and staff about Williams Brothers. He said he will look into the facts represented by the flyer against the State Water Project. Councilmember Luna stated the record speaks for itself; the initiative was presented too late and was, in fact, rejected by the County for that reason. MOTION: Councilmember Wuriu moved for the adoption of Resolu- tion No. 111-91. The motion was seconded by Coun- cilmember Luna and unanimously carried. (4-0) D72 HEARING FOR PROTEST OF FORMATION OF UNDERGROUND UTILITY DIS- TRICT NO, 5 ON MORRO BAY BLVD.. HIGHWAY 1 TO MAIN STREET Bill Boucher reviewed this item stating Council, at their last meeting, set this date as a public hearing to establish an under- ground utility district on Morro Bay Boulevard from Highway 1 to Bernardo Avenue. Since that time, P.G.&E. and Pacific Bell have determined the area west of Bernardo Street does not meet the criteria for 20A funding and falls under a different category for funding with disparate criteria. Under this category, the prop- erty owners would be required to pay for the trenching, conduit, manholes, boxes, etc. which is estimated at $40,000-$50,000. Because of this determination, staff recommends the underground utility district be reduced to include Morro Bay Boulevard from Highway 1 to Bernardo Avenue for an expected cost of $280,000 in 20A funds. Mr. Boucher stated Jim Haas of P.G.&E. and J.D. Lee of Pacific Bell are in the audience to answer specific questions from Council. Mayor Sheetz opened the hearing to the public. Albert Jorge stated he hates to see the District reduced. He explained a problem on his Downtown property wherein he granted an easement to P.G.&E. 20 years ago that was supposed to be returned to him after undergrounding occurred, which was to be in a relatively short period of time. To date, the undergrounding has not occurred and he still has to deal with the easement when considering development potential. Mr. Haas stated he was not aware of the problem, but would be happy to meet with Mr. Jorge and review his situation. J.D. Lee explained Public Utilities Commission rules which restricts Pacific Bell from participating in this project west of Bernardo Avenue; the City does have the option of paying 50% of Pacific Bell's expenses ($80,000-$100,000) to underground west of Bernardo Avenue. Mayor Sheetz closed the hearing to the public. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 14, 1991 PAGE 12 Council expressed disappointment the remainder of the area cannot be in the underground district at this time; however, they believed "something is better than nothing". It was also noted the overhead utility lines at this entrance to the City are quite heavy and unsightly; undergrounding in this smaller area will still definitely be an improvement. MOTION: Councilmember Wuriu moved for the adoption of Resolu- tion No. 108-91. The motion was seconded by Coun- cilmember Luna and unanimously carried. (4-0) Councilmember Baker commented this action does not preclude the City from undergrounding the remaining area at a later date; staff concurred. how lwmli Mike Upton stated the Solid Waste Management Board (SWMB) recently reviewed an ordinance proposed by Californians Against Waste (CAW) concerning takeout food packaging recycling and waste reduction. Their recommendation is Council adopt a voluntary compliance ordinance, and staff work with the business community to resolve concerns prior to Council adoption of an ordinance. Mr. Upton stated the SWMB considered food packaging ordinances in the past and believes it is a regional and Statewide issue, and an over -kill for Morro Bay. His brief discussions with the busi- ness community indicate they are in favor of a voluntary program. No cities in California have adopted the CAW model ordinance. He suggested Council adopt a policy statement by resolution encour- aging voluntary compliance. Mayor Sheetz opened the hearing to the public for comments. Ed Biaggini, President of the Hotel/Motel/Restaurant Association, stated he visited various local restaurants and collected some of their take-out packaging. All the items have the recycling label on the bottom. It appears restaurants are doing what they can for the recycling effort right now, and what is needed is a mech- anism for these items to be disposed and picked -up. He said their Association will be meeting the next day and will discuss this matter. Suedene Nelson, Chamber Executive Director, said she collected items from the larger chain restaurants and they are also doing their part. She said the Chamber would like to be involved in this effort to help educate and get the program together. Rodger Anderson, 899 Embarcadero, encouraged Council to adopt a resolution rather than an ordinance on this matter. The people in the business community are trying to be responsible without a MINUTES - MORRO BAY CITY COUNCIL. REGULAR MEETING - OCTOBER 14, 1991 PAGE 13 law telling them what to do. He believes the business community would appreciate an opportunity to work through some of the recy- cling efforts on a voluntary basis first. Mayor Sheetz closed the hearing to the public. Mayor Sheetz was concerned there is rush to have the ordinance adopted; enforcement will not be required until the year 2000. Councilmember Luna agreed the program should be voluntary. MOTION: Councilmember Baker moved additional time be allowed for input from the community, and the matter return to Council as a policy statement. The motion was seconded by Mayor Sheetz and unanimously carried. (4-0) Council recessed from 7:46 p.m. to 7:58 p.m. D-4 RECOMMENDATION FROM CABLE TV FRANCHISE AND SERVICES BOARD REGARDING COMPLIANCE OF SONIC CABLE TELEVISION WITH FRAN- CHISE AGREEMENT AND MUNICIPAL CODE Forrest Henderson stated when this matter was last before Coun- cil, the Cable TV Board recommended revocation of Sonic's fran- chise for cause due to breach of contract. At that meeting, Sonic presented the City with a Request for Modification of the Franchise. Council determined Sonic had breached their franchise without cause, and that the franchise will be terminated unless Sonic obtains a modification which brings them into compliance or Sonic comes into compliance with their franchise within 120 days. Staff was also directed to immediately seek an alternative cable television operator. Mr. Henderson stated the TV Board subsequently met and considered Sonic's Request for Modification, and another letter from Sonic clarifying the request. The Board found nothing had changed from Sonic's previous position; they will give the City 22 channels but those 22 channels will cost the individual more than the 28 channels used to cost. The Board denied the Request for Modifi- cation as not being in the best interests of the City. They also recommended the City Attorney negotiate a new definition of "basic cable" with Sonic. Mr. Henderson reported he has followed Council direction and sent Request for Proposals for cable service to 24 companies. He noted on October 25th, the City will have regulatory authority over basic cable service. He said Sonic retiered their cable service in anticipation of this legislative regulation. Mr. Henderson noted since 1986, Sonic's channel capacity has decreased 52% and their rates have increased 52%. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 14, 1991 PAGE 14 Councilmember Luna quoted cable rates from cities throughout the country; in most cases Sonic charges higher rates for less channels. Mayor Sheetz opened the hearing to the public for comments. Suzanne Fryer, attorney with the firm Sinsheimer, Schiebelhut & Baggett representing Sonic, stated General Manager Steve Burrell is out of town and unable to be present at the meeting this evening. She said she is here to discuss the Request for Modifi- cation, not whether Sonic is in breach of the contract. Ms. Fryer stated the Federal Cable Act gives cable companies the right to request a change in their franchise agreement. Sonic delayed a long time in asking for a modification because they do not believe they are required to do so; they do not believe they have violated the ordinance. No programs are missing; 28 chan- nels are still available to the public. The re -tiering does not change the mix, quality or level of services. Therefore, a Request for Modification is not required. The only reason they submitted the request was to move things along; no customers are calling for 22 channels. Ms. Fryer stated the City has no rate regulation authority at all; there was nothing the City could do when Sonic retiered their programming one year ago. Councilmember Wuriu questioned the discrepancies and rationale between the amount of channels the City used to get for a price and the 12 channels now for a higher price. Ms. Fryer said there was no rate regulation in effect in Morro Bay in May 1990 or even today; the City will only obtain rights to regulate rates in sev- eral weeks. Councilmember Luna stated it is not good business practice to charge $20.20 for a basic service of only 12 channels, when basic service was once 19 channels for $19. He said there is no justi- fication for the action by Sonic. Mr. Henderson noted Sonic alleges there is no change to the mix, quality or level of service and therefore they are not required to request a modification. In fact, there has been a change to the mix and level of service. He noted the change of CNN from channel 10 to channel 15 as an example of a change in mix; and, the additional level of service established by re -tiering channels. Bill Olson, Cable TV Board members, stated Congress receives many complaints on Cable TV and one of these days they are going to do something about it. In anticipation of this, Sonic wants the ordinance modified to write 12 channels as "basic service" into it. Then, if Congress changes the law, the City will be stuck MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 14, 1991 PAGE 15 with the 12 channels. There is nothing in their request for the City - only for Sonic. Ms. Skousen stated the purpose of the hearing is not to discuss whether or not there is a breach of the franchise, but to act on Sonic's request for Modification. In denying the request, Coun- cil may find approval will be detrimental to the best interests of the City. Mayor Sheetz agreed there is nothing in Sonic's latest proposal for the City. She favors an inter -city regional cable company. Councilmember Wuriu was concerned if Council proceeds with revo- cation, Sonic may cut-off cable service entirely. Mr. Henderson stated he has received concerns of this nature also. He said he has prepared the RFP's for cable service to coincide with termi- nation of the Sonic agreement in January 1992. He explained var- ious ways the transfer of service could be accomplished; however, no one can guarantee Sonic will not cut service to its customers. Councilmember Baker commented on the letter from Sonic requesting modification and their clarifying letter, and asked the intent of the letter. Mr. Henderson stated all the letter says is "regulate what we have already done"; the TV Board finds that unacceptable for the community and the City. Council questioned the second phase of the Board's recommendation to negotiate the definition of "basic service" with Sonic attor- neys. Ms. Skousen said the effort would be futile; Sonic has indicated they are totally unwilling to compromise on what they want. MOTION: Mayor Sheetz moved Council approve the recommendation of the TV Franchise Board that Sonic's Request for Mod- ification of the Franchise be denied in that it is detrimental to the best interests of the community. The motion was seconded by Councilmember Luna. Councilmember Wuriu asked if the action still leaves room for negotiation? Ms. Skousen stated yes, additional requests can be submitted within the 120 day period. Councilmember Wuriu commented last time this matter was before Council, he was believed it was worth delaying revocation pro- ceedings and give Sonic another chance. Since that time, he doubts Sonic's seriousness about negotiating. The motion carried unanimously. (4-0) 0 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 14, 1991 PAGE 16 Mr. Mapper reviewed the letter from Guy A. Serene requesting Council allow moving a water meter to a new location. Mr. Mapper noted present ordinances do not allow transfer of water from one property to another; however, Mr. Serene still requested time before Council to present his case. Mayor Sheetz called for Mr. Serene's presentation but no one stepped forward. Mr. Mapper noted he had written to Mr. Serene informing him of the date and time of this Council meeting. Mayor Sheetz stated this is something Council does not do; and, there is no ordinance allowing it. MOTION: Mayor Sheetz moved the request be denied. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) E. CLOSED SESSION MOTION: Councilmember Baker moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmem- ber Luna and unanimously carried. (4-0) Mayor Sheetz stated Council is adjourning to Closed Session to discuss pending litigation in accordance with Government Code §54956.9(a), Cayucos Sanitary District vs City of Morro Bay. The meeting adjourned to Closed Session at 8:31 p.m. and returned to regular session at 8:58 p.m. F. ADJOURNMENT MOTION: Councilmember Luna moved the meeting be adjourned. The motion was seconded by Councilmember Baker and unani- mously carried. (4-0) The meeting adjourned at 8:58 p.m. Recorded by: �e� A6--� ZN ARDITH DAVIS City Clerk sala�� 36) 1.qq I MINUTES - MORRO BAY CITY COUNCIL AND CAYUCOS SANITARY DISTRICT JOINT POWERS MEETING - SEPTEMBER 30, 1991 LIBRARY COMMUNITY ROOM - 7:00 P.M. Mayor Sheetz called the meeting to order at 7:00 p.m. PRESENT: Rose Marie Sheetz John Baker Ben Luna Sue Mullen Tom Wuriu ABSENT: None PRESENT: R. Evan Dill Terry Schubert Tom Craig Pati Hutchinson Henry Piaskowski ABSENT: Morro Bay STAFF: Cayucos STAFF: � 4LV None None Gary Napper Judy Skousen Nick Nichols Louise Burt Elane Novak Roger Lyon, Junior Mayor Councilmember Councilmember Councilmember Councilmember President Vice -President Director Director Director City Administrator City Attorney Public Works Dir. Finance Director Deputy City Clerk Attorney, Cayucos Sanitary District A. CONSENT CALENDAR A-1. MINUTES OF REGULAR MEETING JUNE 20, 1991 A-2. MINUTES OF SPECIAL MEETING AUGUST 27. 1991 MOTION: Councilmember Luna moved the Consent Calendar be approved. The motion was seconded by Councilmember Baker and unanimously carried. (10-0). MINUTES - MORRO BA&ITY COUNCIL/ • CAYUCOS SANITARY DISTRICT - SEPTEMBER 30, 1991 PAGE 2 A discussion followed as to whether there should be separate motions and vote on each issue by the two governing bodies. Mayor Sheetz stated they function as a Joint Powers Committee and all members should vote on the same motion. Roger Lyon, Attorney for the Cayucos Sanitary District, disagreed saying there should be separate motions by each body and so advised Cayucos to vote that way on all issues of controversy. Judy Skousen, City Attorney for Morro Bay, disagreed with Mr. Lyon; the.JPA clearly indicates one motion voted upon by all present. Mayor Sheet read page 10 of the JPA Agreement and indicated a roll call vote can be taken to determine if a majority of each quorum voted in favor of the motion. Mr. Nichols gave this report stating staff had worked with Dr. Alexander to conduct a field pilot study of Dr. Alexander's galvanic agglutination process to reclaim the effluent at the Wastewater Treatment Plant. On September 9, 1991, City Council reviewed .the study and allocated $3,000 to conduct the study and authorized staff to proceed. Mr. Nichols asked Cayucos if.they wished to participate in the study and/or grant the City permission to perform the study at the Treatment Plant. Director Schubert asked between the two entities how much would the study cost? He suggested since it was using personnel, the study should be based upon operational cost ratios, typically 75% Morro Bay - 25% Cayucos. Mr. Nichols stated again it would cost $3,000 for direct costs, but that figure does not include labor and overhead costs. The results would be owned jointly by the City and Cayucos if funded jointly by either operating or capital apportionment ratios. Director Hutchinson asked what estimates would be for supervisory and report -writing time? Mr. Nichols stated that he and Darrel Richards, Wastewater Treatment Plant Superintendent, would be doing that work and he could not estimate how much time they would put in nor had he kept an accounting of time already put in by City staff on the study to date. MINUTES - MORRO B0CITY COUNCIL/ CAYUCOS SANITARY DISTRICT - SEPTEMBER PAGE 3 30, 1991 President Dill felt it was a gamble and Cayucos did not want to be involved; if the study worked, then Cayucos would be willing to pay their fair share, but he did not want to put any money up front. Let Morro Bay be the lead agency. Director Craig said he would like to see Cayucos go ahead and be part of the study from the very beginning on the 65%-35% ratio related to plant improvements. MOTION: Director Craig made a motion to participate at 65% Morro Bay, 35% Cayucos, but not to exceed $3,000 on Cayucos part.. Motion was seconded by Director Piaskowski. SUBSTITUTE MOTION: Councilmember Wuriu moved Morro Bay and Cayucos enter into a joint project with Dr. Alexander for the performance of a galvppanic agglutination process study for wastewater reclamation on a 65% Morro Bay - 25% Cayucos cost ratio, not to exceed $3,000 to Cayucos. The motion was seconded by Councilmember Luna. The motion carried on the following vote. (7-3) AYES: Baker, Luna, Mullen, Sheetz, Wuriu, Dill, Piaskowski NOES: None ABSTAINED: Craig, Hutchinson, Schubert Roger Lyon noted Cayucos' disagreement the motion passed; Judy Skousen declared the motion passed by a vote of 7-3. Mr. Nichols reported further investigation and research of documents reveals the existing shed was built entirely from sewer collection system funds from the City of Morro Bay. Director Craig asked if the shed is on jointly -owned property? Mr. Nichols said yes it is. Director Schubert asked why, did Cayucos ever approve that? Mr. Nichols responded it is unknown; he presumes approval was given but he cannot yet find any record as such. Mayor Sheetz said that 1985 was the first year, the City had a mid -year budget and the shed was funded and built at that time. Director Piaskowski noted the shed is worth about $4,000 at this time. Councilmember Wuriu noted Cayucos did not pay anything for the existing shed that partially houses and stores jointly -owned equipment; the record is very clear on that point. MINUTES - MORRO B0CITY COUNCIL/ CAYUCOS SANITARY DISTRICT - SEPTEMBER 30, 1991 PAGE 4 MOTION: Councilmember Wuriu moved to rescind the former motion in which City agreed to pay $11,108 to Cayucos for past use of the equipment shed. The motion was seconded by Councilmember Luna. Director Schubert said he felt action should be delayed until Cayucos received detailed accounting data they have requested which shows what monies have been paid out in the past 5 years. Councilmember Mullen said it is very clear from invoices and accounting records the City paid for the shed. She also feels sure that Mr. Nichols had full agreement from Cayucos at the time but just does not have the written records. Let's remove this issue as a bone of contention between the agencies. Mayor Sheetz noted that since it was a separate motion by Morro Bay at the last meeting that authorized the now -erroneous action to repay Cayucos for the shed expenses, Morro Bay is the only agency required to vote on the motion. The motion was unanimously approved on a vote of 5-0. B-3. CAYUCOS REQUEST AN INDEPENDENT AUDIT ON JPA OPERATIONS BE CONDUCTED, AND THAT CAYUCOS PARTICIPATE IN THE SELECTION OF THE AUDITOR (CPA) Louise Burt, Finance Director gave the report. Since the transmittal of the agenda packet a quote was received from Barbich, Longcrier, Hooper, and King. Their cost range is $5,000-$8,500. She explained any of the auditing firms on the list would do a good job. The lowest quote is from Butchers and Chambers in the amount of $1,750. Director Schubert asked the scope of the audit for bid? Ms. Burt explained what was involved; the more expensive quotes involved an integration of fixed assets. Councilmember Mullen asked if City does not do this as part of its regular audit? Ms. Burt said this effort would substantially be a duplication as all City accounts are audited. President Dill asked if 5 years of City audit records could be put together and given to Cayucos? Director Hutchinson asked if the auditor that reviews the Wastewater Treatment Plant audits the entire City, and also was he an independent auditor or is he employed by the City? Ms. Burt said the auditor that reviews the wastewater treatment records does the entire City and they are independent, not employees of the City. FJ MINUTES - MORRO BAY CITY COUNCIL/ CAYUCOS SANITARY DISTRICT - SEPT. PAGE 5 30, 1991 Director Schubert said he just wanted to abide by JPA language that calls for Cayucos' participation in the selection of the auditor. In further discussion, Mayor Sheetz said for clarification purposes the audits were not separate but part of the City audits but could be separated out and put in a book showing the past 5 years. Director Hutchinson said she would like an audit of joint properties. Councilmember Mullen responded this has already been and is being done. Ms. Burt verified this fact and said the City would still have this audit.even if a separate one was done. Mayor Sheetz said perhaps this audit requirement should be re- written in the JPA agreement. MOTION: President Dill moved City staff give Cayucos the past 5 years of JPA-audited records, and then the Cayucos Board determine what to do after reviewing it. The motion was seconded by Councilmember Mullen. The motion carried on the following vote: (9-1) AYES: Baker, Luna, Mullen, Sheetz, Wuriu, Craig, Dill, Hutchinson, Piaskowski NOES: Schubert Discussion on how to vote followed; separate Board vote, or one vote on main motion? It was suggested the attorneys should discuss this issue before the next joint meeting. Judy Skousen asked if the JPA should get their own attorney to advise them; Mayor Sheetz concurred. Roger Lyon said may be this item should be agendized? Director Schubert asked when Cayucos might expect the information? Ms. Burt stated she had given the information to Cayucos awhile back. Ms. Burt asked Cayucos District Office Manager Bonnie Connelly if she had received this information? Ms. Connelly said yes. • MINUTES - MORRO BAY CITY COUNCIL/ CAYUCOS SANITARY DISTRICT - SEPT PAGE 6 30, 1991 • : \ �_ f • ♦ t _ • _ • -: Jam'_' �.4 �' • :_: _ • • Ms. Burt explained that in a JPA meeting on August 27, 1991, Cayucos requested a 5-year audit relating to the JPA Wastewater Treatment.Plant. Ms. Burt explained the percentages paid, what progress had been made in extracting different parts of the audit pertaining to the WWTP. She said a staff member from Cayucos would be welcome to come and help extract the historical information required which would speed up the process. Director Piaskowski indicated he and Bonnie Connelly will do it. Director Schubert asked why there is a percentage difference in 1.5% charges for indirect staff time and the full recovery cost (2x) Morro Bay charges when employees are asked to service Cayucos collection system facilities?. Mr. Napper explained when Morro Bay workers go to Cayucos, it was interpreted they are working outside the JPA. Louise Burt added when Morro Bay collection workers are called to work in the plant, no costs have been recovered from Cayucos in the past. Director Schubert stated Cayucos had not been advised nor asked permission to fill WWTPO personnel vacancies,. per the JPA. Mr. Nichols explained these are not new -positions and the City interprets the JPA that filling budgeted positions does not require Cayucos' separate authorization. Mr. Napper added the treatment plant operations are not at minimum staffing levels at this time due to the vacancies; overtime is now routinely required which is not a minimum operational level. It was suggested by the Mayor and other Councilmembers that if Cayucos was not happy with the JPA, perhaps it should be re- written? Director Schubert said he was perfectly happy with the JPA. Councilmember Mullen asked how much money was being talked about concerning the differential in indirect staff time charges? Ms. Burt said the City of Morro Bay paid back about $4,000 annually to the JPA; the charges to Cayucos were minimal. She suggested the 1.5 factor could be used in each instance as no other contingencies are addressed in the JPA. President Dill said use the 1.5 factor but need to modify this r1 MINUTES - MORRO BAY CITY COUNCIL/ CAYUCOS SANITARY DISTRICT - SEPTEMBER PAGE 7 30, 1991 portion of the JPA to reflect all instances where this may occur. Councilmember Wuriu suggested putting together a sub -committee to work on this modification; Director Schubert concurred with this suggestion. MOTION: Councilmember Wuriu moved a sub -committee be appointed with representatives from both jurisdictions to examine the joint powers agreement with regard to problem issues. 'Councilmember Luna seconded the motion. Councilmember Mullen said the motion must pertain to this one item only (i.e. B-4, indirect cost allocations). President Dill said as part of this same motion, how many members on the Sub -Committee? It was decided there would be two members from the City, two members from Cayucos, and both "Finance Directors". The motion carried (5-0). The Morro Bay City Council announced it will appoint its two members for the Sub -Committee at their next Council meeting, 14 October 1991. MOTION: Director Schubert moved to appoint a Sub -Committee of two members for the same purpose at their next meeting. The motion was seconded by Director Craig and carried with Director Piaskowski voting no (4-1). . Ms. Burt continued with her report on revenue allocation and fixed assets; she noted there is a fixed assets record but it is not integrated into the financial reports because the JPA Committee is not establishing joint depreciation accounts, although each agency is separately addressing these needs.. Ms. Burt expressed favor in creating annual depreciation through the JPA but added this presents $300,000 - $400,000 annual depreciation which is a significant impact to each agency. The staff suggestion to transfer remaining funds from the clean water grant funds to a replacement fund and allow the interest to pay some of the depreciation was reiterated. President Dill asked if this information would be easy to pull out of the audits? Ms. Burt said it would not as far as the revenue but she can supply that information to Cayucos. President Dill also asked for a copy of the lease and directed Bonnie Connelly to look at the lease. President Evan Dill seated himself in the audience at this point and will not sit on Items B-5 and B-6 due to conflict of interest. L MINUTES - MORRO BAY CITY COUNCIL/ CAYUCOS SANITARY DISTRICT - SEPTEMBER PAGE 8. 30, 1991 ems- :_:_': •�- '."- L. �� • - - - Mr. Nichols reported the treatment plant personnel have recently concluded a test that the hydraulic capacity of the ocean outfall pipeline is greater than that predicted by Brown and Caldwell Consulting Engineers' design calculations. The outfall in 1980 was predicted to have maximum hydraulic capacity of 6.64 mgd in its present configuration of, gravity flow, 28 ports open. The calculations indicate the capacity of the outfall line could be increased to 8.16 mgd if all ports are opened and.pumps installed to push the effluent through the line. On 09 September 1991, treatment plant personnel pumped plant effluent through the system at measured flow rates between 4.6 mgd and 7.2 mgd; the elevation of the water surface in the Air Release Structure was also measured to determine the actual head loss through the outfall at these flow rates. The results of the test indicate the predicted head losses were not observed; the actual head losses appear on the order of 23%-46% less than predicted. This indicates the calculations were conservative and the actual hydraulic capacity of the outfall system appears to be higher than original calculations. Director Schubert said Mr. Nichols previously indicated flow meter records were available immediately after the last meeting; why are these records still unavailable? Mr. Nichols said the report has just not been done at this time. He explained some of the problems he unexpectedly encountered: there was a mixup at the plant regarding which meter, which has now been resolved; also, they found that one of the meters was not recording accurately due to an electrical problem. Some data had to be recollected and he would provide the report to Cayucos as soon as available. Director Craig wondered if information was being hidden from Cayucos, and why? Mr. Nichols and Mr. Napper both responded to this by noting there had just not been enough time to complete the report since the outfall meter had been repaired. Director Schubert said Cayucos could not make a decision on this item because they did not have the information and report for their engineer to review. Councilmember Mullen said that when Mr. Nichols previously indicated he had the meter information, he believed that to be correct; but, he then discovered the meter problem and he had to wait until the meter was repaired to complete the report. MINUTES - MORRO BAPCITY COUNCIL/ CAYUCOS SANITARY DISTRICT - SEPTEMBER PAGE 9 • 30, 1991 Director Craig questioned the validity of running a test for only one hour. In the discussion that followed, it was determined this is a gravity flow system and the pipe will hold only so much so it does not matter how short or long a time the test is held for. Mr. Lyon said this is a legal issue; capacity .is measured by average monthly flow and not peak demand flow. Since they have not gotten the information, it is either a matter to be litigated or arbitrated.' Mr. Napper indicated the meter report received this day by him will be made available to Cayucos. MOTION: Director Schubert moved that Item B-5 be tabled pending additional meter information' from Mr. Nichols. The motion was seconded by Director Piaskowski and failed (4-5-1). MOTION: Councilmember Mullen moved this policy matter be resolved by determining the capacity of the .ocean outfall is at least 6.64 mgd as currently operated under gravity flow with 28 ports open; and, the capacity of the outfall would be at least 8.16 mgd if all ports were opened and pumps installed to push the effluent through the outfall; and further, pursuant to Paragraphs 5, 8a and b of the JPA, the City of Morro Bay owns and has the right to use 65%of the capacity (either 6.64 mgd or 8.16 mgd, as the case may be) in accordance with the terms of the Joint Powers Agreement. The motion was seconded by Councilmember Luna with following vote: (5-0-5). Mayor Sheetz declared an impasse on this matter now exists. MOTION: Mayor Sheetz moved that an impasse is declared between the two agencies on this matter and therefore the agencies must access Paragraph 6 of the Joint Powers Agreement to resolve this impasse through an independent engineer appointed to resolve the issue. The motion was seconded by Councilmember Baker with following vote: (5-0-5). Cayucos Sanitary District indicated its refusal to vote on the motions because they voted to table the item. MINUTES - MORRO BA0ITY COUNCIL/ • CAYUCOS SANITARY DISTRICT - SEPTEMBER 30, 1991 PAGE 10 B-6. THE CITY'S USE OF ITS CAPACITY RIGHTS IN THE OCEAN'OUTFALL TO DISPOSE OF WASTEWATER FROM ITS TEMPORARY EMERGENCY SEAWATER DESALINATION PLANT, AND REQUEST TO RESOLVE THE CONTROVERSY AS TO WHETHER THE CITY OF MORRO BAY IS ENTITLED TO USE ITS CAPACITY IN THE OCEAN OUTFALL FOR WASTEWATER FROM ITS TEMPORARY EMERGENCY SEAWATER DESALINATION PLANT PURSUANT TO PARAGRAPH 6 OR PARAGRAPH 22 OF THE JPA There was no written' report. Ms. Skousen, City Attorney, said Morro Bay is entitled to use 65% of .the capacity of the wastewater treatment plant outfall line pursuant to the terms of the JPA. She indicated Cayucos had filed a lawsuit prematurely on .this issue and should have accessed' the JPA to address this issue. Councilmember Mullen agreed the ',two agencies should arbitrate this issue. Mr. Lyon said the City was not interested in arbitrating this problem; the City would rather go to court. Ms. Skousen responded there would be no reason, to go to court at this point because the court will simply order it back to the JPA to be resolved through arbitration. Morro Bay did not go to court and file the lawsuit; Cayucos did. Director Schubert asked if the City had considered the effect of the desalination discharge upon the agencies' 301(h) waiver by the EPA; EPA staff recently announced it may jeopardize re - issuance of the 301(h) waiver thereby requiring the plant to upgrade to secondary treatment costing over $3.5 million? Mr. Napper responded that EPA's interest in requiring the treatment plant to be upgraded to full secondary treatment levels has existed long before the City. entertained the need for an emergency desalination plant discharge. Mr. Nichols reported the City did contemplate such matters in'its evaluation of the use of the outfall but after contacting Regional Water Quality Control Board staff it was believed it would not be a problem for compliance. MOTION: Councilmember Baker moved City of Morro Bay shall be entitled to use the jointly -owned ocean outfall line for the wastewater from its emergency desalination plant, regardless of the 301(h) waiver outcome. ' The motion was seconded by Councilmember Luna with the following roll call vote: (5-0-5): YEAS: Baker, Luna, Mullen, Sheetz, Wuriu NOES: None NOT VOTING: Craig, Dill, Hutchinson, Piaskowski, Schubert MOTION: Director Schubert moved Cayucos adjourn. The motion was seconded by Director Craig and failed: (4-5-1). With a Quorum of both Boards still present: MINUTES - MORRO BAOCITY COUNCIL/ CAYUCOS SANITARY DISTRICT - SEPT PAGE 11 • 30, 1991 MOTION: Councilmember Mullen moved to declare an impasse exists between the two agencies on the issue of the City's right to use the jointly -owned outfall pipeline for wastewater from. the emergency temporary desalination plant, and therefore Morro Bay and Cayucos must access Paragraph 6 of the Joint Powers Agreement to resolve this impasse through an independent engineer appointed to resolve the issue. The motion was seconded• by Councilmember Baker with following roll call vote: (5- 0-5). AYES: Baker, Luna, Mullen, Sheetz, Wuriu NOES: None NOT VOTING: Craig, Dill, Hutchinson, Piaskowski, Schubert ADJOURNMENT MOTION: Councilmember Baker moved the joint meeting be adjourned. The motion was seconded by Councilmember Luna and the vote was (5-0-5). The meeting adjourned at 9:10 p.m. Recorded by: ELANE NOVAK Deputy City Clerk 0 0 NOT = C E OF S P E C =AL MEET = NG NOTICE IS HEREBY GIVEN, pursuant to Morro Bay Municipal Code Section 2.08.110 and 2.08.120, that a Special Meeting of the Morro Bay City Council is hereby called to be held on Monday, September 23, 1991 at 5:00 p.m. in the City Hall Conference Room, 595 Harbor Street, Morro Bay, CA. At said Special Meeting Council shall adjourn to Closed Session for the purpose of discussing pending litigation in accordance with Government Code §54956.9(a) in the matter of Frank St. Denis v. City of Morro Bay. et al. DATED: September 20, 1991 BEN LU , Vice M y City f Morro Bay California MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - SEPTEMBER 23, 1991 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Sheetz called the meeting to order at 5:00 p.m. PRESENT: Rose Marie Sheetz John Baker Ben Luna Susan Mullen Tom Wuriu ABSENT: None STAFF: Gary Napper Judy Skousen Ardith Davis PUBLIC COMMENT None. E. CLOSED SESSION Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney City Clerk MOTION: Councilmember Wuriu moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmem- ber Luna and unanimously carried. (5-0) Mayor Sheetz stated Council is adjourning to Closed Session to discuss pending litigation in accordance with Government Code §54956.9(a), Frank St. Denis v. City of Morro Bay, et al, Supe- rior Court Case No. 70496. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:52 p.m. F. ADJOURNMENT MOTION: Councilmember Luna moved the meeting be adjourned. The motion was seconded by Councilmember Mullen and unani- mously carried. (5-0) The meeting adjourned at 5:52 p.m. Recorded by: �� ARDITH DAVIS City Clerk 11 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 23, 1991 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE PRESENTATIONS: • PROCLAMATION DECLARING 20 SEPTEMBER 1991 AS "NATIONAL POW/MIA RECOGNITION DAY" • PROCLAMATION DECLARING OCTOBER 1991-1992 AS "YEAR OF THE BAY" 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 SPECIAL MEETING OF SEPTEMBER 5, 1991, AND THE REGULAR MEETING OF SEPTEMBER 9, 1991 A-2 EXPENDITURE REPORT - AUGUST 1991 A-3 STATEMENT OF INVESTMENTS - AUGUST 1991 A-4 ADDITION TO CITY JOB CLASSIFICATION PLAN: RESERVE HARBOR PATROL OFFICER II A-5 PROCLAMATION DECLARING OCTOBER 1991 THROUGH OCTOBER 1992 AS "YEAR OF THE BAY" A-6 AWARD OF CONTRACT FOR PROJECT NO. PW 90-08, 3-WAY TRAFFIC SIGNAL INSTALLATION AT MAIN STREET/QUINTANA ROAD INTERSECTION A-7 WATER SUPPLY STATUS REPORT A-8 AUTHORIZATION AND FUNDING OF STREET LIGHT INSTALLATION AT AZURE AND SANDALWOOD INTERSECTION A-9 PROCLAMATION DECLARING OCTOBER 6-12, 1991 AS "FIRE PREVENTION WEEK" A-10 NOTICE OF COMPLETION ON PROJECT NO. PW 91-01, ANNUAL STREET RE - STRIPING PROJECT A-11 AWARD OF CONTRACT FOR PROJECT NO. PW 89-10, TWO STORM DRAIN PROJECTS (BALI STREET; MORRO BAY BLVD.) A-12 RESOLUTION NO. 105-91 AUTHORIZING RECORDING OF DEED RESTRICTION ON SOUTH T-PIER PURSUANT TO REQUIREMENT OF COASTAL COMMISSION PERMIT CONDITIONS OF APPROVAL B. UNFINISHED BUSINESS B-1 COUNCIL SUB -COMMITTEE REPORT ON NEW HOLIDAY BANNER DESIGNS B-2 CONTINUED CONSIDERATION OF SUGGESTION BY STREETS AND TREES COMMITTEE FOR WAVY "ADVANCE WARNING" PAVEMENT MARKINGS AT STOP SIGN INTERSECTIONS ON MORRO BAY BLVD. AT NAPA AVE. AND PINEY WAY C. NEW BUSINESS C-1 POSITION ON GROWTH MANAGEMENT FOR SUBMITTAL TO GOVERNOR'S INTERAGENCY COUNCIL ON GROWTH MANAGEMENT C-2 REQUEST FOR FUNDING OF CENTRAL COAST CONFERENCE ON YOUTH "CHILDREN -AT - RISK" (DECEMBER 6, 1991) C-3 RATIFICATION OF PURCHASE OF USED FIRE LADDER TRUCK (1983 PIERCE ARROW 75 FT. AERIAL/QUINT) C-4 RESOLUTION NO. 107-91 EXTENDING TIME (60 DAYS) ON LEASE SITES(S) 50/50W AND 51/51W FOR CESSATION/DEMOLITION OF RESIDENTIAL USES (dba ASSOCIATED PACIFIC CONSTRUCTORS; 495 EMBARCADERO) D. PUBL•IC HEARINGS. REPORTS & APPEARANCES D-1 ORDINANCE ESTABLISHING COMPREHENSIVE VESSEL HABITATION (LIVEABOARD) RULES AND REGULATIONS (INTRODUCTION/FIRST READING) D-2 HEARING FOR PROTEST(S) OF SUPPLEMENTAL ASSESSMENTS REQUIRED FOR THE MIMOSA STREET ASSESSMENT DISTRICT STREET IMPROVEMENT PROJECT (RESOLUTION NO. 106-91 ADOPTING SUPPLEMENTAL ENGINEER'S REPORT AND CONFIRMING THE SUPPLEMENTAL ASSESSMENT) D-3 DETERMINATION OF NON -BINDING CITY SUBSCRIPTION FOR SUPPLEMENTAL WATER FROM LAKE NACIMIENTO WATER PROJECT E. CLOSED SESSION E-1 GOVERNMENT CODE §54956.9(A), CAYUCOS SANITARY DISTRICT V. CITY OF MORRO BAY, SAN LUIS OBISPO SUPERIOR COURT, CASE NO. 70420 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 23, 1991 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:10 p.m. PRESENT: Rose Marie Sheetz John Baker Ben Luna Susan Mullen Tom Wuriu ABSENT: None STAFF: Gary Napper Judy Skousen Rick Algert Louise Burt Ardith Davis William Farrel Dave Howell Forrest Henderson Jeff Jones Nick Nichols Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Harbor Director Finance Director City Clerk Community Dev. Dir. Police Chief Asst. City Admin. Fire Chief Public Works Dir. Bruce Curtis, Four -Square Church, gave the invocation, and Coun- cilmember Baker led the Pledge of Allegiance. Councilmember Luna read and presented the Proclamation to Kristin Spiller. Ms. Spiller outlined facts surrounding missing service- men, and expressed her appreciation to the City for their recog- nition of the MIA/POW plight. ':• —:_vim.__• • ;_; • •: ; Mayor Sheetz read the Proclamation and presented it to Paul Van Beurden, Chairman of this year's Harbor Festival, and Harbor Fes- tival Executive Director Galen Ricard. 1. Mary Phillips said she just came back from Fresno and believed it ridiculous no one wants State Water like Fresno has. She also read a poem she wrote. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 23, 1991 PAGE 2 2. Gary Johnson, San Luis Bay Drive, San Luis Obispo, requested the opportunity to speak on Item A-11. Mayor Sheetz stated she will pull that item from the Consent Calendar. 3. Nelson Sullivan stated he has appeared before Council numerous times protesting the City's on -site water transfer ordi- nance. He stated it conflicts with the Coastal Development Per- mit, Measure F, and Measure I. He suggested Council agendize the matter at the next Council meeting and seek competent outside help for advice. 4. Warren Dorn, President of Morro Bay Beautiful, submit- ted a letter he wrote to Peter Grenell of the Coastal Conservancy concerning the Conservancy's purchase of the Domenghini property. He requested the letter be read into the record; Ardith Davis read the letter. He also learned SB 710, State Resources Bond Act of 1992, is a 2-year bill and may be on the June 1992 ballot. DECLARATION OF FUTURE AGENDA ITEMS 1. Councilmember Mullen requested an agenda item be sched- uled to direct the Solid Waste Management Board to move ahead with a voluntary styrofoam package elimination ordinance. 2. Councilmember Mullen requested an item be scheduled on a future agenda to discuss Council special workshops for the eco- nomic improvement of the Downtown and North Morro Bay areas. 3. Councilmember Mullen requested an item be scheduled on a future agenda to discuss adding another category to the agenda at the end of the meeting to receive reports from Councilmembers regarding the committees they represent. Mayor Sheetz stated Councilmembers currently have the privilege of placing items on the agenda if they have reports for Council; she does not believe it is necessary to add another category to the Agenda. Councilmember Wuriu said he doubted if there would be reports at every meeting. Councilmember Mullen said there does not have to be reports at every meeting; however, she would like the category added to the Agenda. 4V 4 4'�K•1�12 C•l � �! � � I .1�� V_� f-'��]_� 11;1_�-7 � � C•1��1 w ! �! � Y_� � [�•]_i E9 �!� 9 � v � :3 �1:i- • 4 Mr. Napper recommended Council approve the minutes as submitted. A-2 EXPENDITURE REPORT - AUGUST 1991 Mr. Napper recommended Council approve the Expenditure Report. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 23, 1991 PAGE 3 A-3 STATEMENT OF INVESTMENTS - AUGUST 1991 Mr. Napper recommended Council receive the Statement for file. A-4 ADDITION TO CITY JOB CLASSIFICATION PLAN: RESERVE HARBOR PATROL OFFICER II Mr. Napper recommended Council approve the addition of Reserve Harbor Patrol Officer II to the Morro Bay Job Classification Plan as submitted. A-5 PROCLAMATION DECLARING OCTOBER 1991 THROUGH OCTOBER 1992 AS "YEAR OF THE BAY" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-6 AWARD OF CONTRACT FOR PROJECT NO, PW 90-08. 3-WAY TRAFFIC SIGNAL INSTALLATION AT MAIN STREET/OUINTANA ROAD Mr. Napper recommended Council waive all bid irregularities and award the contract to Whitaker Contractors, Inc., in the amount of $150.646.30. A-7 WATER SUPPLY STATUS REPORT Mr. Napper recommended Council receive the report for file. A-8 AUTHORIZATION AND FUNDING OF STREET LIGHT INSTALLATION AT AZURE AND SANDALWOOD INTERSECTION Mr. Napper recommended Council authorize the installation of a street light at the Azure Street/Sandalwood Avenue intersection; and, allocate $2,700 from the FY 1991-92 Gas Tax Contingency Fund for the project. A-9 PROCLAMATION DECLARING OCTOBER 6-12, 1991 AS "FIRE PREVEN- TION WEEK" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-10 NOTICE OF COMPLETION ON PROJECT NO, PW 91-01, ANNUAL STREET RE -STRIPING PROJECT Mr. Napper recommended Council accept the project as complete, and authorize the City Clerk to file the Notice of Completion. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 23, 1991 PAGE 4 Mr. Napper recommended Council determine the low bid submitted by J.M.S. General Engineering contained substantial bid irregulari- ties given the bidder unfair competitive advantage and is there- fore non -responsive; and, that bid irregularities in the second lowest bid are minor in nature, do not constitute an unfair advantage, and are therefore waived; and, that Council award the contract to R. Baker, Inc., of Arroyo Grande, in the amount of $136,750. A-12 RESOLUTION NO, 105-91 AUTHORIZING RECORDING OF DEED RESTRIC- TION ON SOUTH T-PIER PURSUANT TO REQUIREMENT OF COASTAL COMMISSION PERMIT CONDITIONS OF APPROVAL Mr. Napper recommended Council adopt Resolution No. 105-91. Councilmembers pulled A-1 and A-11 for separate discussion. A-1 CITY COUNCIL MINUTES OF THE SPECIAL MEETING OF SEPTEMBER 5. 1991, AND THE REGULAR MEETING OF SEPTEMBER 9. 