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HomeMy WebLinkAboutJuly to Decemberri 4 MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 27, 1982 RECRE^.TION HALL - 7:30 P.M. Paul Baxter, City Administrator, called the roll. The meeting was adjourned for lack of a quorum, to January 6, 1983, in the City Hall Conference Room. RESPECTFULLY SUBMITTED pout PAUL BAXTER CITY ADMINISTRATOR MORRO BAY CITY COUNCIL•. N.'."�3N0. REGULAR MEETING - DECEMBER 13, 1982 Dato w Action RECREATION HALL - 7:30 P.M. Mayor Shelton called the meeting to order at 7:30 p.m. ROLL CALL PRESENT: Eugene R. Shelton John Lemons Bruce Risley Bud Zeuschner ABSENT: Rodger Anderson STAFF: Paul Baxter Michael LeSage John Bressan Murrel Crump Dave Howell Gary Napper Gere Sibbach Steve Wolter Bernie Zerr Peggy Buchanan PRESENTATIONS: Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Public Works Director Community Development Dir. Acting Police Chief Asst. to City Administrator Finance Director Recreation Director Fire Chief Deputy City Clerk Councilmember Zeuschner presented the Mayor with an American Flag given to him by his father, which will fly at City Hall. The Mayor thanked him for the flag. A. PUBLIC HEARINGS, REPORTS & APPEARANCES: A-1 SALE OF CITY BOAT MOORINGS Mr. Baxter stated that Mr. Bressan would provide the staff report for Council's information. Mr. Bressan stated that previous Council decisions had placed a moratorium on the sale of all City boat moorings due to what had appeared to be profiteering by mooring owners. Mr. Bressan stated that the Harbor Advisory Board had met to study this situation and had submitted their recommendation to the Council for consideration. The Harbor Advisory Board recommended that a new agreement be drafted which would cover specific problem areas such as annual renegoations, City cancellation with 30 day notice, as well as other requirements to assist with enforcement of the transfer of moorings. Mr. Bressan noted that if it is Council's desire, staff will draft an Ordinance to be presented at a future Public Hearing. Mayor Shelton opened the hearing to the public. 1 9 • Mr. Cliff Smith stated that as Chairman of the Harbor Advisory Board, he was concerned that buyers of boat moorings knew exactly what they were buying. Mr. Smith felt that unfair practices had led people to believe they had more than the mooring tackle. MOTION: Councilmember Lemons moved that the Public Hearing be closed. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Lemons, Zeuschner, Risley, Shelton NOES: None ABSENT: Anderson Councilmember Lemons asked if a priority listing for moorings existed. Mr. Bressan noted that no need for a listing existed, as moorings had always been transfered from owner to owner, with no involvement of the City. This is one area Mr. Bressan asked Council for policy direction on, whether these moorings should be returned to the City before transfer, or whether Council would want to continue the current practice. Councilmember Lemons felt that the recommendations of the Harbor Advisory Board would not completely solve the problems, and felt that the moorings should be returned to the City prior to transfer. MOTION: Councilmember Zeuschner moved that Council direct staff to draft an Ordinance or Resolution which would incorporate Council suggestions concerning transfer of boat moorings, and direct the Harbor Advisory Board to consider this draft and then set the matter for Public Hearing at the earliest convenient date. The motion was seconded by Councilmember Risley and carried by the following roll call vote: AYES: Zeuschner, Risley, Lemons, Shelton NOES: None ABSENT: Anderson Mayor Shelton asked that item B-1, Consideration of Appointment of two Planning Commissioners and two Refuse Board Members, be postponed until a Special Meeting could be held, where the applicants could be interviewed in a more informal atmosphere. Mayor Shelton suggested that Council set a date for this Special Meeting after the first of the year. Councilmember Risley asked if the meeting could be moved forward to an earlier date. Council discussed various dates, and decided that a Special 2 Meeting of the Mor#Bay City Council would *held Thursday, January 6, 1983, for the purpose of selecting applicants for the two Planning Commission and the two Refuse Franchise Board vacancies. MOTION: Councilmember Zeuschner moved that a Special Meeting of the Morro Bay City Council be set for Thursday, January 6, 1983, at 5:00 p.m. for the purpose of selecting applicants for the two Planning Commission and the two Refuse Franchise Board vacancies. The motion was seconded by Councilmember Risley and carried unanimously. (4-0-1) A-2 CONSIDERATION OF AN ORDINANCE TO ESTABLISH RENT STABILIZATION (CONTROL) IN MOBILEHOME PARKS WITHIN MORRO BAY Paul Baxter provided Council with the staff report, and stated that a draft ordinance had been prepared, using the Pismo Beach Ordinance as a model and incorporating previous Council suggestions from the November 22, 1982, meeting. Mr. Baxter noted that this draft had not been reviewed by Mr. Lesage, as it was a working draft, and staff wished to wait for Council and public input before a final draft was drawn up. Mayor Shelton then opened the Public Hearing. Mr. Glendenning stated that none of the mobilehome park tenants or owners had been consulted regarding the drafting of this ordinance, and several of the tenants had suggestions for incorporation into the Ordinance. Mr. Glendenning also stated that in his opinion, a Tenant's Association would not be very feasible. Mr. Craig Amspoker, of SLOMOTA, felt that several sections of the Ordinance should be amended or deleted, such as the reference to rent increase procedures, and minimum numbers of spaces in a park. Mr. Amspoker felt that any increases above the CPI would fall under the Hardship category. Morris Levin, a Pismo Beach resident and Vice President of SLOMOTA, related the history of the Pismo Beach Mobilehome Rent Control Ordinance, and felt that Morro Bay should adopt this Ordinance. Mr. Levin felt the Ordinance would be found to be Constitutional, if challenged in court. Mr. Rod Calder, a member of "FREED" felt that rent control was not the answer to the problem of increasingly high rents. Mr. Calder felt that competition was the best solution, and that government should not impose further restrictions on free enterprise businesses. Don Durant, park owner, noted that the high resale value of mobilehomes was in part due to the park owners conciencious maintenance of the park grounds Mr. Durant informed Council 3 that in his park, heOffered 12 month leases as*ell as month to month leases for his tenants. He also stated that he had tenants receiving Housing Assistance. Mr. Gene Durand, owner of Rancho Paso Robles Mobile Home Park, felt that most park owners would not be able to recoup their investment if rent controls were imposed, and felt that a limit of 75% of the CPI was unfair. Mr. Durand also felt that rent controls could cause bad relationships between owners and tenants. Mr. Guy Wilson felt that friendly discussion between park owners and tenants would be the best solution. Mr. Wilson also noted that costs and maintenance for small parks was similar to that of larger parks. Jim Goldsbrough of Silver City Mobilehome Park, felt that the owners had "captive tenants" in the senior citizens tenants, in that expenses to move were to great for many elderly citizens. Mr. Goldsbrough also agreed that a Tenant's Association would be difficult to organize. Mr. Miles Chatfield, owner of the Blue Heron Mobilehome Park, spoke in opposition to rent controls, and noted that restoration and maintenance costs in his park had necessitated rent increses, but that these increases were less than 10%. Mr. Don Campbell urged Council to recommend negotiations between the tenants and owners as a solution to this problem. Mr. Campbell felt that an Ordinance would lessen the leases credibility. Mr. Ed Thompson, of Western Mobilehome Owners Association, felt that the issue of rent control was not limited to Morro Bay but was state and even nation wide. Mr. Thompson cited statistics of other ordinances in other cities, and noted that of almost 300 proposed rent control ordinances, approximately 250 had been turned down. Jim Buttery spoke in opposition to rent control. Mr. Buttery agreed that most tenants would not be interested in participating in a Tenant's Association. Mr. Buttery felt that guidelines should be established for rent increases and suggested that an Ad Hoc Committee be set up to study the problem. Mr. H. Hemp spoke in opposition to rent control. Mr. Ross Hale felt that 75% of the CPI was unfair to park owners, and to tenants, as it would discourage maintenance and improvements in parks. Mr. Levin had further comments regarding the state law that states that rents can be increased every 60 days, with proper notification of tenants. rd Mr. Wes Silva notedoat State law requires th* month to month rent be equal to rent for 12 month leases as well. Mr. Don Durant also noted that leases can be granted for any number of years. Mr. George Hoffman, park owner, felt Council should not be involved in this business, or any other such business. MOTION: Councilmember Risley moved that the Public Hearing be closed. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Risley, Zeuschner, Lemons, Shelton NOES: None ABSENT: Anderson Councilmember Zeuschner agreed that mobilehome parks were different from other rentals, however he was not sure that an Ordinance would be the best solution. Councilmember Zeuschner also stated his concern over the viability of Tenant's Associations, and asked if taxes would be included in mandated costs. Mr. Baxter stated they would be included. Councilmember Risley stated his sympathy for the park tenants, and felt that many of the park owners were unfair in their rent practices, and the senior citizens were suffering as a result. Councilmember Risley felt that the Council needed to protect the citizens from this sort of practice. Councilmember Lemons felt that there would be no difference between enacting a rent control ordinance for mobilehome parks, and enacting any other sort of control over the price a business can charge for goods or services. Councilmember Lemons felt that the business or park owner should not have restrictions placed on the amount of profit or return he is allowed. Mayor Shelton agreed that additional controls of this type are not always beneficial, however he did agree that there was a problem. Mayor Shelton felt that the rental increases should be studied, and that cooperation and committment to negotiation should be given by both sides. There was additional discussion on possible alternatives to a rent control ordinance. MOTION: Councilmember Lemons moved that the Mayor appoint an Ad Hoc Committee to study the rent control issue; that this Committee consist of an equal number of mobilehome park owners, and tenants; and that this Committee be directed to meet with staff if necessary and report back to the City Council when additional information is gathered; and that further consideration of this Ordinance be tabled until such 5 time as Oected by the City Counci l The motion was seconded by Councilmember Zeuschner. Mayor Shelton suggested that Council's comments be included in any discussion or study by the proposed Ad Hoc Committee. Councilmember Zeuschner suggested that perhaps the Chairman of the group should be a person who is not from either group. There was a vote on Councilmember Lemons motion, and the motion was carried by the following roll call: AYES: Lemons, Zeuschner, Risley, Shelton NOES: None ABSENT: Anderson Mayor Shelton introduced Supervisor Steve MacElvaine, and Supervisor -Elect Bill Coy, who were present in the audience. A-3 CONSIDERATION OF REVISIONS OF ORDINANCE NO. 54 (MORRO BAY MUNICIPAL CODE SECTION 2.24.030) REGARDING THE PARKS AND RECREATION COMISSION Steve Wolter provided the staff report for Council's information, and reviewed the two proposals to amend the Ordinance which requires a City Council Ex-Officio member to the Parks and Recreation Commission, as per Council's earlier direction. Mayor Shelton opened the Public Hearing. There were no public comments. MOTION: Mayor Shelton moved that the Public Hearing be closed. The motion was seconded by Councilmember Risley and carried unanimously. (4-0-1) MOTION: Councilmember Risley moved that Council adopt Proposal No. 1 as submitted in the staff report. The motion was seconded by Councilmember Lemons and carried unanimously. (4-0-1) Council directed that this Ordinance then be set for Public Hearing for a first reading at their meeting of January 10, 1983. B. UNFINISHED BUSINESS B-1 CONSIDERATION OF APPOINTMENT TO TWO (2) VACANCIES ON THE PLANNING COMMISSION AND TWO (2) VACANCIES ON THE REFUSE FRANCHISE BOARD This item was set for Public Hearing on January 6, 1983, 5:00 p.m. A B-2 CONSIDERATION O&ONING ORDINANCE TEXT AMEAENT RELATIVE TO THE INCLUSION OF A NEW CHAPTER TO REGULATE THE ISSUANCE OF COASTAL DEVELOPMENT PERMITS AND SETTING FORTH APPROPRIATE PROCEDURES Mr. Baxter stated that this was the second reading of the Ordinance which would provide for Coastal Development Permits and Procedures pursuant to the City's Local Coatal Program. MOTION: Councilmember Lemons moved that this Ordinance be read by title and number only, and that it constitute the second reading. The motion was seconded by Councilmember Risley and carried by the following roll call vote: AYES: Lemons, Risley, Zeuschner, Shelton NOES: None ABSENT: Anderson Mr. Baxter read the Ordinance by title and number only. MOTION: Councilmember Lemons moved that Council adopt the Ordinance as read. The motion was seconded by Councilmember Risley and carried by the following roll call vote: AYES: Lemons, Risley, Zeuschner, Shelton NOES: None ABSENT: Anderson B-3 CONSIDERATION OF CONVERSION FROM COUNTY LEASE TO CITY LEASE FOR PARKHURSE GALLERY, LEASE SITE 68, 68W (CONT. FROM 11 22 82) -- B-4 CONSIDERATION OF CONVERSION FROM COUNTY LEASE TO CITY LEASE FOR ROBERT PYLE GALLERY, LEASE SITE 67, 67W, (CONT. FROM 11/22/82 B-5 CONSIDERATION OF CONVERSION FROM COUNTY LEASE TO CITY LEASE FOR M & M GENERAL REFRIGERATION, LEASE SITE 144, 144W (CONT. FROM 11/22/82 B-6 CONSIDERATION OF GRANTING LEASE TO MORRO BAY YACHT CLUB FOR MOORING ZONE Al-3 Mr. Baxter asked if the above four items could be considered together, as they were all lease items previously considered by Council. Mr. Baxter noted that Mr. Wallace had prepared a summary sheet itemizing all the changes that had been incorporated into the latest lease documents. Councilmember Zeuschner asked Mr. LeSage if these conversions were considered a transfer, or were they a termination of existing leases and granting of a new lease, and if so, did they 7 require the public A ing process. • Mr. LeSage stated that the City is not required to go to public bid for the lease conversions, because they were renewals and not terminations. Councilmember Zeuschner related the contents of a letter received from Howard Gaines which cited certain Government Code Sections that would require Morro Bay to go to public bid. Mr. LeSage informed Council that the sections of the Government Code cited in Mr. Gaines' letter did not pertain to Morro Bay, only to County owned property, where certain other conditions exist. Councilmember Risley stated that he had received a letter also from Legal Action Watch, and asked for clarification regarding lease conversions vs. lease renewals. Mr. LeSage clarified by reading the sections of the code and explaining them for Council's benefit. Howard Gaines spoke regarding the City's obligation to hold a public bid for these leases, and read a letter pertaining to the San Luis Harbor in Avila. Mr. LeSage stated that San Luis Harbor is County property and might have other history not present in Morro Bay. There was additional discussion regarding the requirement for public bidding. Jack Wallace spoke regarding the specifics of each lease, and related to Council the changes that had been made since the previous meeting. Councilmember Risley asked what the rental difference would be between the re —appraised County Leases, and City Leases under the percentage rental. Mr. Wallace supplied the Council with the approximate figures, and stated that these would vary depending upon the success of the business. Deanna Davis spoke regarding her lease conversions, and objected to the 10% of gross sales. Ms. Davis noted that business was poor and the 10% was too high. Councilmember Zeuschner stated that the rents should not be so high as to be a deterent to business. Councilmember Risley stated that he felt sympathy for Ms. Davis and perhaps some consideration should be given to a lower percentage rental. Councilmember Risley felt that a uniform collection and penalty policy should be developed to treat D delinquent lease renss similar to delinquent *,er bills. Jack Wallace stated that enforcement had begun in September, and would continue, with collection of back rent, and correction of violations. Mr. Wallace noted that the leases are land leases only, and that improvements belong to the leaseholder. He explained that in the event of a public bid, where the bid did not go to the current leaseholder, all improvements would have to be moved or would go to the City. Mr. Robert Gray addressed Council and spoke about the drop in artists income this year. There was additional discussion regarding the lease conversions. MOTION: Councilmember Risley moved that Council direct staff to have a written legal opinion developed and that the percentage rental for art works be re-evaluated and that staff be directed to develop a uniform penalty and enforcement policy regarding delinquent leases. The motion was seconded by Councilmember Zeuschner and failed by the following roll call vote: AYES: Risley, Zeuschner NOES: Lemons, Shelton ABSENT: Anderson Councilmember Lemons questioned the expiration date of the leases. Mr. Baxter stated that several of the leases would expire shortly, and that there was some immediacy to Council action. Mayor Shelton noted that this was the third time this matter had been before Council, and that some decisions should be made at this point. MOTION: Councilmember Lemons moved that the Leases (items B-3 through B-6) be approved as submitted. The motion was seconded by Mayor Shelton and carried by the following roll call vote: AYES: Lemons, Shelton, Zeuschner NOES: Risley ABSENT: Anderson B-7 FURTHER CONSIDERATION OF SIGN ORDINANCE AMENDMENT Item B-7 was continued to later in the meeting. C. NEW BUSINESS 2 C-1 REQUEST FOR "S*E-CROSSING" AT HWY. 1 YERBA BUENA (GRACE MELTON/FAYE MCGONAGILL) Grace Melton, P.O. Box 451, presented photographs to Council of the Hwy. 1/Yerba Buena crossing, and explained to Council the action she and Mrs. McGonagill had taken in contacting Cal Trans to request a signal at this intersection. Faye McGonagill stated that she had received a letter from Cal Trans stating that a study will be done of that intersection. She requested that the City Council also contact Cal Trans to request this needed signal. Councilmember Zeuschner suggested that perhaps a City Council Resolution could be drafted and forwarded to Cal Trans, to enforce the need for a traffic signal. Mr. Baxter stated that a Resolution could be drafted by staff for presentation to Council at their next meeting. MOTION: Councilmember Zeuschner moved that Council direct staff to prepare a Resolution for transmittal to Cal Trans, regarding the need for a traffic signal at Hwy. 1 and Yerba Buena. The motion was seconded by Councilmember Lemons, and carried unanimously. C-2 REQUEST BY COUNTY OF SAN LUIS OBISPO FOR PERMIT TO DRILL A NEW WATER WELL Mr. Baxter stated that a request had been received from the County of San Luis Obispo, to drill a replacement well to serve the Golf Course area. Mr. Baxter noted that the new well would be located in closer proximity to the existing well, and would not produce domestic quality water. Gary Hover, from the County of San Luis Obispo, stated in response to a question from the Council, that the water will be used only for irrigation. MOTION: Councilmember Zeuschner moved that Council approve the request for a permit as submitted in the staff recommendation, and adopt the Resolution as submitted. The motion was seconded by Mayor Shelton and carried unanimously. (4-0-1) C-3 REQUEST FOR TWO HOUR PARKING LIMITATION ON THE NORTH SIDE OF HARBOR STREET, BETWEEN MORRO BAY BLVD. AND PINEY WAY (FRED SCHENK) Mr. Baxter stated that a letter received from Mr. Fred Schenk had been reviewed by the Public Works Department, and it was being recommended to Council, that a 2 hour parking zone be authorized on Harbor Street from Morro Bay Blvd. to Piney Way. Mr. Fred Schenk stated that he concurred with the staff report HK and recommendation. • C� MOTION: Councilmember Risley moved that Council accept the staff recommendation and authorize the two hour parking zone on Harbor between Morro Bay Blvd. and Piney Way. The motion was seconded by Councilmember Zeuschner and carried unanimously. (4-0-1) Mayor Shelton asked about the enforcement of this new zone. Mr. Baxter stated that it would be treated as other limited time parking zones, and that the police would respond to complaints. Council adjourned to close session at 11:15 p.m. and reconvened to open session at 11:38 p.m. B-7 FURTHER CONSIDERATION OF SIGN ORDINANCE AMENDMENT Mr. Baxter informed Council that draft language had been prepared and submitted to the Planning Commission for their review and their recommendation was to forward to the City Council. Mr. Baxter stated that if Council so desired, this draft ordinance would be noticed for Public Hearing. MOTION: Councilmember Zeuschner moved that a Public Hearing be set for January 10, 1983, for consideration of amendment to the Sign Ordinance. The motion was seconded by Councilmember Risley and carried unanimously. (4-0-1) C-4 LETTER OF REQUEST TO TRANSFER LEASEHOLD RIGHTS, TITLE AND INTEREST IN WATERFRONT LEASE 50 AND 50W Mr. Baxter stated that this item was premature, and recommended that it be continued when further information was available. MOTION: Councilmember Zeuschner moved to continue this item when further information is available. The motion was seconded by Councilmember Lemons, and carried unanimously. (4-0-1) C-5 INFORMATIONAL REPORT REGARDING A RECOMMENDATION BY THE REFUSE FRANCHISE BOARD THAT COUNCIL CONSIDER AN AMENDMENT IN THE $3.60 MANDATORY REFUSE RATE John Bressan reported that the Refuse Board had met to consider the request of Morro Bay Garbage for a rate increase to cover the added costs incurred when they took over the billing. Their request was for $4.16 for the mandatory rate, and the Refuse Franchise Board was recommending an increase to $4.00 for the mandatory rate. Mr. Bressan stated that if Council desired, this item could be noticed for a Public Hearing. 11 There was discussion6garding the need for a P*ic Hearing. MOTION: Councilmember Lemons moved that a Public Hearing be set to consider the request by Morro Bay Garbage for a rate increase in the mandatory rate, and that the public hearing be scheduled for January 24, 1983. The motion was seconded by Councilmember Zeuschner and carried unanimously. (4-0-1) There was a discussion regarding the request from Morro Bay Garbage, and certain information that should have been presented to Council. Councilmember Lemons noted that the Public Hearing would provide additional information and input. C-6 APPROVAL OF AMENDMENT NO. 1 TO MASTER AGREEMENT FOR CONSTRUCTION MANAGEMENT SERVICES BETWEEN THE CITY OF MORRO BAY AND BROWN AND CALDWELL HEERY FOR MANAGEMENT OF THE CONSTRUCTION OF THE MORRO BAY/CAYUCOS OUTFALL John Bressan provided Council with the staff report, and stated that the amendment to the Master Agreement would add services for the Wastewater Treatment Plant Construction, and would allow for Task Orders of 6 months duration. The $182,228 would be a fixed price. Councilmember Zeuschner asked if Cayucos had seen and approved the agreement. Mr. Bressan stated that Cayucos would be considering the Amendment at their meeting that evening. Mr. LeSage stated that the the Resolution should be approved subject to his review and approval. MOTION: Councilmember Lemons moved that Council adopt the Resolution approving Amendment No. 1 to the Master Agreement for Construction Management Services between the City of Morro Bay and Brown and Caldwell Heery, as per the recommendation of staff subject to the approval of the City Attorney. The motion was seconded by Councilmember Risley and carried by a unanimous vote. (4-0-1) C-7 MASTER FEE RESOLUTION AMENDMENTS - COMMUNITY DEVELOPMENT DEPARTMENT Mr. Baxter stated that the Director of Community Development had prepared amendments to the Master Fee Resolution, to provide for issuance of Coastal Development permits in compliance with the State Subdivision Map Act, and to revise fees for the issuance of the Use Permit, Variances and other entitlements. 12 Councilmember Risle sked if the increased fewould increase revenues. Mr. Crump stated that this was not certain, as these were mainly new fees, or other seldom used fees. Mr. Baxter stated that most likely any increases in revenues would be offset by added personnel costs to administer the permits. MOTION: Councilmember Risley moved that Council adopt the Resolution as submitted. The motion was seconded by Councilmember Lemons, and carried unanimously. (4-H-1) C-8 DISCUSSION OF CANCELLATION OF DECEMBER 27, 1982, MEETING Mr. Baxter suggested that due to the next regular Council meeting falling the Monday after the Christmas holidays, and the possibility that it would not be convenient for citizens to attend this meeting, that the meeting be cancelled and any items scheduled be carried over until the first meeting in January, 1983. MOTION: Mayor Shelton moved that the regular meeting of December 27, 1982, be cancelled due to the holiday season. The motion was seconded by Councilmember Risley and carried unanimously. (4-H-1) D. CONSENT CALENDAR D-1 CITY COUNCIL MINUTES OF ADJOURNED MEETING OF 11/22/82 AND REGULAR MEETING OF 11/22/82 Mr. Baxter recommended that the above minutes be approved as submitted. D-2 CPI ADJUSTMENTS FOR HARBOR RENTS Mr. Baxter recommended that Council adopt the 1983 recommended CPI rate as submitted, and in accordance with the adopted Harbor Rules and Regulations. D-3 ACCEPTANCE OF IMPROVEMENTS AND DEDICATION OFFER BY JORDAN MILLER, INC., ON SEQUOIA STREET Mr. Baxter recommended that Council accept the offer of dedication and authorize the Director of Public Works to release the contractors improvement bond and Faithful Performance Bond, and adopt the Resolution as submitted. D-4 CHAMBER OF COMMERCE EXPENDITURE REPORT FOR NOVEMBER, 1982 13 Mr. Baxter recomm ed that Council approvEehe Chamber of Commerce Expenditure Rport as approved by the Finance Director. D-5 RESOLUTION COMMENDING HOWARD MANKINS FOR HIS SERVICE TO THE COUNTY OF SAN LUIS OBISPO Mr. Baxter recommended that Council adopt the Resolution as submitted. D-6 RESOLUTION COMMENDING STEVE MACELVAINE FOR HIS SERVICE TO THE COUNTY OF SAN LUIS OBISPO Mr. Baxter recommended that Council adopt the Resolution as submitted. D-7 RESOLUTION TO ACCOMPANY APPLICATION TO THE U.S. BOARD OF GEOGRAPHIC NAMES FOR OFFICIAL DESIGNATION OF "UNNAMED CREEK" AS "ALVA PAUL CREEK" Mr. Baxter recommended that Council approve the Resolution requesting "Unnamed Creek" be designated "Alva Paul Creek". D-8 CORRESPONDENCE FROM EARL "JIM" RODGERS REGARDING AN APPEAL FOR REHEARING OF THE WATER LOAN APPLICATION Mr. Baxter recommended that Council receive and file the above correspondence. D-9 APPROVAL FOR SENIOR CITIZENS TO UTILIZE CITY PROPERTY FOR STORAGE OF RECYCLEABLE MATERIALS Mr. Baxter recommended that Council approve usage of "Willard's Barn" for storage of recycleable materials by the Senior Citizens. D-10 CORRESPONDENCE FROM MORRO BAY AQUARIUM RE: FLOATING DOCK PROJECT Mr. Baxter recommended that the letter be received for file. D-11 APPROVAL OF SUPPORT FOR CALIFORNIA CONSERVATION CORPS' PLANTING OF ICE PLANT ALONG OVERPASS Mr. Baxter recommended that Council authorize acceptance of the ice plant at the designated areas. D-12 NOTICE OF DISAPPROVAL TO UNAUTHORIZED SUBLEASE FROM GRAHAMS LANDING Mr. Baxter recommended that Council place the Lessors on Lease Site 93, 94, and 95, 93W, 94W and 95W on notice that their agreement with Mr.Van Beurden is an unauthorized agreement and requires Council approval or their lease will be voided. 14 D-13 APPROVAL OF IN M OPERATING HOURS FOR HI E'S LANDING Mr. Baxter recommended that Council approve of interim operating hours for Hittle's Landing pursuant to Mr. Wallace's recommendations. Mayor Shelton stated that his wished to have item D-12 (Notice of Unauthorized Sublease for Grahams Landing to Blue Heron Restaurant) removed from the Consent Calendar for discussion. Councilmember Lemons also requested that items D-8, D-9, and D-10 be removed from the Consent Calendar for discussion. MOTION: Councilmember Lemons moved to approve the Consent Calendar, excepting items D-8, D-9, D-10, and D-12, as submitted. The motion was seconded by Councilmember Risley and carried by the following roll call vote: AYES: Lemons, Risley, Zeuschner, Shelton NOES: None ABSENT: Anderson D-12 - Discussion - Notice of Disapproval to Unauthorized Sublease from Graham's Landing to Blue Heron Restaurant Mayor Shelton stated that on the applicants behalf, he would like to direct staff to set a Public Hearing for the next meeting to allow them time to present information in their behalf. With Council concurrance, staff set the Public Hearing date for January 10, 1983. D-8 - Discussion - Correspondence from Earl "Jim" Rodgers Councilmember Lemons asked that Mr. Rodgers be allowed to address the Council regarding his letter requesting a rehearing of the water loan application. Mr. Rodgers stated that he was offering a plea for reconsideration of the water loan, due to potential hazards of contracting infections from the water system. He asked Council to contact the DWR and instruct them to disregard the recent letter of refusal, and to extend the expiration date to April, 1983. Mayor Shelton confirmed with Mr. Baxter that the letter had been sent to the Department of Water Resources upon Council direction, and that it had been clear that this matter had been decided upon. Mr. Baxter informed the Council that to hold a Special Election to allow the public to vote on this matter would cost approximately $8,000 to $10,000. 15 Councilmember Zeusch er stated that it was his u erstanding that State Bonds were no nger being sold, and thatWnding for this loan was no longer available. Mr. Bressan confirmed this fact. There was additional discusison regarding the water loan offer. MOTION: Councilmember Lemons moved that Council approve Mr. Rodgers request, and transmit letter to the DWR asking for an extension of the expiration date to April, 1983. The motion died for lack of a second. D-9 - Discussion - Approval for Senior Citizens to Utilize City Property for Storage of Recycleable Materials Councilmember Lemons asked what types of materials the Senior Citizens would be storing, and if they were fire hazards. Mr. Baxter stated that the materials would be mainly aluminum cans, but that the approval could be granted subject to the Fire Chief's approval. MOTION: Councilmember Zeuschner moved that Council approve the request of the Senior Citizens to use "Willard's Barn" for storage of recycleable materials, suject to the Fire Chiefs approval. The motion was seconded by Councilmember Risley and carried unanimously. (4-H-1) D-10 - Discussion - Correspondence from Morro Bay Aquarium Councilmember Lemons stated his concern over the floating dock project, and the hazards it might pose to the Morro Bay Aquarium, by boats leaking gasoline or oil. Mr. Bressan explained that the docks would be for temporary tie up only, and no overnight tie up, and were mainly to allow access to the water by pedestrians, and to the Embarcadero by small boat users. A discussion followed concerning possible enforcement methods. Councilmember Zeuschner asked if the dock at that location could be limited to non -motorized boats only. Mr. Bressan stated this might be a possibility. There was additional discussion, and the correspondence was received for file. E. INDIVIDUAL DETERMINATION AND/OR ACTION 16 E-1 City Council • • Mayor Shelton requested that Council direct staff to draft a Resolution emphasizing the Council's position against offshore oil drilling and forward it to the State House Appropriations Committee. MOTION: Mayor Shelton moved that Council direct staff to draft a Resolution emphasizing the City's position against offshore oil drilling and forward it to the House Apropriations Committee. The motion was seconded by Councilmember Risley and carried unanimously. (4-0-1) E-3 City Administrator Mr. Baxter announced the resignation of Public Works Director John Bressan, and expressed the City's regret in losing such an excellent Department Head. MOTION: Councilmember Zeuschner moved to adjourn to close session at 12:45 p.m. The motion was seconded by Councilmember Lemons, and carried unanimously. (4-0-1) The meeting reconvened to Open Session at 12:55 a.m. MOTION: Mayor Shelton moved to approve a new a two year agreement for the City Administrator. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Shelton, Zeuschner, Lemons, Risley NOES: None ABSENT: Anderson MOTION: Councilmember Lemons moved to adjourn to the Special Meeting of January 6, 1983, at 5:00 p.m. The motion was seconded by Councilmember Zeuschner and carried unanimously. (4-0-1) The meeting adjourned at 12:57 a.m. RESPECTFULLY SUBMITTED,, n ,, fG HANAN DEPUTY CITY CLERK 17 MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER OF, 1982 RECREATION HALL - 7:30 P.M. ROLL CALL PLEDGE OF ALLEGIANCE - Horace Strong INVOCATION - Rev. Donnie Williams, First Baptist Church A. PUBLIC HEARINGS, REPORTS & APPEARANCES A-1 Consideration of Policy for Sale of City Boat Moorings A-2 Consideration of an Ordinance to establish rent stabilization (control) in mobilehome parks within Morro Bay A-3 Consideration of revisions of Ordinance No. 54 (Morro Bay Municipal Code Section 2.24.030) regarding the Parks and Recreation Commission B. UNFINISHED BUSINESS B-1 Consideration of appointment to two (2) vacancies on the Planning Commission and two (2) vacancies on the Refuse Franchise Board B-2 Consideration of Zoning Ordinance Text Amendment relative to the inclusion of a new chapter to regulate the issuance of coastal development permits and setting forth appropriate procedures (2nd reading) B-3 Consideration of conversion from County Lease to City Lease for Parkhurst Gallery, Lease Site 68, 68W (Cont. from 11/22) B-4 Consideration of conversion from County Lease to City Lease for Robert Pyle Gallery, Lease Site 67, 67W (Cont. from 11/22) B-5 Consideration of conversion from County Lease to City Lease for M & M General Refrigeration, Lease Site 144, 144W (Cont. from 11/22) B-6 Consideration of granting of lease to Morro Bay Yacht Club for Mooring Zone Al-3 B-7 Further Consideration of Sign Ordinance Amendment C. NEW BUSINESS C-1 Request for "Safe -Crossing" at Hwy. 1 and Yerba Buena (Grace Melton & Faye McGonagill) C-2 Request by County of SLO for permit to drill a new water well C-3 Request for two hour parking limitation on the north side of Harbor Street, between Morro Bay Blvd. and Piney Way (Fred Schenk) C-4 Letter of request to transfer leasehold rights, title and interest in waterfront Lease Site 50 and 50W to different tenants C-5 Informational report regarding a recommendation by the Refuse Franchise Board that Council consider an amendment in the $3.60 mandatory refuse rate. C-6 Approval of Amendment No. 1, to Master Agreement for Construction Management Services between the City of Morro Bay and Brown and Caldwell/Heary for management of the construction of the Morro Bay/ Cayucos Outfall C-7 Master Fee Resolution Amendments - Community Development Department C-8 Discussion of cancellation of December 27, 1982 meeting D. CONSENT CALENDAR D-1 City Council minutes of adjourned meeting of 11/22 and regular meeting of 11/22/82 D-2 CPI Adjustments for farbor Rents 9 D-3 Acceptance of Improvements and Dedication offer by Jordan Miller, Inc., on Sequoia Street D-4 Chamber of Commerce Expenditure Report for November, 1982 D-5 Resolution commending Howard Mankins for his services to the County of San Luis Obispo D-6 Resolution commending Steve MacElvaine for his services to the County of San Luis Obispo D-7 Resolution to Accompany Application to U.S. Board of Geographic Names for Official Designation of "Unnamed Creek" as "Alva Paul Creek" D-8 Correspondence from Earl "Jim" Rodgers regarding an appeal for rehearing of water loan application D-9 Approval for Senior Citizens to utilize City property for storage of recycleable materials D-10 Correspondence from Morro Bay Aquarium re: floating dock project D-11 Approval of support for California Conservation Corps' planting of ice plant along overpass D-12 Notice of Disapproval to Unauthorized Sublease from Grahams Landing to Blue Heron Restaurant D-13 Approval of Interim operating hours for Hittles Landing E. INDIVIDUAL DETERMINATION AND/OR ACTION E-1 City Council E-2 City Attorney E-3 City Administrator MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER W 1982 RECREATION HALL - 7:30 P.M. CALL TO ORDER PLEDGE OF ALLEGIANCE: Horace Strong INVOCATION: Rev. Charles Erickson, St. Peter's Episcopal Church A. PUBLIC HEARINGS, REPORTS & APPEARANCES A-1 Continuation of Appeal to Planning Commission action regarding CUP 11-81, Tentative Tract Map 1077 (Fisher) by Alice Kolb. (Cont. from 11/8/82) A-2 Request for approval of a Resolution revising the City Slip Dockage Fee from a flat rate basis to a cost -per -foot basis. (Cont. from 11/8/82). A-3 Request for approval of a Resolution amending Section B-3 of Resolution 09-81 regarding the City's sublease policy of City boat slips. (Cont. from 11/8/82). A-4 Request for approval of proposed Resolution providing for Transient Vessel Dockage Deposits. (Cont. from 11/8/82). A-5 Consideration of a Zoning Ordinance Text Amendment relative to the inclusion of a new chapter to regulate the issuance of coastal develoment permits and setting forth appropriate procedures. (Com- bined with A-6). A-6 Consideration of Interim Urgency Zoning and Municipal Code Text amendments establishing City procedures for the issuance of coastal development permits. A-7 Potential consideration of Lease Transfers from November 22, 1982, 5:00 p.m. Meeting (if necessary). (Cont. from 11/8/82). B. UNFINISHED BUSINESS B-1 Continuation of report on Business Improvement Committee Project. (Cont. from 11/8/82). B-2 Pegess-regert-€e-£Meads-ef-eke-b4Ha (To be rescheduled). C. NEW BUSINESS C-1 Assessment district for the abatement of pine beetles. C-2 Appeal of Embarcadero Lease uses by Cabrillo Enterprises (Rose's Landing). C-3 Request for consideration of Rent Stabilization (control) in mobile home parks in Morro Bay (by J. T..Bouchillon). C-4 Regaes-b-6aee-A4e�ea-aad-Eaye-A4e6eaag4l�-€ems-Eeaae4l-eeaeide�aiea e€-Sa€e-eressiag-a-H4gkway-l-aad-Yerba-Btteaa. (Rescheduled for 12113/82). C-5 Consideration of Agreement between VRM and City of Morro Bay. D. CONSENT CALENDAR D-1 City Council minutes of regular meeting of November 8, 1982. D. CONSENT CALENDAR (CONT11,UED) D-2 City of Morro Bay Expenditure Report for October, 1982. D-3 Mooring Sale - Approval of Sale of Mooring #A-22. D-4 Request for Ratification of Refuse Variance. D-5 Notification of advertisement for (2) Planning Commission and (2) Refuse Board appointment vacancies. D-6 Request authorization for Chief Zerr to be appointed City representative to acquire Federal Surplus Property from the California State Agency for surplus property. D-7 Resolution proclaiming November 21 through November 27, 1982 as "Family Week". E. INDIVIDUAL DETERMINATION AND/OR ACTION E-1 City Council E-2 City Attorney E-3 City Administrator MORRO BAY CITY COUNCIL A C ENDANO. D_ I REGULAR MEETING - NOVEMBER 22, 1982 Date RECREATION HALL - 7:30 P.M. �� 1 ACt10 i Mayor Shelton called the meeting to order at 7:30 p.m. RnT,T, CATS. PRESENT: Eugene R. Shelton Rodger J. Anderson John Lemons Bruce Risley Bud Zeuschner STAFF: Paul Baxter Michael T. LeSage John Bressan Murrel Crump Dave Howell Gary Napoer Gere Sibbach Steve Wolter Bernie Zerr Sharon Lilley Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Director of Public Works Community Development Director Acting Chief of Police Assistant to City Administrator Finance Director Recreation Director Fire Chief Acting Deputy City Clerk Horace Strong led the Pledge of Allegiance and the Invocation was offered by Reverend Charles Erickson. Mayor Shelton stated that the City Council meeting was being dedicated to and in memory of Ray Teixeira, Sr., and his 30 years of service to the community as a Reserve Firefighter for the Morro Bay Fire Department. A. PUBLIC HEARINGS, REPORTS AND APPEARANCES A-1 CONTINUATION OF APPEAL TO PLANNING COMMISSION ACTION REGARDING Mr. Baxter stated that at the last regular meeting, Council requested that staff provide additional information regarding areas of concern associated with this application and appeal. Mr. Baxter stated that Mr. Crump has prepared such a report and will make the presentation to Council. Mr. Crump stated that the material being submitted to Council for consider- ation covers areas which include: noise, traffic, drainage, water retention, viewshed, and neighborhood change. Mr. Crump discussed these items and sited examples in each of the subject areas as he reviewed his report. Mr. Crump requested direction from the City Council regarding the appeal if Council desired to modify the proposal as submitted. Mayor Shelton then opened the meeting for Public Hearing. Councilmember Lemons stated he would prefer that the same people not provide testimony if they did so at the last meeting and that only new comments and information be items for discussion. MORRO BAY CITY COUNCIL Regular Meeting - November 22, 1982 Page Two Dick Fisher, applicant, stated that he would be available to answer any questions that the City Council might have regarding this proposed project. Mrs. June Hofstead stated that she wanted to make three specific points regarding this project: 1. That requiring an EIR is only a delay and discourage technique and it is a discretionary judgement which may not change any minds regarding the project, and wondered what good it would do. 2. It is a planned project in a planned place. 3. We have a need for housing according to the 1980 census and we need to provide housing for new people desiring to move to Morro Bay. Mrs. Hofstead asked that the leaders of the community have a vision toward the future. Steve Pierce stated that he agreed with the comments made by Mrs. Hofstead. Alice Kolb stated she would stand by her position that was presented at the last meeting and is still requesting that an EIR be completed on the proposed project. Mrs. Kolb stated that she feels that a third party analysis of the situation is needed. Ray Kaltenbach commented on the length of time it will take to construct the project. MOTION: Councilmember Lemons moved that the Public Hearing be closed. The motion was seconded by Councilmember Risley and carried unanimously. (5-0) Councilmember Risley stated that he believes no subdivision within the City has not been required to have an EIR. He also stated that EIR's have brought about improvements in the various proposed projects in the past, that detailed information is of importance to the total overall project and great care should be taken with such projects and all information should be reviewed. Councilmember Risley stated that he would recommend that a full EIR be completed. Councilmember Zeuschner then asked the length of time an EIR would take and the approximate cost. These questioned were referred to Murrel Crump. Mr. Crump stated that there are two types of EIR's: one is a full EIR and the other is an "issue focus" EIR. The amount of time involved depends on the number of items being considered. Councilmember Lemons stated that he did not see anything in the initial review that would require an EIR according to CEQA's criteria. CEQA requires that the project must indicate a significant adverse affect on the environment to require an EIR. Mr. Crump concurred. Councilmember Anderson stated that he did not feel that an EIR would satisfy Mrs. Kolb. MORRO BAY CITY COUNCIL Regular Meeting - NovembcW22, 1982 Page Three • Councilmember Zeuschner stated that an EIR would help resolve some of the questions, would build public confidence of the project, and there- fore, perhaps it is important to spend whatever money is necessary for an EIR so that the community would be supportive of the proposal. Councilmember Risley concurred with Councilmember Zeuschner's comments and stated that it is important to protect the people. Councilmember Lemons stated that thus far, no specific problems have been identified to support an EIR being completed and feels that they are discussing policy and not CEQA requirements. Councilmember Risley stated that a number of problems had been identified such as drainage, absorbtion rate, rain runoff, flooding on Main Street, etc. He said that an EIR may not solve all the problems but it will hopefully shed some light on the various problem areas. Councilmember Zeuschner stated that he wanted to see the project go forward but in a conservative manner and felt that an EIR was justified. Mayor Shelton stated that this is a large project being proposed and agreed that community acceptance was in question and that CEQA tries to attend to these kinds of concerns. Mayor Shelton felt that an EIR provides an assessment and at that point the City can look at the total impact on the community. Mayor Shelton stated he would support an EIR. MOTION: Councilmember Risley moved that the appeal by Alice Kolb be upheld and that an EIR be required with a focus on the items outlined in the Community Development Director's report. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Risley, Zeuschner, Shelton NOES: Lemons, Anderson ABSENT: None Mayor Shelton asked the City Attorney if there should be findings of fact. The City attorney concurred. The findings of fact are: 1) Public controversy; and 2) Community Development Director's report submitted on 11/22/82. A-2 REQUEST FOR APPROVAL OF A RESOLUTION REVISING THE CITY SLIP DOCKAGE Mr. Baxter stated that the Coastal Conservancy at their July 13th meeting indicated that further assistance for future City projects would not be likely unless fees were revamped to reflect a more current and equitable strucure (cost -per -foot basis). Mr. Baxter then referred this item to John Bressan for his staff report. Mr. Bressan indicated that such a change was drafted and submitted to the Habor Advisory Board, and after two separate hearings, concluded that the cost -per -foot fee structure would be equitable. The Board MORRO BAY CITY COUNCIL Regular Meeting - NOvembeW-2, 1982 Page Four first recommended that a $1.60 per foot rate would be agreeable. However, upon further review, changed this intial recommendation and reduced that amount to $1.40 per foot with a $65.00 per month minimum. Staff recommends that the Council accept the modified cost -per -foot structure with the minimum charge of $65.00 per month as recommended by the Harbor Advisory Board and adopt the proposed Resolution setting this rate structure. Mayor Shelton opened the Public Hearing. Cliff Smith, Chairman of the Harbor Advisory Board, urged that the City Council adopt the Resolution as presented. Ron Baker stated that he felt that it was too large an increase if the increase is also coupled with the 8% increase proposed for January 1, 1983. Mr. Bressan stated that he did several calculations on this increase and that this increase would not affect those boats 44.8 feet or under. A total of 26 boats will not experience any increase and only the larger boats will be affected. Fred Sears stated that he has attended the Harbor Advisory Board meetings and felt that the proposal is satisfactory and the rate change will work. MOTION: Councilmember Risley moved that the Public Hearing be closed. The motion was seconded by Councilmember Anderson and carried unanimously. (5-0) MOTION: Councilmember Risley moved that the Resolution be adopted as submitted. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: AYES: Risley, Lemons, Anderson, Zeuschner, Shelton NOES: None ABSENT: None A-3 REQUEST FOR APPROVAL OF A RESOLUTION AMENDING SECTION B-3 OF RESOLUTION 09-81 REGARDING THE CITY'S SUBLEASE POLICY OF CITY BOAT SLIPS. (Cont. from 11/8/82) Mr. Baxter stated that the Harbor Advisory Board had reconsidered their earlier position to change from a long term leasing policy to a day- to-day rental basis for City boat slips, but because of enforcement difficulties, they decided that the current policy should remain unchanged but that the Harbor employees increase their surveillance and enforcement of this policy. Therefore, no action was required by the City Council as no change was being recommended. The Mayor opened the Public Hearing. MOTION: Councilmember Zeuschner moved that the Public Hearing be closed. The motion was seconded by Councilmember Anderson and carried unanimously. (5-0) MOTION: Councilmember Zeuschner moved that the Harbor Advisory Board's position on maintaining City policy for subleasing procedures of the City boat slips be received and filed as submitted in their report. The motion was seconded by Councilmember Risley and carried unanimously. (5-0) MORRO BAY CITY COUNCIL Regular Meeting November 22, 1982 Page Five M PROVIDING FOR TRANSIENT Mr. Baxter reported that the Harbor Advisory Board had reconsidered their initial recommendation and is now proposing that only those vessels which have not paid dockage fees at least once previously would be required to pay a $20.00 deposit for docking at the City's T-Piers or a $40.00 deposit for dockage at City slips. Mr. Baxter stated that he could not uphold this new proposal as it would be difficult for City staff to enforce a deposit project based on previous payment. Therefore, Mr. Baxter recommended Council amend the Resolution which would provide for all transient vessels to submit deposits for the privilege of tying up at the City T-Piers and City slips regardless of previous payments. The Mayor opened the Public Hearing. Cliff Smith stated that a deposit is customary. MOTION: Councilmember Lemons moved that the Public Hearing be closed. The motion was seconded by Councilmember Zeuschner and carried unanimously. (5-0) MOTION: Councilmember Lemons moved that Paul Baxter's recommendation to amend the Resolution as submitted be approved. The motion was seconded by Councilmember Anderson and carried by the following roll call vote: AYES: Lemons, Anderson, Shelton NOES: Zeuschner, Risley ABSENT: None Councilmember Risley questioned Cliff Smith's position. Councilmember Anderson stated that everyone should carry their share and didn't feel it was right for someone to have to carry the share of those who "skip out". Fred Sears felt that collecting deposits leaves a bad taste. He felt that it would be better to issue a bill and that it is a matter of goodwill. Jim Funk stated that he would try to take care of the matter himself and could get a list from the other Harbor Districts indicating those who don't pay their bills. Councilmember Anderson asked how much income was being lost from no collections. Gere Sibbach stated that about $3,000 was lost over a period of one and a half years, which amounts to about 20% of what should have been collected. Jack Hansen stated that he is having a problem with the billing system as the computer is not being inputted when he pays his bills. Mayor Shelton asked Mr. Baxter to check into the situation. MORRO BAY CITY COUNCIL Regular Meeting - November 22, 1982 Page Six Councilmember Anderson requested comments from that he would recommend that only those people a deposit, but added that it will be difficult Council recessed at 8:53 p.m A-5 • Jim Funk. Mr. Funk stated who are skipping be charged to enforce. and reconvened at 9:05 p.m. A-6 CONSIDERATION OF INTERIM URGENCY ZONING AND MUNICIPAL CODE TEXT Mr. Baxter referred this item to Murrel Crump for his staff report. Mr. Crump stated the major differences in the proposed Ordinances. Mr. Crump stated that staff was recommending that Council move to read the Zoning Ordinance by title and number only and to approve the Ordinance for a first reading; and that Council find that an urgency exists with existing zoning and move to read by title and number only an Interim Urgency Zoning Ordinance and that such an urgency Ordinance take effect immediately. The Mayor opened the hearing to the public. Henry Miller stated that he was concerned about the zoning. He felt that "down zoning" is not appropriate for today and that only the rich will benefit from such a proposal. Mr. Miller stated that the General Plan needs to be reviewed and that rather than "down zoning" he feels that there should be an increase in housing. Many lots in Morro Bay cannot be developed and the people involved are being hurt. Councilmember Risley asked if any down zoning was proposed? Mr. Crump stated that land use densities have been reduced, but that the General Plan does not reflect this (number of units allowed per acre). Steve Pierce said that down zoning would hurt him because his house would be worth less and felt that all property owners should be notified of such a proposed changed. MOTION: Councilmember Zeuschner moved that the Public Hearing be closed. The motion was seconded by Councilmember Lemons and carried unanimously. (5-0) Councilmember Risley stated that he did not understand the material as presented. Mr. Crump responded that the City is moving toward an interim permitting process and closer to the LCP. Mr. Crump stated that the City needs to set up a review mechanism. This action would allow permit issuing authority. Councilmember Anderson questioned the outcome if Council took no action. MORRO BAY CITY COUNCIL Regular.Meeting - November 22, 1982 Page Seven LJ Mr. Crump responded that future applicants would have to go to Santa Barbara for their permits rather than going through Morro Bay. The City Attorney explained the requirements of the LUE and LCP. Mr. LeSage stated three major points regarding the Ordinance: 1) the Land Use Element of the Local Coastal Plan supercedes anything the City had in effect; 2) existing Ordinance would be brought into compliance with the LCP; and 3) the LUE must be brought into conformance. MOTION: Councilmember Lemons moved that the Zoning Ordinance Text Amendment be read by title and number only. The motion was seconded by Councilmember Risley and carried by the following roll call vote: AYES: Lemons, Risley, Zeuschner, Anderson, Shelton NOES: None ABSENT: None Mr. Baxter read the title and number to the proposed Ordinance. MOTION: Councilmember Lemons moved that the Ordinance be approved for the first reading. The motion was seconded by -.Council - member Zeuschner and was carried by the following roll call vote: AYES: Lemons, Zeuschner, Risley, Anderson, Shelton NOES: None ABSENT: None MOTION: Councilmember Zeuschner moved to read by title and number only the Interim Urgency Zoning Ordinance. The motion was seconded by Councilmember Risley and was carried by the following roll call vote: AYES: Zeuschner, Risley, Lemons, Anderson, Shelton NOES: None ABSENT: None Mr. Baxter read by title and number, the proposed Ordinance. MOTION: Councilmember Zeuschner moved to adopt the Ordinance as an urgency Ordinance. The motion was seconded by. Councilmember Risley and carried by the following roll call vote: No AYES: Zeuschner, Risley, Anderson, Lemons, Shelton NOES: None ABSENT: None FROM NOVEMBER 22. 1982 Councilmember Anderson stated that he would abstain from the proceedings. MORRO BAY CITY COUNCIL . • Regular Meeting - November 22, 1982 Page Eight Mr. Baxter presented a brief summary report of the 5:00 p.m, meeting. Councilmember Zeuschner asked Mr. Wallace about minimum rent estimates. Mr. Wallace responded that his calculations were from various sources. Councilmember Zeuschner asked if it would not be more beneficial to have annual reports from leaseholders updated on a quarterly basis and then submitted for review. Mr. Wallace concurred that it would be helpful. Gere Sibbach stated that 6-8 months ago, a reporting form was drafted and sent out and none had been returned to the City. Councilmember Risley stated that he would like to see a permanent system for handling Embarcadero leases. Councilmember Lemons felt that the leases would be approved in concept. MOTION: Councilmember Zeuschner moved that staff prepare lease contracts (3) to include the following changes and then bring these leases back for consideration at the next regular City Council meeting on December 13, 1982: I. Emcumbrances 2. Insurance requirements 3. Repair and rebuilding 4. Back rent due 5. Quarterly Reports 6. Delete gross income 7. Minimum rental 8. Further changes as proposed by Mr. Wallace The motion was seconded by Mayor Shelton and carried by the following roll call vote: AYES: Zeuschner, Shelton, Lemons, Risley NOES: None ABSENT: None ABSTAIN: Anderson (A-4) CONSIDERATION OF The Mayor opened the Public Hearing. There were no public comments. MOTION: Councilmember Lemons moved that the Public Hearing be closed. The motion was seconded by Councilmember Zeuschner and was carried by the following roll call vote: AYES: Lemons, Zeuschner, Anderson, Risley, Shelton NOES: None ABSENT: None MORRO BAY CITY COUNCIL Regular Meeting - Novembert, 1982 Page Nine MOTION: Councilmember Risley moved to adopt in concept the lease as presented and to include provisions as stated and to required that the Morro Bay Yacht Club file their fee schedule with the City. The motion was seconded by Councilmember Zeuschner and was carried by the following roll call vote: AYES: Risley, Zeuschner, Anderson, Lemons, Shelton NOES: None ABSENT: None (A-5) CONSIDERATION OF RE- rom b:00 p.m. me Mr. Wallace stated that currently this lease site is for single family residences. It has not been.used for this purpose for the past 27 years and it could be returned for a commercial lease site because of this non-use. Mr. Wallace stated that three individuals have expressed an interest in this proposed lease. Mr. LeSage expressed a concern regarding a linkage to Tidelands Park and that it must compliment the park. The Mayor opened the Public Hearing. Cliff Smith asked if the water is part of the water considered for barge usage. Mr. Wallace stated it was. Gene Goughty stated that it was up to the Council what they wanted to go on there. MOTION: Councilmember Risley moved that the Public Hearing be closed. The motion was seconded by Councilmember Zeuschner and was carried by the following roll call vote: AYES: Risley, Zeuschner, Lemons, Anderson, Shelton NOES: None ABSENT: None MOTION: Councilmember Lemons moved that staff refer this item to the Planning Commission, Recreation Commission and other indivi- duals for their review and that the lease be approved in concept. The motion was seconded by Councilmember Zeuschner and was carried by the following roll call vote: AYES: Lemons, Zeuschner, Anderson, Risley, Shelton NOES: None ABSENT: None B. UNFINISHED BUSINESS B-1 CONTINUATION OF REPORT ON BUSINESS IMPROVEMENT COMMITTEE PROJECT Mr. Baxter stated that two sections in the City's Sign Ordinance would MORRO BAY CITY COUNCIL • Regular Meeting - November 12, 1982 Page Ten have to be amended in order for the proposed Business Improvement Committee's project to proceed. Mr. Crump could draft amendment changes and present them to the Planning Commission for their input and then would recommend setting A Public Hearing for December 13th regular City Council meeting. MOTION: Councilmember Zeuschner moved that staff draft the language to allow for the proposed sign ordinance amendments and also not to weaken the current City Sign Ordinance. The motion was seconded by Councilmember Risley and was carried by the following roll call vote: AYES: Zeuschner, Risley, Anderson, Lemons, Shelton NOES: None ABSENT: None 13-2 PROGRESS REPORT FROM FRIENDS OF THE LIBRARY This item was pulled at the request of the Friends of the Library and is being rescheduled for a future meeting. C. NEW BUSINESS C-1 ASSESSMENT DISTRICT FOR THE ABATEMENT OF PINE BEETLES Mr. Baxter referred this item to the Director of Public Works for his staff report. Mr. Bressan stated that there are several considerations when contemplating the problem of pine beetles in City trees: 1. We can spray all trees in the affected areas. 