1991 Mayor Sheetz stated she will abstain from voting on the minutes because she was not at the last meeting. MOTION: Councilmember Luna moved for the approval of Item A-1. The motion was seconded by Councilmember Mullen and carried with Mayor Sheetz abstaining. (4-0-1) A-11 AWARD OF CONTRACT FOR PROJECT NO, PW 89-10, TWO STORM DRAIN PROJECTS (BALI STREET; MORRO BAY BLVD.) Mr. Nichols stated eight of the nine bids contained irregulari- ties of some sort; however, the bid by low bidder J.M.S. General Engineering contained a number of irregularities including fail- ure to fill out the required List of Subcontractors and Materials Suppliers, which is required by the bid documents. JMS later submitted the information, but supplying the information after the bids are opened is called "bid -shopping" and gives a bidder substantial advantage over bidders who have submitted this infor- mation with their original bid. Gary Johnson, representing J.M.S., stated this information is usually supplied when the contract is awarded. He is bonded and has an "A" rated insurance company. He said he has contacted an attorney who advises him the bid is legal. Ms. Skousen said she did receive a letter from attorney Gerald Weaver who maintains the code is silent on the requirement for material suppliers. She does not agree; she said it is clear J.M.S. engaged in "bid shopping" which is prohibited. Any mate- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 23, 1991 PAGE 5 rials bid over a certain percentage must list suppliers. If the City does not require it of this contractor, the City will be giving J.M.S. an unfair advantage over the other bidders who sub- mitted their suppliers; the company did not comply with the requirements of the bid package. Mr. Johnson said the fact bidders list material suppliers does not mean they will purchase the supplies from those companies. He said this is the only city that has this requirement. Councilmembers questioned whether this item had to be awarded this evening. Mr. Nichols responded the bid specifications state the contract will be awarded within 30 days after bids are opened; Council's next meeting on October 14th is beyond 30 days. Mayor Sheetz stated Council will move on with the Agenda and take this item up later in the evening. MOTION: Councilmember Baker moved for the approval of the con- sent Calendar with the exception of A-1, which was pre- viously approved, and A-11. The motion was seconded by Councilmember Luna and unanimously carried. (5-0) 1.1 I -=I Councilmember Mullen stated she and Councilmember Baker met to make recommendations to Council on the design of banners to be purchased for downtown Christmas decorations. Their selections are indicated in the staff report, and several new banners have been added. She hopes the Chamber, Merchants Association, and Hotel/Motel Association will contribute funds for additional ban- ners; and, she said the Sub -Committee recommends the Mayor write a letter requesting their financial participation. The Sub -Com- mittee recommends Council authorize ordering four extra banners of "The Rock" for the entrances to the City, and three banners each of the eight selected designs. Suedene Nelson, Chamber of Commerce, stated the jars in the vari- ous businesses throughout the City soliciting monetary contribu- tions for Christmas decorations are for the purpose of purchasing lights for the trees outside the businesses. MOTION: Councilmember Wuriu moved the Sub -Committee be com- mended for their hard work, and Council accept their recommendations on the holiday banners and letters by the Mayor requesting civic organizations purchase more banners, too. The motion was seconded by Councilmember Luna and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 23, 1991 PAGE 6 Mayor Sheetz stated since it is 7:00 p.m., Council will consider Public Hearing items at this time. D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 ORDINANCE ESTABLISHING COMPREHENSIVE VESSEL HABITATION (LIVEABOARD) RULES AND REGULATIONS (INTRODUCTION/FIRST READING) Mr. Algert reviewed this item stating Council approved the pro- posed liveaboard ordinance for first reading at their last meet- ing. Since that time, it has been determined specific wording recommended by the Harbor Advisory Board was left out of the final draft of the ordinance. Upon further review, staff recom- mends setting the liveaboard cap at 30 permits rather than the 10% approved at the last meeting. A specific number for the cap will avoid future contention over what constitutes 10% of total berthing. Don Lockwood, member of the Harbor Advisory Board, stated the subject of 30 permits or 10% was discussed by the Board, and their recommendation is 10%. The reason is if new mooring areas are opened in the future, there could be large groups of mooring areas without liveaboards; the only officially -stated reason for allowing liveaboards is the security they provide, according to the State Lands Commission. Robert Richard favored the 10% cap. If the number of boats in the harbor increases from 300 to 450, there is going to be an increase in the amount of commerce on the waterfront. He said there is more to the waterfront than pleasure boats. Mr. Richard also believed the city's inspection of a vessel will be a comment on its seaworthiness and present liability to the City. Roger Ewing was concerned Council changed the schedule of agenda items, and some people wishing to speak on this item will not be here until later. Mayor Sheetz stated the schedule has not been changed; Council always begins Public Hearing items at approxi- mately 7:00 p.m. Mr. Ewing stated Council voted at their last meeting to allow a 10% cap on liveaboards, and it is a mistake now to rescind that action. He encouraged Council to stay with the 10%. Linn Stokes, Morro Bay Marine, asked what the definition is of a liveaboard? Mr. Algert stated the definition is contained in the Ordinance, one who occupies a vessel for four or more days or nights within any seven day period. Mr. Stokes reminded Council of their Mission Statement; he said limiting liveaboards and as- sessing fees for inspection is contrary to the Mission Statement. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 23, 1991 PAGE 7 Lee Mattson objected to the liveaboard permit being assigned to the vessel rather than an individual. Mayor Sheetz stated the permit is for the boat; not the number of people on the boat. Rick Algert added there is only one permit required per vessel. Don Gates, vessel resident, said the boat inspection is a viola- tion of the U.S. Constitution search and seizure laws. Also, the State of California has already determined the City cannot make an inspection on liveaboards. The inspection section should be eliminated from the Ordinance. Eucre Mattson said he had to leave football practice early to come to the meeting to ask Council to allow him to live on his home [vessel]. Paul Lorenzen said the last Harbor Director, Alan Davis, stated in a public meeting he intended to eliminate liveaboards through the leases. He said he owns a mooring in the bay and it can be terminated with 30 days notice. Mr. Lorenzen stated when a lease site is being negotiated, the new leases require the lessee to provide parking for any liveaboards docking at their site, or the equivalent amount of money, which is approximately $4,000. He does not believe a lessee will pay $8,000 to allow two people to live on their boats in his slips. He noted the original ordi- nance proposed liveaboards be eliminated entirely; now they are supposed to be security people. There are other major polluters not regulated by the City. Mr. Bucknell asked if the proposed ordinance is that approved by the Harbor Advisory Board or different? Mr. Algert stated the contents are the same. Larry Shears, liveaboard resident, stated Morro Bay Marina will not have a pump ahead while they are reconstructing on the site. He said there is no other pump ahead except the one at the North T-Pier which is blocked by several boats. Mr. Algert stated there will soon be one at the Fuel Dock; until then, people can call ahead of time and the City will make arrangements to have the pump ahead accessible. Don Lockwood pointed out the Ordinance recommended by the Harbor Advisory Board set the cap on liveaboards at 10% rather than 30 permits. Lee Mattson, liveaboard resident, said the proposed ordinance is always changing and he cannot keep track of it. He said there are a lot of gray areas in the ordinance. Mayor Sheetz closed the hearing to the public and returned the matter to Council. She said the last few years the City has been attempting to develop an ordinance; not change one. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 23, 1991 PAGE 8 Mary Phillips said Council should listen to the people; Morro Bay was a fishing village when she moved here; there are not enough apartments for people to live in; Council is driving people away. Mr. Algert reviewed the history of the Harbor Advisory Board and City Council hearings concerning this ordinance; eleven public hearings have been held over the years, plus numerous workshop and sub -committee meetings. Mayor Sheetz asked about the 30-day cancellation clause in leases. Mr. Algert stated the lease does allow a 30-day cancel- lation notice; however, it is not related to liveaboards. To his knowledge, a liveaboard mooring space has never been cancelled. Mr. Lorenzen hollered from the audience there is an existing ordinance. Councilmember Wuriu stated there has been a lot of talk on this subject; now is the time to act. He agreed the cap should be set at a specific number rather than something that could go up or down. He asked if the number of boats in the harbor increases in the future, could the number of liveaboards be increased? Mr. Algert stated yes, the ordinance can return to Council for amend- ment. Ms. Skousen emphasized if Council sets a 10% cap, there is definite room to argue for additional liveaboard spaces if there are an odd number of boats in the harbor. A specific number leaves no room for argument. Councilmember Mullen suggested a combination of the two; 30 live - aboard permits be allowed now with a provision to allow 10% of any newly -created slips. Councilmember Baker agreed with that concept. Councilmember Luna asked if Mr. Algert compared the liveaboard rate allowed in other harbors? Mr. Algert stated everyone han- dles it differently: Santa Barbara has a 10% cap; Monterey origi- nally had a 10% cap, then increased it to 15%. MOTION: Councilmember Mullen moved Council establish a 30 boat limit on liveaboards, and allow 10% of any slips cre- ated after 01 January 1992 to be liveaboards. The motion was seconded by Councilmember Luna. Ms. Skousen suggested language be added on page 5 of Ordinance No. 407, §15.40.040C, after the words in the first paragraph, " ..eventual 30 permit cap hereinafter defined." as follows: "This cap will be increased as mooring spaces are increased to insure that the permit cap remain at 10% of the total number of lawfully -created mooring spaces in the Harbor." The amendment was accepted by Councilmember Mullen and Councilmember Luna, and the motion carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 23, 1991 PAGE 9 Mayor Sheetz opened the hearing to the public on the amended ordinance. Robert Richard said with the proposed 10% cap and attrition pro- gram set forth in the ordinance, it is clear it will take several years to get down to the 10%. By then it will be the duty of the Harbor Director to keep account of how many facilities there are to which the 10% will apply. The situation will be difficult to track. T.B. Bucknell asked if the amendment applies to slips and moor- ings? Ms. Skousen stated wherever you can legally park a boat. Mayor Sheetz closed the hearing to the public. MOTION: Councilmember Baker moved Ordinance No. 407 be read by title and number only. The motion was seconded by Councilmember Mullen and unanimously carried. (5-0) Mr. Napper read Ordinance No. 407 by title and number only. MOTION: Councilmember Baker moved for approval of introduction and first reading of Ordinance No. 407. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Nichols stated this item is to hear protests on the addi- tional $114,000 it will take to complete the assessment district improvements; no written protests have been received to date. Terry Orton, project engineer, stated the project attorney, Robert M. Haight, Jr., is present to respond to Council ques- tions. He outlined the three actions Council can take this evening: 1) Adopt the resolution approving the assessment if less than 50% of the property owners object to the increased assess- ment; 2) Override the protest by a 2/3rds majority if more than 50% of the property owners object to the increase if Council finds an overriding need for the increase in assessment; or 3) Deny the increase if more than 50% of the owners object to the increase and Council cannot make the overriding finding. If Council denies the increase in assessment, work on the district will stop, outstanding costs paid, and the remainder used to pay - down the bonds. Mr. Orton detailed the increased costs, and reviewed the project history. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 23, 1991 PAGE 10 Mayor Sheetz asked if it is within the realm of possibility any- thing else will increase the costs of this project? Mr. Orton stated the only thing he can think of is if the project actually uncovers buried Indian remains. He has attempted to cover every other possibility in this additional assessment, but there are no guarantees. Councilmember Mullen asked questions with regard to the road design and setbacks. Mr. Nichols stated he needs to review the drawings to refresh his memory; however, the road is being con- structed in the easement acquired by the City. He noted the Price's landscaping does extend into the easement and they will lose that portion of their yard; the road should be at least seven feet away from the edge of their property. Councilmember Luna commented it is difficult to take action with- out seeing the drawings and how the property is going to be affected. Mr. Nichols stated the only item before Council this evening is the supplemental assessment. The project design has already been drawn and approved. Mr. Orton stated no written protests have been received to date; if property owners in the audience wish to protest the supplemen- tal assessment, it must be in writing. Mayor Sheetz opened the hearing to the public for comments. Geraldine Price, Mimosa Street property owner, stated she and her husband wish to go on record in protest of the assessment dis- trict and the supplemental assessment; this project will cost them $30,000. She said the design of the project creates a dan- gerous corner and situation when she backs out of her driveway. She believes the developer should pay for the project since the developer wants to build three houses. Ms. Price does not believe the Indian burial grounds should be disturbed. She said the proposed street is not wide enough and runs too close to her bedroom; make it a turn -around street of 25-30 feet in width. Richard Atchley, Mimosa Street property owner, stated the origi- nal assessment was $167,000, and the property owners are now being asked for an additional $114,000. He asked if there is any money left over, will the property owners receive a refund? Mr. Haight stated the supplemental assessment takes into considera- tion anything that might go wrong; the property owners are sub- ject to uR to an additional $114,000 assessment. If costs are less, property owners will be charged the exact amount. Councilmember Wuriu asked what happens if the additional assess- ment is not enough? Mr. Haight stated if the assessment increases again, the same process taking place this evening will have to be repeated. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 23, 1991 PAGE 11 Mr. Atchley encouraged Council to get more interested in the con- struction of Mimosa Street; this is a City of Morro Bay street they are paying for. Twila Breen, representing property owner Aldridge, Inc., stated she wished she was a developer and lived in Morro Bay. She said her father lived in Morro Bay 15 years before passing away, and he tried to live on Mimosa Street. In fact, he offered to have the street paved at one time, but the Prices would not let him. He had no alternative but to go through the assessment district process. Ms. Breen stated the property owners have followed all the steps required for this assessment district and gave a detailed history of the project. She said the City should have obtained immediate possession of the assessment district; a financial contribution by the City is now justified. At this time, she has not received a financial statement regarding the monies collected and how they have been spent; she still does not have the answers to questions she posed at the August 12th Council meeting. Mayor Sheetz asked if a financial statement is available? Ms. Burt stated she is preparing a trial balance to bring the project up-to-date from its inception. Mr. Orton stated in the past, he has not been required to perform this work for the property owners. Mayor Sheetz said one of the biggest problems in this situation is communication between the property owners. Mr. Nichols stated in his experience with assessment districts, financial statements are not normally provided to the property owners. Staff did not anticipate it would be a necessary service when putting the contract together on this project. Ms. Breen stated the Mimosa Street property owners are paying a heavy price for Morro Bay's first attempt at an assessment dis- trict. Ms. Burt stated Morro Bay has processed several assess- ments districts over the years. Mary Sequiera, property owner on Mimosa Street, said she is not protesting the supplemental assessment. She believes the delays in this project have increased costs. Mary Phillips said Ironwood Avenue connects with Highway 41; it should be 50 feet wide. Chester Amyx, property owner, said most accidents happen on this dirt easement called "Mimosa". He said he is not protesting the supplemental assessment; he is not happy about the increased costs, but will pay it. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 23, 1991 PAGE 12 Mayor Sheetz closed the hearing to the public. Mayor Sheetz stated the realighment presentation by Ms. Price had already been decided at a previous City Council meeting; Council is only acting on the supplemental assessment this evening. Councilmember Luna asked who owns Mimosa Street? Mr. Nichols stated the City has the right to construct improvements and use Mimosa Street as a public right-of-way. Mayor Sheetz reopened the hearing for the purpose of allowing property owners to submit written protests to the supplemental assessment. Geraldine Price submitted a written protest against the supplemental assessment. Mary Sequiera stated the Mimosa Street easement was determined to be for road purposes and public utilities. It has been used as a street for 40 years by everybody. Mayor Sheetz closed the hearing to the public noting one written protest had been received. Mr. Nichols stated since the one protest does not represent a majority of the property owners in the assessment district, it is in order for Council to adopt Res- olution No. 106-91 approving the supplemental engineer's report and confirming the supplemental assessment. MOTION: Councilmember Wuriu moved for the adoption of Resolu- tion No. 106-91. The motion was seconded by Coun- cilmember Baker and carried with Councilmember Luna voting no. (4-1) Council recessed from 8:30 p.m. to 8:43 p.m. Mr. Nichols reviewed the Water Advisory Board recommendation for Council to indicate to the San Luis Obispo County Flood Control and Water Conservation District a tentative non -binding interest in obtaining up to 1,895 acre-feet per year from the proposed Nacimiento Water Project. Council should also indicate to the County this does not represent peak -demand capacity, as County staff has indicated that issue will be considered later in the process of developing the project. At Chairman of the Water Advisory Board Herbert Haley's request, Mr. Nichols read the Board's rationale for their recommendation. Mr. Haley stated their recommendation was made before the manda- tory State Water Project ballot measure issue; it was a unanimous decision by the Board. He said it is unwise to rely on the City's current water supply, quantity, and quality. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 23, 1991 PAGE 13 Mayor Sheetz opened the hearing to the public. Randy Ruff, 485 Shasta, said the Board's recommendation is rea- sonable and well thought-out; he agrees with it. Mary Phillips stated citizens have been paying for State Water for some time. She said in 1974 water from Nacimiento would have cost $10 million, and asked how much it will cost today? Since the State Water Project has been paid for all along, citizens do not have to pay for the entire project. Mayor Sheetz stated there is no answer today for the cost of the Nacimiento project; County staff is trying to work out those fig- ures based on the number of interested agencies. Mayor Sheetz closed the hearing to the public. Councilmember Baker stated he does not agree with the majority position of the Council on State Water; he believes the City's first priority should be State Water. However, he believes Coun- cil should keep all options open and will vote in favor of the Water Advisory Board's recommendation on Nacimiento water. Councilmember Wuriu agreed with Councilmember Baker; he will sup- port the recommendation. The City is in such bad shape regarding water supplies, it is necessary to push for anything we can get. He believes State Water is a more reasonable priority. Councilmember Mullen stated she definitely supports the Water Advisory Board recommendation; however, Council may wish to reconsider the 166 gallons per day planning figure in the General Plan in view of the City's number one priority for supplemental water - conservation. Councilmember Luna commended the Water Advisory Board for their input, and will support their recommendation. Mayor Sheetz said the Water Advisory Board has made a very astute recommendation; she hopes Nacimiento will be able to supply water to Morro Bay within a reasonable period of time. She supports the recommendation for 1,895 acre feet of water per year from Lake Nacimiento. MOTION: Councilmember Luna moved Council authorize the City's tentative, non -binding subscription for Lake Nacimiento water to be 1,895 acre-feet of water per year, and instruct staff to notify the San Luis Obispo County Flood Control .and Water Conservation District accord- ingly. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 23, 1991 PAGE 14 Mr. Nichols reviewed the Streets and Trees Committee recommenda- tion to install advance warning wavy lines at the Napa Avenue/ Morro Bay Blvd. and Piney Way/Morro Bay Blvd. intersections. Council requested staff provide alternative advance warning devices for their consideration. He discussed "rumble strips", Botts Dots, and an overhead flashing red light. Mr. Nichols stated the ultimate solution is installation of traffic signals in accordance with the City's Circulation Element; however, this solution is very expensive. Mayor Sheetz asked if the stop signs could be enlarged? Mr. Nichols stated he could order a 48" sign for Napa Avenue; 48" signs are typical for freeways. Mayor Sheetz said she is dis- tracted by the trees at this intersection. Mayor Sheetz asked if there have been any accidents at these intersections? Chief Howell stated he is not aware of any. Councilmember Baker was in favor of doing nothing but willing to go along with installing larger stop signs. Councilmember Mullen asked if a count has been taken of the num- ber of people going through the intersection without stopping? Mr. Nichols stated no; he believes there is a citation record of approximately two per month at each intersection. Councilmember Mullen believes there is a substantial problem at the Piney Way intersection westbound, and something people can "feel" is needed to call their attention to the stop sign. MOTION: Councilmember Baker moved Council take no action on this matter. The motion died due to lack of a second. Councilmember Mullen requested action be deferred for 45 days to allow her to survey the intersection for violations. No staff time will be required other than looking at the numbers devel- oped. Council concurred. C. k Do Mr. Mapper stated the Governor has formed an Interagency Council on Growth Management; a questionnaire has been submitted to MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 23, 1991 PAGE 15 cities and counties for response on this subject. This question- naire has been forwarded to the City through the County Area Coordinating Council with their response. A response to the question has been formulated by staff generally in line with the Area Councils; however, it seeks a stronger State role in the matters of prime agriculture lands, wetlands and riparian habi- tat, environmentally -sensitive and wildlife areas, and scenic/ landmark areas. The Planning Commission has reviewed and concurs in this recommendation. MOTION: Councilmember Baker moved Council authorize the Mayor to send the proposed letter as Morro Bay's response to the Governor's Interagency Council on Growth Manage- ment. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) _• _ •, hq_z_ •_ •; • _� •� • _e. Chief Howell reviewed this item stating a Steering Committee has been formed that represents most of the entities involved with the investigation, care, and disposition of children that may be at risk. A one -day conference is planned for networking of the agencies with hopes to streamline the services for at -risk chil- dren. The Juvenile Justice Commission is seeking contributions to help off -set the cost of the conference. Chief Howell believes the conference will have some merit, although not a great deal can be accomplished in one day. He will send his two employees responsible for child abuse cases to the conference. Mr. Napper stated Council can contribute to the program through the General Fund balance; no budgeted monies exist for this purpose. Councilmember Baker asked if there are additional expenses to sending the two police employees other than the contribution? Chief Howell did not know; he assumed lunch will be extra. MOTION: Councilmember Baker moved the City co-sponsor the Chil- dren -At -Risk Conference in the amount of $500 from the General Fund Balance. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) Councilmember Luna stated he would like to receive a follow-up report after the conference on what was achieved. C-3 RATIFICATION OF PURCHASE OF USED FIRE LADDER TRUCK (1983 PIERCE ARROW 75 FT. AERIAL/QUINT) Fire Chief Jeff Jones reviewed this item noting Council previ- ously appropriated $185,000 towards the purchase of a ladder truck. A 1983 Pierce Arrow 75' ladder truck has been located in MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 23, 1991 PAGE 16 the Milwaukie, Oregon Fire Department and a City bid submitted for $180,250.03. The bid was accepted by the Milwaukie City Council on September 17th. The truck has been inspected and determined sufficient for Morro Bay's needs. He recommended Council approve the purchase. Mayor Sheetz asked if there is anything on the new engine that needs retrofitting for the City's needs? Chief Jones stated no; he noted the truck recently passed stringent UL certification on safety. Councilmember Baker was in favor of the purchase; his only regret is Chief Zerr is not here to see it take place. He said it is an ideal unit, and the purchase was handled admirably by Chief Jones. MOTION: Councilmember Baker moved Council approve and ratify Administration's purchase of 1983 Pierce Arrow 75' lad- der/quint truck from the Milwaukie (Oregon) Fire Department in the amount of $180,250.03. The motion was seconded by Councilmember Luna and unanimously carried. (5-0) C-4 RESOLUTION NO, 107-91 EXTENDING TIME (60 DAYS) ON LEASE DENTIAL USES (dba ASSOCIATED PACIFIC CONSTRUCTORS: 495 Mr. Algert stated extensions are needed on these leases in order to allow time for the development permit to be approved by the Coastal Commission. He recommended Council approval. MOTION: Mayor Sheetz moved for the adoption of Resolution No. 107-91. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mr. Nichols stated he understood this matter tonight; one of the member have left the meeting. Council was not going to act on parties to the bid and a staff Brent Knowles stated he is present to represent JMS General Engineering. Council asked Mr. Nichols to proceed with the item. Mr. Nichols stated the issue is not with JMS or their capabilities to perform the work. The issue is the City has requested certain informa- tion be submitted as part of the bid and JMS failed to provide it. The second bidder did provide the information. The City has the legal right to request certain information when soliciting a MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 23, 1991 PAGE 17 bid. He believes the City has an ethical obligation to the sec- ond low bidder who did provide the information. Mayor Sheetz asked if all other bidders submitted the required information? Mr. Nichols stated eight of the nine bidders had irregularities. Councilmember Baker asked why the City has the requirement in the bid for the bidder to list the material providers? Mr. Nichols detailed an experience several years ago where substandard mate- rial was provided. The list of providers enables him to deter- mine the type/brand of material being used. Ms. Skousen stated it is a legal problem, not an ethical one. The Public Contractors Code is written so one contractor does not have unfair advantage over another. Mr. Knowles stated a supplier has the ability to switch material as long as they meet the specifications. Mr. Nichols stated if Council waives the bid irregularities and awards the bid to JMS, the second low bidder, R. Baker Construc- tion, can sue the City for lost wages. Mayor Sheetz said she is tired of someone suing the City every time a contract is awarded. She prefers the City re -bid this project to avoid a suit on either side. Mr. Nichols stated it clearly states in writing what the bid specifications are. The only reason for the errors is the bidder is not reading the material. The project can be re -bid; however, everyone knows what everyone else bid, the bids may increase, and the projects will be delayed until after the next rainy season. MOTION: Councilmember Baker moved to reject all bids on Project No. PW 89-10 and that the project be re -bid. The motion was seconded by Councilmember Wuriu and carried with Councilmember Mullen voting no. (4-1) MOTION: Councilmember Baker moved Mr. Nichols prepare a report as to why he needs materials supplier information. The motion was seconded by Councilmember Wuriu. Councilmember Mullen does not agree with the motion; she believes the contractors are not reading the bid specifications. Let Councilmember Baker look at the City's bid process on his own. The motion failed on the following vote: AYES: Baker, Wuriu NOES: Luna, Mullen, Sheetz MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 23, 1991 PAGE 18 E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956 9(A)CAYUCOS SANITARY DISTRICT V. CITY OF MORRO BAY, SAN LUIS OBISPO SUPERIOR COURT, CASE NO. 70420 MOTION: Councilmember Luna moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmem- ber Baker and unanimously carried. (5-0) Mayor Sheetz read the Closed Session statement. The meeting adjourned to Closed Session at 9:48 p.m. and returned to regular session at 10:11 p.m. F. MOTION: Councilmember Wuriu moved the meeting be adjourned. The motion was seconded by Councilmember Luna and unan- imously carried. (5-0) The meeting adjourned at 10:11 p.m. Recorded by: ARDITH DAVIS City Clerk 0 0 0 0 C=TY OF MOf2I2O BAY NOT = C E O F SPEC = AL MEET = NG NOTICE IS HEREBY GIVEN that a Special Meeting of the Morro Bay City Council, has been called to be held on Thursday, September 5, 1991 at 5:30 p.m. in the City Hall Conference Room, 595 Harbor Street, Morro Bay, CA. Council will immediate adjourn to Closed Session in accordance with Government Code § 54956.9(a), pending litigation, in the matter of Cayucos Sanitary District vs. City of Morro Bay, San Luis Obispo Superior Court, Case No. 70420. DATED: September 3, 1991 ROSE MARIE SHEETZ, Mayor City of Morro Bay, California MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - SEPTEMBER 5, 1991 CITY HALL CONFERENCE ROOM - 5:30 P.M. Mayor Sheetz called the meeting to order at 5:30 p.m. F� PRESENT: Rose Marie Sheetz John Baker Ben Luna Susan Mullen Tom Wuriu ABSENT: None STAFF: Gary Napper Judy Skousen Nick Nichols PUBLIC COMMENT CLOSEDNone E. ] Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Public Works Dir. MOTION: Councilmember Luna moved the meeting adjourn to Closed Session. The motion was seconded by Councilmember Mullen and unanimously carried. (5-0) Mayor Sheetz announced Council is adjourning to Closed Session in accordance with Government Code §54956.9(a), pending litigation in the matter of Cayucos Sanitary District v. City of Morro Bay, Case No. 70420, Superior Court; and Frank St, De Morro Bay. The meeting adjourned to Closed Session at 5:31 p.m. and returned to regular session at 6:50 p.m. F. ADJOURNMENT MOTION: Councilmember Luna moved the meeting be adjourned. The motion was seconded by Councilmember Baker and unani- mously carried. (5-0) The meeting adjourned at 6:50 p.m. Recorded by:4A ►._lot r &�/� %, / I 9 / City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay Is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING - SEPTEMBER 9, 1991 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 a0doss 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 SPECIAL MEETING OF AUGUST 20, 1991; THE REGULAR MEETING OF AUGUST 26, 1991; AND THE SPECIAL MEETING OF AUGUST 29, 1991 A-2 ACCEPTANCE OF RESIGNATION FROM THE DOWNTOWN SIDEWALK SALES COMMITTEE (CARPENTER) A-3 PROCLAMATION DECLARING OCTOBER 7-11, 1991 AS "MORRO BAY DIAL -A -RIDE WEEK" A-4 PROCLAMATION DECLARING SEPTEMBER 21-OCTOBER 14, 1991 AS "COASTWEEKS" AND SEPTEMBER 21ST AS "ADOPT -A -BEACH COASTAL CLEAN-UP DAY" A-5 AWARD OF CONTRACT FOR REHABILITATION OF CITY NORTH T-PIER (PROJECT PW91-10) A-6 STATUS REPORT ON CITY WATER SUPPLY A-7 PROCLAMATION DECLARING SEPTEMBER 23-27, 1991 AS "RIDESHARE WEEK" A-8 PROCLAMATION DECLARING SEPTEMBER-DECEMBER 1991 AS "GOOD NEIGHBOR MONTHS" A-9 ACCEPTANCE OF RESIGNATION FROM THE STREETS AND TREES COMMITTEE (POPPENBERG) B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 406 AMENDING CITY WATER EQUIVALENCY TABLE TO DISTINGUISH AVERAGE WATER USE RATE FOR MOTELS WITH AND WITHOUT ON -SITE MANAGER'S QUARTERS (SECOND READING/ADOPTION) B-2 COUNCIL SUB -COMMITTEE REPORT ON NEW HOLIDAY BANNER DESIGNS PULLED C. NEW BUSINESS C-1 SELECTION OF VOTING DELEGATES TO LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE (OCTOBER 1991) C-2 DESIGNATION OF CITY COUNCIL REPRESENTATIVE(S) TO ATTEND MINERALS MANAGEMENT SERVICE HEARINGS ON PROPOSED OFFSHORE OIL AND GAS LEASING PROGRAM, 1992-1997 C-3 REPORT ON STRATEGIES AND PROGRESS OF ECONOMIC DEVELOPMENT ENHANCEMENTS D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 ORDINANCE NO. 407 ESTABLISHING COMPREHENSIVE VESSEL HABITATION (LIVEABOARD) RULES AND REGULATIONS (INTRODUCTION/FIRST READING) D-2 REVIEW OF CITY'S INFORMAL SPORTS/AQUATICS PROGRAM, AND DETERMINATION OF CONTINUANCE REQUIRING SUPPLEMENTAL FUNDING SUBSIDY D-3 DETERMINATION OF COMPLIANCE OF SONIC CABLE TELEVISION RELATIVE TO MUNICIPAL CABLE TELEVISION ORDINANCE AND FRANCHISE AGREEMENT D-4 CONTINUED RECONSIDERATION OF WATER RATIONING LEVEL FOR MOBILEHOME PARKS (RESOLUTION NO. 104-91) D-5 CONTINUED HEARING ON FINAL PROJECT COSTS TO ABATE NUISANCE OF ILLEGAL EXCAVATION AT 2590 LAUREL STREET, AND AUTHORIZATION TO LEVY NUISANCE ABATEMENT LIEN AND COLLECT PROJECT EXPENSES D-6 REPORT ON SCOPE AND FUNDING OF PILOT PROGRAM FOR RECLAMATION OF TREATMENT PLANT WASTEWATER EFFLUENT (GALVANIC AGGLUTINATION PROCESS; DR. JOHN ALEXANDER) 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 - SEPTEMBER 9, 1991 VETERANS MEMORIAL HALL - 6:00 P.M. Vice Mayor Luna called the meeting to order at 6:00 p.m. PRESENT: Ben Luna John Baker Susan Mullen Tom Wuriu ABSENT: Rose Marie Sheetz STAFF: Gary Napper Judy Skousen Rick Algert Louise Burt Ardith Davis William Farrel Andrea Lueker Nick Nichols Steve Wolter Vice Mayor Councilmember Councilmember Councilmember Mayor City Administrator City Attorney Harbor Director Finance Director City Clerk Community Dev. Dir. Rec. Coordinator Public Works Dir. Rec. & Parks Dir. Councilmember Baker gave the invocation and led the Pledge of Allegiance. Vice Mayor Luna announced today is Councilmember Mullen's Birth- day; everyone sang "Happy Birthday" to her. R F154{W6l•13 vLa:Y_V None None Mr. Napper recommended Council approve the minutes as submitted. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 9, 1991 PAGE 2 A-2 ACCEPTANCE OF RESIGNATION FROM THE DOWNTOWN SIDEWALK SALES COMMITTEE (CARPENTER) Mr. Napper recommended Council accept Mr. Carpenter's resigna- tion, and instruct staff not to advertise the vacancy but monitor the necessity of having a Downtown Sidewalk Sales Committee for possible disbandment by ordinance effective January 1992. A-3 PROCLAMATION DECLARING OCTOBER 7-11, 1991 AS "MORRO BAY DIAL -A -RIDE WEEK" Mr. Napper recommended Council authorize the Vice Mayor to sign the Proclamation. A-4 PROCLAMATION DECLARING SEPTEMBER 21-OCTOBER 14, 1991 AS "COASTWEEKS" AND SEPTEMBER 21ST AS "ADOPT -A -BEACH COASTAL CLEAN-UP DAY" Mr. Napper recommended Council authorize the Vice Mayor to sign the Proclamation. A-5 AWARD OF CONTRACT FOR REHABILITATION OF CITY NORTH T-PIER (PROJECT PW91-101 Mr. Napper recommended Council waive the bid irregularity and award the Project to Associated Pacific Constructors, Inc., in the amount of $196,276.28. A-6 STATUS REPORT ON CITY WATER SUPPLY Mr. Napper recommended Council receive the report for file. A-7 PROCLAMATION DECLARING SEPTEMBER 23-27. 1991 AS "RIDESHARE WEEK" Mr. Napper recommended Council authorize the Vice Mayor to sign the Proclamation. A-8 PROCLAMATION DECLARING SEPTEMBER-DECEMBER 1991 AS "GOOD NEIGHBOR MONTHS" Mr. Napper recommended Council authorize the Vice Mayor to sign the Proclamation. A-9 ACCEPTANCE OF RESIGNATION FROM THE STREETS AND TREES COMMITTEE (POPPENBERG) Mr. Napper recommended Council accept Mr. Poppenberg's resigna- tion, and authorize staff to advertise the position. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 9, 1991 PAGE 3 MOTION: Councilmember Wuriu moved for the approval of the Con- sent Calendar. The motion was seconded by Councilmem- ber Mullen and unanimously carried. (4-0) PRESENTATION: PROCLAMATION DECLARING SEPTEMBER-DECEMBER 1991 AS "GOOD NEIGHBOR MONTHS" TO NEIGHBORS HELPING Amy Holland from Neighbors Helping Neighbors was present and received the Proclamation from Vice Mayor Luna. Mr. Napper stated the Ordinance will differentiate water equiva- lencies between motels with and without on -site manager's quar- ters; if adopted this evening, the Ordinance will go into effect October 9th. MOTION: Councilmember Baker moved Ordinance No. 406 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) Mr. Napper read Ordinance No. 406 by title and number only. MOTION: Councilmember Baker moved for the adoption of the sec- ond and final reading of Ordinance No. 406. The motion was seconded by Vice Mayor Luna and unanimously carried. (4-0) SHINFUMMER75WITM-9 ;_ail •� WED) � - - -- ---- Mr. Napper said each year, cities are asked to a designate dele- gate and alternate delegate to vote on resolutions regarding leg- islative policy issues at the League of California Cities Annual Conference. So far, no Councilmembers have made reservations to attend the Conference. Two Department Heads will be attending, but both have panel or committee responsibilities on the day of the General Business Session. Elected officials are the pre- ferred delegates. Councilmembers discussed this matter with questions as to when the resolutions are received. Mr. Napper stated they are usually MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 9, 1991 PAGE 4 sent two weeks before the Conference, which does not allow staff the opportunity to schedule the resolutions for Council agenda and direction to the voting delegate. He said as soon as they arrive, he will make copies for Council and Councilmembers can individually contact the delegate and advise of their voting preferences. Councilmember Baker volunteered attempt to make arrangements t Napper suggested Council appoint gate, and a staff person as the the matter and decide who can Councilmember Baker is unable to as the voting delegate; he will o attend the Conference. Mr. Councilmember Baker as the dele- alternate. Staff will discuss attend the business session if be there. MOTION: Councilmember Wuriu moved Councilmember Baker be appointed as the City's voting Delegate to the League of California Cities Annual Conference; and, a member of staff be appointed as the Alternate Delegate. The motion was seconded by Councilmember Mullen and unani- mously carried. (4-0) Councilmember Mullen said a hearing was recently held before the California Environmental Protection Agency for comments on the offshore leasing program; another hearing will be held before the Board of Supervisors, and one in Santa Maria on September 18th. She stated the subject is critical to the City, and a spokesper- son should be designated to relay Morro Bay's opposition to the latest Federal Plan to lease tracts off Morro Bay for offshore oil and gas. MOTION: Councilmember Wuriu moved Councilmember Mullen be appointed as the Morro Bay spokesperson to the offshore leasing program hearings. The motion was seconded by Vice Mayor Luna and unanimously carried. (4-0) C-3 REPORT ON STRATEGIES AND PROGRESS OF ECONOMIC DEVELOPMENT Mr. Farrel stated after presentation of the Steve Nukes Economic Development report, Council directed steps be taken to implement various recommendations in the report. His staff report contains a list of the recommendations and possible City action to imple- ment them and/or action already taken. In order to support the actions, Mr. Farrel said the City could either make the improve- ments incrementally, take bold action by forming a redevelopment district, or enter into a joint venture with the business commu- nity. He suggested perhaps a committee of community members from MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 9, 1991 PAGE 5 the public and private sector be formed to review the list of possibilities and make recommendations. Councilmember Luna appreciated the progress report; he was con- cerned the Nukes study would just be put on the shelf after com- pleted. He said the volunteer program is a good idea with every- one helping each other, and would like to focus on that. Councilmember Mullen suggested with undergrounding of utilities on Morro Bay Blvd., this may be a good time to consider an assessment district for improvements in the area. She did not, however, want another study done. Councilmember Mullen believes the City has enough information available on what to do in the downtown area. She is concerned the Nukes report contains infor- mation concerning improvements that may come about if the Williams Brothers shopping center is built; it may be the trolley mentioned in the Nukes report will not be a part of that develop- ment. She suggested an "Adopt the Downtown" program with some minor painting, creative trash bins, etc. Councilmember Wuriu agreed with the comments. He stated any pro- gram developed to stimulate or improve the business climate and general appearance of the downtown business area will need cen- tral planning and coordinating; perhaps, an overall general plan that these things fit into. Councilmember Baker said the entrance to the City is not well marked. He asked if there has been progress in getting CalTrans to install signs indicating where Morro Bay is? Mr. Farrel stated Mayor Sheetz has been talking to CalTrans; she will report to Council when she has heard from them. Mr. Napper commented CalTrans will probably indicate Morro Bay needs to submit an overall plan to the Coastal Commission. Vice Mayor Luna agreed with Councilmember Wuriu if the City is going to do something in downtown, there needs to be a well thought-out plan involving the Chamber of Commerce, business own- ers, and the City. Councilmember Mullen suggested a sub -commit- tee of the Council work with the Chamber and business owners. All Councilmembers were interested in working on this item; teams of Councilmembers Baker and Mullen, and Councilmember Wuriu and Vice Mayor Luna were formed to meet and discuss the various opportunities for downtown economic enhancement. Mr. Algert stated the tidelands in Morro Bay are owned by the State of California, and granted to the City of Morro Bay in MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 9, 1991 PAGE 6 trust through legislation. Since 1960, the State Lands Commis- sion has operated under a policy that private residential use is not permitted in these areas. Also, the Regional Water Quality Control Board (RWQCB) has identified seven sources of pollution in the Bay, one of which is people who live on their boats. Mr. Algert noted the City's current ordinance regulating liveaboards is unenforceable, and a comprehensive overhaul was undertaken. Mr. Algert stated the Ordinance presented to Council has been reviewed by the Harbor Advisory Board and differs from the Board's recommendation on two issues. One is the $249 fee staff is recommending be charged to process a liveaboard permit appli- cation. The Harbor Advisory Board believes the fee should be refunded if the applicant does not qualify for a permit. Staff disagrees due to the significant staff time and city expense involved in inspection of the boat and processing the permit. He also noted the fee could be reduced if, after a year's experi- ence, it is determined actual staff time does not warrant a $249 fee. He said annual inspections and permit renewal thereafter will only be $50. The other item is the number of liveaboard permits to be allowed in the Bay and achieved though attrition. The Harbor Advisory Board believes a cap of 10%, or 30 boats, should be allowed to remain in the Bay. Staff recommends a 5% cap, or 15 boats. Mr. Algert stated when staff asked the State Lands Commission if 60 liveaboards could be allowed, their response was "no way"; they might accept 3%-5% if they believe the boats will provide secu- rity benefits for the harbor. Vice Mayor Luna asked if an applicant does not qualify after pay- ing his fee, will he have the opportunity to cure the problem and come back for approval? Mr. Algert stated yes, a 90-day window period is given for applicants to qualify. Vice Mayor Luna suggested specific language be in the Ordinance regarding the opportunity to re -qualify for a permit if the first inspection fails. He asked what are the other sources of bacte- ria found in the Bay besides the liveaboards? Mr. Algert said one site was the Morro Bay Aquarium, and another the wastewater treatment plant; the City was also required to chlorinate the wastewater effluent from the ocean outfall pipeline in Estero Bay. Councilmembers asked various questions to which Mr. Algert responded. Councilmember Mullen asked what the difference is between the initial $249 fee and the annual $50 for inspection? Mr. Algert stated the annual inspection should be accomplished in h hour; also, there is a considerable amount of initial paper- work. Mr. Algert noted problems will have to be worked out as the Ordinance is enforced; he is sure the Ordinance does not cover every eventuality. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 9, 1991 PAGE 7 Ms. Skousen stated the fee is to pay for the City's costs in issuing permits and for doing inspections. If the applicants are not charged, the general taxpayer will pay for it which could be construed as a gift of public funds. Councilmember Mullen asked about the 5% limit suggested by staff, and the 10% limit which is standard in other harbors? Mr. Algert stated the cap on number of liveaboards is arrived at through negotiation with the State Lands Commission. Councilmember Mullen asked how many liveaboards are in the harbor currently? Mr. Algert estimated 30 to 60. Vice Mayor Luna opened the hearing to the public for comments. Don Lockwood, Harbor Advisory Board member, stated an applicant has 120 days to qualify for a permit once his application is received. If the applicant does not qualify, someone else gets the permit, but he remains at the top of the list. Mr. Lockwood stated the directive from the RWQCB was to regulate liveaboards and address pollution control; they did not say to reduce the number of liveaboards in the Bay. He believes the Ordinance does what is required by the RWQCB. Mr. Lockwood stated the State Lands Commission is the agency requiring the 5% cap, and he believes staff people have changed at the State Lands Commission and they are no longer so rigid. He said there is a 10% cap in most harbors today. He encouraged Council set a 10% cap on live- aboards. Councilmember Mullen asked if he supports the $249 fee? Mr. Lockwood stated the Harbor Director is looking at what his actual costs are. The fee should be taken out of the Ordinance and placed in the Master Fee Schedule and reviewed at a later date. He agrees the fee should be non-refundable. Paul Cueny, Harbor Advisory Board member, stated he agrees with Mr. Lockwood's comments; a 10% cap is more appropriate. Paul Lorenzen stated a RWQCB letter makes it clear they only have enforcement powers for waters of the State of California; Morro Bay is mandated by the State to enforce water quality control regulations. He said it does not make sense the current Ordi- nance is unenforceable; it should be changed instead of creating a new one. Mr. Lorenzen said the only time shellfish have been in danger from pollution is after it rains. He said the Coast Guard performs boat inspections for free; use them and reduce the fee. Roger Ewing read the City's Mission Statement regarding quality of life. He believes the liveaboard people abide by it, and spoke of the many benefits liveaboards provide to the community in their care of the Bay. The City should do what it can to assist them; adhere to the 10% cap. MINUTES REGULAR PAGE 8 - MORRO BAY CITY COUNCIL MEETING - 9, 1991 Chris Buckley, Morro Bay resident, does not believe the State can say whether or not a person can live aboard their boat. He knows of no instance where someone has been convicted for living on their boat. He discussed the pollution in the Bay after a rain- fall. He disagreed with trying to control the pollution in the Bay by setting a percentage of liveaboards allowed. The City does not really know where pollution comes from or who causes it. Lee Falkenstern, liveaboard resident for 10 years, emphasized the security benefits of liveaboards, and said 10% is a minimal amount of security. He discussed the help liveaboards provide during storms. He said a 10% cap on liveaboards will do no harm; liveaboard people are very conscientious and do not pollute the Bay. Ann Freeman, 785 Cabrillo, said liveaboards are good neighbors. Council should do what they can to make sure they are allowed to continue living on boats; they are guardians of the harbor and nice to have around. Robert Richard, liveaboard resident, said he operates a marine repair business in Morro Bay. He stressed liveaboards consist of avid and educated boaters. Boaters in general are highly unedu- cated and cause a great deal of pollution in the ocean. Nancy Bast stated said liveaboards are the most environmentally conscious people in town. She expanded on their activities which benefit the community. She addressed the proposed fee and stated the Planning Department spends hundreds of hours processing development permits through the planning process, and the City does it as a public service. She resents the inspection fee. Lee Mattson announced he will reserve comment for the next opportunity. Roxie Tacket said she worked 34 years in the Coast Guard Auxil- iary and has inspected many boats; it is a free service. She said it is against the law to have a toilet on a boat that releases into the ocean. The Auxiliary would be happy to inspect for free. Vice Mayor Luna closed the hearing to the public and returned the matter to Council. Vice Mayor Luna stated he finds it hard to support a 5% cap on liveaboards lacking evidence they cause pollution. He believes the City should give the liveabord population the opportunity to be environmentally sensitive. He asked if the City could be sub- ject to litigation if it allows the 10$? Ms. Skousen said the Department of Boating and Waterways, the Regional Water Quality Control Board, and the State Lands Commission will review the MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 9, 1991 PAGE 9 Ordinance. If it does not please one of those agencies, the City will hear about it. Vice Mayor Luna asked about the free Coast Guard inspections. Mr. Algert said the Coast Guard will not inspect the boat; there may be a Coast Guard Auxiliary that performs the service. He believes if the City adopts the regulations, it is the City's responsibility to enforce them and conduct the inspection. Vice Mayor Luna asked if it would be more cost effective to con- tract for the inspections rather than having staff do them? Mr. Algert stated most alternatives had been discussed. He noted there is more to it than just inspecting a holding tank. Councilmember Mullen asked if the State Lands Commission made findings for their determination residences not be allowed on tidelands? Ms. Skousen stated it is State policy; the lands and harbor belong to the public and are not appropriate for private residences, similar to the laws that apply to national forests. Mr. Algert stated there is also an Attorney General's opinion made in the 1970s that stated residential uses of public lands is a private taking of the lands. Councilmember Mullen said she will support a 10% cap, and she believes a fee should be charged for permit processing and inspection of boats. She asked if there are any other governmen- tal requirements for boat inspections besides this one? Mr. Algert was not aware of any; he noted the Coast Guard can board a vessel at any time. Councilmember Mullen asked if the Coast Guard Auxiliary came for- ward with a free program, could it be negotiated? Ms. Skousen said the City is going to be enforcing the Ordinance, and the employees documenting the inspection may have to be witnesses in any legal action; it is important those individuals be under City jurisdiction. Councilmember Wuriu also supports the 10% cap. He noted one of the public comments that builders and developers spend a lot of free staff time with the Planning Department. He asked if there are charges for permit processing in that Department? Mr. Napper stated definitely; there is often dialogue across the counter which is not charged to a developer, but this will also be the case with the liveaboard ordinance. The charges are incurred when an application for permit is filed. Councilmember Baker also agreed with the 10% cap. He asked if there is a time limit by when the liveaboards have to be at the 10% limit? Mr. Algert stated no; for every two permits avail- able, the City will only re -issue one, thereby reducing the num- ber of liveaboards through attrition. It will probably take a number of years. • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 9, 1991 PAGE 10 MOTION: Vice Mayor Luna moved Ordinance No. 407 be amended to set a 10$ cap on liveaboards instead of 5%. The motion was seconded by Councilmember Baker and unanimously carried. (4-0) Vice Mayor Luna opened the hearing to the public on the amended ordinance. Paul Lorenzen said with 300 boats in the bay, the liveaboards are at the 10% limit now. He is not convinced the RWQCB mandated the City to enforce this ordinance. He also does not believe it is legal to require a telephone and radio onboard for security purposes. Mary Bradley was concerned prejudice could be applied in allocat- ing the permits. She suggested a back-up inspection by the Coast Guard if an applicant does not pass with the City. J.B. Bucknell asked if the City assumes liability by inspecting a boat? Ms. Skousen stated the City will be inspecting to deter- mine whether the boat complies with the Ordinance; not whether or not the boat is safe. Curtis Reynolds, liveaboard resident since 1985, objected to the inspection fee; he does not think it costs $249 to look at a toi- let, radio and telephone. Randy Ruff, 485 Shasta, asked what the City's authority is to adopt this Ordinance? Ms. Skousen stated the tidelands are owned by the State Lands Commission and held in trust by the City of Morro Bay; the State Government Code sets forth the police powers of the City. Lee Mattson asked if the permit is for the vessel or occupancy of the vessel? Mr. Algert stated the permit is for the vessel. Duffy Jolley also wanted an accounting of how the City came up with $249 for inspection fees; it is an excessive fee structure. Chris Buckley discussed a system in Avalon whereby they place a dye in holding tanks. If any of the dye is released in the har- bor, it means the boats are emptying their toilets in the water and the offending boat is cited. He said this Ordinance is being adopted on the premise that by limiting the number of liveaboards in the harbor, pollution will be controlled. It won't; the Ordi- nance is not worthwhile and is self-defeating. Vice Mayor Luna closed the hearing to the public. Vice Mayor Luna asked if the fees will return at a later date for adoption? Mr. Algert stated yes; staff will also review actual MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 9, 1991 PAGE 11 costs after one year's experience with the Ordinance. State law requires a refund if the City collects fees in excess of actual costs. Vice Mayor Luna stated the Ordinance is new and there are bound to be problems which have to be worked out. However, he believes the Ordinance is in the best interests of the marine environment, and it is a good time to enact it. MOTION: Vice Mayor Luna moved Ordinance No. 407 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) Mr. Napper read Ordinance No. 407 by title and number only. MOTION: Councilmember Baker moved for approval of the introduc- tion and first reading of Ordinance No. 407. The motion was seconded by Councilmember Wuriu. Councilmember Mullen asked where the requirement for a telephone and radio comes from? Mr. Algert stated the State Lands Commis- sion's initial response is they will only allow liveaboards for security purposes; the liveaboards must be able to communicate with security response techniques to validate their presence for security reasons. Councilmember Mullen stated the water quality aspects of the Ordinance are minor compared to the edict from the State Lands Commission the harbor not be used for residential purposes. The motion was and unanimously carried. (4-0) Council recessed from 8:05 p.m. to 8:15 p.m. DETERMINATION \ _ _ \ _ S \REQUIRING -- EY - - FUNDING SUBSIDY Andrea Lueker, Recreation Coordinator, reviewed the background on this item and the informal sports program as it currently exists. Mr. Wolter amplified on the City's efforts to work with the lap swimmers and the School District. He said the School District is basically unresponsive to City efforts to enter into an Agree- ment. He noted the City has been operating the lap swim program at a deficit for at least nine months; indirect costs are not being recovered. It is City policy the programs recover costs through fees. Mr. Wolter stated there are no General Fund Con- tingencies to augment this account, and it would be setting a dangerous precedent to supplement this program; many other spe- cial interest groups will request similar reductions in fees. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 9, 1991 PAGE 12 Mr. Wolter recommended Council discontinue open -gym volleyball and the lap swimming program as currently constituted; and, authorize the continuance of open -gym basketball and water aero- bics but reduce lap swimming to a Monday through Saturday morning program only. Councilmember Wuriu stated he received a call from a participant in the volleyball program who asked if the participants are will- ing to pay for cost -recovery of the program, could the City keep it operating? Mr. Wolter stated yes; the Department can operate any program at what it costs the City. Vice Mayor Luna said he understood showers at the pool were shut off, and asked why fees were not rolled back commensurate with the cut -back in water use? Mr. Wolter stated the School District maintains they already subsidize 50% of the pool cost. Vice Mayor Luna asked about staff's indirect costs. Mr. Wolter said it is Council policy to try to recover costs, which include staff time, workers compensation, insurance, etc. He noted right now in the lap swim program, the City is not even recovering direct costs of operation, much less indirect costs. Vice Mayor Luna asked if a School District representative was at the meeting? Mr. Wolter said he did not see anyone; they had been advised of the meeting and planned to attend. Councilmember Mullen stated every time the lap swim fees go up, the participation goes down. She asked if there has been an attempt to look at all programs and re -prioritize them? Mr. Wolter stated he is trying to run a business within a governmen- tal structure. Sometimes programs need to be offered that are "lost leaders"; programs offered but not necessarily well attended. City policy does not have the flexibility for that. Councilmember Mullen stated she is concerned these are program that serve local people, and they are being priced out of partic- ipation. Something needs to be done to get people to return to the programs; give them a "free week" like Dial -a -Ride does. Councilmember Wuriu asked what the rationale was for Council pol- icy recreation programs must be self-sufficient? Mr. Wolter stated Proposition 13 had just been passed by the voters; the basic premise is if the Department is going to offer programs, it has to charge whatever it costs for the program. Vice Mayor Luna was in favor of reverting back to the previous 20-pass book program. Mr. Wolter discussed this discontinued program and the problems it created. Councilmember Baker noted Mr. Wolter's statement most cities have similar programs; he asked if most cities charge fees similar to MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 9, 1991 PAGE 13 ours? Mr. Wolter reviewed the different uses in various cities and costs incurred. Vice Mayor Luna opened the hearing to the public for comments. Norma Vaughn stated the pool has been kept open for lap swimmers but it is not affordable. She said the evening lap swimmers never volunteer for pool duty. She favored the pass -book pro- gram; people who only swim three days a week cannot afford the monthly rate. She said Morro Bay sports recreation has always been higher than anyone else, and she presented a flyer with information concerning same programs offered by other cities; Morro Bay costs are the highest in any area of the County. Colby Crotzer, 475 Arbutus and member of the Recreation and Parks Commission, said he would like to work with staff to find a fee structure that will satisfy the people and increase participa- tion. He said what our City provides in the field of recreation is so limited, people take advantage of facilities in other areas. It may be the City should only cover direct costs and the tax dollar subsidize staff costs. Lois Cleworth, a Los Osos resident and participant in the lap swim program, encouraged Council to find someway to keep the pro- gram going. She said the lap swimmers are dedicated people and willing to help in the way of fund raisers. Carol Lutz, Marina St., reviewed figures she provided to Council; she stated her analysis was based on figures from the Recreation Department. Ms. Lutz stated the increase in rates was counter- productive; it was designed to increase revenue, and had the opposite effect. She said a high percentage of drop -in swimmers swim two or three times a week as opposed to those who come every day. She confirmed there is a large group of dedicated swimmers willing to volunteer and help raise funds. She encouraged Coun- cil to take a serious look at waiving overhead costs for this program. Arby Kitzman requested Council adopt the Recreation and Parks Commission and staff recommendation to continue water aerobics and lap swim; a number of people swim for health reasons. It may be time to reconsider the decision of cost recovery for some of the programs. He also encouraged the Council not to give up on a joint agreement with the School District. Roxie Tacket commented on the waste of water at the High School by showers that do not shut off. Vice Mayor Luna closed the hearing to the public. Councilmember Baker stated the lap swim program can be self-sup- porting if indirect costs are eliminated. He asked what is the MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 9, 1991 PAGE 14 percentage of indirect costs? Mr. Wolter said staff multiplies 30% by whatever it costs for the program; yet noted the lap swim program does not even recover its direct costs. Councilmember Wuriu suggested the rates be lowered and an attempt be made to attract more swimmers. Mr. Wolter stated the effort would be limited; only a certain number of swimmers can swim per lane. Councilmember Mullen understands the need for programs to pay their way; however, the Parks and Recreation Department has some very nice things in staff and a building. She would rather the 30% overhead go towards subsidizing the swimming program. She would like to give the swim group more time to get fund raising ideas together, and asked if the Department can handle one more month of not making changes? Mr. Wolter stated from a staff per- spective, they are operating piece -meal with no General Fund sup- port. He stated he knows their programs are the highest priced programs in the County, but there is nothing he can to about it unless he gets money from somewhere besides participants. Councilmember Wuriu asked how much loss will there be if the pro- gram is continued the way it is until the end of the year? Mr. Wolter stated lap swim alone costs the City $1,000 per month. Mr. Napper commented part of the problem is this issue has been taken out of context with the budget cycle where Council can see the difficulty in prioritizing Citywide needs in other depart- ments. Given this program's experience, it is not meeting a need for the majority of people in the City. Council can look at this program similar to the unmet needs hearings held on transit by the Area Coordinating Council. If five people want funds spent on a project, it is not considered an unmet need. He reminded Council at the budget workshops, this balanced budget was built on elimination of this program in mid -September. Staff is still recommending it be continued in a modified form for the next three months because we are interested in having quality recre- ation services. Councilmember Mullen said she will support the staff recommenda- tion, and additionally requested staff look at the overhead charges and where the City is going with the whole Recreation and Parks program. Councilmember Wuriu was in favor of reviewing the eleven -year old decision to require all recreation programs pay their own way. Councilmember Mullen was not sure how to handle the JPA with the School District if they do not respond to staff's requests. Mr. Napper stated the School's first mandate is education; this type of JPA is not a priority for them. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 9, 1991 PAGE 15 Vice Mayor Luna said it seems a large part of the over -pricing structure goes back to the pool not being metered. He asked if the City can legally do anything to get the pool metered? In the past the City has offered to pay the costs of installing the meter. Mr. Napper stated it is a school facility, and the City cannot hook up a meter without their permission. It is possible the City could offer a discount in water rates because of pool use, but does not recommend it unless the School District allows the City to meter the pool. Mr. Wolter stated the School Dis- trict is not interested in metering the pool for fee reduction purposes. Vice Mayor Luna was in favor of the monthly passbook on an on- going basis; not just allowing the passbook for one month only. Councilmember Mullen suggested looking at reducing printing and laminating costs; she would rather see people come to Morro Bay to swim or play basketball than worry about extra overhead expenses. MOTION: Councilmember Wuriu moved the open -gym volleyball and the lap swimming program as currently constituted be discontinued; and, Council authorize the continuance of open -gym basketball and water aerobics but reduce lap swimming to a Monday -Saturday AM program only with fur- ther program evaluation in January 1992; and, a basic review of the overall goals of recreation programs be undertaken. The motion was seconded by Councilmember Mullen. There was discussion regarding review of the overhead costs. Councilmember Wuriu amended his motion to include a review of the Recreation and Parks Department overhead costs applicable to fees for recreation programs. The amendment was accepted by Councilmember Mullen and the motion carried unanimously. (4-0) Mr. Napper stated at council's last meeting, staff was instructed to cure any deficiencies and alleged violations of the Brown Act to allow consideration of Sonic's non-compliance with the fran- chise agreement and Municipal Code. The Cable TV Franchise and Services Board met this evening and prepared a recommendation for Council. He also informed Council the City received a letter from Sonic today making a formal request for modification of the franchise. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 9, 1991 PAGE 16 Mr. Henderson reviewed the TV Board's actions concerning this matter and their recommendation Council find Sonic Cable Televi- sion in material breach of its franchise for misrepresentation of its channel capacity, reducing the number of channels in the basic service, and failing to submit a Request for Modification to the City as required by the 1984 Cable Act. Negotiation attempts between the Cable TV Board and Sonic have been unsuc- cessful. The Board recommends Council initiate franchise termi- nation procedures, and direct staff to seek an alternative cable television operator. Mr. Henderson noted the Board received Sonic's Request for Modification at their meeting this evening, and would like the opportunity to consider it. He said the 1984 Cable Act allows Council 120 days to make a determination on the termination issue; the Board will meet again on October 3rd and report at Council's October 14th meeting. Ms. Skousen stated Sonic has again, at the last minute, submitted a new request. She recommended Council go ahead with the revoca- tion hearing and determine whether or not Sonic's breach of the franchise was with just cause. If Council finds it was without just cause, they can make that determination and find the fran- chise should be terminated unless Sonic obtains a modification to bring them into compliance, or they comply with the Ordinance as - is. The time limit to accomplish this is 120 days. Mr. Mapper said the final option is to continue the hearing to Council's October 14th meeting which would allow the Cable TV Board to consider Sonic's recent request and make a recommenda- tion at Council's October 14th meeting. Councilmember Wuriu said he has objected in the past about get- ting last-minute documents; however, since it appears to be legally sufficient and is what the City has been asking Sonic to do, he believes it is only fair to continue the hearing. He is not in favor of holding a public hearing before making a determi- nation on the modification request. Ms. Skousen stated the for- mat they have suggested in their letter makes no sense; she will request they put it in language that is understandable. She does not believe review and/or modification of the letter can be accomplished in two weeks. Councilmember Mullen disagreed with Councilmember Wuriu the let- ter is legally acceptable. She asked if Sonic can cut-off tele- vision service because they are angry with Council action? She wanted to know what will be the consequence of Council's actions this evening? Ms. Skousen stated the franchise has provisions to be followed for transfer. If Council issues an ultimatum this evening, Sonic could disconnect their service; however, the fran- chise does contain penalties. She does not believe they will discontinue the service; they want to maintain their franchise investment. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 9, 1991 PAGE 17 Councilmember Mullen said this item has been postponed several times; it is time for Council to back-up the TV Board. Councilmember Baker stated he is also tired of getting last- minute correspondence; however, he is willing to give Sonic one more extension of time. Councilmember Mullen asked if Sonic has withdrawn their lawsuit? Ms. Skousen stated no. Vice Mayor Luna opened the hearing to the public. Ralph Agee, past -member of the TV Franchise Board, stated he worked for CBS as a broadcast engineer for 34 years. He remem- bers discussions when he was on the Board concerning getting another cable company with little result. Today there should be people who would be willing to take over this service. Al Paul, 2520 Laurel, stated part of the Board's recommendation is to immediately pursue other sources of cable TV suppliers; he thinks this is a good idea. Steve Souza, 488 Sicily, said Sonic has•had ample opportunity to respond. It does not make sense to wait until the last minute to deliver a letter; they could have made their position clear a long time ago. He encouraged Council to get someone else to pro- vide the service. Steve Burrell, general manager of Sonic Cable TV, commented on the lateness of their letter. He said it is a concession they made because they do not believe they need to request a modifica- tion. He has been talking to staff and trying to reach an agree- ment; the letter is a gesture saying Sonic does not believe they need to request modification, but opening the door for further negotiations. He would welcome a postponement until the City has an opportunity to consider their letter. Councilmember Mullen asked Mr. Burrell if Sonic is going to drop the lawsuit against the City? Mr. Burrell responded he is not sure. Councilmember Mullen stated it would be an act of good faith if they are interested in solving the problem. Ty Green, attorney representing Sonic, stated according to case law, once a modification request is filed, it stays all rights of the City to enforce penalties under the contract. He also dis- agreed with the City Attorney as to the process; the Council has to decide first if there has been a breach, not if a breach has been for just cause. Sonic then has 30 days to comply. Vice Mayor Luna said Sonic is attempting, by the letter, to keep the Council from going forward with the recommendations of the TV Board. Mr. Green responded that was not their purpose. r, MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 9, 1991 PAGE 18 Ms. Skousen stated Sonic received their 30-day notice a year ago. She said she read the case law cited by Sonic and it does not apply to the City's circumstances or preclude the City from act- ing this evening. Randy Ruff said if what Sonic says is true, they could stay the City forever. He believes most City residents want a resolution to the problem. Bruce Risley said Sonic is arrogant and unbelievable; he recom- mend people do what he did and cancel their cable television subscription. Vice Mayor Luna closed the hearing to the public. Vice Mayor Luna said he is disappointed with what Mr. Green stated. It seems their proposal is an effort to stymie the City from going forward with revocation of the franchise. Sonic has had ample opportunity to comply with the franchise agreement. MOTION: Vice Mayor Luna moved Council determine Sonic's breach of the franchise was without just cause; accept the recommendation of the TV Franchise Board the franchise shall be terminated unless Sonic either obtains a modi- fication that brings them into compliance, or they com- ply with the Ordinance within 120 days; and, the TV Board be directed to seek another cable operator for the City. The motion was seconded by Councilmember Mullen. Councilmember Wuriu was in favor of trying to work out a solution to have adequate television service in this area. He said he has lived in other areas and, in comparison, Sonic is a good system. He does not want to start proceedings which will eventually end up in termination of any relationship the City has with Sonic. Vice Mayor Luna said Sonic will have the opportunity within 120 days to eliminate the need for termination. He said Council is wasting time and Sonic is wasting time. Councilmember Baker was in favor of giving Sonic one more chance. Councilmember Wuriu likened the proposed motion to throwing a gauntlet to Sonic; it will not solve the problem. The Council should do everything they can to work things out; there have been some negotiations going on which seem to have some merit of being fruitful in the long run. The proposed motion will eliminate the possibility of working anything out. Councilmember Baker asked to hear from one of the TV Board mem- bers on this issue. Bill Olson, TV Board member, stated the Board has been trying to negotiate with Sonic since June 1990; MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 9, 1991 PAGE 19 it's like negotiating with Saddam Hussein or a stone wall. The reason for Sonic's action a year ago is to keep the City from regulating rates. The Federal Communications Commission announced their intention to let cities regulate basic service cable rates; anything over basic service cannot be regulated. As soon as Sonic became aware the FCC was planning this action, they re -tiered their programming schedule so that only 12 channels are available on their "basic" tier. It really leaves only 11 chan- nels since Channel 6 is a Sonic reader -board channel. Of the it working channels, 5 operate full time and 6 are subject to Syn- dexing. Their contract calls for three additional channels every five years of the contract; there should be 28 channels in basic service at the end of 15 years. He noted the Board offered to settle for 22 channels as basic, but Sonic rejected that compro- mise. Re -tiering means they can shuffle packages of channels; people will not be able to pick and choose channels but will have to purchase and pay for packages which may contain channels they do not want. The TV Board is firm in their recommendation to Council; every time a deadline arrives, Sonic comes up with another piece of paper as a roadblock. Councilmember Baker called for the question. The motion carried on the following vote: AYES: Baker, Luna, Mullen NOES: Wuriu ABSENT: Sheetz D-4 CONTINUED RECONSIDERATION OF WATER RATIONING LEVEL FOR MOBILEHOME PARKS (RESOLUTION NO. 104-91) Ms. Burt stated a Resolution has been prepared to set a new water allotment at six units per dwelling for permanent mobilehome res- idents. She said only two mobilehome parks in the City (Blue Heron Terrace and Jim Silver's park on Main Street) that exceed this rationing allotment. She said staff was unable to establish a historical difference between transient and permanent mobile - home resident usage. Instead, staff proposes mobilehome parks with over 90% of the spaces occupied by permanent residents be considered multi -family for the purposes of water rationing; those parks unable to meet this qualification must remain at 4.25 billing units per dwelling per month.. Vice Mayor Luna opened the hearing to the public for comments; there were no comments and the hearing was closed. MOTION: Councilmember Mullen moved for the adoption of Resolu- tion No. 104-91. The motion was seconded by Coun- cilmember Baker and unanimously carried. (4-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 9, 1991 PAGE 20 D-5 CONTINUED HEARING ON FINAL PROJECT COSTS TO ABATE NUISANCE OF ILLEGAL EXCAVATION AT 2590 LAUREL STREET, AND AUTHORIZA- TION TO LEVY NUISANCE ABATEMENT LIEN AND COLLECT PROJECT EXPENSES Ms. Skousen stated Dale Mitchell, attorney for the Johnsons, is now satisfied the City has followed procedures in this matter. She recommended Council open the hearing to the public and subse- quently confirm the costs as presented. Vice Mayor Luna opened the hearing to the public for comments; there were no comments and the hearing was closed. MOTION: Councilmember Mullen moved Council confirm and assess the amount of $243,870.41 as a Nuisance Abatement Lien, pursuant to Government Code §38773.1, against Mr. Robert L. and Mrs. Molly R. Johnson for their property located at 2590 Laurel Avenue. The motion was seconded by Vice Mayor Luna. Councilmember Baker commented the lien is a considerable amount of money and asked how the City will collect? Ms. Skousen stated the lien will be recorded against the property; it is possible the City could lien against other property the Johnsons own. However, their attorney disagrees with that authority. There also may be the Johnsons' insurance involved to recover City expenses if a lawsuit is filed. The motion was unanimously carried. (4-0) Mr. Nichols stated staff was directed to evaluate the treatment of wastewater effluent at the treatment plant for possible use of the water as reclamation. Dr. John Alexander has offered to lend the City equipment to do a pilot study on a galvanic agglutina- tion process. It is estimated approximately $3,000 will be needed for chemicals and lab tests to perform the study. He noted Cayucos Sanitary District has not yet considered this item, so he does not know if they will approve or wish to participate in the pilot study; they do have a copy of this report. Councilmember Mullen asked if the pilot program can be put together quickly if Cayucos Sanitary District approves of the project? Mr. Nichols stated yes; the equipment is assembled and will probably take only two weeks to complete the test, except for lab testing. Vice Mayor Luna opened the hearing to the public for comments. • • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBER 9, 1991 PAGE 21 Bruce Risley stated several months ago this item came before the Water Advisory Board and they were in favor of proceeding with the pilot study immediately. He does not understand why it has taken so many months to implement the simple step recommended by Dr. Alexander. Mr. Risley is not sure it will work, but this Council for the first time has put reclamation at a high prior- ity; delays should not happen. Vice Mayor Luna closed the hearing to the public. Councilmember Mullen agreed reclamation is a high priority; how- ever, she noted staff has been working a number of other things including the desal plant and lawsuits. She believes the project is coming along on a timely basis. Mr. Napper also commented that it has been difficult to get Dr. Alexander to commit to information and assistance in writing for the City to proceed. Councilmember Baker said he knows some of the Councilmembers believe reclamation should be a priority and he is not sure this process will make it a reality. However, the investment is small enough so that he is willing to go along with the recommendation. MOTION: Councilmember Wuriu moved staff be authorized to pro- ceed with a galvanic agglutination reclamation process as a pilot study proposed by Dr. John Alexander, sub- ject to consent of (and possible participation by) Cayucos Sanitary District; and, allocated $3,000 from the FY 1991-92 Sewer Operating Fund Contingency to underwrite the pilot study. The motion was seconded by Councilmember Baker and unanimously carried. (4-0) None F. MOTION: Councilmember Baker moved The motion was seconded by mously carried. (4-0) The meeting adjourned at 10:25 p.m. Recorded by: ARDITH DAVIS City Clerk the meeting be adjourned. Vice Mayor Luna and unani- 0 0 217, , 191 0 0 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. SPECIAL MEETING - AUGUST 29, 1991 JOINT MEETING WITH WATER ADVISORY BOARD LIBRARY PROGRAM ROOM - 5:00 P.M. 625 HARBOR ST., MORRO BAY, CA ROLL CALL PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public 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, AND APPEARANCES D-1 REQUEST BY WATER ADVISORY BOARD FOR CITY COUNCIL DIRECTION AS TO PURPOSE, AUTHORITY AND NEED FOR CONTINUATION OF THE WATER ADVISORY BOARD AS A WORKING COMMITTEE. D-2 URGENT REPORT ON SIGNIFICANTLY INCREASED DEGRADATION IN QUALITY OF GROUND WATER SUPPLIES, AND CONSIDERATION OF FURTHER EMERGENCY WATER SUPPLY CONDITION RESPONSES AND ALTERNATIVES 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. 0 C='i`Y OF MORRO BAY NOT = C E O F S PEC = AL MEET = NG NOTICE IS HEREBY GIVEN that a Special Meeting of the Morro Bay City Council has been called to be held on Thursday, August 29, 1991 at 5:00 p.m. in the Library Program Room, 625 Harbor Street, Morro Bay, CA. Said Special Meeting shall be held jointly with the Water Advisory Board at their request for City Council direction as to purpose, authority and need for continuation of the Water Advisory Board as a working committee. A further item has been added to the Agenda for an urgent report on significantly increased degradation in quality of ground water supplies, and consideration of further emergency water supply condition responses and alternatives. DATED: August 28, 1991 1A City of Morro Bay, Californi MINUTES - MORRO BAY CITY COUNCIL AND WATER ADVISORY BOARD SPECIAL MEETING - AUGUST 29, 1991 LIBRARY COMMUNITY ROOM - 5:00 P.M. Mayor Sheetz called the meeting to order at 5:00 p.m. PRESENT: ABSENT: PRESENT: ABSENT: Rose Marie John Baker Ben Luna Sue Mullen Tom Wuriu None Sheetz Mayor Councilmember Councilmember Councilmember Councilmember Herbert Haley Ed McCracken Robert Enns Bruce Risley Ann Freeman Richard Kitzman Steven Paige STAFF: Gary Napper Nick Nichols Louise Burt Elane Novak None 0 :_.i 61vir" Chairperson Vice Chair Member Member Member Member Member City Administrator Public Works Dir. Finance Director Deputy City Clerk D-2 URGENT REPORT ON SIGNIFICANTLY INCREASED DEGRADATION IN QUALITY OF GROUND WATER SUPPLIES, AND CONSIDERATION OF FURTHER EMERGENCY WATER SUPPLY CONDITION RESPONSES AND ALTERNATIVES Councilmember Wuriu pointed out that when this joint meeting was originally scheduled there was only one item on the agenda, that being City Council meet with the Water Advisory Board. Since then it was discovered that there are major problems with the ground water sources. Councilmember Wuriu asked that the order of the meeting be reversed, hearing D-2 first and then going to D-1. Mayor Sheetz said that Item D-2 would be heard first. Mr. Napper said that City and Council had become aware of a change in status in the ground water supply. He asked Nick Nichols, Public Works Director, to present this item. 1 Mr. Nichols reported the City had not been using 2 wells in Chorro Basin for several weeks due to high nitrates. This week, one well had excessive levels of selenium. Mr. Nichols explained a number of City wells in the Chorro basin are now showing an excess of selenium and nitrates and some are suffering from salt water intrusion. The City is not suffering too much from the lack of quantity of water but rather the lack of quality. If the quality of water continues to deteriorate, this will force shutting down more wells and then the quantity of water would also be in jeopardy and he may not be able to service the community. only 3 wells are producing in Chorro Basin. Mr. Nichols stated the desalination plant could be up and running by the end of September; this plant can reduce the saline content of water by reverse osmosis. He explained our water situation was not at all like that of San Luis Obispo and could not be compared in anyway. We rely on ground water from our wells and the City of San Luis Obispo has surface water they can depend on. Their water can be stored, saved from year to year etc., while our water if not used in years of plentiful rain will simply flow out to sea and cannot be saved. He stated that during our rainy season this year the wells had come up but did not recover as much as they have in prior years. He speculated that perhaps this was because the rain had all come in such a short period of time and maybe more ran off than would have if the rains had been spread over a longer period of time and could have soaked in more. He said possibly other factors contributed to this lower recovery also. Mayor Sheetz asked if there were any reverse osmosis units at this time and what the time zone had been when we used the units last year? Mr. Nichols said it had taken 90 days to get the units in place last year. There was some discussion as to other water available to the City such as 100 acre feet to come from the Whale Rock Dam. This was requested last year when the City was in an emergency situation. Mr. Nichols said that when the request for this 100 acre feet was granted from Whale Rock it was made quite clear that the City should not see this as a source of solving the water problem and Whale Rock administrators would not be happy to see the City come back with a similar request. It was also conditioned as a "loan", not a gift, and the City would have been required to repay the loan with potable water. The water in the County Golf Course well and the PG&E wells which were considered last year are not really a viable source as they are not potable and much testing would have to be done before they could be considered. The problems with these sources as arranged last year is they are not dependable, viable options but were the best the City could come up with in desperation last year. To 2 address this problem and emergency, the City chose the temporary emergency desalination plant. Councilmember Wuriu asked if anything in the equation had really changed in the City water situation since Council made the decision to have a desalination plant built in April 1991. Mr. Nichols responded "no", he had predicted this situation. Mr. Nichols said the piping in the plant would be completed on Friday 30 August and that the week of 9 September production tests would be run to make sure every thing works properly. He again stated the emergency desalination plant should be ready for production by the end of September to address the emergency. There was further discussion between Mr. Nichols and Council regarding possible rationing. Mr. Nichols said that with the quality of water in jeopardy, more wells might have to be shut down which would make rationing essential. Councilmember Mullen said that she had been following the water production and noted that the percentage production has been slipping; is the community using more water? Mr. Nichols said untrue to more water use; last year at this time, the community was using less water due to water conservation and that would account for the decline in percentage. Councilmember Mullen also expressed concerns about the Labor Day weekend coming up and wondered if we would run into difficulties? Mr. Nichols said he did have concerns, but the rationing has had a good effect and he thinks we can handle the water demands and does not anticipate problems over the weekend. Mayor Sheetz opened public hearing on this item. 1. Fred Ruff 3420 Zanzibar, wondered why the City did not bring water from the valley through the Chevron pipelines. He understands the pipes would need to be cleaned but wonders if this has been explored. 2. Charlie Palmer passed out graphs to City Council, Water Advisory Board and staff. Before he gave his comments, Mr. Risley of the Water Advisory Board asked how much water the desalination plant would provide? Mr. Nichols indicated the plant would produce 400 gallons a minute or about 600,000 gallons per day. Mr. Palmer stated that he disagreed with some of the figures presented by Mr. Nichols and went on to explain why he disagreed, pointing out items in his graphs. He also stated that he had offered free of charge a rate structure list to the City which he felt would be more equitable for all. 3 He felt the decision to build a desalination plant was caused by the fact that staff had come to City Council in a panic situation and he felt there were other alternatives. He also stated that near the City two reservoirs or ponds had been created and wondered if this was the reason the City wells in Morro Basin did not respond as much as expected during the rainy season. He even wondered if the City was aware of these reservoirs. 3. John Lemons suggested a modular treatment plant might be the answer and asked if any were available? Mr. Nichols indicated it would be four to six months before delivery. He also indicated that TDS's were not the concern at this time in the Chorro Basin but the presence of selenium. He stated that one well had been down 2 years ago because it tested high for selenium, but last year the well had no water so could not be used or tested. Mr. Lemons said it sounded as though the Domenghini wells had been written off. He feels this land could be acquired and with the farm land taken out of production the City could acquire 300-400 acre feet of water and build a treatment plant out there. 4. Roger Picquet law firm of Lyon & Picquet representing the Cayucos Sanitary District, came forward to explain the letter he had distributed earlier in the evening to Council and staff. He said in summarizing the letter that they objected to City Council making a decision at this time on an emergency measure. He further stated that the meeting had not been properly noticed and that other alternatives must be considered. He asked Council to table this item for proper notice and more study. City Attorney, Judy Skousen responded to this line of comment by saying this meeting had met all requirements at an earlier time when the water issue had been declared an emergency; the proper resolutions had been adopted allowing Council to proceed as necessary. 5. Susie Vickers of Cambria came forward to say she hoped that every effort was being made to check the effect of nitrate on the Bay. She said that she had been involved in the effects of nitrate on the Bay in Newport Beach and hoped the City would make this part of their study. 6. Mary Phillips said there should be an emergency meeting called for a public hearing. She said that people should not be used as human guinea pigs and that reverse osmosis was only good for brackish water and that the City had neither chemists nor a public health department and were not competent to make the decisions they are making. She said Whale Rock must give the City 300 acre feet of water upon request. 4 Mayor Sheetz closed the public hearing. Councilmember Luna asked for comments from the Water Advisory Board. Mr. Risley, member of the Water Advisory Board, said he wondered how all available wells compared with the 600,000 gallons a day quoted by Mr. Nichols. He also wondered about Mr. Palmer's reasoning that the wells didn't respond due to the ponds and wondered if the City had any contact concerning these ponds. Mr. Nichols said he did not have such information with him and did not want to say what the capacity of the five wells might be. He went on to say as far as the selenium in the Chorro wells it naturally occurs in the soil when not flushed out by seasonal flow from rain, it just naturally occurs. He further stated that yes, the City was aware of the ponds and the City of Morro Bay had written a letter to the County about the diversion of this water, but the County issued the permits anyway. He said this could possibly be one of the reasons the wells did not recover as much as expected, however there was a lot of water run off, duration of rain, etc. as cited earlier. Mr. Enns of the Water Advisory Board directed a question to Mr. Picquet regarding the intent of his client, at which point Mayor Sheetz requested all questions be directed to the Mayor. She informed Mr. Enns the City had already been taken to court by the Cayucos Sanitary District and it was their intent to prevent the desalination plant from operation. Mr. McCracken of the Water Advisory Board referred to an article he had seen in the Thursday, 8/29/91 Telegram Tribune raising the issue of selenium in the wells. He said the level of acceptable selenium might be changed by the Health Department to 50 ppm. Mr. Nichols explained this new development with the wells was all new to Council and staff as the discovery had just been made; he was not familiar with Health Department issues and did not know what was to happen in this area of maybe changing the State standard. He noted the City's blended water does not exceed the selenium maximum level of 10 ppm. Councilmember Baker asked if rationing would save some of this water? Councilmember Luna also wondered if cutting back on use and allowing more water to remain in the wells would contribute to better quality of water ...... Mr. Nichols said rationing would save water but water quality would stay the same. Mr. Napper said the City will need to find other water sources or curtail use of what we have to address this continuing emergency. Resolution 102-91 is submitted for re -affirmation that the temporary emergency desalination plant remains to be the most dependable emergency source of water; and, Resolution No. 103-91 offers yet another level of emergency rationing to be imposed upon the community to address this water crisis. 