2. We can spray only specific sections. 3. We can let the infestation run its course and hope it runs its course before all the trees die. 4. We could not treat any of the trees and they would probably die, especially the older trees as they are more suceptible to disease. Councilmember Lemons asked the City Attorney if an Assessment District were formed, could the City include the State? Mr. LeSage stated that he was unsure and would check into the matter. Councilmember Lemons asked if there were other areas of the State being affected. Mr. Bressan stated that the State Parks have infestation and he has contacted Park officials and they have indicated they would go along with the City and what course of action it takes. However, if spraying were to take place, they would need approval from Sacramento. Councilmember Zeuschner asked if the City could obtain any assistance from the State Department of Agriculture. Mr. Baxter stated that he would have staff check into this possibility (i.e. disaster relief). MORRO BAY CITY COUNCIL • Regular Meeting - November 22, 1982 Page Eleven MOTION: Councilmember Risley moved to set a Public Hearing at such time as information is available with the idea to establish an Assessment District for the abatement process. The motion was seconded by Councilmember Zeuschner and was carried by the following roll call vote: AYES: Risley, Zeuschner, Anderson, Lemons, Shelton NOES: None ABSENT: None C-2 APPEAL OF EMBARCADERO LEASE USES BV CABRILLO ENTERPRISES (ROSE'S LANDING Mr. Baxter presented his staff report and indicated that based upon appraisals completed by the County Assessor on certain Embarcadero Lease Sites, the owners of Rose's Landing were protesting a portion of that appraisal in that they felt Council had precluded the full enjoyment of their use of the parking lot (at an earlier date) and now therefore, appraisal on that parcel was in excess of its true value., Mr. Baxter stated that the could not substantiate such restrictions. Councilmember Anderson stated that he would abstain from dicussion and vote. Pete Gardner, owner of Rose's Landing, stated that he had discussed this problem with Mr. Baxter and Mr. Wallace and his feelings regarding non - producing revenue and requests a reduction in parking lot appraisal. Mr. Gardner stated that approximately 50% of the people using the parking lot do not eat at Rose's. Mr. Garner stated that he would like to again meet with Paul Baxter, and Mr. Wallace to discuss a square footage price and if he would re -build at some future time, then he would of course want to readjust at that time. Mr. LeSage stated that a lease amendment would be appropriate to settle the parking lot question. A general discussion followed by the Council regarding uses of the parking lot. Councilmember Risley questioned if there were any subleases on the lease site. Mr. Gardner stated there were no subleases. Mr. Gardner also noted that he does not want to bring this item before the County Assessor because he has already discussed the situation with him and he has indicated he doesn't want to become involved. Mr. Gardner stated that if he wishes to someday add on to his existing building, that he be permitted to do so or he would gladly give Lease Site 82 and 83 back to the City to maintain. He said he simply wanted an adjustment in his current rental for the lease sites in question. Councilmember Anderson stated that we have to treat all of the waterfront leaseholders equally and if we adjust one rental, then others should have the same opportunity. Councilmember Anderson also stated that the City should stick to the County Assessor for their assessment as they handled all of the appraisals on the waterfront lease sites. MORRO BAY CITY COUNCIL 0 Regular Meeting - November 22, 1982 Page Twelve Mr. Baxter stated that the City has no say over the their criteria for all of the waterfront lease sites "highest and best use" of the property. The County one who has the authority to re -assess a lease site County Lease agreements. • County Assessor as was based on the Assessor is the only according to the Councilmember Risley asked Mr. Gardner is he wished to convert his lease sites from County to City leases. Mr. Gardner responded "no". MOTION: Councilmember Risley moved to go on to the next other of business. The motion died for lack of a second. Councilmember Zeuschner pointed out to Mr. Gardner that he fees that the restaurant is more valuable being located next to a parking lot rather than to another building where no parking is available because of the parking requirements. MOTION: Councilmember Zeuschner moved that Council move to the next item on the agenda. The motion was seconded by Councilmember Risley and carried unanimously. (5-0) C-3 REQUEST FOR CONSIDERATION OF RENT STABILIZATION (CONTROL) IN MOBILE HOME PARKS IN MORRO BAY (By J.T. Bouchillon) Mr. Baxter presented his staff report and indicated to Council that an Ordinance recently adopted by the City of Pismo Beach which provides for such rent stabilization is included in the Council's packet for their information. Mr. Baxter stated that this subject matter is one of policy determination, and if Council desires such an Ordinance, then staff should be directed to draft a similar ordinance and then hold a Public Hearing for testimony. Jim Bouchillon stated that his rent is greater than his income. Mr. Bouchillon resides in the Blue Heron Terrace Mobile Home Park (previously LeRoy Jones). Craig Amspoker, member of the Mobile Home Owner's Association, stated that 61 cities have passed similar ordinances and 4 counties have also adopted such ordinances. He stated that he was asking the Council to protect elderly citizens and consider an urgency ordinance. Alexander Blake presented a summary of the past rental increases. He stated that over a four year period, there had been an increases of 88.9% in space rental. He requested that Council consider an emergency interim ordinance placing a freeze on rental increases. Councilmember Risley stated that he is fearful of putting off this item and feels that the Council should take action by adopting an emergency ordinance and set the item for a public hearing. Mr. Bud Moffitt, President of the Scenic Coast Board of Realtors, stated that he supports the rent stabilization proposal. MORRO BAY CITY COUNCIL Regular Meeting - November*, 1982 Page Thirteen 1 J MOTION: Councilmember Zeuschner moved to draft an Ordinance to provide for mobile home rent stabilization and also add a section that would allow owners to pass along mandated/direct costs (exempted from maximum) and that this be brought back on December 13, 1982 for a Public Hearing. The motion was seconded by Councilmember Risley and carried by the following roll call vote: AYES: Zeuschner, Risley, Lemons, Shelton NOES: Anderson ABSENT: None Dick Fisher stated that he feels a need to distinguish between RV's and mobile homes and that a mobile home does not in fact include RV's. Hugo Hemph opposed such an Ordinance and recommended that Council check with other parks. Councilmember Anderson stated that he would not be present at the December 13th City Council meeting and wanted to state -his feelings regarding this issue. He felt there were real discrepancies and did not want to see anyone punished. C-4 REQUEST BY MELTON AND FAYE MCGONAGILL FOR COUNCIL CONSIDERATION AT HIGHWAY 1 AND YERBA BUENA (Rescheduled for 12/13/82) Mr. Baxter stated that this item had been pulled at the request of the applicants and is being rescheduled for the next regular meeting on December 13, 1982. C-5 CONSIDERATION OF AGREEMENT BETWEEN VRM AND CITY OF MORRO BAY Mr. Baxter stated that a draft development agreement had been prepared by VRM and had been submitted for review and consideration. It is being requested that Council provide general/conceptual responses regarding the proposed exchange prior to the initiation of negotiations. Ray Gallo presented his report for VRM. He stated that the proposal had been distribution to everyone and that 3 wells have been tested. They would give water to residential lots on the beach tract and the City acreage for impound basins and in return 100 ft. would be made available for Morro Dunes project. M'May Diffley wanted to know when the last time 200 acre feet was used for agricultural purposes was? Mr. Gallo stated that the water allocation to residential users would allow approximately 300 residences water and would free up lots for develop- ment; everyone would benefit. Mr. Gallo went on to say that the proposal is very timely and if the City wished to have the wells relocated, that VRM would be happy to work it out. MORRO BAY CITY COUNCIL Regular Meeting - November 2, 1982 Page Fourteen 11 Bob Lane stated that he would like to present some questions regarding water rights transferability. Mr. Lane referred to minutes from the Plater Advisory Board. He stated that there had been problems in the past with over pumping by other agricultural users. Riparian water rights cannot be transported as it is forbidden by law. Grace Melton informed the Council that Mr. Lane was speaking as an individual and did not represent the Water Advisory Board. Councilmember Risley stated that it is important for the City to maintain its independence. Mayor Shelton stated that this is a budget issue and not a safety issue. He auestioned how we would acquire new water sources. MOTION: Councilmember Zeuschner moved to receive material as submitted by VRM and to direct staff to coordinate with the Water Management Plan and implementation schedule, and also consider Bob Lane':s report (and water rights questions) and the relationship between the City and private developer and then to report back to Council. The motion was seconded by Councilmember Risley and was carried by the following roll call vote: AYES: Zeuschner, Risley, Anderson, Lemons, Shelton NOES: None ABSENT: None D. CONSENT CALENDAR D-1 CITY COUNCIL MINUTES OF NOVEMBER 8, 1982 REGULAR MEETING Mr. Baxter recommended that the Council approve the minutes of the November 8, 1982, City Council minutes as submitted. D-2 CITY OF MORRO BAY EXPENDITURE REPORT FOR OCTOBER, 1982 Mr. Baxter recommended that the Expenditure Report for October be approved as submitted by the Finance Director. D-3 MOORING SALE — APPROVAL OF SALE OF MOORING MA-22 Mr. Baxter recommended that Council approve the sale of Mooring A-22 from Grumbles to Doughty. The Harbor Advisory Board will provide Council with their recommendations regarding mooring transfer policies for the meeting of December 13, 1982. D-4 REQUEST FOR RATIFICATION OF REFUSE VARIANCE Mr. Baxter stated that this is a variance from curb service which must be approved by Council. Mr. Baxter recommended that Council ratify the hardship refuse variances requested by Mr. Hoeschel and Mrs. Baker. MORRO BAY CITY COUNCIL Regular Meeting - November 22, 1982 Page Fifteen D-5 F This matter is brought to Council for information only and requires no action. Mr. Baxter recommended that Council approve the Resolution from the State of California authorizing Chief Zerr to be the City designee for the Federal Surplus. property and authorize the Mayor and/or Chief Zerr to sign on behalf of the City. D-7 RESOLUTION PROCLAIMING NOVEMBER 21 THROUGH 27, 1982 AS "FAMILY WEEK" Mayor Shelton submitted the Resolution requesting Council's proclamation of "Family Week". MOTION: Councilmember Lemons moved that the Consent Calendar be approved as submitted. The motion was seconded by Councilmember Zeuschner and was carried by the following roll call bote: AYES: Lemons, Zeuschner, Anderson, Risley, Shelton NOES: None ABSENT: None E. INDIVIDUAL DETERMINATION AND/OR ACTION E-1 Citv Council Councilmember Lemons requested that Councilmember Anderson's absence from the 5:00 p.m. meeting on November 22, 1982 be excused. There was concurrance by Council. MOTION: Councilmember Lemons moved that Council reconsider action from the October 25, 1982, meeting regarding the water loan offer by the Department of Water Resources for water storage and delivery systems. The motion was seconded by Councilmember Anderson. Councilmember Risley stated that action had already been taken and this item should be put to a vote of the people so,that a united solution could be reached. Councilmember Zeuschner stated that Councilmember Lemons' motion was out of order in accordance with Robert's Rules of Order. Mayor Shelton stated that this was more appropriately a budget issue. A discussion followed regarding agenda scheduling policy of agenda items. It was the concensus of the Council to allow. any,Councilmember to place an item on the agenda. MORRO BAY CfTY COUNCIL Regular Meeting - November �, 1982 Page Sixteen Councilmember Zeuschner suggested that perhaps at the beginning of each Council meeting an announcement be made that last minute items will be discussed (state titles) under Individual Determination. The Council concurred. E-2 City Attorney - None E-3 City Administrator Mr. Baxter requested that the meeting be adjourned to Closed Session. MOTION: Councilmember Zeuschner moved that the meeting be adjourned to Closed Session, as requested by Mr. Baxter. The motion was seconded by Councilmember Lemons and carried unanimously. (5-0) The meeting adjourned to Closed Session at 12:33 a.m. and reconvened to Open Session at 12:56 a.m. MOTION: Councilmember Anderson moved that Councilmember Lemons be designated as the City's representative on the Morro Bay - Cayucos Executive Committee. The motion was seconded by Councilmember Zeuschner and carried unanimously. (5-0) MOTION: Councilmember Zeuschner moved to adjourn the meeting. The motion was seconded by Mayor Shelton and carried unanimously. (5-0). The meeting was adjourned at 12:56 a.m. to December 13th regular meeting. RESPECTFULLY SUBMITTED, SIIARON LIILLEY6/ ACTING DEPUTY CITY CLERK MORRO BAY CITY COUNCIL P."-'E DA iN0. D - l . ADJOURNED MEETING - NOVEMBER 22, 1982 �f��'3 RECREATION HALL - 5:00 P.M. daze Acfion Mayor Shelton called the meeting to order at 5:00 p.m. ROLL CALL PRESENT: Eugene R. Shelton John Lemons Bruce Risley Bud Zeuschner ABSENT: Rodger J. Anderson STAFF: Paul Baxter Mike LeSage John Bressan Gere Sibbach Jack Wallace Mayor Councilmember Councilmember Councilmember Councilmember (Excused) City Administrator City Attorney Director of Public Works Finance Director Consultant Mr. Baxter provided a brief review of the first three items on the agenda concerning lease conversion from County to,City. Mr. Jack Wallace, property management consultant from California West, Inc., presented the staff report to. Council, and outlined various meetings he has held with the leaseholders involved in the proposed conversions. Mr. Wallace then detailed each of the proposed leases including any language changes. Scheduled A was discussed and Mr. Wallace stated that a clarifica- tion should be made regarding fast food establishments vs. restaurants. Regarding the proposed conversion for Lease Site 68, 68W, Gere Sibbach felt that the same percentage of rent should be required for all art work, regardless of whether it is sold on consignment or not. Mr. Wallace reviewed the proposed conversion for Lease Sites 67, 67W, and noted details for Councils information. Mr. Wallace reported that the proposed lease. for Site 144, 144W included requirements that the lessee bond for future repairs. Mr. Wallace then summarized the staff report for item number 4, the Morro Bay Yacht Club Mooring renewals. Mr. LeSage commented on past problems encountered by the City regarding the above leases, and suggested certain revisions in the language of the agreements regarding insurance. Mr. Howard Gaines provided Council with a handout. Mr. Gaines then questioned the backrents due for these leases and stated his objection to items 1 through 3 on the agenda, regarding conversion to City leases. Mr. Gaines also felt that leasehold improvements should belong to the City in the event of the proposed conversion, and that maintenance provisions should be strengthened. Mr. Gaines objected to the lower minimum rentals, and felt that the old County levels should be used. Mr. Gaines felt that there were discrepancies in the report as presented by Mr. Wallace and raised several questions regarding the Yacht Club. Jim Hartzell had questions regarding the lease site and water usage. MORRO BAY CITY COUNCIL * • ADJOURNED MEETING - 11/22/82 PAGE TWO Deanna Davis commented on the time extensions established by Council, and spoke regarding the improvements and changes she would like to make on the lease site. Ms. Davis felt that Mr. Gaines' comments were not accurate. Councilmember Risley asked Ms. Davis why she favored the City lease over the County lease. Ms. Davis stated that she felt the City lease was fairer, as it was based on business activity. Mr. LeSage commented on the percentage lease policy and felt that conversion was the best way to go. MOTION: Councilmember Risley moved to close the Public Hearing for items 1, 2 and 3. Councilmember Lemons seconded the motion and it was carried unanimously. (4-0-1) Mr. LeSage recommended that any back rent be due before the leases are signed. Councilmember Risley felt that a dialogue regarding the leases and lease policies should be allowed, and was not sure that this was the best direction to follow. Councilmember Risley had questions regarding the minimum rental figures, and requested a report on these items. Councilmember Risley noted that the lease should be balanced and fair to all, and also felt that no new lease should be allowed until all back rent is paid. Councilmember Zeuschner felt that the changes to the leases was a move in the right direction. Councilmember Zeuschner responded to several concerns of Councilmember Risley, and noted that the City did not want to drive out business along the Embarcadero, and agreed that language should be included regarding encumbrances, insurance, repairs, backrents due, records/reporting and open books to that there will be no trouble with the leases. Mayor Shelton asked the current procedures for determining the income of the lease site. Mr. Sibbach stated that an annual report of gross reciepts is required, and that annual audits had begun this year, with the option for continuing the audits if Council wishes. Mr. LeSage asked how Council wanted to set the minimum rents if not as proposed. Mr. Wallace stated that there was no clear way to define minimum rents and that the approach using local comparables, such as site, improvements and other factors, provided the best estimate. Mr. LeSage stated that another approach could be to use a percentage of the business activity. MORRO BAY CITY COUNCIL ADJOURNED MEETING - 11/22 82 PAGE THREE Mayor Shelton asked what action Council wished to take at this time. MOTION: Councilmember Lemons moved that the meeting be continued to item A-7 of the regular agenda at 7.:30 p.m. The motion was seconded by Councilmember Zeuschner, and carried unanimously. (4-0-1) The meeting was adjourned at 6:38 p.m., to the regular meeting of 11/22/82, 7:30 p.m. RESPECTFULLY SUBMITTED PAUL BAXTER CITY CLERK MORRO BAY CITY COUNCIL 40 0 REGULAR MEETING - NOVEMBER 8, 1982 RECREATION HALL - 7:30 P.M. CALL TO ORDER PLEDGE OF ALLEGIANCE: Horace Strong INVOCATION: Rev. Jim Kennemur, First Christian Church .. .. .. .. .. .. .. .. ... .. .. .. . A. PUBLIC HEARINGS, REPORTS & APPEARANCES A-1 Continuation of Consideration -of -Proposed Ordinance and Agreement with Sonic Cable TV (Continued from 10/25/82) A-2 Appeal from the decision of the Planning Commission regarding CUP 11-81, Tentative Tract Map 1077 (Fisher) by Alice Kolb A-3 Proposed Sewer Rate Revisions (Continued from 10/11/82) B. UNFINISHED BUSINESS B-1 Consideration of application for Harbor Advisory Board Alternate Vacancy (Continued from 10/25) B-2 Request by Andy Zatko to place lights at Anchor Memorial (Cont. from 10/25) C. NEW BUSINESS C-1 Bingo License Fee Waiver for World War I Veterans C-2 Request for Consideration of removal of Ordinance No. 212 re: arcades, by Schroder and Pierce C-3 Report from Business Improvement Committee regarding City benches and City directories C-4 Request by Morro Bay Marina to obtain a waiver to their City Use Permit for selling fish from their slips and moorings. C-5 Approval of a Resolution Revising the City Slip Dockage Fee from a flat rate basis to a cost -per -foot basis C-6 Approval of a Resolution Amending Section B-3 of Resolution 9-81 regarding the City's sublease policy on City boat slips C-7 Approval of Proposed Resolution Providing for Transient Vessel Dockage Deposit C-8 Consideration of conversion from County Lease to City Lease for Parkhurst Gallery, Lease. Sites 68 and 68W C-9 Consideration of conversion from County Lease to City Lease for Robert Pyle Gallery, Lease Sites 67 and 67W C-10 Consideration of conversion from County Lease to City Lease for M & M General Refrigeration, Lease Sites 144_and 144W C-11 Consideration of granting of lease to Morro Bay Yacht Club for Mooring Zone Al-3 C-12 Consideration of re-establishment of south portion of Lease Site 50 for commercial use C-13 Acceptance of Grant Offer from State of California for WWTP Construction' C-14 Approval of Interim Construction Management Services. D. CONSENT CALENDAR D-1 City Council minutes of Special Meeting of October 22, 1982; October 24, 1982; and regular meeting of October 25, 1982 0 D. CONSENT CALENDAR (CONTINUED) D-2 Chamber of Commerce Expenditure Report for October, 1982 D-3 Approval of Lease Site Agreement Amendment for Robert Gray, (McGurn's Motel) D-4 Resolution recinding Resolution No. 61-82 D-5 Overhead Rate Adjustment for Brown and Caldwell D-6 Award of Bid No. PW-82-312 for the purchase of a new or used chipper unit E. INDIVIDUAL DETERMINATION AND/OR ACTION E-1 City Council E-2 City Attorney E-3 City Administrator ISIENDANO. �JC MORRO BAY CITY COUNCIL Dal,2Lh& Action REGULAR MEETING - NOVEMBER 8, 1982 RECREATION HALL - 7:30 P.M. Mayor Shelton called the meeting to order at 7:30 p.m. ROLL CALL PRESENT: Eugene-R. Shelton Rodger J. Anderson John Lemons Bruce Risley Bud Zeuschner STAFF: Paul Baxter Michael T. LeSage John Bressan Murrel Crump Dave Howell. Gary Napper Gere Sibbach Steve Wolter Bernie Zerr Peggy Buchanan Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Director of Public Works Community Development Director Acting Police Chief Assistant to City Administrator Finance Director Recreation Director Fire Chief Deputy City Clerk Horace Strong led the Pledge of Allegiance and the Invocation was offered by Reverend Jim Kennemur. Mayor Shelton then introducted Steve Wolter, the new Recreation Director. A. PUBLIC HEARINGS, REPORTS & APPEARANCES A-1 CONTINUATION OF CONSIDERATION OF PROPOSED ORD WITH Mr. Baxter stated that this was a continued Public Hearing, to allow the City Attorney and the City Administrator time to review the recent information received from the City of Santa Barbara. Mr. Baxter stated that this review was complete, and it was.felt that portions of this Agreement should be incorporated into the City's agreement with Sonic. Mr. Baxter reviewed several specific areas. Mr. Baxter recommended that after receipt of public testimony, that Council continue the matter, to allow time for meetings with representatives of Sonic to discuss the recent material. Bill Hargan, Sonic representative, stated that Sonic was frustrated in its attempt to reach an agreement with the City, and reviewed the history of previous negotiations. Mr. Hargan noted that Sonic would plan on upgrading the system and would guarantee the same number of programs available in other areas, if the proposed agreement were accepted. Mayor Shelton then opened the Public Hearing. Mr. Don Howard spoke in opposition to the rate increase as proposed by Sonic, and objected specifically to the increase for mobile home parks and apartments. Mr. Howard also was opposed to the billing procedures, which billed one month in advance. MORRO BAY CITY COUNCIL Regular Meeting - Novembe0 8, 1982 • Page Two Mr. Ray Foster protested the rate increased and posed several questions regarding the franchise, rates, and possible competing services, to the Council. Mr. Paul Stanley spoke in opposition to the rate.increase and the agreement extension, and complained about Sonic's poor service. Mr..Hemp was also opposed to the rate increase and concurred that Sonic's service was poor.. Mr. Hemp also felt that he should not have to pay for more than one service to his trailer park, as he was responsible for the maintenance of the equipment within the park. Mr. Chuck Reasor stated that he was against the renewal of the franchise, and read correspondence from the F.C.C. regarding a notice of apparent fine and liability for faulty equipment on Sonic's part. Mr. Reasor explained that_Sonic's system is "leaking" and causing the ham radio operators to interfere with signals. Mr. Reasor stated that when cable companies operate with the "ham band", their systems must be sealed so that ham operators signals will not cause interferance. Mary Phillips was disturbed by interference from Sonic and felt that something should be done for non -subscribers. Jane VonKeogh objected to the extension and stated she has had a continuing problem with Sonic. Mr. Howard felt that the Cable TV company did not own the materials past the wire and drop off, and that he was responsible for maintenance of other equipment at his own cost. Mr. Howard objected to the rate increase because of this. Sally Cuts stated that she would like to see service to all wires and objected to the rate increase. MOTION: Councilmember Risley moved that the Public Hearing be closed_. The motion was seconded by.Councilmember Zeuschner and carried unanimously. (5-0) Councilmember Zeuschner noted that according to Sonic, this matter had been continuing for over a year now. Mr. Baxter stated that a similar document had been brought before Council a year ago and turned down because of a disagreement over the length of the proposed franchise (Sonic had requested 15 years). Councilmember Zeuschner asked if the portions of the Santa Barbara Ordinance to be incorporated in the Morro Bay Ordinance were significant. Mr. Baxter stated that the language contained in the Santa Barbara Ordinance was substantive and clarifying and would make the document stand on its own merit. Councilmember Zeuschner clarified that the agreement with Sonic would be non-exclusive. Mr. Baxter concurred. MORRO BAY CITY COUNCIL Regular Meeting - Novembe 8, 1982 Page Three • Councilmember Zeuschner questioned whether an additional rate increase would be necessary if services were expanded. Mr. Baxter stated that the rates apply to basic services only. Councilmember Risley stated that he felt the rate increases were rather disturbing, and felt staff should make comparisons with other cities. Councilmember Risley noted that the current franchise does not expire until 1985, and felt that this allowed sufficient time to analyze other aspects of the agreement. Councilmember Lemons asked Mr. LeSage what the City's control over rate increases would be if the agreement was not accepted. Mr. LeSage noted that under deregulation, the City would have no control over rate increases, and that in concurrance with State law, Sonic could increase their rates as per the cost -of -living. Mr. LeSage also noted that the main concern is that the language in the agreement be clear and this is where the Santa Barbara Ordinance would be useful. MOTION: Councilmember Risley moved that the Council instruct staff to contact the County and adjacent cities to determine their progress regarding franchise agreements, and solicit their input regarding their willingness to cooperate in an evaluation of the suitability of seeking bids from other potential cable providers. The motion died for lack of a second. There was discussion regarding the time table for a rough draft to be prepared and negoiation with Sonic. Mr. Baxter noted that a new public hearing could be advertised at that point and the agreement returned to Council by the first part of January. Mayor Shelton noted that Sonic would most likely implement their proposed rate increase prior to this time if the agreement were not accepted by Council. Mr. Baxter concurred, and stated that it would most likely be February before the Ordinance would be in effect with this time schedule. Councilmember Zeuschner clarified for the public that the cable company is able to raise its rates without City approval. Mary Phillips questioned the amount of the rate increase. Mr. LeSage stated that under State guidelines, the cable company is able to raise their rates by 3/4 of the percentage of cost -of -living. Bill Hargan explained that residential rates had not been raised for 22 months, and under State guidelines, could go to $9.00, however the rate for commercial had been raised in April and would not increase at the same rate. MORRO BAY CITY COUNCIL Regular Meeting - November 8, 1982 • Page Four Mr. Hargan corrected an earlier statement by the public and noted that Sonic now maintains all equipment within Mobile Home parks. Councilmember Lemons also corrected an earlier statement and noted that the advance billing is optional, and up to the customer. Mr. Howard stated that he had received no notice that Sonic was now maintaining the equipment within his trailer park. Dorotha Deutsch stated that the previous Council had felt that Sonic was not qualified to deregulate, and the current contract is still in force. MOTION: Councilmember Risley moved that Council instruct staff to contact the County and adjacent cities to determine their progress regarding franchise agreements, and solicit their input regarding their willingness to cooperate in an evaluation of the suitability of seeking bids from other potential cable providers, and to continue discussions with Sonic Cable TV regarding the Santa Barbara Ordinance and the proposed agreement. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Risley, Zeuschner, Anderson, Lemons, Shelton NOES: None ABSENT: None Council recessed briefly at 8:30 p.m. and reconvened at 8:40 p.m. A-2 APPEAL FROM THE DECISION OF THE Murrel Crump reviewed the staff report with Council, and instructed Council as to the appeal procedures and requirements. Mr. Crump then detailed the project's history and the environmental assessment steps that had been taken to arrive at a Negative Declaration decision. Mr. Crump outlined the California Environmental Quality Act (CEQA) guidelines, and noted that these guidelines did not allow for consideration of several of the appellant's requests in reviewing environmental impact. Mr. Crump described the preplanning process, and the existing zoning and density of the site. He informed Council of the City's response to each of the appellants demands and statements regarding the environ- mental impact of various aspects of the project, such as traffic, drainage, viewshed, water and sewer services, and police and fire protection. Mr. Crump concluded that the Negative Declaration had been arrived at after careful compliance to CEQA guidelines and requirments. Mr. Crump outlined alternatives for Council's action on the appeal. Mayor Shelton introduced Mrs. Alice Kolb, the appellant. MORRO BAY CITY COUNCIL • Regular Meeting - Novembef 8, 1982 Page Five Mrs. Kolb distributed a written statement to Council, and then responded to staff's report and recommendation. Mrs. Kolb reiterated her initial view that the environmental impacts caused by this project should be reviewed by a full Environmental Impact Report. Mrs. Kolb noted that the water and sewer usage proposed by this development could not be handled by the current system, and the traffic resulting from build -out of this project would cause an enormous impact on circulation. Mrs. Kolb also read a section from the Land Use Plan regarding the Highway 41, and the intersection of Highway 41 and Highway 1. She requested disclosure and assignment of costs for the intersection, and felt that the grading and drainage plans had been based solely on private plans generated by the developer only. Mrs. Kolb concluded that the environ- mental evaluation process had not been adequately analyzed. She then presented petitions with 70 signatures in favor of requiring a full EIR. Mayor Shelton then opened the Public Hearing. Mr. Dan Lloyd, Project Manager, stated that he would be available to answer questions. M'May Diffley concurred with Mrs. Kolb that a full EIR should be required, in particular with the public's voice as shown by the petitions. Mrs. Diffley noted that the Land Use Plan as adopted in September, called for a Water Management Plan to be developed and submitted for Coastal Commission review and.approval, and stated that this had not been accomplished and so this development was premature. Mrs. Katherine Walling felt that sufficient geological surveys had not been accomplished, and felt that the terracing and weight of this project was in excess. Mr. Ernie Miller stated that he was concerned regarding the amount of time necessary for permitting of this project, and felt this time would be reflected in higher costs for the buyers of these homes. Mary Phillips objected to the proposed drainage plan for the project, and the increased traffic on Ironwood. Lou Okasaki felt that the Motel 6 would greatly impact the traffic at the intersection of Highways 1 and 41. Scotty Campbell supported Mrs. Kolb's urge for a full EIR, and felt that there was heavy public opposition to this project. He questioned why an EIR was required for the Loparina project of 13 lots, and not for this project. Bob Lane felt that an EIR should be called for as the traffic would have a substantial effect on the area. Jane Von Keogh stated that at the previous Planning Commission meeting she had not received a satisfactory answer to her question regarding the Loparina project, and requested an answer from Council. MORRO BAY CITY COUNCIL • • Regular Meeting - November 8, 1982 Page Six Mr. Crump responded that the Looarina project did not address the drainage implications, however an EIR should not have been used to resolve this and it was an abuse of CEQA guidelines. Mr. Lloyd stated that the project's approach had been to work within City guidelines and restrictions, and to cooperate in every way to lessen the impacts of this development on surrounding areas. Mr. Lloyd stated that the project had responded to concerns of the City, and has reduced the original number of units requested. Mr. Lloyd noted that the developer was willing to contribute to a signalization of the Highway 41/Highway 1 intersection, to lessen the impact of traffic on this area. Mr. Lloyd stated that the developer has worked to reduce grade throughout the site to improve fire access, and have been attentive to neighborhood concerns in their design of the project. Mr. Lloyd noted that an EIR would not provide any additional information, and would not make recom- mendations. MOTION: Councilmember Anderson moved that the Public Hearing be closed. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: AYES: Anderson, Lemons, Risley, Zeuschner, Shelton NOES: None ABSENT: None Councilmember Anderson questioned the low -moderate housing status of this project, and asked if any priority would be given to it for building. Mr. Crumo stated that it would not qualify as low -moderate income as per the guidelines of the Water Allocation Plan, and would not receive any priority for building. Councilmember Risley asked if it would have equality of status with other projects. Mr. Crump stated it would have equality only with other like or similar multiple family projects. Councilmember Risley felt the project was premature because there would be no water available for it to develop. Mr. Crump stated that although the City ceased accepted building applications when the moratorium was enforced, it continued to accept pre -planning applications such as this. Mayor Shelton asked what the next step for the project would be if the appeal were not substantiated. Mr. Crump stated that the Use Permit and Tentative Tract Map would remain and no development would occur until water and sewer were available. Councilmember Risley was not' -satisfied that the Negative Declaration was correct, especially with regards to traffic flow, drainage, and the neighborhood character. Councilmember Risley noted that the public controversy alone is reason for a full EIR. MORRO BAY CITY COUNCIL Regular Meeting - Novemble 8, 1982 • Page Seven Councilmember Risley felt that a Water Management Plan should be developed prior to this projects approval. Councilmember Zeuschner felt that although there was no substantial evidence that an EIR was necessary, there was substantial question involving the project. Councilmember Zeuschner stated that if a full EIR were called for, and if it confirmed the City's position, then there should be no additional protest of the project. Councilmember Zeuschner felt that the project and the Negative Declaration could be technically correct but "conceptually wrong", and noted that Mr. Crump had certainly complied with all CEQA requirements, and also noted that an EIR could not respond to certain questions posed. Councilmember Zeuschner felt that there was serious public controversy regarding the significant effect of such things as ambient noise; traffic (trips per hour at that section of Highway 41); water drainage; viewshed and neighborhood changes. Councilmember Zeuschner also questioned various statistics regarding traffic flow in the area and the accident rate, and felt that these and other questions should be answered. Councilmember Lemons noted that several of these issues had been addressed in the Negative Declaration, and that CEQA rules would not address others. Councilmember Lemons also questioned what involvement Cal -Trans should have in the signalization of the Highway intersection, and stated his concern that this housing was needed in the area. There was a discussion regarding the EIR process and what it would provide as far as recommendation/suggestions. MOTION: Councilmember Risley moved that the Council uphold the Appeal by Alice Kolb, and require a full Environmental Impact Report on this project. The motion died for lack of a second. MOTION: Councilmember Zeuschner moved that this matter be continued and that Council instruct staff to address the questions and concerns raised at this meeting, and report back to Council. The motion died for lack of a second. There was additional discussion regarding the signalization of the Highway 1/41 intersection. Mr. Bressan stated that if the money were available to the City, Cal -Trans might allow the signal to be placed, but would most likely be involved in the process. MOTION: Councilmember Risley moved that Council uphold the Appeal by Alice Kolb, and require a full Environmental Impact Report on this project. The motion was seconded by Mayor Shelton and failed by the following vote: AYES: Risley, Shelton NOES: Anderson, Lemons, Zeuschner ABSENT: None MORRO BAY CITY COUNCIL Regular Meeting - November 8, 1982 Page Eight MOTION: Councilmember Zeuschner moved that the appeal be continued pending response from staff regarding the concerns and questions raised at this meeting. The motion was seconded by Councilmember Lemons, and carried by the following roll call vote: AYES: Zeuschner, Lemons, Anderson, Risley, Shelton NOES: None ABSENT: None Council recessed briefly at 10:05 and reconvened at 10:15 p.m. Mayor Shelton announced that a Public Hearing would be held at a later date to be determined concerning Items C-5, C-6, and C-7 on tonights agenda. Mayor Shelton also asked Council permission to hear item C-3 before the public hearing on the Sewer Rate Structure. Council concurred. C-3 REPORT FROM BUSINESS IMPROVEMENT COMMITTEE REGARDING CITY BENCHES Ann Udell, a member of the Business Improvement Committee, gave a brief presentation to Council regarding the Committee's proposed projects of providing City benches at various areas around town, as well as directories to assist in locating area businesses, and identifying current activities. Ann provided Council with additional detail regarding the projects, and stated that the California Conservation Corp would assist in the assembly and installation of the benches. Rodger Robinson, also a member of the Committee, provided Council with information regarding the proposed directories. and explained that the project would be phased to allow (9) nine directories to be placed throughout town during the first phase. Mr. Robinson stated that the Chamber of Commerce would aid in distributing cards for current events to be noticed on the directories, and a $10/year maintenance fee would be charged. Councilmember Risley commented that the project was very exciting and thrilling and suggested the recycling center and the police station as site locations for directories. Ann Udell then requested that Council provide direction and information regarding the necessary fees and permits necessary, and asked if the signs would fall under the sign ordinance. MOTION: Councilmember Lemons moved that Council approve the proposed projects in concept and instruct staff to provide additional information regarding the zoning requirements, maintenance, and any necessary permits. The motion was seconded by Councilmember Risley and carried unanimously. (5-0) MORRO BAY CITY COUNCIL Regular Meeting - November 8, 1982 Page. Nine Councilmember Lemons questioned whether a variance to the sign ordinance could be granted. Murrel Crump stated that the sign ordinance would affect this type of directory. After a brief discussion it was decided that staff would report on this matter along with the other concerns. A-3 PROPOSED SEWER RATE REVISIONS (Continued from 10/11/82) John Bressan stated that this matter had been continued to allow staff the opportunity to revise to proposed sewer rate structure as per Council suggestion at the meeting of October 11, 1982. Mr. Bressan stated that four options had been prepared for Council review, and Option I was being recommended by staff. Mr. Bressan reviewed each of the options, and noted that Option I would reduce the surcharge to reflect water reaching the Wastewater Treatment Plant; Option II would provide for an annual surcharge based on winter month readings; Option III.would.be a continuation of the flat rate; and Option IV would be the retention of the surcharge program as proposed. Mayor Shelton opened the hearing to the Public. Ray Kaltenbach asked if Option I would reduce the current rate. Mr. Baxter stated that it would 'reduce the rate that was recently effected by Council. MOTION: Councilmember Zeuschner moved that the Public Hearing be closed. The motion was seconded by Councilmember Risley, and carried unanimously. (5-0) MOTION: Councilmember Risley moved that Council adopt Option I as recommended by staff. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Risley, Zeuschner, Anderson, Shelton NOES: Lemons ABSENT: None Councilmember Risley stated that he objected to the format of the Resolution as submitted, and asked what the effective date would be on the sewer rates. Mr. Baxter stated that the effective date would be the date of adoption. Mr. Bressan noted that the Resolution could be reformated in table form or on one page with an attachment, at the desire of Council. Mr. Baxter stated that the rates would be implemented on January 1, 1983. MORRO BAY CITY COUNCIL is Regular Meeting - November 8, 1982 Page Ten Gere Sibbach explained why January would be the implementation date. Councilmember Zeuschner asked if the Resolution could be adopted and send back to staff for a change in format. Mr. Baxter stated that this would be appropriate. MOTION: Councilmember Zeuschner moved that the Resolution approving Option I as suggested by staff be approved, and that it be reformated in tabular form with an implementation date of January 1, 1983. The motion was seconded by Councilmember Anderson and carried by the following vote: AYES: Zeuschner, Anderson, Risley, Shelton NOES: Lemons ABSENT: None B. UNFINISHED BUSINESS B-1 CONSIDERATION OF'APPLICATION FOR HARBOR ADVISORY BOARD ALTERNATE Mr. Baxter informed Council that at their request, Mr. Fred Deschler had amended his application for Harbor Advisory Board Alternate, and that this amended application had been submitted for Council's review. MOTION: Councilmember Zeuschner moved that Fred Deschler be appointed as Harbor Advisory Board Alternate. The motion was seconded by Councilmember Risley and carried by the following roll call vote: AYES: Zeuschner, Risley, Anderson, Lemons, Shelton NOES: None ABSENT: None MOTION: Councilmember Lemons moved that future applicants for City Council appointed boards, commissions and committees be required to be present at the time their application is considered before the Council. The motion was seconded by Councilmember Zeuschner, and carried unanimously. (5-0) B-2 REQUEST BY ANDY ZATKO TO PLACE LIGHTS AT ANCHOR. MEMORIAL (Cont. .from 10/25) Mr. Baxter informed Council that staff had reviewed the lighting situation at the Anchor Memorial and it had appeared that there was adequate lighting being provided by a nearby streetlight. Mr. Baxter then provided Council. with the cost of placing and maintaining:,the light as requested. ($160/ City portion, $75/annual electricity cost). MOTION: Councilmember Lemons moved that the City deny Mr. Zatko's request to place lights at the Anchor Memorial. The motion was seconded by Mayor Shelton and carried unanimously. (5-0) FORF.O BAY CITY COUNCIL 41 Regular Meeting. - November 8, 1982 Page Eleven C. NEW BUSINESS C-1 BINGO LICENSE FEE WAIVER FOR WORLD WAR I VETERANS Mr. Baxter informed Council that a letter had been received from Mr. Earold Williams, adjutant for the World War I Veterans, requesting a waiver of the annual license fee. Air. Baxter noted that this request had been reviewed by the Finance Director, who was recommending that the waiver be granted, with the ;,tipulation that the license is for the 111WI Veterans group only, and should a profit be made, the waiver will be revoked. MOTION: Councilmember Risley moved to adopt the Finance Director's recommendation and grant a waiver to the WWI Veterans group of the bingo license fee, with the stipulation as stated above. The.motion was seconded by Councilmember Zeuschner, and carried unanimously. (5-0) C-2 FOR CON RDINANCE NO. 212 RE: Air. Baxter stated that correspondence had.been-received from Jack and Mary Schroder and Don and Karen Pierce, requesting permission to establish an arcade in the City, and revision of the existing Ordinance prohibiting such arcades. Mr. Don Pierce stated that they were seeking a variance to the Ordinance, to establish an arcade under the guidance and review of the City Council, on a trial, basis. Air. Pierce commented that several cities in the area have successful arcade operations, and have found that it does not have to be a detriment to the community if operated properly. Mr. Pierce stated that they were not asking for an appeal to the Ordinance, but for a waiver to operate on a trial basis, with reviews by the City, and revocation if not found to be satisfactory. There was discussion with Council, and Councilmember Zeuschner stated that as the Parks and Recreation Commission had not provided Council. with a recommendation: it should be referred back to them for further study. MOTION: Councilmember Zeuschner moved that this item be referred to the Recreation Commission and then the Planning Commission for further study of the following items: 1. Location; 2. Supervision; 3. Control conditions; 4. City License Fees 5. Investigation of experiences of other areas. The motion was seconded by Councilmember Risley and carried by the following roll call vote: AYES: Zeuschner, Risley, Lemons, Shelton NOES: Anderson ABSENT: None Councilmember Lemons asked Mr. LeSage if Council had the authority to grant a variance to an Ordinance. MORRO BAY CITY COUNCIL . • Regular Meeting - November 8, 1982 Page Twelve Mr. LeSage stated that Council could not grant a variance, but could amend the Ordinance, and place whatever conditions within the Ordinance needed to control the activity in the manner desired. Councilmember Anderson noted that if the Ordinance was amended to allow arcades, someone less reputable than the applicant could establish an arcade as well, without City Council authority. Mr. LeSage stated that language could be included in the Ordinance that it require Council approval, or a use permit. There was additional discussion regarding the matter, with no other action taken. C-3 (PREVIOUSLY CONSIDERED) C-4 REQUEST BY MORP.O BAY MARINA TO OBTAIN A WAIVER TO TI:EIR CITY USE Mr. Baxter stated that the Harbor Advisory Board had discussed this item, and was recommending denial of the request to sell fish from the slips and moorings, as there were sufficients :areas for this activity. Mr. Baxter stated that the applicant was unable to attend the Council meeting. Councilmember Zeuschner asked the reason for this recommendation. Councilmember Lemons stated that he did not believe there were many, if any, commercial fishermen at.the marina. Mr. Bressan stated that the concern was for setting a precedent for other slips and moorings. Jody Giannini stated that he did not believe there were any commercial fisherman at the Marina, and if there were, they were not be able to dock to unload or sell fish anyway, due to the size of the boats. MOTION: Councilmember Risley moved that Council uphold the recommendation of the Harbor Advisory Board in denying the request of Morro Bay Marina for a waiver to their Use Permit. The motion was seconded by Councilmember Anderson and carried unanimously. (5-0) ITEMS C-5, C-6, AND C-7 WERE CONTINUED FOR PUBLIC HEARING ON 11/22/82. Councilmember Risley stated that any member of the audience was present specifically to speak on these items, they should be allowed to do so. Jody Giannini stated that in considering these items, the Harbor Advisory Board did not have sufficient input from the user group - fishermen, and that they would speak at the Public IIearing. MORRO BAY CITY COUNCIL • • Regular Meeting - November 8., 1982 Page Thirteen MOTION Councilmember Zeuschner moved that Items C-5, C-6, and C-.7 be continued for Public Hearing onll/22/82... The motion was seconded by Counci.lmember Lemons, and carried unanimously.(5-0) Cliff Smith spoke regarding the Harbor Advisory Board's decision concerning these items. Mr. Baxter suggested that items, C-8, C-9, C-10, C-11, and C-12 be held until a later date, due to. the late hour_, Mr.. Baxter suggested that an adjourned.meeti,ng be held. MOTION: Councilmember Lemons moved that items C-9 through C-12 be continued to tomorrow (11/9/82) at 4:00 p.m..after consideration of items C-13., C-14 and Consent Calendar. The motion died for lack of a second. Councilmember Risley felt that a postponement was a good idea and would provide additional time to review the lease documents. There was discussion regarding possible dates for continuance of these items. It was agreed by Council to continue these items for Public Ilearing until 5:00 p.m_. on November 22, .1982.' C-13 ACCEPTANCE OF GRANT OFFER FROM STATE OF CALIFORNIA FOR WWTP CONSTRUCTION Mr. Bressan informed Council that as _part of the Wastewater Treatment Plant Grant process, the State has notified the City of their participation- inthe process and it was recommended.that Council accept their portion of the grant offer of $1,433,625. MOTION: Councilmember Zeuschner moved that the Council. accept the grant offer of $1,433,625 from the State of California for p their articipation in the, grant process for the Wastewater Treatment Plant process. The motion was seconded by Councilmember Risley and.carried by the following roll call vote.: AYES: Zeuschner, Risley, Anderson, Lemons, Shelton NOES: None ABSENT: None Councilmember Risley asked how many jobs this project would provide. Mr. Bressan stated that over a 30 month period, approximately 5 to 30 jobs would be provided. C-14 APPROVAL OF INTERIM CONSTRUCTION MANAGEMENT SERVICES Mr. Bressan informed Council that in order to assist with the preparation of contract documents, it w,as being recommended that Brown and Caldwell be authorized to provide interim construction management services. Mr.. Bressan stated that this cost would be grant reimburseable. MORRO BAY CITY COUNCIL • • Regular Meeting - November 8, 1982 Page Fourteen MOTION: Councilmember Risley moved that Council authorize staff to issue a notice to proceed to Brown and Caldwell for interim construction management. The motion was seconded by Councilmember Zeuschner and carried unanimously. (5-0) D. CONSENT CALENDAR D-1 CITY INUTES OF SPECIAL OCTOBER 22. 