5 Mr. Napper said that Finance Director, Louise Burt could explain what the rationing cutbacks would be. Mrs. Burt said that one unit per month would be taken away from each residential category: multi family will go from 7 to 6, single family from 9 to 8, and mobilehome parks will go from 5 to 5.25. The Blue Heron Mobilehome Park is a special issue decided at a prior Council meeting to remain at 6 units per dwelling until further rationing study can be completed. Commercial uses will all be cut back by 15%. The new rationing level will go into effect for meter use beginning September lst. MOTION: Councilmember Wuriu proposed Council approve Resolution No. 102-91. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Councilmember Wuriu commented this issue has been thoroughly researched and the City has not found another source of emergency water as good as the desalination plant. All other sources have serious problems, and the Council made a good decision on this in April 1991. Councilmember Mullen noted she had no problem with the stricter rationing level in light of this new information. MOTION: Councilmember Mullen moved Council adopt Resolution No. 103-91. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) D-1 REQUEST BY WATER ADVISORY BOARD FOR CITY COUNCIL DIRECTION AS TO PURPOSE, AUTHORITY AND NEED FOR CONTINUATION OF THE WATER ADVISORY BOARD AS A WORKING COMMITTEE Mayor Sheetz asked Mr. Herbert Haley, Chairman of the Water Advisory Board, if he would address this item. Mr. Haley read a prepared statement from the Water Advisory Board. Mr. Haley had previously given Council and staff a copy of this statement. In the discussion that followed it was pointed out that Mr. Nichols is the staff person working with the Water Advisory Board and he keeps them as up to date as possible. Mr. Napper pointed out that City Council has asked for certain agenda items to go to the Water Advisory Board and in some instances has sent them back to the Board; in other instances, Council has reserved the matters strictly for the City Council as items initiated by Councilmembers. The Water Advisory Board was wondering if they should meet more than once a month, perhaps twice a month as Council does so they can keep more abreast of what is happening in the water situation. The Board noted that routinely in the past staff and City Council sent items to the Water Board and the Board would then submit their 0 recommendations. Councilmember Wuriu, who was a former Water Advisory Board member, noted this kind of handling worked very well in the past. He said Mr. Nichols would say a certain item was coming to City Council and the Water Board should handle the item before it reached them. Councilmember Mullen summarized the problem by saying the whole focus of the Water Advisory Board seems to have shifted as so many items in the past year have been on an emergency basis and the Council has had to make instant decisions, not allowing them time to confer with the Board or ask for recommendations. She also stated the report presented by the Water Advisory Board had focused on many items of water possibility and the Council had to prioritize them and go with the most feasible water projects. Water Boardmembers stated they wanted to be effective and helpful to the City Council and not just spin their wheels. They cited as an example the Blue Heron Mobilehome Park water rationing issue which they felt they could have handled and then made recommendations to Council. Councilmember Mullen said this was the perfect example of the kind of thing the Council needed to make an immediate decision about; Council just did not have the time to send this to the Water Advisory Board to await recommendation. Mayor Sheetz suggested the Water Advisory Board might work on the reclamation of water and Nacimiento water. Mr. Nichols stated the Nacimiento water project was already in the Water Advisory Board packet for their September meeting and the Board had discussed the pilot reclamation project on two occasions. During the discussion that followed the Water Advisory Board felt they should be making recommendations to the City Council if they were to be effective as a Board. It was thought that the Water Advisory Board By -Laws maybe should be re -written or a new Mission Statement be forthcoming. It was noted their ByLaws do contain a Purpose Statement. (Note: Councilmember Baker left the meeting at 6:53 PM). Mayor Sheetz suggested it would have been helpful and informative to the Board if they had attended Budget Hearing meetings concerning water issues. It was also felt the Board should be more realistic in its recommendations to the Council; recommend programs that there is money for and can be done now. Boardmember Risley did agree the Board's assessment of the San Bernardo Creek Dam was fairly narrow and did not include financial implications. 7 0 The Council let the Board know they did appreciate their input and felt that once all the water emergencies were worked through it would be easier for all to work together. F. ADJOURNMENT MOTION: Councilmember Wuriu made a motion to adjourn the meeting. The motion was seconded by Councilmember Mullen and unanimously carried. (4-0) The meeting adjourned at 6:55 p.m. Recorded �byy/: ELANE NOVAK Deputy City Clerk 0 City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING - AUGUST 26, 1991 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE PRESENTATION: PROCLAMATION TO MASONIC LODGE OF MORRO BAY, "U.S. CONSTITUTION OBSERVANCE 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 AUGUST 12, 1991 A-2 APPROVAL OF EXPENDITURE REPORT - JULY 1991 A-3 STATEMENT OF INVESTMENTS - JULY 1991 A-4 PROCLAMATION DECLARING SEPTEMBER 1991 AS "U.S. CONSTITUTION OBSERVANCE MONTH" A-5 WATER SUPPLY STATUS REPORT A-6 APPROVAL OF FY 91-92 COMMUNITY PROMOTIONS MARKETING AND ADVERTISING PLAN A-7 RESOLUTION NO. 100-91 ESTABLISHING 15-MINUTE PARKING ZONE ADJACENT TO CENTENNIAL PARKWAY RESTROOM A-8 RESOLUTION NO. 99-91 SETTING HEARING DATE (OCTOBER 14TH) FOR FORMAL CREATION OF UNDERGROUND UTILITY DISTRICT ON MORRO BAY BOULEVARD FROM HIGHWAY 1 TO MAIN STREET 1 0 B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 404 REVISING SEISMIC SAFETY BUILDING MITIGATION PROGRAM (URM) TO INCORPORATE 1991 UNIFORM BUILDING CODE REQUIREMENTS (SECOND READING/ADOPTION) B-2 ORDINANCE NO. 405 ESTABLISHING AUTHORIZATION TO HOLD CLOSED SESSIONS OF CITY COUNCIL C. NEW BUSINESS C-1 CONSIDERATION OF DESIGN CONCEPTS FOR NEW CHRISTMAS STREET BANNERS C-2 DETERMINATION OF SUPPORT FOR COUNTYWIDE ABANDONED VEHICLE ABATEMENT PROGRAM VIA $1 PER YEAR SURCHARGE ON ALL REGISTERED VEHICLES (RESOLUTION NO. 96-91) C-3 STREETS AND TREES COMMITTEE RECOMMENDATION FOR WAVY "ADVANCE WARNING" PAVEMENT MARKINGS AT STOP SIGN INTERSECTIONS ON MORRO BAY BOULEVARD AT NAPA AVENUE AND PINEY WAY D. PUBLIC HEARINGS REPORTS & APPEARANCES D-1 REPORT ON REQUEST TO COUNTY OF SAN LUIS OBISPO FOR CONSOLIDATION OF LOCAL ELECTION IN NOVEMBER 1991, AND DETERMINATION OF CONDUCTING LOCAL SPECIAL ELECTION D-2 RESOLUTION NO. 101-91 APPROVING SPECIAL USE PERMIT FOR MOBILE ICE CREAM VENDOR IN RESIDENTIAL AREAS (dba FROZEN PLEASURES; CANDELA/ HEINRICH, APPLICANTS) D-3 RECOMMENDATION OF CABLE TV FRANCHISE AND SERVICES BOARD COMPLIANCE OF SONIC CABLE TELEVISION D-4 RECOMMENDATIONS OF SOLID WASTE MANAGEMENT BOARD REGARDING UPCOMING EXPIRATION OF AGREEMENT FOR REFUSE COLLECTION SERVICES WITH MORRO BAY GARBAGE SERVICES D-5 ORDINANCE NO. 406 AMENDING CITY WATER EQUIVALENCY TABLE TO DISTINGUISH AVERAGE WATER USE RATE FOR MOTELS WITH AND WITHOUT ON -SITE MANAGER'S QUARTERS D-6 PRESENTATION BY COUNTY OF SAN LUIS OBISPO REGARDING THEIR PROPOSAL TO LEVY NEW DEVELOPMENT IMPACT FEES TO FUND COUNTYWIDE AND REGIONAL FACILITIES D-7 CONTINUED HEARING ON FINAL PROJECT COSTS TO ABATE NUISANCE OF ILLEGAL EXCAVATION AT 2590 LAUREL STREET, AND AUTHORIZATION TO LEVY NUISANCE ABATEMENT LIEN AND COLLECT PROJECT EXPENSES 0 E. CLOSED SESSION E-1 GOVERNMENT CODE §54956.8, REAL PROPERTY NEGOTIATIONS A. VACANT CITY PROPERTIES ADJACENT TO 1320 MAIN STREET (dba BT AND THE DUCK) B. VACANT PRIVATE PROPERTY ON NORTH SIDE OF ATASCADERO ROAD ACROSS FROM "J" STREET (APN 65-182-008) F. ADJOURNMENT COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. 3 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. PDI PRESENT: Rose Marie Sheetz John Baker Ben Luna Susan Mullen Tom Wuriu ABSENT: None STAFF: Gary Napper Judy Skousen Louise Burt Ardith Davis William Farrel Forrest Henderson Dave Howell Nick Nichols Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Finance Director City Clerk Community Dev. Dir. Asst. City Admin. Police Chief Public Works Dir. Roger Evey of the Four Square Gospel Church gave the invocation, and Horace Strong led the Pledge of Allegiance. PRESENTATION: PROCLAMATION TO MASONIC LODGE OF MORRO BAY, "U.S. CONSTITUTION OBSERVANCE MONTH" Mayor Sheetz read a Proclamation declaring October 1991 "U.S. Constitution Observance Month". Richard Griffin, Master of Estero Lodge No. 719, and member Albie Elmorre were present to accept the Proclamation. Mr. Griffin presented Mayor Sheetz with tickets to their celebration BBQ to be held on September 14th. Mayor Sheetz thanked them, stated she will be in Cassis, France on vacation that date, and asked Vice Mayor Luna to represent her at the event. • wy_ 1. Ray Kaltenbach, 473 Sicily, stated he was appalled to read the articles regarding Cayucos Sanitary District suing the City; the City owns 65% of the treatment plant. He said the City should sue Cayucos for their sewage pipeline which runs through Morro Bay and emits terrible odors. DECLARATION OF FUTURE AGENDA ITEMS Mayor Sheetz stated she has recently noticed considerable paper litter throughout Morro Bay; some of it is identifiable as coming from businesses such as Circle K, Taco Bell, TCBY, etc. She MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 2 asked if there is a way to require the owners of these establish- ments to police property and clean-up the debris? Judy Skousen stated when a business is going through the permitting process, that is the time to set those type of conditions. She knows of nothing the City can do about it now. She noted it is the cus- tomers of businesses that are creating the nuisance. A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF AUGUST 12, 1991 Mr. Napper recommended Council approve the minutes as submitted. A-2 APPROVAL OF EXPENDITURE REPORT - JULY 1991 Mr. Napper recommended Council approve the Expenditure Report. A-3 STATEMENT OF INVESTMENTS - JULY 1991 Mr. Napper recommended Council receive the Statement for file. A-4 PROCLAMATION DECLARING SEPTEMBER 1991 AS "U.S. CONSTITUTION OBSERVANCE MONTH" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. A-5 WATER SUPPLY STATUS REPORT Mr. Napper recommended Council accept the report for file. A-6 APPROVAL OF FY 91-92 COMMUNITY PROMOTIONS MARKETING AND ADVERTISING PLAN Mr. Napper recommended Council approve the Marketing and Adver- tising plan as submitted by the Community Promotions Committee. A-7 RESOLUTION_ NO-, 1-00-91--ESTABLISHIZL� 15-MINUTE__PARKING__ZONE Mr. Napper recommended Council adopt Resolution No. 100-91. A-8 RESOLUTION NO, 1_-SETTING-HEARING DATF fO�CTOBER_14TH) FOR Mr. Napper recommended Council adopt Resolution No. 99-91. Councilmember Luna requested Items A-6 and A-7 be pulled for sep- arate discussion. MOTION: Councilmember Wuriu moved for the approval of the Con- sent Calendar except for Items A-6 and A-7. The motion MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 3 was seconded by Councilmember Mullen and unanimously carried. (5-0) A-6 APPROVAL OF FY 91-92 COMMUNITY PROMOTIONS MARKETING AND ADVERTISING PLAN Councilmember Luna stated the staff report mentions there is TV video of Morro Bay, and asked if he could get a copy of it? Mr. Napper stated there is one available in City Hall he could borrow. Councilmember Wuriu commented the Committee decided to spend more of its budget on television, which he assumes means less print and radio advertising. He said that decision should be weighed against evidence about the pulling power of the print advertising dollar. The Committee would probably do equally well with print media. Mayor Sheetz commented on the $1,000 contribution to the Highway 1 billboard design, and stated the Community Promotions Committee was formed for off-season advertising from October through April. The billboard is a year-round advertisement. She also questioned the allocation of $2,000 for the trade shows. Mr. Napper said the trade show costs are typical and involve travel expenses, lodging, and booth fees; travel funds are allocated in accordance with the City's travel policy. He agreed expenditures often do overlap into year-round activities such as the TourBook ad. Mayor Sheetz cautioned she did not want the Committee to get off on a tangent of funding year-round activities; it was established for the purpose of off-season promotion. Mr. Napper stated the Committee is well aware of that mission. He noted the total cost of redesigning the billboard is $3,500, and the Committee has recommending contributing only $1,000; the remainder will come from the Motel/Restaurant Association and the Merchants Association. __• •� • �� _:. ai._. •�_ • - • - - - - -e L -- `••4 -- - )IZI Councilmember Luna was concerned a car parked in the 15-minute parking zone may prohibit the safe passage of emergency vehicles. Mr. Nichols stated staff has made sure there is enough width for emergency vehicles. MOTION: Councilmember Luna moved for the approval of Items A-6 and A-7. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 4 Mr. Napper stated this is the second reading and adoption of an Ordinance that conforms our Seismic Safety Building Mitigation Program to the standards contained in the 1991 Building Codes. It will become effective September 25th. MOTION: Councilmember Luna moved Ordinance No. 404 be read by title and number only. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mr. Napper read Ordinance No. 404 by title and number only. MOTION: Councilmember Baker moved for the adoption of Ordinance No. 404 as second and final reading. The motion was seconded by Councilmember Mullen and unanimously carried. (5-0) B-2 ORDINANCE NO, 405 ESTABLISHING AUTHORIZATION TO HOLD CLOSED SESSIONS OF CITY COUNCIL Mr. Napper stated this ordinance allows the Council to hold Closed Sessions at 5:15 p.m., prior to regular meetings, in the City Hall Conference Room. This ordinance will also become effective September 25th. MOTION: Councilmember Baker moved Ordinance No. 405 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Napper read Ordinance No. 405 by title and number only. MOTION: Councilmember Mullen moved for the adoption of Ordi- nance No. 405 as second and final reading. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) C. NEW BUSINESS C-1 CONSIDERATION OF DESIGN CONCEPTS FOR NEW CHRISTMAS STREET BANNERS Mayor Sheetz stated the City's Christmas street decorations are in deplorable condition. She received Council approval during budget sessions to begin replacing the old decorations with ban- ners similar to those presently in the downtown area, but with a Christmas/nautical theme, something unique to Morro Bay. She referred to sample designs depicting some of the twelve days of Christmas prepared by Judy Raff of Goofy Graphics. She noted the Merchants Association stated at one time they would be willing to MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 5 contribute to new street decorations. Mayor Sheetz suggested a sub -committee of the Council meet with Judy Raff to select the design of the banners, and return to Council at the next meeting with their recommendations. Councilmembers Baker and Mullen volunteered for the Committee. Councilmember Mullen said she hoped the Merchants, Hotel/Motel Association, and waterfront people could contribute to replacing the decorations; perhaps then the City would be able to replace the decorations sooner than 5 years. She asked if the banners will be lighted? Mayor Sheetz stated no. Councilmember Baker asked about the life -span of the banners? Judy Raff stated the colors do not fade; they should last 20-30 years with constant exposure. It was noted these banners will only be up for approximately two months out of the year. There was discussion regarding merchants putting lights in the trees in front of their businesses during the Christmas season. Suedene Nelson, Chamber of Commerce Executive Director, stated the merchants have collection cans in their businesses taking donations for this purpose; the Chamber of Commerce is working with them. Councilmember Mullen suggested the design alternatives be pre- sented at the Chamber's meeting this Friday, and at the Mer- chant's meeting in September. MOTION: Councilmember Wuriu moved Council accept the recommen- dation and appoint Councilmembers Baker and Mullen to serve on the sub -committee and return with their recom- mendation at the next meeting. The motion was seconded by Mayor Sheetz and unanimously carried. (5-0) • m"Vocei zime)JEM••;_ •; • ••� ;._DIKOJ "a" ow Chief of Police Dave Howell stated he recently attended a meeting held by the County Planning Department regarding AB 4114 which allows cities and counties to enact a $1 surcharge per vehicle registration fee to fund vehicle abatement to help remove aban- doned cars throughout cities and counties. The probable imple- mentation date is next year. A resolution has been prepared for adoption if Council supports the program. Chief Howell stated the County will be preparing a plan outlining the scope of the problem which has to be approved by the Califor- nia Highway Patrol; a majority of the cities and counties must also approve the plan. He stated the City has approximately 150 to 200 abandoned cars on public and private property, and explained the procedure the City follows to abate vehicles. While the City attempts to collect processing fees from the reg- istered property owner, it is difficult to estimate the amount of MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 6 money recovered; maybe 30%. The County program must augment the money the City is already spending. Mayor Sheetz stated this item came before the Area Coordinating Council and met with lukewarm reception; they are looking to be the authority over this program. The big question is what per- centage of the funds will be coming back to the cities? She stated Morro Bay has more abandoned vehicles than any other city in the County. Councilmember Baker stated he does not like the plan. Every time there is problem, the solution is to tack on more to vehicle fees. The owners of the abandoned vehicles should be tracked down and charged for the abatement. Councilmember Wuriu commented the final plan has not been worked out; he believes the City should not take action until further information is provided on exactly where the money will go and what will be done if there are any funds left over. Councilmember Mullen agreed; she does not have enough information to approve the Resolution. She is concerned about taxing every- one to pay for the problems of a few, and perhaps not even receive the money from the County. Councilmember Luna stated the last time the City budgeted funds for vehicle abatement was in 1989-90; he asked how the City cur- rently pays for vehicle abatement? Chief Howell stated there is no separate account; the funds are built into the budget. Louise Burt explained they are set up in a trust account because the City bills the owner of the vehicle for the costs if they are able to track him down. Councilmember Luna asked if staff has a break -down on the number of vehicles on private vs. public property. Chief Howell stated no; he estimated a 3-to-1 ratio with the majority of cars on pri- vate property. Councilmember Wuriu asked if there is any way to collect from the junk cars; is there any market for them? Chief Howell stated there is no market; the City recently negotiated a contract for the towing company not to charge in return for the scrap metal value of the vehicle. Councilmember Luna asked what percentage of every dollar will be consumed by overhead and bureaucracy? Chief Howell stated according to the County Auditor, less than 5%. Councilmember Luna said he does not favor placing an additional burden on the taxpayers. He said everyone should not have to pay for the lack of responsibility by certain individuals. Mayor Sheetz stated she will relay the Council consensus against this program to the Area Coordinating Council advising Morro Bay 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 7 does not wish to participate. Councilmembers Mullen and Wuriu added they are not ready to act based on the limited information available at this time. ._\ O i_ R414._ aawlINYWO\ O R Mr. Nichols stated the Streets and Trees Committee is recommend- ing additional advance warning markings be installed at the 4-way stop intersections at Piney Way/Morro Bay Blvd., and Napa Avenue/ Morro Bay Blvd. The Committee requested staff investigate plac- ing the temporary barricade -mounted stop signs back in the middle of the street; however, the Police Department recommends against this. The Committee then recommended wavy lines be painted on the street prior to the stop. The cost is minimal; approximately $200 total. Mr. Nichols stated he and the Police Chief have evaluated the recommendation; there is no record of accidents or enforcement problems at these intersections. They do not believe any benefit will be gained by the markings; however, no harm will be done by painting them on the pavement. Councilmember Luna stated he agrees somewhat with the Streets and Trees Committee recommendation; it is somewhat difficult to see these stop signs because they are behind trees. Perhaps the trees could be conservatively trimmed back so the sight of the signs is improved. Mr. Nichols stated this has been and could be done again. He noted there are standard advance warning "stop" markings painted on the street because of this fact; the wavy lines would be an addition. Councilmember Mullen asked if the Committee discussed "Bots dots" as an alternative to the street markings? Mr. Nichols stated yes, but staff recommends against this due to possible liability if someone has an accident on a rainy night and claims they lost control of their car because of the dots. Councilmember Wuriu stated there are currently stop signs and stop markings on the pavement at these intersections. He does not see how anyone can miss them unless they are not paying attention. Nancy Bast, member of the Streets and Trees Committee, stated she brought this matter before the Committee because of complaints from citizens. She has witnessed people going through the signs without stopping several times. There is nothing visual that tells them to stop, and people trying to cross Morro Bay Blvd. have difficulty. The Committee favored the barricade -mounted stop signs, but when the Police Department recommended against it, decided the wavy lines were the next best thing. She noted the consensus on the Board is there is a problem; the fact there has been no accident is not indicative of no need. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 8 Councilmember Wuriu asked if she believes people are going through the sign because they are not aware, or just ignore it? Ms. Bast said because they are not aware; they are looking at other things. Kay Risley stated she lives on Piney Way and often crosses Morro Bay Blvd. at Piney Way. She frequently observes cars going through the stop sign, and they are usually coming from the High- way. She said the wavy lines would be helpful. Mayor Sheetz asked if there is a standard size of stop signs? Mr. Nichols stated a variety of sizes can be obtained; the stan- dard residential sign is 24 inches; the one at Piney Way is 36 inches and the one at Napa is 30 inches. Larger ones (48 inches) can be purchased. Mr. Nichols stated the original staff recom- mendation when these two intersections were being considered by Council for 4-way stops was against placing stop signs on Morro Bay Blvd. because no warrants existed. He believes the stop signs create an artificial condition because Morro Bay Blvd. is constructed so it looks like vehicles should proceed without stopping; it does not feel right for drivers to stop. Councilmember Baker commented if he came upon wavy lines in the street, it would not mean anything to him; many other people may have the same reaction. Councilmember Mullen said she lives on Pacific and drives Pacific to Piney Way in order to be able to cross Morro Bay Blvd. at a 4- way stop. She said many local people may not be used to stopping at these intersections; she sees people drift through the inter- sections 40% of the time, but she does not believe wavy lines are the answer. Mr. Nichols suggested maybe the problem is enforcement rather than engineering. Councilmember Wuriu said he is not ready for wavy lines; he sug- gested staff make a quick study to see if something else could be done to alert drivers. Mayor Sheetz suggested the Police Depart- ment monitor the intersections; perhaps it can be determined if it is a tourist or hometown problem. Councilmember Luna suggested the trees be tactfully trimmed, and the barricade stop signs be placed at the intersections during holiday weekends. Councilmember Mullen preferred a study now. She stated she can see the stop sign clearly. MOTION: Councilmember Luna moved the item be returned to staff, including the Police Department, for further study; and, the item return to Council by the second meeting MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 9 in September. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Ardith Davis reported on the County Board of Supervisor's action to conduct the election on City Measures A, E, and F, returning Measure G, the mandatory State Water Initiative, to the City for processing. She noted Council adopted Resolution No. 85-91 on July 30th which states if the County rejects Measure G for place- ment on the November 5th ballot, the measure shall be placed on the first Countywide consolidated election held in 1992, but no later than 30 June 1992. Ms. Davis said if Council is satisfied with this, no further action is necessary. If Council wishes Measure G to be incorporated into the November 5th election, direction must be given for the City to conduct the election itself. Councilmember Wuriu asked questions concerning the costs of Morro Bay holding its own election, to which Ms. Davis responded. Mayor Sheetz opened the hearing to the public for comments. Roger Ewing stated on July 30th the Council forwarded Measure G to the County Clerk; the County Clerk refused to accept it. Also at the July 30th meeting Mayor Sheetz and Councilmember Mullen declared publicly if the voters vote in favor of the advisory Measure F, they would support State Water. Measure G failed to qualify for the November ballot. Why should the citizens pay for the ineptitude of the proponents? He recommended Council deny the request. Ed Ewing read the City's Mission Statement to the Council. He said he has lived here 22 years and not one Council has been responsive to the public's needs. The initiative may have been late, but it will be $10,000 well spent. He said the City is going to be sued for not allowing people to build. He stated if Council does not allow this ballot to go forward, it will be their death knell. Ray Kaltenbach said $10,000 to $12,000 may not be a lot of money but Mayor Sheetz and Councilmember Mullen have agreed to go along with the majority's vote on the advisory Measure. He said if special interest groups do not get their way, they keep trying; he is tired of this. Mary Phillips, 2645 Ironwood, said no one ever mentions the con- stitutionality of anything. She stated 1,322 people requested Council put this matter on the ballot as a mandatory vote of the people. Councilmember Mullen said then if the proponents came MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 10 back with 1,200 signatures, Council would put the issue on the ballot for a special election. The easy way out is to put Mea- sure G on the ballot. John Lemons stated the Council did request the Board of Supervi- sors to put a ballot measure concerning increasing the transient occupancy tax on the ballot; and, the fact is the City did not receive a reply to the request until August 20th. The City also requested other measures, including Measure G, be placed on the same ballot; and, the City did not receive a reply on that request until August 20th either. He said when a petition is certified as qualifying for a special election, Council is required to place the matter on the ballot no less than 88 days, nor more than 103 days from that time. He said nothing in the law gives Council the authority to put the matter off until next June. Mr. Lemons said Council has an obligation to put the mat- ter on the ballot this November. Nothing in the law says any- thing about printing deadlines. He noted the City Administrator advised the Board of Supervisors he contacted an elections firm who informed him there would be no problem getting this matter before the voters by November 5th. He said it is a shame so many innovative things are being done to keep the will of the people from being expressed. Ann Freeman, 785 Cabrillo, said Council has the responsibility to consider not the subject of this ballot measure but the process. The proponents knew what the requirements were for submittal of an initiative petition. She said Council is responsible to the orderly process of government, and has a responsibility to treat all initiatives equitably. The process must be treated properly. Mayor Sheetz closed the hearing to the public. Councilmember Luna said the fact no other Council has done any- thing about current water problems is no fault of the present Council; they inherited the problem which has been with the City for many years. This is the first Council that has had the guts to do something about water; this Council approved construction of an emergency desal plant. He said he is perplexed by the attitudes of the proponents of Measure G when a majority of the Council has indicated it would abide by the majority of the vot- ers on the State Water advisory measure. Councilmember Luna stated he will also agree to comply with the majority's vote on the advisory measure. Councilmember Wuriu stated $10,000 to $12,000 is not actual out- of-pocket costs. He believes if the advisory State Water measure is successful, Council will vote in favor of State Water. How- ever, Council has been presented with a legally constituted ini- tiative requesting a binding vote, and the people who filed the petition thought it was going to be on the November 1991 ballot. He noted cities are supposed to commit for or against the State Water Project by December of this year. He believes the City MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 11 should make every effort possible to get the initiative on the ballot. Councilmember Mullen said she agrees in the past the City has done nothing about water; however, she has been on the Council for nine months and a temporary desal plant is being constructed. Council has reset its water project priorities to focus on con- servation, reclamation, and Lake Nacimiento. She voted for elim- inating State Water because she does not believe it will bring water to this city. However, she has given her word she will abide by the advisory vote. She did say if the people brought in an initiative in a timely manner, she would place it on the bal- lot. Councilmember Mullen said the proponents were aware of the deadlines involved; anyone else turning in a petition as late as this one would have to abide by the laws. Allowing the initia- tive to go forward at this late date will set a dangerous prece- dent. She is satisfied with the Resolution Council previously adopted. Councilmember Baker said early in June he proposed a binding vote on State Water be placed on the ballot; however, the majority of the City Council did not think it was necessary and instead placed an advisory State Water issue on the ballot. If Council had placed a mandatory State Water issue on the ballot at that time, Council would not have the problem with the County Clerk's timetable. He said the Council forced the proponents to go through the initiative process. He noted Mayor Sheetz stated the County's deadline to commit to the State Water will be postponed past December 30, 1991 because of lawsuits against the project. That lawsuit has been withdrawn and is no longer a factor. County Engineer Clint Milne appeared before Council and stated the State Water Project was the best solution to the City's water problem. Councilmember Baker said the election law is clear; if an initiative is presented, an election must be held within 88 to 103 days. The City should handle the election itself in order to ensure this item is the November 5th ballot. MOTION: Councilmember Baker moved the initiative petition (Measure G) on the State Water Project be placed on the November 5th ballot with the City conducting the elec- tion. The motion was seconded by Councilmember Wuriu and failed on the following vote: AYES: Baker, Wuriu NOES: Luna, Mullen, Sheetz Councilmember Mullen stated there is an advisory measure on the ballot regarding State Water and all Councilmembers have agreed to abide by the vote of the people. No action was taken on this item. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 12 D-2 RESOLUTION NO 101-91 APPROVING SPECIAL USE PERMIT FOR MOBILE ICE CREAM VENDOR IN RESIDENTIAL AREAS (dba FROZEN PLEASURES: CANDELA/HEINRICH. APPLICANTS) Councilmember Baker stepped down from discussion on this item due to a conflict of interest. Mr. Farrel stated the applicants, Christine Heinrich and Brian Candela, have applied for a Special Use Permit to allow ice cream sales from a vehicle on City streets; this action requires Coun- cil approval. He said the vehicle will operate only in residen- tial areas of the City, not commercial areas. He noted safety issues for motorists and pedestrians, possible city liability due to the use of public property, noise nuisance, and litter from product containers. The applicant has satisfied staff as to these concerns, and a resolution with conditions is proposed to approve the use. Mayor Sheetz asked why the item returns to the City Administrator for review after a year, rather than to the Community Development Director? Mr. Farrel stated the City Administrator normally approves special events held on City streets. Councilmember Wuriu asked if the applicants run any other busi- ness? Mr. Farrel stated not to his knowledge. Councilmember Wuriu asked where the ice cream vehicle will be parked? Pete Candela, one of the applicants, stated they are a family owned and run business. He said they have complied with all laws governing this type of use, i.e., health and safety, and will abide by traffic regulations. He said all food items will be pre -prepared and packaged. The music from the truck will be used in a respectful manner. Mr. Candela stated they have no control over the litter; the people disposing of articles are responsible. He said the vehicle will be parked at his residence on Trinidad. Councilmember Mullen noted the hours of operation allowed are 8:00 a.m. to dusk; she asked what hours he will operate? He said he does not intend to sell ice cream at 8:00 a.m. in the morning. He will run the operation in a respectful business manner; they plan to go through the streets twice daily. Councilmember Luna asked if there is a history of these type of uses in Morro Bay? Mr. Farrel stated no; Mayor Sheetz commented there used to be one ten years ago with no problem. Mayor Sheetz opened the hearing to the public for comments. Dale Mitchell stated he has enough invasion of his privacy in his neighborhood right now without adding this business to it which will create traffic safety problems, ding-a-lings, trash, and kids running around the streets. • • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 13 Nancy Hartwick, owner of TCBY Frozen Yogurt, stated she received a call from Councilmember Baker suggesting she appear and protest against this item since he is unable to do so due to his conflict of interest. However, she believes to prevent this business from operating would be unfair. If the applicant obeys the traffic laws, he should be allowed to conduct business; competition is good. Mel Williams, 180 Andros, stated ice cream trucks create prob- lems; there are some people who try to sleep during the day and will not be able to if the truck is playing music as it travels around town. He is not in favor of this application. Ray Kaltenbach stated he is in favor of the application; anything Councilmember Baker is against, he is for. Mary Phillips said to think of the children; they could get run over. Mayor Sheetz closed the hearing to the public. MOTION: Mayor Sheetz moved for the adoption of Resolution No. 101-91. The motion was seconded by Councilmember Luna. Councilmember Mullen said she was concerned about the one-year time limit for review; she believes six months would be appropriate. Councilmember Wuriu offered an amendment to the motion to require a 6-month review of the permit and condi- tions. The amendment was seconded by Councilmember Luna and the amended motion carried with Councilmember Baker abstaining. (4-0-1) Councilmember Baker resumed his seat on the Council. Council recessed from 7:43 p.m. to 7:56 p.m. Mayor Sheetz said she had a request from KSBY-TV for the Council to sing one of their numbers from the Variety Show; Council per- formed "Wait 'Till the Rains Come Down" to the tune of "Wait "Till the Sun Shines, Nellie". Mr. Napper stated there has been last minute correspondence on this issue and requested the City Attorney brief Council on the latest developments. Ms. Skousen stated she appeared in court this morning on a law- suit filed by Sonic against the City; they filed a Temporary Restraining Order attempting to restrain the Council from consid- • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 14 eying this matter tonight. Sonic alleged the Cable TV Franchise Board violated the Brown Act. She said the lawsuit is indicative of Sonic's cooperation in willing to sit down and discuss matters with the City. Ms. Skousen reviewed the current dispute between the City and Sonic. She said the TV Board did not violate the Brown Act; however, rather than incur expenses of a lengthy law- suit, the Act has a provision that if someone is accused of vio- lating it, the action can simply be taken again in the proper manner. She recommended the TV Franchise Board hold their hear- ing again, and make their recommendation to Council. She also requested Council direct staff to send notices in accordance with the Code to hold a hearing at the next Council meeting to com- mence revocation of the Franchise. Councilmembers Baker and Luna agreed with the City Attorney's recommendation. Councilmember Luna commented the City has enough costly lawsuits; the final outcome of re -holding the hearing will be the same. He said it is too bad Sonic is taking this route in trying to solve problems; filing a lawsuit does not help matters. Mayor Sheetz noted Judge Conklin made some comments in the news- paper recently regarding people in this County being "sue happy". MOTION: Councilmember Baker moved for approval of the City Attorney's recommendation with a hearing to consider revocation of the Cable TV Franchise be held on Septem- ber 9th. The motion was seconded by Councilmember Mullen and unanimously carried. (5-0) Councilmember Wuriu said he also hoped Sonic would try to work the problems out; he said presenting the City with a letter at 4:50 p.m. this afternoon does not indicate cooperation. • • v!v . � , • � . • • __�!7^ia��a�iw_;►1:C5i�:�:F�f�7•�� . • � _ v• ,e Councilmember Mullen stepped down from consideration on this item due to a conflict of interest. Mike Upton, Administrative Assistant, stated the Franchise between the City and Morro Bay Garbage Service (MBGS) expires December 31, 1991; and, the Solid Waste Management Board has been reviewing and developing recommendations for renewal of that agreement. The Board recommends Council authorize them to re- negotiate a franchise agreement with Morro Bay Garbage Service for refuse collection and curbside recycling for a 10-year, or possibly 5-year, term. He said the Board's recommendation is based on MBGS past services, major changes in solid waste manage- ment, and economies of scale due to MBGS' joint ownership of other refuse collection companies and the Cold Canyon Landfill. If Council approves the Board recommendation, they will negotiate the agreement with MBGS and return the agreement for Council approval in September. • 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 15 Councilmember Luna stated Attachment A lists other waste collec- tors in the County, and asked if any of them had submitted a pro- posal for waste collection that might be more cost effective? Mr. Upton stated no one has been asked to submit proposals. Councilmember Luna asked if Council approves the recommendation, what is the fiscal outlook of garbage services as to potential increases in next the five years? Mr. Upton stated garbage ser- vice operation rates have not increased since 1983; the increases to fees have been due to landfill and insurance requirements. He expects MBGS will hold rates to the minimum levels they have given us over the last year; however, costs may go up due to AB 939 State requirements. Councilmember Baker stated the SWMB recommended MBGS also handle the recycling end of solid waste; however, the City Administrator suggests otherwise. He asked if there is a reason why the SWMB recommends the recycling contract be retained with MBGS? Sandra Santini, Chairperson of the SWMB, said Morro Bay is in a diffi- cult position right now. It is in the process of receiving information from the State on AB 939 that there are going to be a lot of changes in the way solid waste is handled. If the regula- tions are not followed in a certain timeperiod, it will cost the City a lot of money. On the other hand, there is very little market for some of the recycled goods; i.e., newspaper. The City needs the assurance that whoever the contractor is will be able to handle the recyclables even if the market goes down; we have that with the present contractor. The SWMB believes the current contractor has performed very well. Morro Bay has one of the lowest costs for trash pick-up in the County. Ms. Santini said there have been very few complaints about MBGS since she has been on the Board. Different contractors for trash pick-up and recy- cling pick-up would pose logistical difficulties. All billing is through MBGS; more contractors means different charges by differ- ent vendors. Councilmember Wuriu asked if she is saying there should not be competition for the contract? Ms. Santini stated no, but the City has a good set-up that is costing very little; it should be regulated like a public utility. Councilmember Baker agreed with Ms. Santini and questioned staff on their recommendation for competition on the recyclables. Mr. Napper stated there is no problem with the existing collection service; however, in reviewing the proposed agreement, it says MBGS shall have first right of refusal for recyclables. He believes the opportunity for someone to make a proposal to the City on recyclables should be left open. He noted the changes now and in the future with regard to recyclable materials. Roger Ewing, member of the SWMB, stated when this item was before the Board, he did not understand curbside recycling could be sep- arate from trash pick-up. He said he is satisfied with the ser- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 16 vice by MBGS, but suggests Council open up the competitive bid- ding on the recycling portion of the contract only. He stated due to other contractors performing this service in the area, it might seem MBGS has a monopoly. He noted his suggestions repre- sent the opinion of only one member of the Board. Councilmember Wuriu commented he agreed with Mr. Ewing. Mary Phillips quoted from Abraham Lincoln regarding monopolies being odious, and stated MBGS has the garbage, recycling, and landfill businesses from Morro Bay. She said Morro Bay is subsi- dizing the garbage company to get into the recycling business. Ms. Phillips stated the Atascadero landfill has a 100-year capac- ity and is less costly than MBGS. Sandra Santini referred to the split up years ago of AT&T which resulted in attorneys getting wealthy and telephone bills going up. Sometimes it is an advantage to keep all things with one company. The City has an advantage here which it should not give up. Ron Bellarino, representing Steve Aslanidis of RALCCO, dis- tributed information about their recycling firm to Council. He said a lot of Ms. Santini's information is valid, but it is com- ing from a garbageman's perspective. He stated most recycling firms have been able to move recyclables even when the market is down. He said his firm has been in business for 30 years, and they are taking innovative steps with waste reuse. He encouraged Council to advertise for an RFP for recyclables and see what the market is. He asked if there has ever been a Request for Propos- als for recycling? Mr. Upton stated no. Kurt Kupper of ECOSLO stated there have been no proposals to the City because the City has never asked for them. There is no guarantee MBGS has to keep up with technology. He encouraged Council to keep the recycling contract separate from the garbage contract. The public needs to get away from the idea of throwing anything away. Ray Kaltenbach discussed recycling taking place in Oklahoma years ago; he knows it can be done. Mayor Sheetz closed the hearing to the public. Mayor Sheetz stated she supports separate contracts for recycling and garbage collection. There will be a lot of changes in solid waste handling in the next few years. She also was not in favor of signing a 10-year contract with MBGS. Councilmember Wuriu stated what Council has heard this evening should convince everyone of the need to contact companies in the business of recycling to learn what they are doing and becoming familiar with the state-of-the-art. Even though the present set- up is satisfactory, we may be able to do better. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 17 Councilmember Luna agreed. He asked if it is customary when con- sidering a contract to send out notices to possible garbage ser- vice contracts for a bidding process? Mr. Upton stated other cities have staff renegotiate the contract. State law allows the City to directly negotiate the solid waste franchise without going through the bidding process. Mr. Mapper stated Council can instruct staff to remove the one section of the franchise which would leave the recycling program open for competition. Mr. Mapper stated he is also recommending a 5-year term rather than 10-year contract in order to have maximum flexibility to meet with other cities in the County and perhaps all contract with one vendor for better service and costs when everyone's franchise expires in 1996. MOTION: Mayor Sheetz moved Council instruct staff to renegoti- ate a 5-year franchise agreement (with option to renew) with Morro Bay Garbage Services to include 9 of the 10- point recommendations of the Solid Waste Management Board, but with a new clause that curbside recycling collection services are non-exclusive rights and the City retains the right to entertain other providers of services for recycling. The motion was seconded by Councilmember wuriu. Councilmember Luna asked if this action will open the bidding process on recycling right away? Mr. Mapper stated it is showing Council intent to open up the bidding. There is no reason for Council cannot receive proposals; however, they could not award a recycling contract until the current franchise actually expires on December 31, 1991. Councilmember Baker said if the recycling is going out to bid, why not the whole contract? Mr. Mapper stated Morro Bay by itself might not generate enough interest for other contractors to bid. That is why he will be trying to work with other cities during the next five years for the refuse collection services. The motion carried with Councilmember Mullen abstain- ing. (4-0-1) Councilmember Mullen returned to her seat. • •: w• _.� Mr. Farrel stated at their last meeting, Council approved special water allocations for the Alta Morro Motel conversion project to condominium, and directed staff return with an amendment to the Water Table specifying the difference between motels with and without manager's quarters. The Ordinance is presented this evening for first reading. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 18 Mayor Sheetz opened the hearing to the public for comments; there were no comments and the matter was returned to Council. MOTION: Councilmember Baker moved Ordinance No. 406 be read by title and number only. The motion was seconded by Councilmember Luna and unanimously carried. (5-0) Mr. Napper read Ordinance No. 406 by title and number only. MOTION: Councilmember Wuriu moved for approval of introduction and first reading of Ordinance No. 406. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mr. Napper stated the County has been analyzing and preparing documentation during the past year to support imposing develop- ment impact fees on new construction within the County. He noted recent law gave the counties the ability to levy these fees if the respective cities where they will be imposed agree. Paul Hood stated he is a Principle Administrative Analyst for the County of San Luis Obispo and assigned the task of putting this program through the County and cities. He stated approximately one year ago, the County retained the firm of Recht Hausrath & Associates to prepare countywide development fees for capital facilities and to provide documentation to support the fees pur- suant to AB 1600. He said on August 20th, the Board of Supervi- sors enacted an ordinance giving them the authority to collect fees in the unincorporated areas of the County. These fees will be used to provide County facility needs up to the year 2010; the County population is projected to grow by 38% by 2010. Approxi- mately 61% of the County's population live within city limits, therefore, the majority of people who use County facilities are from the cities and impact County facilities. The fee, however, will only be assessed on new construction, namely those people who will impact the facilities in the future by moving into the County. Mr. Hood stated if the fees are not established, the public will see a deterioration of County facilities, such as jails, social services, highways. The property tax revenues are not growing at a rate to finance public facilities, and there will be a serious situation in the next few years if the County cannot accommodate new growth. Mr. Hood stated the options available to finance the facilities is limited. To increases taxes will take a 2/3 majority vote; it is not hopeful a measure would pass. In the last few years, the County has borrowed approximately $22 million and they are paying debt service on that, so borrowing is not an option. The only option is to establish a fee to get new development to pay its way. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 19 Mayor Sheetz asked if the new development fee in the amount of $2,650 might discourage new development? Bob Spencer of Recht Hausrath & Associates stated there have been more than 70 studies conducted throughout the State, and this question is often asked. Typically, it is more a situation where growth is being induced by economic factors. Market forces do more to affect the demand for housing than regulating programs such as a fee program. He said given the desirability of this area as a place to live and its relative affordability, there are going to be continued pres- sures for growth. He does not believe $2,650 will have a major impact on growth. Councilmember Wuriu asked why developers were chosen to pay this fee; what extra services will one house require? Mr. Spencer stated the fees will go to expand regional facilities such as parks, libraries, and transportation. New homes contain addi- tional people who will impact those facilities. Mayor Sheetz said Mr. Spencer mentioned jails as being impacted and noted the majority of the people incarcerated at the Califor- nia Mens Colony come from other areas of the State. Mr. Spencer stated CMC is not a County facility and is not included in the facilities impacted by new development. His reference is to County jails. Mayor Sheetz stated San Luis Obispo is now considered a metropolitan area rather than rural which will increase certain revenues by six times. These funds will be used on roads within San Luis Obispo County. She asked if this had been taken into consideration? Mr. Spencer stated his agency has worked through the Area Coordinating Council and it is the belief of County staff those funds will be required to maintain facilities which are already built; not accommodate new growth. Mayor Sheetz stated she is Chairman of the Area Coordinating Council and that was not her perception when this matter came before the Area Coordinating Council. Mr. Spencer reviewed the use of fees and restrictions according to State law. With regard to how citizens benefit from the fees, in Morro Bay's case Coleman Park and the Library are two facili- ties which need expansion in the future. He noted Morro Bay will be included in a North Coast Region; the County is divided into regions and assessed according to the facilities within the re- gion. The Master Plan calls for $3.3 million to be spent on the expansion of Coleman Park which contains 22 acres. The Library is slated for a 10,000 sq.ft. expansion; the County Library has no other funding sources without this facility fee in place. Councilmember Wuriu stated he has been involved with the Library for years, and he is not aware of any pressure to expand what is a fairly new library. Mr. Spencer stated the County Librarian informed him of the need. He noted the Library Master Plan developed by the County is the basis for establishing fees. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 20 Mayor Sheetz commented some people think Morro Bay has too many parks already. Councilmember Mullen stated this is long-range planning; although it is not an emergency now, in 20 years the City may need to expand. Mayor Sheetz was concerned the justifi- cation for the fees was an expanded park and library. Mr. Spencer stated development is going to occur. The people coming to San Luis Obispo County are going to use existing facil- ities and place an additional burden on them or new facilities are going to be built. They are recommending new development pay for the new facilities as development occurs. If the City does not need the new facilities, they can give development a free ride. Councilmember Baker asked how the County arrived at a determina- tion the majority of the use of County facilities is by people living in the cities? Mr. Spencer stated he has not completed a detailed study on the sources of demand for Sheriff's facilities; however, 61% of the people in the County live in incorporated cities, so it makes sense the majority of the demands on the facilities is going to come from cities. Councilmember Mullen stated a number of cities are also consider- ing implementing impact fees. She is concerned if the cities and the County require impact fees, it may add $5,000 to building a home in the cities; yet, the County areas will not be impacted by the cities' fees. Perhaps more people will move to the County areas thus impacting unincorporated area facilities more than cities. She asked if Mr. Spencer had noticed this trend in other cities, and asked if this is a rural development strategy for the County? Mr. Spencer stated this is a question asked recently by city managers; are fees going to be growth inducing in rural areas? He said in the County areas, the County has municipal - type facilities as well as general government needs. The Sheriff facility is an example of a service the County provides to rural areas which cities provide themselves. If the County added to cities what they will be charging to County areas, the fees for the cities would be double what is being proposed. The unincor- porated areas will be paying $5,500 to $6,000 per new residence, while the proposed charge to cities is $2,650. This is not an incentive to build in the unincorporated areas. Councilmember Mullen was concerned the County overhead will be difficult to justify; she asked why it was included? Mr. Spencer stated they considered existing space currently used by the County to provide services and determined cities (new develop- ment) should pay a proportionate share of the expansion of the facilities as growth occurs. Councilmember Mullen asked about the cars and building for County administration? Mr. Spencer stated general government facilities includes everything from animal regulation to engineer, emergency operation facilities, and social services. He said perhaps Morro Bay should not look 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 21 at the program as an "all or nothing" proposal; some facilities may be more important to Morro Bay than others. Councilmember Luna asked if the cities will have input to increased fees in the future; and, how will the fees be deter- mined from city to city? Mr. Spencer stated most attorneys believe the cities have to agree to impose the fees in order for the County program to be legal. The fees are the same because the facility standards are the same Countywide. If one large city decided to drop out of the program, the whole program may be legally undefensible. Councilmember Luna asked if a majority of the cities declining the participate could keep the program from operating? Mr. Spencer said a legal opinion will be required to answer that question. The County would prefer all cities be involved; one city declining to participate undermines the defen- sibility of the program. Paul Hood stated the County will not proceed with the program if one City says "no". Councilmember Luna asked what the timeline is for implementation? Mr. Hood stated County staff is hoping to have a status report back to the Board of Supervisors by their September 24th meeting. Staff is meeting with the various cities in the County this week and next week. He noted if the cities do not participate, the County will still go ahead with the fees in unincorporated areas. Mayor Sheetz opened the hearing to the public for comment. Ed Ewing said this is a bad idea; when the government is faced with a recession, they should not raise taxes. Builders already pay $13,000 for retrofitting and permit fees. Morro Bay will not get much out of the program because there is no building going on. He said Proposition 13 will be heard by the Supreme Court soon, and taxes will increase if it is declared void. Mayor Sheetz stated no action is required this evening; she thanked Mr. Spencer and Mr. Hood for presenting this matter. Councilmember Luna asked the status of a City study regarding AB 1600. Mr. Napper stated the City has contracted with D.M. Griffiths& Associates for this purpose. Louise Burt estimated three months before the matter will be before Council. Councilmember Baker agreed with the City Administrator's summary; he has reservations about approving the County impact fees. Mr. Napper stated until the cities develop their own impact fees and they can be considered along with the County's proposal, Council may want to delay action. He noted Mr. Hood said if one city does not agree to participate, they will not go ahead with the program; however, he believes there is legislation being con- sidered which may allow counties to impose these fees without cities' approval. Mr. Hood said Stanislaus County has imposed development fees, and is trying to convince other counties to do MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 22 the same so they will not be the only County with this fee; they have introduced the legislation two years in a row, but he doesn't think the County Supervisors Association is sponsoring it. Councilmember Wuriu asked if this program is connected to the problems realized from SB 2557? Mr. Hood stated it is totally separate; this consultant was contracted prior to the adoption of SB 2557. No action was taken on this matter. D-7 CONTINUED HEARING ON FINAL PROJECT COSTS TO ABATE NUISANCE OF ILLEGAL EXCAVATION AT 2590 LAUREL STREET. AND AUTHORIZA- TION TO LEVY NUISANCE ABATEMENT LIEN AND COLLECT PROJECT EXPENSES Judy Skousen stated this is a continued hearing to assess costs of nuisance abatement according the City's Municipal Code and the Government Code. The Finance Director has provided Council with documentation requested at the last meeting for the costs involved in the abatement proceedings. She noted only the costs of services provided by Madonna Construction have been broken down by lot. All other costs have not been assigned to the sepa- rate lots involved. She said staff maintains the abatement pro- ceedings were required as a result of construction work on 2590 Laurel; therefore, all costs should be assigned to that parcel. She stated Steve Carnes, engineer who designed the project, is present if Council has questions. Louise Burt stated from the Madonna Construction costs, she determined 86k% was assigned to 2890 Laurel, and 13.5% to 2895 Laurel. Using this as a guide, she estimates $210,944.79 of the costs relate to 2590 Laurel, and $32,922.02 relate to 2598 Laurel, for a total of $243,866.81. Dale Mitchell stated he does not have a copy of the supplemental material; and, according to the City's Municipal Code, the infor- mation has to be served on him five days before the hearing. He read from §8.140.090(E) of the Morro Bay Municipal Code. Ms. Skousen stated the original report was served on Mr. Mitchell according to law; the information provided to Council is supple- mental data requested by Council at the last meeting and is not required to be served to Mr. Mitchell or posted on the property. She disagreed with Mr. Mitchell as to the requirement of what has to be served; however, stated if Council wishes to postpone the item, there is no compelling reason to hold the hearing this evening. Mr. Mitchell stated he would like to review the mate- rial. Ms. Skousen served Mr. Mitchell with all the written information provided to Council. MOTION: Councilmember Mullen moved this item be continued to the next meeting. The motion was seconded by Coun- cilmember Luna and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 26, 1991 PAGE 23 l alNEWN_02im ol!1wy DE-"'00 E-1 GOVERNMENT CODE §54956.8. REAL PROPERTY NEGOTIATIONS A. VACANT CITY PROPERTIES ADJACENT TO 1320 MAIN STREET (dba BT AND THE DUCK) B. VACANT PRIVATE PROPERTY ON NORTH SIDE OF ATASCADERO ROAD ACROSS FROM "J" STREET (APN 65-182-008) MOTION: Councilmember Luna moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmem- ber Wuriu and unanimously carried. (5-0) Mayor Sheetz read the Closed Session statement. The meeting adjourned to Closed Session at 9:45 p.m. and returned to regular session at 10:05 p.m. F. ADJOURNMENT MOTION: Councilmember Mullen moved the meeting be adjourned. The motion was seconded by Councilmember Luna and unan- imously carried. (5-0) The meeting adjourned at 10:05 p.m. Recoord✓e�d, by: ARDITH DAVIS City Clerk E 4��) 4 56elal 9 a , l q q I - &Zue0V 6d4ut4 rH i MINUTES - MORRO BAY CITY COUNCIL/CAYUCOS SANITARY DISTRICT JOINT POWERS COMMITTEE MEETING - AUGUST 22, 1991 CITY HALL CONFERENCE ROOM - 3:00 P.M. Mayor Sheetz waited for members of the Cayucos Sanitary District to arrive, then called the meeting to order at 3:15 p.m. City of Morro Bay PRESENT: Rose Marie Sheetz John Baker Ben Luna Susan Mullen Tom Wuriu ABSENT: None STAFF: Gary Napper Judy Skousen Ardith Davis Nick Nichols Cayucos Sanitary District PRESENT: Henry Piaskowski ABSENT: R. Evan Dill E. Terry Schubert Tom Craig Pati Hutchinson Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney City Clerk Public Works Dir. Boardmember President Boardmember Boardmember Boardmember Mr. Piaskowski stated he is not present in an official capacity, he just happened to be in the area. PUBLIC COMMENT None Mr. Napper noted a quorum of the Morro Bay City Council is pre- sent; but a quorum of the Cayucos Sanitary District Board of Directors is not present. Mayor Sheetz stated a quorum of both sides is needed to act on the agenda items, but does not preclude those present from discussing the agenda. Councilmember Wuriu commented it is impossible to accomplish any- thing without the presence of Cayucos Board. Mayor Sheetz stated she sent timely notice to Cayucos of this meeting on August 14th, and received yesterday, August 19th, a MINUTES - MORRO BAY CITY COUNCIL/CAYUCOS SANITARY DISTRICT JOINT POWERS COMMITTEE MEETING - AUGUST 22, 1991 PAGE 2 FAX from Terry Schubert advising their Board could not attend this meeting. Mayor Sheetz stated a FAX was sent back to Cayucos advising the meeting scheduled for August 20th will take place as noticed since the JPA only requires a two-day notice and the City called the meeting and gave them eight days notice. Councilmem- ber Mullen questioned whether Terry Schubert, who is not the President of the Board of Directors, has the authority to cancel a meeting on behalf of the Board. She understands Mr. Craig is on vacation, but does not know why the other members are not present. Mr. Piaskowski indicated he had received the notice. Mayor Sheetz expressed extreme disappointment President Dill is not here; she believes he has a duty as presiding officer to attend legally called meetings. Councilmember Wuriu stated the arrangements for meeting has always been rather informal, and could not understand why a tele- phone call was not made by Cayucos Sanitary District representa- tives before 4:00 p.m. yesterday advising there was a problem with the meeting day. Councilmember Luna stated he was disturbed the City has made attempts to rectify complaints by Cayucos Sanitary District by agreeing to compensate them for property the City has used; and yet, cooperation is not forthcoming from the Cayucos Sanitary District. Councilmember Wuriu agreed; he stated Cayucos is only four miles down the road but are harder to communicate with than the Russians have with each other in their present crisis. Councilmember Mullen asked what the next step should be? Coun- cilmember Baker stated their letter suggests a meeting date next week and said why not meet with them? Mayor Sheetz stated the Cayucos Sanitary District Board seems to believe they can go directly to court to resolve differences rather than bringing in an arbitrator. Ms. Skousen stated the JPA between the City and the Cayucos Sanitary District is very clear an arbitrator is to be used to resolve differences. The Temporary Restraining Order they are seeking through court to stop the building of the City's temporary emergency desalination plant requires them to prove they are suffering irreparable harm from our building of the plant. Cayucos Sanitary District is saying the City violated the CEQA requirements and Coastal Act, which is simply not true. Councilmember Mullen asked what the City does if Cayucos does not attend a meeting? Ms. Skousen stated Council can call another meeting; if Cayucos continues to refuse to attend, the City can get an order to compel them, and the court can then appoint an independent person as arbitrator. MINUTES - MORRO BAY CITY COUNCIL/CAYUCOS SANITARY DISTRICT JOINT POWERS COMMITTEE MEETING - AUGUST 22, 1991 PAGE 3 There was discussion regarding the dates suggested by Cayucos Sanitary District for a meeting. Council decided to agree to meet with Cayucos on Tuesday, August 27th at 7:00 p.m. in the Cayucos Sanitary District office in Cayucos as suggested by their letter. Council also agreed to add the two other items to the agenda as requested by Terry Schubert. Mayor Sheetz asked if Mr. Lyons is handling this case pro bono for the Cayucos Sanitary District, or if the Cayucos citizens are paying legal fees to litigate against the City of Morro Bay? Mr. Piaskowski commented Cayucos' stopping the City's building of a desalination plant is a waste of time; the problems should be negotiated between the parties rather than ending up in court. He said if the Cayucos Sanitary District had a president that was interested, he should be here. He discussed problems Boardmem- bers had with schedules to attend this meeting. E. CLOSED SESSION MOTION: Councilmember Luna moved the meeting adjourn to Closed Session. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mayor Sheetz stated Council is adjourning to Closed Session in accordance with Government Code §54956.9(a), pending litigation, Cayucos Sanitary District vs City of Morro Bay, Case No. 70420 pending in the San Luis Obispo County Superior Court. The meeting adjourned to Closed Session at 3:35 p.m. and returned to regular session at 4:07 p.m. F. ADJOURNMENT MOTION: Councilmember Luna moved the meeting be adjourned. The motion was seconded by Councilmember Wuriu and unani- mously carried. (5-0) The meeting adjourned at 4:07 p.m. Recorded by: ARDITH DAVIS City Clerk 9 0 ,�;,2,� �o i 91 0 MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING - AUGUST 20, 1991 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Sheetz called the meeting to order at 5:03 p.m. PRESENT: Rose Marie Sheetz John Baker Ben Luna Susan Mullen Tom Wuriu ABSENT: None STAFF: Gary Napper PUBLIC COMMENT None. D. PUBLIC HEARINGS. REPORTS & APPEARANCES Mayor Councilmember Councilmember Councilmember Councilmember City Administrator Councilmembers interviewed Ken Maloney and Mary Jane Puett for the Recreation and Parks Commission; Louis McCann for the TV Franchise and Services Board; and Ann Freeman for the Water Advi- sory Board. MOTION: Councilmember Wuriu moved Mary Jane Puett be appointed to the vacancy on the Recreation and Parks Commission. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) MOTION: Councilmember Mullen moved Louis McCann be appointed to the vacancy on the TV Franchise and Services Board; and, Ann Freeman be appointed to the vacancy on the Water Advisory Board. The motion was seconded by Coun- cilmember Luna and unanimously carried. (5-0) F. MOTION: Mayor Sheetz moved the meeting be adjourned. The motion was seconded by Councilmember Luna and unani- mously carried. (5-0) The meeting adjourned at 5:50 p.m. GARY NAPPE14 Deputy City 0 alaal /a, /99/ City Of Morro iBa Y Y 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 12, 1991 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 JULY 22, 1991, AND THE ADJOURNED REGULAR MEETING OF JULY 30, 1991 A-2 STATUS REPORT ON CITY'S WATER SUPPLY CONDITION A-3 RESOLUTION NO. 93-91 SUPPORTING THE CALIFORNIA NATIONAL GUARD AND ITS EXISTING LEVEL OF FUNDING A-4 REPORT ON ISSUANCE OF ADMINISTRATIVE COASTAL DEVELOPMENT PERMIT FOR EMERGENCY REMOVAL OF TWO DEAD TREES DUE TO PINE BEETLE INFESTATION (341 PINEY WAY; CDP 23-91E) A-5 RESOLUTION NO. 86-91 AUTHORIZING ANNUAL RATIFICATION OF JOINT POWERS AGREEMENT FOR SAN LUIS OBISPO AREA COORDINATING COUNCIL A-6 ACCEPTANCE OF RESIGNATION FROM DOWNTOWN SIDEWALK SALES COMMITTEE (FRITCH) AND APPOINTMENT OF MICHAEL ARMSTRONG TO THE VACANCY A-7 PROGRESS REPORT ON INSTALLATION OF CITY DIRECTIONAL SIGNAGE PROGRAM AND ECONOMIC DEVELOPMENT ENHANCEMENT A-8 SET DATE (20 AUGUST 1991, 5PM) FOR INTERVIEW OF CANDIDATES FOR VARIOUS ADVISORY BOARD VACANCIES 1 6 A-9 RESOLUTION NO. 91-91 ACCEPTING RIGHT-OF-WAY DEDICATION ON VACANT CITY - OWNED PROPERTY ADJACENT TO 1324 MAIN STREET (PARCEL MAP MB89-428) B-1 ORDINANCE NO. 403 ADOPTING 1991 UNIFORM BUILDING CODES (SECOND READING/ADOPTION) C-1 WATER ADVISORY BOARD REQUEST FOR JOINT MEETING WITH CITY COUNCIL C-2 SUPPORT FOR INCLUSION IN "COASTAL" STATE SENATE, STATE ASSEMBLY, AND CONGRESSIONAL DISTRICTS ARISING FROM THE 1990 CENSUS REAPPORTIONMENT PROCESS C-3 RESOLUTION NO. 94-92 APPROVING ASSIGNMENT OF LEASE SITE 90/90W TO MS. EDNA EDDY (875 EMBARCADERO, AKA ABALONE UNLIMITED) C-4 RESOLUTION NO. 95-91 APPROVING LOW -INTEREST LOAN AND ASSOCIATED DOCUMENTS FROM CALIFORNIA DEPARTMENT OF BOATING AND WATERWAYS FOR RECONSTRUCTION OF SOUTH T-PIER D. PUBLIC HEARINGS, REPORTS & APPEARANCES D-1 ORDINANCE NO. 405 ESTABLISHING AUTHORIZATION TO HOLD CLOSED SESSIONS OF THE CITY COUNCIL PRIOR TO REGULAR MEETINGS (INTRODUCTION/FIRST READING) D-2 ORDINANCE NO. 404 REVISING SEISMIC SAFETY BUILDING MITIGATION PROGRAM (URM) TO INCORPORATE 1991 UNIFORM BUILDING CODE REQUIREMENTS (INTRODUCTION/FIRST READING) D-3 CONSIDERATION OF SAN LUIS OBISPO COUNTY AIR POLLUTION CONTROL DISTRICT'S DRAFT CLEAN AIR PLAN D-4 REQUEST FOR WAIVER OF CITY FEES TO ASSIST PROPOSED DEVELOPMENT APPLICATION FOR LOW-INCOME RESIDENTIAL HOUSING (J.H. EDWARDS, AGENT; SE CORNER OF MIMOSA AND HILL STREETS) D-5 RESOLUTION NO. 92-91 APPROVING ALLOCATION OF QUARTERLY AWARDS FOR SPECIAL BUILDING UNDER CITY'S ON -SITE CONVERSION BUILDING PROGRAM D-6 RESOLUTIONS NO. 87-91, 88-91, 89-91, AND 90-91 INITIATING PROCESS TO INCREASE PROPERTY OWNER ASSESSMENTS FOR CONSTRUCTION OF STREET IMPROVEMENTS (MIMOSA STREET ASSESSMENT DISTRICT) D-7 REQUEST FOR RECONSIDERATION OF WATER RATIONING PROGRAM FOR MOBILEHOME PARKS D-8 REPORT ON FINAL PROJECT COSTS TO ABATE NUISANCE OF ILLEGAL EXCAVATION AT 2590 LAUREL STREET, AND AUTHORIZATION TO LEVY NUISANCE ABATEMENT LIEN AND COLLECT PROJECT EXPENSES 2 0 E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.9(b)(1), SIGNIFICANT EXPOSURE TO LITIGATION E-2 GOVERNMENT CODE SECTION 54956.9(a), OASI V. CITY OF MORRO BAY E-3 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY NEGOTIATIONS (DEN-DULK/ COLEMAN DRIVE AREA, MORRO BAY DEVELOPMENT COMPANY) F. ADJOURNMENT COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. 33 0 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12, 1991 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. ft•3��;1��1 PRESENT: Rose Marie Sheetz John Baker Ben Luna Susan Mullen Tom Wuriu ABSENT: None STAFF: Gary Napper Judy Skousen Rick Algert Louise Burt Ardith Davis William Farrel Nick Nichols Steve Wolter Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Harbor Director Finance Director City Clerk Community Dev. Dir. Public Works Dir. Rec. & Parks Dir. Mayor Sheetz gave the invocation, and Councilmember Baker led the Pledge of Allegiance. Mayor Sheetz stated the City Council performed Saturday evening at the Chamber of Commerce Talent Show, and suggested Council sing one of their songs for the audience this evening. Council sang "Let's Take Another Vote" to the tune of "Let's Call the Whole Thing Off" which was appreciated by all in attendance. PUBLIC COMMENT 1. Suedene Nelson, Chamber of Commerce Executive Director, thanked Council for participating in the Talent Show and con- tributing to the success of the event. Mayor Sheetz congratu- lated Ms. Nelson for organizing the successful program. 2. Mary Phillips, 2645 Ironwood, said she attended a recent Solid Waste Management Board meeting where they discussed placing a lien on individuals' property for non-payment of bills. She referred to legal opinions by the City Attorney, and stated a service has to be provided before a lien can be placed against her property. • • mewwwow t8i :_ �. 1. Councilmember Mullen asked if the letter from the County Clerk declining to hold Morro Bay's election will be agen- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12, 1991 PAGE 2 dized? Mr. Napper stated it will be on Council's August 26th agenda. A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF JULY 22,, 1991, AND THE ADJOURNED REGULAR MEETING OF JULY 30, 1991 Mr. Napper recommended Council approve the minutes as submitted. A-2 STATUS REPORT ON CITY'S WATER SUPPLY CONDITION Mr. Napper recommended Council receive the report for file. A-3 RESOLUTION NO. 93-91 SUPPORTING THE CALIFORNIA NATIONAL GUARD AND ITS EXISTING LEVEL OF FUNDING Mr. Napper recommended Council adopt Resolution No. 93-91. A-4 REPORT ON ISSUANCE OF ADMINISTRATIVE COASTAL DEVELOPMENT PERMIT FOR EMERGENCY REMOVAL OF TWO DEAD TREES DUE TO PINE BEETLE INFESTATION (341 PINEY WAY; CDP 23-91E) This item was for information only; no action required. A-5 RESOLUTION NO. 86-91 AUTHORIZING ANNUAL RATIFICATION OF JOINT POWERS AGREEMENT FOR SAN LUIS OBISPO AREA COORDINATING COUNCIL Mr. Napper recommended Council adopt Resolution No. 86-91. A-6 ACCEPTANCE OF RESIGNATION FROM DOWNTOWN SIDEWALK SALES COMMITTEE (FRITCH) AND APPOINTMENT OF MICHAEL ARMSTRONG TO THE VACANCY Mr. Napper recommended Council accept the resignation from Kathleen Fritch, and appoint Michael Armstrong to the Downtown Sidewalk Sales Committee. A-7 PROGRESS REPORT ON INSTALLATION OF CITY DIRECTIONAL SIGNAGE PROGRAM AND ECONOMIC DEVELOPMENT ENHANCEMENT Mr. Napper recommended Council receive the report for file. A-8 SET DATE (20 AUGUST 1991, 5 PM) FOR INTERVIEW OF CANDIDATES FOR VARIOUS ADVISORY BOARD VACANCIES Mr. Napper recommended Council set Tuesday, August 20th at 5PM in the City Hall Conference Room to interview advisory board applicants. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12, 1991 PAGE 3 A-9 RESOLUTION NO. 91-91 ACCEPTING RIGHT-OF-WAY DEDICATION ON VACANT CITY -OWNED PROPERTY ADJACENT TO 1324 MAIN STREET (PARCEL MAP MB89-428) Mr. Napper recommended Council adopt Resolution No. 91-91. Councilmembers pulled Items A-1, A-2, A-3, and A-7 for separate discussion. MOTION: Councilmember Mullen moved for approval of the Consent Calendar with the exception of Items A-1, A-2, A-3, and A-7. The motion was seconded by Councilmember Luna and unanimously carried. (5-0) A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF JULY 22, 1991, AND THE ADJOURNED REGULAR MEETING OF JULY 30, 1991 Councilmember Luna requested the minutes July 22nd be amended on page 11 to include his request Mr. Milne to clarify an issue on the State Water Project. Specifically, if the project were even- tually maximized and there still wasn't enough water to supply to subscribers, would the percentage of subscription decrease to whatever was available; and, Mr. Milne's response. A-2 STATUS REPORT ON CITY'S WATER SUPPLY CONDITION Councilmember Wuriu stated Mr. Nichols states in his report the City will need the desal plant in the "near term", and asked what is meant by that; when will the plant be on line? Mr. Nichols said he cannot give a specific date when the plant will be needed; the contractor has advised the desal plant will be able to treat water the first week in September. A-3 RESOLUTION NO, 93-91 SUPPORTING THE CALIFORNIA NATIONAL GUARD AND ITS EXISTING LEVEL OF FUNDING Councilmember Mullen the military aspects of supporting the National Guard. Mr. Napper said the Guard does much more than military activities, but the Resolution intends to support that as well. Mayor Sheetz stated the National Guard prepared the Resolution themselves. A-7 PROGRESS REPORT ON INSTALLATION OF CITY DIRECTIONAL SIGNAGE PROGRAM AND ECONOMIC DEVELOPMENT ENHANCEMENT Councilmember Luna asked what the problems are with hanging signs on P.G.&E. light poles? Mr. Napper said they are concerned about the weight of the signs. Mr. Wolter stated P.G.&E. has a policy streets lights not be used for hanging signs. They are consider- ing a pilot project in Morro Bay; costs may be $50 to $60 for each sign as a one-time fee. Councilmember Luna also asked about the date CalTrans will hold a meeting on freeway signs and if a staff representative will be MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12. 1991 PAGE 4 there. Mayor Sheetz stated she has been handlinq that matter and will know the meetinq date by Wednesday. Councilmember Luna asked about the re-desiqn of the billboard on Highway 1 at the entrance to Morro Bay. Mr. Mapper stated it is a Chamber of Commerce billboard, but the Community Promotions Committee, Hotel and Motel Association, and the Merchants Associ- ation are all considering contributing to the re -design. It should be completed in approximately three months. Mayor Sheetz said it would be helpful if the sign was raised higher; the weeds tend to cover parts of it. Mr. Mapper said there is difficulty with CalTrans and the County because they do not actually want the sign there. It was grandfathered in because it was a use when new ordinances were adopted. MOTION: Councilmember Mullen moved for the approval of Items A-1 as amended, A-2, A-3, and A-7. The motion was sec- onded by Councilmember Wuriu and unanimously carried. (5-0) B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 403 ADOPTING 1991 UNIFORM BUILDING CODES (SECOND READING/ADOPTION) MOTION: Councilmember Baker moved Ordinance No. 403 be read by title and number only. The motion was seconded by Councilmember Luna and unanimously carried. (5-0) Mr. Mapper read Ordinance No. 403 by title and number only. MOTION: Councilmember Baker moved for the adoption of the sec- ond and final reading of Ordinance No. 403. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) C. NEW BUSINESS C-1 WATER ADVISORY BOARD REQUEST FOR JOINT MEETING WITH CITY COUNCIL Mr. Mapper stated the Water Advisory Board has requested a joint meeting with the Council to clarify their purpose, authority and need for continuance as an advisory body. He stated there is one vacancy on the Board, and suggested Council set the joint meeting after August 20th, when Council will be interviewing applicants, so the new member may benefit from the joint meeting. Council set Thursday, August 29th, at 5:00 p.m. for a joint meet- ing with the Water Advisory Board. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12, 1991 PAGE 5 Councilmember Wuriu commented an advisory board is just that; they advise Council. They do not have decision making powers; that is up to the City Council. Mr. Napper stated Council can adjourn from their next meeting to a joint meeting with the Water Advisory Board; by that time a location to hold the meeting will have been selected. C-2 SUPPORT FOR INCLUSION IN "COASTAL" STATE SENATE, STATE ASSEMBLY, AND CONGRESSIONAL DISTRICTS ARISING FROM THE 1990 CENSUS REAPPORTIONMENT PROCESS Mr. Napper said the State Assembly, Senate, and U.S. Congres- sional districts are re -set every 10 years after a census. He noted Morro Bay has in the past been included in an Assembly and U.S. Congressional district which primarily involves coastal areas. Our Senate district, however, also covers large portions of the San Joaquin Valley; their inland interests and concerns are very different from Morro Bay's coastal issues. He suggested Council endorse the concept of including Morro Bay in a "coastal" State Senate district, and support our retention in "coastal" Assembly and U.S. Congressional districts. Mayor Sheetz commented when Senator Maddy was in town recently, he brought this subject up and was confident the district lines were going to be changed and thought Morro Bay might be combined with Santa Barbara. She said this item will be discussed at the Area Council meeting on Wednesday for a recommendation to the Board of Supervisors to maintain a coastal district. MOTION: Councilmember Luna moved Council endorse the concept of including Morro Bay in a "coastal" State Senate dis- trict; and, support the retention of Morro Bay in "coastal" districts for U.S. Congressional and State Assembly representation. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) C-3 RESOLUTION NO. 94-92 APPROVING ASSIGNMENT OF LEASE SITE 90/90W TO MS. EDNA EDDY (875 EMBARCADERO. AKA ABALONE UNLIMITED) Mr. Algert stated Abalone Unlimited has been operating this lease site since 1986, and the City has experienced financial difficul- ties with the lessee previously. In addition to being seriously past due on lease payments at the current time, the lessee has failed to make payments on a private noted secured and foreclosed by Mrs. Edna Eddy, a previous lessee of this site. Ms. Eddy has brought past due rent payments up to date through June 30, 1991, and is presently in the process of evicting Abalone Unlimited Research from the lease site. Ms. Eddy has provided sufficient documentation to prove her assumption of the lease, and the lease agreement requires the City to approve an assignment through foreclosure on a note where the lease is the secured interest. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12, 1991 PAGE 6 Ms. Eddy is requesting the City allow her 90 days to sell the lease site before initiating collection on the semi-annual pay- ment on the site which was due July 1st. She has no desire to operate the lease herself, has exhausted her assets in making past -due payments, and is in the process of finding a purchaser for the site. He recommended Council adopt Resolution No. 94-91 which approves the assignment of the lease to Ms. Eddy, and allows a 90 day extension for payment of lease rents. Councilmember Baker asked if Abalone Unlimited is defunct? Mr. Algert stated they are in financial difficulties, but he cannot comment on their legal status or complete financial picture. He noted they still have their abalone processing plant in Guadalupe. MOTION: Councilmember Mullen moved for the adoption of Resolu- tion No. 94-91. The motion was seconded by Councilmem- ber Baker and unanimously carried. (5-0) C-4 RESOLUTION NO. 95-91 APPROVING LOW -INTEREST LOAN AND ASSOCI- ATED DOCUMENTS FROM CALIFORNIA DEPARTMENT OF BOATING AND WATERWAYS FOR RECONSTRUCTION OF SOUTH T-PIER Mr. Algert stated in 1990, Council directed staff apply to the California Department of Boating and Waterways for a loan to reconstruct the South T-Pier. Boating and Waterways approved a loan on July 20th for up to $2 million for this purpose; the funds will be available 30 days after a signed loan agreement is returned to the City, and the City is under no obligation to draw the entire amount. He noted the T-Pier project has just gone out to bid; bids are due on September loth. He reviewed the terms of the loan. He noted one provision of accessing the loan is the improvements must be available equally to all parties on a rea- sonable basis; the City cannot specify the South T-Pier for com- mercial fishing vessels only. Mr. Algert stated the City also received a $1 million insurance settlement for the South T-Pier fire which leaves the City with several options for accessing these monies. He outlined the options and stated the staff recommendation is to use the low - interest loan from the Department of Boating and Waterways to rebuild the South T-Pier and existing boat slips at Anchor Park; and, allocate $250,000 of the $1 million T-Pier settlement monies to construct Phase II of Tidelands Park. The Boating and Water- ways loan is restricted; whereas, the settlement monies are unre- stricted. The allocation to the Tidelands Park project will gap - fund that project in order to save grant monies allocated from the State. He also noted other harbor projects the remaining insurance money could be use for. Mr. Algert stated the Harbor Advisory Board's recommendation was to utilize the $1 million insurance money to rebuild the T-Pier and access the Boating and Waterways loan monies as needed. They also recommended the remaining DBW loan monies be used for reha- r MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12, 1991 PAGE 7 bilitation of the Anchor Park and Tidelands Park slips, and "waterside improvements" to the Tidelands Park area. Councilmember Baker asked if $250,000 of the insurance settlement monies can be used for Tidelands Park, why not use them for other items such as a ladder truck for the Fire Department? Mr. Napper stated the funds are derived from the Harbor jurisdiction. Right now, the Tidelands Park project has grant monies, park -in -lieu fees, and general fund monies and still needs $250,000 to com- plete the project. The deadline to access the grant monies is June 1992, and there was no solution to save the grant funds until the insurance money became available. Councilmember Baker asked if it is possible to loan the monies to the Tidelands Park project? Mr. Napper stated yes; however, questioned from what source it would be repaid? He advised against encumbering the Harbor Funds with a large debt service. Councilmember Wuriu asked to hear from a member of the Harbor Advisory Board; the Board appears unanimous in their recommendation. Mayor Sheetz stated she talked with Boardmember Jody Giannini and his primary concern is the funds stay within the harbor budget, and not used for other parts of the community. She noted the DBW loan has to stay in the harbor and if the City does not gap -fund the Tidelands Park project with the insurance monies, it will lose grant monies. She said some of the DBW loan can also be used for the reconstruction of the harbor entrance. The staff recommendation gives Council the opportunity to solve a number of problems. Councilmember Mullen asked to hear from Harbor Advisory Board Chairman Bob Warren. She said she also talked to Mr. Giannini and his fear is the $250,000 for Tidelands Park could disappear. Mr. Algert stated there is a budgetary enterprise fund and all revenues generated in the Tidelands area must be spent in the Tidelands area. Mr. Napper stated the insurance monies are unre- stricted funds; however, the recommendation is to keep it in the harbor fund. Bob Warren, Chairman of the Harbor Advisory Board, stated the Harbor Advisory Board looked at this item from a different view- point than Council. When considering the use of the insurance settlement of $1 million for the South T-Pier fire, the Harbor Advisory Board recommended those monies be spent on its recon- struction. The DBW loan can be used for piers and slips. They did not consider the commitments on Tidelands Park. He recog- nizes, however, the City has broader problems. Nancy Bast stated City ordinance states any construction North of Beach Street has to be for commercial fishing only. The restric- tion on the DBW loan is the City cannot discriminate against MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12, 1991 PAGE 8 those who use the pier. Mr. Napper stated the Ordinance exempts replacement of structures which this is. Mayor Sheetz commended Mr. Algert in accessing this loan for the City. MOTION: Mayor Sheetz moved for the adoption of Resolution No. 95-91. The motion was seconded by Councilmember Mullen. Councilmember Baker asked how the loan will be repaid? Mr. Algert stated he estimates there will be substantial monies from lease revenues to repay the loan. Mayor Sheetz amended her motion to include allocating $250,000 of $1 million T-Pier settlement monies to con- struct Phase II of Tidelands Park, and place the remaining balance of $750,000 into reserve for future waterfront needs. Councilmember Mullen accepted the amendment. Councilmember Luna asked if the loan is only available for a cer- tain period? Mr. Algert stated yes, until August 1994. The motion was unanimously carried. (5-0) D. PUBLIC HEARINGS, REPORTS & APPEARANCES Mr. Napper stated Council, at their last meeting, directed an ordinance be prepared to allow closed sessions to be held at 5:15 p.m. prior to the 6:00 p.m. Council meetings. The proposed ordi- nance allows another location (City Hall Conference Room) to con- duct the closed sessions, and establishes closed sessions begin at 5:15 p.m. prior to regular Council meetings. Mayor Sheetz opened the hearing to the public for comments on the ordinance. Bruce Risley commented changing the start of Council meetings to 7:00 p.m. is a good idea. Mary Phillips agreed with Mr. Risley. She said the current time does not give the working man time to get home and to the meeting by 6:00 p.m. Meetings used to start at 8:00 p.m. Mayor Sheetz closed the hearing to the public. Councilmember Wuriu stated he is in favor of the ordinance, but also agrees with the speakers that regular Council meetings should begin at 7:00 p.m. The reason the meeting time was 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12, 1991 PAGE 9 changed to 6:00 p.m. was because meetings were going past mid- night. Due to well run meetings, this is no longer a problem. MOTION: Councilmember Mullen moved Ordinance No. 405 be read by title and number only. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Napper read Ordinance No. 405 by title and number only. MOTION: Councilmember Baker moved for approval of introduction and first reading of Ordinance No. 405. The motion was seconded by Councilmember Luna and unanimously carried. (5-0) Mr. Farrel stated Council recently Regulations to lengthen the initial time, staff indicated it would also ordinance to incorporate the current for Building Conservation which requirements for seismic retrofits. that purpose. amended the Seismic Safety compliance period. At that be appropriate to amend the version of the Uniform Code establishes the structural This ordinance accomplishes Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. Councilmember Baker asked if this ordinance will eliminate the need for some URM buildings to take action to comply with the code? Mr. Farrel stated he is not sure, but hopes it will. MOTION: Councilmember Baker moved Ordinance No. 404 be read by title and number only. The motion was seconded by Councilmember Luna and unanimously carried. (5-0) Mr. Napper read Ordinance No. 404 by title and number only. MOTION: Councilmember Wuriu moved for approval of introduction and first reading of Ordinance No. 404. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mr. Farrel stated the California Clean Air Act requires Clean Air Plans be developed by mid-1991 to meet ozone standards. San Luis Obispo County has been designated by the State Air Resources Board as an area with an ozone pollution problem. The San Luis Obispo County Air Pollution Control District has prepared a draft plan which is before Council this evening for comments. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12, 1991 PAGE 10 Staff has reviewed the Plan and their comments are included in the staff report. He noted implementation of the Plan will cause inconveniences, unwanted costs, and delays; and will affect everyone. Councilmember Mullen stated she is still reading the report, but it does not say how it will impact the citizens of Morro Bay. She asked if Mr. Farrel has any comment on daily life changes? Mr. Farrel stated it will impact us locally by having to only purchase products that do not impact the ozone; employers will be asking their employees to ride -share; there may be costs for retrofitting various things in the home. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the item was returned to Council. Mayor Sheetz stated since most Councilmembers are still in the process of reviewing the Plan, perhaps individual responses could be forwarded to the Community Development Director within the next week for inclusion as comments to the County Air Pollution Control District. Council agreed. D-4 REQUEST FOR WAIVER OF CITY FEES TO ASSIST PROPOSED DEVELOP- MENT APPLICATION FOR LOW-INCOME RESIDENTIAL HOUSING (J.H. EDWARDS, AGENT; SE CORNER OF MIMOSA AND HILL STREETS) Mr. Napper stated this is a request from Mr. Edwards for waiver of City fees before filing a development application on an affordable housing project. Jeff Edwards stated he represents the applicant who has completed a number of items toward this project: a topographic survey of the property, retained an architect to prepare submittal drawings and documentation, and is prepared to go forward with an archaeo- logical survey. One of the large costs involved in this project is the City fees for processing the application. These fees involve mostly staff time. He is asking the City to share in the costs of the affordable housing application by donating the staff time which is not an out-of-pocket expense. He noted the County Clerk requires a $25 fee for an environmental determination which the applicant would not expect the City to pay, or others fees like it. He noted Council has historically supported affordable housing, and requested they grant the request for fee waiver for this project. Councilmember Luna asked if the reason he is asking for the fee waiver is because the project is low-income housing? Mr. Edwards stated yes, the City's Municipal Code offers a number of incen- tives to affordable housing projects. He said it is costly to assemble a package in today's economic climate, and the City fees are a significant portion. Councilmember Luna asked what the definition of affordable hous- ing is? Mr. Edwards stated the State Department of Finance puts MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12, 1991 PAGE 11 out figures annually; the price is based on the number of persons in a household and number of bedrooms. Effective May 20, 1991, the maximum sales price for 2-bedroom units was $76,200 for lower income housing. Under low- and moderate -income, a 2-bedroom unit is $114,300. The income limits on a household size of four indi- viduals on the lower income limit is $30,500; the low- and moder- ate -income figure is $45,700. Mayor Sheetz asked when he plans to make application to the City? Mr. Edwards stated if he receives favorable consideration this evening, they will ask the architect to begin plans and probably make application within a 90-day time frame. Councilmember Baker questioned the financing of a project if the $2500 City fees make it infeasible to build. Mr. Edwards stated the applicant does not have a great deal of finances, and the ability to obtain financing is consistent with approvals. Mr. Napper stated there is not enough information to tell whether approvals for this project will be granted. Staff suggests Coun- cil encourage low-income housing for bonafide projects. The time for Council to consider waiver of fees is when an application is before them, at which time Council could approve a refund of City fees. Councilmember Wuriu commented there are usually only two reasons anyone is interested in low-income housing: a compelling desire to help improve the housing situation, and to jump ahead on the water list and obtain the concessions to allow one to build. He asked if Mr. Edwards has a record of being involved in low-cost housing? Mr. Edwards stated he has done a number of projects in Los Osos one of which has incorporated some affordable housing into it by condition. The motivation is probably a combination; the property owner in this case wants to do something with their land and wishes to access the opportunities afforded through the City's program on low-income housing. Councilmember Mullen stated she is a major proponent of afford- able housing, but is concerned Council approval of fee waiver is tacit approval of the project which she cannot support at this point. The project needs to go through the planning process before she will consider waiving fees. Mr. Edwards commented there is a question whether the property owner would be developing the project in question; he may sell it. Councilmember Mullen asked if there is a precedent for this type of waiver ahead of project submittal? Mr. Napper said the City assisted with People's Self -Help Housing through the grant project. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12, 1991 PAGE 12 Mr. Edwards stated creating an incentive is the key; the land use climate in Morro Bay is uncertain and people are looking for some degree of certainty; he requested Council grant the waiver. Mr. Farrel stated he believes in order to move up on the water priority list the project must be low- and very low-income, and not moderate -income housing. Mayor Sheetz opened the hearing for comments from the public. Randy Ruff asked if the fee waiver is granted and the project fails to meet standards, what happens then? Does Council try to go back and charge the applicant for the fees or place a lien on the property? Could the donation be recovered? Mary Phillips commented on the figures for low cost housing. Mayor Sheetz closed the hearing to the public. Mayor Sheetz stated she believes Council is not in favor of granting relief to the applicant. She suggested he bring forward a project and then Council can consider a fee waiver. Councilmember Baker commented Council is very much in favor of low-cost housing. Council recessed from 7:45 p.m. to 8:00 p.m. D-5 RESOLUTION NO. 92-91 APPROVING ALLOCATION OF QUARTERLY AWARDS FOR SPECIAL BUILDING UNDER CITY'S ON -SITE CONVERSION BUILDING PROGRAM Mr. Farrel stated Council adopted an ordinance which allows for conversion of non-residential uses to residential uses where no new water equivalencies are required; and, subsequently adopted a resolution approving a Special Building Allocation in accordance with the ordinance. At this time there is only one project eli- gible to receive an allocation, and this is A.J. Wright's Alta Morro project of 14 condominium units. Mr. Farrel stated the 14 unit project requires 9 water equivalen- cies and the property is only entitled to 8.82 water equivalen- cies. Council can either approval the project for only 13 units at this time, or direct staff to amend the Water Table to allow .50 water equivalencies for a motel manager's unit which will then give them the 9 units of water necessary for the project. He said staff recalculated the average water use in motels and .48 water equivalencies per unit is appropriate for motels with- out manager's quarters, but .50 should be allowed for motels with manager's units. Mayor Sheetz opened the hearing to the public for comments. MINUTES - MORRO REGULAR MEETING PAGE 13 BAY CITY COUNCIL - AUGUST 12, 1991 Tom Courtney, project architect, Farrel's recommendation. stated he concurs with Mr. Nelson Sullivan said it is his duty to remind Council they are breaking the law with this new ordinance and the effort being made tonight. No matter how it is packaged, Council is allocat- ing water to new building for a new or different use. The Coastal Development Permit, Measure F, and Measure I state allo- cation of water has to come from conservation. Pipeline replace- ment and retrofit are the only two ways to earn water. He said the motel use on this site did not use as much water as the con- dominium project will. Mayor Sheetz closed the hearing to the public. Councilmember Baker asked if 14 units could be allowed if Council changes the Water Equivalency Table? Mr. Farrel stated yes; the proposed resolution allow the 14 units based on Council's deci- sion to amend the Water Table; the applicant will not have to come back to Council for the additional .50 unit. Mayor Sheetz said when Council was working on the Water Table, she believes there was confusion, and Council did not want to make the ordinance impossible to implement. She supports the staff recommendation. The project is not in a visitor serving area, but more of a residential area. It will increase property values and add additional housing to the City. It also allows the opportunity for building activity in Morro Bay. Councilmember Wuriu stated he also favors the staff recommenda- tion. He believes effort needs to be made within the bounds of prudence as far as water is concerned, and Council should do what they can to improve housing and help improve the general nature of business. Councilmember Mullen stated she supports the resolution, however, would like to strike the exact unit number until such time and if the Council amends the Water Table; this is putting the cart before the horse and assumes Council is going to approve the change in the Water Table. MOTION: Councilmember Baker moved for the adoption of Resolu- tion No. 92-91, and place on a future agenda an amend- ment of the water table to allow motel units with man- ager's quarters .50 water equivalency per units. The motion was seconded by Councilmember Wuriu. Councilmember Luna stated he will support the motion; however, is concerned about approving projects in the future which are just short of enough water equivalencies. He is in favor of this one based on staff explanation. The motion carried with Councilmember Mullen voting no. (4-1) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12, 1991 PAGE 14 PROCESS TO INCREASE PROPERTY OWNER ASSESSMENTS FOR CONSTRUC� TION OF STREET IMPROVEMENTS (MIMOSA STREET ASSESSMENT Mr. Nichols stated in 1987 the City Council adopted a resolution at the request of property owners to construct street improve- ments on Mimosa Street. This also involved acquiring rights -of - way through eminent domain proceedings. That project has been trying to move through the process, but delays have occurred and the costs have escalated. Now the project does not have enough money to be completed, and it is necessary to increase the assessment. This requires Council to go through a process of notifying property owners of a hearing date so they will have the opportunity to say whether they wish to continue with the pro- ject. The date set for the hearing is September 23rd. Terry Orton, project engineer, reviewed the causes for delays in completion of the project: 1) mitigation costs to the environmen- tal concerns raised by the archaeologist; 2) costs due to fluctu- ating costs of labor, oil and other products for the construction of the project; and 3) over -runs in costs for legal and archaeo- logical work. Mr. Orton reviewed the costs in detail. The cost for the project is now $282,000 from the initial estimate of $168,000. Mayor Sheetz stated she has been contacted by individuals upset with the City for the delays and costs regarding this project; however, the City is not constructing the project, only adminis- tering the assessment district. Mr. Orton stated the scope of the work has changed due to the necessity of constructing a storm drain above -ground because of archaeological concerns. Mayor Sheetz opened the hearing to the public for comments. Chet Amyx stated he lives on Mimosa and is disappointed the pro- ject is not completed. He asked Council to look into the project carefully to see why it has not been completed. Twila Breen, property owner on Mimosa, stated she believes it is a legal requirement assessment district funds be kept in a sepa- rate account; she asked if they are in the City's General Fund instead? Ms. Burt stated the funds are in a separate account, although the money is investment jointly with other City monies, interest is given back to the account in quarterly installments. Ms. Breen stated she is supposed to receive a statement on where the money is coming from and where it has gone, but has not received this information. Ms. Burt stated she forwarded a report to Westland Engineering. There was discussion regarding communication of assessment district activities to the property owners. Mayor Sheetz requested a formal procedure be set up to let them know what is going on. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12, 1991 PAGE 15 Ms. Breen said normally an assessment district requires a member of the people paying for the assessment district to be on the panel who decides where the money is going and that person noti- fies other property owners what is going on. Ms. Skousen stated her understanding is a board consisting of the property owners hire an attorney and engineer to keep track of the project. Everything is done according to law. Ms. Breen stated she does not believe the property owners hired the attorney and engineer; the City took over the assessment district and hired them. Mr. Nichols explained the City's involvement in the process. Ms. Breen said the City has taken the decision on the assessment dis- trict away from the property owners. The project was supposed to be completed in 1989, and it is now 1991. Ms. Breen stated she also represents her sister and Mr. Atchley, both property owners on Mimosa. Councilmember Wuriu asked what Ms. Breen would like right now? Ms. Breen said she wants to know what the property owners are going to get for their money, what has happened to the money already spent, and what is in the account currently. She also asked what happens to the excess money, if there is any, at the conclusion of the project? Ms. Skousen stated by law, the City could keep it for further maintenance, but would suggest Council return any excess funds. The estimate is to recover costs; not to gain additional funds. Mayor Sheetz said she has no problem with returning excess funds. Ms. Breen asked what happens if the property owners choose not to contribute to the additional assessment? Ms. Skousen stated if there is sufficient protest, Council can either abandoned the district or over -rule the protests and assess the property own- ers; it will take a 4/5ths vote of Council to over -rule the protests. Councilmember Luna asked how a $114,000 error in the estimate was made? Mr. Orton stated it was not an error; the archaeological work has been a major problem because Indian remains were found on the site. He reviewed other items attributed to the increased cost. Mayor Sheetz closed the hearing to the public. Councilmember Mullen stated she is concerned about the poor com- munication to the property owners. She suggested Mr. Orton cre- ate a newsletter to keep the property owners up-to-date. She asked if the information presented to Council this evening has gone to all property owners? Mr. Orton stated no; that is what this meeting is for, to set the date for a hearing to apprise the property owners of the increases and give them an opportunity to protest. 0 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12, 1991 PAGE 16 Mayor Sheetz stated in order to get the project moving, Council needs to adopt the resolutions presented this evening. She requested Ms. Burt prepare a financial statement of the assess- ment district account, and Mr. Orton establish better communica- tions with the property owners. MOTION: Mayor Sheetz moved in the event there are any residual funds at the end of the project, they be returned to the property owners. The motion was seconded by Coun- cilmember Mullen and unanimously carried. (5-0) The Resolutions proposed are as follows: Resolution No. 87-91 of Intention to Levy Supplement Assessments; Mimosa Street Supplemental Assessment District Resolution No. 88-91 of Preliminary Approval of Supplemental Engineer's Report Resolution No. 89-91 Appointing Time and Place of Hearing Protests in Relation to Proposed Supplemental Assessment and Directing Notice Resolution No. 90-91 Describing Proposed Boundaries of Supplemen- tal Assessment District, Directing Filing of Map and Direct- ing Recordation of Notice of Supplemental Assessment MOTION: Councilmember Luna moved for the adoption of Resolu- tions No. 87-91, 88-91, 89-91, and 90-91. The motion was seconded by Councilmember Mullen and unanimously carried. (5-0) D-7 REQUEST FOR RECONSIDERATION OF WATER RATIONING PROGRAM FOR MOBILEHOME PARKS Mr. Napper stated Council previously approved transferring mobilehome parks from the commercial water rationing category to a new residential category allowing them 5 units of water per month per space; their limit was previously 2.76 units. The Blue Heron Terrace Homeowners Association has requested Council recon- sider their action, and allow them 7 units of water per space per month which is the amount allowed to apartment units. Mayor Sheetz opened the hearing to the public for comments. Charles Bates, 475 So. Bay Blvd., presented a petition to Council requesting the homeowners of the Blue Heron Terrace (BHT) Mobile Home Park be given seven units of water per month per space, the same as that allowed for multi -family units. Ernest Price, 475 So. Bay Blvd., said he rents his space at the BHT, but owns the mobilehome. He said Council is treating mobilehome owners as second class citizens. As single family MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12, 1991 PAGE 17 residents, they should be entitled to nine units of water, but are only asking for seven. Ann freeman, 785 Cabrillo, stated Council is amending the Water Table to accommodate a private developer; these people should be treated with the same courtesy and concern. Mr. Van Heuver said approximately 60 permanent homeowners would like to be considered as equal citizens of Morro Bay; they are not asking for special interest, special treatment, or more water than any other resident. Five units is not fair. If one rents a one -bedroom apartment, he is allowed seven units of water; how- ever, because an individual has an investment in a mobilehome park, they are granted only five units of water. He said the five units was based on a general interpretation of historical data prepared by the Finance office and ignores the specific data. There are twenty mobilehome parks in Morro Bay; 18 of those average less than 2k units of water per home per month, but they are rewarded by the allowance of five units. Bruce Risley said Council's review of this item at a previous Council meeting was very short and inconsiderate. Council should reconsider this matter; the people have a legitimate grievance. Nancy Bast said it is clear this mobilehome park is not in the classification of most of the other ones in the City. The park is a residential community and some kind of specific rule for them is justified. Mayor Sheetz asked if there are any travel trailers in the BHT? Mr. Price stated there are two spaces for travel trailers. Mayor Sheetz asked what the capacity of the park is? Mr. Price stated 71 spaces. Dale Heryford, 475 So. Bay Blvd., stated he and his wife are out of town citizens and spend summer in Morro Bay; they have been commuting for 22 years. They believe they should be allocated as much water as anyone else. They follow the rules and should be treated the same. Mayor Sheetz closed the hearing to the public. Councilmember Luna said he has met with some of the tenants regarding this matter. He said he lives in a 900 sq.ft. home which is probably smaller than some of the mobilehomes, and he is allowed nine units of water. Councilmember Mullen suggested creating a Class A and Class B type of mobilehome parks and allocate water accordingly. Most mobilehome parks do not have the landscaping of the BHT. Those falling in the same category as the BHT could be allowed seven units of water. She also suggested something be done immediately to give them temporary relief from the restrictions, and refer MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12, 1991 PAGE 18 this matter to the Water Advisory Board to develop Class A and B categories. Councilmember Baker stated he has not been inconsiderate of the mobilehome owners as suggesting this evening. When this matter last came before Council he suggested they be allowed seven units of water. He believes all mobilehome parks should be treated the same; no just BHT. Just because they are allowed more water does not mean they are going to use it. Councilmember Wuriu also addressed comments the mobilehome owners have not been treated with respect; he does not believe the plan the City approved was set up to act disrespectful to any citi- zens. It is unfortunate if they took it as a insult. He said for 90% of the mobilehome parks, the rationing schedule is appro- priate, and he is not in favor of allowing seven units for all parks. It does not lend itself to conservation. Mayor Sheetz stated there has been a good deal of misunderstand- ing regarding this issue; no one looks at mobilehome owners as second class citizens. She thought it might be difficult to define an A and B category, and suggested using a percentage; such as, if a mobilehome park has less than 3% travel trailer spaces, they could be allowed the seven units. There was considerable discussion with a suggestion 98% of a park must be full-time residents in order for the park to qualify for the seven -unit status. Staff will work out the details and return with a resolution for Council adoption. MOTION: Councilmember Mullen moved Council temporarily allow mobilehome parks up to seven units of water per space per month, and staff return in a timely fashion with findings that are supportable to allow the additional amount for permanent residents. The motion was sec- onded by Councilmember Luna and unanimously carried. (5-0) D-8 REPORT ON FINAL PROJECT COSTS TO ABATE NUISANCE OF ILLEGAL EXCAVATION AT 2590 LAUREL STREET, AND AUTHORIZATION TO LEVY NUISANCE ABATEMENT LIEN AND COLLECT PROJECT EXPENSES Public Works Director, Nick Nichols; Finance Director Louise Burt; City Attorney Judy Skousen; and Mr. Wampler of Madonna Con- struction were sworn -in by the City Clerk as to their testimony on this matter. Ms. Skousen reviewed the conditions surrounding the public nui- sance at 2590 Laurel Avenue. The property owner failed to meet City -imposed deadlines to mitigate the nuisance, so the City hired experts and commenced abatement itself. Mr. Nichols stated after Council adopted a resolution declaring the site a nuisance, the City Attorney gave him direction to MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12, 1991 PAGE 19 abate the nuisance. He found consultants already contacted and involved in the design and mitigation measures. Stephen Carnes, professional engineer, was hired by the City to complete a design to fill the hole and remove the existing structures. Tierra Tech, soils engineers, were hired to make recommendations for filling the hole on which Carnes based his design. A structural engineer, David Carter of Applied Engineering, reviewed Carnes work. The firm of Staal, Gardner & Dunn, a geotechnical consult- ing firm, was hired to review Tierra Tech's work. On completion of the engineering design, the City hired Madonna construction to construct the mitigations in accordance with Mr. Carnes design which included demolishing the existing retaining wall and fit- tings, and filling the hole. Mr. Carnes supervised and inspected the project; Tierra Tech provided on -site soils engineering monitoring. Bud Wampler, supervisor for Madonna Construction, said his work involved removing the existing retaining wall and footings. He said Cal OSHA had red -tagged this project and it was an unsafe situation in which to go into. Madonna Construction met with Cal OSHA in their Ventura office before they would give Madonna per- mission to go into the site. Cal OSHA inspected Madonna's equip- ment to determine if it was adequate in size and capability, and also the employees. The employees had to remain back from the excavation site at a one-to-one slope because of the danger of the house above caving off onto the excavation site. He said it was a very special type of construction project. Ms. Skousen stated the excavation was originally approved for eight feet in depth; the contractor performing the excavation dug the excavation at more than 25 feet which completely destabilized the hillside which made the hillside and neighborhood at risk for a landslide. The consultants employed by the City said the site was an immediate danger, therefore, it was necessary to take all measures to stabilize the situation. Ms. Burt stated she has reviewed the found correct the costs on Attachment "A" of the report which includes $222,701.07 in con- sultant and construction costs; $15,759.46 in attorneys fees; and $4,242.24 in staff time for a total of $242,702.77. Ms. Skousen stated that concludes the staff report; Council should open the hearing to the public for comments. A minute motion will be needed to confirm the costs and authorize a lien against the property. Mayor Sheetz opened the hearing to the public. Dale Mitchell, attorney representing the owners of the property, the Johnsons, said the City's Municipal Code provides guidelines and procedures for due process. He reviewed the events leading up to the excavation of the property including the hiring of con- tractor Donald Martin to design and build a house. He said the Johnsons never gave written authority for the contractor to act MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12, 1991 PAGE 20 in their behalf; however, the City granted him a building permit. He noted the property owners live in Southern California, and most of 1989 and 1990 they were away in Europe. They did not see the building plans, and the contractor had no approval to act as their agent. They returned from their trip to find the 26 foot cut in their lot. He said the problem caused by the contractor was allowed to exist by the City until it became a local news item and then the City went into action. The property owners had already contacted Carnes, Wampler and Tierra Tech when the City got involved. Their estimate from wampler was $40,000; he is charging the City $200,507 for the work. In January 1991, the property owners received a letter estimating $173,000 for resta- bilization; now the cost is $242,000. He noted City ordinances allow the City Administrator to assess each property affected; however, the City Attorney recommends charging the entire project to the Johnsons. There is also to be an itemized report to Coun- cil showing the cost of the abatement. Mr. Mitchell does not believe staff's Attachment "A" complies. He said the attorney's fees at $15,000 are out of line; at $100 per hour, an attorney would have to work three full weeks at 50 hours per week. He said the staff report suggests Council may enforce this item as a personal judgement against the property owner; this law was not in place at the time the excavation occurred and the City's Municipal Code does not adopt the amendment to State law. Mayor Sheetz closed the hearing to the public. Mayor Sheetz asked what the Madonna fees constitute? Mr. Skousen stated Madonna did the physical work required by the engineers and geologists to make the hillside safe. They had to remove rebar and concrete in the hole. OSHA required special equipment be used and required them to stay a certain space away from the hole while repairing. Mr. Nichols commented Madonna did separate costs on the lots, and he can get the figures. Ms. Skousen stated she is recommending the entire costs be placed against Johnson property because the nuisance was created by the Johnson property. She said the attorneys fees are for the entire nuisance abatement proceedings from the beginning including con- tacting all experts and attending hearings. There was a substan- tial amount of work done. Mr. Mitchell does not dispute the work was done and that it was expensive. In his opinion, Council does not have before it suf- ficient records and information in which to comply with its own ordinances. If Council decides to place a lien against the Johnsons this evening, he does not believe it would be support- able in court. Mayor Sheetz asked if it is possible to bring back a detailed list? Ms. Skousen stated a detailed list can be prepared along with a breakdown on the amount spent on each lot. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12, 1991 PAGE 21 Councilmember Mullen asked about the nuisance occurring before the ordinance was established? Ms. Skousen stated the amendment to the ordinance is simply an amendment to the way the funds can be collected. The amendment that went into effect January 1, 1991 just made it easier for cities to collect the amounts they expend for the nuisance abatement. Also, the City has not attempted to collect it yet. Councilmember Wuriu asked about the fact the contractor did not have a legal agreement with the property owners to act on their behalf? Ms. Skousen said when he applied for a building permit, he represented, and it appeared, he had the written authority. It now appears he may have had forged documents and may have intentionally put the wrong address on the permit. Mayor Sheetz asked if this is the usual procedure for handling building permits? Mr. Farrel stated building permits are usually signed by the property owner; he will look into this item. Mayor Sheetz stated she is uncomfortable with the manner in which the expenses have been presented and would like to see a more detailed accounting. Councilmembers Baker and Wuriu agreed. A question was asked about the contractor who did the excavation. Mr. Skousen stated there is litigation pending and he has been served as a defendant in the Johnson lawsuit. Mayor Sheetz stated it is Council consensus the City Attorney return with a more detailed accounting of expenditures and a per lot cost of the expenditures. E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.9(b)(1). SIGNIFICANT EXPOSURE TO LITIGATION E-2 GOVERNMENT SECTION _54956.9(al. QASI V. CITY OF MORRO BAY E-3 GOVERNMENT SECTION 54956.8. REAL PROPERTY NEGOTIATIONS (DEN - DU COLEMAN DRIVE AREA, MORRO BAY DEVELOPMENT COMPANY MOTION: Councilmember Mullen moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmem- ber Luna and unanimously carried. (5-0) Mayor Sheetz read the Closed Session statement. The meeting adjourned to(Closed Session at 9:58 p.m. and returned to regular session at 10:42 p.m. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 12, 1991 PAGE 22 F. MOTION: Councilmember Luna moved the meeting be adjourned. The motion was seconded by Councilmember Mullen and unani- mously carried. (5-0) The meeting adjourned at 10:42 p.m. Recorded by: 1�i"'e'ei�'lGSC ARDITH DAVIS City Clerk PUBLIC NOTICE NOTICE IS HEREBY GIVEN that the special meeting of the Morro Bay City Council scheduled for Friday, 02 August 1991 at 5:00 p.m. in the City Hall Conference Room, has been cancelled by order of the City Council. Said meeting was scheduled to interview applicants for various advisory board vacancies. DATED: July 31, 1991 a-Ae ARDITH DAVIS, City Clerk i 6 '44�� 64�� g6& JAJ 0 0 City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. ADJOURNED REGULAR MEETING — JULY 30, 1991 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 CONSIDERATION OF ORDERING PLACED ON THE BALLOT OF THE CITY OF MORRO BAY SPECIAL ELECTION TO BE HELD ON 05 NOVEMBER 1991 AN INITIATIVE MEASURE MANDATING PARTICIPATION BY THE CITY OF MORRO BAY IN THE COASTAL BRANCH OF THE CALIFORNIA AQUEDUCT PROJECT (STATE WATER PROJECT) AND AUTHORIZING CONSTRUCTION OF RELATING NECESSARY LOCAL FACILITIES E-1 GOVERNMENT CODE §54956.8, REAL PROPERTY NEGOTIATIONS (DEN-DULK/COLEMAN DRIVE AREA, MORRO BAY DEVELOPMENT COMPANY) COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JULY 30, 1991 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 Susan Mullen Tom Wuriu ABSENT: Ben Luna STAFF: Gary Napper Judy Skousen Ardith Davis William Farrel Nick Nichols Knanow"MIK" None 6 ' 1'by.W404AW Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney City Clerk Community Dev. Dir. Public Works Dir. Mayor Sheetz requested Councilmembers agree to cancel the meeting scheduled for Friday, August 2nd, to interview advisory board applicants due to the fact all members of Council cannot be present. MOTION: Mayor Sheetz moved the special meeting scheduled for Friday, August 2nd at 5:00 p.m. be cancelled. The motion was seconded by Councilmember Wuriu and unani- mously carried. (4-0) D-1 CONSIDERATION OF ORDERING PLACED ON THE BALLOT OF THE CITY OF MORRO BAY SPECIAL ELECTION TO BE HELD ON 05 NOVEMBER 1991 AN INITIATIVE MEASURE MANDATING PARTICIPATION BY THE CITY OF MORRO BAY IN THE COASTAL BRANCH OF THE CALIFORNIA AQUEDUCT PROJECT (STATE WATER PROJECT) AND AUTHORIZING CONSTRUCTION OF RELATING NECESSARY LOCAL FACILITIES Mr. Napper stated the City received an initiative petition on July 22nd which, if placed on the ballot and passed by the vot- ers, would mandate the City of Morro Bay's participation in the State Water Project. The signatures on the petition have been MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JULY 30, 1991 PAGE 2 checked and the City is informed by the County Clerk's office the petition is sufficient with enough signatures to quality it for a special election. The staff report outlines various options for Council to con- sider; however, before those are considered, there is information from the City Attorney which questions the validity of the initiative. Ms. Skousen stated she has examined the petition with her legal assistant, Bob Illman, and it appears there may be some diffi- ciencies. Missing from the petition is a specific request from the people this matter be placed on the ballot. Portions of the Notice of Intention and a section of the ballot text itself con- tain this reference to Election Code §4020 which governs Council action for special elections. She noted the petition was mod- elled after the one on the same subject approved by the voters in Santa Barbara. She said she spoke with the City Attorney for Santa Barbara and he was unaware the specific language was not in the petition. After consideration, he opined it probably did not matter as the court would undoubtedly overlook the omission. Ms. Skousen believes it is a deficiency and Council could choose to declare the ordinance invalid and refuse to put it on the ballot. She noted another Elections Code section (4017) which allows Council to place an item on the ballot without an initiative. Ms. Skousen stated one of the initiative measure proponents, John Lemons, maintains the intent of the petition was clear: to put the mandatory State Water issue on the November 1991 election ballot. She said Council options at this point are: 1) Declare the initiative invalid; 2) Adopt the ordinance as -is; 3) Vote to place the initiative on the ballot in November; 4) Call a special election for a date later than the November election; or 5) Place the matter before the voters on the June 1992 primary. She noted the Elections Code requires Council to take action on the peti- tion this evening. Mayor Sheetz asked Ms. Davis to review her conversation with County Clerk Mitch Cooney. Ms. Davis responded Mr. Cooney has advised if the initiative petition is presented to him for place- ment on the November 5th election without arguments, he will not accept it; he stated August 9th is the deadline for all ballot materials and he will return any items received after that date. Councilmember Mullen stated the Code is clear regarding the dead- lines, and the City should not pressure Mr. Cooney to accept this initiative after those dates. Mr. Napper stated the Code only requires the ballot text wording be to Mr. Cooney by August 9th; the arguments and the ballot pamphlet materials could come in later if Mr. Cooney would accept them. Mr. Cooney has set the August 9th deadline for all items in order to allow for problems between now and when the sample ballots are printed. Council MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JULY 30, 1991 PAGE 3 could forward the initiative to the County and, if Mr. Cooney refuses to accept it, let a court decide what is reasonable. Councilmember Wuriu said deadlines should be flexible if a need can be proven; he cited shortening the argument dates in the City's Nacimiento Water advisory board as an example. Mayor Sheetz said she does not believe the City will have to give the County an answer regarding Morro Bay's participation in the State Water Project by December of this year as originally stated; lawsuits are pending and the EIR is not complete. Morro Bay does have an advisory measure on the November ballot regard- ing State Water, and she sees no need to rush this initiative. She said whatever the advisory ballot results are will be a sign of what the people want. Mayor Sheetz said she will not vote for anything that goes against the Election laws; she spoke with Mitch Cooney and he advised he would not accept this initiative for the November ballot under any circumstances. Mayor Sheetz opened the hearing to the public for comments. Frank St. Denis, one of the proponents of the initiative, stated there has never been any doubt this petition was to be placed on the ballot; the 1,318 people who signed the petition knew what they were doing. If Council does not place this matter on the ballot because of a technicality, they will be thwarting what the people want. Ray Kaltenbach said when Measure H (Williams Brothers initiative) was first presented to the City in 1990, it was returned due to a technicality and the proponents had to recirculate the petition in order to get it on the ballot. Let them get twice the signa- tures as Measure H did. Bill DeCarolis said if Council had acted responsibly when Coun- cilmember Baker first tried to put a mandatory State Water issue on the ballot and voted in favor of his motion, this would not be a problem now. 1,318 people signing a petition is not a small majority; Council should put this matter on the ballot. Dale Mitchell said in reviewing the Elections Code, the series 4000 sections apply to municipal initiatives, and §3000 apply to counties. The section setting forth the wording for the initia- tive is in the law governing the county; there is no section in the municipal series that requires the language set forth by the City Attorney; it is a suggested form only. Marlene Hard said she helped circulate the petition and one of the things people asked is if the item would be on the November ballot; she replied yes. People signing the petition knew that was the intent. MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JULY 30, 1991 PAGE 4 Mary Phillips told Council to put the initiative on the ballot, and let the State reject it. The City Council does not have the right to say what is good for the people; the people do not yield their sovereignty. Suedene Nelson, Chamber of Commerce Executive Director, said she conducted a recent poll of Chamber members as to whether they were in favor of State Water. The result of the 138 people called: 128 were in favor, 6 undecided, and 4 said no. She encouraged Council to try to find a way to place this matter on the ballot. Roger Ewing said the technicality of the petition is not a prob- lem; we can compromise on that. The real issue is the legality of the measure going on the November 5th ballot. Arguments for and against must be in the sample ballot, and there is no time to do that. Therefore, the initiative should not be placed on the November 5th ballot, but at a subsequent proper time. Morro Bay does not want to be known for bending the rules. Bruce Risley said the State Water Project is already on the November 5th ballot, as well as Nacimiento water. He said it is unfair for an election to be jammed with an imbalance on the question. He noted the VIC petition which had to be recircu- lated, stating it was extra work but can be done. The deficiency should be corrected. He said the relative costs of both water projects will not be known in November; that's fair for an advi- sory election. Ed Smith said it seems very strange to come upon an issue as important as State Water and still be worrying about small details. He said if Council trusts the people, they should place this matter on the ballot for a binding vote. He asked Council what they are afraid of? Give the people a chance to speak. John Lemons, initiative proponent, said he believes Mitch Cooney's deadlines are Mitch Cooney's deadlines. This Council has an obligation to attempt to put this initiative on the Novem- ber 5th ballot. He said the proponents of the initiative are willing to do the negotiating relative to the perceived problem. He said there is nothing in the 4000 section of the Elections Code which requires the deadline 88 days before the election. The Code allows 88 to 103 days. He said one of the reasons they are before Council this evening is because Council put the State Water issue on the ballot as an advisory issue. He noted nega- tive comments some Councilmembers made regarding a favorable vote on the State Water advisory election and said the deck is.stacked against the project. That is why the people believe it was nec- essary to circulate a petition requiring mandatory participation in the State Water Project. If the City Council can fire the Planning Commission because it receives 200 signatures, surely they will honor a petition containing 1,318 signatures. MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JULY 30, 1991 PAGE 5 Nelson Sullivan said the issue is not only State Water but Nacimiento as well. The City cannot afford both projects. The issue cries for a fiscal impact report. The initiative should not go on the ballot without a thorough fiscal study of Nacimiento and State Water. John Sharp, 701 Bernardo, stated he helped to gather signatures for the initiative. Everyone who signed the petition understood what it was about. He said the people want the initiative on the ballot. Mayor Sheetz closed the hearing to the public. Mayor Sheetz said she does not believe Mr. Cooney will accept the petition; Morro Bay must comply with the law. The first thing Council must do is act on the validity of the initiative. She believes those who signed the petition had any other intentions than to have it go on the ballot. Councilmember Wuriu agreed; he does not believe anyone was misled and sees no reason to reject the petition on the technicality. Councilmember Mullen asked why there are these continual problems with initiatives; she asked Ms. Skousen if she reviews them? Ms. Skousen stated no; she reviews only the ballot text to develop a title and summary of the initiative. The petition is prepared by the proponents after that to include her title and summary. The City does not see the actual petition until the proponents submit it for filing. The law does not require the proponents to submit the petition in advance. Councilmember Mullen said she will not challenge the petition on the technicality; she believe it is valid. Council consensus was the petition is valid and sufficient. Mayor Sheetz stated the next item to discuss is whether to attempt to place this matter on the November 5th ballot. Mr. Napper reviewed Council options if they do not agree to place the matter on the November 5th ballot; they must either adopt it as - is or place it for a special election. Mayor Sheetz asked Ms. Skousen to address the comment the 3000 series of the Elections Code does not apply to the City. Ms. Skousen said it is clear the 4000 series applies to municipali- ties. She said we requested our special election be consolidated with the County. It is clear the County Clerk can set the dead- line, and she does not believe the court will force him to extend the deadline (citing case law). If Council sends the initiative on to Mr. Cooney and he rejects it, nothing is lost and Council can then set the matter for a subsequent election. MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JULY 30, 1991 PAGE 6 Mayor Sheetz believes it would be a waste of time and effort. Councilmember Baker stated the proponents have said they will work with Mr. Cooney; he believes it is worth a try to get the matter on the November 5th ballot. MOTION: Councilmember Baker moved Council immediately set the initiative on the November 5th special election. The motion was seconded by Councilmember Wuriu. Councilmember Mullen stated she will not support the motion, and the reason has nothing to do with State Water; she is tired of this City not following the rules. If the subject of the initia- tive was anything other that State Water, there would be no ques- tion the initiative was received too late to process it for the November election. Councilmember Mullen stated she spoke with Mr. Cooney at length and there is no way he will accept this item. She will support setting the initiative for the June 1992 election. Councilmember Wuriu said although it is important to follow rules, it is important to differentiate between the law and spe- cific rules made by an office. As far as we know, Morro Bay must commit to State Water by December of this year or forever be left out of the project. He believes if this issue is presented to the voters, it would pass with a majority. The motion failed on the following vote (2-2): AYES: Baker, Wuriu NOES: Mullen, Sheetz Mayor Sheetz commented it is possible there will be a County election in March of this year if the State changes its Primary election date. MOTION: Mayor Sheetz moved Council set the initiative for the first County -wide consolidated election in 1992, but no later than June 1992. The motion was seconded by Coun- cilmember Mullen. Councilmember Mullen stated she gives time for ballot arguments sign a contract with State Water the Project are settled. supports the motion because it She said Morro Bay will not until after the lawsuits against Councilmember Baker stated if the hold-up is because there is no time for ballot arguments, why not use the same arguments that were filed for the State Water advisory measure? There was dis- cussion regarding this matter with legal advice this could be done. Councilmember Mullen objected and urged staff to stop sup- porting stretches in the rules, and go by the law. Ann Freeman, MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JULY 30, 1991 PAGE 7 one of the signatories to the ballot argument against State Water, objected to the use of that ballot argument for the manda- tory State Water issue, particularly without a fiscal report. The motion failed on the following vote: AYES: Mullen, Sheetz NOES: Baker Wuriu Council recessed from 7:02 p.m. to 7:12 p.m. Councilmember Wuriu asked questions relative to the costs of elections to which Ms. Davis responded. Councilmember Mullen stated Mayor Sheetz has already said she will support State Water if the advisory measure is approved by the voters. She believes pushing the initiative onto the Novem- ber 5th ballot past reasonable deadlines sets a bad precedent. MOTION: Councilmember Wuriu moved the City conduct its own spe- cial election in November 1991 and include not only the State Water initiative, but the Nacimiento Water and Transient Occupancy Tax measures as well. The motion was seconded by Councilmember Baker. Mr. Napper asked if the intent of the motion was to leave out the State Water advisory vote? Councilmember Wuriu said yes. The motion failed on the following vote (2-2): AYES: Baker, Wuriu NOES: Mullen, Sheetz Councilmember Mullen stated if Council sets the initiative for a 1992 consolidated ballot, it will not be setting a precedent or pressing any timetables; Council will be treating this initiative like any other petition that comes before the Council. The advi- sory issue on State Water is on the ballot, and Mayor Sheetz has stated she will support State Water if the people vote in favor of it. She believes these are enough reasons to allow the ini- tiative to wait until a 1992 ballot. MOTION: Councilmember Mullen moved the initiative be placed be- fore the voters no later than June 30, 1992, or as soon as possible. The motion was seconded by Mayor Sheetz. Councilmember Wuriu said there is a considerable difference between an advisory election and a binding election; advisory is better than nothing, but not much. He believes people want a binding measure on the ballot. MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JULY 30, 1991 PAGE 8 Councilmember Mullen maintained it would not be fair to put the initiative on the ballot due to the lateness of its submittal. Mr. Napper asked if Councilmember Mullen wished to amend her motion to placing the