1982 Mr. Baxter recommended that the City Council minutes of the above meetings be approved as submitted. D-2 CHAMBER OF COMMERCE EXPENDITURE REPORT FOR OCTOBER, 1982 Mr. Baxter recommended that the Chamber of Commerce Expenditure Report for the month of October be approved as recommended by the Finance Director in the amount of $1,028.62. D--3 APPROVAL OF LEASE SITE AGREEMENT AMENDMENT FOR ROBERT GRAY (McGurns Motel) Mr. Baxter stated that this matter had been previously approved by Council, and recommended that this formal approval be granted. D-4 RESOLUTION RECINDING RESOLUTION NO. 61-82 Mr. Baxter recommended that Council. adopt the Resolution which would recind Resolution No. 61-82 and change James Eidson's retirement from Disability to Regular Retirement. D-5 OVERHEAD RATE ADJUSTMEYT FOR BROWN AND CALDWELL Mr. Baxter recommended that Council adopt the Resolution authorizing the Mayor to sign Amendment No. '7 to the Master Agreement with Brown and Caldwell reflecting an increase of $26,762.79 for three fiscal years, which is grant refundable. D-6 AWARD OF BID NO. PW 82-312 FOR THE PURCHASE OF A NEW OR USED CHIPPER. UNIT Mr. Baxter reported to Council that bids had been opened on 11/8/82, and that staff was recommending that Bid No. PW 82-312 be awarded to Vermeer of California for a new chipper, in the amount of $11,877.30. Councilmember Lemons noted one amendment to the City Council minutes of October 25, 1982, page 5, paragraph 3, to be amended to reflect that "Councilmember Lemons stated the appreciation of the Council for the hard work and dedication of the City Administrator... " MOTION: Councilmember Risley moved that the Consent Calendar be approved as amended above. The motion was seconded by Counelmember Lemons, and carried by the following roll call. vote: AYES: Risley, Lemons, Anderson, Zeuschner, Shelton NOES: None ABSENT: None MORRO BAY CITY COUNCIL 0 Regular Meeting - November 8, 1982 Page Fifteen E. INDIVIDUAL DETERMINATION AND/OR ACTION E-1 City Council Councilmember Risley stated that he had received letters concerning rent stabilization for mobile home parks in the City. Mr. Baxter acknowledged the letters, and noted that they were to be considered for future City Council agendas. Councilmember Risley also noted a'letter he received.from Mr. Schenk regarding limited time parking. Mr. Baxter stated that this would also be considered for future agendas. Councilmember Risley asked what the reponse to the acceptance of building applications had been to date. Mr. Bressan stated that it was his understanding that 9 completed applications had been received to date. Councilmember Risley suggested that additional notice be provided. Mayor Shelton stated that it was his feeling that ample notice had already been provided by advertisement in several forms of media, Council meetings, etc. MOTION: Councilmember Lemons moved that the meeting be adjourned to Closed Session, as requested by the City Attorney. The motion was seconded by Councilmember Zeuschner and carried unanimously. (5-0) The meeting adjourned to Closed Session at 12:50 a.m. and reconvened to Open Session at 12:56 a.m. MOTION: Councilmember Zeuschner moved that the meeting be adjourned to 5:00 p.m. November 22, 1982, for Public Hearings on earlier continued items. The motion was seconded by Councilmember Lemons, and carried unanimously. The meeting was adjourned at 12:57 a.m. RESPECTFULLY SUBMITTED, t� PEOC:WUANAN DEPUTY CITY CLERK MORRO BAY CITY COUNCIL • • REGULAR MEETING - OCTOBER 25, 1982 RECREATION HALL - 7:30 P.M. Mayor Shelton called the meeting to order at 7:30 p.m. ROLL CALL PRESENT: Eugene R. Shelton Rodger J. Anderson John Lemons Bruce Risley Bud Zeuschner ABSENT: None STAFF: Paul Baxter Michael T. LeSage John Bressan Murrel Crump Tom Freeman Al Olson Gere Sibbach Bernie Zerr Peggy Buchanan Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Public Works Director Community Development Director Recreation Coordinator Police 'Chief Finance Director Fire Chief Deputy City Clerk The Pledge of Allegiance was led by Mr. Horace Strong representing Morro Bay Veterans, and the Invocation was also offered by Mr. Strong. Mayor Shelton then presented a Resolution of Welcome to AFS Student Monika Verebelyi, who will be living with a host family and attending Morro Bay High School this year. Mayor Shelton also presented a Resolution of Commendation to resigning Police Chief Al Olson, and praised Chief Olson for his work and progress in the Department. Chief Olson thanked the Council and the staff, and stated that he wished to acknowledge and thank the community for their support during his time as Police Chief, and noted that the Police Department is staffed with dedicated professionals and the community should continue to support them. Rosemarie Sheetz of the Community Roundtable presented two checks to the City of Morro Bay to support the PARTNERS program and help finance Mary Sanders' trip to Louisville, Kentucky to accept the award for the City. Rosemarie stated that the funds were proceeds from the recent Harbor Festival, and included a contribution from the Art Association. A. PUBLIC HEARINGS, REPORTS & APPEARANCES A-1 CONSIDERATION OF PROPOSED AGREEMENT AND ORDINANCE WITH SONIC CABLE TV Mr. Baxter stated that this was a scheduled Public Hearing to consider a proposed Agreement and Ordinance with Sonic Cable TV. Mr. Baxter informed Council that the City had recently received information from the City of Santa Barbara regarding their relationship with cable television, and recommended that after receiving public input, that Council continue the Public Hearing until the next meeting. MORRO BAY CITY COUNCIL • • Regular Meeting - October 25, 1982 Page Two Mayor Shelton opened the Public Hearing. Mr. Guy Rathbun stated that the cable company had provided fine work for the community, with programs during the recent election that covered the local candidates, and with other community services programs and felt this work should be taken into consideration. Rosemarie Sheetz stated that Sonic had provided beneficial coverage of local events that was excellent, and felt that the public access as provided by Sonic should also be considered as a benefit to the City. Mayor Shelton stated that this Public Hearing would be continued to allow additional public input if desired at the next meeting. MOTION: Councilmember Zeuschner moved that the Public Hearing be continued until the regularly scheduled meeting of November 8, 1982. The motion was seconded by Councilmember Risley and carried unanimously. (5-0) A-2 PUBLIC HEARING REGARDING THE CITY' ITY Mr. Baxter explained to Council that the State of California has announced that applications would be received by them this fall for HUD Community Block Grants, and that after review by City staff the local senior citizens project appears to be eligible for these funds. Mr. Baxter noted that the amount available would be approximately $450,000, with no matching funds required. Mr. Baxter stated that staff is recommending that Council authorize the processing of this grant application. Mayor Shelton opened the hearing to the public. Margueritte McAuliffe stated that the seniors were deeply appreciative of the effort to secure these funds on the part of the City, and noted that if the grant can be secured, important services would be able to be provided to the seniors of the community, such as day health care and expanded meal services. Mayor Shelton asked Marguerite to clarify where donated money actually goes. Marguerite stated that all money donated to the Senior Citizens would go directly and 100% to the Senior Citizens. Ms. McAuliffe noted that the Seniors have contracted with a fundraiser in the L.A. area and that money he raises will be split 50/50, however this would not include direct donations to the Seniors. Mr. Bob Terra stated that the City Council should thoroughly consider this grant, as the services that could be provided are very needed in the community and would allow many seniors to receive help in special areas. MORRO BAY CITY COUNCIL • Regular Meeting - October 25, 1982 Page Three • MOTION: Councilmember Lemons moved that the Public Hearing be closed. The motion was seconded by Councilmember Risley and carried by the following roll call vote: AYES: Anderson, Lemons, Risley, Zeuschner, Shelton NOES: None ABSENT: None MOTION: Councilmember Risley moved that Council authorize staff to proceed with filing of a Community Development Block Grant application for a senior citizens construction project and authorize the City Administrator to sign all documents pursuant to the grant. The motion was seconded by Councilmember Lemons. Councilmember Zeuschner stated this thanks on behalf of the Council to Congressman Panetta and Ruth Hanula for their efforts in securing information relating to this available grant money. Councilmember Zeuschner also suggested that the Mayor head up a group to contact Congressman Panetta, Senator Mello, Senator Maddy and other to use the influence of the City to seek the success of this grant application. Mayor Shelton asked the amount of staff time this application process would require. Mr. Baxter stated that Mr. George Rubaloff was handling the grant application and it had involved approximately 3 staff days to date, and would most likely require an additional 6 to 7 staff days. There was a roll call vote on Councilmember Risley's motion: AYES: Risley, Lemons, Anderson, Zeuschner, Shelton NOES: None ABSENT: None A-3 CONSIDERATION'OF'LOAN OFFER FROM DEPARTMENT OF WATER RESOURCES (cont.) Mr. Baxter requested Mr. Bressan to provide the staff report. Mr. Bressan stated that the City Council had previously authorized staff to proceed with pursuing the State Department of Water Resources loan or grant to replace existing failing water system and to replace and supplement the water tanks. Mr. Bressan stated that due to the City Is current and past low water rates, the City did not qualify for a grant, but had been offered a 1.5 million dollar loan. Mr. Bressan informed Council that the matter had been reviewed by the Water Advisory Board who recommended acceptance of the loan offer, and the staff had. held a Public Hearing, as well as a well advertised Public Hearing.held by the State at which approximately 36 persons attended. This last Public Hearing was to meeting the requirements of the State Department of Water Resources, and the results of the meeting indicated MORRO BAY CITY COUNCIL • • Regular Meeting - October 25, 1982 Page Four that a majority of those present supported the loan offer. Mr. Bressan reviewed the projects the loan would allow the City to proceed with and noted especially that two aging water tanks would be replaced as well as approximately three years (±7 miles) of water line. Mr. Bressan stated that there were several reasons to accept the loan offer, among which are the potential health hazard which the State Department of Health was concerned about. This was due to the low pressure problem which potentially could create a backflow, allowing contaminants to enter the system. Additionally, the one tank that the City is currently using that is redwood and in poor repair, could create a health hazard. Mr. Bressan stated that the cost to the consumer if this loan offer was accepted would be approximately an additional .220 per 100 cubic feet, or for an average bill, approximately $2.00. Mr. Bressan noted that the repayment of this loan must come from water revenues and not from other sources such as taxes. Mayor Shelton opened the hearing for public input. Howard Gaines handed out data pertaining to City finances, and stated that he felt there were revenues available to provide the needed repair and maintenance work on the water tanks and lines. Mr. Gaines stated that there would be a large surplus at the end of this year due to increased water revenues from water availability charges on building permit fees. Mr. Gaines also stated that back rents on Embarcadero lease sites could be used for this purpose. Mr. Gaines then called the health hazard as related by Mr. Bressan, a "scare tactic" and stated that Morro Bay was 327th out of 409 applicants based on bacteria levels. Mr. Gaines concluded that the loan was not in the best interest of the public and the City should continue their present program of water line replacement. Mr. Gaines then challenged the vote of Councilmember Anderson, and stated that he had a conflict of interest, as the manager of the Galley Restaurant, and felt that he should not vote on this matter. Mr. Gaines also provided a written statement to be filed with the City Clerk. Mr. Bressan clarified several of Mr. Gaines' remarks, and noted that the 409 applications were those most critical in terms of bacteria levels among thousands of applications, and Morro Bay's ranking of 327 was significant, and indicated Chief Zerr might have conments regarding fire flow. Herminia Ward stated that she had gone door to door with a petition to urge the City Council to accept the loan offer and had informed citizens of the loan amount, and the purpose of the loan, and had secured a total of 202 signatures from Fresno Street, Bernardo, Estero Shasta, Napa, Tulare, Arcadia and Arbutos Streets. Mrs. Ward presented the petitions to the Mayor. Mayor Shelton stated that the Public Hearing on this matter would be temporarily interrupted to take time to recognize the members of the MORRO BAY CITY COUNCIL • • Regular Meeting - October 25, 1982 Page.Five Cayucos Sanitary District that were present. Mayor Shelton explained to the audience that the City of Morro Bay and the Cayucos Sanitary District had been working together to arrive at an agreement for the operation of the Wastewater Treatment Plant, and that after several meetings this past week and weekend, an agreement had been reached and was to be ratified by both Boards at this meeting. Mayor. Shelton then,introduced the -"member of the Cayucos Board and 'Elie attorney -.and secretary for the Sanitary Distict. Councilmember Lemons stated his appreciation for the hard work and dedication of the City Administrator, the Deputy City Clerk, and the Director of Public Works, as well as the City Attorney and the Attorney for Cayucos. Councilmember Lemons stated that he had been impressed by the professional attitude of Mayor Shelton and his negotiation skills. Councilmember Lemons also noted the contribution of former Mayor Warren Dorn, for his work on the Wastewater Treatment Plant grant, by contacting legislators and those others with influence on the grant award procedure. MOTION: Councilmember Lemons moved that the Council authorize the Mayor to sign the Agreement with the Cayucos Sanitary District for operation of the Wastewater Treatment Plant on behalf of the City of Morro Bay. The mot.ion was seconded by Councilmember Anderson and carried by the following roll call vote: AYES: Lemons, Anderson, Zeuschner, Shelton NOES: None ABSENT: None ABSTAIN: Risley Councilmember Risley stated that he had abstained from vote due to his lack of participation in the agreement process. Mayor Shelton and President Schubert then signed the agreement. Council recessed briefly at 8:40 p.m. and reconvened at 8:52 p.m. Mayor Shelton announced that the Public Hearing for the Department of Water Resources Loan Offer would now continue. Mr. Bob Lane stated that by accepting the loan the City would only be accelerating the water line replacement project by 2? years, and.did not feel this was adequate reason to take the loan. Mr. Lane also agreed that large surpluses would exist in 1983 and that this money should be used to speed up the water line replacement project. MORRO BAY CITY Regular Meeting Page.Six COUNCIL • • - October 25, 1982 Councilmember Lemons questioned the surplus figures as stated by Mr. Lane. Mr. Sibbach stated these figures were at least double what the surplus would be based on City projections. Mr. Sibbach noted that there was projected to be a $115,000_reserve at the end of year, and that the revenue projections.stated by Mr. Gaines and Mr. Lane were overstated. Mr. Sibbach.also noted that the water availability fees were quite speculative at this time, and nothing has been received from these fees to date. Councilmember Lemons asked if the City was required to maintain a reserve if the_loan was accepted. Mr. Sibbach stated that the City would be required to have a reserve of $142,000. Mr. Austin Brummley felt the bond issue would be a burden to the taxpayers. Juanita Booth felt the water was contaminated by bacteria and urged Council to accept the loan and upgrade and replace the pipes and tank. Ray Kaltenbach did not feel that the water pipes were in that bad of state. Jack Franklin felt the City would be wise to take the grant at the 8$% interest rate proposed, and continue with the proposed repairs and pipe replacement_. Mr. Franklin stated that in his experience, growth during the last 10 years had been orderly and he felt this would continue. Scotty Campbell did not feel the public had been well notified and felt the water rate increase last year should have covered the needed repairs and pipe replacement.. Bob Ward noted that this is not an overnight problem, and if sewer and water rates had been raised consistently, the.City might have qualified for a grant now instead of a loan. Mr. Ward agreed that the City should take advantage of the 8j7.interest rate for this loan, and if possible the City could pay the loan off earlier. Mr. Bressan stated that the City's priority would be replacement of the tanks, however the State Health Department would have the City replace water lines as a first priority due to potential health hazards. Dick Ferris asked when the repairs would take place if this loan was not accepted and the work done now. Joe Giannini felt that the 1.5 million dollar loan would be too much of a burden for the senior citizens and others to pay, and felt the City should show some concern for those not able to pay their bills now. Mr. Giannini noted that the City's shallow wells were more of a health hazard than the tanks and pipes. MORRO BAY CITY Regular Meeting Page Seven COUNCIL • • - October 25, 1982 Lila Keiser stated her opinion that the loan was good insurance and would assure the City better water. Walter Corbin felt it was good economics to take care of the system now, and was concerned about good, clear water. Charles Palmer noted that there were many erroneous or exaggerated figures being spread around town regarding the size of the loan, and agreed that it would be economically smart to accept the loan at the 8J% interest as proposed, as future costs cannot be figured. Mr. Palmer noted that if the City was ever challenged and made to go to public bid for the water work it is presently doing in-house, there would not be funds available to do the work. Grace Melton urged Council to approve the loan offer. Mrs. Cook stated that the City needs a better water system and felt the loan should be accepted. Ernie Miller also urged Council to support the loan offer, for reasons of health hazard and water conservation. Jane VonKeogh was concerned about those people in financial difficulty and felt the added burden of a rate increase would be too much. Carl Ansbury felt there was much conflicting information being presented, and felt Council should investigate the data presented. Mr. Ansbury also felt that the reserves should be maintained at a minimum level, and used for this project. Lou Okasaki was opposed to acceptance of the water loan offer and felt the cost was too high and the City shouldn't saddle the people with this for 25 years. Herminia Ward stated that according to her information, although there were many senior citizens in the City, the number who would not be able to pay the extra 22¢ a 100 cubic feet was much smaller. Mr. Palmer felt the loan should be accepted but perhaps something could be provided for those.in dire need. Kathleen Walling felt that Morro Bay already has deficit spending and should not "mortgage" the next 25 years, that there are other alternatives. MOTION: Councilmember Lemons moved that the Public Hearing be closed. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Lemons, Zeuschner, Anderson, Risley, Shelton NOES: None ABSENT: None Councilmember Risley questioned the Water Advisory Board recommendation and asked if the member who had telephoned in his vote had been counted. MORRO BAY CITY COUNCIL • • Regular Meeting - October 25,1982 Page Eight Mike Wolski, Associate Civil Engineer, stated that the member was R.B. Kitzman, and the vote had been advisory. Councilmember Risley asked if the $1,125.00 water availability charge applied to each unit of a motel, or apartment. Mr. Bressan stated that this was his understanding but he could not verify it without reviewing the Resolution. Councilmember Risley reviewed the history of the various reports regarding the water situation in Morro Bay, and noted that since 1979, the City has accelerated the water line replacement program, and felt that the program could be accelerated even more. Councilmember Risley noted that with the bui1ding moratorium lifted, revenues from water availability charges could provide the added funds needed for this acceleration. Councilmember Risley felt it would more sensible to continue with the current program rather than accepting the loan offer. Councilmember Risley also felt that if considered, this loan offer.should be presented to the voters at an election. Councilmember Lemons did not feel this was a matter that would be passed by the.voters,_as even school bonds were failing in recent elections. Councilmember Lemons noted that the City is currently operating under Coastal Commission permit requirements which state that the water lines will be replaced at.a certain rate, and that if the City wishes to avoid another moratorium, the loan offer would. insure this. Councilmember Lemons also noted that the loan offer might be repaid with funds allocated currently to replace water lines,. as well as any revenues received. from water availability charges. Councilmember Lemons felt that without the loan, rates would have to be raised if the replacement program was to continue and the tanks be replaced. Councilmember Anderson noted that if the City would ever have to go to public.bid for the water line replacement program, the cost would be much greater. Councilmember Zeuschner felt a program to replace the water tanks and water lines quickly was necessary,.however he did not feel the loan was necessary. Councilmember Zeuschner felt the loan contained, an inverted priority, and_that the tanks should be replaced first, with water line replacement at second priority.. He felt that the "pay as you go" method was more reasonable, and if revenues were used and reserves kept at a minimum, the program could be accelerated. Mayor Shelton asked why the City and Department of Water Resources held a Public Hearing rather than an election. Mr. Bressan noted that it would be extremely costly to hold a special election, and the Department of WaterResources had recommended. that a Public Hearing would be sufficient if it were well advertised. Mayor Shelton questioned whether an extension could be granted to wait for the next regular election. Mr. Bressan felt it was doubtful, but could be investigated. MORRO BAY CITY Regular Fleeting Page Nine COUNCIL - October 25,1982 Mayor Shelton stated that the efforts to secure any funds available were sincerely appreciated by Council, and that they appreciate the opportunity to dicuss all options. Councilmember Lemons responded that if a "pay as you go" approach is taken, there will not be.adequate funds available to replace the water tanks without a significant rate hike. Councilmember Risley felt the water availability charges would help a great deal. Councilmember Lemons noted that this is a speculative source of revenue and nothing had been received from it yet. . MOTION: Mayor Shelton moved that Council not accept the loan offer of 1.5 million from the Department of Water Resources,,and that staff inquire as to the possibility of seeking an extension.of the offer until after the next regular election. The motion died for lack of a second. MOTION: Councilmember Risley moved that Council not accept the loan offer of 1.5 million from the Department of.Water Resources. The motion died for lack of a second. MOTION: Councilmember Lemons moved that Council accept the loan offer of 1.5 million_ dollars from the Department of Water. Resources. The motion was seconded by Councilmember Anderson and was defeated by the following roll call vote: AYES: Anderson, Lemons NOES: Risley, Zeuschner, Shelton ABSENT: None Councilmember Zeuschner stated that no action needed to be taken if the loan was not to be accepted. Mayor Shelton asked staff to investigate the possibility of an extension for the loan offer until after the next regular election. Councilmember Risley was in favor of taking the matter to the vote of the people. Councilmember Lemons noted that the Water Advisory Board had made a second recommendation that if the full amount of the loan was not accepted, that sufficient funds be accepted to construct the water tanks. MOTION: Councilmember Lemons moved that Council make application for acceptance of a loan of sufficient funds to build the necessary water tanks.. The motion was seconded. by Councilmember Anderson. 1-1 L MORRO BAY CITY Regular Meeting Page Ten COUNCIL - October 25, 1982 The motion was defeated by the following roll call vote: AYES: Lemons, Anderson NOES: Risley, Zeuschner, Shelton ABSENT: None Councilmember Zeuschner did not feel there was enough urgency to accept the loan, and thought that there would be sufficient funds available. Council recessed at 10:30 p.m. and reconvened at 10:41 p.m. B. UNFINISHED'BUSINESS B-1 'PILOT PROGRAM REPORT ON THE STREET BAND Paul Baxter provided Council with an update report regarding the success of the Street Band. Mr. Baxter reviewed a report from Mary Sanders which indicated.that the Band had a positive response from both the businesses and visitors and recommended that it be continued. Councilmember Lemons noted the limit placed on the Band from October through May and suggested that this limit be removed. MOTION: Councilmember Lemons moved that Council authorize the continuance of the Street Band, and remove the limit placed upon them from October through May. The motion was seconded by Councilmember Risley and carried unanimously. B-2' LEASE SITE 'EXTENSION REQUEST BY GEORGE LEAGE (Tiger's Folly) Paul Baxter reviewed the request by George Leage for an extension to his. Lease Site, and stated that discussions with Mr. Leage had concluded and that staff was recommending that the current square footage price of 280 per square foot of water would be charged for the additional area. Mr. Baxter stated that staff would recommend approval of the Resolution granting this lease site extension under the terms and conditions of the current lease. MOTION: Councilmember Zeuschner moved that Council adopt the Resolution as submitted, granting a 20 foot extension to the Lease Site for George Leage (Tiger's Folly). The motion was seconded by Councilmember Lemons, and carried by the following roll call vote: AYES: Zeuschner, Lemons, Anderson, Risley, Shelton NOES: None ABSENT: None (5-0)I • OR RO BAY CITY COUN C L • I M Regular Meeting - October 25, 1982 Page Eleven B-3 CONSIDERATION OF APPLICATIONS FOR REFUSE FRANCHISE BOARD AND HARBOR ADVISORY BOARD ALTERNATE VACANCIES Paul Baxter informed Council that there had been one application received from Mr. Ed Foote for the vacancy currently existing on the Refuse Franchise Board, and two applications received for the Harbor Advisory Board Alternate vacancies from Mr. Fred Deschler, and Mr. Ronald Lipshay. MOTION: Councilmember Risley moved to appoint Mr. Foote to the Refuse Franchise Board. The motion was seconded by Mr. Zeuschner and carried unanimously. (5-0) Mr. Baxter informed Council that the Harbor Advisory Board was required to fill vacancies according to categories (i.e. commercial fishing, sports fishing, etc.) however, iL had been Council policy in the past to allow persons not "qualified" in the areas needed, to temporarily be appointed until a more suitable applicant came along. Councilmember Lemons stated that he would like to see additional information on Mr. Deschler's application, to reflect his reasons for application to the Harbor Advisory Board. MOTION: Councilmember Zeuschner moved to appoint Mr. Ron Lipshay to the Harbor Advisory Board alternate vacancy. The motion was seconded by Councilmember Lemons. There was additional discussion regarding Mr. Deschler's application. Councilmember Zeuschner amended his motion to add that Mr. Deschler be provided an additional two weeks for amendment to his application. Councilmember Lemons amended his second. The motion carried unanimously. (5-0) B-4 AN 'ORDINANCE ADDING - SECTION 7.08.310 AND AMENDING SECTION 7 Mr. Baxter stated that this was the second reading of an Ordinance which would prohibit dogs on the grounds of public parks, except for those uses granted a City Use Permit such as dog obediance classes. MOTION: Councilmember Lemons moved that this Ordinance be read by title and number only. The motion was seconded by Councilmember Risley and carried by the following roll call vote: AYES: Lemons, Risley, Anderson, Zeuschner NOES: None ABSENT: None Paul Baxter read "An Ordinance adding: Section 7.08.310 and amending Section 7.08.020 of Title VII". MORRO BAY CITY COUNCIL Regular Meeting - October 25, 1982 Page Twelve Mr. Bruce objected to the ban of animals in the parks, and thought that people should be allowed to take their pets to the park as their are few other places available for exercise. Mr. Bruce suggested that that City conduct a poll of citizens to determine how this Ordinance is received. Mayor Shelton stated that there had been no negative remarks at the recent Public Hearing on the matter. Bob Lane stated that the Public Hearings are only attended by a small faction of the people, and that vast groups of residents are not represented, and felt the City should improve communications. Mayor Shelton stated that the Council would be happy to accept any solutions or ideas. Councilmember Zeuschner stated that other cities have adopted similar ordinances and in fact this Ordinance was modeled after Grover City's. MOTION: Councilmember Lemons moved that the Ordinance be adopted as a final reading. The motion was seconded by Councilmember Anderson and carried by the following roll call vote: AYES: Lemons, NOES: None ABSENT: None C. NEW BUSINESS Anderson, Risley, Zeuschner, Shelton C-1 'REQUEST FROM ANY ZATKO TO PLACE LIGHTS ON ANCHOR MEMORIAL Mr. Baxter informed Council that Mr. Andy Zatko had submitted a request to donate materials to place a light at the base of the Anchor Memorial. Mr. Baxter stated that Mr. Zatko had volunteered to donate the material if the City would provide the labor for installation. MOTION: Councilmember Risley moved to approve Mr. Zatko's request to place lights on the Anchor Memorial, with the City providing the staff time. The motion was seconded by Councilmember Zeuschner. Councilmember Lemons questioned the type of lights and their location, and what preventative measures would be taken against vandalism. Mr. Zatko stated that he would move the existing collection box, and place a light at the base of the memorial, to shine up and illuminate the anchor. The light would be white, and sealed against vandalism. Mayor Shelton stated that the concern was for aesthetics, as the Anchor was very simple in its beauty and might be affected the addition of lights. Mr. Jim Ross was against the addition of lights on the Anchor. MORRO BAY CITY COUNCIL • • Regular Meeting - October 25, 1982 Page Thirteen Mr. Ed Smith also objected to the light, and felt the Anchor had dignity that would be disturbed by,the addition.of lighting. Andy Zatko stated that he felt a light at the base of the Anchor would give it visibility at night and would be beneficial., Councilmember Risley stated that it was his understanding that the collection box would be removed as soon as enough money was collected for the engraving of names on the plaque to be placed on the anchor. . Councilmember Lemons suggested that the matter be continued until more information could be received. MOTION: Councilmember Zeuschner moved that the matter be tabled for two weeks. The motion was seconded by Councilmember Lemons and carried unanimously. (5-0) D. CONSENT CALENDAR Paul Baxter reviewed the following items on the Consent Calendar: D-1 Mr. Baxter recommended that Council approve the above minutes as submitted. D-2 'CITY 'OF'MORRO BAY EXPENDITURE REPORT FOR SEPTEMBER, 1982 Mr. Baxter recommended that Council approve the Expenditure Report as prepared by the Finance Director. D-3 PROCLAMATION OF NOVEMBER 7 - 14, 1982,'AS'"HOSPICE WEEK" Mr. Baxter recommended that Council approve the Proclamation as submitted, and authorize the Mayor to sign on behalf of the.City. D-4 PROCLAMATION OF NOVEMBER AS "VETERAN''S'CALL TO UNITY MONTH" Paul Baxter recommended approval of the Proclamation declaring November as "Veteran's Call to Unity Month".and authorization for the Mayor to sign on behalf of the City. D-5 RESOLUTION OF 'WELCOME TO'MONIKA'VEREBELYI. AFS STUDENT Mr. Baxter recommended that Council adopt the Resolution welcoming Monika Verebelyi to the City of Morro Bay,. D-6 PROCLAMATION OF OCTOBER 25th - 29th AS "SECOND ANNUAL -SAFE SCHOOLS WEEK" Mr. Baxter recommended adoption of the Proclamation as submitted. D-7 AWARD OF BID NO. PW82-285 FOR BACKHOE LOADER AND OPTIONAL TRAILER Mr. Baxter recommended that bid No. PW82-285 be awarded to Ryan Equipment MORRO BAY CITY COUNCIL • • Regular Meeting - October 25, 1982 Page.Fourteen . of Santa Maria, in the amount of $34,978.16, for a backhoe loader and optional trailer. D-8 RENEWAL OF LEASE BETWEEN BAY AND P.G.&.E. FOR LILA Mr. Baxter recommended that Council approve the lease renewal for the Lila Keiser Park Wells as submitted and that the Mayor be authorized to sign on behalf of the City. D-9 PROCLAMATION OF "ZIP UP AND SAVE" ENDORSING P.G.&.E.'S ZIP ENERGY PROGRAM Mr. Baxter recommended that Council adopt the Proclamation as submitted, and authorize the Mayor's signature on behalf of the City. D-10 RESOLUTION COMMENDING LEON PANETTA FOR HIS EFFORTS ON BEHALF OF THE CITY Mr. Baxter recommended adoption of the Resolution commending Leon Panetta as submitted. D-11 RESOLUTION DECLARING RESOLUTION NO. 32-82 NULL AND VOID Mr. Baxter recommended that the Resolution declaring Resolution 32-82 null and void, be adopted as submitted. D-12 RESOLUTION COMMENDING AL OLSON UPON EMPLOYMENT RESIGNATION Mr. Baxter recommended that Council adopt the Resolution as submitted. MOTION: Councilmember Risley moved that the Consent Calendar be adopted as submitted. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: AYES: Risley, Lemons, Anderson, Zeuschner, Shelton NOES: None ABSENT: None E. INDIVIDUAL DETERMINATION/AND OR ACTION E-1 CITY COUNCIL Joe Giannini spoke regarding the Water Advisory Board, and objected to the fact that several members on the Board are not Morro Bay residents. John Lemons explained that the Board came into being as a requirement of Phase II of the Wastewater Treatment Plant grant, and that the City was required to appoint a board to represent all user categories, and that this membership was not required to reside within the City. Councilmember Lemons noted that experts from several areas have been able to add their knowledge in this way. Mr. Giannini felt that when voting on issues such as bonds, those members who are not city residents should not be able to vote. MORRO BAY CITY COUNCIL Regular Meeting- October Page Fifteen _, 10 25, 1982 Mayor Shelton stated that he had received a letter San Leandro asking for support of a Resolution to of Federal Revenue Sharing. E-2 CITY ATTORNEY None E-3 CITY ADMINISTRATOR E from the Mayor of urge a continuation Paul Baxter stated that he had one item - a request for Council authorization to allow staff to request a proposal from Brown and Caldwell for Construction Management Services. MOTION: Councilmember Lemons moved that Council authorize staff to request a proposal from Brown and Caldwell for Construction Management Services. The motion was seconded by Councilmember Zeuschner and carried unanimously. (5-0) John Bressan stated that on behalf of the employees at the Wastewater Treatment Plant and himself, he would like to thank the Council for their strong support and consideration for the employees feelings of job security during the recent negotiations regarding an agreement with Cayucos, this support was greatly appreciated. MOTION: Councilmember Risley moved that the meeting be the next regular meeting of November 8, 1982. seconded by_Councilmember Zeuschner and carried (5-0) The meeting was adjourned at 11:40 p.m. RESPECTFULLY SUBMITTED, PEG CHANAN DEPUTY CITY CLERK adjourned to The motion was unanimously. MORRO BAY CITY COUNCIL/CAYUCOS SANITARY DISTRICT ADJOURNED JOINT MEETING-OCTOBER 24, 1982 CITY HALL CONFERENCE ROOM - 4:00 P.M. Mayor Shelton called the meeting to order at 4:25 p.m. with the following members present: MORRO BAY CITY COUNCIL: Eugene R. Shelton Mayor Rodger Anderson Councilmember John Lemons Councilmember Bud Zeuschner Councilmember ABSENT: STAFF: CAYUCOS SANITARY DISTRICT: Bruce Risley Paul Baxter Michael LeSage John Bressan Terry Schubert Roger Lyon G. Borradori N. Murray G. Minetti J. Bergmueller E. Girard Councilmember City Administrator City Attorney Public Works Director President Attorney Director Director Director Director Secretary There was brief discussion between Cayucos and Morro Bay regarding the G-3 design exhibit. Mayor Shelton reviewed the meeting of 10/22 with the Cayucos Sanitary Distict, and asked Mr. Bressan to review the Construction Management selection process. Mr. Bressan briefly reviewed the selection process and recommended that Brown and Caldwell be selected for.Construction Management Services. Mr. Bressan explained that they have a good track record and experience in the field. Mr. Bressan noted that a Construction Management Firm should be selected prior to advertisement in mid -November. Director Murray questioned how the fees are determined. Mr. Bressan explained that the fees are determined through negotiations, after the bid has been awarded based on qualifications. Mr. LeSage stated that there are legal concerns with having a qualified firm to reduce the liability question. Mr. Bressan discussed with the Council and Board the EPA audit and requirements. The Council and Board then discussed the selection process further. MOTION: Director Bergmueller moved that the Cayucos Sanitary District and the Morro Bay City Council accept Brown and Caldwell Heary as Construction Managers for the Wastewater Treatment Plant project. The motion was seconded by Councilmember Anderson and carried unanimously. (9-0-1) MORRO BAY CITY COUNCIL/OCOS SANITARY DISTRICT ADJOURNED MEETING - Octo er 24, 1982 Page Two The City Council and the Sanitary Board then continued discussion on the proposed agreement. The daily operation of the plant was discussed and it was proposed that Morro Bay should continue to handle the day to day operation of the plant, unless both entities agree by majority vote to change. Mayor Shelton suggested that all policy decisions by the joint body be agreed.to by at least 7 votes. Mr. LeSage suggested that wording defining the total membership for each agency (5 members each) be included in the agreement. Mr. LeSage reviewed theimpasse.procedures;'and suggested that changes in.policy could be by majority vote of both boards._ Mr.. Schubert felt the wording as proposed on page 10 should remain the same. MOTION: Director Minetti moved that the wording for impasse procedures as stated on page ten remain the same as written. The motion was, seconded by President Schubert and carried unanimously. Councilmember Lemons asked what would happen if arbitration didn't help. Mr. Lyon stated that the arbitration procedure allows for a decision to be. made. Mr. Schubert questioned the waiver application, and noted that Cayucos would want 40y of any increased capacity. Mr. Bressan stated that any increase from the waiver application would give a new percentage relationship, however the figures are not known and this might create other problems. The Council and Board discussed the waiver proposal, and other suggested areas of change to the agreement. MOTION: Mayor Shelton moved that the Council adopt in principal the draft, agreement as amended at this meeting and the. Council. ratify the agreement at their regular meeting of 10/25/82. The motion was seconded by Councilmember Lemons and carried unanimously. (4-0-1) Mr. Lyon felt this might be a premature action. MOTION: Councilmember Anderson moved that the meeting be adjourned to the regular meeting of October 25, 1982, at 7:30 p.m. The motion was seconded by Councilmember Lemons, and carried unanimously. (4-0-1) The meeting was adjourned at 6:05 p.m. RESPECTFULLY SUBMITTED, PEGGY BUCHANAN. T)FPTITV CTTY CT.RRK E MORRO BAY CITY COUNCIL CAYUCOS SANITARY DISTRICT SPECIAL JOINT MEETING - OCTOBER 22, 1982 RECREATION HALL - 5:00 P.M. AGEfv'I5ANo. D- 1 Datelu—b Action Mayor Shelton called the meeting to order at 5:00 p.m. and announced that this was a Special Joint meeting of the Morro Bay City Council and the Cayucos Sanitary District Board, to discuss a JPA for the operation of the Wastewater Treatment Plant. Those present were as follows: MORRO BAY CITY COUNCIL: Eugene R. Shelton Mayor Rodger Anderson Councilmember John Lemons Councilmember Bud Zeuschner Councilmember ABSENT: Bruce Risley STAFF: Paul Baxter Michael LeSage John Bressan Peggy Buchanan CAYUCOS SANITARY DISTRICT: Terry Schubert Roger Lyon G. Borradori N. Murray G. Minetti J. Bergmueller E. Girard Councilmember City Administrator City Attorney Director of Public Works Deputy City Clerk President Attorney Director Director Director Director Secretary Mayor Shelton asked Mr. Schubert to please introduce the members of the Cayucos Sanitary Board for the public's information and then introduced the members of the City Council and staff present. Mayor Shelton made a brief statement regarding the prepared agenda, and acknowledged that the purpose of the joint meeting was to assure that the wastewater treatment plant facility will be available both now and in the future. Mayor Shelton stated that the plant must be rebuilt, as the alternative would be to spend millions of dollars in the next few years, and in the future. Mayor Shelton then stated that after reviewing the proposal submitted by the Cayucos Sanitary District regarding the issue of land ownership, the City Council had approved the proposal, with the exception of parcels 5B and 5C which were needed for possible future expansion of the Maintenance Yard. Mr. Schubert then drew a map of the proposed land division, including the current plant site, the speedway property, the plant expansion area, the Pioneer property, the maintenance yard, and the two additional parcels 5B and 5C. Mr. Schubert explained the proposal as offered by Cayucos, and the counter- offer by Morro Bay to the Board members. Mr. Schubert also noted that the Speedway property is currently under litigation, and it was the feeling of the Board that Cayucos had a strong case in this litigation. MORRO BAY CITY COUNCIL/CA4WOS SANITARY DISTRICT . SPECIAL JOINT MEETING - OCTOBER 22, 1982 Page Two Mr. Schubert then asked for clarification regarding the existing uses on the property, and questioned whether they were Use Permits or Leases, and the termination date if leases. Mr. Baxter stated that it was his understanding that they were use permits, but the files would need to be checked for verification. Mr. Bressan noted that Use Permit 115 and 120 did occupy a portion of the Speedway parcel, however he was under the impression that the remaining area (Morro Dunes) was a lease. Mr. Bressan then left the meeting to verify this information. There was a discussion among the Cayucos Board. Mayor Shelton stated that the City Council felt that this proposal would allow Cayucos to pick up additional square footage, and was in the "spirit of compromise" that was a necessary solution to litigation. Mayor Shelton noted that the City has never received specific complaints regarding Cayucos' dissatisfaction with the City's operation of the plant. There was discussion between the Council and Board regarding the specific square footage of the parcels included in the proposal. Mayor Shelton noted that Cayucos presently owns approximately 30,000 square feet, and the proposal as noted would provide over 70,000 square feet, all of which would be in an area of possible plant expansion. Mr. Bressan returned to the meeting and defined the areas of the Speedway property that were covered by lease and areas covered by use permit. Mr. Lyon suggested that this proposal be discussed in a closed session. The meeting was recessed for a closed session of the Cayucos Board. (6:05 p.m.) The Council and Board reconvened at 6:15 p.m. to continue discussion. Mr. Lyon confirmed that the proposal would provide for easement through the property.. There was additional discussion regarding possible plant expansion redesign, and the areas to be.proposed for reclamation facilities. Mr. Bressan stated that there were no plans for reclamation facilities at this time. Mr. LeSage clarified the City's position in regards to the Speedway property litigation, and provided background to the matter. . Terry Schubert stated that Cayucos had a counter-offer to propose to the City, consisting of their original offer to drop litigation and claims for back rent and reimbursement, and accept the City's offer of land ownership but to also include 40% of parcel 5C. MORRO BAY CITY COUNCIL/CA' OS SANITARY DISTRICT SPECIAL JOINT MEETING - OOMBER 22, 1982 Page Three Mr. Lyon noted that to summarize, this was the settlement proposed in paragraph 2 of the agreement, with the exception of parcel 5B. Mayor Shelton, with Council concurrance, stated that they would like to hold any decision regarding this counter-offer, until additional points in the agreement could be covered. Mayor Shelton suggested that the meeting return to the agenda format. Mr. Schubert suggested that the proposed Agreement be reviewed step by step. Mr. Bressan provided estimated figures for page two, regarding the total cost of the project, and the cash necessary up front. Both the Council and the Board agreed that a depreciation schedule would be a sound practice, as the EPA funding is a one time only event, and thereafter the agency's responsibility. Councilmember Lemons voiced his objection to a Joint Powers Agency, and stated that it would only create additional bureauocracy and would too costly. Mr..Lyon explained the reason for this proposal, as presently the JPA provides for an executive committee and this would be an expansion of this committee. Mr. Lyon stated that Morro Bay currently has the primary authority for the day to day operations and maintenance of the plant, and Cayucos wishes to become more involved in these day to day operations. Mr. Lyon felt that this would be one step in this process, and would also serve to prevent future litigation by providing that arbitration be used. Mr. LeSage noted however, that with a two -man Joint Powers Agency, both the City Council and the Cayucos Board would be unable to participate in the day to day operation of the plant. Mr. LeSage also objected to this proposal, and pointed out that this JPA would have the authority to hire and fire and make personnel and contract decisions without con- sultation of either the City of Morro Bay or Cayucos. There was additional discussion regarding the establishment of a JPA. Mr. Schubert stated that it was the goal of the Cayucos Sanitary District to have a more active role in the Wastewater Treatment Plant, to have more input as to design and grant applications, and to have more input into the hiring of employees. Mr. Schubert objected to the current practices of hiring employees, and noted that the employees have a greater allegiance to Morro Bay and most are not aware that a portion of their salaries are paid by Cayucos. Mr. Schubert also noted that the JPA could consist of the entire Council and Board instead of just two members. Mayor Shelton stated that one of his objections to the JPA as proposed, is that it provides for a 50/50.representation. Mayor Shelton stated that this was asking Morro Bay to relinquish 10% of its authority in the operation of the plant. MORRO BAY CITY COUNCIL/CAWS SANITARY DISTRICT SPECIAL JOINT MEETING - OER 22, 1982 PAGE FOUR Mr. LeSage reviewed the objective of the meeting as an attempt to have a new plant built and maintained for future years. Mr. LeSage also noted, that if there were currently no complaints as to how the plant was operated, why try and change the procedure. Mr. LeSage urged an agreement on the remaining issues, and noted that under the current agreement, a majority vote of both boards is required before most decisions can be made. Mr. Lyon stated that Cayucos currently has no say or direct relationship with the employees. Councilmember Zeuschner stated that the Council was aware that past problems and bad communication had existed between Cayucos and Morro Bay, and noted that it was hoped that these problems could be put aside, and a working relationship established. Councilmember Zeuschner also stated that he would like to see Cayucos more directly involved in the plant, and felt that language could be developed to accomplish this. Mr. Ray Gallo suggested that Cayucos identify areas of concern to them and that guidelines for communication be established in the agreement. Director Murray felt that a two -man board would be able to observe events like the gradual deterioration of the plant, more effectively than the current two agencies. At this point, the meeting recessed for a dinner break. (7:03 p.m.) The meeting reconvened at 8:20 p.m. (Councilmember Zeuschner was excused from the remainder of the meeting.) Discussion then resumed on the proposed agreement as submitted by Cayucos. Mr. LeSage suggested that language be added to number 5 to provide for the right of each party to check each other party's respective meters, and to challenge those meters. This was agreed to by Cayucos. Mr. Lyon questioned figures on the common trunk line. Mr. Bressan stated that it was pro -rated based on ownership, as it was a fixed maintenance cost, and not a consumable. Mr. Bressan explained that certain maintenance costs such as chlorine, electricity, natural gas, and other consumables would be paid on a pro- rated amount based on the percentage of flow, while other costs, such as the repair or replacement of lines, the outfall, machinery, would be based on ownership. There was discussion regarding the capacity of the common trunk line. Mr. Lyon suggested that maintenance and repair costs be based on usage. Mr. LeSage again noted that it would be an impossible situation if employees were placed on a year to year contract and had to report to two separate entities for day to day operation. Mr. LeSage noted that the City is more equipped to handle the employment operations. MORRO BAY CITY COUNCIL/CP COS SANITARY DISTRICT SPECIAL JOINT MEETING - CWOBER 22, 1982 • Page Five Mr. LeSage felt that the City should maintain primary responsibility for employement at the Wastewater Treatment Plant, but there would be no reason Cayucos could not participate in this process. Mr. Lyon stated that the one year contract would be more or less a review period and after that time, the most economical and equitable system would be implemented. Mayor Shelton noted that currently, the City Council does not participate in the day to day operation of the plant, that this is handled by the Director of Public Works, and the City Administrator. The Mayor suggested that Cayucos would be kept more informed regarding employment vacancies, oral board interviews, and other employment processes. There were additional comments regarding the possibility of contracting out services for the Wastewater Treatment Plant, as well as the idea of a JPA being directly involved. Mayor Shelton stated that as there are no current problems with the operation of the Plant, there would be no reason for change. Mayor Shelton also noted that any necessary changes could be made by the Board and Council collectively, after an examination of effeciency. Mr. Lyon referred to the South County Sanitation District as an example of a Wastewater Treatment Plant being operated jointly by several agencies. Mr. Lyon stated that although the portions of the plant owned by the different groups are not equal, they each have equal participation in the decision making process. Mr. Schubert felt the flow of information needed to be improved. Mr. LeSage stated that this improvment should be made and included in the agreement. Mr. Lemons noted that the information is available to Cayucos at all times. Mr. Bressan explained the flow of information within the City, and noted that all items are sent to Cayucos as soon as possible. Mr. Schubert stated that language should be added to provide that if at sometime in the future a more economical method could be found, that it be used. Mr. Bressan suggested language that would allow periodic examination and evaluation of operations at the plant, and provide for discussion of alternatives. Mr. Baxter suggested that these reviews take place at budget time (March). Mrs. Herminia Ward felt that the City should not give up control of day to day operations at the.plant, or authorize a JPA. Mrs. Ward suggested that this be left up to the voters to decide. The discussion then turned to the capacity of Cayucos. MORRO BAY CITY COUNCIL/CA OS SANITARY DISTRICT SPECIAL JOINT MEETING 0 . BER 22, 1982 Page Six Mr. Schubert stated that currently Cayucos uses only 23% of its capacity, and is paying for the full 40%. Mr. Schubert felt that Cayucos should only have to pay for the 23%. Mr. Bressan explained that the extra capacity requested by Cayucos, whether used or not, cost additional money to have and maintain. Mr. Bressan noted that in cities where costs are based on usage only, a stand-by charge is also levied for the unused capacity. Mr. Bressan noted that items such as pumps do not wear out any faster with heavier use, in fact the opposit is usually true. Mr. Lyon stated that the 1953 Agreement has all costs based on usage and objected to this change in policy, and noted that there was no justifi- cation for costs based on ownership. There was discussion regarding fixed and variable costs. Mr. LeSage stated that it was grossly unfair of Cayucos to expect Morro Bay to pay for more than it's share strictly because Cayucos was not using all of its capacity. Mayor Shelton suggested that if Cayucos did not want to pay for the total 40% that it allow Morro Bay to use this unneeded capacity, and to pay for it also. It was clarified that Exhibit "E" was design drawing G-3. It was also agreed that with.regard to reclamation, payment for water use encroachment should be available to either party. In paragraph 10, Mr. LeSage suggested language be added to assure that both parties comply with all permits from outside agencies. Mr. LeSage suggested that in paragraph 12, both parties agree to proceed with,the grant., and agree that the plans are satisfactory. Mayor Shelton stated that it was imperative to have direction by Monday, and to have a resolution of problems so that an agreement can be ratified. Councilmember Lemons suggested that a draft be prepared and that the Board and the Council meet again Sunday to further discuss details. Mayor Shelton noted that any delay could jeopardize the grant and that to request an extension would be risky. The meeting was recessed at 11:00 p.m. and reconvened at 11:05 p.m. Mr. Schubert reiterated the two major issues, that of establishing a JPA to monitor the plant, and operation and maintenance costs. Council agreed that if concurrance would be reached on these issues, they could give a tenative agreement to the earlier property settlement. There was additional discussion regarding establishment of a JPA, and Mayor Shelton stated that there were other vehicles for exercising control by both agencies and reiterated the arguments against the JPA. MORRO BAY CITY COUNCIL AUCOS SANITARY DISTRICT • SPECIAL JOINT MEETING - OCTOBER 22, 1982 PAGE SEVEN Mr. Lyons stated that the development of a Joint Powers Agency was still a desire of the Cayucos Board. Mayor Shelton outlined the City's position by stating that currently the plant is owned on a 60/40 basis, and now Cayucos wants to exercise owner- ship control by creation of a separate agency. Cayucos also wants to pay for only 27% while maintaining control of 40% of the plant. The Mayor stated that this was inequitable to Morro Bay, and felt that Cayucos should be willing to compromise. Mr. Schubert noted that the plant did in fact break down, and felt that if a Joint Powers Agency was established it would maintain a tighter control and could "keep on top" of events at the plant. Mr. LeSage suggested that a regular quarterly or monthly meeting be set up with the Cayucos Board and the City Council meeting jointly to discuss policy decision employees, and other information. Mr. LeSage suggested that operation and maintenance costs have a limit of $10,000 place upon them and that those items in excess of this amount be paid based on ownership, while those below this amount would be based on a pro-rata share of flow. Mr. Lyons stated that Cayucos was still concerned about the cost of operation and maintenance. Mr. LeSage stated that if Cayucos agreed, the percentage of ownership could be changed to 70/30 and then the costs would more accurately reflect the actual flow, otherwise it was just not equitable to say that Morro Bay should pay for Cayucos' unused capacity. The meeting was recessed to allow Cayucos to caucus, at 11:47 p.m. The meeting reconvened at 11:55 p.m. Mayor Shelton then summarized the City's position. Mr. Lyons responded for Cayucos and stated that it was agreed to go along with. Morro Bay's position regarding policy formation and decision making, as long as the City would pattern this after the 1953 agreement. Mayor Shelton stated that a compromise method for resolution of previous disagreements might be to allocate 35% of capacity to Cayucos and 65% to Morro Bay and to use this same percentage for future cost and replacement with the percentage of flow being used for determination of maintenance costs. The meeting was recessed so that Cayucos could caucus, at 12:05 a.m. and was reconvened at 12:20 a.m. Mr. Schubert stated that Cayucos would agreed to this proposal, however he questioned whether this would be allowed and how it might affect the grant. Mr. Schubert also questioned whether Cayucos would be reimbursed for funds expended if they were to reduce their capacity. MORRO BAY CITY COUNCIL/CPCOS SANITARY DISTRICT SPECIAL JOINT MEETING TOBER 22, 1982 PAGE Eight Mayor Shelton responded to indicate to Cayucos that the City would be willing to repay the District for any expenditures made for the 5% capacity. The City of Morro Bay indicated that the dollar amount would be approximately $120,000. Cayucos then agreed to the offer at that dollar amount and requested that the City pay 12% interest on the unpaid balance until the total amount was paid. There was discussion regarding the collector, the outfall and treatment plant, and the land settlement. Both Cayucos and Morro Bay agreed that Mr. Lyons would prepare a draft of the agreement, with assistance provided by Mr. LeSage, and the two Boards would meet to review the draft at a meeting to be held on Sunday, October 24, at 4:00 p.m. in the Recreation Hall or the City Hall Conference Room. MOTION: Councilmember Anderson moved to adjourn to Sunday, October 24, 1982, at 4:00 p.m. The motion was seconded by Councilmember Lemons and carried by a unanimous vote. (3-0-2) The meeting was adjourned at 12:50 p.m. RESPECTFULLY SU,BM�I�TT�ED,,/, t - G�� (8II PEG CHANAN DEPUTY CITY CLERK 0 MORRO BAY CITY COUNCIL ADJOURNED MEETING - OCTOBER 12, 1982 SOUTH T-PIER, 2:00 P.M. 0..-NDA NO. _(2:L) Date 1AAction Mayor Shelton convened the meeting at 2:05 p.m. at the South City T-Pier for formal dedication, with the following members present: PRESENT: Eugene R. Shelton Rodger Anderson Bruce Risley Bud Zeuschner ABSENT: John Lemons STAFF: Paul Baxter John Bressan Mayor Councilmember Councilmember Councilmember Councilmember (excused) City Administrator Director of Public Works There were also representatives present from the Harbor Advisory Board, the Fishermen's Association, and the Coast Guard. Mayor Shelton gave an opening statement regarding the history of the T-Pier project and noted that the California Coastal Conservancy and the City of Morro Bay constructed the T-Pier as a joint project at a cost of $277,000. Mayor Shelton noted that the pier will provide long-term, year-round, and transient dockage for the larger commercial vessels, as well as day use and recreational boats on a space available basis. Mayor Shelton introduced Field Representative Barbara Atkinson, who attended in place of Senator Henry Mello, who was unavailable. Mayor Shelton also introduced the Executive Officer of the Coastal Conservancy, Mr.. Joseph Petrillo, who offered his comments regarding the project. Several others directly involved in the project were introduced, including Mr. Russ Whittaker_, the Contractor and Mr. Gene Koblick, President of the Morro Bay Fishermen's Association. Mayor Shelton then adjourned the meeting at 3:00 p.m. RESPECTFULLY f �� EESSP�ECTFULLYSUBMITTED, V Lk 8a44—Z PAUL BAXTER CITY ADMINISTRATOR MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 11, 1982 RECREATION HALL - 7:30 P.M. Mayor Shelton called the meeting to order at 7:30 p.m. ROLL CALL PRESENT: Eugene R. Shelton Rodger J. Anderson John Lemons Bruce Risley Bud Zeuschner STAFF: Paul Baxter Michael T. LeSage John Bressan Murrel Crump Tom Freeman Gary Napper Gere Sibbach Bernie Zerr Peggy Buchanan ABSENT: Al Olson* (arrived at 10:00p.m.) Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Director of Public Works Director of Community Development Recreation Coordinator Assistant to City Administrator Finance Director Fire Chief Deputy City Clerk Police Chief Horace Strong led the Pledge of Allegiance and the Invocation was offered by Reverend Tom Dillard fo the Estero Bay Methodist Church. Ms. Gladys Walton and Mr. Andy Zatko made a brief presentation to Mayor Shelton of a trophy consisting of a bottle of prohibition whiskey and several antique cannon balls. Ms. Walton recited previous donations of Mr. Zatko to the City as well as other agencies. Mayor Shelton thanked Gladys Walton and Mr. Zatko and stated that this type of generosity and giving was an example for others. A. PUBLIC HEARINGS, REPORTS & APPEARANCES V A-1 PROPOSED SEWAGE RATE REVISIONS (Continued from 9/27/82) Mr. Baxter stated that this Public Hearing was for the purpose of discussing revisions to the Sewage Rate Structure and had been advertised and noticed at Council's instruction. Mr. Bressan reviewed the Sewage Rate Structure as proposed by staff, stating that it had been prepared based on the preliminary financial. plan as prepared by Brown and Caldwell as part of the Step II process. Mr. Bressan noted that the rates as proposed would cover only the operation and maintenance of the sewage treatment system, and would not cover any capital recovery. Mr: Bressan stated that the City had further modified the Brown and Caldwell plan to allow for a surcharge structure to encourage conservation by placing a surcharge on customers who use more that 20 billing units (100 cu.ft/unit) in a bi-monthly period. MORRO BAY CITY COUNCIL • Regular Meeting - October 11, 1982 Page. Two • Mr. Bressan then reviewed the tables and reported on costs, categories of sewage use, revenue projections, and percentages of change. Mr. Bressan stated that no attempt had been made. to adjust the projected revenues to reflect a decrease in use due to conservation. Mayor Shelton then opened the Public Hearing. Howard Gaines, 441 Orcas, objected to the proposed rates as inequitable to the homeowner.. Mr. Gaines stated that the motel owners should be paying higher rates and not the residential customers. Mr. Gaines also felt that some adjustment to the rate structure should be made for those customers who use water for watering lawns or gardens. Mr. Gaines also commented that the large percentage of senior citizens in the city were paying more than their fair share. Mr. Gaines then charged Councilmember Anderson with a conflict of interest and stated he should not vote. John Bressan clarified his comments for Mr. Gaines, and noted that the motel owners presently pay 730/100 cu:ft. whereas the average residential customer will only pay 470/100 cu.ft based on a flat rate. Mr. Bressan also noted that the residential sewage rate has nothing to do with the water rate as suggested by Mr. Gaines. Mr. Gaines asked if the rate for motels was based on 100% of the discharge or if an allowance was granted for landscaping. Mr. Bressan stated that the motels were paying for 100% of discharge. Mr. Henry Hopkins, 380 Kings Ave., felt there was a disparity in charging the sewer rate based upon water consumption, because this would be much higher in the summer than winter. James Ross stated that the residents should have to pay for the water they use, regardless of how it is used, and that the sewer rate should not be adjusted for use of water in gardening. Mr. Ross commented that with the current water situation, people should be encouraged to have only native landscaping, and if they choose to use extra water for gardens, or extensive landscaping, then they should have to pay for it. Mayor Shelton asked how many customers would be charged the surgharge. John Bressan stated that only 27% (average) would be charged the extra amount for use of over 2000 cubic feet of water. Don Howard of E1 Morro Trailer Court requested information regarding rates for mobile home parks. John Bressan stated that mobile home parks will pay 59Q/cu. ft. for water use, vs. the 470 paid by residential customers and 730 paid by motels. Dick Ferris stated that on behalf of the Morro Bay Convalescent Hospital he objected to the inequities in.the structure, and felt. that the increases since 1980 were considerable and felt some allowance should be made for the fact that these were elderly and in many cases, severely ill people living at the Hospital. M.ORRO BAY CITY COUNCIL • • Regular Meeting - October 11, 1982 Page.Three MOTION: Councilmember Risley moved that the Public Hearing be closed. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Anderson, Lemons, Risley, Zeuschner, Shelton NOES: None ABSENT: None Councilmember Risley felt that Mr. Bressan's remarks that the rate for single family customers would be 470/100 cu. ft. was inaccurate. Mr. Bressan noted that this rate was based on the figure of exactly 20 billing units, and would be considered the minimum flat rate. Councilmember Risley asked the average use. Mr. Bressan stated that the average use was around 16 units bi-montly. Councilmember Risley noted that the charts and tables were excellently done and prepared however he agreed that there should be some consideration given to the customer who uses water for gardening and stated that the Brown and Caldwell report suggested that the rates should account for water that does not enter the sewer system. Councilmember Risley also noted that there is no apparent urgency to adopt this new structure, as Council had recently vote the scheduled increase to take place in November. Councilmember Risley suggested that staff fine tune the rates, and provide some solution to the problem of using water for gardening or landscaping. Councilmember Anderson asked if the figures as provided were substantiated. John Bressan stated that they were correct. Councilmember Anderson asked if there was a provision to compensate businesses for conservation efforts, or to measure effluent. John Bressan stated that one of the final steps remaining was to provide a Sewer Use Ordinance to be brought before the City Council and the Environmental Protection Agency. Mr. Bressan noted that a provision could be placed in this ordinance that would grant anyone the right to put in an effluent meter and sampling core, and a different rate could be developed. This would be at the discretion of the Council. Councilmember Zeuschner asked if this Ordinance was forthcoming. Mr. Bressan noted that it would be best if it were submitted to EPA simultaneously with the new rate structure. Mayor Shelton asked how the revenue projections were arrived at and if they were accurate. Mr. Bressan explained that the projections were accurate for the averages they were based on, however the projections were for one year at this MORRO BAY CITY COUNCIL Regular Meeting - October 11, 1982 Page Four rate, however this year's revenue would the scheduled $6.00/mo. and the new rate not be the same as that projected. be both at the current $4.00/mo., if implemented, and so would Mr. Sibbach stated that it had been projected to be very close to the amount budgeted. Councilmember Lemons felt this information was very critical and asked what the budget was based on. Mr. Sibbach stated that the budget had projected revenues of $335,000. Councilmember Lemons stated that since there is no particular urgency, this matter be held and more accurate revenue figures prepared by staff. MOTION: Councilmember Risley moved that the Council send the proposed sewage rate structure back to staff to provide additional information regarding revenue projections and alternative billing methods for residential use, and that it be brought back to Council for a continuation of this public hearing on November 8th, 1982. The motion was seconded by Councilmember Zeuschner. Councilmember Lemons noted that any residential customer using less than 2000 cubic feet per billing cycle would not be charged a surcharge. Councilmember Lemons felt that the surcharge would not work if the limit of water use was raised. Councilmember Zeuschner felt the proposed rates were more equitable, and would encourage conservation. Councilmember Anderson stated that he agreed with the concept of having to pay for the extra water it took to have a garden or extensive land- scaping. Mayor Shelton commented that he felt a system should be devised so that those residents with gardens during the summer would not be penalized by high rates. Mr. LeSage responded to Howard Gaines' earlier charge that Councilmember Anderson would have a conflict of interest in voting on this matter because of a greater financial impact of the rates. Mr. LeSage stated that this would matter could pose a conflict of interest to all five of the Councilmembers, as they are all customers of the sewer service. However, it is a City-wide matter, and would not be appropriate to say that only Councilmember Anderson would have such a conflict. There was a vote on Councilmember Risley's motion (above): The motion carried -by a unanimous vote of Council. (5-0) MORRO BAY CITY COUNCIL Regular Meeting - October 11, 1982 Page Five A-2 WATER ALLOCATION PROGRAM IMPLEMENTATION PROCEDURES/GUIDELINES (cont. 9/27) Paul Baxter stated that at Council's request, staff had prepared a detailed day-to-day operating procedures for allocation of water equivalencies. Mr. Crump reviewed the operating procedures and guidelines, and stated that a lottery would be held after a four week initial application period to establish priority among these first applications. Thereafter, applications will be given priority based upon the time of submittal. Mr. Crump explained that there will be a published notice of intent to receive applications, and that no priority would be assigned to the applications received within the initial four week period. Mr. Crump provided Council with clarification regarding the residential priorities and explained that although the low -moderate income housing was a higher priority, this housing would have to meet income guidelines pursuant to the Housing Authority eligibility requirements. Mr. Crump reviewed these requirements and stated that the project would almost exclusively have to be Federally subsidized, and explained to Council that this type of project is practically non-existant. Mr. Crump noted that for all practical purposes, single family owner -builder residential would have highest priority. Mr. Crump then detailed the time schedule for awarding of water equivalencies during 1982-83, and explained the monitoring and reporting requirements, and recommended that Council adopt the operating procedures and guidelines as submitted. Mayor Shelton opened the Public Hearing. Mr. Dewitt Demming stated that he liked the sound of the guidelines and felt they would be equitable. Bob Lane felt that a closer study of the low -moderate income eligibility requirements should be made so that these.projects don't preempt single family residential. Mr. Crump explained the current income requirements and stated that it would be very unlikely that any project would be proposed that would qualify unless it were Federally subsidized. MOTION: Councilmember Zeuschner moved that the Public Hearing be closed,. The motion was seconded by Councilmember Risley and carried unanimously. (5-0) Councilmember Risley stated that as he understood the guidelines, it would be quite possible.for a single family owner builder to be unable to build because of the multiple family, low -moderate income housing. Mr. Crump reiterated that this type of project would not be likely and that unless.it met the income guidelines as set by the Housing Authority it would not quality as low -moderate income. Councilmember Risley stated that this would be possible however. MORRO BAY CITY Regular Meeting Page Six COUNCIL - October 11, 1982 Mr. Crump noted that only if the project is truly low -moderate income. Councilmember Lemons felt that there was no question about single family owner builders being at the top of the list, and agreed that the type of project intended by the words "low -moderate income" would not be likely. Councilmember Zeuschner clarified that a family of could only earn $16,000/year and would not qualify for more than an approximately $35,000 loan. Councilmember Zeuschner also felt this was not a probable situation. Councilmember Risley asked the status of the letters to be sent to those persons with long-standing water equivalencies. Mr. Crump stated that the letters had been sent and that any person who would not be using their equivalencies would notify staff. Any unused water equivalencies would be allocated as per the Coastal Act. There was additional discussion regarding future allocation of water equivalencies. Councilmember Risley suggested that the lottery drawing be conducted by the Mayor to assure the public of fairness. Mayor Shelton agreed with this idea. MOTION: Councilmember Zeuschner moved that Council adopt the Resolution adopting additional operating procedures and guidelines for the 1982-83 Water Equivalency Program as submitted. Councilmember Lemons seconded the motion and it was carried by the following roll call vote: AYES: Zeuschner, Lemons, Anderson, Risley, Shelton NOES: None ABSENT: None Council recessed briefly at 9:00 p.m. and reconvened at 9:12 p.m. A-3 ABATEMENT HEARING, 2870 CEDAR AND 2865 DOGWOOD, LANNY MCKAY, OWNER Mr. Baxter informed Council that Mr. McKay had accomplished the abatement of the structures indicated and recommended that the abatement hearing be cancelled. Mayor Shelton, with Council concurrance, cancelled the abatement hearings for 2870 Cedar and 2865 Dogwood. A-4 ADDITION OF SECTION 7.08.310 AND AMENDMENT OF SECTION 7.08.020 OF TITLE VII'TO THE MORRO BAY MUNICIPAL CODE ('1st reading) RE: PROHIBITION OF DOGS ON 'GROUNDS OF PUBLIC'PARKS Mr. Baxter reviewed the proposed Ordinance amendment and stated that staff had attempted to address a growing problem in the City's parks by prohibiting' dogs in these parks. Mr. Baxter noted that the school district had recently MORRO BAY CITY COUNCIL • ` Regular Meeting - October 11, 1982 Page Seven adopted a similar ruling of not allowing dogs on the school grounds. Mr. Baxter noted that the dog nuisance in City parks has been increasing and also explained that this ordinance would not affect uses such as dog obediance classes or shows, where a use permit is called for. Mayor Shelton opened the Public Hearing. There were no comments or questions by the public. MOTION: Councilmember Anderson moved that the Public Hearing be closed. The motion was seconded by Councilmember Risley and carried unanimously. Councilmember Lemons asked if this Ordinance was taken from the Vehicle Code. Mr. Bressan stated that it was from the Vehicle Code. MOTION: Councilmember Risley moved that this Ordinance be read by title and number only and that it constitute a first reading. The motion was seconded by Councilmember Anderson and carried by the following roll call vote: AYES: Risley, Anderson, Lemons, Zeuschner, Shelton NOES: None ABSENT: None Paul Baxter read: An Ordinance Adding Section 7.08.310 and Amending Section 7.08.020 of Title VII to the Morro Bay Municipal Code". Councilmember Lemons asked who would be responsible for enforcement of this Ordinance. Mr. Baxter explained that the County Animal Regulation Department would be the enforcement agency, however the Morro Bay Police Department could also be called upon when the Animal Control Department was unavailable. Councilmember Zeuschner asked if this Ordinance would be posted. Paul Baxter stated that appropriate notices will be posted in all parks. MOTION: Councilmember Risley moved that Council adopt this Ordinance as a first reading. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Risley, Zeuschner, Anderson, Lemons, Shelton NOES: None ABSENT: None Iwa IENDS'OF THE LIBRARY FOR Mr. Baxter reviewed a letter from Morro Bay Friends of the Library to Supervisor Steve MacElvaine, in which the Friends request the support of the County and City of Morro Bay. ION MORRO BAY CITY Regular Meeting Page Eight COUNCIL - October 11, 1982 Mr. Baxter stated that Mrs. Jane Bailey and Mr. John Kim were present to speak before the Council. Jane Bailey reviewed the request by the Friends of the Library and stated that they are asking that the City contribute several items to the project, including site preparation, parking, waiving of permit fees and a lease for the library site. Mr. Kim stated that as a community project they hope to receive support from the City as well as the County and the citizens of the area. Mr. Kim provided additional detail as to the requests by the Friends and noted that it was important to have a Master Plan for the City property developed before a site was designated, as the life span of the library would be approximately 50 years and the site selection should reflect this. Mayor Shelton opened the Public Hearing. Dorotha Deutsch asked whether this will continue to be a County library facility or will it become a City library or one run by the Friends. Mrs. Deutsch also questioned what part the County will play in the financing since it currently was a County facility. Jane Bailey explained that the Friends are currently investigating the County's participation and working on an arrangement in regard to fund raising and financial support. Mr. Baxter noted that in the past the County has participated in construction of new library facilities, and staff would contact the County if so directed. Councilmember Zeuschner stated it was his understanding that the County would participate on a 50% basis for new facilities. MOTION: Councilmember Zeuschner moved that the Public Hearing be closed. The motion was seconded by Councilmember Lemons and carried unanimously. (5-0) Councilmember Anderson noted that in talking with Mr. Kim the question of future requests by other non-profit groups for use of City property had occured to him as a possible problem. Mr. Baxter did.not feel this would be a precedent setting occurance if Council specifically stated this. Mayor Shelton recommended that the Friends of the Library's request be studied by staff for additional recommendations to Council, and that staff also continue work on developing a Master Plan for City property. Mr. LeSage noted that if a lease is developed, the maximum term possible would be 50 years. Mr. LeSage also reviewed other methods of construction on City property, including development of a special fund of tax deductible donations for a specific purpose such as the construction of a new library. MORRO BAY CITY Regular Meeting Page Nine COUNCIL - October 11, 1982 Councilmember Zeuschner asked Mr. LeSage about the arrangements made with the Senior Citizens. Mayor Shelton noted that the property would be owned by the City and the project developed by the Seniors. Mr. LeSage stated that public bid might be required under these circumstances. Councilmember Risley did not feel that asking staff to study the proposal was fulfilling the request by the Friends of Library. Councilmember Risley suggested that Council state their approval of the proposal and give support to the group. Councilmember Risley also suggested that staff be encouraged to bring back a favorable report. Mayor Shelton did not think it would be appropriate to direct staff on what their report should reflect, but rather that the proposal be studied and reviewed objectively. Councilmember Lemons stated he would like to see negotiations with the County and felt the County might not want to contribute unless early participation is sought. Councilmember Zeuschner agreed that County contribution should be requested now and hoped that staff would come back with their recommendations at the earliest possible date. Jane Bailey noted that the County had been contacted through Supervisor MacElvaine and stated she felt a.response would be forthcoming. MOTION: Councilmember Zeuschner moved that Council, as a policy statement, support the efforts of the Friends of the Library and direct the City Administrator and staff to take the necessary steps to bring back a recommendation to Council (including contact with,the County) at the earliest possible date. The motion was seconded by Councilmember Anderson and carried unanimously. (5-0) B. "UNFINISHED BUSINESS B-1 APPROVAL OF'LEASE'SITE'IMPROVEMENTS, SITE NO. 89, RALPH GUNTHER (Cont.9/27)] Mr. Baxter noted that the attached letter from Kim Gunther, son of Ralph Gunther,.was a request for Council authorization and approval as landlord to improvements to Lease Site No.,.89. Mr. Baxter informed Council that the Planning Commission had approved the Specific Plans for these improve- ments., with conditions as noted in the staff report. Mr. Baxter recommended that Council approve these Lease Site improvments, contingent upon appropriate language to be provided by the City Attorney regarding amendment to the agreement. Mr. Baxter noted this was a City 50-year lease. MORRO BAY CITY COUNCIL Regular Meeting - October 11, 1982 Page Ten Mr. Kim Gunther was present and explained that the majority of the area would be reserved for waterfront usage with small areas of retail. Councilmember Risley asked if any of these areas were subleased. Mr. Gunther stated that currently none were subleased, and most likely would be subleased only to himself. Mr. Baxter noted that any sub -lease would require prior Council approval. Mayor Shelton asked if the permitted uses would be included in the amended agreement. Mr. Baxter explained that the request contained uses already permitted in the Lease. MOTION: Councilmember Zeuschner moved that the Council approve the lease site improvements to Lease Site 89, as submitted, contingent upon appropriate language amendments to the lease site agreement as provided by the City Attorney. The motion was seconded by Councilmember Lemons, and carried by the following roll call vote: AYES: Zeuschner, Lemons, Risley, Shelton NOES: None ABSENT: None ABSTAIN: Anderson B-2 ORDINANCE AMENDING 100 AND SECTION 17.32.060 nA nR-R2 ('2NT) RRATITNr) Mr. Baxter stated that this was the second reading of an Ordinance which would broaden the interpretation of permitted uses in R-4 zones. MOTION: Councilmember Zeuschner moved that this Ordinance be read by title and number only and that it constitute the second reading. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: AYES: Zeuschner, Lemons, Anderson, Risley, Shelton NOES: None ABSENT: None Paul Baxter read "An Ordinance Amending Section 3 of Ordinance 100 and Section 17.32.060 of the Morro Bay Municipal Code". MOTION: Councilmember Zeuschner moved that the Council adopt this Ordinance as a final reading. The motion was seconded by Councilmember Risley and carried by the following roll call vote: AYES: Zeuschner, Risley, Anderson, Lemons, Shelton NOES: None ABSENT: None MORRO BAY CITY COUNCIL Regular Meeting - October Page Eleven 11, 1982 B-3 ORDINANCE AMENDING ORDINANCE 65 SUBSECTION 2 and ZONING DISTRICT Mr. Baxter informed Council that this was the second reading of the Ordinance which would amend the General Plan Land Use Element changing the designation from Service Commercial to Community Commercial for property located at 213 Beach Street. MOTION: Councilmember Risley moved that this Ordinance be read by title and number only and that it constitute the second reading. The motion was seconded by Councilmember Lemons and carried by the following roll call 'vote: AYES: Risley, Lemons, Anderson, Zeuschner, Shelton NOES: None ABSENT: None Paul Baxter read "An Ordinance Amending Ordinance, 65, Subsection 2, and Zoning District as Designated on the Zoning Map from C-2, S-9 to C-1, for Property Described -as Parcel A, portion of Block 62 Bakersfield Colony Tract". MOTION: Councilmember Risley moved that Council adopt this Ordinance as a final reading. The motion was seconded by Councilmember Lemons, and carried by the following roll call vote: AYES: Risley, Lemons, Anderson, Zeuschner, Shelton NOES: None ABSENT: None C. NEW BUSINESS C-1 T-PIER DEDICATION, OCTOBER 12, 1982; 2:00 P.M. Mr. Baxter announced that the T-Pier Dedication Ceremoney, to be held in conjunction with the California Conservancy and Senator Mello's office, would be held at 2:00 p..m. on Tuesday, October 12, 1982. Mr. Baxter also noted that should the majority of the Council wish to attend, this meeting should be adjourned to that time and place. Council agreed that adjournment should be to the T-Pier on October 12 at 2:00 p.m. at the close of tonights meeting. Councilmember Lemons asked who had been invited. Mr. Baxter noted that Senator Maddy, Assemblywoman Hallet, Senator Mello, Coastal Conservancy Board members, Harbor Advisory Board members, the Recreation Commission, Supervisor Steve MacElvaine, the Fishermen's Association, and the Chamber of Commerce were among those invited. M•ORRO BAY CITY COUNCIL • • Regular Meeting - October 11, 1982 Page Twelve Councilmember Lemons felt that former Mayor Warren Dorn and former Councilpersons Deutsch and Ward should be invited, as they were instrumental in the City receiving the Coastal Conservancy grant for this project. Councilmember Lemons also noted that there were a number of people who had been contacted by former Mayor Warren Dorn who had been involved in the T-Pier project who should receive letters of appreciation. MOTION: Councilmember Lemons moved that the Council formally invite former Mayor Warren Dorn, and former Councilwomen Dorotha Deutsch and Herminia Ward to the T-Pier dedication ceremony on October 12, at 2:00 p.m. The motion was seconded by Mayor Shelton and carried unanimously. (5-0) Councilmember Lemons noted he would supply staff with a list of names to receive letters of appreciation. Mr. Sibbach also noted that the City had just received a check for $266,000 to pay for the T-Pier project. C-2 CONSIDERATION 'OF'ARCHITECTURAL SERVICES FOR PUBLIC IMPROVMENTS IN MnPPn RAV Mr. Baxter informed Council that because of recent changes to facilities brought about by the expansion of the Senior Citizens Center at the Recreation Building, and the proposal received from the Friends of the Library, Mr. Jim Maul has been requested to prepare an estimate for Council's review of work programming he would suggest to be performed to address the recent demands placed on City property in the City Hall area. Mr. Baxter stated that a revised estimate had been recently prepared to encompass a smaller scope of work that available funds would cover. Mr. Jim Maul noted that his proposal would address two areas; the site plan for a civic center area to include the location.of buildings and parking, streets and trees; and the layout of the civic center plan. Mr. Maul noted that to do an accurate site plan, an idea of the number of square feet to be reserved is necessary, however a site plant using past information can also be developed. Mr. Maul noted that this proposal does not address the possibility of using the Morro Elementary School facilities for City administration purposes. The use of the elementary school facility would depend upon the state of illrepair of the structure, cost to bring the structure up to code, the planning of the facility to determine function, and negotiations with the school district to determine initial outlay needed. Mr. Maul reiterated that the proposal as submitted does not assume use of the elemenatry school. Mayor Shelton asked if past work done by Mr. Maul could still be utilized. Mr. Maul stated that the studies are still valid and will only have to be updated. The estimated price includes this. MORRO BAY CITY COUNCIL • • Regular Meeting - October 11, 1982 Page Thirteen Councilmember Anderson questioned whether or not the school facility will be available. Mr. Maul noted that currently, negotiations could only involve the older facility. Council then discussed the possibility of utilizing the older portion of the elementary school facility. Councilmember Risley asked if the primary intent of the submitted plan was only for currently owned City property. Mr. Baxter concurred, and noted that the proposed use of the elementary school had been brought up verbally. Mr. Baxter stated that there is a need to insure that property will be available should funds ever become available for new Police and Fire facilities and noted that Council has already made a commitment to the Senior Citizens and have given their support to the proposal for a new library facility on City property. Councilmember Risley asked if Mr. Maul will provide several site plans for review rather than just one idea. Mr. Maul concurred that several ideas will be presented. Councilmember Zeuschner felt that the proposal to use the elementary school should be explored further and suggested that Mr. Maul be authorized on an hourly basis to arrange negotiations and a tour of the building. Mr. Maul noted that a site plan would still be necessary, but this proposal could be started first. MOTION: Councilmember Zeuschner moved that Council request the Mayor to appoint a committee to contact the Coastal Unified School District regarding plans and intent for the use of the Morro Elementary School and authorize payment for services for those outside of City personnel. The motion was seconded by Councilmember Anderson and carried unanimously. (5-0) Mayor.Shelton appointed Councilmember Zeuschner and Councilmember Lemons to serve on the Committee along with Chief Zerr, John Bressan, Jim Maul and Paul Baxter. D. CONSENT CALENDAR Mr. Baxter reviewed the following items on the Consent Calendar. D-1 "CITY COUNCIL MINUTES'FROM REGULAR MEETING OF SEPTEMBER 27. 1982 Mr. Baxter recommended that Council approve the minutes of the meeting of September 27, 1982, as submitted. MORRO BAY CITY COUNCIL • • Regular Meeting - October 11, 1982 Page Fourteen D-2 CHAMBER OF COMMERCE EXPENDITURE 'REPORT 'FOR 'SEPTEMBER 1982 Mr. Baxter recommended that the Council approve the Chamber of Commerce Expenditure Report in the amount.of $1.,093..31, as submitted. _ D-3 'CONTINGENCY 'TRANSFERS 'FOR GAINES'SUITE AND ROANDOAK PURCHASE Mr. Baxter explained that due to recent approvals of the purchase of the water rights from Roandoak of God and the court adjudication of the. Gaines suite,.certain costs have accumulated for which no appropriations have been made. Mr. Baxter recommended that Council approve.transfers from operating contingencies in the amount of $4.,600 from General Fund contingencies to the City Attorney and $20,000 from Water Fund Contingencies to Water Division. D-4' AWARD OF BID FOR MAINTENANCE ASPHALT 'SUPPLY Mr. Baxter recommended that Council award the bid for maintenance asphalt supply to Union Asphalt Company of. Santa Maria, California. D-5AWARD OF'BID'NO. PW=82=278 FOR PURCHASE'OF'REPLACEMENT'VEHICLE Mr. Baxter recommended that Council award bid No. PW-82-278 to Kimball Motors in the amount of $6,872.90 and that the 1968 Chevrolet, vehicle number 0045 be declared surplus to City needs and utilized for trade-in purposes. D-6' APPROVAL OF LEASE FOR U.S. COAST 'GUARD FACILITY AT'EMBARCADERO'HARBOR Mr. Baxter recommended that Council approve the lease renewal for the Coast Guard facilities at Morro Bay Harbor and authorize the Mayor to sign on behalf of the City. MOTION: Councilmember Lemons moved that the Consent Calendar be approved as submitted. The motion was seconded by.Councilmember Risley and was carried by the following roll call.vote: AYES: Lemons, Risley, Anderson, Zeuschner, Shelton NOES: None ABSENT: None E. INDIVIDUAL DETERMINATION AND/OR ACTION E-1' City Council Councilmember Zeuschner stated that at an earlier meeting, when the Embarcadero Lease Site re -assessments had been discussed, a motion had been made to allcry a 6-month repayment period at no interest. Councilmember Zeuschner felt that this motion had been misinterpreted to allow an additional 6-month period at 1% per month interest when this was not Council's intent. Mayor Shelton concurred with Councilmember Zeuschner's understanding of the motion. MORRO'BAY CITY COUNCIL • • Regular Meeting - October 11, 1982 Page Fifteen Paul Baxter stated that if staff had misinterpreted Council's motion, Council should redirect staff. MOTION: Councilmember Zeuschner moved that Council instruct staff to renotify those leaseholders involved in the Embarcadero re -assessments, that their bills are due and payable at the close of the 6-month grace period. The motion was seconded by Councilmember Risley and carried by the following roll call vote: AYES: Zeuschner, Risley, Lemons, Shelton NOES: None ABSENT: None ABSTAIN: Anderson Councilmember Lemons asked Mr. LeSage if there would be a legal problem with conflicting letters. Mr. LeSage stated there would not be. Mr. LeSage noted that the extension should be tied to the concurrence that the leaseholder intends to pay. Councilmember Zeuschner, on another matter, announced that the City had received offical notification of the award of the 8 million dollar grant to reconstruct the sewer treatment plant. E-2 City Attorney No items. E-3 Citv Administrator Paul Baxter announced that Mr. Steve Wolter had been hired as the new Recreation Director and would start on October 27, 1982. Mr. Baxter reviewed Mr. Wolter's background and qualifications for the position. Mr. Baxter also announced that Police Chief Al Olson had resigned to accept employment as the Chief of Police with the City of Pacifica. Mr. Baxter expressed his regret at the loss of Chief Olson. Mr. Baxter informed Council that the City had received notification Friday of the award of the grant from EPA for the sewer treatment plant, and explained that this grant must be formally accepted and returned no later than October 29th. Mr. Baxter noted that a meeting had been held with the Cayucos Sanitary District and this information had been conveyed to them. Mr. Baxter stated that Council could act on this matter tonight or wait until the meeting of the 25th. MOTION: Councilmember Zeuschner moved that Council accept the grant for the reconstruction of the Sewer Treatment Plant and authorize Mr. John Bressan to sign the necessary documents on behalf of the City. The motion was seconded by Councilmember Risley and carried unanimously. (5-0) MORRO•BAY CITY Regular Meeting Page Sixteen COUNCIL • - October 11, 1982 Mayor Shelton stated that the City had been working with Cayucos and informing them of all developments, and noted that they would be informed that it had been timely to process the grant. Mr. Baxter requested a brief Closed Session to discuss litigation with the Cayucos Sanitary District, and San Luis Ambulance. MOTION: Councilmember Lemons moved that the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Risley and carried unanimously. The meeting was adjourned to Closed Session at 10:26 p.m. and reconvened to Open Session at 10:45 p.m. The City Administrator then discussed with Council their position on allowing the renewal of management contracts with the Department Heads. MOTION: Councilmember Lemons moved that the Council authorize the City Administrator to exeoute new management contracts at the same benefit levels as presently offered. The motion was seconded by Councilmember Anderson and carried unanimously. (5-0) MOTION: Councilmember Zeuschner moved that the meeting be adjourned to 2:00 p.m., October 12, 1982, at the South City T-Pier for dedication ceremonies. The motion was seconded by Councilmember Risley and carried unanimously. The meeting was adjourned at 10:47 p.m. RESPECTFULLY SUBMITTED, 7 PEGftCHANAN DEPUTY CITY CLERK sq.35y qA;EA. Cod..e, J MORRO BAY CITY COUNCIL REGULAR MEETING - SEPTEMBE*7, RECREATION HALL - 7:30 P.M. 1982 CALL TO ORDER PLEDGE OF ALLEGIANCE INVOCATION: JIM KENNEMUR, FIRST CHRISTIAN CHURCH A. PUBLIC HEARINGS, REPORTS & APPEARANCES A-1 Case No. 10-82, Robert Gray, applicant. Request for approval of a Conditional Use Permit "General Plan" to allow replacement of a motel room with an art gallery for 561 Embarcadero A-2 Case No. ZOA 06-82, Amendment of Municipal Code (Zoning Ordinance) Section 17.32.070, to include general business offices under the items requiring a Conditional Use Permit in the R-4 Zone A-3 Slide presentation of the Morro Bay/Cayucos Wastewater Treatment Plant Facilities Outfall Construction B. UNFINISHED BUSINESS B-1 Approval of Lease Site improvements for Lease Site No. 89, Ralph Gunther B-2 Recommendation from Planning Commission for an Amendment to the General Plan Land Use Element changing the designation from Service Commercial to Community Commercial and consideration of change of zone from C-2, S-9 to C-1 for property located at 213 Beach Street (Case No. GPA 01-82 and CZ 02-82) (Continued from 9/13/82) d B-3 Report from the Public Works Director regarding sewer fee rate structure (continued from 9/13/82) B-4 Update report from California -West regarding Embarcadero Lease Sites B-5 Consideration of expansion of Senior Citizens facility C. NEW BUSINESS C-1 Planning Commission recommendation for a Water Allocation Program C-2 Changes in renter's water deposit and reconnection fees C-3 Proposed repairs to Bulkhead on Golden Tee Marina lease site C-4 Approval of Amendment No. 6 to Master Agreement with Brown and Caldwell C-5 Request for Lease Site Adjustment by George Leage D. CONSENT CALENDAR D-1 City Council minutes of adjourned meeting of September 13, 1982, and regular meeting of September 13, 1982 D-2 Re -appropriation of encumbrances at 6/30/82 D-3 Budget and Financial Reports for year ended June 30, 1982 D-4 Declaration of October 3 through 9 as Fire Prevention Week D-5 City of Morro Bay Expenditure Report for August, 1982 D-6 Resolution approving grant application for funds to develop ordinances and coastal permit procedures . D-7 Resolution commending Mary Sanders for her services upon employment resignation D-8 Declaration of surplus City and Police property. E. INDIVIDUAL DETERMINATION AND/OR ACTION E-1 CITY ATTORNEY E-2 CITY COUNCIL C-3 CITY ADMINISTRATOR /pb MORRO BAY CITY COUNCIL • AON,PD/A,NO. REGULAR MEETING - SEPTEMBER 27, 1982 Date 101 Action RECREATION HALL - 7:30 P.M. Mayor Shelton called the meeting to order at 7:30 p.m. ROLL CALL: PRESENT: Eugene R. Shelton Rodger Anderson John Lemons Bruce Risley Bud Zeuschner STAFF: Paul Baxter Michael T. LeSage John Bressan Murrel Crump Gary Napper Al Olson Mary Sanders Gere Sibbach Bernie Zerr Peggy Buchanan Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Director of Public Works Director of Community Development Assistant to City Administrator Police Chief Recreation Director Finance Director Fire Chief Deputy City Clerk Mayor Shelton announced that he had several unagendized presentations and comments to make prior to the first Public Hearing. Mayor Shelton presented a Resolution to Mary Sanders, Recreation Director, commending her upon her resignation. Mayor Shelton read the Resolution to the public, and Mary received a warm thank you from the Council and public. Mary stated her appreciation for the cooperation received from the Council, the community and other City staff, and urged continued cooperation to work towards the common goals of the City. Mayor Shelton publicly recognized the article on the work of local artist Dorothy Cutter as published in the national magazine the American Artist. Mayor Shelton noted that it was a tribute to the City as well as to the fine work of Ms. Cutter. A. PUBLIC HEARINGS, REPORTS'& APPEARANCES A-1 CASE NO. 10-82, ROBERT GRAY, APPLICANT. REQUEST FOR APPROVAL OF A CONDITIONAL USE'PERMIT "GENERAL PLAN" TO ALLOW REPLACEMENT OF A MO Mr. Baxter reviewed for Council's information the Planning Commission's recommendation regarding this matter. Mr. Baxter noted that this request was for approval of replacement of a motel room with an art gallery at 561 Embarcadero_. The Planning Commission had, at their meeting of September 7, recommended approval of the Conditional Use Permit. Paul Baxter stated that one area of policy consideration was whether the use was "coastal dependent" and had priority. Mr. Baxter reported that the Planning Commission, in their recommendation had felt that as a tourist serving use it had this same priority. MORRO BAY CITY COUNCIL • • Regular Meeting - September 27, 1982 Page Two Mr. Robert Gray, owner of the motel, stated that the unit proposed for conversion to an art gallery faced directly onto the Embarcadero, and was for all practical purposes unrentable as a motel unit. Mr. Gray explained that both he and his wife were artists and wished to use the room for a gallery and studio, and felt this would be an excellent location and would be an asset to the Embarcadero. Mayor Shelton opened the hearing to the public. There were no comments. MOTION: Councilmember Lemons moved that the Public Hearing be closed. The motion was seconded by Councilmember Zeuschner and was carried unanimously. (5-0) MOTION: Councilmember Zeuschner moved that Council accept and approve the Planning Commission's recommendation for approval of the Conditional Use Permit, Case No. 10-82, for Robert Gray, for change of use from motel room to art gallery. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: AYES: Zeuschner, Lemons, Risley, Shelton NOES: None ABSENT: None ABSTAIN: Anderson Councilmember Risley noted his concern regarding the Planning Director's report which stated that adequate parking was not available in the immediate area, and also the lack of a guide of desired uses along the Embarcadero and felt a plan should be developed. A-2 CASE NO. ZOA 06-82. AMENDMENT OF MUNICIPAL CODE (ZONING ORDINANCE Paul Baxter reveiwed the history of this item, and explained that Council had considered this matter earlier when Mr. Jim Maul had requested a broad interpretation of this zoning until a zoning text amendment had been prepared. Mr. Baxter stated that this is such an amendment and recommended that Council receive public testimony prior to any action. Mayor Shelton opened the Public Hearing. There were no public comments. MOTION: Councilmember Zeuschner moved that the Public Hearing be closed. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: AYES: Zeuschner, Lemons, Anderson, Risley, Shelton NOES: None ABSENT: None MORRO BAY CITY COUNCIL Regular Meeting - September 27, 1982 Page Three MOTION: Councilmember Lemons moved that this Ordinance be read by title and number only. The motion was seconded by Councilmember Risley and carried unanimously. (5-0) Mr. Baxter read, "An Ordinance Amending Section 3 of Ordinance 100 and Section 17.32.060 of the Morro Bay Municipal Code, Case No. ZOA 06-82." MOTION: Councilmember Lemons moved that this Ordinance be adopted as a first reading. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Lemons, Zeuschner, Anderson, Risley, Shelton NOES: None ABSENT: None A-3 SLIDE PRESENTATION OF THE MORRO BAY Mr. John Bressan provided Council with a brief overview of the Outfall Construction project, and stated that it was the largest single construction project ever undertaken by the City. Mr. Bressan compared the new outfall to the old outfall and stated that not only was it larger, it discharged at a greater depth with greater diffusion. Mr. Bressan then presented a brief slide show on the construction from start to finish. Mayor Shelton and the Council congratulated John on the project, and the Mayor asked if there were any questions from the audience. Councilmember Lemons noted that this project had been jointly financed by Morro Bay and Cayucos on a 60:40 basis. Mary Phillips asked if the completion of the outfall will bring the plant into compliance. Mr. Bressan clarified for Mrs. Phillips that the Outfall allows the City to discharge closer to the level necessary to meet secondary treatment. Mr. Bressan stated that the plant will need additional upgrading to meet current secondary standards. Mr. Bressan noted that in the event of another breakdown, the new outfall lessens the consequences by allowing greater diffusion at an increased distance from shore. B. UNFINISHED BUSINESS B-1 APPROVAL OF LEASE SITE IMPROVEMENTS FOR LEASE SITE NO. 89. RALPH GUNTHER Mr. Baxter stated that Mr. Gunther had not been able to submit all of the information required for Council consideration, and recommended that this item be continued until October llth. Council concurred and the matter was continued. MORRO BAY CITY COUNCIL • • Regular Meeting - September 27, 1982 Page Four M, Paul Baxter reviewed the Planning Commission recommendation regarding the Land Use Plan change and zone change. Mr. Crump noted that the Planning Commission is in the process of developing a Tourist Commercial zone designation and recommended that Council postpone action on this item until this designation is completed, and then consider action on this area as well as surrounding areas under this new designation. Mayor Shelton asked the impact on the matter if no action were taken at this time. Murrel Crump stated that the Planning Commission would make their recommendation regarding the Tourist Commercial zone designation in process. Mr. Crump discussed the various results of designating this area as C-1 and then.later re -designating as Tourist Commercial. Steve Simas, owner of the property located at 213 Beach Street, stated that this area was proposed to be changed to C-1, and he urged Council to follow through with the Planning Commission recommendation. There was additional discussion with staff and Council regarding the 1977 General Plan document and the current amount of available C-2 land. Councilmember Zeuschner asked if there would be any problem with the Coastal Commission if this zone.change were done twice. Councilmember Lemons stated that he didn't see a problem with the Coastal Commission, and felt that this area should definitely.not be in a C-2 zone. Councilmember Anderson recalled Mr. Joe Giannini's comments at the last meeting regarding the surrounding areas of C-2 zoning, but noted that this property, unlike the others, faces Beach Street which is a heavily trafficed route to the Embarcadero. Councilmember Risley asked when the other areas would be considered for this zone change.to Tourist Commercial. Mr. Crump stated that the second phase, from Scott Street east to Market, will be considered by the Planning Commission at their next meeting. Mayor Shelton asked if this proposed Tourist Commercial would be consistent with the LCP and Land Use Plan. MORRO BAY CITY COUNCIL Regular Meeting - September 27, 1982 Page Five Mr. Crump noted that a decision should be made regarding orientation to a visitor serving designation or a C-1 designation. Councilmember Risley felt the entire area should be considered rather than spot zoning and felt a postponement of the matter would be in order. Mr. Crump agreed that it would be more efficient to consider the entire area at once. Councilmember Lemons asked Mr. Crump about the change from C-1 to a Tourist zoning and the Coastal Commission's reaction. Mr. Crump stated that there should be a compelling reason to change the zone designation. MOTION: Councilmember Lemons moved that the Council approve the Amendment to the General Plan Use Element and designation of the property located at 213 Beach Street as C-1 (Community Commercial) and adopt the Resolution as recommended and that the Ordinance be read by title and number only. The motion was seconded by Councilmember Anderson. There was discussion with Mr. LeSage, Mr. Crump and Council regarding the Ordinance for this matter. MOTION: Councilmember Lemons moved to table this motion until further on in the meeting. The motion was seconded by Councilmember Anderson and carried unanimously. (5-0) B-3 REPORT FROM THE PUBLIC WORKS DI STRUCTURE (continued from 9/13/ John Bressan provided Council with a review of the proposed sewer fee rate structure which was prepared and submitted utilizing the preliminary financial plan developed by Brown and Caldwell. Mr. Bressan explained the proposal, and noted that the rates would cover only operational and maintenance costs and would not address capital recovery costs which would have to be included at some future date. Mr. Bressan reviewed the proposed rates, the fixed fee as established by Brown and Caldwell, and the surcharge for heavy users. He explained the differences in rates and types of use and provided Council with averages for most categories. Councilmember Lemons felt that this matter should be set for Public Hearing prior to any Council decision. MOTION: Councilmember Lemons moved that Council set these proposed sewer fee rates for Public Hearing at the October 11, 1982 City Council meeting. The motion was seconded by Councilmember Risley. Mayor Shelton asked the immediacy of this Public Hearing. MORRO BAY CITY COUNCIL . • Regular Meeting - September 27, 1982 Page Six Paul Baxter noted that the scheduled implementation of the previous rate increase will take place November 1 unless otherwise instructed by Council. Mr. Baxter explained that the Finance Department will need several weeks lead time to implement any new rate structure as the City is on a two -month billing cycle. Mr. Sibbach stated that he needed to know if Council approves the scheduled rate increase until the proposed sewer rates are adopted. Councilmember Risley questioned the total revenue projected under the proposed rates as submitted by staff. Councilmember Risley noted that these projected revenues exceeded last years expenditures by a substantial mount. Mr. Bressan noted that there were several reasons for this increase, and explained that only a few months of this year would be under the proposed rates, and the rest would be at the old rates, while the figures are also just averages and there is no way to project exact revenues from these averages. Councilmember Risley asked how the fixed fee was arrived at. Mr. Bressan noted the area in the Brown and Caldwell report which contained the fixed fees. Councilmember Risley questioned the fees proposed for mobile home parks and asked if any analysis had been done comparing these rates to single family dwellings. Mr. Bressan stated that such an analysis had not been done and would be most likely inaccurate as it would reflect only the averages and would also not be enforceable as mobile home owners can bill the individuals at whatever rate they choose. Councilmember Risley felt some rough checks should be made. Mr. Bresan stated that this could be done but in his opinion would not provide any new information, only additional "averages". Councilmember Risley also asked if any method of billing had been considered that would take into consdieration the individual home owner who used water for irrigation. Mr. Bressan stated that the only method he was aware of would be taking an average winter bill (for January, Feburary for example) and charging that rate the entire year. Mr. Bressan stated this had been considered but he did not feel it was feasible, as each of the 4,000 accounts would have to be individually examined, and also a property owner could "cheat" by being extremely conservative during those months to obtain a lower bill. A roll call vote was then taken on Councilmember Lemons motion to set for Public Rearing: AYES: Anderson, Lemons, Risley, Zeuschner, Shelton NOES: None ABSENT: None MORRO BAY CITY COUNCIL • Regular Meeting - September 27, 1982 Page Seven Council recessed briefly at 9:00 p.m • and reconvened at 9:10 p.m. Paul Baxter requested Council clarification regarding the scheduled rate increase in November from $4.00 to $6.00 per month. Council concurred that the increase was necessary until a new rate structure was adopted and authorized staff to proceed with the scheduled November increase. B-2 (Continued) Mr. LeSage stated that Council could proceed with adoption of the Resolution and Ordinance as moved by Councilmember Lemons. . There was a roll call vote on Councilmember Lemons earlier motion to approve the General Plan Amendment and zone change to C-1, and adopt the Resolution and to read the Ordinance by title and number only. AYES: Anderson, Lemons, Risley, Zeuschner, Shelton NOES: None ABSENT: None Mr. LeSage then read the Ordinance in its entirety. MOTION: Councilmember Lemons moved that this constitute the first reading of the Ordinance to amend the General Plan and change the zone designation to C-1 for property.located at 213 Beach Street. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Lemons, Zeuschner, Anderson, Risley, Shelton NOES: None ABSENT: None B-4 UPDATE REPORT FROM CALIFORNIA-WEST REGARDING EMBARCADERO LEASE SITES Mr. Jack Wallace of California -West, Inc., provided Council with information regarding the status of the County Leases since the August 17th billing for increased rents and retroactive rent payments. Mr. Wallace stated that he had attended a general meeting of most of the leasee's and had met with several for negotiations regarding conversion to City leases. Mr. Wallace provided Council with a handout detailing the lease sites and any comments on the individual sites regarding conversion. Mr. Wallace noted that as the City had granted a six month non -interest bearing term for payment of the rents, no rents were due until February, and,none had been received to date. Councilmember Zeuschner commended Mr. Wallace on the clear and concise report. Councilmember Risley asked about the balance of the lease sites that had not been contacted.. t i MORRO BAY CITY COUNCIL Regular Meeting - September 27, 1982 Page Eight Mr. Wallace stated that as time permitted each of the lessee's would be contacted for possible negotiations. Councilmember Risley questioned Mr. Wallace about other non -county leases and their status. Councilmember Risley requested Mr. Wallace to prepare a plan for uses along the Embarcadero, to assist Council in future decision making. Mr. Wallace stated that he would provide this information as soon as possible. Councilmember Risley asked what the status of the water leases were. Mr. Wallace explained that they would have to be evaluated on an individual basis, as use of the water leases is so varied. Councilmember Risley asked the status of the lease audits. Mr. Sibbach stated that the audits have begun and asked if Council wanted reports as they are ready or submitted in one package. Mr. Sibbach felt the audits should be completed by January. Mayor Shelton stated that January would be fine for submittal of the audit reports. Mr. Wallace noted that these are strictly revenue audits. Howard Gaines had a comment regarding the lease amendment in Item C-5. Mayor Shelton instructed Mr. Gaines to hold his comment until that item came before Council. Mr. Gaines objected to the City allowing a six-month non -interest bearing term, and felt that the City should demand payment for back rent immediately. Mr. Gaines also felt that this use of "taxpayers" money was illegal and questioned whether it had Council authorization. Mr. Baxter stated that Mr. Gaines would be provided with a copy of the City Council minutes wherein Council authorization was provided. B-5 CONSIDERATION OF EXPANSION OF SENIOR CITIZENS FACILITY Mr. Baxter informed Council that Mr. Don West and Ms. Marguerite McAulliffe would make a brief presentation to Council regarding expansion of the senior citizens facilities. Mr. Baxter stated that several meetings had been held regarding this proposed expansion and the use of the City Recreation Building by the Seniors. Mr. Baxter noted that Mary Sanders would comment later regarding scheduling of the facility. Mr. Don West displayed three conceptual drawings, the site plan, floor plan and exterior elevation, and briefly described the proposed facility. MORRO BAY CITY Regular Meeting Page Nine COUNCIL - September 27, 1982 Mary Phillips asked Mr. LeSage for his opinion regarding the restriction within the deed concerning alteration of the Recreation Building. Mr. Baxter stated that Mr. LeSage had reviewed the deed and prior to any decision on his part, would like to hear the presentation from the Senior Citizens. Mr. West then described the proposed usage of the building, and stated that an equal or larger area.of square footage would be availabe for Recreation or City use, and that additional space would be devoted to offices, game rooms, kitchen facilities and storage area. Mr. West stated that it was the intention of the Senior Citizens to work with the City in scheduling the facilities and that there would be room and time available for the Recreation Department to schedule any necessary programs or classes as usual. Marguerite McAulliffe stated that the building would be a Senior Citizens Center with use by the community. Mary Phillips voiced her opinion that the facility should be a Community Center and for use by the entire community. Mary Sanders stated that in conversations with Ms. McAulliffe, it had been discussed that the Recreation Department would continue to schedule activities for that portion of the facility they would have available, and the Senior Citizens would do the remainder of the scheduling for the Center. Mr. LeSage stated that under the terms of the agreement with the City, if the building is altered or use changed in any way, equal or better facilities for recreation must be provided. Mr. LeSage stated that this proposal, as presented, fulfilled this requirement by providing equal or better facilities. A member of the audience asked if the Senior Citizen Par Course that would have to be removed with expansion of the Recreation Hall, would be provided for in another area. Mr. Baxter stated that it was hoped that this course could be relocated on the adjacent school property. MOTION: Councilmember Lemons moved that the City Council reaffirm its committement of land and grant conceptual approval to this proposal for expansion of the Senior Citizens Center and place a three year time limit for commencement of construction. The motion was seconded by Councilmember Anderson and carried unanimously. (5-0) C-1 PLANNING COMMISSION RECOMMENDATION FOR A WATER ALLOCATION PROGRAM Mr. Murrel Crump provided Council with a review of the Water Allocation Program as recommended by the Planning Commission. Mr. Crump stated that this was the annual report of the Planning Director on the Water Equivalency MORRO BAY CITY Regular Meeting Page Ten COUNCIL • • - September 27, 1982 Program for the current calendar year. Mr. Crump explained that a report for 1982 had not been previously prepared due to processing of the application before the State Coastal Commission to allow the allocation of new water equivalencies. Since it is now appropriate to consider an equivalency program this Allocation Plan has been submitted for Council consideration. Mr. Crump noted that the Planning Commission has recommended the Program as submitted, after a special meeting was held for public testimony on the proposed program. Mr. Crump provided Council with a detailed overview of the Allocation Program. Councilmember Risley asked if this matter had been properly noticed for a public hearing. Mr. Crump stated that notices had been published well in advance of the meeting that it was a scheduled Public Hearing. Mayor Shelton then opened the meeting for public comment. Mr. Bob Lane felt that the plan should reflect the 80-20 ratio (residential commercial) as adopted by the previous Council and as expressed by the people, to maintain the existing character of the city. Mr. Lane objected to the approach of issuing building permits as submitted in the plan, and felt that with this approach larger developers would be in a position to hold up the individual builder for months while accumulating water equivalencies. Mr. Howard Gaines felt that the existing 650 subdivided lots within the City should have priority for building, and that the 11 acres of land within the City but without services, should have to wait. Mrs. Dorotha Deutsch asked Mr. Crump to concur that the historical use of water was approximately 62% residential and 48% commercial. Mr. Crump agreed that this was the approximate percentage ratio. Mrs. Deutsch felt that the market place will dictate what will be built and that it will most likely reflect the historical pattern of Morro Bay. Grace Melton supported the Planning Commission recommendation for approval of the Water Allocation Program, and felt it would provide for such projects as the Senior Citizens Center, expanion of the Huntington Hospital and a community Library. Mrs. Melton also noted that there had been ample public testimony allowed at the Planning Commission Special Meeting. Mr. Jim Ross stated that he was a potential builder and had been waiting for several years to build. Mr. Ross urged Council to adopt the program without further delay. Mr. Dick Ferris also urged Council action on the program and commended the Planning Commission for their efforts on this Allocation Program. MORRO BAY CITY COUNCIL Regular Meeting - September 27, 1982 Page Eleven Mr. Bob Ward stated that the Program was consistent with the Coastal Commission requirements and that the 80%:20% ratio had not been approved by the Coastal Commission. Mr. Crump stated that the individual lot owners would have priority over large developers and clarified the method of establishing priority for applications. Mr. Ray Kaltenbach noted that the Water Allocation Program only allows for a small percentage of growth. Mr. Ernie Miller urged Council to adopt the Program as submitted and noted that amendments to the Program can be adopted later. Mr. Bob Lane requested clarification regarding the status of the owner - builder. Mr. Crump stated that in all cases, owner -builder occupant would have priority over speculative builders and that the only "competition" would be between owner -builders. Mr. Crump noted that if there were more applicants than equivalencies in one quarter, the remainder would be held over until the next quarter. Dorotha Deutsch asked how the City would enforce the "owner -builder" application. Mr. Crump stated that the status of "owner -builder" would only be available once per year, which would eliminate speculative building. Mr. Dick Haidet asked if a water equivalency is unused if it can be transferred. Mr. Crump explained that there are three separate areas and different "rules" for each. For example, Coastal Development permits where equivalencies were granted prior to the moratorium cannot have equivalencies transferred or reissues, they are lost if not used. However in certain cases, if the equivalencies are not used they may be held over or reissued. Mr. Scotty Campbell felt the 650 lot owners within the City should be given priority. Herminia Ward noted that the 80%:20% ratio was not approved by the Coastal Commission, and that it was not what the City desired that mattered but what the Coastal Commission approved. Jane VonKeogh questioned the disposition of the 18 equivalencies already granted if those people cannot afford now to build immediately. Mr. Crump stated that they would have 1 year within which to build, or if a hardship existed, this time limit could be extended. MOTION: Councilmember Anderson moved to close the Public Hearing. The motion was seconded by Councilmember Zeuschner and carried unanimously. (5-0) MORRO BAY CITY COUNCIL Regular Meeting - September 27, 1982 Page Twelve Councilmember Risley stated that he was in agreement that building should start but felt that there were not adequate guidelines for individual builders to follow in applying for their permits, nor were there adequate provisions to give priority to the 650 existing sub -divided lots. Councilmember Lemons stated that this was not meant to provide those types of guidelines, as it was mainly the annual report regarding water equivalencies. Councilmember Lemons felt guidelines could be provided at a later date. Councilmember Lemons also noted that the historic growth pattern is represented by what is in Morro Bay now, which he felt would be approximately 62% residential water use. Councilmember Lemons also reminded Council. that building permits do not always equal water equivalencies. He also stated that regardless of whether building is done by owner -builders or speculative builders, a lot owner has the same right - the right to build and to sell his home if he chooses. Councilmember Risley felt that at least 80% of the residents of Morro Bay favored giving priority to the 650 already subdivided lots. Councilmember Zeuschner summarized his feelings about the discussion so far, and concurred that a priority system should be established to give individual lot owners priority over large developers, and to maintain the historical growth pattern of the City. There was additional discussion regarding Council direction for water equivalencies. Councilmember Risley felt Council should award the 18 existing water equivalencies and the 5 with existing plan check fees paid, and then direct. staff to formulate an improved guideline for implementation of the allocation program. Councilmember Anderson felt that Council should consider what the City has the opportunity to receive from the, Coastal Commission and to be realistic in what the Coastal Commission will approve. MOTION: Councilmember Anderson moved that the City Council adopt the Water Allocation Program as recommended by the Planning Commission and direct staff to develop recommendations for implementation procedures for those equivalencies beyond the 18 applications for Building Permits as approved above, the 5 applicants for Building Permits and the two approved Developments as shown on Attachment 'B", and that no permits be issued beyond these until such implementation procedures have been adopted. The motion was seconded by Councilmember Lemons. Council discussed various aspects of the motion and the information requested of staff. Councilmember Lemons felt that the official definition of low -moderate income housing should be included in, the Program, to clarify the status of single owner -builders. Councilmember Zeuschner stated that a definite system of priority establishment should be provided, as well as clarification regarding low -moderate income housing. MORRO BAY CITY COUNCIL if 6 Regular Meeting - September 27, 1982 Page Thirteen . Councilmember Risley felt that information regarding the implementation procedures should be clear cut and precise, and also felt that lot owners should be notified by the City. Councilmember Lemons stated that to notify each individual property owner would be extremely costly and felt that the media and City staff could properly assist any lot. owner. that needed additional information. A roll call vote was then taken on Councilmember Anderson's previous motion: AYES: Anderson, Lemons, Zeuschner, Shelton NOES: Risley ABSENT: None C-2CHANGES IN RENTER'S WATER DEPOSIT AND RECONNECTION'FEES Paul Baxter stated that at the recommendation of the Finance Director Council is being requested to increase the utility deposit for renter's from $25.00.to $45.00 to.cover the current costs, and,ldwer the reconnection charge from $37.50 to $30.00. MOTION: Councilmember Zeuschner moved that Council adopt the Resolution which would make the above noted changes in renter's deposit and reconnection charges. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: AYES: Zeuschner, Lemons, Anderson, Risley, Shelton NOES: None ABSENT: None C-3 PROPOSED REPAIRS TO BULKHEAD ON GOLDEN TEE'MARINA LEASE 'SITE John Bressan provided Council with the staff report, and explained that resulting from an inspection by himself and the Chief Building Inspector, the bulkhead (or seawall) and marina at the Golden Tee Lease Site had been declared unsafe. Mr. Bressan stated that the marina had been closed down and the boats moved to other areas. Mr. Bressan stressed that this situation now is in need of emergency repairs to prevent further loss of the bulkhead and potential damage to the lease site. John Bressan explained the type of emergency repairs being requested and explained that this would not be a permanent repair, however it would accomplish the immediate need of "holding" the bulkhead. Mr. Bressan also noted that as the Golden Tee is currently in receivership, further and more complete repairs would be required of future lessees. Mr. Reg Whibley of Associated Divers explained the temporary repairs his firm would do if authorized. Mr. Whibley emphasized the urgency of this action, as the lease site was in danger of being greatly damaged. Mayor Shelton asked the financial scope of the project. MORRO BAY CITY COUNCIL Regular Meeting - September 27, 1982 Page Fourteen Mr. Whibley stated approximately $30,000 to $40,000 would be required just for the temporary repairs to retain the bulkhead. Councilmember Risley asked who would pay this amount. Mr. Whibley stated the cost would be to the management firm at the Golden Tee. Councilmember Risley asked Mr. Baxter about the information submitted from the Building Inspector. Mr. Baxter noted that William George, the Chief Building Inspector had submitted information to Council outlining recommended action to either terminate the lease or set abatement hearings. Mr. Baxter explained that there were two separate areas, the water lease at the marina and the bulkhead. Mr. Baxter noted that the bulkhead is in need of immediate repairs regardless of the status of the lease. MOTION: Councilmember Lemons moved that the City Council find that the bulkhead at the Golden Tee Marina lease site constitutes an emergency situation for purposes of the Coastal Commission and CEQA, and authorize emergency repairs to the bulkhead as described. The motion was seconded by Councilember Zeuschner and was carried by the following roll call vote: AYES: Lemons, Zeuschner, Anderson, Risley, Shelton NOES: None ABSENT: None C-4' APPROVAL OF 'AMENDMENT NO. 6 TO MASTER AGREEMENT 'WITH BROWN AND CALDWELL John Bressan explained the original agreement with Brown.and Caldwell in which $98,000 was designated for special engineering services. Mr. Bressan noted that with the required printing of contract documents, this ceiling will be exceeded. Mr. Bressan recommended that Council increase this ceiling to $104,600 to cover the additional costs to be incurred. MOTION: Councilmember Zeuschner moved that Council adopt the Resolution increasing the amount designated for special engineering services to $104.600 as requested. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: AYES: Zeuschner, Lemons, Anderson, Risley, Shelton NOES: None ABSENT: None C-5 REQUEST FOR LEASE SITE ADJUSTMENT BY-GEORGE LEAGE Mr. Baxter informed Council that several months earlier a request had been received from Mr. George Leage for.an extension to his water lease. MORRO BAY CITY COUNCIL • • Regular Meeting - September 27, 1982 Page Fifteen Mr. Baxter noted that the delay in bringing this matter to Council had been caused by the need to survey the requested area and investigate any potential problems that might be caused by this extension. Mr. Baxter stated that the Public Works Department had completed the survey and found that this extension would in no way jeopardize adjacent lease sites or cause a problem with the navigation channel. Mr. Baxter stated that this proposal was being brought before Council for their conceptual approval and authorization to proceed with negotiations and further discussion with Mr. Leage. Mayor Shelton stated that he was not opposed to the idea, and felt that staff should proceed with negotiations. Mike LeSage commented that concessions can be requested when any part of the lease is amended. MOTION: Councilmember Zeuschner moved that Council approve the extension of the Tiger's Folly Lease for George Leage in concept only, and authorize staff to proceed with negotiations. The motion was seconded by Councilmember Lemons, and carried by the following roll call vote: AYES: Zeuschner, Lemons, Risley, Shelton NOES: None ABSENT: None ABSTAIN: None D. CONSENT CALENDAR Paul Baxter reviewed the following items on the consent calendar: D-1 CITY COUNCIL MINUTES OF ADJOURNED MEETING OF SEPTEMBER 13, 1982, AND DEYITTT AD 'TJVOmTTTr nU OVnmuxlnun l n T non Mr. Baxter recommended that Council approve the above mentioned minutes as submitted. D-2 RE -APPROPRIATION OF ENCUMBRANCES AT 6/30/82 Mr. Baxter recommended that Council adopt the Resolution appropriating encumbrances at 6/30/82 for the 1982-83 Fiscal year. D-3 BUDGET AND FINANCIAL REPORTS FOR. YEAR ENDED JUNE 30. 1982 Mr. Baxter reviewed the financial reports for Council and noted that no action was necessary. D-4 DECLARATION OF OCTOBER'3 THROUGH OCTOBER 9 AS FIRE PREVENTION WEEK Paul Baxter recommended that Council authorize the Mayor to sign the Proclamation declaring October 3 through 9 as Fire Prevention Week. MORRO BAY CITY COUNCIL 0 • Regular Meeting - September 27, 1982 Page Sixteen D-5 CITY OF MORRO BAY EXPENDITURE REPORT FOR AUGUST 1982 Paul Baxter recommended that Council approve the Expenditure Report for the City of Morro Bay for the month of August, 1982, as submitted by the Finance Director. D-6 RESOLUTION APPROVING GRANT APPLICATION FOR FUNDS TO DEVELOP ORDINANCES AND COASTAL 'PERMIT PROCEDURES Mr. Baxter recommended that Council adopt the Resolution approving the grant application for funds to develop ordinances and coastal permit procedures as submitted. D-7 RESOLUTION COMMENDING MARY SANDERS FOR HER SERVICES UPON EMPLOYMENT 'RESIGNATION Mr. Baxter recommended that Council approve the Resolution for Mary Sanders as submitted. D-8 DECLARATION OF SURPLUS CITY AND POLICE PROPERTY Mr. Baxter recommended that Council declare the submitted property list as surplus to City needs and to authorize staff to make arrangements for the auction of the property on October 24, 1982. Mr. Baxter noted that this would be an auction of City property only, and police nrooerty woiiAd, be auctioned separately at a later date. Councilmember Lemons suggested that the words "not to exceed" be removed from the Resolution in item D-6. MOTION: Councilmember Lemons moved that the Consent Calendar be approved with the one amendment to item D-6 as stated above. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Lemons, Zeuschner, Anderson, Risley, Shelton NOES: None ABSENT: None MOTION: Councilmember Lemons moved that the City Council authorize staff to write.a letter on behalf of the City regarding the.Coastal Commission proposed 83-84 budget, similar to correspondence received from the City of Half Moon Bay. The motion was seconded by Councilmember Zeuschner and carried unanimously. (5-0) E. INDIVIDUAL DETERMINATION AND/OR 'ACTION E-1 CITY 'ATTORNEY Mr. LeSage informed Council that the Court had awarded $4,600 in attorney fees to Mr. Howard Gaines for the litigation regarding Measure A. MORRO BAY CITY COUNCIL Regular Meeting - September 27, 1982 Page Seventeen E-2 CITY COUNCIL Councilmember Zeuschner requested that staff place the Morro Bay Friends of the Library on the next meetings agenda for a presentation. Councilmember Risley asked the status of communication with the Audobon Society regarding their correspondence of August 31, 1982. Mr. Baxter stated that he had been in contact with the Audobon Society and that the City was aware of the situation regarding the utility wires near Morro Rock,_ and was working with the Society'on this problem. Councilmember Lemons stated that he was concerned over comments made by Councilmember Risley at previous meetings regarding the passage of the 1982-83 budget, and by comments written by him in the recent CAL Newsletter regarding his frustration over the budget. MOTION: Councilmember Lemons moved that the Council reconsider the Budget approval and place the budget back on emergency operational status to. allow Councilmember Risley to attempt to make the meaningful budget cuts he has requested. The motion was seconded by Councilmember Anderson and was defeated by the following roll call vote: AYES: Lemons, Anderson NOES: Risley, Zeuschner, Shelton ABSENT: None Councilmember Lemons then discussed an article appearing in the same issue of CAL. and stated that implied threats toward City staff as present in this article should be deplored by Council and not tolerated. Councilmember Lemons stated that the Council should go on record as not tolerating this type of implied or open threat. MOTION: Councilmember Lemons moved that the City Council go on record as deploring any open or implied threats to the job security of City staff, and express their confidence in staff by this vote. The motion was seconded by Councilmember Anderson and carried unanimously. (5-0) Mayor Shelton announced that Barney Schwartz, former Mayor of Paso Robles for twenty years, had passed away._ MOTION: Councilmember Lemons moved that at such time that the meeting ends, it be adjourned in honor of Barney Schwartz's memory. The motion was seconded by Counclmember'nisley and carried unanimously. (5-0) E-3 CITY ADMINISTRATOR Mr. Baxter stated that he had two items to discuss in closed session. Mr. Baxter also noted that SB 358 was before the Governor, and if passed e MORRO BAY CITY Regular Meeting Page Eighteen COUNCIL - September 27, 1982 would provide a small amount of funding to be available for libraries. Mr. Baxter requested that the Council authorize staff to send a letter stating that the Council has gone on record to request signature by the Governor of SB 358. MOTION: Councilmember Zeuschner moved that Council go on record and supporting SB358 and authorize staff to prepare a letter for the Mayor signature on behalf of the City. The motion was seconded by Councilmember Lemons and carried unanimously. (5-0) MOTION: Councilmember Zeuschner moved that Council adjourn to closed session. The motion was seconded by Councilmember Lemons and carried unanimously. (5-0) Council adjourned to closed session at 12:25 p.m. and reconvened to open session at 12:35 p.m. MOTION: Councilmember Risley moved that Council adjourn the meeting in memory of Barney Scwartz of Paso Robles. The motion was seconded by Councilmember Zeuschner and.carried unanimously (5-0). The meeting was adjourned at 12:36 p.m. RESPECTFULLY SUBMITTED, PEG CRANAN DEPUTY CITY CLERK MORRO BAY CITY COUNCIL 40 REGULAR MEETING - SEPTEMB R 13, 1982 RECREATION HALL - 7:30 P.M. ROLL CALL PLEDGE OF ALLEGIANCE - Horace Strong, Representing Morro Bay Veterans INVOCATION:. Don Carey, United Presbyterian Church, Morro Bay A. 'PUBLIC'HEARINGS, REPOP.TS'& APPEARANCES A-1 Continued Public Hearing (from Adjourned meeting at 4:00 p.m.) to consider City's response to State Coastal Commission action in adopting the proposed Morro Bay Land Use Plan of the Local Coastal Plan with modifications. (7:30.-.8:30) A-2 Resolution Adopting Fiscal Year 1982-83 Budget for the City of Morro Bay . A-3 Recommendation from the Planning Commission for an amendment to the General Plan Land Use Element changing designation from Service Commercial to Community Commercial and consideration of a change of zone from C-2, S-9 to C-1 for certain properties located at 213 Beach Street (Case Nos. GPA 01-82, and CZ.02-82) . A-4 Report by the Public Works Director regarding Regional Water Quality Control Board meeting of September 10,1982 B. 'UNFINISHED BUSINESS B-1 Re -opening of the hearing of abatement of buildings at 2870 Cedar Avenue and 2865 Dogwood; Lanny McKay B-2 Approval of contract to Brown and Caldwell for preparation of 301(h) Waiver C. NEW BUSINESS C-1 Designation of Voting Delegate for League of California Cities Annual Conference (Oct. 17-20) . C-2 Request by Mr. and Mrs. Tubbs for Council reconsideration of Building Official's designation of 966 Pacific Street as a duplex. C-3 Authorization to advertise for.bids for construction of Wastewater Treatment Plant Facility improvements D. CONSENT CALENDAR D-1 City Council minutes of Adjourned meeting of August 9, 1982; Adjourned meeting of August 20, 1982; Adjourned meeting of August.21, 1982; and regular meeting of August 23, 1982. D-2 Proclamation of September 23, 1982 as "Civil Rights Day" D-3 Chamber of Commerce Expenditure Report for August, 1982 D-4 Approval of Contract with Book Publishing Company for Municipal Code Review and Report 0 0 D-5 Approval of installation of "Yield" Signs on Coral Street at San Jacinto D-6 Ratification of Refuse Franchise Board's approval of hardship variance for Regina S. Seely, at 381 Rennell D-7 Approval of handicap parking at all City Buildings E. INDIVIDUAL DETERMINATION AND/OR 'ACTION E-1 CITY ATTORNEY E-2 CITY COUNCIL E-3 CITY ADMINISTRATOR /pb •Gc"JDA NO. — MORRO BAY CITY COUNCIL /; REGULAR MEETING - SEPTEMBER 13, 1982 Date 7Action RECREATION HALL - 7:30 P.M. Mayor Shelton called the meeting to order at 7:30 p.m. and led the Pledge of_Allegiance for the audience. The invocation was offered by Reverend —Don Carey.of the United Presbyterian Church. ROLi; 'CALL PRESENT: Eugene R. Shelton Rodger J. Anderson John Lemons Bruce.Risley Bud Zeuschner STAFF: Gary Napper Michael T..LeSage John Bressan Murrel Crump Tbm.Freeman Al Olson Gere Sibbach Bernie Zerr Peggy Buchanan Mayor Councilmember Councilmember Councilmember Councilmember Assistant to City Administrator City Attorney Public Works. Director Director of Community Recreation Coordinator Police Chief Finance Director Fire Chief Deputy City Clerk ABSENT: Paul Baxter City Administrator Mary Sanders Recreation Director A. PUBLIC HEARINGS, REPORTS & APPEARANCES A-1 Development Gary Napper reviewed testimony and information provided at the adjourned meeting of 4:00 p.m. (same day), and summarized for Council three basic alternatives regarding the Land Use Plan of the Local Coastal Plan as modified by the Coastal Commission. Mr. Napper stated that there were essentially three alternatives: 1) to accept the Coastal Commission's suggested modifications, in which case the LUP would be automatically certified; 2) to develop alternative changes for those modifications unacceptable; or 3) to reject the modifications and resubmit the LUP with no changes. Mr. Napper noted that staff was recommending the first option of accepting the moficiations, 'with amendments possible at a later date. Mayor Shelton opened the meeting to Public Hearing and invited comments. Grace Melton displayed several posters prepared to depict Morro Bay as a caring community. Herminia Ward presented a slide show to illustrate the visual access to coastal areas available in Morro Bay. MORRO BAY CITY COUNCIL • 0 Regular Meeting - September 13, 1982 Page. Two Vern Ford, 206 Surf Street, felt there was a lack of information and policy toward the residents, and that most of the concern seemed to be for big business. Mr. Ford was concerned over the non -conforming zone change that would take place on his property seemingly without public notice. Councilmember Anderson noted that this is one.area that might be looked at for possible amendment. Mr. Crump stated that the 1977 General Plan had designated this area as part of a larger tourist serving area and gave it a PD zoning There was a discussion regarding the non -conforming uses in the area of Mr. Ford's residence, and the possible consequences of a fire or other disaster to Mr. Ford's residence and status as a non -conforming use. Mr. Crump stated that the residence could be maintained or repaired up to 50% of its value. Councilmember Risley noted that the Planning Commission was considering a rezoning and General Plan Amendment in this vicinity and asked Mr. Crump what effect this might have on Mr. Ford. Mr. Crump noted that it would not directly affect Mr. Ford, however all those within 300 feet of the rezoning would be notified. Peter Diffley noted that the sewage treatment plant permit is conditioned upon restricting development to infill areas within the Urban Reserve Line, and stated that. Council should adopt the LUP and then go through Any needed.amendments. Lou Okasaki urged Council to adopt the plan to regain local permit control Again. Jane VonKeogh felt Council shoud adopt the LUP and commented on the need for a shopping center and. stated that there does not seem to be the demand for the type of proposal given by Mr. Williams. MOTION: Councilmember Anderson moved that the Public Hearing be closed. The motion was seconded by Councilmember Risley and carried unanimously. (5-0) MOTION: Councilmember Lemons moved that the Council adopt the Resolution as prepared with one amendment as follows: After the fifth paragraph, add: WHEREAS, the City Council will from time to time hereafter consider amendment to our Local Coastal Plan so as.to address areas of concern to our citizens; and..." The motion was seconded by Councilmember Zeuschner. MORRO BAY CITY COUNCIL Regular Meeting - September 13, 1982 Page_ Three Councilmember Risley stated that he would the addition of the wording as provided by he felt this was not necessary. support the motion without Councilmember Lemons, as Councilmember Lemons noted that the inclusion of the wording would not be harmful to the City's standing but might serve to point out that the City is.not entirely in accordance with the Coastal Commission's modifi- cations. Councilmember Lemons noted several areas of what he thought. were ridiculous modifications. Councilmember Zeuschner agreed that this additional wording might not be necessary however he concurred that it might serve, to further emphasize the City`s standing regarding future amendments. Murrel Crump briefly reviewed the amendment process for Council's benefit. Councilmember Anderson agreed that the situation was not totally comfortable, however it did seem that. adoption of the plan with the modifications was the most effective method of restoring local control. Mayor Shelton agreed that adoption seemed to be the only way to gain local control, with the amendment process still open to the City for future changes.. Councilmember Lemons motion was carried by the following roll call vote: AYES: Anderson, Lemons, Risley, Zeuschner, Shelton NOES: None ABSENT: None MOTION: Councilmember Risley moved that Council instruct staff to develop and present.to the City Council information and material to assist and encourage owners of the 650 subdivided lots who may wish to build. Councilmember Lemons suggested that Councilmember Risley revise his motion and provided appropriate wording. Councilmember Risley revised his motion as follows: MOTION: Councilmember Risley moved that Council instruct staff to prepare a proposal for administering the issuance of permits already authorized by the Coastal Commission. The motion was seconded by Councilmember Lemons and carried unanimously. (5-0) Councilmember Risley felt that this would encourage and stimulate the economy of Morro Bay more than large developments that rely on borrowed funds.would. Councilmember Zeuschner urged staff to prepare such a proposal expeditiously. MORRO BAY CITY COUNCIL • Regular Meeting - September 13, 1982 Page Four Murrel Crump informed Council that an allocation plan would have to be developed and recommended via the Planning Commission, and that this would be done as quickly as possible. A-2 RESOLUTION ADOPTING FISCAL YEAR 1982-83 BUDGET FOR THE CITY OF MORRO BAY Gary Napper explained that this Public Hearing was a culmination of Council and staff discussion and budget review, including four separate budget hearings. Mr. Napper stated that at the last of these hearings, staff had. presented Council with several options for reducing the budget and at this meeting Council had selected a modified Option I reduction, retaining $80,000 for a fire truck and $15,000 for the floating docks and maintaining the proposed sewer rate structure. until future re-evaluation is accomplished. Mr. Napper requested that Council earmark the $80,000 proposed for City Hall renovations that had been cut in Option I, for use in the acquisition of the fire truck. These Revenue Sharing Funds would be appropriatedin reserve, then encumbered for next year as the truck will be ordered this fiscal year but will not arrive until the following year. Mr. Napper recommended that Council adopt the Resolutions approving the 1982-82 Budget and the sewer and water rates. Mayor Shelton opened the Public Hearing. Howard Gaines spoke regarding the unfinished Beach Street restabilization project, and felt that Council should order the remaining improvements to be constructed by Mr. Dorn and then proceed with finishing the project. Mr. Gaines also felt that the proposed sewer rates were inequitable and that residential users were being charged in excess. Mr. Gaines urged Council to adopt rates similar to Cambria's rates, based on type of usage. Ray Kaltenback asked if the proposed water loan was included in this budget proposal. Mr. Sibbach stated that it is not included and that Council will be asked to appropriate funds as needed. MOTION: Councilmember Zeuschner moved that Council close the Public Hearing. The motion was seconded by Councilmember Lemons and carried unanimously. (5-0) Councilmember Risley noted that basically there were three separate issues, the budget, the sewer rates, and the water rates. MOTION: Councilmember Risley moved that Council approve the water rate scheduled as submitted, and adopt the attached Resolution. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Anderson, Risley, Zeuschner, Shelton NOES: Lemons ABSENT: None MORRO BAY CITY COUNCIL • • Regular Meeting - September 13, 1982 Page Five Councilmember Lemons objected to the rate structure as being inequitable to many residents. Councilmember Lemons noted that the effect of these rates is not widely known, and that even though rates for a small group (mainly second home owners in Councilmember Lemons' opinion) would be decreased, most residents would pay substantial increases (25%). Councilmember Lemons felt that the rates could be raised by as little as 100/100 cu. ft. and this would provide the necessary revenue without burdening families and other residential or commercial users. Councilmember Risley then read a prepared statement which he distributed to Council and staff, regarding the budget for this fiscal year, and the proposed sewer rates. MOTION: Councilmember Lemons moved that Council adopt the Resolution approving the Fiscal Year 1982-83 Budget for the City of Morro Bay as submitted. The motion was seconded by Councilmember Anderson and carried by the following roll call vote: AYES: Lemons, Anderson, Zeuschner NOES: Risley, Shelton ABSENT: None Councilmember Zeuschner noted that in voting for the budget, he felt the City was moving in the proper direction and that Council had succeeded in trimming the budget with each meeting. Councilmember Zeuschner explained that when inflation was taken into consideration, instead of a budget 2% over last years, real dollar figures show a 9% decrease in spending. Mayor Shelton also noted that the Budget had been thoroughly reviewed and had good public input. Councilmember Lemons stated that the bottom line figure should not be used for comparison, as certain projects influence both the revenue and expenditure projections, and that the reserve is the important portion of the budget to be reviewed. Councilmember Zeuschner requested the Public Works Director to prepare an evaluation of sewer rates for planning purposes. Councilmember Zeuschner stated that he would like to see sewage fees re-evaluated to relect user costs, along somewhat of the same lines as the recent water rate structure. Councilmember Zeuschner also stated that he would like to see the 100% vs. 85% commercial fee system changed, or that same priviledge provided to residential customers. He views the proposed rates as an interim measure until a new sewer structure can be implemented. Councilmember Anderson noted that this was another area the City was playing; "catch-up" and typing to accomplish in one or two years what had been neglected for many years. Council discussed the possible sewer rate structure once the sewer treatment plant has been rebuilt. MORRO BAY CITY COUNCIL • Regular Meeting - September Page Six 13, 1982 MOTION: Councilmember Lemons moved that Council adopt the sewage fees as outlined in the Resolution, and adopt said Resolution. Councilmember Anderson seconded the.motion and it was carried by the following roll call vote: AYES: Lemons, Anderson, Zeuschner NOES: Risley_, Shelton ABSENT: None MOTION: Councilmember Zeuschner moved that Council ask staff to review the material available on sewage rates and re-evaluate the rate structure and provide Council with information at their next meeting. The motion was seconded by Councilmember Risley and carried unanimously. (5-0) Council recessed briefly at 8:55 p.m. and reconvened at 9:05 p.m. A-3 RECOMMENDATION FROM THE PLANNING'COMMISSION FOR AN'AMENDMENT TO THE Gary Napper asked Murrel Crump to provide Council with information regarding this item. Mr. Crump noted that at the request.of the property owner at 213 Beach Street, the Planning Commission had held several public hearings to consider a change of zone from C-2, S-9 to C-1. Subsequent to these hearings, the Planning.Commission is recommending.to Council that the Land Use Element And Zoning District be amended to expand the C-1 classification outside the "downtown" area it is currently restricted to, to thereby open the means to process this request. Mayor Shelton opened the hearing to the public. Joseph Giannini stated that he owned several buildings in the area and wondered if adjacent property owners would be afforded the same privaledge of rezoning as this area. Councilmember Zeuschner asked Mr. Crump if staff was in favor of the rezoning. Mr. Crump noted that there were inconsistencies, however there was a decision to be made by Council as to whether the downtown area commercial type activites should.be extended to other areas of town. MORRO BAY CITY COUNCIL • • Regular Meeting - September 13, 1982 Page Seven Councilmember Zeuschner asked if the proposed Tourist Commercial zoning could be utilized in this area. Murrel Crump stated that the Planning Commission had recommended C-1 zoning. Mr. Ford questioned the difference between C-2, S-9 and 6-1 zoning. Mr. Crump provided the definition of each zoning and stated that the more typical downtown retail business were in C-1 zoning. MOTION: Councilmember Zeuschner moved that the Public Hearing be closed_. The motion was seconded by Councilmember Anderson and carried unanimously. Mayor Shelton asked Mr. Crump for a brief history of the proposed zone change. Mr. Crump explained that at the property owners request, the Planning Commission had held several public hearings, and conducted a field tour as well as initiated consideration of a Tourist Commercial zone. The Planning Commission had however, recommended the C-1 zoning for this Area. Councilmember Risley asked if an amendment to the Land Use Plan would be necessary. Murrel Crump noted that the Land Use Plan.reflects the 1977 General Plan used by Council to designate areas of_ Service. Commercial zoning. Mr. Crump felt.that the. Coastal Commission would not object to a change in commercial zoning designations. Councilmember Lemons felt that the property owner should be present, as this had been initiated at his request. There was discussion regarding the history of the zoning and the 1967 Land Use Element which designated this area as Service Commercial.. Councilmember Zeuschner also felt that the property owner should be present to contribute to the discussion. MOTION: Councilmember Zeuschner moved that Council continue this Public Hearing until the meeting of September 27th, 1982, and,instruct staff to notify the property owner to appear at this meeting. The motion was seconded by Councilmember Lemons and carried unanimously. (5-0) A-4 'REPORT.BY.'THE PUBLIC 'WORKS DIRECTOR'REGARDING THE REGIONAL WATER Mr. John Bressan reported that the City had a hearing before the Regional Water Quality Control Board meeting on Friday, September loth, 1982, to request amendment to.the cease and.desist order which had placed the City MORRO BAY CITY COUNCIL • • Regular Meeting - September 13, 1982 Page Eight and Cayucos Sanitary District under a sewer hook-up ban. Mr. Bressan informed Council that staff had presented the facts to the RWQCB; that the repairs had been accomplished, the outfall construction was completed, and that the quality and quantity of the effluent was within the parameters of the USEPA guidelines. Mr. Bressan stated that the Board found there was justification to lift the connection ban and issued a Resolution to that effect. Mayor Shelton opened the Public Hearing. There were no comments. MOTION: Councilmember Lemons moved that the Public Hearing be closed. The motion was seconded by Councilmember Zeuschner and was carried unanimously. Mayor Shelton offered congratulations to `John Bressan for this excellent work. Mr. Bressan gave credit to the crew at the treatment plant, and to the supervisors at the plant. Mr. Bressan noted that with approximately $200,000, the crew had managed to accomplish almost $500,000 worth of repairs. Councilmember Anderson noted that the RWQCB had stated that the plant was better shape than it had been for quite awhile. Mr. Bressan agreed. B. UNFINISHED BUSINESS B-1 RE -OPENING OF THE Mr. Crump reviewed this item for Council and explained that approximately two years ago, abatement proceedings had been initiated by the_City against this property but were suspended due to certain conditions being met by the property owner. Mr. Crump noted that these conditions had been met but demolition of the building had not been completed and subsequently the property had become a public nuisance and a danger to the children in the area. Mr. Crump requested that the City Council set a date for re -opening of the abatement proceedings. Councilmember Anderson asked if prior to the abatement hearing, the applicant would still be able to proceed with demolition of the building. Mr. Crump concurred that the property owner will have at least 15 days posted notice to complete the demolition, plus any time limit the Council sets prior to actual demolition. Bill George, Chief Building Inspector, noted that Mr. McKay had submitted plans and.had taken out a demolition permit but never completed the work. Mr. George noted that the Health Department had recently stated that this was a public health hazard and was to post the area also. MORRO BAY CITY COUNCIL • • Regular Meeting - September 13, 1982 Page Nine Councilmember Risley noted that in driving by the building, it appeared that demolition had already started. MOTION: Councilmember Zeuschner moved that Council tentatively schedule abatement hearings for 2870.Cedar and 2865 Dogwood, property owner Lanny McKay, for the City Council meeting of October 11, 1982. The motion was seconded by Councilmember Risley and carried unanimously. (5-0) Mr. LeSage noted that there are provisions for emergency abatement of hazards such as refrigerators, if there are such dangers on the property. B-2 'APPROVAL OF CONTRACT TO 'BROWN AND CALDWELL FOR PREPARATION OF'301(h) Gary Napper informed Council that the Public Works Director has negotiated an agreement with Brown and Caldwell in the amount of $42,603. for.preparation of the 301(h) waiver (Phase I).for.modification to the secondary treatment process. Mr. Napper noted that a Phase. II scope of work with additional expense might be necessary but this will not be known until Phase I work is underway. Mr. Napper asked Mr. Bressan to comment on any last minute changes to the contract. Mr. Bressan explained that staff had negotiated with Brown and Caldwell but no substantial.changes had occured in the contract and staff was ., recommending approval. Councilmember Lemons asked if the contract had been reviewed by the City Attorney. Mr. LeSage stated that he had reviewed a similar master contract but that Council could approve this contract subject to his review. MOTION: Councilmember J. Lemons moved that the contract to Brown and Caldwell for preparation of the 301(h) waiver be approved in the amount of $42,603.00, subject to review by the.City Attorney. The motion was seconded by Councilmember Zeuschner and.carried by the following roll call vote: AYES: Anderson, Lemons, Risley, Zeuschner, Shelton NOES: None ABSENT: None Councilmember Risley questioned the reference to $10,000 within the contract. Mr. Bressan explained that this was the maximum amount that could be used for unforeseen circumstances but would require separate Council.approval. Mr. Bressan also noted that this was a cost plus fixed fee ($5,557 fixed fee) type contract. MORRO BAY CITY COUNCIL • Regular Meeting - September Page Ten Councilmember Risley excessive. NEW 'BUSINESS DESIGNATION..OF VOTING 'DELEGATE 'FOR LEAGUE OF . .. .. .. .. .. .. ..... Gary Napper informed Council that the League of California Cities has requested each_City Council to formally designate a voting delegate at the League Annual Conference to. be held on October 17-20 of this year. Mr. Napper explained that various policy statements and resolutions will be presented for the League to take a position on. Mr. Napper requested that Council designate its voting delegate. Mayor Shelton inquired as to who among the Council was attending the Conference. Councilmember Lemons stated that he planned to attend. Mayor Shelton moved that Council designate Councilmember John Lemons as voting delegate to the League of California Cities Annual Conference in October. The motion was.seconded by Councilmember Zeuschner and carried unanimously. (5-0) ST.BY MR. AND 'MRS:'TUBBS'FOR Bob Lane rose and informed Council that he was representing the Tubb's and stated that they would like to clarify that their residence was not a duplex, but a residence and an apartment. Mr. Lane also noted that the correct address was 996, and not 966 as printed on the agenda. Murrel Crump acknowledge that this was not a duplex, however he informed Council that according to the Refuse Ordinance, it was still two units and was being billed accordingly.. Mr. Crump informed Council that this was the reason for the Tubb's—appeal to the duplex designation. Mr. Lane further explained that the apartment was not being rented, and was used only as guest quarters for the Tubb's personal guests and that they had no plans.to rent the apartment. Mr. and Mrs.. Tubbs had informed Mr. Lane that they did not require two cans for garbage, and did not feel.they should be required to take the second service. Councilmember Anderson agreed that the Building Department has to at the property as it exists but felt that.Council should be more in its approach. Councilmember Anderson stated he would feel more comfortable with an exemption for this property rather than.changing the designation from an apartment and a residence, in case it is sold and rented in the future. Councilmember Risley commented that he had been contacted by the Tubbs with this problem and that he felt the Refuse Board had been perhaps over- MORRO BAY CITY COUNCIL • • Regular Meeting - September 13, 1982 Page Eleven zealous in their attempt to enforce the mandatory refuse ordinance, and should perhaps be guided more by what the property is actually being used for. Councilmember Anderson stated that it is a policy interpretation Council can make regarding those judgements based on use. MOTION: Councilmember Zeuschner moved that Council grant an exemption to mandatory refuse service to the apartment unit at 996 Pacific Street until such time as it is rented. The motion was seconded by Councilmember Anderson and carried by the following roll call vote: AYES: Zeuschner, Anderson, Lemons, Risley, Shelton NOES: None ABSENT: None C-3 AUTHORIZATION 'TO' ADVERTISE 'FOR BIDS 'FOR 'CONSTRUCTION OF 'WASTEWATER 'TREATMENT 'PLANT 'FACILITY IMPROVMENTS John Bressan stated that the City has received notice that the plans And specifications for the improvements to the Wastewater Treatment Plan Facility have been approved. Mr. Bressan explained that this approval permits the City to advertise and open bids for the project, and that by using grant monies to prepare the plans and specifications, the City is bound to advertise. Mr. Bressan informed Council that the next step is to advertise the bids, and select a contractor. Mr. Bressan noted that this has been the goal of the City for the last 7 to 9 years, and that a grant for the wastewater treatment plan seems assured. Councilmember Zeuschner asked how this will be affected by the Cayucos Sanitary District. _ Mr. LeSage informed Council that the City has been attempting to work with Cayucos and to keep them informed at every step but that regardless of whether they choose to join in the grant process, the City must go forward. Mr. Bressan stated that Cayucos has had access to all information available to the City, and the City has tried unsuccessfully to set up meetings with Cayucos. Mayor Shelton felt the City should keep Cayucos informed and attempt to respond to all.their communications. Mr. Bressan stated that this is being done, and has been done in the past. Mr. Bressan also commented that the City has in no way been trying to usurp any of Cayucos's rightful capacity'.in the plant. Councilmember Risley stated that the most recent letter from.Cayucos had been disturbing,, and felt he would like to be.more involved in the discussions -W.i ih Cayucos. MORRO BAY CITY COUNCIL • • Regular Meeting - September 13, 1982 Page Twelve MOTION: Councilmember Zeuschner moved that Council authorize staff to proceed with advertising for bids for the construction of the Wastewater Treatment Plant Facilities improvement. The motion was seconded by Councilmember Lemons.and carried by the following roll call vote: . AYES: Zeuschner, Lemons, Anderson, Risley, Shelton NOES: None ABSENT: None D. CONSENT CALENDAR Gary Napper reviewed the following items on the Consent Calendar: D-1 "CITY'COUNCIL MINUTES.OF' Mr. Napper recommended approval of the above minutes as submitted. D-2 "PROCLAMATION OF SEPTEMBER'23. 1982. AS "CIVIL 'RIGHTS DAY" Mr. Napper recommended that Council proclaim September 23, 1982, as "Civil Rights Day" as requested by various agencies throughout the County, and authorize.the Mayor to sign the proclamation. D-3 "CHAMBER OF 'COMMERCE EXPENDITURE REPORT FOR AUGUST 1982 Gary Napper stated that the Finance Director had reviewed the expenditure report and was recommending approval as submitted, in the amount of $1,349.40. D-4 APPROVAL OF 'CONTRACT WITH 'BOOK PUBLISHING COMPANY FOR MUNICIPAL CODE Mr. Napper recommended that Council approve the contract with Book Publishing Company in the maximum amount of $1,875.00 for a Municipal Code Review and Report. D-5 "APPROVAL'OF INSTALLATION OF "YIELD" SIGNS ON CORAL 'STREET 'AT SAN Gary Napper recommended that Council adopt the Resolution approving the installation of "Yield" signs at Coral and San Jacinto Streets. D-6 RATIFICATION OF 'REFUSE FRANCHI u Mr. Napper recommended that Council ratify the findings of the Refuse Franchise Board in granting a hardship variance.to Regina;S. Seely, of 381 Rennell. MORRO BAY CITY COUNCIL • Regular Meeting - September 13, 1982 Page -Thirteen . D-7 APPROVAL OF HANDICAP PARKING AT ALL CITY BUI • Gary Napper recommended that Council adopt the Resolution designating handicapped parking spaces adjacent to all City buildings. i w Mr. Napper recommended that Council proclaim September as "Constitution Observance Month" in recognition of the signing of the Constitution, and authorize the Mayor to sign the proclamation. MOTION: Councilmember Lemons moved that Council approve the Consent Calendar as submitted. The motion was.seconded by Councilmember Risley and carried by the following roll call vote: AYES: Lemons, Risley, Anderson, Zeuschner, Shelton NOES: None ABSENT: None E. INDIVIDUAL DETERMINATION AND/OR ACTION E-1 "CITY ATTORNEY Mr. LeSage reported that the Roandoak of and checks have been issued and a release LeSage also requested a closed session to Peters vs. Morro Bay. E-2 CITY COUNCIL God matter has been resolved, received from Hospice. Mr. discuss litigation between Councilmember Risley requested a progress update from Jack Wallace, the City's property management consultant, to be presented at the.next meeting. Mr. Napper stated he would instruct Mr. Wallace to prepare a lease update. MOTION: Councilmember Lemons moved that Council adjourn to Closed Session as requested by the City Attorney. The motion was seconded by Councilmember Zeuschner and carried unanimously. (5-0) The meeting adjourned to Closed Session at 10:30 p.m. and reconvened to open session at 10:45 p.m... MOTION: Councilmember Risley moved that Council authorize the City Attorney to settle out of court with Mr. Peters. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Risley, Zeuschner, Shelton NOES: Anderson, Lemons ABSENT: None MORRO BAY CITY COUNCIL i if Regular Meeting - September 13, 1982 Page Fourteen MOTION: Councilmember Anderson moved that the meeting be adjourned. The motion was seconded by Councilmember Lemons and carried unanimously. The meeting was adjourned at 10:45 p.m. RESPECTFULLY ySU�BBMIITTT�E�D/,, PEG HANAN DEP TY CITY CLERK • 0 MORRO BAY CITY COUNCIL Adjourned Meeting - September 13, 1982 Recreation Hall - 4:00 p.m. Mayor Shelton called the meeting to order at 4:00 p.m. and announced that this was an adjourned City Council meeting for the purpose of holding a Public Hearing to consider the City's response to the State Coastal Commission Action in adopting the Proposed Morro Bay Land Use Plan with modifications. ROLL CALL PRESENT: Eugene R. Shelton Mayor Rodger Anderson Councilmember John Lemons Councilmember Bruce Risley Councilmember Bud Zeuschner Councilmember ABSENT: None STAFF: Gary Napper Assistant to City Administrator Murrel Crump Community Development Director Peggy Buchanan Deputy City Clerk Gary Napper asked Mr. Crump to provide Council with a brief background for this matter. Mr. Crump explained that the California Coastal Act as adopted by the voters, required cities with any jurisdiction within the Coastal Zone to prepare a Local Coastal Plan.. Mr. Crump noted that virtually all of Morro Bay falls within this Coastal Zone. Murrel further explained that the LCP is in three phases, identification, preparation and implementation. Morro Bay is now beginning work on implementation of ordinances which will complete the LCP. Mr. Crump then explained to Council the various options that staff has provided for Council discussion, including 1) acceptance of the Coastal Commission's suggested modifications and subsequent certification of the LCP, 2) development of alternative changes for those modifications Council finds unacceptable, and 3) resubmittal of the LCP with no changes. Murrel stated that staff is recommending that Council accept the Coastal Commission's modifications. Mr. Crump informed Council that even though there were areas within the Land Use Plan that staff feels should.be changed, the amendment process could be used for this purpose, with certification of the LCP being the main goal of the City at this time. Mr. Crump explained the amendment process for Council and stated that these proposed amendments can be considered as often as three times per year by the Coastal Commission. Mayor Shelton opened the meeting for Public Hearing. MORRO BAY CITY COUNCIL • • Adjourned Meeting - September 13, 1982 Page Two Mr. Terry Orton of Westland Engineering, representing Mr. Harold Biaginni, recommended that Council adopt the modifications as suggested by the Coastal Commission and regain local permit control, and attempt amendments as a later date. Mr. Orton noted that once these policies are implemented, other changes may also be necessary. Grace Melton spoke regarding the spirit of the Coastal Act and reviewed several areas of the LUP that she felt should be changed. Mrs. Melton objected to the.proposed elevated walkway along the Embarcadero, and had several comments regarding coastal access along the Embarcadero and felt the Coastal staff was exceeding its authority. Mr.. Bob Lane urged Council to adopt. the plan as modified and amend those areas needed at a later date. Mr. Scotty Campbell felt that the City should adopt the plan to regain its local control. Mr. Vic Montgomery, representing the VRM property, supported adoption of the plan as modified. Mr. Montgomery felt that the Coastal Commmission would be more willing to deal with individual issues for amendment rather than the entire document. Mr. Ray Gallo felt there were serious deficiencies and concerns to be addressed in the LUP. Mr. Gallo felt that these concerns should be identified when Council responds to the Coastal Commission and if the modifications are accepted, the Council should identify those areas for future amendment. Mr. Gallo objected to the removal of the interim agriculture definition and felt the attitude of the Coastal Commission was to prevent use of surplus water. Mr. Gallo urged Council to deliniate the various areas of concern to the citizens. Councilmember Risley asked Mr. Gallo who he was representing. Mr. Gallo stated that he was speaking both as a private citizen,.and,l. as representative for several clients, including the VRM property. Mr. Ray Kaltenbach concurred that Council should adopt the LUP as modified by the Coastal Commission. Mr. Bruce Elster, of Mid -State Engineering, spoke in opposition to the Coastal Commission's modification regarding the Urban Reserve Line. Mr. Elster, representing Merrill Williams, noted that this change in the Urban Reserve Line did not represent good planning practice and asked if this line is 'relocated what will be the result. Mr. Elster was concerned regarding the Williams property, and explained that as the Plan is now modified, the Williams property is outside of the Urban Reserve Line. Mr. Elster spoke regarding the Williams proposal for a shopping center. . Mr. Ned Rogoway stated that as a former City Planner, he felt there was a misconception regarding the Williams Brothers Shopping Center proposal, and stated that the intent was for a long-term development MORRO BAY CITY COUNCIL • • Adjourned Meeting - September 13, 1982 Page Three Mr. Rogoway elaborated on the proposed Williams Brother Shopping Center, and explained that it would be a neighborhood center, and not a regional center as many people thought, and would be tailored to the ability of the City to serve and demand future growth. Mr. Rogoway noted that this property was the only suitable area for this type of growth and development within the City and that it was not suited for agricultural uses, as shown by several studies including the Agri -Business Group which stated it was not suitable for any type of agriculture. Mr. Rogoway urged Council to make a statement regarding those modifications not acceptable to the citizens of Morro Bay and to re-examine certain areas under the amendment process. Mr. Rogoway provided Council with several handouts and then read a suggested addition to the Resolution provided by staff. Mr. Rogoway urged.Council to include this wording or similar wording in the Resolution. Mr. Howard Gaines stated that he felt the issue was local control, and that the Council should follow the guidance of the Coastal Act. Mr. Gaines also felt that Council should not attempt to appease special interest groups. Mr. Merrill Williams, P.O. 971, Morro Bay, spoke regarding the proposed shopping center, and stated that Williams Brothers had always attempted to work in conjunction with the City and to assist the City in every way possible. Mr. Williams also discussed the companys efforts to the community. Judge Richard Harris, representing the Dendulk interest, felt that Council has no choice but to adopt the plan with the CoastalOCommission's modifications but suggested that. the Resolution should contain language stating that differences do exist between the City and the Coastal Commission and that future amendments would be sought. Mr. Allan Miller spoke in favor of the LUP but noted several concerns regarding the.Urban Reserve Line, which he felt should be expanded, and not reduced., Ms. Wenda Calmes felt the City should have more latitude in building concepts and growth and should plan more for the future. Mrs. Herminia Ward stated that there were ample coastal view sites within the City, and was concerned about the proposed boardwalk and the liability for this walkway. Mrs. Ward felt the City should have the right to decide what is needed and not the State. There was brief Council discussion regarding the public testimony. MOTION: Councilmember Lemons moved that the Public Hearing be continued until the regular meeting of September 13, 1982, at 7:30 p.m. The motion was seconded by Councilmember Risley and carried unanimously. The meeting was adjourned at 5:35 p.m. IjECTFULLY BMI TECI j�� PEy A AN'UTY CLERK MORRO BAY CITY COUNCIL • REGULAR MEETING - AUGUST 23, 1982 RECREATION HALL - 7:30 P.M. ROLL CALL PLEDGE OF ALLEGIANCE - Horace Strong INVOCATION - Bob Whaley, Calvary Baptist Church A. PUBLIC HEARINGS, REPORTS & APPEARANCES A-1 Public Hearing Regarding the Morro Bay Area Water Management Plan A-2 Public Hearing Regarding the Downtown Parking Problems A-3 Public Hearing and Report Regarding Incident Involving Tampering with Vehicle by Morro Bay Garbage A-4 Consideration by the National Oceanigraphic and Atmosphere Association of Designation of Morro Bay as a Marine.Sanctuary A-5 Appeal by Ernest and Catherine Miller to Findings of City Building Official Regarding Sea Harbor Villa Timesharing Development B. UNFINISHED BUSINESS B-1 Ordinance Amending Chapter 5.16 of the Morro Bay Municipal Code RE: Private Patrol (Second Reading) B-2 Ordinance Amending Ordinance 178 (part) and Section 17.44.020 B.1 (c) of the Morro Bay Municipal Code (Second Reading) B-3 Informational Report Regarding Hwy. 41 / Hwy. 1 Underpass Mural as per Caltrans request B-4 Acceptance of Boating and Waterways Grant for Phase I Development of Tidelands Park C. NEW BUSINESS C-1 Correspondence from Sonic Cable TV Regarding Proposal to Increase Rates C-2 Authorization to Petition Regional Water Quality Control Board to Remove Sewage Connection Ban. C-3 Correspondence from James Maul regarding Interpretation of City Zoning Ordinance. D. CONSENT CALENDAR D-1 Award of Bid for Cardiac Monitor and Accessory Equipment for EMT II Program D-2 Adjourned City Council Minutes of August 6, 1982, and Regular Meeting of August 9, 1982. D-3 Designation of Community Development Department as Residential Development Permit Coordinating Center 9 D-4 Resolution for Jack Wagner for Contribution to City of Morro Bay Regarding Barney, the Talking Police Car D-5 Resolution to William and Mark Gatlin for Contribution to City of Morro Bay, Regarding Barney, the Talking Police Car D-6 Contract Extension Approval for Jack Wallace/California-West, Inc. D-7 Approval of Tract Map No. 884 - Filer Corporation D-8 Transit Survey Results - Information Item D-9 Authorization to Proceed with North Main Street FAU Project - Elena Street to Hwy. 41, D-10 Authorization to Provide Red Curbing at 1052 Main Street D-11 Authorization to Submit Annual SB 325 Claim for FY 1982-83 D-12 City of Morro Bay Expenditure Report for the Month of July, 1982 D-13 Approval of Use Permit for Fire Department Muster Activity E. INDIVIDUAL DETERMINATION AND/OR ACTION E-1 City Council E-2 City Attorney E-3 City Administrator /pb s MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 23, 1982 RECREATION HALL - 7:30 P.M. Mayor Shelton called the meeting to order at 7:30 p.m. ROLL CALL PRESENT: Eugene R. Shelton Rodger J. Anderson John Lemons Bruce Risley Bud Zeuschner ABSENT: None STAFF: Paul Baxter Michael T. LeSage John Bressan Murrel Crump Gary Napper Al Olson Mary Sanders Gere Sibbach Peggy Buchanan Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Public Works Director Community Development Director Administrative Assistant Police Chief Recreation Director Finance Director Deputy City Clerk Horace Strong led the Pledge of Allegiance and the invocation was offered by Reverent Bob Whaley, of the Calvary Baptist Church. A. PUBLIC HEARINGS, REPORTS & APPEARANCES A-1 PUBLIC HEARING REGARDING THE MORRO BAY AREA WATER MANAGEMENT PLAN Paul Baxter requested John Bressan to provide the staff report. Mr. Bressan stated that the Water Management.Plan consisted of a continuation and expansion of the plan provided by Brown and Caldwell. .Mr. Bressan explained that the Brown and Caldwell study had given information regarding the quantity and quality of the water while the Department of Water Resources study provided the basis for informed choices for maximum water usage. John Bressan further noted that the DWR Study concerned itself with proper management of water within local basins conservation -techniques and other methods to manage water.. Mr. Bressan informed Council that the draft as presented this evening has been reviewed by the DWR and the City's Water Advisory Committee and unanimously adopted by the Committee with only two issues to be added (subsidence and water rights). Mr. Bressan introduced Mr. Kyoshi Mido and Ken Hatai, the principle authors of the study. Mr. Mido stated that he would withhold his comments until after the public has had the opportunity to comment. MORRO BAY CITY COUNCIL Regular Meeting - August 23, 1982 Page Two Grace Melton, Chairman of the Water Advisory Committee stated that the Committee was in favor of adoption of the Preliminary Draft Plan. Mrs. Melton introduced those members of the Committee present in the audience: Clint Milne, Bill Leonard, Ray Kaltenbach, Bob Lane, Angela Grenz and Pat Nagano. Mayor Shelton opened the Public Hearing. Morrie Crider presented the Mayor with the signatures of supporters of the Water Management Plan. Mr. Ernie Miller stated that after studying the plan he felt it was a logical and step-by-step type of management plan that the City should follow. Mr. Miller also felt that the use of recharge basins was something that the community could possibly become involved with. Mr. Bob Lane felt that the most important aspect of water management was to get the maximum amount of water usage for the least amount of money. Mr. Lane noted that there appeared to be a conflict between the recommendation in the preliminary draft which called for the construction of additional wells and a report dated 8/81 which stated that additional wells would diminish the water returns of all wells. 