matter before the voters at a "countywide election" no later than June 30, 1992? Councilmember Mullen amended her initiative before the voters at a as soon as possible in 1992 but no 1992. The amendment was accepted the motion failed on the following AYES: Mullen, Sheetz NOES: Baker, Wuriu motion to place the County -wide election later than June 30, by Mayor Sheetz, and vote (2-2): Mayor Sheetz asked if this item was continued to the next meet- ing, would it be too late for placing it on the November 5th bal- lot? Ms. Skousen stated Council cannot adjourn this meeting until they make a decision on how to handle the petition. They can request a report on the initiative which gives them an addi- tional 30 days before they have to make a decision, but then it will definitely be too late to place the matter on the November 5th election. Council recessed from 7:33 p.m. to 7:43 p.m. Councilmember Mullen stated the problem with proponents of State Water seems to be the advisory issue in November is not binding. She stated she is willing to go on record that she will support whatever comes out of the advisory election. That means the four councilmembers present this evening will support State Water if the advisory vote is favorable. She strongly urged Council not give this initiative preferential treatment; set it for a County consolidated election in 1992. MOTION: Councilmember Mullen moved Council hold a special elec- tion at the first County -wide consolidated election in 1992, and prior to June 30, 1992. The motion was sec- onded by Mayor Sheetz. Councilmember Wuriu asked if this item were forwarded to the County for inclusion on the November 5th ballot and it does not meet County standards, will it be set for the next possible elec- tion? Councilmember Mullen noted the initiative already does not meet County standards. Mr. Napper stated it can be set for the next County -wide consolidated election. Councilmember Mullen stated the City should make the decision, not pass the decion to the County Clerk. • 0 MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JULY 30, 1991 PAGE 9 Mr. Lemons asked if Councilmember Mullen is willing to support State Water with a favorable advisory vote, why not change the advisory measure to a mandatory one? Councilmember Mullen said everything has already been set in motion; there are no ballot arguments for mandatory State Water; all timeframes were missed. She will not support putting mandatory State Water on the ballot without arguments. It is not the substance; it is the manner in how it is being handled. The motion failed on the following vote (2-2): AYES: Mullen, Sheetz NOES: Baker, Wuriu Councilmember Baker suggested holding Morro Bay a special elec- tion on November 5th with just this item, and letting the other measures be consolidated with the County. It was noted this would double costs of the election. Mayor Sheetz commented she would like to see a fiscal impact statement before a mandatory measure is submitted to the voters. Council recessed from 7:52 p.m. to 8:00 p.m. MOTION: Mayor Sheetz moved this item be placed on the November 5th ballot and, if rejected by the County Clerk, it be set for the first County election in 1992. The motion was seconded by Councilmember Wuriu. Councilmember Mullen stated the initiative will be rejected, and Mr. Cooney will have made the decision the City should have made themselves. The motion failed on the following vote (2-2): AYES: Wuriu, Sheetz NOES: Baker, Mullen There was further discussion on the motion, and Mayor Sheetz said she would restate the same motion and ask for a recall of the vote. Councilmember Mullen asked the motion be amended to indi- cate "when" Mitch Cooney rejects it, not "if"; the amendment was not accepted or seconded. MOTION: Mayor Sheetz moved this item be placed on the November 5th ballot and, if rejected by the County Clerk, it be set for the first County consolidated election in 1992. The motion was seconded by Councilmember Wuriu and car- ried on the following vote (3-1): AYES: Baker, Wuriu, Sheetz NOES: Mullen MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - JULY 30, 1991 PAGE 10 Councilmember Mullen requested an item be scheduled on the next agenda to consider purchasing the transcript of tapes of the Coastal Commission hearing in July on the Williams Brothers matter. E. CLOSED SESSION E-1 GOVERNMENT CODE §54956.8. REAL PROPERTY NEGOTIATIONS (DEN- DULK/COLEMAN DRIVE AREA, MORRO BAY DEVELOPMENT COMPANY) Councilmembers agreed to continue this item to the next regular meeting due to Councilmember Luna's absence. F. ADJOURNMENT MOTION: Councilmember Mullen moved the meeting be adjourned. The motion was seconded by Councilmember Wuriu and unanimously carried. (4-0) The meeting adjourned at 8:03 p.m. Recorded by: ARDITH DAVIS City Clerk ate, / e?9/ City Of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life which we all enjoy. We are committed to this purpose and will provide a level of municipal service consistent and responsive to our public and its needs. REGULAR MEETING - JULY 22, 1991 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE PRESENTATIONS: 1. MOST VALUABLE EMPLOYEE, SECOND QUARTER - DICK RODGERS 2. RESOLUTION COMMENDING GEORGE CARPENTER UPON HIS RETIRE- MENT FROM PUBLIC SERVICE 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 8, 1991 A-2 EXPENDITURE REPORT - JUNE 1991 A-3 STATEMENT OF INVESTMENTS - JUNE 1991 A-4 WATER SUPPLY STATUS REPORT A-5 RESOLUTION NO. 80-91 AUTHORIZING ASSIGNMENT OF COMBINED ROAD PLAN (CRP) APPORTIONMENT TO THE LOS ANGELES COUNTY TRANSPORTATION COMMISSION A-6 RESOLUTION NO. 75-91 REJECTING OFFER OF DEDICATION OF PUBLIC USE EASE- MENT MADE ON PARCEL MAP MB90-175, AND WAIVING FRONTAGE IMPROVEMENTS (R.L. AND S.L. FISHER, OWNERS/PONDEROSA STREET) A-7 AWARD OF CONTRACT FOR PROJECT PW 91-01, ANNUAL STREET STRIPING PROGRAM A-8 RESOLUTION NO. 83-91 APPROVING STOP SIGN AT JUNIPER AVENUE AND ELENA STREET A-9 RESOLUTION NO. 81-91 APPROVING 1991 WEED ABATEMENT CHARGES 0 A-10 DECLARATION OF PROPERTY AND EQUIPMENT SURPLUS TO CITY NEEDS A-11 SET DATE (JULY 30TH) TO INTERVIEW APPLICANTS FOR VARIOUS CITY ADVISORY BOARD VACANCIES A-12 SET DATE (AUGUST 9TH) FOR JOINT MEETING WITH SOLID WASTE MANAGEMENT BOARD A-13 RESOLUTION NO. 84-91 COMMENDING GEORGE CARPENTER UPON HIS RETIREMENT FROM PUBLIC SERVICE A-14 REPORT ON EMERGENCY COASTAL DEVELOPMERNT PERMIT FOR EMERGENCY DESALI- NATION PROJECT B. UNFINISHED BUSINESS B-1 ORDINANCE NO. 402 AMENDING CHAPTER 2.28 OF THE MORRO BAY MUNICIPAL CODE ESTABLISHING REGULAR JOINT MEETINGS BETWEEN THE CITY COUNCIL AND ITS PLANNING COMMISSION (SECOND READING/ADOPTION) C. NEW BUSINESS C-1 RESOLUTION NO. 82-91 APPROVING TEN-YEAR LEASE FOR LEASE SITE 113W WITH SHARON MOORE, DBA VIRG'S FISH'N INC. C-2 COUNCIL REQUEST TO CONSIDER HOLDING CLOSED SESSIONS PRIOR TO REGULAR MEETINGS C-3 COUNCILMEMBER REQUEST FOR CITY ATTORNEY REPORT ON "TAKING" OF PUBLIC FUNDS BY REJECTING PARTICIPATION IN STATE WATER PROJECT D. PUBLIC HEARINGS, REPORTS & APPEARANCES D-1 REVIEW OF SAN LUIS OBISPO COUNTY MASTER WATER PLAN UPDATE BY CLINTON MILNE, COUNTY ENGINEER D-2 INITIATION OF PROCESS TO FORM UNDERGROUND UTILITY DISTRICT (MORRO BAY BLVD. FROM MONTEREY STREET TO HIGHWAY 1) UTILIZING RULE 20A FUNDS D-3 ORDINANCE NO. 403 ADOPTING 1991 UNIFORM CODES (INTRODUCTION/FIRST READING) E. CLOSED SESSION E-1 GOVERNMENT CODE §54956.8, REAL PROPERTY NEGOTIATIONS - DEN-DULK/COLE- MAN DRIVE AREA; MORRO BAY DEVELOPMENT COMPANY F. ADJOURNMENT COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 22, 1991 PAGE 3 4. John Lemons, 419 Shasta, stated an initiative petition was presented to the City today which, if passed, will mandate the City's participation in the State Water Project. He said the people want this issue on the ballot to decide the issue them- selves; and, in his judgment, it will carry by 60% to 65% in Morro Bay. Council does not have a finger on the pulse of the community. • • • �' • : 4 1. Councilmember Luna requested an item from the last Council meeting, Request for Modification of Water Rationing Pro- gram for Mobilehome Parks, be scheduled again for the first meet- ing in September. Also, the Water Advisory Board be directed at their next meeting to discuss the possibility of giving the Blue Heron Mobilehome Park seven water units per space under the rationing program, and the concept of assigning water to mobile - home parks by placing the parks in certain classifications. Mayor Sheetz stated direction to the Water Advisory Board will have to be by direction of the entire Council. Mr. Henderson reported, pursuant to Council direction at the last meeting, he met with tenants in the Blue Heron Mobilehome Park and they Andi- cate the owner desires to sub -meter the park within a 45-day period. The tenants agreed to put off any action until after the installation of the sub -meters. Councilmember Luna stated he is aware of this action; however, he believes the homeowners in the park have valid concerns in requesting their allotment be increased to seven instead of five as approved by Council at the last meeting. Councilmember Wuriu said it would be better to take this up after the park has been sub -metered. Councilmember Luna stated the Blue Heron average water use per space is over five units; Coun- cil action to limit them to five further penalizes them. Councilmember Mullen preferred the item be referred to staff for them to come up with a plan dealing with the variety of mobile - home parks. Councilmember Luna said the homeowners in the park need relief; and, he believes the Water Advisory Board should discuss this at their next meeting. MOTION: Councilmember Luna moved this item be agendized at the next meeting of the Water Advisory Board. The motion was seconded by Councilmember Baker. Mr. Napper stated it is not in order for Council to take action giving direction to the Water Advisory Board since the item is not agendized at this meeting. The most Council can do at this 6 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 22, 1991 PAGE 4 time is to request the item be on the next City Council meeting to discuss. Councilmember Luna accepted this procedure. 2. Councilmember Luna requested an update at the next Council meeting on the City directional signage program and any other City action related to the "Nukes" study and recommendations. 3. Councilmember Baker stated in light of the information brought up by John Lemons, he believes it is proper to adjourn this meeting to Thursday, August 2nd, to take action on the ini- tiative petition presented to the City today. MOTION: Councilmember Baker moved this meeting, at its conclu- sion, be adjourned to Thursday, August 2nd at 6PM to take action on the petition. The motion was seconded by Councilmember Wuriu. Councilmember Mullen asked if his intent is to place the matter on the November ballot? Mr. Baker stated yes. Councilmember Mullen stated she understands there is no time for arguments, and asked if it is correct? Ms. Davis stated she does not believe there is time for arguments due to the County's deadline of August 9th for all ballot materials. A ten-day ballot pamphlet review period must take place before August 9th and has, in fact, already been noticed as pertains to the other ballot issues Coun- cil has set. She indicated if Council acted on the petition on July 30th, there would be time for the 10-day ballot pamphlet review but not ballot arguments. Councilmember Luna requested a legal opinion on eliminating bal- lot arguments; staff indicated that would be available by the July 30th meeting. Councilmember Baker amended his motion to set the adjourned meeting for July 30th at 6PM in the Veterans Hall. The amendment was accepted by Councilmember wuriu. Councilmember Mullen stated she is not going to support the motion; the City already has an advisory vote on this issue scheduled for November 5th. She believes it is important to have arguments on the ballot and if it takes a special election, so be it. Councilmember Wuriu said even though there is an advisory issue regarding State Water on the ballot, he believes a binding vote is a better way to deal with the problem. A mandatory measure leaves no question on the direction Council shall take, whereas with an advisory vote reason can be made not to implement the will of the people. He realizes time is short; however, he believes Council should place this matter on the November ballot. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 22, 1991 PAGE 5 Councilmember Luna stated he agrees with Councilmember Mullen; an advisory issue has been placed on the November ballot and it is adequate. Councilmember Baker pointed out he asked for this matter to be placed on the ballot as a mandatory issue when it was first pre- sented, but was out -voted by the rest of the Council. Mayor Sheetz stated she is not going to get involved in the State Water issue; if people want State Water, it is fine with her. She will not take a political stand on the matter. The motion carried with Councilmembers Luna and Mullen voting no. (3-2) A-1 CITY COUNCIL MINUTES OF -THE -REGULAR MEETING OF JULY 8, 19 Mr. Napper recommended Council approve the minutes as submitted. A-2 EXPENDITURE REPORT - JUNE 1991 Mr. Napper recommended Council approve the Expenditure Report as submitted. A-3 STATEMENT OF INVESTMENTS - JUNE 1991 Mr. Napper recommended Council receive the Statement for file. A-4 WATER SUPPLY STATUS REPORT Mr. Napper recommended Council accept the report for file. A-5 RESOLUTION NO. 80-91 AUTHORIZING ASSIGNMENT OF COMBINED ROAD PLAN (CRP) APPORTIONMENT TO THE LOS ANGELES COUNTY TRANS- PORTATION COMMISSION Mr. Napper recommended Council adopt Resolution No. 80-91. A-6 RESOLUTION NO, 75-91 REJECTING OFFER OF DEDICATION OF PUBLIC USE EASEMENT MADE ON PARCEL MAP MB90-175. AND WAIVING FRONTAGE IMPROVEMENTS (R.L. AND S.L. FISHER. OWNERS/ PONDEROSA STREET) Mr. Napper recommended Council adopt Resolution No. 75-91. A-7 AWARD OF CONTRACT FOR PROJECT PW 91-01, ANNUAL STREET STRIP- ING PROGRAM Mr. Napper recommended Council award the project to Safety Strip- ing Service, Inc., in the amount of $21,951.57. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 22, 1991 PAGE 6 A-8 RESOLUTION NO, 83-91 APPROVING STOP SIGN AT JUNIPER AVENUE AND ELENA STREET Mr. Napper recommended Council adopt Resolution No. 83-91. A-9 RESOLUTION NO. 81-91 APPROVING 1991 WEED ABATEMENT CHARGES Mr. Napper recommended Council adopt Resolution No. 81-91. A-10 DECLARATION OF PROPERTY AND EQUIPMENT SURPLUS TO CITY NEEDS Mr. Napper recommended Council declare the items listed, includ- ing added items of a 1983 Ford LTD and a 1979 Ford Courier, as surplus to the City's needs. A-11 SET DATE (JULY 30TH) TO INTERVIEW APPLICANTS FOR VARIOUS CITY ADVISORY BOARD VACANCIES Mr. Napper recommended Council set July 30th at 7 PM in the City Hall Conference Room to interview applicants for advisory board vacancies. He noted the time is different than recommended in the staff report due to Council's latest action scheduling an adjourned meeting for this same evening at 6PM. A-12 SET DATE (AUGUST 9TH) FOR JOINT MEETING WITH SOLID WASTE MANAGEMENT BOARD Mr. Napper recommended Council set August 9th at 2:30 PM in the City Hall Conference Room for a joint meeting with the Solid Waste Management Board. He noted Council is in receipt of a memo from Administrative Assistant Mike Upton detailing previous actions the Solid Waste Management Board has taken on issues con- veyed in Mr. Morrow's letter. A-13 RESOLUTION NO. 84-91 COMMENDING GEORGE CARPENTER UPON HIS RETIREMENT FROM PUBLIC SERVICE Mr. Napper recommended Council adopt Resolution No. 84-91. A-14 REPORT ON EMERGENCY COASTAL DEVELOPMENT PERMIT FOR EMERGENCY DESALINATION PROJECT Mr. Napper recommended Council accept the report for file. Councilmembers pulled Items A-4, A-9, A-10, A-11, and A-12 from the Consent Calendar for further discussion. MOTION: Councilmember Luna moved for the approval of the Con- sent Calendar as amended, excluding Items A-4, A-9, A- le, A-11, and A-12. The motion was seconded by Coun- cilmember Wuriu and unanimously carried. (5-0) 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 22, 1991 PAGE 7 Councilmember Wuriu asked if the deterioration of Morro Basin and the seawater intrusion is standard for this time of year? Mr. Nichols stated with the drought the last several years, it is; the same thing happened last year, only this year it is happening several months later due to March 1991 rains. A-9 RESOLUTION NO. 81-91 APPROVING 1991 WEED ABATEMENT CHARG Councilmember Luna stated there are some weeds growing quite high in the area near the old 76 Station on Quintana Road and Morro Bay Blvd. He asked if that area can be abated. Mr. Nichols stated it is in CalTrans right-of-way and the City will call them to take care of the matter. A-10 DECLARATION OF PROPERTY AND EQUIPMENT SURPLUS TO CITY NEEDS Councilmember Baker asked if he could directly purchase old fire hydrants from the Fire Department. Art Montandon, Acting City Attorney, advised against it since the City cannot enter into a contract with a Councilmember. A-11 SET DATE (JULY 30TH) TO INTERVIEW APPLICANTS FOR VARIOUS CITY ADVISORY BOARD VACANCIES Councilmembers discussed this item in view of the new adjourned meeting set for this date and time, and decided to hold the interviews on August 2nd. MOTION: Mayor Sheetz moved August 2nd at 5:00 p.m. be set at the City Hall Conference Room to interview applicants for advisory board vacancies. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) A-12 SET DATE (AUGUST 9TH) FOR JOINT MEETING WITH SOLID WASTE MANAGEMENT BOARD Mayor Sheetz stated she discussed this matter with the Chairman of the Solid Waste Management Board, and Ms. Santini advised Mayor Sheetz all the items listed in Mr. Morrow's letter have been reviewed by the Board. Councilmember Luna stated he also spoke with another member of the Board, and one of the items they are not able to reach a consensus on is composting. He has researched this matter and believes there is reason to re-examine the issue and hold a joint meeting. Councilmember Wuriu stated he believes it is important to main- tain contact with the boards and commissions; however, he believes Council should provide no more than general guidance on their activities. Council should not do their work for them. Councilmember Luna stated his intent was not to tell them what to • • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 22, 1991 PAGE 8 do, but make suggestions and review models of different programs that can be done. Mayor Sheetz stated she recently attended a meeting of the Solid Waste Management Board, and suggested Councilmember Luna attend their August meeting and bring his ideas and suggestions to them at that time. Councilmember Mullen commented perhaps the Council needs to con- duct workshops with all boards to establish goals and priorities. No further action was taken on this item. MOTION: Councilmember Baker moved for the approval of Items A-4, A-9, A-10, A-11 (as amended), and A-12. The motion was seconded by Councilmember Luna and unani- mously carried. (5-0) Mr. Mapper stated the Ordinance establishes the months of April and October each year to hold joint meetings with the Planning Commission. If adopted this evening, Council will hold their first joint meeting in October 1991. MOTION: Councilmember Mullen moved Ordinance No. 402 be read by title and number only. The motion was seconded by Councilmember Luna and unanimously carried. (5-0) Mr. Mapper read Ordinance No. 402 by title and number only. MOTION: Councilmember Mullen moved for the adoption of the sec- ond and final reading of Ordinance No. 402. The motion was seconded by Councilmember Luna and unanimously carried. (5-0) F�zm1 m_l fJ � Mr. Algert stated the proposed lease is for a ten-year period and involves the bait tanks and docks next to the Harbor Hut Restaurant. Councilmember Luna asked why the lessee is reluctant to consoli- date all leases into one City Master Lease? Mr. Algert stated MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 22, 1991 PAGE 9 the lease on the other site held by Virg's Fish'n is more favor- able to the lessee than the new Master Lease would be. The City cannot force her to convert current leases to a new Master Lease; we can only negotiate with the lessee when she requests something from the City. No changes are being requested on the other site. MOTION: Councilmember Baker moved for the adoption of Resolu- tion No. 82-91. The motion was seconded by Councilmem- ber Wuriu and unanimously carried. (5-0) Mayor Sheetz stated Council will now consider Public Hearing items since it is 7:00 p.m.; the remaining items will be consid- ered at the end of the meeting. Clint Milne, San Luis Obispo County Engineer, gave a detailed report of the San Luis Obispo County Master Water Plan which involved extensive contact with water purveyors and governmental agencies throughout the County. He said the County learned from their study more than 85% of the County's water comes from wells; the agricultural community uses more than 80% of the water; and the County is overdrafting groundwater basins by more than 60,000 acre feet per year. For supplemental water, the County investi- gated water conservation, reclamation, increasing the yield of existing local reservoirs, desal, Nacimiento, and the State Water Project. The priorities recognized by the Plan are conservation and the Coastal Branch of the State Water Project. The State Water Pro- ject is favored because of cost, availability of future supply, reliability, and quality. He estimates delivered water [treated] to Morro Bay from the State Water Project will cost $640 to $680 per acre foot. Mr. Milne stated there will be a meeting on August 1st with County staff to discuss the Nacimiento Water Project and see how many county agencies are interested in order to define the pro- ject and project cost estimates. Mr. Milne stated desal has been used at P.G.&E.'s Diablo Canyon Nuclear Power Plant for seven years with the reverse osmosis pro- cess ($2,200 per acre foot). Santa Barbara is building a desal plant; costs are estimated at $1,960 per acre foot of water over a five year period. He said desal is corrosive, and the technol- ogy is extremely expensive and energy intensive. He commented on the water shortages experienced in the State Water Project, and said in any one year, the agricultural user MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 22, 1991 PAGE 10 takes a 50% cut in its entitlement before the urban contractor takes any cut. The State contract also says if the State is not able to develop all of the facilities needed to give 100% relia- bility, there will be an adjustment backwards to the minimum yield of the project so that thereafter it is 100% reliable; or, if the project is only able to develop enough water to yield 80% of that projected, then entitlements will be reduced by 20%. Mr. Milne discussed the Governor's Drought Emergency Water Pool in which the State bought water from some areas in the State that had a surplus. He discussed the Agreement the County of San Luis Obispo has with Monterey County since 1959 in which the County of San Luis Obispo is entitled to 17,500 acre feet of water per year. The County has been selling that water to Heritage Ranch. He stated there has been considerable development around Nacimiento Lake over the years, and those people look at the Lake as their reservoir. He said San Luis Obispo County can expect objections when it tries to access its water entitlement. Approximately 16,200 acre feet of Nacimiento water is available for export. With regard to desal, the only concern is an unexpected break- down. Of all the projects, desal should have the greatest reliability. Mr. Milne stated Morro Bay is very vulnerable with its existing groundwater supply and present wells, especially since we have not been able to obtain appropriative water rights. Even if the City is able to get water rights, those rights will be subordi- nate to all up -stream landowners. He compared water quality in State Water, Nacimiento and desal projects. He also commented on the Mesa Water District's lawsuit against the State on the adequacy of the State Water Project which may cause a delay in the project's completion. Councilmember Wuriu asked Mr. Milne if he could comment on the pureness of the water for State Water, Nacimiento, desal, and reclamation? Mr. Milne stated under present law, reclamation cannot be used directly. As for the other projects, none of the water supplies can be used unless they meet State drinking water standards. He noted the standards are continually changing and becoming more stringent. Councilmember Baker asked if it is possible to purchase water from any other sources to supplement the State Water Project? Mr. Milne discussed some of the options the State is reviewing. Councilmember Baker asked about the possibility of using pipelines to bring water from Alaska or Canada? Mr. Milne stated if the price is right, he is confident it could happen. However, MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 22, 1991 PAGE 11 we are having trouble transporting water in our own County and State; he is unsure if all permits could ever be obtained to transport water from Alaska or Canada. Councilmember Baker asked Mr. Milne if the State Water Project is the most cost effective, reliable, and easiest to obtain than any other source and should be given first priority? Mr. Milne stated from an engineering standpoint and as far as costs are concerned, he believes so. However, desalting of sea water is probably more reliable. Councilmember Luna asked if the money the people have been taxed for on the State Water Project will be returned to them if San Luis Obispo County does not participate in the Project? Mr. Milne stated the amount on the tax bill is paid to the County Flood Control Conservation District. He said a number of scenar- ios may be possible with the State Water Project; full participa- tion, no participation, or participation to something less than full entitlement. He is unsure if the County would be able to sell its entitlement to other water contractors and in this way receive a reimbursement of expenses. Councilmember Luna asked if the City did participate, and the State Water Project failed to deliver, is the City still required to pay for the full allotment? Mr. Milne responded yes; he said there will be a meeting on July 25th to discuss the concept of an agreement and they will be reviewing the master contract. He noted fixed costs must always be paid; we would not have to pay variable costs such as the cost of delivering water. If no water is taken, there are no variable costs; you pay for what you use. He said under full build -out, the fixed costs represent 85% of the cost, and those costs will go on until they have been repaid in the year 2035. Variable costs will not start until water is delivered. Councilmember Luna asked for clarification when the City would start to pay. Mr. Milne stated payment for the Project will start on subscription; payment for the local facilities will begin upon delivery of water. Councilmember Luna referred to the recent toxic accident dump in the Shasta Lake area, and asked how this will be prevented from happening? Mr. Milne stated the Shasta Reservoir is a federal facility and not part of the State Water Project; he noted by the time the water affected gets out of the Shasta area, it will be dissipated. He said if such an accident happens along the Aque- duct, there are control structures all along the Aqueduct that automatically shut gates to block off a segment. This would sep- arate the affected area from the rest of the project and would not go into the system. *See attachment for added comments requested by Luna on 8-12-91. Correction to minutes of 22 July 1991 requested by Councilmember Luna at Council meeting of 12 August 1991: Add to page 11 aod­k9 Councilmember Luna's questions and Clint Milne responses as follows: Councilmember Luna asked if a municipality's entitlement is 2,000 acre feet annually, but is only receiving 20% of their entitlement because of the drought, would their full entitlement become 20% if the drought continues? Mr. Milne stated not if the drought is a temporary situation. If the State is not able to develop all of the facilities to provide for the full contracted entitlements, they will re -define the yield of the project based on the minimum yield, and readjust the entitlement downwards. Councilmember Luna asked if that happens, would the municipalities be paying the same on the contract as when they initially signed on even though their entitlements have gone down? Mr. Milne stated yes, for the capital costs, but not for the variable O&M costs because those would depend on the amount of water that is delivered. Referring back to Councilmember Luna's example of a municipality using 20% of their entitlement; today the project is capable of yielding a little better than 50% as a minimum yield. It never would go below that, but it has been operated on the basis of risk and calculated statistics and no one ever contemplated this five-year drought statewide; that's why it has been worse than anyone envisioned. But in the future, if no other project were built, then the State would change the operations and would not deliver what is today the 100% entitlement; they would deliver 52% or whatever the figure might be. Then the project would be dependable and one would get their daily yield. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 22, 1991 PAGE 12 Councilmember Luna asked if the $640-$680/AF costs quoted by Mr. Milne are fixed or if it is possible they could be higher? Mr. Milne stated the figures are an estimate; the City will have to pay whatever it costs. Mayor Sheetz stated there has been considerable concern in refer- ence to over -drafting of the reservoir in Kern County; she asked if anything has been done about it? Mr. Milne stated it is cur- rently an over -draft problem. No State agency has the ability to control ground -water basins unless it is a water quality problem. If someone believes they are harmed by the over -drafting, they can seek resolution through the courts; that has not been done to date. Councilmember Mullen said since the State Water Project is 100% over -contracted and new facilities have to be built to make it reliable for this area, she understands the Metropolitan Water District has grave concerns about drastic short -falls by the year 2000; in fact, they are pushing for the Peripheral Canal. She understands the costs for these items, particularly just the ones needed to insure a better reliability for this area, are not included the cost Mr. Milne quoted. Mr. Milne said that is cor- rect; he explained the reasons the Metropolitan Water District is interested in the Peripheral Canal. He noted all costs for the State Water Project are melded together throughout the State, and it may be possible costs will go up in the future. He said the State is not today 100% over the yield; the last contractor does not reach its full entitlement until the year 2019. Councilmember Mullen said the City of San Luis Obispo has voted against the State Water Project; the Cities of Grover City and Arroyo Grande have said no; and Paso Robles and Atascadero are not interested. If Morro Bay, Pismo Beach and some of the County areas are the only ones interested in the State Water Project, how much does that add to the cost? Mr. Milne said he does not know yet; however, it is important to Morro Bay what happens in Cayucos and Los Osos as far as sharing costs for the pipeline to deliver State Water from San Luis Obispo to this area. Mayor Sheetz commented State Water Project costs will not be known until we know who will be participating in the project. Mayor Sheetz opened the hearing to the public for comments. Randy Ruff asked how the $640 per acre foot estimate stated by Mr. Milne relates to the "take -off" point as far as distribution is concerned? Mr. Milne said the turn -out is planned for down- stream of the Cuesta Tunnel; there would be a branch from that to the Camp San Luis Obispo area into the City of Morro Bay. The estimated cost includes getting the water to Morro Bay. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 22, 1991 PAGE 13 Mr. Ruff asked how Mr. Milne's comments on the Nacimiento Project relate to the storage in the reservoir? Mr. Milne said the County is entitled to 17,500 acre feet per year from Nacimiento now. To give us some reliability, Monterey agreed they would not lower the reservoir below 22,000 acre feet prior to September 30th. Mary Phillips asked what happens if the drought lasts? She said the State Constitution provides the State of California will have to be bankrupt before they would not be required to provide water for its citizens. She asked if the State would try to get water outside of California? Mr. Milne believes those sources would be so expensive, the State Water Project contractors would advise against obtaining it. As far as the Constitution is concerned, he believe it states we must use water beneficially; one cannot waste it. Dan Reddell, 2541 Nutmeg, asked if all costs involving State Water were added together, could they ever amount to what it costs for desal? Mr. Milne stated no, not in his opinion. Mr. Reddell asked what is meant by 11100% over -subscription"? Mr. Milne stated existing facilities today have the capability of delivering only half of the total entitlement to contractors; if no more of the project is built to increase the yield, the con- tracts will be cut in half. Mr. Reddell asked if the City will have to give up ground water if it participates in the State Water Project? Mr. Milne stated there is a provision in the Water Code that says if you have taken an alternative supply of water in lieu of pumping groundwater, you must file each year as to how much of the alternative water supply you are taking in order to protect your water rights. Tom White stated he now believes the State Water Project is the quickest and most reliable way to solve Morro Bay's water prob- lems. He said water should be separated from the growth issue; Measure F takes care of growth and it does not matter how much water we have. He also supported the desal plant, reclamation, and Nacimiento as potential sources of water. John Lemons, 419 Shasta, said anyone listening tonight with an open mind should reevaluate their position if they are against the State Water Project. He requested a copy of the tapes of this evening's meeting be provided to him. He asked if Monterey County can withhold the County's entitlement to 17,500 acre feet of water during a drought? Mr. Milne stated no. Mr. Lemons asked if the construction costs for State Water are paid as they are incurred, or are participating agencies required to pay esti- mated costs? Mr. Milne stated they are paid as incurred; on existing facilities, we are repaying what has already been built to date. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 22, 1991 PAGE 14 Barbara Sanders thanked Mr. Milne for his presentation. She stated the Council has an obligation to the citizens of Morro Bay to provide the community with water in the most economical way. State Water appears to be it, but don't rule out other options. Ray Kaltenbach stated he worked with the Los Angeles Department of Water and Power for 21 years; at that time they had enough water to last 100 years. California never expected the growth that has occurred. By the year 2020, the population of Califor- nia will double. He said last winter the Nacimiento Lake level was down to 5% of its capacity; he asked if any water can be obtained from the Lake when it is that low? Mr. Milne stated the State statistically evaluates what has happened in the past and projects it into the future. Last year was a worse case sce- nario, and the reservoirs are better now than they were last fall. Don Smith, San Luis Obispo, read from a 1984 report wherein Clint Milne stated Nacimiento water at is $200 an acre foot cheaper for Morro Bay and more reliable than State Water; he thinks Mr. Milne was right then. The Nacimiento advantage is the City could swap for water from Whale Rock since San Luis Obispo is not interested in State Water now. Mayor Sheetz closed the hearing to the public Mayor Sheetz stated this item was before Council this evening for information only; no action is required. She thanked Mr. Milne for taking the time to bring Morro Bay up-to-date on the County Master Water Plan. Council recessed from 8:45 p.m. to 9:00 p.m. Mr. Napper introduced Art Montandon, City Attorney for the Cities of Atascadero and Santa Maria; he is filling in this evening for Judy Skousen who is on vacation. Mr. Nichols stated there is currently $176,680 available for underground utility conversion projects in Morro Bay; addition- ally, the City may draw up to three years' future fund alloca- tions which equals another $261,315, for a total of $437,995. He reviewed several proposed projects, and recommended Council authorize the formation of an underground utility improvement district on Morro Bay Blvd. from Highway 1 to Monterey Ave. The cost for this project is estimated at $360,000. He said cus- tomers in the underground area would be responsible for costs of trenches and conduits for their new service lines. An additional MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 22, 1991 PAGE 15 cost for the City is re -installing street lights estimated at $7,000. Mayor Sheetz asked how long the project will take? Mr. Nichols stated three to four months for construction; however, it will take approximately one year for P.G.&E. to go through its paper- work process. Councilmember Wuriu asked if there is an estimate of the cost to the customers? Mr. Nichols stated no; it depends on the property and how the service is set up. It should be less than $1,000. Councilmember Baker asked if P.G.&E. looks at existing electrical hook-ups and the potential for upgrading? Mr. Nichols stated yes; they take future electrical demands into account. Councilmember Mullen asked if P.G.&E. will be doing anything in terms of energy efficient street lights? Mr. Nichols stated yes; this is an opportunity to change fixtures. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the matter was returned to Council. MOTION: Councilmember Luna moved Council authorize the forma- tion of an underground utility improvement district on Morro Bay Blvd. from Highway 1 to Monterey Ave. The motion was seconded by Councilmember Mullen and unani- mously carried. (5-0) *-3 ORDINANCE NO, 403 ADOPTING 1991 UNIFORM CODES (INTRODUCTION/ FIRST READING) Mr. Farrel stated every three years it is necessary to update City ordinances to reflect the changes in the Uniform Building Codes; the proposed Ordinance adopts the 1991 versions of Codes. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. MOTION: Councilmember Wuriu moved Ordinance No. 403 be read by title and number only. The motion was seconded by Councilmember Mullen and unanimously carried. (5-0) Mr. Napper read Ordinance No. 403 by title and number only. MOTION: Councilmember Baker moved for approval of the introduc- tion and first reading of Ordinance No. 403. The motion was seconded by Councilmember Luna and unani- mously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 22, 1991 PAGE 16 C-2 COUNCIL REQUEST TO CONSIDER HOLDING CLOSED SESSIONS PRIOR TO REGULAR _i MEETINGS Mayor Sheetz stated she requested this item be scheduled. She believes by the time City Council meetings are over, Council is too tired too make the important decisions required in Closed Session. She suggested Council convene at 5:15 p.m. before regu- lar meetings to consider Closed Session items. If Council is unable to complete consideration of Closed Session items by 6:00 p.m., they can adjourn to a time and date certain for the remain- ing items. Council agreed with the concept. Mr. Napper stated Council meeting times are set by ordinance; he will return with an amendment at the next meeting. MOTION: Mayor Sheetz moved the ordinance be amended to begin Closed Session items at 5:15 p.m. prior to regular City Council meetings; and, that Closed Sessions adjourn by 6:00 p.m. to a time and day certain if Council is unable to finish Closed Session business. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) C-3 COUNCILMEMBER REQUEST FOR CITY ATTORNEY REPORT ON "TAKING" OF PUBLIC FUNDS BY REJECTING PARTICIPATION IN STATE WATER PROJECT Mr. Montandon reviewed the memo from City Attorney Judy Skousen in response to Councilmember Baker's question. He stated he agrees with Ms. Skousen the funds thus far collected through property tax bills for the State Water Project have been used by the State to pay for the project as it has been constructed so far. Thus, no refunds would be available if Morro Bay decides not to participate in the Project; it is not a "taking" of public funds. Councilmember Baker stated he disagrees with the legal opinion. He believes it is unconscionable when money has been placed aside for years for a project such as this, and three members of the City Council can make a decision it be disregarded. Mr. Milne also agreed with the City Attorney's opinion and stated the average cost for the State Water Project for a property owner is $3.50 per year. Councilmember Wuriu asked if the City will have to continue pay- ing the amount levied on the tax bill if Morro Bay rejects State Water? Mr. Milne stated yes, unless Morro Bay can get a water contractor to pick up its entitlement. Councilmember Baker asked if the total amounts to more than $1 million per year? Mr. Milne stated yes. Councilmember Baker • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 22, 1991 PAGE 17 stated it is foolish to pass -up State Water when the pipeline will run through San Luis Obispo County. E. CLOSED SESSION E-1 GOVERNMENT CODE 454956.8. REAL PROPERTY NEGOTIATIONS - DEN- DULK/COLEMAN DRIVE AREA: MORRO BAY DEVELOPMENT COMPANY Councilmember agreed to consider the Closed Session item at their adjourned meeting on July 30th. F. MOTION: Councilmember Mullen moved the meeting be adjourned to Tuesday, July 30, 1991 at 6:00 p.m. in the Veterans' Memorial Hall to consider the initiative petition con- cerning mandatory State Water and the Closed Session item scheduled for this meeting. The motion was sec- onded by Councilmember Luna and unanimously carried. (5-0) The meeting adjourned at 9:28 p.m. Recorded by: ARDITH DAVIS City Clerk 6 • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 22, 1991 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Sheetz called the meeting to order at 6:00 p.m. �• s PRESENT: Rose Marie Sheetz John Baker Ben Luna Susan Mullen Tom Wuriu ABSENT: None STAFF: Gary Napper Art Montandon Rick Algert Ardith Davis William Farrel Forrest Henderson Dave Howell Nick Nichols Mayor Councilmember Councilmember Councilmember Councilmember City Administrator Acting City Attorney Harbor Director City Clerk Community Dev. Dir. Asst. City Admin. Police Chief Public Works Dir. Sandra Dalrymtle of the Four -Square Gospel Church in Los Osos gave the invocation, and Horace Strong led the Pledge of Allegiance. 1. MOST VALUABLE EMPLOYEE. SECOND QUARTER__- DICK RODGERS Mayor Sheetz stated Dick Rodgers has been selected by the Employee Relations Committee as Most Valuable Employee for the second quarter of this year. She noted some of Mr. Rodgers' con- tributions to the City and presented him with the recognition gifts. FROM PUBLIC SERVICE Mayor Sheetz read the Resolution commending Police Lieutenant George Carpenter for his 33 years of law enforcement service upon announcing retirement from public service. Mayor Sheetz pre- sented him with the Resolution and wished him well. 1. Steve MacElvaine, current Vice Chair of the California Coastal Commission, referred to an article in the Telegram- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 22, 1991 PAGE 2 Tribune regarding the recent Coastal Commission hearing on the Williams Brothers Morro Bay project, and stated he wished to clarify some issues. The article indicated the Coastal Commis- sion action spelled doom for the Williams Brothers Shopping Cen- ter and other development in Morro Bay; that is not true. The article also stated the Commission used Morro Bay not having a certified water management plan as grounds for denying the subdi- vision. Mr. MacElvaine distributed to Councilmembers pertinent sections of the certified Local Coastal Program the Commission used in denying the Williams Brothers subdivision map. He reminded Council the people of Morro Bay designed the Plan in 1984. Mr. MacElvaine stated Policy 3.03 lays the foundation for the water management plan the Coastal Commission discussed during the Williams Brothers hearing. He said this was not the grounds for denial of the project because the Commission believes the City Council has the right to serve the Williams Brothers devel- opment. What the Coastal Commission approved was a conditional development plan which the City now can decide what that is sup- posed to look like internally. He stated Policy 3.04 is the key and sets the criteria for the water management plan which will eventually have to be brought before the Coastal Commission; this criteria was establish by previous Morro Bay City Councils and has to be met. Until this criteria has been met showing the listed resources have been pro- tected, the City cannot create new subdivisions. That is the reason the Williams Brothers project was approved, but the vest- ing man was not. Mr. MacElvaine stated following the meeting he spoke with a representative of Williams Brothers who does not believe the loss of the vesting map kills the project. He suggested if Council believes a subdivision of this property is a high priority, they could make Policy 3.04 specific and ref- erence it to new "residential subdivisions" rather than just "subdivisions". He advised Council they have a right to amend the Local Coastal Program three times a year, and encouraged them to do so if there are amendments they wish to make. 2. Ray Kaltenbach, 473 Sicily, said he hopes the Council does not think the majority of the people in Morro Bay want a golf course at Hollister Peak. He said the presentation at the last meeting was one-sided and there is no basis for the figures showing they will use less water than current agriculture uses. He said Council should review their riparian rights; once the project is approved, they will have rights to the water and the City will not. 3. Mary Phillips said she feels like she is living in Russia. She objects that the City is not preparing an EIR on the desal plant and educating people on water quality. 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 8, 1991 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE 1. MORRO BAY'S FIRST PARAMEDICS 2. BAY CLEAN-UP CERTIFICATES OF APPRECIATION 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 FOR THE SPECIAL MEETING OF JUNE 20, 1991 AND THE REGULAR MEETING OF JUNE 24, 1991 A-2 NOTICE OF COMPLETION ON PROJECT PW 89-16, CENTENNIAL PARKWAY RESTROOM AND IMPROVEMENTS A-3 WATER SUPPLY STATUS REPORT A-4 AWARD OF CONTRACT FOR DISTRICT 6 STREET MAINTENANCE OVERLAY PROJECT (NORTH MORRO BAY) A-5 AWARD OF CONTRACT TO MORRO BAY CHAMBER OF COMMERCE FOR FISCAL YEAR 1991-92 LOCAL VISITORS SERVICES BUREAU A-6 DECLARATION OF BAYSHORE BLUFFS PARK PROJECT AS COMPLETE AND ACCEPTANCE INTO PARK SYSTEM A-7 ACCEPTANCE OF RESIGNATION FROM SOLID WASTE MANAGEMENT BOARD (MORROW) A-8 NOTICE OF COMPLETION ON PROJECT NO. 89-13, COMMUNICATIONS REPEATER BUILDING EMERGENCY GENERATOR . A-9 AUTHORIZATION OF EXTENSION OF TIME ON ENVIRONMENTAL IMPACT REPORT FOR CLOISTERS RESIDENTIAL DEVELOPMENT PROJECT B-1 ORDINANCE NO. 401 AMENDING UNREINFORCED MASONRY (URM) BUILDING MITIGA- TION PROGRAM TO EXTEND FILING DEADLINE FOR PLANS TO REHABILITATE OR DEMOLISH UNSAFE STRUCTURES (SECOND READING/ADOPTION) NONE D-1 FORMATION OF CITY RESPONSE TO COASTAL COMMISSION STAFF REPORT ON WILLIAMS BROTHERS SHOPPING PLAZA APPEAL HEARINGS D-2 RESOLUTION NO. 77-91 APPROVING CONCEPT PLAN FOR RE -CONSTRUCTION OF THREE APARTMENTS TO TWO MOTEL UNITS AND A MANAGER'S QUARTERS AT 471 EMBARCADERO (ASSOCIATED PACIFIC CONSTRUCTORS, APPLICANT; CUP 14-91) D-3 ORDINANCE NO. 402 REQUIRING JOINT MEETINGS WITH THE PLANNING COMMIS- SION TWICE A YEAR (INTRODUCTION/FIRST READING) D-4 REQUEST FOR MODIFICATION OF WATER RATIONING PROGRAM FOR PARKS D-5 CITIZEN REQUEST FOR AGENDA TIME TO REQUEST COUNCIL PLACEMENT OF AN ADVISORY VOTE MEASURE ON THE NOVEMBER 1991 BALLOT TO ASCERTAIN VOTER SUPPORT OF OBTAINING WATER FROM LAKE NACIMIENTO RESERVOIR (RANDALL RUFF) D-6 CONSIDERATION OF PROPOSED COUNTY GENERAL PLAN AMENDMENT FOR FUTURE GOLF COURSE, HOTEL/RESORT AND CONFERENCE CENTER AT HOLLISTER PEAK, HIGHWAY ONE/CHORRO CREEK BASIN (A.J. WRIGHT, APPLICANT) D-7 REPORT ON FINAL PROJECT COSTS TO ABATE NUISANCE OF ILLEGAL EXCAVATION AT 2590 LAUREL STREET, AND AUTHORIZATION TO LEVY NUISANCE ABATEMENT LIEN AND COLLECT PROJECT EXPENSES E. CLOSED SESSION E-1 GOVERNMENT CODE §54956.9(C); POTENTIAL LITIGATION E-2 GOVERNMENT CODE §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 8, 1991 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: Judy Skousen Forrest Henderson Rick Algert Louise Burt Ardith Davis William Farrel Nick Nichols Steve Wolter Mayor Councilmember Councilmember Councilmember Councilmember City Attorney Asst. City Admin. Harbor Director Finance Director City Clerk Community Dev. Dir. Public Works Dir. Rec. & Parks Dir. Forrest Henderson gave the invocation, and Councilmember Baker led the Pledge of Allegiance. r • S_: • :S_, v Mayor Sheetz stated Council had recently approved funding for Paramedic emergency training through the City's Fire Department. Four fire personnel have become the City's first certified Paramedics, and Mayor Sheetz asked retiring Fire Chief Bernie Zerr to present the new Paramedics with the patch to be worn on their uniform. Those receiving the awards were Jeff Jones, Interim Fire Chief; Mike Pond, Acting Fire Captain; Rob Guidi, Fire Engineer; and Jim Warner, Fire Engineer. Interim Fire Chief Jeff Jones thanked the Council for supporting them, and the fire personnel who worked overtime and extra shifts to cover for those taking paramedic classes. Mayor Sheetz stated the 1991 Bay Clean -Up Day was a tremendous success. More than 30 divers took part; P.G.&E donated two cranes and crews; there were 15 volunteers from the California Conservation Corps; three sunken vessels were raised and disposed along with assorted other trash. Mayor Sheetz thanked all who participated; she said there are Certificates of Appreciation for those involved including Councilmember Luna who supervised the MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 8, 1991 PAGE 2 California Conservation Corps team in getting the debris from the shore to dumpsters. PUBLIC COMMENT 1. Ed Smith stated he is speaking for Morro Bay Beautiful representative Chuck Clarke who, with the Morro Bay Beautiful Foundation, is taking steps to replace the flags at the Centen- nial Stairway. Mr. Smith also announced a California Gold pro- gram featuring Morro Bay will be on PBS television Wednesday; Morro Bay Beautiful was instrumental in getting this valuable footage of Morro Bay on television. 2. Ray Kaltenbach, 473 Sicily, said in selecting a new Fire Chief, the City should choose someone from within the Department; he believes there are qualified people in the Fire Department who will do an excellent job. 3. Mary Phillips stated Morro Bay does not have an emer- gency water situation; an environmental impact report should be conducted to determine the effects of desal water on the popula- tion. She spoke in favor of the State Water Project. 4. Tom White, 484 Rennell, stated in February he requested on behalf of lot owners in Morro Bay there be some kind of advi- sory information gathered for people to address the problem of taxation under the current situation of the moratorium. Lot own- ers are paying taxes on property and they are not able to develop it. He requested Council give him information on how to request a change in the tax base; should he contact the County to reassess the property in view of the moratorium? Ms. Skousen stated there is nothing the City can officially do, and suggested he contact the County. DECLARATION OF FUTURE AGENDA ITEMS 1. Councilmember Baker requested an item be placed on the next agenda for the City Attorney to explain if Council action on rejecting the State Water Project is a "taking" of public funds. He stated citizens have been paying for State Water for 30 years, and Council recently removed it from the list of priorities. A. CONSENT CAL 1y=•�Lf��M�G`Li4w�F9L•.._11:.1_ya�[•3fcZ�l�l_4`�[�•]11[�F 1991 AND THE REGULAR MEETING • Mr. Henderson recommended Council approve the minutes as • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 8, 1991 PAGE 3 A-2 NOTICE OF COMPLETION ON PROJECT PW 89-16 CENTENNIAL PARKWAY RESTROOM AND IMPROVEMENTS Mr. Henderson recommended Council accept the project as complete and authorize the City Clerk to file the Notice of Completion. A-3 WATER SUPPLY STATUS REPORT Mr. Henderson recommended Council receive the report for file. A-4 AWARD OF CONTRACT FOR DISTRICT 6 STREET MAINTENANCE OVERLAY PROJECT (NORTH MORRO BAY) Mr. Henderson recommended Council award the project to Madonna Construction in the amount of $42,119.30; and, transfer $2,119.30 from the Tree and Sidewalk Repair Account (No. 730-530-430) to this street maintenance project. A-5 AWARD OF CONTRACT TO MORRO BAY CHAMBER OF COMMERCE FOR FISCAL YEAR 1991-92 LOCAL VISITORS SERVICES BUREAU Mr. Henderson recommended Council award the contract to Morro Bay Chamber of Commerce in the annual amount of $25,500. A-6 DECLARATION OF BAYSHORE BLUFFS PARK PROJECT AS COMPLETE AND ACCEPTANCE INTO PARK SYSTEM Mr. Henderson recommended Council accept Bayshore Bluffs Park into the City's park system, and authorize staff to commence maintenance of the Park through the approved Landscaping and Lighting Assessment District. A-7 ACCEPTANCE OF RESIGNATION FROM SOLID WASTE MANAGEMENT BOARD (MORROW) Mr. Henderson recommended Council accept the resignation of Mr. Morrow, and authorize staff to advertise the vacancy. A-8 NOTICE OF COMPLETION ON PROJECT NO, 89-13, COMMUNICATIONS REPEATER BUILDING EMERGENCY GENERATOR Mr. Henderson recommended Council accept the project as complete, and authorize the City Clerk to sign and file the Notice of Completion. A-9 AUTHORIZATION OF EXTENSION OF TIME ON ENVIRONMENTAL IMPACT REPORT FOR CLOISTERS RESIDENTIAL DEVELOPMENT PROJECT Mr. Henderson recommended Council adopt Resolution No. 78-91 and authorize the Mayor to sign the Agreement. Mayor and Councilmembers pulled Items A-3, and A-5 through A-9 from the Consent Calendar for separate discussion. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 8, 1991 PAGE 4 MOTION: Councilmember Luna moved for the approval of Items A-1, A-2, and A-4 on the Consent Calendar. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) Councilmember Mullen asked if there is data comparing the water situation with years prior to 1990? Mr. Nichols stated the information is available. Councilmember Mullen requested the report also list 1989 well levels. She questioned if there is seawater intrusion in the Morro Basin. Mr. Nichols stated yes, the TDS in the Morro Basin which has been around 800-850 for the past few months has started to climb to approximately 1000 TDS and probably will continue to climb the rest of the summer. It is not unexpected. Councilmember Mullen asked if the wells may go out of commission this year again? Mr. Nichols stated at this time he cannot predict if that will happen. Councilmember Mullen asked if the City is making progress on the reclamation project with Dr. Alexander? Mr. Nichols stated yes, staff met with him last week; Mr. Nichols will be preparing a report to Council and the Cayucos Sanitary District concerning potential costs. Councilmember Wuriu asked how the TDS compares with past years? Mr. Nichols stated he has not compared current levels with prior years'. He said prior to 1989, the City sampled once every three months; now they are sampling weekly. He is, however, preparing a comparison and will give the results to Council. A-6 DECLARATION OF BAYSHORE BLUFFS PARK PROJECT AS CQVPLZTV�� ACCEPTANCE INTO PARK SYSTEM Councilmember Luna asked how the $92.77 per tree reimbursement was arrived at? Mr. Wolter stated he used the International Society of Arborists Tree Value Calculation; he explained how the formula worked. A-7 ACCEPTANCE OF RESIGNATION FROM SOLID WASTE MANAGEMENT BOARD Councilmember Luna stated Mr. Morrow's letter of resignation included a number of fine recommendations; he requested a joint meeting be held with the Solid Waste Management Board to discuss some of the issues. MOTION: Councilmember Luna moved a joint meeting with the Solid Waste Management Board be held in August to discuss issues raised by Mr. Morrow. The motion was seconded by Councilmember Mullen and unanimously carried. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 8, 1991 PAGE 5 A-8 NOTICE OF COMPLETION ON PROJECT NO 89-13. COMMUNICATIONS REPEATER BUILDING EMERGENCY GENERATOR Councilmember Baker noted the communications between the contrac- tor and the Engineering Department regarding modifications needed for this project. Mr. Nichols stated the item before Council is the completion of the project let for bid; the City is presently having work done on the safety matters. Councilmember Luna asked if the blue butterfly discovered on the Cloisters property is a recent discovery. Mr. Farrel stated it was suspected the butterfly was there when the EIR was initiated, and confirmed in the draft EIR; the consultants recommend further study. MOTION: Councilmember Luna moved for approval of Items A-3 and A-5 through A-9 as recommended. The motion was sec- onded by Councilmember Wuriu and unanimously carried. (5-0) Mr. Henderson stated this is the second and final reading of an ordinance to amend the URM mitigation program to allow additional time to file plans for upgrading building. MOTION: Councilmember Luna moved Ordinance No. 401 be read by title and number only. The motion was seconded by Councilmember Baker and unanimously carried. (5-0) Mr. Henderson read Ordinance No. 401 by title and number only. MOTION: Councilmember Baker moved for the adoption of the sec- ond and final reading of Ordinance No. 401. The motion was seconded by Councilmember Luna and unanimously carried. (5-0) ENNEW791K _k - NONE MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 8, 1991 PAGE 6 D. PUBLIC HEARINGS. REPORTS & APPEARANCES D-1 FORMATION OF CITY RESPONSE TO COASTAL COMMISSION STAFF REPORT ON WILLIAMS BROTHERS SHOPPING PLAZA APPEAL HEARINGS Mr. Farrel stated the California Coastal Commission will hold a hearing July 17th on the appeal of the Williams Brothers Shopping Center. Williams Brothers has prepared a revised site plan and want to present it to Council for their information. Mr. Farrel noted the Coastal Commission staff has requested comments from the City Council about the plan. He said the proposed plan is quite different than that approved by the City Council. Mr. Farrel reviewed his staff report which addresses many of the con- cerns expressed by Council and staff at previous hearings. If Council approves of the new plan, he suggested the support be preliminary and general; the plans have not been reviewed in any detail by the City. Council may wish to request the Coastal Com- mission continue action on the plan to allow the City an opportu- nity to review the plan more fully. Marshall Ochylski, landscape architect representing Williams Brothers, reviewed his letter dated 19 June 1991 which describes the newly designed project. Councilmember Mullen commented on the setback from the creek. Mr. Ochylski stated it is 50 feet. Councilmember Mullen stated a previous map showed an easement going through the property which is not shown on this map. Bruce Elster, project engineer, stated prior recorded instruments that provide access to the back parcel are not affected by the map and since they are not affecting the senior right to that easement to access the back portion of the property, it is not required to be shown on the map. He noted they are not allowed to dedicate easements to themselves. If the easement has to be relocated in order to maintain it, it will be done. Councilmember Luna stated the City has not had adequate time to review this proposal; he believes it appropriate to allow some time for the review. He asked Williams Brothers if they would request a postponement to the Coastal Commission to allow the review? Mr. Ochylski stated the City still has the conditional use permit and building permit process to conduct. Council has already approved a permit for a shopping center which has been appealed to the Coastal Commission. Williams Brothers have no assurance the Coastal Commission will agree to a proposal the City has approved in this instance either. They believe it is better to let the Coastal Commission go through their process at this time, and then come back through the City for the CUP pro- cess. He said the Williams Corporation is not willing to con- tinue the item any further than it has been, which has already been a year. • r MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 8, 1991 PAGE 7 Councilmember Mullen stated she believes there are substantial changes in the Vesting Tentative Map and she has talked with a number of people who believe the new proposal constitutes a new application. She asked why the City is not stating this fact? Ms. Skousen stated the matter is not before the City at this time. When the proposal is formally submitted to the City, then Council will make that determination. If the Coastal Commission in fact issues a CDP, it will not change the City's authority to act on the vesting map. Mayor Sheetz opened the hearing to the public for comments. Christine Granados, President of the Voters Initiative Committee reviewed VIC's analysis of Williams Brothers' most recent submit- tal to the Coastal Commission. She acknowledged the effort by Williams Brothers and stated the proposal takes significant steps forward, although it is not in complete compliance with Measure H. She said the new proposal calls for a site disturbance of 22 acres, and Measure H specifies only 13 gross acres; VIC believes the overall site should be reduced to conform. Ms. Granados reviewed VIC comments as submitted to the Coastal Commission dated July 8, 1991. She urged Council to request a postponement of the hearing until the City has more time to review the plan in detail. Tom White, 484 Rennell, said VIC does not have the authority to do what was just requested. The Planning Commission polices development and makes sure it meets the LCP. VIC has no author- ity or power given to it by the City or people of Morro Bay. He reminded Council the VIC proposal on Williams Brothers won by less than 1%. He encouraged Council to get on with the project. Mayor Sheetz asked if Mr. White is in favor of the current pro- posal by Williams Brothers? Mr. White said it looks good to him. He said Williams Brothers has done everything and continues to do things to satisfy a vocal minority. Councilmember Luna commented Mr. White has VIC to thank for the new proposal. Mayor Sheetz reminded the public comments are to focus on the new proposal so those can be forwarded to the Coastal Commission. Roger Ewing stated he concurs with the previous speaker; the Planning Commission should be the ruling body on this matter. He recommended Council ask the Coastal Commission to postpone the item and give the Planning Commission time to review the new proposal. Ray Kaltenbach said he does not trust Williams Brothers; they first said they could not build if they were allowed only 13 acres, now they have a proposal which shows they can. He asked why they do not drop the lawsuit against the City if they are trying to cooperate? MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 8, 1991 PAGE 8 Bruce Risley said the new proposal is definitely moving in the right direction. He also suggested Williams Brothers drop the lawsuit against the City and Councilmembers Luna and Mullen. Peter Diffley commented his reading of the Coastal Commission staff report reveals the new proposal is for 18 1/4 acres. Mary Phillips commented if the City demands the creek, they just might get it. Ann Freeman urged Council to request a delay to the Coastal Com- mission hearing on this matter to give staff and the Planning Commission time to look at the new plans; this is a tremendous change. Barbara Sanders stated Council dumped the Planning Commission because of delays in acting on this project, now the people who demanded their ousting are requesting more delays. She urged Council to get on with it. Mayor Sheetz closed the hearing to the public. Councilmember Luna asked if the Coastal Commission has the authority to review a proposal before the City has the opportu- nity to review it? Ms. Skousen stated the item before the Coastal Commission is the appeal of City Council approval of a project. That project is different from the proposal submitted this evening. She said the City Council is not bound by any Coastal Commission action; the City still has full authority over the CUP and vesting map. Councilmember Luna asked if the City and the Planning Commission will have the final say-so? Ms. Skousen stated if Council takes action contrary to that approved by the Coastal Commission, that action can be appealed to the Coastal Commission. Councilmember Wuriu stated a vast majority of people in Morro Bay would like to have a new shopping center. The controversy is very divisive for the City. He supports the principle of a com- promise as offered by Williams Brothers tonight. He believes a City representative should be sent to the meeting to state the City supports the concept in general. Councilmember Mullen stated she has not had enough time to com- ment on the new proposal; it is a significant change and she has a lot of questions. Councilmember Mullen stated she is disap- pointed in the whole process. Coastal Commissioner MacElvaine stated a very good case for denying the project when the Coastal Commission last considered the appeal. She suggested a represen- tative from the Council formally request the Coastal Commission postpone action on the appeal for at least one month so the City has an opportunity to make formal comments on the new proposal. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 8, 1991 PAGE 9 Councilmember Baker commented on the Council's recent action in response to VIC demands to dismiss the Planning Commission because they needed more time to properly review the project. Now VIC wants a delay. Councilmember Mullen responded the Plan- ning Commission had months to review the project; Council and staff have only had four days. Mayor Sheetz said whatever the Coastal Commission does on the proposal, it will come back for action by the City Council. Until it gets through the Coastal Commission process, Council is not in a position to make changes. The input from the Council is whether or not this is a viable plan and something the City can work with. MOTION: Councilmember Mullen moved Mayor Sheetz represent the City at the Coastal Commission hearing on July 17th to state the project is moving in the right direction, however, Council requests a one month postponement so Council can have time to make more detailed comments. The motion was seconded by Councilmember Luna. Councilmember Luna questioned Mr. Farrel on his comment in the staff report recommending the Coastal Commission approve a pro- ject within a "general building envelope". Mr. Farrel stated he believes the Coastal Commission is getting into site concerns which they should not be dealing with; that is City Council and Planning Commission purview. The general site approval will give the City more flexibility to work with the developer on placement of the buildings. He said subsequent to Council receipt of his staff report, he spoke to the Coastal Commission and they do not agree with this recommendation; they believe they should be specific. Councilmember Luna requested clarification; it is the City Attor- ney's opinion the City will have flexibility with the proposal when it returns to Council. Mr. Farrel stated the City will have total flexibility. He was just hoping to avoid the situation that if the City wants to do something different in the use per- mit, the developer will not have to return to the Coastal Commis- sion for an amendment to the Coastal Development Permit. Councilmember Wuriu approves of the idea of Mayor Sheetz repre- senting the City at the hearing; however, she should not have her hands tied by requesting a one month delay. Councilmember Mullen disagreed stating the Coastal Commission is getting very spe- cific, and if Council does not make specific comments, they will not be included. Mayor Sheetz stated this item is scheduled for hearing before the Coastal Commission on July 17th regardless whether Council does anything or not. She noted she previously sent a FAX and letter to the Coastal Commission members asking them to postpone the hearing until they consider the Measure H amendment; that request has been turned down. • • MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 8, 1991 PAGE 10 Councilmember Wuriu called for the question; the vote in favor was unanimous. The motion carried with Councilmembers Baker and Wuriu voting no. (3-2) Mr. Farrel stated the application is to convert three existing apartments into two motel units and a manager's quarters, and upgrading of the building exterior. It is before Council at this time because it is a waterfront lease site. Mr. Farrel reviewed the plan in detail and stated the Planning Commission has approved the concept plan. He noted the applicant is attempting to establish an economic use for the apartments; residential uses are to be abolished according to the lease. The Planning Commis- sion expressed some concerns of the motel use conflicting with the work conducted on the rest of the site; however, concluded the existing residential uses have not be adversely affected by the business. Most of the work and heavy operation is done dur- ing the day. There is no view obstruction proposed by the pro- ject, and it will require less parking spaces than the current use requires. He noted a vertical access to the shore has been provided by the applicant between buildings. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed. MOTION: Councilmember Wuriu moved for the adoption of Resolu- tion No. 77-91. The motion was seconded by Councilmem- ber Baker and unanimously carried. (5-0) n •.:•_lam OW • Mr. Henderson stated this Ordinance was prepared at Council request to hold two meetings per year with the Planning Commis- sion to discuss priorities and planning programs. These meetings are scheduled for April and October of each year. Mayor Sheetz opened the hearing to the public for comments; there were no comments and the hearing was closed to the public. MOTION: Councilmember Mullen moved Ordinance No. 402 be read by title and number only. The motion was seconded by Councilmember Luna and unanimously carried. (5-0) Mr. Henderson read Ordinance No. 402 by title and number only. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 8, 1991 PAGE 11 MOTION: Councilmember Mullen moved for the approval of the introduction and first reading of Ordinance No. 402. The motion was seconded by Councilmember Wuriu and unanimously carried. (5-0) D-4 REQUEST FOR MODIFICATION OF WATER RATIONING PROGRAM FOR MOBILEHOME PARKS Ms. Burt stated Don Howard, owner of the E1 Morro Trailer Court, has requested Council review water rationing for mobilehome parks. They are currently in the commercial category and rationing procedures limit them to their last two years' average; the amount for the E1 Morro Trailer Park is 2.76 units per space. Mr. Howard requests they be allowed the same as single family residential which is 9 units; staff offers a compromise to set mobilehome rationing amounts at 5 units per space. Historically, mobilehome parks do not use as much as single family residences or apartments. Ms. Burt noted apartments are allowed 7 units. Councilmember Mullen noted most mobilehome parks are on a single meter for the whole park, so would they be allowed 5 units times the number of spaces for their rationing allotment? Ms. Burt stated yes, apartments are calculated similarly. Councilmember Wuriu asked how the current figure was established? Mr. Burt stated she surveyed mobilehome parks. Don Howard, El Morro Trailer Court, said his letter sets forth the concerns; he will answer Council questions. He stated mobilehomes are in the same pattern as single family residences; he suggested 6 units for mobilehomes would be fair. Councilmember Baker asked Ms. Burt if she had a theory on why one of the parks has excessive usage as compared to others? Ms. Burt stated there are two mobilehome parks with high usage; one has some plumbing problems and one has extensive landscaping. Mayor Sheetz opened the hearing to the public for comments. Mr. Van Heuver, resident at the Blue Heron Mobilehome Park, stated the current ordinance discriminates and does not allow for extenuating circumstances; all mobilehome parks should not be listed in one category simply because they are mobilehome parks. He noted the diverse water uses not common to all parks: land- scaping, washing machines, showers, number of permanent residents vs. RV spaces, etc. He stated the Blue Heron Park has two meters; sometimes one meter is over the rationing limit and the Park is penalized. However, if the other one is under the limit, the first bill is not credited to avoid a penalty. The meters should be totalled before assessing a penalty. Mayor Sheetz asked if the meters are read at the same time? Ms. Burt stated they are, but the City has been reluctant to merge bills because the total reading will be higher and they would be MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 8, 1991 PAGE 12 charged a higher rate for each unit of water. She noted part of her discretion allows to manually combine the bills and, if the net bill is within the total allocation, she will not penalize them. Charles Palmer said a simple solution to the problem is to give the property owner the option of installing individual meters on each unit. Mr. Van Heuver said the usage figures for the Blue Heron indicate they have reduced their water consumption by 22%. He said they have discussed sub -metering with the owner of the Park, but it will cost $200 to $300 for each space and there are 71 spaces in the Park. Councilmember Luna suggested the item be referred to the Water Advisory Board for recommendations to Council. MOTION: Councilmember Luna moved this item be referred to the Water Advisory Board for their review and return to Council in September. The motion was seconded by Coun- cilmember Wuriu. There was discussion regarding the motion. Mayor Sheetz was con- cerned mobilehome owners need relief now. Councilmember Baker asked Mr. Van Heuver what he believes the rationing limit should be for mobilehome parks? Mr. Van Heuver thought 6.5 would be fair. SUBSTITUTE Councilmember Baker moved for adoption of'Resolu- MOTION tion No. 76-91 with an amendment to allow mobile - home parks a rationing limit of 7 units. The substitute motion died for lack of a second. Mayor Sheetz said she cannot support sending this item to the Water Advisory Board; it will not help the immediate problem. The main motion to send to the Water Advisory Board failed with Councilmembers Baker, Mullen, and Mayor Sheetz voting no. (2-3) Mayor Sheetz said something needs to be done to alleviate the immediate problem; and, also look specifically at Blue Heron because of their extensive landscaping. She suggested Mr. Henderson meet with the residents and property owner at this park to try to resolve the issue of sub -metering within the park. She also supported the staff recommendation to allow 5 units per space in mobilehome parks. MOTION: Mayor Sheetz moved for the adoption of Resolution No. 76-91. The motion was seconded by Councilmember Mullen. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 8, 1991 PAGE 13 Councilmember Luna requested the motion be amended to also send the item to the Water Advisory Board for review; there was no support for the amendment. The motion was unanimously carried. (5-0) Mayor Sheetz directed Mr. Henderson to work with the parks regarding this problem. Council recessed from 8:23 p.m. to 8:36 p.m. • , • •4a . _ • • • V. .� _ Randall Ruff stated the reason he made this request is he believes he could make a better judgment as a voter on the two significant water projects that import water from out of our area if they were both on the ballot at the same time. Both projects will have significant costs which Morro Bay will have to finance. Placing both projects on the ballot gives him some choices to make as a citizen and is a better way for him to express his judgment. It will also give Council an indication to set priorities. Mayor Sheetz opened the hearing to the public for comments. Robert Enns, 3421 Ocean Ave., Cayucos, and member of the Morro Bay Water Advisory Board, said the Water Advisory Board discussed this issue. He said a letter was sent by Supervisor Blakely inquiring as to communities' interest in Nacimiento water; at this time the subscribers for Nacimiento Water are still unknown. Mr. Van Lauren of the County Engineer's Department stated there will not be enough time to get responses from communities and put this on the ballot in November. Therefore, the Water Advisory Board was unable to recommend putting both issues on the ballot. Bruce Risley, member of different interpretation is true it is difficult ject, but it is equally Water. The State Water ject is less than State valid. the Water Advisory Board, said he had a of the Water Advisory Board meeting. It to get cost figures on a Nacimiento pro - difficult to get cost figures on State EIR shows the cost of a Nacimiento pro - Water. He believes Mr. Ruff's idea is Ray Kaltenbach agreed with Randall Ruff and Bruce Risley; there is no harm in putting both issues on the ballot. Mary Phillips, 2645 Ironwood Ave., said don't confuse people. She requested the ballot wording be such that no means No, and yes means Yes. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 8, 1991 PAGE 14 Jean Smith asked who will educate the citizens on the facts of the water projects? Mayor Sheetz closed the hearing to the public. Mayor Sheetz asked what is the estimated cost of adding an addi- tional item to the ballot? Ms. Davis said she will have to obtain the information from the County. Councilmember Wuriu said it may be confusing to put both issues on the ballot. The reason State Water is on the ballot is because the Council majority turned it down. Nacimiento is an approved priority by the City Council. Mayor Sheetz stated the actual decision with regard to Nacimiento lies with the County Board of Supervisors, and they are pursuing the issue. Councilmember Baker agrees Council has established Nacimiento as a long-term water project, and sees no need to place the matter on the ballot. Councilmember Mullen commented Nacimiento will probably be a County ballot issue in the 1992 election. Councilmember Luna said there is no harm in putting it on the ballot or leaving it off. As long as the question is clearly phrased, he does not believe the public will be confused. He supports the idea of placing the matter on the ballot. MOTION: Councilmember Mullen moved the Nacimiento Project be placed on the November 1991 ballot as an advisory mea- sure. The motion was seconded by Councilmember Luna and carried with Councilmembers Baker and Wuriu voting no. (3-2) Ms. Skousen read proposed ballot wording and title for the mea- sure. Council decided the wording for the title is "An advisory measure to determine whether the City of Morro Bay should seek to increase its water supply by participating with the County of San Luis Obispo to obtain water from the Nacimiento Reservoir"; and the question on the ballot, "Shall the City of Morro Bay partici- pate with the County of San Luis Obispo to increase its water supply by obtaining water from the Nacimiento Reservoir?" Ms. Davis requested Council approve the ballot wording by motion and staff will prepare a Resolution including the wording and placing the measure on the November ballot. She noted due to County deadlines, the timeperiod to receive arguments and rebut- tals will be shorter. Mayor Sheetz reviewed the schedule. MOTION: Councilmember Mullen moved for approval of a Resolution setting the ballot wording as indicated for the advi- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 8, 1991 PAGE 15 sory measure. The motion was seconded by Councilmember Luna and unanimously carried. (5-0) Rej Mr. Henderson noted staff has received 45 letters in favor of this project which are duplicates of some previously received by Council, but signed by different people. He stated staff believes it is premature for Council to take a position on the project at this time. Mayor Sheetz agreed; Council will hear input from the community, then will make comments which will be forwarded in a letter to the County. The hearing is being held at the request of the County. Mr. Farrel stated the City is in receipt of a letter from the County requesting the City's comments on a proposed amendment to the County General Plan to provide for construction of a golf course and resort at Hollister Peak. He noted these requests are generally responded to at a staff level, however, due to the pro- ject's significance, it is also presented to Council for their input. The General Plan Amendment proposal is to redesignate approximately 320 acres from its current Agricultural classifica- tion to a Recreational designation. The City is not asked to comment on the golf course itself, nor is the project officially before the County at this time. Mr. Farrel discussed the impacts of converting prime agricultural land to a recreational use not- ing its conflict with County policies, LCP and the Coastal Act. Approval for recreational use could set a precedent. Mr. Farrel read City of Morro Bay Land Use Policy 42 which requires the max- imum amount of agricultural land be maintained. He also dis- cussed the growth inducement aspects of the amendment; other developers may make proposals for the area if this one is suc- cessful, with residential use most likely. He stated the prop- erty owners of this site also own property across the Highway, and had proposed a residential subdivision of several hundred lots as part of their proposal. This portion of the proposal was dropped due to objections from County staff. Mr. Farrel suggested mutual City/County review of overall devel- opment of this area may be in order for the long term. He said the County plans to update the Estero Area Plan which will include this area and opportunities for public input will be available; Council may wish to recommend the County postpone the amendment until the Plan comes up for review. Mr. Farrel also discussed the groundwater resource impacts to downstream users (Morro Bay); particularly if residential devel- opment follows this project. He stated there is a lengthy list of uses allowed under the County General Plan's Recreational des- ignation which may or may not occur. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 8, 1991 PAGE 16 Councilmember Luna asked if Mr. Farrel to plans for other golf courses in the and one outside Paso Robles? Mr. Farrel had information relative County; Rancho E1 Chorro said he did not. Tom Courtney, Courtney & Associates and project architect, informed Council that Robert Trent Jones of Palo Alto, Califor- nia, a world renowned golf course architect, designed this pro- ject. He said the project is the result of a 2' year environmen- tal study that has been reviewed by numerous public agencies and listed some of the concerns of the agencies. He stated the pro- ject includes a 140 acre wildlife preserve and public access to Hollister Peak. Mr. Courtney reviewed the project's potential benefits to the Morro Bay Estuary by decreased amount of sedimen- tation flowing into it. The project will result in a 10% to 15% reduction of water use upstream of City wells, plus approximately 300 acre feet per year if the City develops a reclamation project. Steve Nukes, Stephen A. Nukes & Associates, Business Planning and Management Consultant, reviewed a preliminary economic impact statement prepared at the request of the Hollister Peak Golf Course applicant. He projected employee and visitor increases as a result of the development; assuming a 30% capture rate, Morro Bay could realize increased retail sales revenue of $5.39 mil- lion, increased motel income of $4.4 million, increased bed tax at $352,000, increased sales tax of $21,000 and 145 additional jobs creating $2.01 million in wages. Councilmember Mullen asked what the basis is for the figures used? Mr. Nukes stated he used Urban Land Institute figures based on the size and other features of the proposed project; he said he would get the information to Councilmember Mullen. Coun- cilmember Mullen stated Council receives a lot of economic reports, but they are usually one-sided in favor of the project and do not balance out. She would like to see economic informa- tion on the adverse impacts of the project as well. Mayor Sheetz asked if there will be a bus to bring people to Morro Bay? Mr. Nukes inidicated it was suggested; it would be a means to get people into Morro Bay. Councilmember Baker commented with regard to the economic impact of the project, it has been policy the developer be required to install roads and sewer and water mains. Councilmember Mullen stated there are other impacts such as air pollution, wear and tear on existing roads. Councilmember Luna asked if the restaurant, swimming pool, gym, etc. will be open to the public? Mr. Nukes stated he assumes one could buy usage through a day rate, but it may be something that should be pursued through the permit process. Bob Armet, Courtney & Associates, stated they have conducted a survey of 1400 people from the golfing community, and only 26 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 8, 1991 PAGE 17 were opposed to the project to some degree. He said the County of San Luis Obispo is turning away from agriculture and more toward tourism. He pointed out a golf course will not damage the prime agricultural land, and it could be converted back to agri- culture at some later date. Councilmember Luna asked if it is possible to receive copies of written responses from environmental agencies? Mr. Armet stated there presently is not a lot of correspondence; however, they anticipate more. Councilmember Luna requested copies as they are received. Mayor Sheetz opened the hearing to the public for comments. Ray Kaltenbach, 473 Sicily, said a developer always paints a rosy picture of their project and the benefits. He asked what about the impact of all the people coming in here? The additional rev- enue generated by the project will not keep up with the added demands on services. The average working person cannot afford to live in Morro Bay. Randy Ruff asked if the property is presently under the Williamson Act; and, if so, is it true you have to provide notice to withdraw land from the Williamson Act before you can use the property for the new use? Mr. Courtney stated the property is not under the Williamson Act. Mr. Ruff commented on the small size of the proposed ecological preserve. Regarding the job inducing benefits, as golf course employees one would probably see aliens employed for the grounds -work as seen in the farm- lands; we do not see many voting citizens working the sugar pea fields. Ernie Miller reviewed the benefits of the project: using treated sewer water to recharge the basin; percolation in the basins; control of the creek; nature trails; bringing additional people here; increased sales tax. Jack Franklin stated Mr. Hammond, one of the owners of the prop- erty, does business in 37 states and he selected San Luis Obispo at Hollister Peak to develop this project. If he does not build here, 6 million people will travel along Highway 1 unable to get close to Hollister Peak and passing Morro Bay by taking their tourist dollars with them. Terry Golgren, Morro Bay resident for one year, stated he has been visiting Morro Bay since 1977 when it was easy to get on the Morro Bay golf course. It became so difficult over the years to get a tee -time, he started vacationing in Monterey where there are a number of golf courses. He said there is no better place for family oriented people to spend their vacation than a devel- opment such as has been proposed; it will attract tourists year- round. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 8, 1991 PAGE 18 Robert Enns, 3124 Ocean Ave., Cayucos, said the City of Morro Bay's number two priority for water projects is reclamation. This project affords the City an opportunity for a customer for the reclaimed water. The architect for the project has expressed a willingness to use reclaimed water which will provide addi- tional groundwater to recharge our basins. Maria Bruce, Morro Bay, was opposed to the proposed Hollister Peak Golf Course. She said Hollister Peak is one of the Seven Sisters and stands as a symbol of the unique, natural beauty of this area. The project would halt existing crop yield on prime agricultural land. It will destroy natural habitat. She was concerned about the precedence the development would set for other projects. She believes there are enough golf courses in the County, and we need to preserve this true open space. Wayne Adams agreed with the comments on the beauty of Hollister Peak. He is in favor of the project because of his desire to get closer to the Peak and view the archaeological preserve. He does not consider the project negative. Millie Benson-Canet stated she has lived on Canet Road at the base of Hollister Peak for 20 years. She said the area is beau- tiful and she would like for it to stay the way it is; she sug- gested the developer chose a different area for his golf course away from the mountain. Mayor Sheetz closed the hearing to the public. Mayor Sheetz discussed a survey conducted two years ago by the County's Mayors and City Managers asking the community if there is support for a It, sales tax and, if there was, what people would like to see it go towards. They thought the number one answer would be water, but it was open space. People wanted the money to be used for the Seven Sisters; number one was Hollister Peak. Now there is a developer willing to dedicate this as open space, and the land at the base of the Peak will not be dese- crated whatsoever. She is supportive of the project and stated, quoting Bill Farrel, "If you cannot have open space, the next best thing you can have is a golf course." She believes the pro- ject will be a shot in the arm to Morro Bay economically. Councilmember Mullen agreed preserving open space is a positive step. She said the staff report lists some very valid concerns. The State Coastal Act and the County's General Plan designates Prime Ag as the number one coastal use. She is not in favor of looking at the change of use for this parcel by itself, but would rather consider it in totality with the Estero Plan review. She believes the project is precedent setting and will be a growth inducement. The Seven Sisters should be purchased as open space from Highway 1 to Los Osos Valley Road. She said we are not just talking about a golf course, but a major convention center and hotel complex. She supports the staff recommendation; this is an inappropriate time for the Board of Supervisors to consider this MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 8, 1991 PAGE 19 application; it should be considered as part of an overall Gen- eral Plan review. Councilmember Wuriu stated there are a number of serious ques- tions to be asked. He is concerned with the water problems; some of the statements made this evening will have to be substantiated with real evidence. The County will need to find out the impact of this large scale development. He basically believes it is a good idea, but strongly suggested the Board of Supervisors pro- ceed with caution. Councilmember Baker stated there were some comments about low - paying jobs, but at least they will be jobs. He said if someone proposed a heavy industry with high paying jobs, the resistance to the project would be greater. Also, if there was a proposal for a residential development, the people would oppose it. He said the agriculture owners have sold their land to the devel- oper; it must not be practical or profitable to continue farming the area. He agreed with Mayor Sheetz, and the Board of Supervi- sors should be urged to go ahead with the project. Councilmember Luna asked several questions regarding the chal- lenge of the golf course; Mr. Courtney assured him it will be a challenging course. Councilmember Luna stated it is clear in the County's General Plan and Coastal policies that prime agricul- tural land is to be preserved. He asked what are the legal implications; can the County over -turn those policies? Ms. Skousen stated the County has the authority to amend their Gen- eral Plan if it desires to change the land designation from agri- culture to recreation. Councilmember Luna said the concerns he wishes to relay to the County Board of Supervisors are the water, the potential growth inducement, what kind of precedent might be set for the rest of the valley, and the change in the zoning. He agrees a golf course is more desirable than housing; however, the golf course will make it a desirable place to live near. He is not totally opposed to the project, but would have a hard time supporting it. Councilmember Luna is interested in hearing more from both sides; there is still a great deal of work that has to be done by both the County and developer. He requested the comments and concerns raised by the public be included with Council comments to the Board of Supervisors. Mr. Farrel was directed to forward the comments to the Board of Supervisors. D-7 REPORT ON FINAL PROJECT COSTS TO ABATE NUISANCE OF ILLEGAL EXCAVATION AT 2590 LAUREL STREET, AND AUTHORIZATION TO LEVY NUISANCE ABATEMENT LIEN AND COLLECT PROJECT EXPENSES Ms. Skousen requested this item be continued to the first meeting in August. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 8, 1991 PAGE 20 MOTION: Councilmember Mullen moved this item be continued to the first meeting in August 1991. The motion was sec- onded by Councilmember Luna and unanimously carried. (5-0) E. CLOSED SESSION E-1 GOVERNMENT CODE 654956.9(C): POTENTIAL LITIGATION E-2 GOVERNMENT CODE G54957.6(A): LABOR RELATIONS MOTION: Councilmember Mullen moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmem- ber Luna and unanimously carried. (5-0) Mayor Sheetz read the Closed Session statement. The meeting adjourned to Closed Session at 10:24 p.m. and returned to regular session at 11:15 p.m. F. ADJOURNMENT MOTION: Mayor Sheetz moved the meeting be adjourned. The motion was seconded by Councilmember Mullen and unani- mously carried. (5-0) The meeting adjourned at 11:16 p.m. Recorded by: Z�,c4mx__-� ARDITH DAVIS City Clerk