1' Mr. Peter Diffley submitted a chart to Council regarding Salt Water Intrusion, dated 1972. Mr. Diffley provided a history of various water analysis reports prepared over the past few decades. Mr. Diffley urged Council to realize that this report is not a "quick fix" solution to Morro Bay's water problems. Mr. Diffley read several articles regarding the past water problems and droughts in Morro Bay, and referred to past reports by other agencies. Joe Giannini expressed his concerns regarding the DWR plan to Council, and noted that in his opinion the report was misleading, and projected more water than would be available. Mr. Giannini also questioned why the Coastal Commission did not approve of.the plan and wanted additional information. Mr. Ray Gallo voiced his support of the plan, and stated that Morro Bay needed to begin the solution to the problem, and not wait for additional studies to be performed again. Mr. Gallo stated that the DWR Plan seemed to have practical recommendations, such as relocation of wells, and recharge basins. Mr. Gallot felt approval of this plan would start the process of water management. Mr. Ray Kaltenbach concluded that the City will not be able to grow rapidly as long as it is dependent upon wells for its water. Howard Gaines felt the report was remiss in addressing the financial aspect of the recommendations. Mr. Gaines supported the concept of percolation ponds as a water management and conservation method. MORRO BAY CITY COUNCIL Regular Meeting - August 1982 • Page Three Jody Giannini agreed that some sort of growth pattern in Morro Bay is necessary however he felt that the amount of water available as stated in the OWR Plan was overestimated, and noted that many times the farmer's water has dryed up when the City still has water, and that areas along the Toro Creek do not have the amount of water stated in the plan. Sylvia Cook noted that numerous reports and study have been made costing many dollars to the City, to request "experts" opinions. Ms. Cook felt that these opinions seemed to differ with each report, and felt that the City should make its decision on this report. Ms. Roxanne Gerber stated that she had owned a lot on Napa Street since 1975, and felt that no additional studies should be made, and Morro Bay should decide on a management plan so that building could resume. M'May Diffley commented that she didn't feel anyone wanted the moratorium to continue but felt the City should use caution in basing any increase in construction on this plan or any other plan. MOTION: Councilmember Zeuschner moved that the Public Hearing be closed. The motion was seconded by Councilmember Lemons. There was additional public comment and Councilmember Zeuschner withdrew his motion, and Councilmember Lemons withdrew his second. Mr. Clint Milne of the Water Advisory Committee stated that he had been concerned over two issues not addresses in the Draft Report; that of water rights, and subsidence. However, he noted that he had seen the recent additions to the report covering these two areas and was more than satisfied. Mr. Milne provided a short explanation to the concern regarding salt water intrusion, and noted that the areas involved in this problem are within the tidal prism, and salt water intrusion might normally occur as the tide flows in and out. Mr. Milne supported the idea of farmers selling the City water during drought years, and noted that the Department of Water Resources would have no motive or reason to misrepresent anything in their report. Ms. Angela Grenz stated that as the Environmental Engineer working with the Water Advisory Committee, she had also worked with Brown and Caldwell and informed Council that there was no way either DWR or Brown and Caldwell were out to "fool" Morro Bay. Ms. Grenz also noted that with use of the recharge basins, water storage during wet years could provide for dry years. Mr. Kiyoshi Mide first emphasized that the Department of Water Resources had no motive whatsoever in preparing this plan. Mr. Mido explained that at the time the report was presented to the Coastal Commission, it had just been completed, and as the information was critical to Morro Bay, Mr. Mido made the presenta- tion to the Commission. Mr. Mido acknowledged that the expert's opinions may have differed over the years, but explained the difference as advancements in knowledge of physical features of water and changes in methods of conser- vation and water management. Mr. Mido stated that the report had found that more than an actual lack of water, the problems Morro Bay had encountered had been mainly due to an inadequate distribution system (wells and pumping system) such as a concentration of wells in one site which increases the draw down on the water basins. MORRO BAY CITY COUNCIL Regular Meeting - August 23, 1982 Page Four Mr. Mido stated that the DWR Preliminary Draft had addressed financial concerns, in that it had only recommended solutions which were the most financially feasible to Morro Bay such as well relocation, recharge basins, and water conservation (as opposed to expensive dams, etc.). MOTION: Councilmember Risley moved that the Public Hearing be closed. The motion was seconded by Councilmember Zeuschner, and carried by the following roll call vote: AYES: Risley, Zeuschner, Anderson, Lemons, Shelton NOES: None ABSENT: None Councilmember Risley referred to the Brown and Caldwell Report's hydrologic basin map of Morro Creek, and the upper basin on this map and asked if this area had been considered as a source of water. Mr. Mido stated that this area had been considered for potential use, however it was a large distance from the City, and it was felt that if the recommendations of the report were adopted, there would not be a need for this additional water. Councilmember Risley asked if a pumping system or pipeline from this basin to other closer basins could be effective. Mr. Mido stated that this was a possibility. Councilmember Risley questioned the use of reclamation in this plan, and asked how essential it was to the DWR's recommendation. Mr. Mido stated that although reclamation is a viable plan for Morro Bay, it.is financially less feasible than other available sources. Councilmember Risley noted that although the DWR report stated that more than sufficient amounts of water were available through the year 2000, it also.recommended that.the City import water. Mr. Mido stated that for long-range planning, the importation of water might be necessary, and that the amount of water available is adequate for slow controlled growth, however for sustained growth additional water would be needed. Councilmember Risley noted that the report was somewhat ambiguous regarding the possible presence of tule gas in the water. Councilmember Risley asked if there wasn't a filtration system available to remove this gas. Mr. Ken Hatai stated that the use of a chlorine filtration system would remove any possible presence of tule gas or iron maganese. i MORRO BAY CITY COUNCIL Regular Meeting - August 23, 1982 Page Five Councilmember Zeuschner felt that the recommendations made by the DWR plan were excellent, and.he had no reservations about implementing the plan. Councilmember Zeuschner felt that Mrs. Diffleys concerns regarding using the plan as a basis for building however were appropriate, and stated that -perhaps the best method would be to implement the plan and have proven results prior to any additional building increase. Councilmember Lemons noted that this was the Preliminary Draft of the Water Management Plan, and that decisions regarding costs and actual implementation of —the Plan would come later, after the final report has been prepared. MOTION: Councilmember Lemons moved that Council accept the Water Advisory Committee's recommendation of the Draft Plan and forward this approval to the Department of Water Resources. The motion was seconded by Councilmember Risley and carried by the following roll call vote: AYES: Lemons, Risley, Anderson, Zeuschner, Shelton NOES: None ABSENT: None Mayor Shelton stated that he felt this report from the DWR was a step in the right direction, as it recommended solutions to Morro Bay's water problems using the local water basins and not imported water as part of the solution. Mayor Shelton also acknowledged that changes in knowledge and data available have contributed to the differing opinions of past studies. Councilmember Anderson concurred that use of available local water was the best way for Morro Bay to proceed currently, although the City should.be prepared for the eventual need to import water, when it becomes a more viable alternative. Council recessed at 9:20 p.m. and reconvened at 9:35 p.m. A-2 PUBLIC HEARING REGARDING THE DOWNTOWN PARKING PROBLEMS Mr. Baxter stated that the City had received a letter from Mr. William Schaffer, representing the Merchants Committee, requesting agenda time to discuss parking enforcement problems in the downtown area. Sal Cadenasso spoke on behalf of Mr. Schaffer and noted that lack of parking in the downtown had been partially caused by employer/employees using the commercial parking areas, rather than sidestreets, or other off street parking -Mr. Cadenassonoted that the merchants had been in contact with the Morro Bay Police Department and they were cooperating in an effort to increase enforcement. Mayor Shelton opened the Public Hearing. MORRO BAY CITY COUNCIL Regular Meeting - August 23, 1982 Page.Six Mr. Albert George related his concerns regarding the City's approval of new development (i.e. Century Federal Savings) without adequate off-street parking. Sylvia Cook stated that the parking problem has existed for a number of years, and unless public parking is provided off-street, only cooperation among the downtown merchants in making sure neither they nor their employees park in commercial parking areas, as well as prompt reporting of violators ;will be effective. Mr. Bob Finnley stated that information has been distributed to all downtown merchants advising them of this situtation, and urging their cooperation in the parking problem. Mr. Finnley also felt that in addition to employee parking problems, tourist who park in one area and go off for the day, or residents who leave cars in the downtown area are also a major problem. MOTION: Councilmember Zeuschner moved that the Public Hearing be closed. The motion was seconded by Councilmember Lemons, and carried by the following roll call vote: AYES: Zeuschner, Lemons, Anderson, Risley, Shelton NOES: None ABSENT: None Mayor Shelton asked for staff's recommendation to Council. Mr. Baxter stated that Al Olson or John Bressan might wish to comment on the Parking Study done in 1980. Al Olson stated that the study done in 1980 had shown that no significant parking problems existed in the downtown, as the turn -over rate was very rapid and average utilization of the parking was 65%, with a high of 85%. Chief Olson did feel however, that without the ability to enforce the parking consistently, the time limit signs should be removed. John Bressan agreed that there did not seem to be a widespread problem and that it was more of a perceived problem - that of not wanting to park anywhere but in front of the business to be visited. Mr. Bressan stated that an availability study had shown that in most cases adequate parking was never more than 1 block from the area desired. Mayor Shelton asked if the merchants had a copy of this report available to them. . Mr. Finnley stated that they had seen the report, and did feel that with the steps as mentioned above, the problem seemed to be under control. Councilmember Risley commented that neighborhood patrols as mentioned earlier were an excellent idea. Councilmember Lemons asked Mr. Finnley if he felt enforcement would be as effective if the signs were removed. MORRO BAY CITY Regular Meeting Page Seven COUNCIL 0 • - August 23, 1982 Mr. Finnley stated that he felt enforcement would not be possible without the posted time limit signs. Councilmember Anderson agreed that some people are deterred by the signs alone, but wondered if the City could not utilize some sort of_foot or bicycle patrol. Al Olson informed Council that at the time the study was done, the cost. for a parking enforcement officer had been studied and the cost had been prohibitive ($26,000 lst.year, 19,000 subsequent years, with approximately $2,000 maximum revenue from fines). Mayor Shelton concluded that the problem seems to be under control with the steps initiated by the Merchants, and stated that with no objection from Council, this matter would be referred back to staff to.provide.additional solutions.There were no objections. A-3 'PUBLIC -HEARING AND -REPORT REGARDING INCIDENT INVOLVING TAMPERING Mr. Baxter reviewed the incident involving a private vehicle and Morro Bay Garbage, and stated that this matter had been continued pending a court decision. Paul Baxter informed Council that the charges had been dismissed as a. result of an out -of -court agreement between the two parties, and was now back before Council for their action. Mr. Baxter reviewed the Refuse Franchise Board's recommendation for a $250.00 fine. Mayor Shelton opened the Public Hearing. There were no public comments. MOTION: Mayor Shelton moved that the Public Hearing be closed. The motion was seconded by Councilmember Anderson and carried by the following roll call vote: AYES: Shelton, Anderson, Lemons, Risley, Zeuschner NOES: None ABSENT: None Councilmember Lemons asked how the matter had been resolved. Mr. Mott, attorney for Morro Bay Garbage, stated that Morro Bay Garbage had reimbursed the vehicle owner for damages. Councilmember Lemons questioned the City's ability to levy a fine according to the language of the Ordinance. Mr. LeSage agreed that the term "fine" might be incorrect and requested additional time to review the language of the Ordinance. MOTION: Councilmember Risley moved that Council uphold the Refuse Board's recommendation to levy a $250.00 fine. The motion was seconded by Councilmember Anderson. MORRO BAY CITY COUNCIL 0 0 Regular Meeting - August 23, 1982 Page Eight Mayor Shelton noted that the Refuse Board had referred to Section 8.16.380 as the authority to levy this fine. Alan Miller representing the Refuse Board stated that their intention had been to accomplish a public relations show of "good faith" on the part of Morro Bay Garbage, but that if the Ordinance does not provide for fines, they would want to withdraw that portion of their recommendation. Mr. LeSage noted that the Section of the Ordinance referred to by Mayor Shelton allowed only the person damaged to file a complaint or request for action, and then the fine could be levied in his behalf. Mr. LeSage requested additional time to review this provision. MOTION: Councilmember Lemons moved to table this matter until after item A-4. The motion was seconded by Councilmember Risley and carried unanimously. (5-0) A-4 CONSIDERATION BY THE NATIONAL OCEANIGRAPHIC AND ATMOSPHERE Mr. Baxter informated Council that this matter had been brought back before Council for their direction. Mr. Baxter noted that information had been received from the NOAA that Morro Bay had been nominated for possible designation as a Marine Sanctuary. Mr. Baxter reviewed the process as indicated in a letter from Chelsea International, as a multi -step process of selection. Mr. Baxter noted that if selected for consideration, an EIR would be necessary prior to any final designation. Mayor Shelton opened the Public Hearing. Mr. Al Sweitzer representing County Service Area #9 informed Council that the County had not been aware of this consideration, and would in his opinion have more voice in the matter than Morro Bay. Mr. Sweitzer urged Council to withhold action pending additional information to be provided to the County. Mr. Harold Weiman felt that this designation would be an extreme compliment to Morro Bay, and would aid in attracting wildlife enthusiasts from all areas, and could possibly be a benefit in modernizing the Natural History Museum. Mr. Weiman noted that the entire Bay area was to known for its wildlife. Mayor Shelton stated that in his perception of a Marine Sanctuary, the current uses would not be altered or affected. Mr. Baxter felt that it was premature to consider what uses would or would not be permitted, and this consideration was in its preliminary stages. MORRO BAY CITY Regular Meeting Page Nine COUNCIL w - August 23, 1982 Mr. Henry Meyers felt that the present uses would not be impacted and designation of a Marine Sanctuary would not prevent public or private uses as long as resources are not threatened. Grace Melton felt that consideration should be given to Los Osos and future hearings should be held. Mayor Shelton assured the public that additional public hearings on this matter would be held if Morro.Bay was considered for such designation. MOTION: Councilmember Zeuschner moved that Council approve in concept the designation of Morro Bay as a Marine Sanctuary and authorize staff to proceed with the next step in this process, and to direct that the County of San Luis Obispo, and County Serve Area #9 be kept informed of the progress of this matter, as well as other interested parties. The motion was seconded by Councilmember Risley, and carried unanimously. (5-0) Councilmember Lemons noted that certain information not provided in this letter should be sought by staff. Mr. Weinman informed Council that several agencies had approved this idea in concept. There was additional discusson regarding the impact of designation as a Marine Sanctuary.. A-3 (CONTINUED FROM ABOVE) Mr. LeSage informed Council that after review of the Ordinance, it did not appear that the City had the authority to levy fines against the Garbage Company, and that a written complaint must be filed by a customer of Morro Bay Garbage prior to this action being taken. Mr. Mott stated that the City did not then have the right to impose a fine upon his client. Councilmember Anderson suggested that staff develop revised language to assure that this avenue was open to the Council in the future. Councilmember Anderson also suggested perhaps a substitute motion to have a $250.00 contribution made by Morro Bay Garbage would accomplish the same purpose. Mayor Shelton felt that there would be no benefit to the City or the Garbage Company if such a fine or donation was imposed, and noted that the Garbage Company had been reprimanded and this should be sufficient action. Councilmember Risley agreed that there would be nothing to gain by such a fine. MORRO BAY CITY Regular Meeting Page Ten COUNCIL - August 23, 1982 Councilmember Risley withdrew his motion and Councilmember Anderson his second. MOTION: Councilmember Zeuschner moved that City Council formally reprimand Morro Bay Garbage for their imprudent actions in this matter. The motion was seconded by Councilmember Anderson and carried unanimously. (5-0) Councilmember Lemons suggested that a memorandum from staff to the Refuse Board be sent regarding the actions taken. A-5 APPEAL BY ERNEST AND CATHERINE MILLER TO F Paul Baxter requested that Murrel Crump provide Council with the staff report. Mr. Crump stated that it had not been made clear to staff exactly what was being appealed, and therefore he would request a presentation by the Millers.. Mr. Crump noted that he would defer to Mr. LeSage regarding the type of appeal to be held. Mr. LeSage asked to hear from the Millers. Mr. Miller briefly reviewed his project, and stated that he would like Council to provide an official statement of what Sea Harbor Villas was, a timesharing development. Mr. Miller gave a detailed description of the project, and explained that the units will be sold as individual dwelling units, and would not be rented out unless the project were to fail, in which case, the would need City Council approval to convert to a motel. Mr. Miller noted that the project is not economically feasible as a motel due to.it only having 13 units. Councilmember Zeuschner asked if conversion to handicapped standards would be a barrier to any future conversion to motel or apartment units. Mr. Miller stated that if such a conversion were to take place, the required handicapped facilities would be installed. Mr. LeSage informed Council that there were basically three issues to be considered., 1) whether or not the facility is a.timeshareing development or a motel by virtue of the fact that.it must be rented if any unit is vacant for more than 3 days, 2) whether the club house facility is type A or B occupancy and would require handicapped facilities, and 3) whether these issues can be heard by Council or a special appeals board should be designated. Tom Courtney, developer of the Sea Villas, stated that he had done extensive research into the concept of timesharing, and felt that since it was entirely for the owners use, and not available to the MORRO BAY CITY COUNCIL Regular Meeting - August 31 1982 Page Eleven • public, that handicapped standards should not be required. Mr. Courtney noted that the Coastal Commission now has the category of timesharing, and it was they who required the word motel to be included in this application. Councilmember Anderson felt that timesharing as viewed by the Coastal Commission was that the motel use would not come into effect unless the timesharing were to fail. Mr. LeSage noted that the Coastal Commission has indicated that even if it is.a timesharing development, if a unit is vacant for more than three (3) days, it must be rented. Mrs. Miller stated that this was only true if the units had not been sold. Bill George, City Building Official, explained the decision and designation of motel for this project. Mr. George stated that the State Code has modified the Uniform Building Code to reflect modified handicapped standards. Mr. Crump reviewed the Coasl Commission decision and stated that the units must be rented if vacant for 3 or more days, and must be made available to the public. Mayor Shelton opened the Public Hearing. Dick Dennison felt that there was a misapprehension regarding timesharing and noted that it was becoming very common throughout the world. Bruce Elster, Planning Commissioner, reviewed the processing through the Planning Commission, and noted that on many issues a strict application. of the Zoning Ordinance did not apply. Mr. Elster stated that.the clubhouse had been an area of concern to the Planning Commission, however it was determined that it was an extension of.the private ownership. Sheri Barker supported the project and felt the City was being too restrictive. Grace Melton displayed an article from the March 6, 1980, issue of the Sun Bulletin calling the project a "timesharing" development. Steve Simas felt that this project would always remain a timesharing development,,but also urged.the City to provide information at the time of application, to,avoid problems after approval had been granted. Mr. Crump informed Council that at the time of application, the City had no indication that rentals might be a possibility, and that this was the condition of the Coastal Commission. MOTION: Councilmember Lemons moved that the Public Hearing be closed. The motion was seconded by Councilmember Zeuschner and carried unanimously. (5-0) MORRO BAY CITY COUNCIL • • Regular Meeting - August 23, 1982 Page Twelve Councilmember Anderson felt that it was clear that the intent of the project was to be a privately owned timesharing development and felt that Council should approve this idea. MOTION: Councilmember Lemons moved that the City Council find that this project is a timesharing development and not a motel, and as such will not require handicapped standards in either the dwelling units or the club house facility. The motion was seconded by Councilmember Anderson and carried unanimously. (5-0) Councilmember Zeuschner noted that Mr. George had been interpreting the Code in his decision, however Council had the opportunity to.use discretion in this case, as it was clear that this was a.timesharing project. Mayor Shelton stated that the second issue was to determine whether or not the club house facility was an assembly building and would require public access.. Councilmember Lemons asked what would be involved in converting the club house in the event the facility were to be used as a motel. Mr. Courtney stated that the owners were willing to place handicapped facilities in the building if this were to take place_. Mr. Miller stated that regardless of any rental taking place within the building, the club house would remain strictly for owners, and would only be accessible by key.. Mr. George noted that this would not prevent one owner from having a gathering of more than 50 people, as the building will accomodate 90 people._ MOTION: Councilmember Zeuschner moved that the City Council find that this club house building is not an assembly building, but is a private club house for owner's use only, and as such does.not require handicapped facilities. The motion was seconded by Councilmember Lemons and carried unanimously. (5-0) Council recessed briefly at 11:55 p.m B. UNFINISHED BUSINESS and reconvened at 12:00 midnight. B-1 ORDINANCE AMENDING CHAPTER 5.16 OF THE MORRO BAY MUNICIPAL CODE RE: PRIVATE PATROL (2nd Reading) , B-2 ORDINANCE AMENDING ORDINANCE 178 (part) AND SECTION 17.44.020 B.1 OF THE MORRO BAY MUNICIPAL CODE (2nd Reading). Paul Baxter requested that items B-1 and B-2 be considered jointly. Mr. Baxter stated that item B-1 was the second reading of an Ordinance to MORRO BAY CITY Regular Meeting Page Thirteen COUNCIL • • - August 23, 1982 bring into conformance with State law the Municipal Code regarding private patrols, and item B-2 was the second reading of.an Ordinance to exempt from City parking standards certain lots which heretofore had been required to provide additional parking if improvements had been made on the property. MOTION: Councilmember Risley moved that these Ordinances as stated above be read by title and number only. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Risley, Zeuschner, Anderson, Lemons, Shelton NOES: None ABSENT: None Paul Baxter read "An Ordinance Amending Chapter 5.16 of the Morro Bay Municipal Code Regarding Private Patrol" and "An Ordinance Amending Ordinance 178 (part) and Section 17.44.020 B.1 (c) of the Morro Bay Municipal Code". MOTION: Councilmember Lemons moved that this constitute the second reading and that these Ordinances as stated above be adopted as final readings. The motion was seconded by Councilmember Zeuschner, and carried by the following roll call vote: AYES: Lemons, Zeuschner, Anderson, Risley, Shelton NOES: None ABSENT: None B-3 INFORMATIONAL REPORT REGARDING HWY 41/HWY 1 UNDERPASS MURAL AS PER Mr. Baxter explained that staff had reviewed participation by other agencies in this project as requested by Council, and _it had been determined that if additional proposals were to be considered, it would be approximately 1 year before the project could begin. Staff had contacted several groups such as the Morro Bay Art Association, and had not found any interest.in submitting a proposal. Staff would recommend that Council give final approval to the Red Wind project previously submitted. MOTION: Councilmember Zeuschner moved that Council authorize staff and Cal Trans to proceed with the Red Wind project, and to continue discussions with other groups such as the Morro Bay High School regarding future projects. The motion was seconded by Councilmember Risley and carried unanimously. (5-0) B-4 ACCEPTANCE OF BOATING AND WATERWAYS GRANT FOR PHASE I DEVELOPMENT OF TIDELANDS PARK Paul Baxter explained that the City had been awarded $313,000 for the purpose of developing Phase I of the Tidelands Parks, and in accordance with the construction and operation agreement the City of Morro Bay must MORRO BAY CITY COUNCIL • Regular Meeting - August 23, 1982 Page Fourteen , approve the receipt of funds and agree the Department of Boating and Waterways in the original grant application. 0 to enter into a contract with to perform the work as proposed Councilmember Lemons asked if this would commit Morro Bay to extending Morro Avenue. John Bressan stated that there were no conditions attached to this phase of the park. MOTION: Councilmember Risley moved that Council approve the receipt of the grant from the Department of Boating and Waterways in the amount of $313,000, and authorize the Mayor to sign the contract regarding Phase I development of Tidelands Park as submitted. The motion was seconded by Councilmember Anderson and carried by the following roll call vote: AYES: Risley, Anderson, Lemons, Zeuschner, Shelton NOES: None ABSENT: None C. NEW BUSINESS Mayor Shelton added the following item to the agenda as item C-1: C-1 FIRST ANNUAL HARBOR FESTIVAL - SPONSORED BY THE COMMUNTIY ROUNDTABLE Mary Sanders stated that Rosemary Sheets of the Community Roundtable was proposing a project to help support the PARTNERS program as well as other Recreation activities. This project would be the 1st Annual Harbor Festival. Rosemary Sheets reveiwed the proposal for the Harbor Festival and stated that it would be to benefit community service organizations. Rosemary gave Council the tentative date of Sunday October loth, and requested Council authorization to proceed with the planning of the Festival. Councilmember Lemons questioned the use of Coleman Drive, and asked if the City had jurisdiction in this area. John Bressan agreed that it was a gray area, but that it is within the City limits. Councilmember Lemons also had certain concerns regarding traffic and circulation in.the area proposed. MOTION: Councilmember Zeuschner moved that Council approve the proposal for a Harbor Festival as submitted providing that traffic and circulation conditions be satisfied according to the appropriate city staff. The motion was seconded by Councilmember Anderson and carried unanimously. (5-0) MORRO BAY CITY COUNCIL • Regular Meeting - August 23, 1982 Page Fifteen Mayor Shelton inquired as to insurance for this activity. Mary Sanders stated that staff would work the details out concerning insurance. C-2 CORRESPONDENCE'FROM'SONIC'CABLE TV REGARDING'PROPOSAL'TO INCREASE RATES Mr. Baxter informed Councilthat he.had recevied correspondence from Sonic Cable TV stating the necessity to raise to rates (to $9.05 for residential and'$3.50 for commercial). Mr. Baxter noted that it had been inferred within the letter that Sonic would be interested in re -opening discussion regarding an extension of the franchise (perhaps in -lieu of rate increases). Bill Hargan, Sonic TV representative, explained that discussions regarding franchise extension had terminated approximately one year ago, and that Sonic would like to re -open these negotiations. Mr. Hargan also noted that under the present system, rate increases are restricted to the percentage of CPI however it was Sonic's feeling that the commercial users have been being subsidized by the residential users, and this would be one area to be discussed also. MOTION: Councilmember Zeuschner moved that staff be authorized to re-enter negotiations with Sonic Cable TV regarding possible franchise extension and rate structure. The motion was seconded by Councilmember Anderson and carried unanimously. (5-0) C-3 AUTHORIZATION. TO PETITION REGIONAL WATER QUALITY CONTROL BOARD TO Paul Baxter reviewed the history of the current sewage hook-up ban, and stated that information was being prepared to be submitted to the Regional Water Quality Control Board for their September loth meeting. MOTION: Councilmember Zeuschner moved that Council authorize staff to proceed with the final application to the Regional Water Quality Control Board to lift their Cease and Desist Order No. 82-26. The motion was seconded by Councilmember Lemons and carried unanimously. (5-0) C-4 CORRESPONDENCE FROM JAMES MAUL REGARDING INTERPRETATION OF CITY ZONING ORDINANCE Mr. Baxter informed Council that correspondence had been received from Mr. James Maul requesting Council's interpretation of the City Zoning Ordinance Section regarding Professional Offices. Mr. Maul has requested that the City continue its broad interpretation of the Ordinance as in the past, and that pending a Planning Commission amendment to that Ordiance, that he be allowed to lease to certain activities which would not be permitted under the current ordinance interpretation. MORRO BAY CITY COUNCIL • Regular Meeting - August 23, 1982 Page Sixteen Mr. Maul noted that the Planning Commission had indicated that a change should be made in the Ordinance that he was just requesting Council's interpretation of the Ordinance until that change was made. MOTION: Councilmember Risley moved that Council direct staff to use a broad interpretation of the Section of the City Zoning Ordinance regarding Professional Offices pending revision by the Planning Commission. The motion was seconded by Councilmember Zeuschner, and carried unanimously. (5-0) D. CONSENT CALENDAR Paul Baxter reveiwed the following items on the Consent Calendar: D-1 AWARD OF BID FOR CARDIAC MONITOR AND ACCESSORY EQUIPMENT FOR EMT II PROGRAM Mr. Baxter recommended that Council award the bid for the Cardiac Monitor and accessory equipment for the EMT II Program to Physio-Control Corporation in the amount of $9,047.10, to be funded from the Fire Department budget. D-2 CITY COUNCIL 6, 1982, AND REGULAR MI Paul Baxter recommended that Council approve the above mentioned minutes as submitted by the Deputy City Clerk. D-3 DESIGNATION OF DEPARTMENT CENTER Mr. Baxter recommended that Council adopt the Resolution which would designate the Community Development Department as the Residential Development Permit Coordinating Center as required by recent changes in State law. D-4 FOR JACK ION TO CITY OF Mr. Baxter recommended that Council adopt the Resolution as submitted. D-5 RESOLUTION TO WILLIAM AND MARK GATLIN FOR CONTRIBUTION TO THE CITY Paul Baxter recommended that Council approve the Resolution as submitted. D-6 CONTRACT EXTENSION APPROVAL FOR JACK WALLACE/CALIFORNIA-WEST, INC. Mr. Baxter recommended that Council approve the contract as submitted for an extension of Mr. Wallace's property management services, noting a change of dates from Aug. 1 to Aug. 23 and striking paragraph 3A and making 3B become 3A. MORRO BAY CITY COUNCIL • • Regular Meeting - August 23, 1982 Page Seventeen D-7 APPROVAL OF TRACT MAP NO. 884 - FILER CORPORATION Mr. Baxter recommended that Council approve the Resolution approving Tract 884 as submitted. D-8 TRANSIT SURVEY RESULTS - INFORMATIONAL ITEM Mr. Baxter noted that no action was required on this item. D-9 AUTHORIZATION TO PROCEED WITH Paul Baxter recommended that Council authorize staff to proceed with the FAU project by adoption of the attached Resolution as submitted. D-10 AUTHORIZATION TO PROVIDE RED CURBING AT 1052 MAIN STREET Mr. Baxter recommended that Council authorize staff to paint the curb red in front of1052 Main to prevent possible traffic hazards. D-11 AUTHORIZATION TO SUBMIT ANNUAL SB325 CLAIM FOR FY 1982-83 Mr. Baxter recommended that Council authorize staff to proceed with submittal of the claim documents by adoption of the attached Resolution. D-12 CITY OF MORRO BAY EXPENDITURE REPORT FOR THE MONTH OF JULY, 1982 Paul Baxter recommended that Council approve the expenditure report as prepared by the Finance Director for the month of July, 1982. D-13 APPROVAL OF USE PERMIT FOR FIRE DEPARTMENT MUSTER ACTIVITY Mr. Baxter recommended that Council approve the Use Permit for the September 17-19 Firemen's Challenge Muster, in conjunction with the Chamber of Commerce. Councilmember Zeuschner noted one correction to the City Expenditure Report., which had listed 2 travel advances paid to himself, where one was actually paid to Councilmember Risley. Mr.. Sibbach stated that his error would_be corrected. MOTION: Councilmember Lemons moved that the Council approve the Consent Calendar with the corrections as stated above. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Lemons, Zeuschner, Anderson, Risley, Shelton NOES: None ABSENT: None E. INDIVIDUAL DETERMINATION AND/OR ACTION E-1 CITY ATTORNEY Mr. LeSage requested a brief closed session to discuss the Ashurst Agreement. MORRO BAY CITY COUNCIL Regular Meeting - August 23, 1982 Page Eighteen . E-2 CITY COUNCIL Councilmember Anderson reported briefly on the North Coastal Transit meeting held on August llth. Councilmember Risley informed Council he -had attended his first meeting of the Economic Opportunity Commission. E-3 CITY ADMINISTRATOR Mr. Baxter announced the resignation of Mary Sanders, Recreation Director and also noted that there will be a vacancy on the Refuse Franchise Board left by Mr. Allan Miller. Mr. Baxter asked Council direction regarding the appointment of ex-officio members to various City committees. Councilmember Lemons was opposed to idea as being restrictive or influential to the committee or board. Councilmember Risley noted that he had attended both a meeting of the Harbor Advisory Board and the Refuse Board, however only as an observer. Mary Sanders noted that the ex-officio member to the Recreation Commission was. included as a part of the Ordinance and an amendment would be necessary to remove it. Council concurred that no ex-officio members should be chosen, and directed staff to prepare an amendment to the Ordinance regarding the Parks and Recreation Commission. MOTION: Councilmember Lemons moved that the meeting be held in a closed, session. The motion was seconded by Councilmember Anderson and carried unanimously. (5-0). .The closed session began at 12:35 a.m. Council resumed an open session at 12:50 a.m. MOTION: Councilmember Lemons moved that the water agreement prepared by the City Attorney between the City and Delmar Ashurst/ Roandoak of God be accepted and that the Mayor and Clerk be authorized to sign on behalf of the City. The motion was seconded by=.Councilmembex'Zeuschner"and carried by'.the following roll call vote: AYES: Lemons, Zeuschner, Anderson, Risley, Shelton NOES: None ABSENT: None MOTION: Councilmember Lemons moved the meeting be adjourned. The motion was seconded by Councilmember Zeuschner and carried unanimously. MORRO BAY CITY COUNCIL Regular Meeting - August 23, 1982 Page Nineteen The meeting was adjourned at 12:53 a.m. RESPECTFULLY SUBMITTED, PE6GY BUCHMAN DEPUTY CITY CLERK 6 4 MORRO BAY CITY COUNCIL ADJOURNED MEETING/BUDGET AUGUST 21, 1982 , RECREATION HALL - 1:00 P WORKSHOP M. Mayor Shelton called the meeting to order at 1:00 p.m. ROLL CALL PRESENT: Eugene R. Shelton Rodger J. Anderson John Lemons Bruce Risley Bud Zeuschner ABSENT: None STAFF: Paul Baxter John Bressan Murrel Crump Gary Napper Al Olson Mary_Sanders Stan Thomas Mayor Councilmember Councilmember Councilmember Councilmember City Administrator Director of Public Works Community Development Director Administrative Assistant Police Chief Recreation Director Fire Department Paul Baxter reviewed the report regarding Budget options. Mayor Shelton opened the Public Hearing. Katherine Walling felt that the City's expenditures were not comparable to other cities of.similar size in San Luis Obispo County, and proposed that the Council adopt a 10% cutback and consolidate programs. . Howard Gaines spoke regarding several aspects of the budget, including employee figures, use of Coastal Grant Funds, and cuts in operating costs. Mr. Gaines referred to the FY 78-79 budget, and felt that the City should institute similar cuts. Mr. Gaines. also noted. that the Council had not settled the question of sewer rates, and felt that the rates were already too high. Ms: Frances Prosser stated her preferences regarding budget cuts, and felt that the storm drain project should not be dropped, and that instead of Fire Department re -roofing and a new PA system, the City should review Park Maintenance expenditures. MOTION: Councilmember Lemons moved that the Public Hearing be closed. The motion was seconded by Councilmember Rodger Anderson and carried by the following roll call vote: AYES: Lemons, Anderson, Risley, Zeuschner, Shelton NOES: None ABSENT: None MORRO BAY CITY COUNCIL Budget Workshop - August Page Two 6 21, 1982 Gere Sibbach reported on City reserves and provided Council with a reconstructed reserve picture regarding changes in revenues and expenditures for the City. He explained that a 3% increase in expenditures has been offset by a 15% increase in revenues. Mr. Sibbach's statement itemized that there will be a proposed 1.695 million dollar reserve for FY 82-83. Councilmember Zeuschner inquired as the method of grant fund reimbursements, as well as how these funds are "recycled". Robert Lane asked if the City had addressed the drop in interest rates. Mr. Sibbach stated that this had been considered. Howard Gaines pointed to the decline in the inflation rate and asked if the City was instep with the Gann Initiative. Mr. Sibbach again answered in the affirmative. Councilmember Risley commented that he would still like a further explanation of total expenditures, and why these.expenditures are not met by revenues. Councilmember Risley asked if the.City had an operating deficit. Mr. Sibbach stated that the difference is the money available to expend for capital projects, and noted.that the reserves projected are probably accurate. . Councilmember Lemons initiated a Council discussion regarding priorities for the 82-83 budget. Councilmember Lemons voiced his.opposition to an across the. board 10%.cutback, and felt that cutbacks should not be made in the Police and Fire services. Councilmember Lemons felt there are many ways to reduce the budget and noted.that many services were already.down due to inflation. Councilmember Risley felt that the figures provided by Mr. Sibbach put a . better. light on the.City's financial condition, and agreed that the. City should provide increased services, but only if there was an equal increase in revenues. Councilmember Zeuschner stated that the Options as provided by staff contained the figures he was looking for however he.felt that there was a need to look at real dollars,.not inflated ones when making cuts. Councilmember Zeuschner noted that staffing comparisons between other cities were not valid unless you also compared the actual services provided also. Councilmember Zeuschner stated that the Council could improve upon the proposed budget but should hold the line at a 10% reduction.. Councilmember Zeuschner also suggested that Council consider Option I, with the.fire engine retained as well as the floating docks. John Bressan briefly described the floating dock project for Council. MORRO BAY CITY COUNCIL • • Budget Workshop/August 21, 1982 Page Three Councilmember Risley referred to his previous experiences with budget cuts, and felt that although the City should not make extreme personnel cutbacks, no additional employees should be hired, and Council should provide strong direction to staff regarding priorities. Councilmember Risley stated that in his opinion there was still "fat" in the City budget, and the Administration had not provided a change in direction. Councilmember Risley objected to cutting the PARTNERS program, and the Neighborhood Watch program, and felt that these programs were partially self-help and were successful in their purpose. Councilmember Lemons noted that there had been a 10% growth in population since 1976 and related this increase to staffing necessary to administer the programs for the City. Councilmember Risley disagreed with this reasoning, and felt that staff should justify any increase in employees. Councilmember Risley cited the Juvenile Services Officer as one increased area and felt that perhaps this may,not have been affordable. Councilmember Lemons suggested that Council listen to the Finance Officer regarding the status of.reserves and revenues, and felt that the City has sufficient revenues to meet the costs of the proposed programs. Councilmember Risley noted that his perspective of the budget and reserves is unclear and that he feels uncomfortable with the budget in it's present state with so many assumptions. Councilmember Lemosn noted that some assumptions have to be made and that there is no other way to arrive at the figures other than an after the fact budget. Mayor Shelton felt that the Council needs to have a broad and not a narrow focus on expenditures and wanted to see priorities. The Mayor also felt that personnel increases needed to be. examined closely. He felt reserves had been impacted in past but agreed that we have turned the corner and we are improving. Councilmember Lemons noted that he appreciates the concerns regarding the reserve balance, however he stated that he felt comfortable with the Finance Director's projections regarding the fund balance. Councilmember Anderson commented that many of the Public Works projects are necessities and are "catch-up" problems and felt that the City should look at a regular maintenance program to avoid emergencies later. Councilmember Anderson felt comfortable with the employee situation and with staff projections. Councilmember Zeuschner voiced the need for Council to state what is reasonable and prudent, and to make long term changes for an increase in revenues. Councilmember Zeuschner also stated that the City should MORRO BAY CITY COUNCIL • • Budget Workshop/August 21, 1982 Page Four live with the reserves and revenues available. He stated he would be comfortable with reserves of at least $1 million and judged that with some cuts in Option I we could achieve this goal. Councilmember Lemons, and Councilmember Risley questioned Mr. Baxter regarding insurances reserves, and Gere Sibbach responded with the figure of $289,000 which was not included in previous budgets. Revenue sources for insurance and accounting procedures were also discussed. Mayor Shelton asked Council to provide direction to staff regarding this proposed budget. Councilmember Risley requested a reevaluation of sewer rates. Mr. Baxter noted that the potential for a grant might be impacted by any decision Council would make regarding the sewer rates. John Bressan reported regarding the type of monitoring and metering program to be undertaken for the sewer treatment plant. MOTION: Councilmember Risley moved that pending reevaluation of the rate structure, that Council keep the sewer rates at the current $4.00. The motion was seconded by Mayor Shelton and was defeated by the following roll call vote: AYES: Risley, Shelton NOES: Anderson, Lemons, Zeuschner ABSENT: None John Bressan commented that the rates need to be such that they will support sewer plant activities. Councilmember Risley referred to the preliminary revenue program document for the Wastewater Treatment Plant, which recommended a rate structure based on classification, with.a different rate structure than that currently in use by the City. Councilmember Risley felt that the City's current rates are inequitable. Councilmember Zeuschner noted that some areas have sewer rates that are a percentage of water usage and suggested that in the interim (while studying rate structure) Council enact a progressive system similar to that adopted for the water structure. Councilmember Lemons asked if the current rates were as recommended by Brown and Caldwell. John Bressan stated that the rates were as recommended by Brown and Caldwell, and further noted that is they remain at the $4.00 level., another $100,000 would be needed from the General Fund. If increased to $6.00, the City might be able to adjust the rates.depending upon the availability of the grant after October 1, 1982. MORRO BAY CITY COUNCIL • Budget Workshop/August 21, 1982 Page Five Councilmember Risley stated that the rates should remain at $4.00 until the City is awarded the grant. Councilmember Anderson felt that the City should continue to move towards a self-supporting program, and this should be through gradual increases in rates. Councilmember Risley stated that according to the audit report of figures for 1980-81, the sewer fund had shown a surplus. Mr. Sibbach provided an explanation of this audit report, and explained that the program budget and the audit report did not reflect Non - Departmental, Insurance, billing and collection, legal fees, repairs or contingency costs. These are the reasons that the audit shows a surplus when in fact the sewer fund runs at a deficit even at $6.00 per month.. Councilmember Zeuschner asked if the rates could be set up in a lifeline system.. John Bressan responded regarding the options of the Wastewater Treatment Plant, and the associated.costs.. Councilmember Risley emphasized his feeling that the rate structure is inequitable in it's present form. John Bressan stated that once the point source study was done, he predicted there would be little change in billing. There was continued discussion regarding sewer rates. Council recessed at 3:50 p.m. and reconvened at 3:55 p.m. MOTION: Councilmember Risley moved that staff prepare a sewer point source fee structure as soon as possible. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Risley, Zeuschner, Lemons, Shelton NOES: Anderson ABSENT: None There was general discussion regarding when this study should begin. MOTION: Councilmember Lemons moved that staff prepare a sewer point source study after the status .of_the grant is Ascertained. The motion was seconded by Councilmember Anderson. There was additional discussion, and the motion and second were withdrawn. MORRO BAY CITY COUNCIL Budget Workshop/August 21, 1982 Page Six John Bressan discussed further the EPA and point source information requested by Council. Mr. Bressan offered three alternatives to Council regarding the Safe Drinking Water Loan Offer: .1) to accept the total offer of $1.5 million and pay the total amount over a 25 year period; 2) to accept a parital loan ($500,00) for the tanks and pump; or 3) to reject the.loan,offer and continue as.presently doing. John Bressan then outlined the amount of repairs to be accomplished and the money available to be spent. Mr. Bressan recommended that the total loan (option 1) be accepted and if not, at least a partial loan for the tanks and pump should be accepted.. Gere Sibbach stated that his analysis is that with the present rate structure, the City cannot continue the current water line replacement work and that there is the element of risk if the City waits until there is a problem with the system. John Bressan noted that the tanks cannot be done incrementally, and are needed right away. Councilmember Lemons asked what additional money would be needed to replace the tanks. Gere Sibbach stated that approximately $50,000 per year would be necessary, or approximately a $.10 per month across the board rate increase. Councilmember Risley asked what sort of public support is necessary for the loan. John Bressan informed the Council that the State says that a widely Advertised public hearing conducted by them is needed for the loan.. Councilmember Risley suggested and recommended Option 2 (partial loan offer) for Council's adoption. Howard Gaines suggested that rather than having a loan to be paidback, that the City take the money from the Harbor Fund as it owes the General Fund approximately $600,000. Mr. Baxter commented that although the debt was owed the Harbor Fund is not in a position to loan anyone money. Mayor Shelton suggested a Public Hearing on both options. MOTION: Councilmember Zeuschner moved that the Council send the Water Loan Offer to the Water Advisory Board and have the State conduct A Public Hearing the week of September 20, 1982. The motion was seconded by Councilmember Lemons and carried unanimously. (5-0) Mayor Shelton asked direction regarding a Public Hearing for the adoption of.the 1982-83 budget. 11 MORRO BAY CITY COUNCIL Budget Workshop - August 21, 1982 Page Seven Councilmember Zeuschner felt the Council however Option I was the most reasonable and providing the same level of service. had looked at all options, means of cutting real dollars MOTION: Councilmember Zeuschner moved that Council adopt Option I as presented by staff, with the exceptions that the fire engine remain in the budget. The motion was seconded by Councilmember Lemons. Mayor Shelton suggested that the floating docks also be included. Councilmember Zeuschner amended his motion to so include and this was agreed to by Councilmember Lemons. The motion carried by the following roll call vote: AYES: Zeuschner, Lemons, Anderson NOES: Risley, Shelton ABSENT: None Councilmember Risley stated that he did not feel comfortable with the decrease in reserves for the City and could not support the motion. Mayor Shelton stated that if no Councilmember objected, that the Public Hearing for adoption of the budget will be set for September 13, 1982. There were no objections. MOTION: Councilmember Lemons moved to adjourn to the regularly scheduled meeting of August 23, 1982. Councilmember Zeuschner seconded themoiton and the meeting was adjourned at 4:52 p.m. by a unanimous vote of Council. RESPECTFULLY SUBMITTED, fu kk - PAUL BAXTER CITY CLERK MORRO BAY CITY COUNCIL ADJOURNED MEETING - AUGUST 20, 1982 CITY HALL CONFERENCE ROOM - 10:00 A.M. PRESENT: Bruce Risley Councilmember Bud Zeuschner Councilmember ABSENT: Rodger Anderson Councilmember (excused) John Lemons Councilmember (excused) Gene Shelton Mayor (arrived at 11:05 a.m.) STAFF & OTHERS: Paul Baxter City Administrator Murrel Crump Community Development Director Jim Ryerson Coastal Commission Pat O'Sullivan Sun Bulletin Jim.Ryerson of the California Coastal Commission was present and provided information regarding the background of the LCP and Morro Bay's current position regarding certification of the LCP. Mr. Ryerson stated that at their meeting of May, 1982, the. Coastal Commission conditionally certified the LCP pending Morro Bay's compliance with certain. modifications and changes. Mr. Ryerson noted that the.City has several options, including accepting the modifications verbatim which is the quickest way, accepting most of the modifications and requesting some change (not substantial) for resubmittal (which would have to go to a Public Hearing with staff recommendations), or.resubmitting the original plan to the Coastal Commission. Mr. Ryerson felt that only 3 or 4 controversial issues remained between the City and the.Coastal Commission staff. The City will still have the option to amend the plan, through a local public hearing and noticing process for adoption and change. The City will be able to take over the permit issuance procedures prior to Phase III of the LCP, however the City must adopt an Ordinance to set up,the procedures to do this. Permits issued prior to the certification of the LCP can be appealed to the Coastal Commission, however once fully certified (after completion of Phase III) this will not be the case. Councilmember Risley confirmed that if the Council accepts the Coastal Commission modifications, notice would be sent to the Executive Director by Resolution of Adoption. Councilmember Risley asked what bearing the San Luis Obispo County Plan had in relation to Morro Bay. Jim Ryerson stated that Morro Bay is a separate entity, however the Coastal Commission staff recommended consistency between Morro Bay and San Luis Obispo County_.. MORRO BAY CITY COUNCIL • • Adjourned Meeting - August 20, 1982 Page Two Mr. Ryerson stated that further refinement in agriculture and other uses of properties is needed especially if it will result in preserving agricultural land in the Morro and Chorro valleys. Councilmember Risley questioned the future uses of agricultural lands. Mr. Ryerson stated that the City should focus its development on infilling first. Grace Melton stated that the City has three (3) options, but that the Council seems to be considering only one, to accept the modifications as submitted. Mrs. Melton asked what was to be considered. Councilmember Zeuschner felt that the entire plan should be considered, and all options discussed. Mr. Bob Lane noted that the previous LCP reflected the feelings of the former City Council, favoring local control. Mr. Peter Diffley asked if the same process will be repeated at a City Council Public Hearing, and felt discussion should wait until a hearing. Mr. Campbell stated his concern regarding protection of the agricultural areas and felt the City should move back to the Urban Reserve Line. Jim Ryerson explained the Urban Reserve Line, and stated that by definition urban areas had access to services, while rural areas did not, however the Sphere of Influence takes these definitions into account but doesn't exclude the possibility that services are available. Mr. Howard Gains asked how it will be determined who will get a permit, and whether EPA standards will be used. Mr. Baxter stated that this was refering to the 301 waiver. Mr. Ryerson explained that the State cannot mandate changes to a certified plan, only the local agencies can change the plan through the public hearing process. The Coastal Commission will review the plan every 5 years. Miss Jane VonKoegh questioned Mr. Bressan reqarding the discharge standards for Morro Bay, and the City's output. Miss VonKoegh also inquired as to the original Coastal Commission jurisdiction. Mayor Shelton arrived that the meeting and constituted a quorum. (11:05) Jim Ryerson reviewed the history of the Coastal Act of 1972, and explained that the voters took development powers away from local governments in the 1976 Act. MORRO BAY CITY COUNCIL . Adjourned Meeting - Aug st 20, 1982 Page Three Mr. Mark Morton asked if other States had laws similar to California's. Mr. Ryerson responded that they did not however the Coastal Zone Management Act is under Federal Law. Howard Gaines aksed the relationship of the City Council and the Coastal Commission, and inquired as to who would enforce the maintenance of projects. Jim Ryerson stated that the Coastal Conservancy was established in 1976 to facilitate the Coastal Act. Peter Diffley had questions regarding the Harbor and the City's desire to amend the Public Resources Code. Mr. Baxter provided the background regarding this matter. Councilmember Risley asked what jurisdiction the Coastal Commission would retain after adoption of the LCP. Jim Ryerson stated that the Coastal Commission's jurisdiction is over tidelands and the harbor. Mr. Baxter asked if the proposed designation of Morro Bay as a Marine Sanctuary would interfere with the LCP. Mr. Ryerson stated that there would be no conflict with the Coastal Commission regarding designation as a Marine Sanctuary. There was additional discussion regarding "sensitive habitats" and development rights in these areas. Jim Ryerson stated that any projects would have to protect these habitats prior to development. MOTION: Councilmember Risley moved that Council set a Public Hearing for September 13, 1983, at 4:00 p.m. regarding review of suggested modifications to the Local Coastal Plan as offered by the Coastal Commission. The motion was seconded by Councilmember Zeuschner and carried unanimously. (3-0-2) MOTION: Councilmember Zeuschner moved that Council adjourn to their meeting of Saturday, August 21, 1982, at 1:00 p.m. The motion was seconded by Councilmember Risley and carried unanimously. The Council offered their thanks to Mr. Jim Ryerson of the Coastal Commission. The meeting adjourned at 11:50 a.m. RESPECTFULLY SUBMITTED, PAUL BAXTER CITY CLERK MORRO BAY CITY COUNCIL REGULAR MEETING - AUGUST 9, 1982 RECREATION HALL - 7:30 P.M. ROLL CALL PLEDGE OF ALLEGIANCE - Horace Strong, representing Morro Bay Veterans INVOCATION - Lance Poldberg, Calvary Lutheran Church, Morro Bay A. PUBLIC HEARINGS, REPORTS & APPEARANCES A-1 Appraisal Report of Morro Bay Embarcadero Lease Sites from County Appraiser A-2 Case No. ZOA 03-82, Recommendation from Planning Commission for amendment of Municipal Code 17.44 re: parking requirements for single family dwellings A-3 Consideration of Amendment to Chapter 5.16 of the Morro Bay Municipal Code re: Private Patrol A-4 Consideration of formation of an underground improvement (utility) district B. UNFINISHED BUSINESS B-1 Senior Citizens Site Designation Status Report B-2 Request for authorization for staff to proceed with filing 301(h) waiver to secondary treatment and select consulting firm to prepare application (continued from 7/26) B-3 Reconsideration of billing procedures for garbage service B-4 Extension of Contract with California West for property management services. B-5 Approval of bid for professional services for auditing B-6 Possible continuation of consideration of FY 1982-83 Budget C. NEW BUSINESS None. D. CONSENT CALENDAR D-1 City Council minutes of July 23rd adjourned meeting, and July 26th regular meeting D-2 Chamber of Commerce Expenditure Report for July 1982 D-3 Approval of bids for construction of Phase II T-Pier Construction (Floating Slips) D-4 Authorization to engage contract services for EIR review, re: Case No. CUP 16-81 E. INDIVIDUAL DETERMINATION AND/OR ACTION E-1 City Council E-2 City Attorney E-3 City Administrator MORRO BAY CITY COUNCIL AGENDA NO. Q' REGULAR MEETING - AUGUST 9, 1982 Date S/z3 Action RECREATION HALL - 7:30 P.M. Mayor Shelton called the meeting to order at 7:40 p.m. ROLL CALL PRESENT: Eugene R. Shelton Rodger J. Anderson John Lemons Bruce Risley Bud Zeuschner STAFF: Paul Baxter Michael T. LeSage John Bressan Murrel Crump Gary Napper Al Olson Tom Freeman Gere Sibbach Bernie Zerr Peggy Buchanan Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Director of Public Works Director of Community Development Administrative Assistant Police Chief Recreation Department Finance Director Fire Chief Deputy City Clerk Horace Strong led the Pledge of Allegiance, and the invocation was offered by Reverend Lance Poldberg of the Calvary Lutheran Church. A. PUBLIC HEARINGS, REPORTS & APPEARANCES A-1 APPRAISAL REPORT OF MORRO BAY EMBARCADERO LEASE SITES FROM COUNTY ASSESSOR Paul Baxter explained the history of this item to Council, stating that at the City's request, the County Assessor had been instructed to prepare property appraisals for those County leases held by the City, and this request had been made over a year ago. Mr. Baxter noted that the City had just received the Assessor's report on July 6, 1982. Mr. Baxter stated that Mr. Jack Wallace, the City's consultant on the Embarcadero leases, had prepared current as well as past billings for the County leases, based on.the new appraisal report, and if authorized by Council, will submit them to the leaseholders. Mr. Jack Wallace presented a handout with the rental adjustments for County Leases, and gave a brief presentation on the appraisal report. Mr. Wallace stated that the appraisals are not related in any way to business or amount of sales, nor are they the same as property tax appraisals. Mr. Wallace noted that in his contact with several County leaseholders, they indicated an interest in converting to City leases, and paying on a percentage basis rather than risking another large increase five years from now. Mr. Wallace felt that the City's position is to aid the businesses and leaseholders on the Embarcadero in correcting abuses, and making other improvements along the Embarcadero, with a goal of compatibility with MORRO BAY CITY COUNCIL Regular Meeting - August 9, 1982 Page Two other inland businesses. Mr. Wallace stated that there is also currently a large inequity among the rents for City and County leases. Jack Wallace also noted that the City has made progress in obtaining proof of insurance from the leasees,_and felt the City should continue to maintain the quality of the lease sites by periodic inspections for repair and maintenance.. Mayor Shelton then opened the Public Hearing. Howard Gaines felt that the City should try and collect past due rents from the leasees.but should make sure the amount collected is adjusted for 1981 value and not current value. Mr. Wallace stated that the Assessor had appraised the leases and adjusted the appraisal for 1981 value, as required by the lease agreements. Howard Gaines also questioned the ability of the City to collect past due rents should the leasee decide to protest the appraisal. Mr. LeSage explained that the leasee would have the right to protest to the County Assessor. Mr. Wallace then noted that perhaps the City should arrange terms for payment of the back rents, on a non -interest bearing arrangement of three or six months. Mr. Dale Mitchell asked if the appraisal report had been available to the public. Mr...Baxter stated that it had been. There was discussion on the different types of appraisals,(i.e., fair market value, property tax appraisals, possessory interest, etc.). Malcolm Deutsch felt the square footage figures provided by the County were extremely low.as compared to other areas within the City. Mr. Wallace agreed, and stated that the figures seemed lower than other areas... Mr. Gaines asked if the water leases had also been appraised. Mr. Wallace stated that as yet, the City has not been able to find an appraisor to put a value on -the water leases. Ron Meyers questioned the basis for the appraisal value. Mr. Wallace explained that it was totally different from the basis used for appraising for property taxes. MOTION: Councilmember Zeuchner moved that the Public Hearing be closed. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: AYES: Zeuschner, Lemons, Risley, Shelton NOES: None ABSTAIN: Anderson ABSENT: None MORRO BAY CITY COUNCIL Regular Meeting - August Page. Three 0 9, 1982 Councilmember Risley asked if the leaseholder has the right to renew the lease. Jack Wallace stated that an option to renew will occur in a short time, and may be contingent upon certain improvements and certain dollars having been made or spent. Mr. Wallace stated that it is not an automatic renewal. Councilmember Risley questioned the City's alternatives to accepting this appraisal report., Mr. Baxter stated that as it is required in the lease agreements, the City does not have any alternatives other than to accept the appraisal report, and request payment. There was a discussion on the methods available to the leasee to protest the appraisal report. MOTION: Councilmember Zeuschner moved that the City Council accept the appraisal report as submitted by the San Luis Obispo County Assessor, and to instruct staff to submit the billings as prepared to the appropriate leaseholders, allowing six (6)_month non -interest bearing terms for payment of past due rents. The motion was seconded by Councilmember Risley and carried by the following roll call vote. AYES: Zeuschner, Risley, Lemons, Shelton NOES: None ABSTAIN: Anderson ABSENT: None * Councilmember Anderson abstained due to possible conflict with indirect involvement with waterfront leases. Councilmember Risley suggested that the Finance Department review the figures prior to any billings being sent. A-2 CASE NO. ZOA 03-82. RECOMMENDATION Paul Baxter stated that this matter had been initiated by the Planning Commission, and would allow variances from parking standards for improve- ments on lots which did not exceed 25% of the original floor area or 25% of reasonable value of the structure. Mayor Shelton asked if the Council was being requested to approve a Negative Declaration on this Ordinance. Mr. Crump stated that if Council approves the amendment, the Negative Delcaration would be confirmed. 0 MORRO BAY CITY COUNCIL Regular Meeting Page Four Councilmember Lemons questioned whether or not the "variance" meant an "exception" and whether the applicant would have to appear each time before the Planning Commission. Mr. Crump stated that it would be handled administratively, and was only for those applications that would typically justify a variance currently. Mayor Shelton opened the Public Hearing. There were no comments or questions from the audience. MOTION: Councilmember Lemons moved that the Public Hearing be closed. The motion was seconded by Councilmember Anderson and carried, by the following roll call vote: AYES: Anderson, Lemons, Risley, Zeuschner, Shelton NOES: None ABSENT: None MOTION: Councilmember Lemons moved that this Amendment to Municipal Code Section 17.44 be read by title and number only. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Anderson, Lemons, Risley, Zeuschner, Shelton NOES: None ABSENT: None Paul Baxter read "An Ordinance to Amend Section 17.44 of the Morro Bay Municipal Code". MOTION: Councilmember Zeuschner moved that the City Council adopt this Ordinance as a first reading. The motion was seconded by Councilmember Lemons, and carried by the following roll call vote: AYES: Anderson, Lemons, Risley, Zeuschner, Shelton NOES: None ABSENT: None Councilmember Risley questioned the memorandum received from the Planning Commission relating.to downtown parking_. Mr. Baxter stated that this memorandum had been included with the above material, as it relates to the parking ordinance. Councilmember Risley asked the Police Chief to comment on any known problems with the downtown parking. MORRO BAY CITY Regular Meeting Page Five COUNCIL - August 9, 1982 Chief Al Olson stated that a study had been done in 1980 and that after research and testing, use of radar, and study of the turn -over rate of parking, it had been concluded that there was no problem with the parking situation, and that the turn -over rate had been rapid and few cars had exceeded the time limit on parking areas. Chief Olson stated that the problem did not seem great enough to warrant hiring a traffic control officer to issue tickets. Councilmember Anderson questioned whether patrol cars could provide this type of service. Chief Olson stated that with only 2 patrol cars on duty during the day, this would be taking them away from more vital duties. Chief Olson did state that they would respond to any complaint from merchants of a violation in parking time limits. Councilmember Zeuschner noted that some of the offenders in this case are most likely employees of local businesses, and should be encouraged to find other suitable parking. Chief Olson stated that he had met with the merchant committees and encouraged their cooperation and the cooperation of their employees. Mayor Shelton expressed his concern over the businesses parking on the streets and not in available employee parking areas. Mr. Burt Flannagan asked the procedure regarding disabled or abandoned vehicles. Chief Olson stated that the merchant should call the Police Department, and a citation will be issued, and if after the three day waiting period no action by the.vehicle owner has taken place, the car can be legally removed. Mayor Shelton requested a copy of the study and report prepared by the Police Department during 1980. A-3 CONSIDERATION OF AMENDMENT TO CHAPTER 5.16 OF THE MORRO BAY MUNICIPAL CODE RE: PRIVATE PATROL Chief Al Olson provided Council with the background for this Ordinance Amendment by stating that recent change in state law providing that the Bureau of Consumer Affairs is responsible for licensing of private patrol serivices has necessitated changes in our local Ordinance. The Chief explained that the City will not longer be responsible for background checks and investigations, and will only require a copy of the State registration, and can regulate the type of uniform and insignia to be used. The Chief noted that this is basically a housekeeping item. MORRO BAY CITY COUNCIL Regular Meeting - August 9, 1982 Page Six Mayor Shelton opened the Public Hearing. There were no comments or questions from the audience. MOTION: Councilmember Risley moved that the Public Hearing be closed. The motion was seconded by Councilmember Lemons, and carried by the following roll call vote: AYES: Risley, Lemons, Anderson, Zeuschner, Shelton NOES: None ABSENT: None MOTION: Councilmember Zeuschner moved that this Ordinance be read by title and number only. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: AYES: Zeuschner, Lemons, Anderson, Risley, Shelton NOES: None ABSENT: None Paul Baxter read "An Ordinance to Amend Chapter 5.16 of the Morro Bay Municipal Code". MOTION: Councilmember Lemons moved that the City Council adopt the above Ordinance as its first reading. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Lemons, Zeuschner, Anderson, Risley, Shelton NOES: None ABSENT: None Councilmember Risley asked the Police Chief if the City has had any problems with private patrol services. Chief Olson stated that currently there is only one service operating within the City, and no. problems have been encountered. A-4 CONSIDERATION OF FORMATION OF AN UNDERGROUND IMPROVEMENT DISTRICT Paul Baxter noted that the the Council meeting of July 26th, Council had indicated that this matter should be noticed for Public Hearing to allow input regarding the location of an underground improvement district. Mr. Baxter reminded Council that the two locations under consideration were 1) extension of Morro Bay Blvd. to the freeway, and 2) from Tidelands MORRO BAY CITY Regular Meeting Page Seven COUNCIL - August 9, 1982 Park to South Street,and from Beach Street to Morro Rock along the Embarcadero. Mayor Shelton asked the source of the funds for this project. John Bressan explained that the utilities (i.e., P.G.& E., Pacific Telephone, Cable TV, etc.) were required to set aside money for underground of utilities, and stated that approximately $175,000 was currently available. Mayor Shelton opened the Public Hearing. Sylvia Cook asked if Morro Bay Blvd. had been the next step in this project, and if this area was done, where would the street lighting be placed. John Bressan stated that Morro Bay Blvd. is one of the areas being considered, and that no design work would be done until a specific location is chosen. Dorothy Kilfoil, a representative of the Audobon Society, urged Council to chose the Embarcadero area for underground of utilities, as they have presented a large hazard to local birdlife, and have resulted in the deaths of many birds. Burt Flannagan requested information on the possible cost to the area residents, and length and type of disruption to their businesses. He felt that the people affected should know these facts prior to any decision. John Bressan stated that it was premature to speculate on the costs or disruptions to be involved, until further engineering could be done to determine these factors. Mr. Bressan stated that in the. past, there had been only slight disruption to businesses, as the work was done in the off-season, and the City had assisted in the cost so that minimal charges were paid by residents affected. Grace Melton asked if there were other sources the City could have access to that might provide funds for this type of project. Paul Baxter stated that it was not likely that additional funding would be available. MOTION: Councilmember Anderson moved that the Public Hearing be closed.. The motion was seconded by Councilmember Risley and carried by the following roll call vote: AYES: Anderson, Risley, Lemons, Zeuschner, Shelton NOES: None ABSENT: None Mayor Shelton recommended that Council choose the Embarcadero area for this undergrounding project, as it is more scenic and important to our tourist industry. 0 MORRO BAY CITY COUNCIL Regular Meeting - August 9, 1982 Page Eight Councilmember Risley also stated his preference for the Embarcadero area, but thought that additional information regarding costs involved should be available to the public. Councilmember Anderson questioned the amount of time involved before both areas could be accomplished. John Bressan stated that if the Embarcadero area is done now, it would Most likely be another seven or eight years before the funds are available again., if the program is continued.. MOTION: Councilmember Anderson moved that the Council follow the staff recommendation for designation of the underground utility district along Morro Bay Blvd..to the freeway. The.motion was seconded by Councilmember Lemons. Councilmember Lemons asked if estimated costs could be brought before the Council and public, prior to -establishment of a district. John Bressan stated that preliminary costs would be available once the district is chosen, however,.it might be possible to have information provided for both areas. There was a discussion regarding the areas to be involved in the Morro Bay Blvd. project, and the participation of the residents financially. John Bressan.stated that he could try to set up a meeting with both groups involved, P.G.&.E. and the business and.residents.that would be involved in both areas of undergrounding. Councilmember Anderson withdrew his motion and Councilmember Lemons also withdrew his second. MOTION: Councilmember Risley moved that Council refer this matter back to staff for. further study. The motion was seconded by Councilmember Zeuschner, and carried unanimously. (5-0) Council recessed briefly at 9:20, and reconvened at 9:30p.m. B. UNFINISHED BUSINESS B-1 SENIOR CITIZENS SITE DESIGNATION STATUS REPORT Paul Baxter informed Council that he had met with Marguerite McAuliffe, President of the Senior Citizens, and Don West, architect for the Seniors, regarding the designation of a site for the new senior citizens center. The result of this meeting was an agreement that the best location for the center would be the strip of City property at the rear of the Recreation Hall, along Kennedy Way. The possibility of building onto.the existing MORRO BAY CITY Regular Meeting Page Nine COUNCIL - August 9, 1982 Recreation Building with an agreement of common use between the City and the Senior Citizens was also discussed. Mr. Baxter stated that when plans were more formalized these decisions could be made. The Seniors are only requesting conceptual approval to the site location.at this time. Councilmember Risley asked what the time schedule was like. Mr. Baxter stated that it was mainly dependent upon the funding drive of the Seniors. Marguerite McAuliffe stated that originally the Seniors had been given two years from approval to break ground. Councilmember Anderson questioned the effect of this plan upon the City use of the Recreation Hall. Mr. Baxter stated that details would have to be worked out, however the City would have to have continued use of the building until new facilities became available. Mary Phillips stated that there was condition placed upon the purchase of the Recreation Hall from the School District, that the. building was to remain as recreation. use for the entire City. Mrs. Phillips felt this would interfere with the proposed plans. MOTION: Mayor Shelton moved that the City Council give conceptual approval to the site location of.Kennedy.Street behind the Recreation Hall, and ask staff to proceed with negotiations with the Seniors regarding plan design. The motion. was seconded by Councilmember.Anderson and carried unaniomously. (5-0) Jane Bailey asked Council to consider a similar arrangement with the library, as it is. currently looking for larger quarters, and has begun a funding drive for construction of a.new.facility. Mayor Shelton stated that Council could possibly consider a similar arrangement, if the funding sources were available for the libarary. B-2 REOUEST.FOR AUTHORIZAT cont WITH FILING 301 Paul Baxter stated that this item had been noticed for Public Hearing As requested by Council. Mr. Baxter informed Council that.Mr. Schubert of the Cayucos.Sanitation District, had indicated that Cayucos wanted to discuss the matter formally, and had withdrawn their approval until their regular meeting discussion. • MORRO BAY CITY Regular Meeting Page Ten COUNCIL - August 9, 1982 John Bressan stated that he had spoken to Ken Jones and Bill Leonard of the Regional Water Quality Control Board (RWQCB) and they had reinforced their opinion that the waiver would be necessary regardless of whether the City received the grant or not. Mr. Bressan also noted that at a recent seminar he attended in San Francisco regarding waiver application process, it was also agreed that the waiver needed to be filed. Mr. Bressan was concerned about the amount of time available for this application and stated that it will be due by December 29th and there are no extensions available. Mr. Bressan recommended that Council authorize the staff to proceed with filing the waiver, and also to negotiate with Brown and Caldwell for preparation of the application. Mr. Bressan emphasized that Brown and Caldwell are familiar with the application procedure, and already at work on several other applications. Councilmember Risley inquired as to the cost of the waiver. John Bressan stated that the cost will be substantially less than in the past and estimated a cost of $100,000_of which 40% will be paid by Cayucos. Paul Baxter stated that $125,000 had been included in the proposed FY82-83 budget. Councilmember Risley reviewed a letter from Mr. Peter. Diffley, questioning the need for the waiver. Mr. Diffley stated that in speaking to various officials, he had not felt that the City was mandated to file. this 301(h) waiver,.and indicated that the City should wait, and not file their application. Mr. Bressan stated that Mr. Diffley had misinterpreted the conversation he held with the.WQC$ and that -the State has told them on several occasions of the necessity for the waiver. Councilmember Lemons read a letter from J. Cornelius (WQCB) which stated that the City should apply for the 301(h) waiver by December. 29th. Councilmember Risley felt that the money involved would be a problem. Councilmember Lemons pointed out the phenomenal costs involved if the grant is lost.. Councilmember Zeuschner asked if the City could manage with out the grant and waiver. John Bressan stated that the City could meet EPA discharge requirements once in awhile, but not consistently and not for any length of time. MORRO BAY CITY COUNCIL Regular Meeting - August 9, 1982 Page Eleven There was additional discussion regarding the need for the waiver. MOTION: Councilmember Lemons moved that the Council authorize staff to proceed with filing the 301(h) waiver to secondary treatment and selection of Brown & Caldwell to prepare application. The motion, was seconded by Councilmember Anderson, and carried by the following roll call vote: AYES: Lemons, Anderson, Risley, Zeuschner, Shelton NOES: None ABSENT: None B-3 RECONSIDERATION OF BILLING PROCEDURES FOR GARBAGE SERVICE Mr. Baxter requested the Finance Director to provide Council with the staff report.. Mr. Sibbach informed Council that figures provided by Morro Bay Garbage, and reviewed by himself to be correct, showed an additional in cost of approximately $890./month. Mr. Sibbach stated that he felt this figure was conservative. Mr. Sibbach added that the City's additional costs for billing was approximately $350.00, which was covered by.the 3% billing fee. Mr. Sibbach stated that this fee was designed to cover. the additional. costs or variable costs of the billing, and not.the fixed costs (costs incurred without the garbage. billing). Mayor Shelton questioned the City's method of charging or collecting for overhead costs.. Councilmember Risley stated that since the Garbage Company would no longer be paying the City $350, the actual increase in cost to them would only be $540 rather than $890. Councilmember Risley felt that finances were only a part of the issue, and felt that the City had lost.public respect because of their involvement with the garbage company. Councilmember Risley also felt that the City should develop some type of brocheure for public information regarding utility bills. Dorotha Deutsch stated that if the City does not do the billing, the Garbage Company will have no alterative but to raise their rates to cover their increased costs. Pat Wagner stated that there would have to be rate changes and changes in the.Ordiance to allow service.to be discontinued for non-payment. Dorotha Deutsch felt the City should aid in informing people about the mandatory nature of the serivice, but felt that regardless of who 0 MORRO BAY CITY COUNCIL Regular Meeting - August 9, 1982 Page Twelve did the actual billing, the City would still receive the complaints, because the Garbage Company is still acting.on behalf of the City. Mrs. Staten felt that the City should continue to do the billing, so that costs will not be increased to the customer. Mrs. Phillips stated that she felt many people were afraid to speak out against the.garbage service. Councilmember Lemons also felt that negotiations would have to be reopened regarding the billing fee if.the added service of billing were given to Morro Bay Garbage. Mike LeSage stated that the Garbage Company would have the same means as the City in collecting past due accounts, and that would be small claims court. Councilmember Risley felt that no negotiations regarding rate increases would be necessary because of the language in the agreement that provides that the City may do the billing, and not that the City must do the billing. Paul Baxter also noted that a paragraph within the agreement stated that if the garbage company was required to perform a higher level of service the contract could be renegotiated. Mike LeSage then noted that after further investigation, he had determined that the City could place liens on. property for delinquent garbage bills. Mr. LeSage reviewed the sections of the California Government Code that specifiy.that a City may act as a County in enforcing payment of the overdue bills. Councilmember Zeuschner asked Mr. Baxter to read the Resolution that he had submitted to Council. Mr. Baxter read the Resolution, which would transfer billing from the City to Morro Bay Garbage. There was discussion regarding this Resolution, and Councilmember Zeuschner added an item number 6 to the_Resolution. to read: 6. The City will assist the franchisee by following all normal and customary channels to enforce collection. MOTION: Councilmember Risley moved that Council adopt the Resolution as submitted by Councilmember Zeuschner, with the above noted addition. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Risley, Zeuschner, Shelton NOES: Lemons, Anderson ABSENT: None 0 0 MORRO BAY CITY COUNCIL Regular Meeting - August 9, 1982 Page Thirteen Councilmember Lemons criticized the Resolution, and felt that it was redundant in that the City already performs many of the activities it asks for, such as notification of residents regarding the mandatory nature of refuse pickup. Councilmember Zeuschner stated that the Resolution was a reaffirmation of mandatory service. Councilmember Anderson questioned whether this Resolution, by returning the garbage billing to Morro Bay Garbage, would open up the possibility of contract renegotiations. Mr. Baxter stated that staff would have to thoroughly review the agreement. Dorotha Deutsch stated that the Garbage Company has to follow set rates, and therefore cannot be "competitive" in their billing. Mrs. Deutsch also noted that with these set rates, capital expenses such as computer equipment cannot be compensated for as in normal business. Mr. Sibbach asked that the time limit in this Resolution be extended to 90 days rather than 60, for transition period. MOTION: Councilmember.Risley moved that the time period referred to in the above mentioned Resolution be extended from 60 days to 90 days. The motion was seconded by Councilmember Zeuschner and carried unanimously. (5-0) B-4 EXTENSION OF CONTRACT WITH CALIFORNIA WEST FOR PROPERTY MANAGEMENT RVTCFR. Councilmember Anderson abstained from discussion or vote. Paul Baxter stated that the agreement with California -West for property management services had expired, and staff would like approval to bring back an extension of this contract for an. additional year, to provide Mr. Wallace of California -West additional time to complete the.tasks as outlined in the Scope of Services submitted in the staff report. Mr. Wallace reviewed the Scope of Services, and stated that several goals to be completed would be a continuation of negotiation with County leaseholders, collection.of percentage rentals and rental income, periodic site inspections, program for insuring that violations are cleared, community relations, as well as insurance proof and other lease related functions.. Howard Gaines objected to this extension of contract, and stated that the City's Building Inspector should handle these duties, rather than hiring additional.help. Mr. Baxter stated that the City currently has only one inspector, and this is not sufficient to perform all the work necessary. Mr. Baxter MORRO BAY CITY COUNCIL Regular Meeting - August 9, 1982 Page Fourteen noted that all inspections of the sites would be in conjunction with the Building Inspector. Mike LeSage noted that now the City can collect past due rents in small claims court with City staff. Councilmember Risley felt that Council should accept the staff recommendation at this time, but that in the long run provisions should be made to enforce the leases on a permanent basis and urged staff to examine the possibility of a permanent solution to the problem. MOTION: Councilmember Lemons moved that Council approve staff's recommendation and direct staff to prepare extension to the contract with California -West for an additional year. The motion was seconded by Councilmember Zeuschner and carried by a 4-0-1 vote with Councilmember Anderson abstaining due to possible conflict because of indirect involvement in waterfront leases. Mayor Shelton stated that he felt a permanent solution should be sought, however he noted that Mr. Wallace had done an outstanding job. Councilmember Lemons noted that this is the first time in Morro Bay that any attempt has been made to manage the waterfront leases. B-5 APPROVAL OF BID FOR PRORESSIONAL SERVICES FOR AUDITING Councilmember Anderson abstained from discussion or vote. Mr. Sibbach stated that from a suggestion by Mr. Wallace that the City provide auditing services for City leases on gross reciepts, this bid approval is being brought to Council. Mr. Sibbach stated that currently, the leases operate on an honor system, however some sites have not been paying any rent over the minimum due. Mr. Sibbach stated that two low bids or proposals had been received, and staff is recommending the firm of Garish_, Baily and Company and suggesting that they start as soon as possible. After completion of this years auditing, a progress report will be prepared , and evaluated to determine the success of the program.. MOTION: Mayor Shelton moved that the City Council approve the bid award to Garish, Bailey and Company in an amount not to exceed $4.,800. The motion was seconded by Councilmember Risley and carried by a 4-0-1 vote, with Councilmember Anderson abstaining due to possible conflict because of indirect involvement in waterfront leases. MORRO BAY CITY COUNCIL Regular Meeting - August 9, 1982 Page Fifteen B-6 POSSIBLE CONTINUATION OF CONSIDERATION OF FY 1982-83 BUDGET This item was continued for possible discussion at close of meeting, time permitting. C. NEW BUSINESS None. D. CONSENT CALENDAR Paul Baxter reviewed the following items on the Consent Calendar: D-1 CITY COUNCIL Mr. Baxter recommended that Council approve the above noted minutes as submitted by the Deputy City Clerk. D-2 CHAMBER OF.COMMERCE EXPENDITURE REPORT FOR JULY, 1982 Mr. Baxter recommended that Council approve the Expenditure Report for the Chamber of Commerce, as submitted and approved by the Finance Director for the month of July, 1982, in the amount of $1,262.56. D-3 APPROVAL OF BIDS FOR CONSTRUCTION OF PHASE II T-PIER CONSTRUCTION Paul Baxter recommended Council award the bid for construction of eight boat slips at the T-Pier to Conco Engineering in.the amount of $82,262 by adoption of the attached Resolution. D-4 AUTHORIZATION TO ENGAGE CONTRACT SERVICES FOR EIR REVIEW, RE: CASE NO. CUP 16-81 Mr. Baxter recommended that Council authorize contract services to be engaged for Mary Reents not to exceed $2,000 for the preparation.of the EIR response to the VRM proposal. Councilmember Lemons questioned the wording in item D-3, "unqualified" bids, and suggested this be.changed to "non -responsive" bids. Mr. Bressan agreed. MOTION: Councilmember Risley moved that Council approve the Consent Calendar with one.change as noted above. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: AYES: Risley, Lemons, Anderson, Zeuschner, Shelton NOES: None ABSENT: None 0 MORRO BAY CITY COUNCIL Regular Meeting - August 9, 1982 Page Sixteen E. INDIVIDUAL DETERMINATION AND/OR DISCUSSION A-1 CITY COUNCIL Paul Baxter asked the Council to make a determination regarding the authorization for hiring of the two Planning Department positions being requested in the proposed 1982-83 budget. Mr. Baxter stated that as these positions were being funded by a grant for Phase III LUP/LCP work, the City is losing funds with each month that the positions are not filled. Mr. Baxter stated that the grant would fund each position 50%, and the work. to be done by the grant positions is necessary, and the City will have to fund the positions entirely if they are not hired soon. Mr. Crump explained the work that these two employees would do, and stated that there is a certain urgency in getting these employees on board, because if the work cannot be completed there is a possibility of losing the grant funding. Peter Diffley asked how Phase III related to the LUP/LCP. Mr. Crump stated that Phase III is one major component of the LUP, and is about 90% mapping, ordinances, and.setting the stage to implement the LUP. MOTION: Councilmember Lemons moved that Council authorize staff to proceed with hiring of 1 permanent and 1 contract position in the Community Development Department. The motion was seconded by Councilmember Anderson and carried by the following roll call vote: AYES: Lemons, Anderson, Risley, Zeuschner, Shelton NOES: None ABSENT: None Councilmember Zeuschner congratulated the City on the recent grant received for the Tidelands Park in the amount of $315,000. Councilmember Risley read a letter received from Mr. and Mrs. William Sheets. regarding the moratorium in Morro Bay. Councilmember Risley requested that staff respond to the letter.. Mr. Baxter requested that Council designate representatives to meet with the Cayucos Sanitary District prior to September. Councilmember Lemons and Mayor Shelton were designated to meet with Cayucos. MORRO BAY CITY COUNCIL Regular Meeting - August 9, 1982 Page Seventeen Mayor Shelton asked if staff could contact someone regarding mosquito control within the City. John Bressan stated that the County Health Department could be contacted but most likely would not have the manpower or funds to so anything. Mayor Shelton stated that Morro Bay had been nominated as a Marine Sanctuary and requested authorization from Council to direct a letter requesting consideration of this status. Staff will draft a response in the form of a Resolution. E-3 CITY ADMINISTRATOR Paul Baxter requested that Council set a future date for continuance of the Budget Workshop. MOTION: Councilmember Risley moved that staff prepare a proposed budget which reflects both a 10% and 5% overall cut in spending. The motion was seconded by Mayor Shelton. Paul Baxter asked direction for preparation of this document, and questioned whether the progressive rate structure as approved by Council for water rates would be included in the overall cuts. Councilmember Risley stated that staff should have flexibility in determining the spending cuts. Councilmember Zeuschner felt that reductions were necessary but questioned the 108 reduction as being.to severe perhaps. Councilmember Lemons suggested that staff consider a priority listing of spending reductions. Mr. Baxter stated that staff would prepare a document with graduated cuts from 0 - 10%, with a priority listing. Councilmember Risley amended his motion to reflect a proposed budget which reflects graduated cuts from 0 - 10% with a priority listing. Mayor Shelton seconded the amended motion and it was carried by the following roll call vote: AYES: Risley, Zeuschner, Anderson, Lemons, Shelton NOES: None ABSENT: None Council then set a date of Saturday, August 21st, at 1:00 p.m. for its next budget hearing. MORRO BAY CITY COUNCIL Regular Meeting - August 9, 1982 Page Eighteen MOTION: Councilmember Lemons moved that to Saturday, August 21, 1982, at Recreation Hall. The motion was Shelton and carried unanimously. The meeting was adjourned at 12:16 a.m. RESPECTFULLY SUBMITTED, PEGGM�✓L,Gt/i ANAN DEPUTY CITY CLERK the Council adjourn 1:00 p.m. in the seconded by Mayor AUGUST 9th ADJOURNED MTG. MORRO BAY CITY COUNCIL ADJOURNED MEETING/BUDGET WORKSHOP AUGUST 9, 1982 RECREATION HALL - 4:00 P.M. q'RNDANO. Q- Date q/13 Action Mayor Shelton called the meeting to order at 4:05 p.m. ROLL CALL PRESENT: Eugene R. Shelton Mayor Rodger J. Anderson Councilmember Bruce Risley Councilmember Bud Zeuschner Councilmember ABSENT: John Lemons* Councilmember *(Councilmember Lemons arrived at 4:40 p.m.) STAFF: Paul Baxter John Bressan Murrel Crump Gary Napper Al Olson Tom Freeman Gere Sibbach Bernie Zerr Peggy Buchanan City Administrator Public Works Director Director of Community Development Administrative Assistant Police Chief Recreation Department Finance Director Fire Chief Deputy City Clerk Mayor Shelton asked Paul Baxter to provide a brief review of the budget material to be considered. . Mr. Baxter reviewed the budget packet submitted to Council by staff, which included a sample Resolution adopting the 82-83 budget, information concerning progressive water rates and the Safe Drinking Water Loan Offer, as well as a summary of Department Capital Improvement Plans and personnel allocation information. Mr. Baxter also stated that staff had prepared information as requested by Mayor Shelton at the previous budget meeting and this was included with the packet. Councilmember Risley gave a brief presentation regarding City reserves, and stated his concern for the downward trend since 1976. Councilmember Risley felt that an increase in City employees had accounted for a portion of this decrease in reserves as well as a decrease in State monies. Councilmember Risley suggested a hiring freeze and a budget cut of not less than 10% to curb the downward trend in City reserves. Councilmember Zeuschner agreed that the reserve balance trend should. be reversed, but felt that a less drastic cut could be just.as effective, without decrease City services. MORRO BAY CITY COUNCIL Adjourned Meeting - Budget Workshop August 9, 1982 Page Two Councilmember Anderson stated that the water and sewer rates were areas for increased revenues, and felt that these should be increased to be self-supporting. Mary Phillips questioned where the personnel increases had occurred. Paul Baxter outlined all personnel increases for the period of 1976-77, to the present, and stated that overall, there had been an increase from 78.5 employees in 1976-77 (including CETA workers) to 83.35 employees in 1981-82 (no CETA workers). Councilmember Zeuschner commented that the comparison of City workers in Morro Bay to other cities within the County was useful, although he noted that many cities do not offer the same services as Morro Bay and as such, the figures can be deceiving. Mr. Bob Lane stated that Morro Bay was fortunate compared to other areas, and did not feel that the City had an abundance of employees. Gere Sibbach provided several corrected figures to Councilmember Risleys chart regarding City reserves. Mr.. Sibbach also provided technical backup_ regarding these figures, and stated that although the reserves had followed_a downward trend, the figures as projected for 82-83 were "the worst case" figures, and in all likelihood would be greater due to underestimated revenues, and unused contingency funds, as well as other increases.in revenues. Howard Gaines objected to the fact that Morro Bay had a much larger budget than other cities of its size in the County, and felt that there should be at least a 10% reduction in expenditures as well as a hiring freeze.. Councilmember Zeuschner asked if the Finance Department had received any indication of what bed tax revenues had been for the past quarter. Gere Sibbach stated that sales tax and bed tax figures for the last quarter were not available yet, however figures from the third quarter had shown an increase. of. 3% for bed tax and 88 for sales tax. Mr. Sibbach stated that in this case, inflation had. aided the City, and explained that even if business was down, prices had risen and so the City would still receive increased taxes. Ray Kaltenbach commented that although motel occupancy may be down in. some areas, others are doing,very well. Herminia Ward stated that the downtown motels and business are doing alright, however other business are down drastically. MORRO BAY CITY COUNCIL Adjourned Meeting - Budget Workshop August 9, 1982 Page Three Councilmember Lemons stated concern over the Resolution as attached in his packet. Mr. Baxter explained that this Resolution was a sample for Council to revise as desired and would not be acted upon until final revisions had been made to the budget. Councilmember Risley asked why the $25,000 fee for sewer discharge waiver had been included. Mr. Baxter explained that this was a starting figure for the waiver, which would most likely cost in the neighborhood.of $125,000. Mr. Baxter asked Council's direction concerning additional funding requests from outside agencies, and if these requests should be considered in the budget reduction of.10% also. Councilmember Zeuschner stated that these should possibly be cut by 10% also, but that staff should have some discretion in this area, as programs such as the EMT II program should not be cut. Mayor Shelton agreed that Council should take direction from the City Administrator is this matter. Water Rates John Bressan reviewed several options concerning progressive water rates, and explained that with the progressive/lifeline type system, the amount paid per unit (100 cu.ft) increases with use, so as to encourage conservation and allow the smaller users a price break. Mr. Bressan stated that in Option I, the customer who uses the smallest amount of water (0-4 billing units) would be charged a rate of $3.00 for bi-monthly billing, and_this amount would increase from there with use. John Bressan explained that each Option would provide equal or greater revenue than the current rate schedule, but.still provide a rate cut for small users. Mr. Baxter stated that these figures were based on the amount of water currently being used, and that they might vary if a great deal of conservation was realized. Councilmember Risley felt that the progressive rate as submitted by staff was an excellent job, and stated his feeling that it was an equitable system._ MORRO BAY CITY COUNCIL Adjourned Meeting/Budget Workshop August 9, 1982 Page Four John Bressan noted that the residential customers use approximately 70% of the water, and under this progressive system would provide about 67% of.the revenues, while the commercial user.would provide slightly more revenue for his amount of usage. M'May Diffley complained about the system of measurement (cubic feet) and felt.that straight gallonage would be easier for the consumer to understand. Herminia Ward wondered by what percentage the water rates had increased as compared to electricity. M'May Diffley asked what percentage of the water revenues were used for direct operating costs. Mr. Sibbach stated that those figures were not readily available, but it would be approximately $68,000 for capital expenditures,.with total expenditures of $702,000 for costs.such as line replacement, repairs, maintenance and other related costs. Mary Phillips suggested that the City could increase its revenues if it would.require.separate water meters on.all mobile homes and apartments within the City. John Bressan stated that this would not be possible due to connecting water systems in most apartments,.and would not show an increase in revenues as currently the mobile homes are paying at a higher rate under one meter, as the amount -of water is greater. Also, Mr. Bressan noted that if the City mandated separate meters, the City would have to pay for the meter and the installation itself. Mrs. Kathleen McWilliams stated that the City budget was out of line and should be reduced by at least 10%. Councilmember Risley stated that he would support Option I as prepared by staff and felt that it would allow the smaller user to receive a lower rate, and.would encourage conservation.. Councilmember Lemons stated his objection to the progressive rates and felt that the ,group that most need the rate reduction would be the family with children, and that under this system they would be paying higher rates because they would be using more water. Councilmember Lemons felt a flat rate of $1.10 with a. surcharge for users over 50 billing.units would provide the same revenue and not overly impact the families. Councilmember Lemons also noted that under the progressive system, the second home owners. who were only part-time residents were actually being subsidized by other customers. . C� i MORRO BAY CITY COUNCIL Adjourned Meeting/Budget Workshop August 9, 1982 Page Five MOTION: Councilmember Risley moved that Council adopt the water rate Option I. as submitted by staff for purposes of budget consideration, and that other. water fees (i.e. re -connection charges, etc.) remain as adopted by Council in 1981-82. The motion was seconded by Councilmember Zeuschner and carried by the following.roll call vote: AYES: Risley, Zeuschner, Shelton NOES: Anderson, Lemons ABSENT: None There was additional discussion regarding the motion. Councilmember Zeuschner stated that he felt this would be an equitable system., and would not overly impact the family -type consumers, but would encourage.conservation. Mayor Shelton agreed that the seasonal residents should not be subsidized, but also stated that this in the nature of the community, and that while these residents were only seasonal they also contributed to the City. MOTION: Councilmember Lemons moved that the meeting be adjourned to a closed session at 7:00 p.m. and regular session at 7:30.p..m. same date. The motion was seconded by Councilmember Anderson and carried unanimously. The meeting was adjourned at 6:15 p.m. RESPECTFULLY SUBMITTED, PEGGY BUCHANAN DEPUTY CITY CLERK C� MORRO BAY CITY COUNCIL ADJOURNED MEETING - AUGUST 6, 1982 CONFERENCE ROOM - 10:00 A.M. ROLL CALL: PRESENT: Bruce Risley Bud Zeuschner • PNDA NO. D_2 Action Councilmember Councilmember ABSENT: Euaene R. Shelton Mayor Rodger Anderson Councilmember John Lemons Councilmember The meeting was adjourned at 10:02 a.m. for lack of quorum. RESPECTFULLY SUBMITTED, PAUL BAXTER CITY ADMINISTRATOR MORRO BAY CITY COUNCIL • • REGULAR MEETING - JULY 26, 1982 RECREATION HALL - 7:30 P.M. ROLL CALL PLEDGE OF ALLEGIANCE - Horace Strong, Representing Morro Bay Veterans INVOCATION - Paula Ellis -Ferris, Trinity Methodist"Church, Los Osos PRESENTATIONS: 1. Resolution of Commendation for service to former Mayor Dorn and Councilmembers Deutsch and Ward 2. Resolution of Commendation upon retirement for Stephie Evans A. PUBLIC HEARINGS, REPORTS & APPEARANCES A-1 Public Hearing for property owners to protest tax liens placed on property for delinquent City utility bills A-2 Consideration of Master Fee Schedule Revisions B. UNFINISHED BUSINESS B-1 Interviews with Applicants for Various City Committees and Commissions B-2 Appointment of members to the Parks and Recreation Commission and Water Advisory Board B-3 California Safe Drinking Water Loan Offer (continued from 7-12) B-4 Ordinance to Amend Morro Bay Municipal Code Section 16.20.040 (Subdivision Ord.) providing for Variance from Standards (2nd reading) C. NEW BUSINESS C-1 Request by Morro Bay Beautiful to use City Recreation Building for office/storage C-2 Request by Cal Trans for approval of two murals to be placed on the Morro Bay undercrossing at Highways I and 41 C-3 Proposal for the organization of an underground improvement district C-4 Extension of Lease Site No. 68 and 68W for Deanna Davis D. CONSENT CALENDAR D-1 City Council minutes of July loth adjourned meeting and July 12th regular meeting D-2 Chamber of Commerce Expenditure Report for the month of June, 1982 D-3 City of Morro Bay, Expenditure Report for the month of June, 1982 D-4 Letter of appreciation to Mr. Frank Smith for donations to City D-5 Proposed Water Management Plan for Morro Bay Area i • D-6 Proposed Water Advisory Committee By -Laws D-7 Approval of Weed Abatement Charges for FY 1982-83 D-8 Hardship Refuse Collection Variances D-9 Authorization for staff to proceed with filing for 301(h) waiver to secondary treatment and request prcposals from consulting firms to prepare application D-10 Consideration of Extension for Tract Map 884 - Filer Corporation D-11 Resolution Approving Award of City Building Custodial Services Contract to B & W Service Industries, Inc. E. INDIVIDUAL DETERMINATION AND/OR ACTION E-1 City Attorney E-2 City Council E-3 City Administrator MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 26, 1982 RECREATION HALL - 7:30 P.M. Mayor Shelton called the meeting to order at 7:30 p.m. ROLL CALL PRESENT: Eugene R. Shelton Rodger J. Anderson John Lemons Bruce Risley Bud Zeuschner STAFF: Paul Baxter Michael T. LeSage John Bressan Murrel Crump Gary Napper Al Olson Mary Sanders Gere Sibbach Bernie Zerr Peggy Buchanan Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Director of Public Works Director of Community Development Administrative Assistant Police Chief Recreation Director Finance Director Fire Chief Deputy City Clerk Horace Strong led the Pledge of Allegiance, and the invocation was offered by Reverend Paula Ellis -Ferris of the Trinity United Methodist Church. PRESENTATIONS Mayor Shelton read Resolutions of Commendation for former Mayor Warren Dorn, and Councilmembers Dorotha Deutsch and Herminia Ward, and presented them each with plaques to thank them for their service to local government. A Resolution of Commendation was presented to Stephania Evans, who recently retired from the Morro Bay Police Department after many years. The Mayor and Council offered their appreciation and thanks to Stephie for her dedication. A. PUBLIC HEARINGS, REPORTS & APPEARANCES A-1 PUBLIC HEARING FOR PROPERTY OWN TAX LIENS PLACED ON PROPERTY Mr. Baxter informed Council that this item had not been properly noticed for this public hearing, and that staff recommends that it be continued until the first' -meeting in August 9, 1982. Councilmember Risley stated that at the regular meeting of July 12th, a motion concerning City billing vs. Morro Bay Garbage billing was tabled until further information could be gathered regarding cost involved and enforcement procedures available. MOTION: Councilmember Risley moved that this motion be taken from the table and acted upon by the Council. The motion was seconded by Mayor Shelton. MORRO BAY CITY COUNCIL • REGULAR MEETING - JULY 26, PAGE TWO IGF:I; • Councilmember Risley stated that after reviewing both the City Municipal Code and State code, it was apparent that the City could not place liens upon property for delinquent garbage bills as a means of enforcement. This was available only on overdue water or sewer charges. Councilmember Zeuschner felt that the matter of the public hearing for protests should be continued until it can be properly noticed by staff. Councilmember Lemons felt that no further information had been presented to Council and did not agree with acting on the issue of City billing vs. Morro Bay Garbage billing at this time. Councilmember Zeuschner suggested that Council request a Public Hearing be held on this matter, and that further information be gathered and presented at that hearing. A roll call vote on_the motion by Councilmember Risley was taken: AYES: Risley, Shelton, Anderson, Zeuschner NOES: Lemons ABSENT: None There was additional discussion regarding the information requested from staff, including cost analysis, enforcement ability, and information regarding penalities placed on delinquent garbage charges. MOTION: Councilmember Zeuschner moved that Council direct staff to prepare a report for Council containing.the.information requested regarding City billing vs. Morro Bay Garbage billing, and that it be noticed for Public Hearing. The motion was seconded by Councilmember Risley and carried unanimously. (5-0) A-2 CONSIDERATION OF MASTER FEE SCHEDULE REVISIONS Mr. Baxter stated that before Council were the revisions to the Master Fee Schedule as recommended at the meeting of July 12th. Mr. Baxter noted that the Fee Schedule had been publicly noticed, and printed in the Telegram Tribune on Saturday, July 17, 1982, and that it was a public hearing. Councilmember Anderson informed Council that he had received a call from Mr. Ross Boyd, who was concerned that the fee schedule revisions had not been published in the local paper (Sun Bulletin). Councilmember Anderson asked if any Councilmembers felt that this should be renoticed and republished in the local paper. Mr. Baxter stated that routinely, items are noticed in the Sun Bulletin whenever possible, however in some cases, where time constraints make it impossible to have an item published within the legal ten day notice, these items are published in the Telegram Tribune. Mr. Baxter stated that it was a large advertisement and might be costly to readvertise, if no others complaints had'been received. Councilmember Anderson questioned whether it would be worth re -noticing the schedule. MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 26, 1982 PAGE THREE Councilmember Risley felt that this matter had been brought before the public at several prior Council meetings, and that ample opportunity to comment on the item had been provided. Mayor Shelton opened the Public Hearing. Mr. Ross Boyd, 265 Kern Ave., spoke in opposition to the revised fee schedule. Mr. Boyd objected to the fact that the scheduled had not been published in the local paper, and felt that the increases in most of the fees were"ludicrous". Mr. Boyd asked the Council to postpone action on the matter and to meet with members of the public to arrive at a more equitable fee schedule. Mr. Bob Ward, 485 Kern Ave., also objected to the large increase in fees. Mr. Ward suggested a schedule of fee increases spread over a period of time as a compromise to the large increases. Mr. Crump explained several fees that had been questioned earlier, such as the land use confirmation letter, which he stated is for title companies, real estate firms, etc. who are regular "customers" and noted that the individual land owner who wants.to find out his zoning, will not be charged for the routine correspondence. Mr. Crump also noted that there is no change proposed for building permit fees, and that only the plan check fee is increase , which will not accutely affect the individual homebuilders/remodelers. Mr. Crump stated that in several cases, the City is charging substantially less that the actual cost of the service as an aid to the smaller or individual property owners. MOTION: Councilmember Lemons moved that the Public Hearing be closed. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Lemons, Zeuschner, Anderson, Risley, Shelton NOES: None ABSENT: None Councilmember Risley asked the Recreation Director, Mary Sanders, to give a brief review of changes in the fees for use of public buildings. Mrs. Sanders stated that there was no change in the Recreation Hall fee, and the fee for non-profit groups using the Veteran's Hall was to be increased by 25t (up to $2.00). Mrs. Sanders stated that several other fees had been rounded off, both to generate additional revenue, and for ease in bookkeeping. Councilmember Zeuschner stated that percentages can be deceiving, and when the actual dollar increases are studied, it shows that basically only special projects would be affected. There was additional discussion regarding fee revisions. MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 26, 1982 PAGE FOUR MOTION: Mayor Shelton moved that Council adopt the Resolution Revising the Master Fee Schedule, as submitted. The motion was seconded by Councilmember Lemons, and carried by the following roll call vote: AYES: Shelton, Lemons, Anderson, Risley, Zeuschner NOES: None ABSENT: None B. UNFINISHED BUSINESS B-1 INTERVIEWS WITH APPLICANTS FOR VARIOUS CITY COMMITTEES AND COMMISSIONS Mr. Baxter stated that at Council's invitation, applicants for the Parks and Recreation Commission, and the Water Advisory Board were present to give brief presentations regarding their background for these positions. The following applicants were present and provided information for Council; Timothy Barkas Charles Brown Gary Dargitz James Hartzell Joan Silva Herminia Ward Jack Smith FOR PARKS AND RECREATION COMMISSION Ray Kaltenbach Ernie Miller FOR WATER ADVISORY BOARD B-2 APPOINTMENT OF HE PARKS AND RE( ;SION AND WATER Mayor Shelton asked Council to rank the applicants in order of preference for the top three for Parks and Recreation Commission, and these were given to the City Clerk to tally. Mayor Shelton announced that Timothy Barkas, James Hartzell and Joan Silva were the top three candidates for Parks and Recreation Commission. Councilmember Zeuschner thanked all the applicants and encouraged their continued interest in City affairs. Mr. Ernie Miller, applicant for the Water Advisory Board stated that he had a conflict with the meeting time of the Water Board, and unless the time could be changed it was doubtful he could attend on a regular basis. MOTION: Councilmember Zeuschner moved that Council appoint Timothy Barkas, James Hartzell and Joan Silva to the Parks and Recreation Commission. The motion was seconded by Councilmember Risley and carried by a unanimous vote. (5-0) MORRO BAY CITY COUNCIL • • REGULAR MEETING - JULY 26, 1982 RECREATION HALL - 7:30 P.M. PAGE FIVE There was additional discussion with Mr. Miller regarding his availability for attendance at the Water Advisory Board meetings. MOTION: Councilmember Risley moved that the Council appoint Ray Kaltenbach to the Water Advisory Board. The motion was seconded by Councilmember Zeuschner and carried unanimously. (5-0) Mr. Baxter suggested that at this time Council make an appointment to the EOC Board of Directors. MOTION: Mayor Shelton moved that the Council designate Councilmember Bruce Risley as representative to the EOC Board of Directors. The motion was seconded,by Councilmember Anderson and carried unanimously. (5-0) B-3 CALIFORNIA SAFE DRINKING WATER LOAN OFFER Mr. Baxter requested that this matter be continued for discussion at the next Budget session. Councilmember Zeuschner requested that information regarding cost comparison of the project cost now, and that with the loan. Councilmember Risley read a paragraph within the Contract on page A-3 which requires the City to demonstrate to the State's satisfaction the community's support of the project either by election results or by a well noticed public hearing. Councilmember Risley stated that it was obvious that a public hearing would have to be held to comply with these requirements. Howard Gaines felt that this matter should be voted on by the people at the November 2nd election. Council concurred that this matter would:�be continued until the next budget session. B-4 ORDINANCE TO AMEND MORRO BAY MUNICIPAL CODE SECTION 16.20.040 (SUBDIVISION ORD. Paul Baxter stated that this was the second reading of an Ordinance which would provide for a variance procedure to be implemented within the Subdivision Ordinance. MOTION: Councilmember Zeuschner moved that Council read this Ordinance by title and number only. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: AYES: Zeuschner, Lemons, Anderson, Risley, Shelton NOES: None ABSENT: None Paul Baxter read "An Ordinance to Amend Morro Bay Municipal Code Section 16.20.040" MOTION: Councilmember Risley moved that Council adopt this Ordinance for its second reading. The motion was seconded by Councilmember Lemons and MORRO BAY CITY COUNCIL • • REGULAR MEETING - JULY 26, 1982 PAGE SIX carried by the following roll call vote: AYES: Risley, Lemons, Anderson, Zeuschner, Shelton NOES: None ABSENT: None C. NEW BUSINESS C-1 REQUEST BY MORRO BAY BEAUTIFUL TO USE CITY RECREATION BUILDING FOR STORAGE Mr. Baxter informed Councilthat he had received correspondence from Morro Bay Beautiful in which they requested use of the back room in the Morro Bay Recreation Department to store equipment. Mr. Baxter stated that in discussing this request with Mary Sanders, Recreation Director, she indicated that this room is not presently used as office space and would be available for use by Morro Bay Beautiful, at least on a temporary basis. Mary Sanders stated that Morro Bay Beautiful's problem has been inaccessibility to their litter control supplies, but that use of the Recreation Department would allow them access to the supplies from 8 to 5. Mrs. Sanders did not feel the use of this area would directly impact the Department. Councilmember Risley expressed his concern regarding the suitability of this area for storage, and felt that it would be a more suitable spot for an office, as space is needed in the City. Councilmember Risley suggested that the building behind the Recreation Department might be a more logical location for storage. Howard Gaines objected to the City providing space to private organizations and felt that there was a major conflict in that idea. Dorotha Deutsch stated that Morro Bay Beautiful was a true non-profit corporation, operating for the betterment of the community, and felt that in return for their many community service deeds, the City should allow them use of this area. Peter Diffley felt the issue was not Morro Bay Beautiful but whether there was an appropriate location for their use. Mr. Diffley did not feel the Recreation Department was an appropriate location. Herminia Ward felt that as Morro Bay Beautiful dedicates its efforts to keeping the City clean, the City should approve their request. Lila Keiser stated the Council should consider how clean the City is kept, and the fact that many citizens are members of Morro Bay Beautiful. Mary Phillips expressed her opinion that Morro Bay Beautiful should be allowed storage room in a community building and not the Recreation Building. MOTION: Councilmember Zeuschner moved the Council approve the request by Morro Bay Beautiful to use a portion of the Recreation Building for temporary storage, until such time as the area is need by the City, and that at such a time, the City aid in locating an alternative location for the group. The motion was seconded by Councilmember Lemons and carried unanimously. (5-0) MORRO BAY CITY COUNCIL • 0 REGULAR MEETING - JULY 26, 1982 PAGE SEVEN Mayor Shelton stated that he had no objection to allowing the Recreation Director to select an appropriate location with the building, or other storage buildings. Council recessed at 9:06 p.m. and reconvened at 9:16 p.m. 1-2 REQUEST BV CAL TRANS FOR APPROVAL OF TWO MURALS TO BE PLACED ON THE MORRO BAY UNDERCROSSING AT HIGHWAYS 41 AND 1 Paul Baxter explained that Cal Trans has requested authorization from the City of Morro Bay to place two murals on the highway undercrossing at Highways 41 and 1. Cal Trans has contacted various organizations with the community, and the proposal submitted to Council is from the Redwind Indian Foundation. Mr. Baxter displayed the proposed murals for Council's review. Mr. Baxter also noted that Cal Trans would be responsible for maintenance of the murals, and removal of all graffitti, while the City would be responsible for routine cleaning of the area. Councilmember Risley stated that he had reviewed the murals and that while it was no reflection on their artistic merit, he would like to see community involvement of local artists (Redwind Foundation is from Santa Margarita) or the Art Association. Councilmember Lemons agreed and asked if local organizations had been contacted. Mr. Baxter stated that Cal Trans had contacted some local groups, but he did not have the names. Mary Phillips felt this type of mural might be a distraction to drivers. Al Olson did not feel that the murals would offer any increased distraction over other every day driving distractions. Lila Keiser suggested contacting the Morro Bay High school for student participation. Grace Melton was concerned over the possibility of increased graffitti. Peter Diffley suggested that the murals be displayed in some public area so people could view the proposals. There was additional discussion on the Cal Trans proposal. MOTION: Councilmember Zeuschner moved that Council direct staff to contact local organizations, schools, artists, etc., and solicit participation in this project, and if no participation is received to go forward with the Cal Trans proposal as submitted. The motion was seconded by Councilmember Risley and carried unanimously. (5-0) Both Mayor Shelton and Councilmember Zeuschner felt the idea was excellent, and would benefit the city. MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 26, 1982 PAGE EIGHT C-3 PROPOSAL FOR THE ORGANIZATION OF AN UNDERGROUND IMPROVEMENT DISTRICT Mr. Baxter requested that the Public Works Department provide the staff report. John Bressan, Public Works Director, stated that this is the first step to form an improvement district to relocate utilities underground. Mr. Bressan explained that the utility companies (P.G.&.E.,Pacific Telephone,Sonic, etc) are required to set aside funds for undergrounding of utilities, and the City has the discretion in using these funds as they accumulate for underground districts. The last such district was in 1977, along Morro Bay Blvd. Mr. Bressan explained further that once a district is chosen, a Public Hearing must be held before the district can be formed. Council's responsibility is to designate where the district should be located. Staff is recommending two possible areas, 1) along Morro Bay Blvd, as an extension of the last district and 2) north of Beach Street along the Embarcadero, and south of South Street, along the Embarcadero. Mayor Shelton asked the reason for these two areas. Mr. Bressan stated that one (Morro Bay Blvd.) is a main entrance to the City, and would greatly improve the appearance of this area, and the other (the Embarcadero) is a tourist oriented location, and would enhance the appeal of the area. Mr. Bressan also noted that the cost of either projectiwould be approximately equal. Councilmember Lemons asked if one area needed to be designated prior to the Public Hearing. Mr. Bressan explained that both areas could be designated as improvement districts and at the time of the Public Hearing, one could be finally chosen. Councilmember Lemons asked what the cost to the city would be. Mr. Bressan stated that there need be no cost to the City, as the funds are set aside.by the Utility Companies for this purpose and the project would not exceed the funds available. MOTION: Councilmember Lemons moved that Council hold a Public Hearing on the formation of improvements districts at both locations specified by the Public Works Department (extension of Morro Bay Blvd. and Embarcadero area). The motion was seconded by Councilmember Zeuschner and carried unanimously. (5-0) Janet Bailey questioned why the areas could not be designated in a residential area. Mr. Bressan stated that he believed the funds were limited to use in a commercial or downtown area, but would check and confirm this with Mrs. Bailey. MORRO BAY CITY COUNCIL • REGULAR MEETING - JULY 26, 1982 PAGE NINE C-4 EXTENSION OF LEASE SITE NO. 68 AND 68W FOR DEANNA DAVIS Paul Baxter explained that this County Lease contract had expired six months ago and was granted a six month extension which will expire on July 30th. The leasee wishes to wait for the County Appraiser's report prior to working with the City on any lease renewal or extension. Both staff and the.leasee have agreed to an extension of the lease on a month to month basis pending the report from the County Appraiser. MOTION: Councilmember Zeuschner moved that Council approve the extension of Lease Site agreement for Sites 68 and 68W, Deanna Davis, as submitted by staff. The motion was seconded by Councilmember Lemons, and carried by the following roll call vote: AYES: Zeuschner, Lemons, Anderson, Risley, Shelton NOES: None ABSENT: None D. CONSENT CALENDAR Paul Baxter stated that itens D-5 and D-9 should be pulled from the Consent Calendar for Council discussion. Mr. Baxter then reviewed the following Consent Calendar items: D-1 CITY COUNCIL MINUTES OF JULY LOTH ADJOURNED MEETING AND JULY 12TH REGULAR MEETING Mr. Baxter recommended approval as submitted. D-2 CHAMBER OF COMMERCE EXPENDITURE REPORT FOR THE MONTH OF JUNE, 1982 Mr. Baxter informed Council that the Finance Director had reviewed the report for accuracy and compliance and is recommending approval as submitted. D-3 CITY OF MORRO BAY EXPENDITURE REPORT FOR JUNE, 1982 Mr. Baxter stated that the Expenditure Report had been prepared by the Finance Director for the month of June, 1982, and recommended approval as submitted. D-4 LETTER OF APPRECIATION TO MR. FRANK SMITH FOR DONATIONS TO THE CITY Mr. Baxter stated that a letter of appreciation had been prepared thanking Mr. Smith for donations to the City Harbor Department and recommended that the Mayor be authorized to sign on behalf of the City. D-5 PULLED FROM CONSENT D-6 PROPOSED WATER ADVISORY COMMITTEE BY-LAWS Mr. Baxter stated that the Water Advisory Board had submitted proposed By -Laws for Councils approval, and staff recommends that Council ratify the By -Laws as submitted. D-7 APPROVAL Of WEED ABATEMENT CHARGES FOR FY 1982-83 MORRO BAY CITY COUNCIL • REGULAR MEETING - JULY 26, 1982 PAGE TEN Mr. Baxter explained that this item was the list of yearly charges recorded during the weed abatement program to be added to the tax rolls for those property owners who have not paid the assessment as recorded by staff, and recommended that Council approve the list and direct staff to have the billings added to the tax rolls. D-8 HARDSHIP REFUSE COLLECTION VARIANCES The Refuse Franchise Board has submitted three names for hardship variances and requests that the Council approve the findings as submitted for Virginia DeBrum, Wilhelminia Giannini and Ella B. Bafford. D-9 PULLED FROM CONSENT CALENDAR D-10 CONSIDERATION OF EXTENSION FOR TRACT 884 FILER CORPORATION Mr. Baxter explained that recent legislation extending the filing time for a tenative tract map from eighteen to twenty-four months would require a Council determination as to the City's policy of whether or not the legislative change is retroactive. The only application that would be affected by the change is the Filer Tract 884. Staff and Mr. LeSage recommend that Council approve the extension for Tract 884. D-11 RESOLUTION APPROVING AWARD OF CITY BUILDING CUSTODIAL SERVICES CONTRACT Mr. Baxter recommended that Council approve the Resolution awarding the City Building Custodial Services Contral to B & W Service Industries, Inc., in the amount of $17,205.60. MOTION: Councilmember Risley moved that the Consent Calendar, with the exception of items D-5 and D-9 (Proposed Water Management Plan for Morro Bay Area; Authorization for staff to proceed with filing for 301(h) waiver to secondary treatment and request proposals from consulting firms to prepare application) be approved. The motion was seconded by Councilmember Lemons, and carried by the following roll call vote: AYES: Risley, Lemons, Anderson, Zeuschner, Shelton NOES: None ABSENT: None D-5 PROPOSED WATER MANAGEMENT PLAN FOR MORRO BAY AREA John Bressan, Director of Public Works provided Council with the staff report. Mr. Bressan explained that the Preliminary Draft of the Water Management Plan for Morro Bay had been completed, and that comments from the Water Advisory Board were being submitted for Council's review. Mr. Bressan stated that this Preliminary Draft will be revised according to the comments received by the DWR from several sources. Mr. Bressan noted that the Plan has been available for almost two months, at several public locations, and no comments have been received by the City to date. Mayor Shelton inquired if a Public Hearing was necessary on this draft. Mr. Bressan said that a Public Hearing was not a'requirement, and that since it MORRO BAY CITY COUNCIL • • REGULAR MEETING - JULY 26, 1982 PAGE ELEVEN was a very technical document, it was unlikely that most persons would have comments. Councilmember Risley felt that a Public Hearing should be held to make the public aware of the document and allow for comments. Councilmember Risley did not feel that the minutes of the Water Advisory Board accurately reflected the comments made at that meeting concerning the Preliminary Water Management Plan. Councilmember Lemons was opposed to the Public Hearing and felt that this was only a preliminary draft, and not the final report, and that any discussion of adopting the plan or the steps indicated in the plan would be premature. Councilmember Lemons also pointed out that the Plan had been available to the public for two months and very little if any interest had been shown. John Bressan stated that although he did not feel a Public Hearing was necessary, if any changes were to be suggested it should be at this stage and not after the Plan has been finalized. There was additional Council discussion concerning the need for a Public Hearing. M'May Diffley felt there had been a great interest expressed in the Water Plan and urged Council to set this matter for Public Hearing. Mr. Don Bailey agreed, and stated that he supported the idea of a Public Hearing. Howard Gaines objected to the staff deciding what was techniical and what the public should hear. Councilmember Lemons stated that the Preliminary Draft does not obligate the Council to take any of the steps indicated, or to even adopt the plan and felt that a Public Hearing would be non -productive. Mayor Shelton agreed with Councilmember Lemons, that public input has not been forthcomming but felt that a public hearing could be held for public comments to the draft. MOTION: Councilmember Risley moved that the Council direct staff to set this Preliminary Water Management Plan for a Public Hearing on August 23rd, 1982, at the Regular City Council meeting. The motion was seconded by Mayor Shelton and carried by the following roll call vote: AYES: Risley, Shelton, Anderson, Lemons, Zeuschner NOES: None ABSENT: None Mr. Bressan stated that he would like to have Mr. Kiyoshi Mido from the DWR present at the Public Hearing, and would try to arrange his presence. MORRO BAY CITY COUNCIL • • REGULAR MEETING - JULY 26, 1982 PAGE TWELVE D-9 AUTHORIZATION FOR STAFF TO PROCEED WITH FILING FOR 301(h) WAI Mr. Baxter requested that Council continue discussion on this item until the regular meeting of August 9th, pending response from the Cayucos Sanitary District on this matter. Mr. Baxter explained that the Cayucos Sanitary District had stated that they would hold a special meeting on the 9th, and have their report to the City that same day. MOTION: Councilmember Zeuschner moved that Council continue this matter until the regularly scheduled meeting of August 9th. The motion was seconded by Mayor Shelton and carried unanimously. (5-0) Mr. Bressan briefly explained the process of filing for the waiver, and the necessity of the action. Mr. Diffley questioned the need for the waiver. Mr. Bressan explained that if the City were to receive a grant, it would be mandated that the waiver be filed, and if no funds were received, our plant currently does not meet EPA discharge standards, and the waiver would still be necessary. E. INDIVIDUAL DETERMINATION AND/OR ACTION E-1 CITY ATTORNEY Mr. LeSage requested a brief closed session to discuss the Ashurst Well site. E-3 CITY COUNCIL Councilmember Zeuschner congratulated the Public Works Department and City on the completion of the ocean outfall. Mr. Bressan stated that the outfall had been completed and was operating at 100% and that the total cost was approximately 1.5 million dollars. Gere Sibbach asked Council to recognize the participation of Security Pacific Bank in the loan of 1.2 million for the projecting, pending funding reimbursement. Councilmember Risley asked for an update on the property to be acquired by Chapter 8 Tax Sale. Mr. Baxter stated that he had received no word as of yet. Mayor Shelton asked for an up -date on the selection of the Senior Citizens Center site. Mr. Baxter stated that this could be brought before Council at the meeting of August 9th. MOTION: Councilmember Zeuschner moved that Council formally adopt the Resolutions commending former Mayor Warren Dorn, Councilmember Dorotha Deutsch, and Herninia Ward, and the Resolution commending Stephie Evans upon her retirement. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: MORRO BAY CITY COUNCIL • • REGULAR MEETING - JULY 26, 1982 PAGE THIRTEEN AYES: Zeuschner, Lemons, Anderson, Risley, Shelton NOES: None ABSENT: None Mayor Shelton announced he would be out of town on August 2, 3 and 4, and asked Council to excuse him. E-3 CITY ADMINISTRA Mr. Baxter requested that Council adjourn tonights meeting to August 6th at 10:00, for a meeting with Jim Ryerson of the Coastal Commission. Mr. Baxter also requested that Council select a date for a budget hearing/workshop. After brief discussion, Council selected August 9th, at 4:00 p.m. for its next budget workshop. Council adjourned to closed session at 10:55 p.m. and reconvened at 11:15 p.m. MOTION: Councilmember Lemons moved that Council adjourned to 10:00a.m. Friday, August 6th, 1982, for a meeting with fir. Jim Ryerson of the Coastal Commission and then to August 9th at 4:00 p.m. for a budget workshop. The motion was seconded by Councilmember Zeuschner, and carried unanimously. (5-0) The meeting adjourned at 11:15 p.m. RESPECTFULLY SUBMITTED, t PEG ANAN DEPUTY CITY CLERK MORRO BAY CITY COUNCIL Date ai y Action SPECIAL MEETING - JULY 23, 1982 CITY HALL CONFERENCE ROOM - 10:00 A.M. Mayor Shelton called the meeting to order at 10:03 a.m. Those present were: ROLL CALL MIM"k M Eugene R. Shelton John Lemons Bruce Risley Bud Zeuschrer ABSENT: Rodger Anderson STAFF: Paul Baxter Michael LeSage John Bressan Peggy Buchanan Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Director of Public Works Deputy City Clerk Paul Baxter stated that the purpose of the meeting was to consider-the:possible condemnation and acquisition of the Ashurst property (Delmar Ashurst, Roandoak of God). Mr. LeSage stated that the City had become concerned when the property had been noticed for a Sheriff's Sale, as the City has a well site (#9A) on the property and this well site was one of the more important sites the City has. Mike LeSage explained that the City has had a long standing relationship with Delmar Ashurst to use this well site in exchange for 6 mooringsand 1 City slip, as well as grazing rights for Roandoak of God. The City is concerned that if a third party should become involved with the sale of the property, the City use of the well site might be endangered. Mr. LeSage pointed out that Council had the alternative of condemnation, however this process takes time and it might be preferable if negotiations could be authorized for a possible solution. Mr. LeSage mentioned that he had just been able to have the Sheriff's Sale for this piece of property postponed for a week or two, and that this might allow time for negotiation. Mayor Shelton stated that Council would go into Closed Session, and asked for any comments from the audience. Mr. Ashurst stated that he felt that they were a part of the Morro Bay Community and wanted to help in any way they could and were concerned about the welfare of the town. Mr. LeSage agreed and stated that the City had a very amicable relationship with Mr. Ashurst however, if a third party was to become involved this could change the current situation. Tim Ryan asked what the appraised value of the property was. MORRO BAY CITY COUNCIL SPECIAL MEETING - JULY 23, 982 PAGE TWO 0 Mr. LeSage stated that the apprisal based on the fair market value which would be substantially higher, than a negotiated sale price, was $44,000, based upon a figure of a sale next door, and appraisal of the well and improvements. Mr. Ryan also asked when the postponed sale would take place. Mr. LeSage stated that a date had not been confirmed. Mary Phillips felt the City should show its appreciation to Mr. Ashurst for the water he made available to the residents and objected to any condemnation by the City. Mr. LeSage stated that the City was trying to be fair to all involved in this situation. Mary Phillips asked if the property would be open to public bid at the Sheriffs sale. Mr. LeSage stated it would, and would go to the highest bidder. Mayor Shelton ordered the meeting to a Closed Session, at 10:04 a.m. The meeting reconvened to Open Session at 10:30 a.m. MOTION: Councilmember Risley moved that Council authorize staff to commence negotiations, and report back to Council. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Risley, Zeuschner, Lemons, Shelton NOES: None ABSENT: Anderson MOTION: Upon motion by Councilmember Lemons, and second by Mayor Shelton, the meeting was adjourned to the regular meeting of July 26, 1982. at 10:35 a.m. RE$7CTFULLY SAMITTED, PEGG B ANA/N DEPUTY CITY CLERK MORRO BAY CITY COUNCIL 6 REGULAR MEETING - JULY 12, 1982 RECREATION HALL - 7:30 P.M. ROLL CALL PLEDGE OF ALLEGIANCE INNVOCATION - Don Carey, United Presbyterian Church PRESENTATION: Resolution Commending Fire Engineer James Eidson upon his retirement A. PUBLIC HEARINGS, REPORTS & APPEARANCES A-1 Case No. CUP 03-82 (P.D. Zone General Plan) - Ralph I. Gunther, applicant. Consideration of Planning Commission recommendation of approval of Use Permit in PD Zone / 845 Embarcadero A-2 Consideration of Amendment to Morro Bay Municipal Code (Subdivision Ordinance) Section 16.12.040 providing for a Variance from standards A-3 Consideration of Amendment to conditions required in approval of motel in the PD Zone (Harold Biaginni- request withdrawn) A-4 Consideration of Amendment to Mandatory Refuse Collection Ordinance relating to billing procedures. A-5 Consideration of a ballot measure for the November 2, 1982, general election, to increase bed tax from 6% to 9% A-6 Further Consideration of Master Fee Schedule Revisions B. UNFINISHED BUSINESS B-1 Request by Mary Phillips for exemption to Mandatory Garbage Ordinance (report from Refuse Franchise Board) B-2 Resumption of Processing for Case No. 16-81 and related EIR; Sylvester Morning B-3 Ordinance amending Chapters 8.24, 10.52, 10.48, and 10;16 of the Morro Bay Municipal Code regarding violations and penalties (2nd reading) B-4 Ordinance amending Section 5103.2 of Ordinance No. 65 pursuant to the provisions of Chapter 17.64 of the Morro Bay Municipal Code, Case No. CZ 01-82 (2nd reading) B-5 Ordinance amending certain sections_ of Chapter 10.48 of the Morro Bay Municipal Code regarding Abandoned Vehicles (2nd reading) B-6 Amendment to Ordinance No. 185 regarding Animal Regulations (2nd reading) B-7 Application to appropriate unappropriated water at Cabrillo Wells - VRM Property B-8 Request by Joseph Alldredge for Council consideration of new Harbor lease site C. NEW BUSINESS C-1 Review of California Safe Drinking Water Loan Offer C-2 Designation of Mayor Pro-Tem and appointment of Council to serve on various committees CITY COUNCIL AGENDA . • JULY 12, 1982 PAGE TWO C-3 Consideration of acquisition of Chapter 8 Sale Properties in the City of Morro Bay C-4 Designation of City representative as liaison to State for Park Development C-5 Designation of City representative to Community Roundtable C-6 Request from Morro Dunes for construction of facilities on Leasesite C-7 Setting of Public Hearing date for property tax liens for delinquent utility bills C-8 Correspondence from Citizens Action League requesting advisory measures be placed on November 2, 1982, ballot D. CONSENT CALENDAR D-1 City Council minutes of regular meeting on June 28, 1982 D-2 Right-of-way Certification for FAU Prject - Hwy 41 to vicinity of Radcliffe D-3 Request for City Council to declare (2) Argosy Transit Buses Surplus D-4 Approval of Tract Map 1012 D-5 Resolution Supporting Congressman Panetta's Legislation (H.R. 6365) regarding Offshore Drilling Moratorium D-6 Resolution Establishing Rules, Regulations & Fees for Use of Public Hoist at So. City T-Pier E. INDIVIDUAL DETERMINATION AND/OR ACTION E-1 City Council E-2 City Attorney E-3 City Administrator MORRO BAY CITY COUNCIL • REGULAR MEETING - JULY 12, 1982 AGENDAN0. �— RECREATION HALL 7:30 P.M. Date L 2-" _ Action Mayor Shelton called the meeting to ,order at 7:30 p.m. ROLL CALL PRESENT: STAFF: Eugene R. Shelton Mayor Rodner J. Anderson Councilmember John Lemons Councilmember Bruce Risley Councilmember Bud Zeuschner Councilmember Paul Baxter City Administrator Michael T. Le Sage City Attorney John Bressan Public Works Director Set. G. Carpenter Police Department Murrel Crump Community Development Director Gary Napper Administrative Assistant Mary Sanders Recreation Director Gere Sibbach Finance Director Bernie Zerr Fire Chief Peggy Buchanan Deputy City Clerk The Pledge of Allegiance was led by Mr. Horace Strong, representing Morro Bay Veterans, and the innvecation was given by the Reverend Charles Erickson, of St. Peter's Episcopal Church. PRESENTATION: Resolution Commending Fire Engineer James Eidson upon his retirement. Mayor Gene Shelton presented Fire Engineer James Eidson a certification of appreciation and thanked him for his many years of dedicated service to the City. The Mayor stated that a plaque would be prepared with a Resolution of the City Council to commend Mr. Eidson for his over twenty years of service to the City. A. PUBLIC HEARINGS, REPORTS & APPEARANCES A-1 CASE NO. CUP 03-82 (P.D. ZONE GENERAL PLAN) - Paul Baxter reviewed this application for remodeling and a Use Permit and stated that the Planning Commission has reviewed this Use Permit and remodeling application and prepared a Resolution with conditions. Mr. Baxter stated that if approved with these conditions, the applicant would have to return to the Planning Comission with a specifi plan for their review and approval. Mr. Baxter stated that this was a noticed public hearing. Mayor Shelton asked the applicant for any comments. Mr. Gunther stated that basically the remodelling was an attempt to create a "mall effect" between the two lease sites. MORRO BAY CITY COUNCIL REGULAR MEETING -JULY 12, 1 2 PAGE TWO Murrel Crump gave a brief overview of the project, stating that this was step one of a two step approval process, and that these were more or less conceptual plans, to be reviewed prior to formulation of specific plans. Mr. Crump explained that the Use Permit was for a business that has been in operation for several years, and would confirm the existing facilities and uses. Mayor Shelton opened the Public Hearing and there were no comments from the audience regarding this project. MOTION: Councilmember Zeuschner moved that the Public Hearing be closed. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: AYES: Zeuschner, Lemons, Anderson, Risley, Shelton NOES: None ABSENT: None Councilmember Risley asked if this application contained a list of permissible uses. Mr. Baxter stated that the uses will remain as specified in the lease agreement. Councilmember Risley questioned if the site was subleased. Mr. Gunther indicated it was not presently subleased. There was additional discussion regarding this lease site and the proposed remodeling project. Councilmember Zeuschner confirmed with Mr. Crump that this was merely a conceptual plan and that the Planning Commission will review the specific plan and Council will have the final authority as landlord. MOTION: Councilmember Risley moved that the Council adopt the Resolution as submitted approving the Use Permit and granting remodeling subject to conditions as recommended by the Planninn Commission. The motion was seconded by Councilmember Zeuschner, and carried by the following roll call vote: AYES: Risley, Zeuschner, Lemons, Shelton NOES: None ABSENT: None ABSTAIN: Anderson A-2 CONSIDERATION OF AMENDMENT TO MORRO BAY MUNICIPAL CODE (SUBDIVISION Mr. Baxter explained to Council that this Ordinance would allow for a variance procedure concerning the minimum lot size of 6000 square feet. The Subdivision Ordinance does not presently allow for such a procedure and staff feels it would allow some flexibility to allow for consideration of substandard lot sizes. Mr. Crump stated that this ordinance would set up a variance.procedure but would not automatically grant a variance, this could only be done by the Planning Commission after review of the individual case. Mr. Crump explained that there are quite a few lots within the City that are not 6000 square feet. MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 12, 1982 PAGE THREE Mayor Shelton opened the Public Hearing. Ms. Gladys Walton spoke regarding a lot she is attempting to purchase that is not 6000 square feet, and urged Council to approve the Ordinance which would allow this variance process. Howard Gaines spoke against the variance procedure and felt that the City should not allow any building on substandard lots. Mr. Crump reminded Council that the ordinance itself will not allow building on substandard lots, it will only set up the administrative relief process of a variance. Mary Phillips asked if the variance process would apply to the requirement of a garage. Mr. Crump indicated that it would not. Hope Miller stated that there are many lots below 6000 square feet in the City of Morro Bay. Mr. Crump explained that all lots which appeared on the 1964-65 tax assessor's rolls, were "grandfathered" in however, parcels created after this time were required to meet the standards of the City. Richard Miller informed Council that his clients had 'purchased property that was not a 6000 square foot lot, and that it was 90% the size of surrounding properties. There was a brief discussion regarding this property. MOTION: Councilmember Anderson moved to close the Public Hearing. The motion was seconded by Councilmember Risley and carried by the following roll call vote: AYES: Anderson, Risley, Lemons, Zeuschner, Shelton NOES: None ABSENT: None Mayor Shelton asked what the normal procedure was regarding an illegial lot split. Mr. Crump stated that the property owner must receive a Certificate of Compliance, which does not necessarily allow building, but does allow the property to be transferred. Mayor Shelton asked if there would be any negative consequences to this Ordinance. Mr. Crump stated that most cities have provisions for variances within the Zoning Ordinance and that this would be the ideal situation, however, the Ordinance would allow for some hardships to seek relief. Mayor Shelton questioned Michael LeSage on this type of ordinance. Mr. LeSage stated that it was prudent to ask for a certificate of compliance at the time of purchase of property, however this was not always done. He also indicated MORRO BAY CITY COUNCIL • • REGULAR MEETING - JULY 12, 1982 PAGE FOUR that there is a case pending whereby City Ordinances may be declared unreasonable if they prevent small lots from being built upon. Mr. LeSage suggested the variance approach as an alternative. MOTION: Councilmember Zeuschner moved that this Ordiance be read by title and number only. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: AYES: Zeuschner, Lemons, Anderson, Risley, Shelton NOES: None ABSENT: None Paul Baxter read," An Ordinance Amending Section 16.12.040 Providing a Variance from Standards". MOTION: Councilmember Zeuschner moved that this Ordinance be adopted as read for its first reading. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: Mayor Shelton suggested two brief wording, changes to the Ordinance be included in the motion - as follows: Exhibit "A" C. 1 and 2 - to read "...same vicinity and zone." Exhibit "A" G. 3 - to change "this" at its first occurance to "the" Councilmember Zeuschenr and Councilmember Lemons agreed to this amendment to the Ordinance. AYES: Zeuschner, Lemons, Anderson, Risley, Shelton NOES: None ABSENT: None A-3 CONSIDERATION OF AMENDMENT TO CONDITIONS REOUIRED IN APPROVAL OF MOTEL IN P Mr. Baxter stated that Mr. Biaginni had withdrawn his request for a change in conditions, however this item was before Council at their request, to consider re-examination of the entire project. Mayor Shelton stated that the Council was in receipt of Mr. Le Sages opinion that the entire project could be reviewed by the City Council, and that no vested interest in the property occured until the actual construction had begun. Council discussed this matter, and it was felt that the project should be reviewed again by the Planning Commission. Mayor Shelton opened the Public Hearing. Mr. Pieskowski commented on the proposed motel and urged Council to make their decision carefully. MORRO BAY CITY COUNCIL • • REGULAR MEETING - JULY 12, 1982 PAGE FIVE MOTION: Councilmember Risley moved that the Public Hearing be closed. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Risley, Zeuschner, Anderson, Lemons, Shelton NOES: None ABSENT: None Councilmember Zeuschner questioned whether the traffic circulation and Environmental Impact Report would be available for Council.;Review. Councilmember Lemons asked Mr. LeSage what type of finding it would require to revoke a Use Permit. Mr. LeSage stated that it would have to be determined that the project would have detrimental or injurious effect to the property or improvements of surrounding properties. Councilmember Lemons asked whether the granting of a Use Permit by the City, and the fees spent by the applicant would constitute a vested interest. Mr. LeSage indicated that Court decisions reveal it would not. There was discussion regarding the zoning and land use for this property. M1OTION: Councilmember Risley moved that this be project be referred back to the Planning Commission for further review. The motion was seconded by Mayor Shelton. There was additional discussion regarding compliance of this project with the Coastal Commissions requirements for Land Use. MOTION: Councilmember Zeuschner moved to table the.first Motion by Councilmember Risley. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: AYES: Zeuschner, Lemons, Anderson, Shelton NOES: Risley ABSENT: None A-4 CONSIDERATION OF DATORY REFUSE COLLECTION ( Mr. Baxter stated that this matter had been brought to Council at their request, and that the three questions regarding the Mandatory Refuse Collection Ordinance referred to the Refuse Franchise Board had been returned with their recommendations as follows: 1) Concerning the proposal to return billing procedures to the Garbage Company, the Refuse Board recommended that the City continue the billing service since transfer might lessen the enforceability of the Ordianance. 2) Concerning any cost savings to the Garbage Company from this billing change that could be returned to the customers, the Refuse Board did not see this as likely due to the fact that Morro Bay Garbage currently processes its billings manually at a higher cost than for City billing by computer. MORRO BAY CITY COUNCIL • REGULAR MEETING - JULY 12, 1982 PAGE SIX 3) Concerning the proposed Ordinance to prohibit the Garbage Company from using its office for political campaign purposes, the Refuse Board was concerned about the legality of such an ordinance. Mayor Shelton opened the Public Hearing. Ron Myers, Chairman of the Refuse Board stated he would be happy to answer any questions regarding their recommendations. Ray Kaltenbach objected to the Mandatory Refuse Ordinance only allowing one can of mandatory pick-up. Mr. Myers stated that the Refuse Board agreed that it would be better to have everything picked up but that this would not be the cheapest way, and the citizens had made it clear that costs should be kept down. Herminia Ward agreed, and cited the City of Santa Maria, with a $9.00 charge for mandatory service where everything is picked up. Howard Gaines objected to the fact thEt all trash is not always picked up and felt that the garbage belongs to the City once it is placed on the curb and should be picked up because of health hazards. Councilmember Risley reminded the audience of the basic questions before Council, as stated above. Mary Phillips felt that the City should purchase their own refuse vehicles, and until then should stay out of the garbage business. Dorotha Deutsch asked how the Ordinance would be enforced if billing was returned to the Garbage Co. Jane Von Keogh stated that she also objected to the Garbage Company not picking up all the trash;for the mandatory rate. Mary Phillips stated that Council has the "clout" to enforce the Ordinance through the Health Department. Lila Keiser felt the City was fortunate to have the current franchisee and felt that Mandatory Refuse pick up was good. Pat Wagner, of Morro Bay Garbage, stated that the Garbage Co. would rather pick up all the trash for one rate also, however, this would not be the cheapest way and rates would need to be raised. Hank Mott, attorney for the Morro Bay Garbage Company suggested that Council consult with Michael LeSage concerning the Ordinance to prohibit political campaigning within the garbage office. Mr. Mott stated that this was clearly in violation of the 1st Amendment and should not be adopted. MORRO BAY CITY COUNCIL • • REGULAR MEETING - JULY 12, 1982 PAGE SEVEN MOTION: Councilmember Risley moved that the Public Hearing be closed. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: AYES: Risley, Lemons, Anderson, Zueschner, Shelton NOES: None ABSENT: None Councilmember Risley suggested that Council follow through with Councilmember Zeuschner's motion during their last meeting to transfer billing back to the Garbage Company. Councilmember Zeuschner stated that his motion had been to investigate the possibility of this action, and not to approve it then. Councilmember Risley felt that Council should adopt the Resolution has submitted to give the billing process back to the garbage company. Councilmember Lemons stated that in the absence of a comparable billing system, no savings could be gained, and the enforcement mechanism for the ordinance could not be used. Councilmember Zeuschner was also concerned about the effects of turning the billing back to the Garbage Company on enforcement of mandatory service. Mr. Baxter explained that if the billing was in the hands of the garbage company, there would have to be some cooperation regarding information to the company for new services, as well as new services. There was a discussion regarding enforcment tools the Garbage company would have, i.e. small claims court, tax liens. Councilmember Zeuschner asked Mr. Sibbach about the cost to the City for billing. Mr. Sibbach stated that currently the City is billing $300-$400 a month to the Garbage Company for services. Mr. Sibbach stated that since many of the costs are: up -front costs for initiating service, and the City has only 6 months to base data on, it is hard to know if this amount is sufficient. However, Mr. Sibbach stated that it was his feeling that this was an adequate amount. MOTION: Councilmember Zeuschner moved to table the first issue of City billing vs. Morro Bay Garbage billing, until further information can be gathered regarding the costs involved and the enforcement procedures available to Morro Bay Garbage. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: AYES: Zeuschner, Lemons, Anderson NOES: Risley, Shelton ABSENT: None MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 12, 982 PAGE EIGHT 11 Council then discussed the next issue of the proposed Ordinance restricting the Garbage franchise from using their offices for political campaign purposes. Councilmember Anderson asked for Michael LeSage's opinion regarding the legality of this proposed Ordinance. Michael LeSage stated that in his opinion an ordinance of this type would be restricting free speech and felt that the City (lid not have the authority to prevent the franchisee from political activity. Councilmember Zeuschner felt that Council should defend the 1st amendment and principles of free speech rather than restricting this activity. Councilmember Risley disasgreed, and felt that the Garbage Company had a monopoly, and as citizens had no choice other than to do business with them, they should not have to be subjected to political campaigning. MOTION: Councilmember Lemons moved that paragraph H of the proposed Ordinance be stricken. Mr. LeSage instructed Council that this motion was unnecessary, and that no action on this Ordinance would have the same effect. The motion died for lack of a second. MOTION: Councilmember Zeuschner moved that Council receive the report and recommendation from the Refuse Franchise Board and thank them for their time. The motion was seconded by Councilmember Risley and carried unanimously. (5-0) Council recessed briefly at 9:25 p.m. and reconvened at 9:36 p.m. A-5 CONSIDERATION OF A BALLOT MEASURE FOR THE NOVEMBER 2, 1982, GENERAL ELECTION, TO Paul Baxter stated that this was a proposal to increase the occupancy (bed) tax from 6% to 9%, and had been scheduled as a public hearing at Council's request. Mr. Baxter stated that Resolution had been prepared for Council review. Mr. Baxter also noted that San Luis Obispo, Paso Robles and Grover City were placing the measure on the ballot, and Pismo Beach, Atascadero and Arroyo Grande had declined to put the measure to vote. Mayor Shelton asked the origin of this measure. Mr. Baxter reported that at the Mayors Select Committee meeting of June llth, it had been decided that each city should place this measure before the public as a County -wide bed tax increase. Mayor Shelton opened the public hearing. The following persons spoke during the hearing, opposing the bed tax increase for the following reasons: potential loss of business, jobs, income, revenue and objections to discriminatory taxation. MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 12, 82 PAGE NINE • Ernie Miller, 350 Arbutas, Morro Bay Herb Johnson, motel owner Jane Bailey, Friends of the Library (not in opposition -question re Ron Anderson, Motel Owners Association of M.B. Herminia Ward, former motel owner Cheri Barker, Morro Bay businessperson Howard Gaines, 440 Orcas (supported 1% per year increase subject Burt Flanagan, Morro Bay businessperson Nancy Staten, Morro Bay businessperson Ray Kaltenbach, former motel owner Hazel Neithus, motel owner Mary Phillips, 2645 Ironwood Jerry Hempenius, Morro Bay businessperson Bob Ward, former motel owner Jane Von Keohe, citizen expenditure of tax)l to Council) MOTION: Councilmember Anderson moved that the Public Hearing be closed. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: AYES: Anderson, Lemons, Risley, Zeuschner, Shelton NOES: None ABSENT: None Councilmember Zeuschner commented on the excellent presentation by the audience, and agreed that the City would not want to place the businesspeople of Morro Bay at a competitive disadvantage and felt other alternatives for raising revenues were needed. Councilmember Zeuschner also asked Mr. Baxter what the time constraints were regarding placing this matter on the November 2nd ballot. Councilmember Risley felt that using the extra funds generated by a bed tax increase for capital improvement projects was a good idea and felt that the impact of an increase in the bed tax was perhaps being overstated, however he felt another suggestion to the proposed increased would be a County average figure, with the bed tax for Morro Bay being the average of SLO County. Councilmember Anderson agreed that business was down already this year, and felt that this increase could harm the economy of the City. Councilmember Lemons was opposed to the listing of proposed uses for the increase in bed tax monies and thoughtthat the list was too large for the small amount of money and the projects too costly. Mayor Shelton stated that there was a significant need for this increase, and thought that the water and sewer plant projects could be targeted to receive this extra money. MOTION: Councilmember Lemons moved that this bed tax increase proposal not be placed on the November 2nd ballot. Councilmember Anderson seconded the motion and it was carried by the following roll call vote: AYES: Lemons, Anderson, Risley, Zeuschner NOES: Shelton ABSENT: None MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 12, 02 PAGE TEN E Councilmember Lemons suggested that perhaps an advisory group of businesspeople and city staff or Council try to develop other alternatives to this source of revenue. A-6 FURTHER CONSIDERATION OF MASTER FEE SCHEDULE Paul Baxter stated that the revised fee schedule as recommended by Council at their last meetiing was being submitted for review. Mr. Baxter reviewed several areas where fees had been lowered as per Council guidance. Mr. Baxter recommended that a Public Hearing date be set, and that these fees be advertised for public information. Mayor Shelton opened the Public Hearing. There were no comments or questions from the public. MOTION: Councilmember Lemons moved that the Public Hearing be closed. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Lemons, Zeuschner, Anderson, Risley, Shelton NOES: None ABSENT: None MOTION: Councilmember Zeuschner moved that Council accept the Revised Fee Schedule report and authorize staff to publish the entire schedule and notice it for public hearing for July 26, 1982. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: AYES: Zeuschner, NOES: None ABSENT: None B. UNFINISHED BUSINESS B-1 REQUEST BY MARY PHILLI Lemons, Anderson, Risley, Shelton ON TO MANDATORY ( INANCE (Report Paul Baxter reviewed the report and recommendation from the Refuse Franchise Board concern the request by Mary Phillips for an exemption to the Mandatory Garbage Ordinance. The Board recommended that Council deny Mrs. Phillips' request for exemption. Mayor Shelton asked for comments from Mrs. Phillips. Mary Phillips stated that she had requested this exemption from the Mandatory Service because she had no need for refuse pick-up as she recycled or burned all her trash. Mrs. Phillips also stated to the Council that she refused to permit the Morro Bay Garbage Company from entering on her property, and she was incapable of placing her cans on the curb as required. She also felt that as a handicapped person she was being unduly taken advantage of. MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 12, 982 PAGE ELEVEN E Councilmember Zeuschner stated that in conversations with Mrs. Phillips she had expressed to him her "injury" by the Garbage Company. He urged Mrs. Phillips to take advantage of the Refuse Franchise Board in relaying any problems to Council. Councilmember Zeuschner also suggested that perhaps the entire Refuse Ordinance, contract, fee schedule, and type and quality of service should be reviewed by the Refuse Board. Ron Myers stated that this was scheduled for the Board's next agenda. Mayor Shelton explained that although the Council sympathized deeply with Mrs. Phillips, the system was mandatory, and that as a member of the general public, she was required to participate. Councilmember Risley agreed, and stated that even though he was in sympathy to Mrs. Phillips problems, he would have to support the recommendations of the Refuse Board. Councilmember Lemons asked if Mrs. Phillips could be granted a hardship exemption, to have her trash picked up in her yard at no extra cost. Mr. Baxter stated that Mrs. Phillips could apply to the Refuse Board for such a hardship exemption but had not done so as yet. Mary Phillips stated that the City Attorney had provided the Refuse Board with suitable language to provide an exemption, and she felt that this had been ignored. MOTION: Councilmember Zeuschner moved that Council receive the report and support the recommendation of the Refuse Franchise Board to deny an exemption to Mary Phillips. The motion was seconded by Councilmember Lemons and carried unanimously. (5-0) B-2 RESUMPTION OF PROCESSING FOR CASE NO. 16-81 AND RELATED EIR: SYLVESTER MORNING Mr. Baxter requested that Murrel Crump provide Council with the staff report. Mr. Crump briefly reviewed the history of this project, and explained that processing of this application is required to resume, after expiration of the time extension of 90 days. Mr. Crump stated that January 10, 1983 was the last practical date for fi.rial Council action on the application and EIR. Murrel also explained that the design of the project has changed since its original submission to the City, and the applicants have expressed a desire to present the new design and explain the changes to the City Council. Mr. Crump stated that no specific action is required of Council at this time. Mayor Shelton asked how substantial the changes were. Mr. Crump stated that their had not received a formal package but that the major changes were a reduction in density and opening up of a "view corridor". MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 12, 82 PAGE TWELVE • Mayor Shelton asked if the developer would be required to submit revised material and a revised EIR for staff consideration. Murrel Crump stated that this would have to be a staff consideration and decision as to whether to require an amended EIR and updated information. MOTION: Councilmember Zeuschner moved that Council receive the report from staff. The motion died for lack of a second. Mr. Baxter stated that the proposed presentation of changes to the plan could be brought to the August 23rd Council meeting, or perhaps a special meeting could be set for that purpose. Mr. Ray Gallo felt that many people had been misinformed about the project, and asked for the opportunity to go through the plans with Council and the public at an information session. Mayor Shelton felt this was allowing the developers an opportunity that small builders don't have - to receive Council input prior to submission of plans. Councilmember Zeuschner suggested that the information session be held at the Planning Commission level with Council in attendance. Councilmember Risley did not feel Council should become involved until the LCP is adopted because the LCP will contain guidelines which could effect the project. Councilmember Lemons noted that a decision may have to be made prior to adoption of the LCP because of legal time constraints on the project. Council took no action at this time. Items B-3, B-4, B-5, and B-6 were handled simultaneously, with one motion B-3 ORDINANCE AMENDING CHAPTERS 8.24, 10.52, 10.48, and 10.16 OF THE MORRO BAY MUNICIPAL CODE REGARDING VIOLATIONS AND PENALTIES 2nd readin B-4 ORDINANCE AMENDING SECTION 5103.2 OF ORDINANCE NO. 65 PURSUANT TO THE PROVIS OF CHAPTER 17.64 OF THE MORRO BAY MUNICIPAL CODE, CASE NO. CZ 01-82 2nd rea B-5 ORDINANCE AMENDING CERTAIN SECTIONS OF CHAPTER 10.48 OF THE MORRO BAY MUNICI CODE REGARDING ABANDONED VEHICLES 2nd reading B-6 AMENDMENT TO ORDINANCE NO. 185 REGARDING ANIMAL REGULATIONS (2nd reading) MOTION: Councilmember Risley moved that the above Ordinances be read by title and number only. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Risley, Zeuschner, Anderson, Lemons, Shelton NOES: None ABSENT: None MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 12, 02 • PAGE THIRTEEN Paul Baxter read the Ordinances by title and number only. Mary Phillips questioned the Animal Ordinance section regarding biting dogs. Mr. Baxter read Section 7.08.140 regarding "Biting Dogs". MOTION: Councilmember Zeuschner moved that the above mentioned Ordinances be adopted as their final reading. The motion was seconded by Councilmember Risley and carried by the following rcll call vote: AYES: Zeuschner, Risley, Anderson, Lemons, Shelton NOES: None ABSENT: None B-7 APPLICATION TO APPROPRIATE UNAPPROPRIATED WATER AT CABRILLO WELLS - VRM PROPERTY Mr. Baxter explained that several months ago the developers of the VRM property had offered to make available to the City, water from the Cabrillo Wells in exchange for the right to develop. The City's water attorney, Martin McDonough, feels there.. may be some questions as to the legality of this action and feels the best way to determine whether the City has this right is to submit an application to the State for their ruling. Councilmember Anderson asked if the 200 acre feet would be offered in exchange for developing. Mr. Baxter stated that was the verbal agreement but no written agreement has been formulated. Councilmember Risley stated that according to the letter from Mr. McDonough, the 200 acre feet is not accurate, that it is more like 132 acre feet. There was farther Council discussion regarding the application. Councilmember Zeuschner felt that a firm agreement should be reached before any decision is made regarding this application. MOTION: Councilmember Zeuschner moved that staff prepare an agreement in cooperation with the VRM Developers and in conjunction with the City's water attorney, Martin McDonough, prior to any application to appropriate water. The motion was seconded by Councilmember Risley and carried unanimously (5-0). B-8 REQUEST BY JOSEPH ALLDREDGE FOR COUNCIL CONSIDERATION OF NEW HARBOR LEASE SITE Mr. Baxter recommended that this matter be removed from the agenda pending additional specific information. Council concurred. C. NEW BUSINESS C-1 REVIEW OF CALIFORNIA SAFE DRINKING WATER LOAN OFFER MORRO BAY CITY COUNCIL . REGULAR MEETING - JULY 12, q82 PAGE FOURTEEN Mr. Baxter requested that this item be postponed until July 26th, pending completion of the fee structure. MOTION: Councilmember Zeuschner moved that this matter be continued until July 26th. The motion was seconded by Councilmember Anderson and carried unanimously. (5-0) C-2 DESIGNATION OF MAYOR PRO-TEM ON VARIOUS CUMMITTEES. Paul Baxter stated that Council had several commitee appointments to make, as well as designation of Mayor Pro-Tem. MOTION: Councilmember Risley moved that the office of Mayor Pro-Tem be on a rotating basis of 1 year terms, to coincide with the fiscal year. The motion was seconded by Councilmember Zeuschner and carried unanimously. (5-0) Councilmember Zeuschner nominated Rodger Anderson for Mayor Pro-Tem. MOTION: Councilmember Zeuschner moved that Council appoint Rodger Anderson as Mayor Pro-Tempore for fiscal year 1982-83. The motion was seconded by Councilmember Lemons and carried unanimously. (5-0) Mayor Shelton asked that the Council inform him of their committee preferences and he would designate committee representatives. The Mayor also reminded Council that a representative to the EOC Board was needed and asked for those interested to let him know. C-3 CONSIDERATION OF ACQUISITION OF CHAPTER 8 SALE PROPERTIES. IN THE CITY OF MORRO BAY "— Mr. Baxter stated that the City has an opportunity to acquire two parcels that would benefit the City from Chapter 8 Sales. Mr. Baxter informed Council that one of the parcels was a potential well site and the second had possible uses by the Fire Department, and that both could be acquired for $150.00 each. MOTION: Councilmember Risley moved that Council authorize the expenditure of $300.00 to acquire Assessor Parcel Numbers 68-262-64, and 68-283-09, as described by the Tax Assessor. The motion was seconded by Councilmember Lemons and carried by the following roll call vote: AYES: Risley, Lemons, Anderson, Zeuschner, Shelton NOES: None ABSENT: None MORRO BAY CITY COUNCIL • REGULAR MEETING - JULY 12, 1982 PAGE FIFTEEN C-4 DESIGNATION OF CITY REPRESENTATIVE AS LIAISON TO STATE FOR PARK DEVELOPMENT This matter was before Council at Councilmember Zeuschner's request. Councilmember Zeuschner stated that it was his feeling that the City should designate a represe ative to act as liaison with State agencies regarding park development within the City. Paul Baxter stated that it would be his recommendation that Council not designate a particular staff member as liaison, as depending upon the project, different City staff hembees might be more appropriate. Councilmember Risley felt that the Council should be tied in to any matters concerning state park development. Councilmember Zeuschner felt that the City Administratdr or his representative should be designated as liaison. Council took no action on this item. C-5 DESIGNATION OF CITY REPRESENTATIVE TO COMMUNITY ROUNDTABLE Councilmember Zeuschner requested that the Council designate a City representative to the Community Roundtable to formalize the relationship with the City. Councilmember Zeuschner felt that a staff member should act as the liaison. MOTION: Councilmember Zeuschner moved that the Council designate Mary Sanders as liaison for the Community Roundtable. The motion was seconded by Councilmember Anderson and passed unanimously. (5-0) C-6 REQUEST FROM MORRO DUNES FOR CONSTRUCTION OF FACILITIES ON LEASESITE Mr. Baxter stated that an application had been received from Morro Dunes Travel Trailer Park which operates on a City leasesite, to construct a garage and add a store and office building. Mr. Baxter informed Council that the Planning Commission had reviewed the application and recommends approval as these improve- ments would enable them to operate their leasesite in a more efficient manner. Mayor Shelton asked Mr. Jack Curry, of Morro Dunes, if there had been any opposition to these construction projects, as once before this had been a problem. Mr. Curry stated that to his knowledge there had been no objections. Mr. Curry also informed Council that there was currently a store on the leasesite and it will just be expanded upon to allow for room. Councilmember Risley asked what type of lease this was and when it would expire. Mr. Baxter stated that he believed it was a regular City lease but did not have the information readily available. Mr. Curry confirmed that it was a regular City 40 year lease. Councilmember Zeuschner asked if Council had any means to encourage the hiring of local contractors. Mr. Baxter stated that they did not have any means available. MORRO BAY CITY COUNCIL • REGULAR MEETING - JULY 12, 82 PAGE SIXTEEN MOTION: Councilmember Lemons moved that Council approve the request from Morro Dunes Travel Trailer Park for construction of facilities on the leasesite as recommended by the Planning Commission. The motion was seconded by Councilmember Zeuschner and carried by the following roll call vote: AYES: Lemons, Zeuschner, Anderson, Risley, Shelton NOES: None ABSENT: None C-7 SETTING OF PUBLIC HEARING. DATE FOR PROPERTY TAX LIENS FOR DELINQUENT UTILITY BILLS Mr. Baxter asked Mr. Sibbach to provide information regarding this item. Mr. Sibbach stated that according to the City Council's decision last December making delinquent utility bills subject to tax liens under the Ordinance passed for that purpose, he would now like to advertise a Public Hearing for those property owners with delinquent bills to make a protest or present their case prior to the tax lien being placed. Mr. Sibbach stated that of the approximately 60 delinquent bills, some are water, others garbage, and some both. MOTION: Councilmember Lemons moved that Council set a Public Hearing date of July 26th to allow protests regarding the delinquent utility bills and possible tax liens. The motion was seconded by Councilmember Anderson and carried by the following roll call vote: AYES: Lemons, Anderson, Risley, Zeuschner, Shelton NOES: None ABSENT: None C-8 CORRESPONDENCE FROM CITIZENS ACTION LEAGUE REQUESTING ADVISORY MEASURES TO BE Mr. Baxter reported that correspondence had been recieved from the Citizens Action League July 7 requesting that Council place 5 advisory measures on the November 2, 1982, general election ballot. Peter Diffley stated that the Elections Code provides very little information regarding advisory measures however he understood according to the County Clerks office, that time was vital. Paul Baxter informed Council that the County Clerks legal deadline for placing items on the ballot is July 23rd, however, the Council would have to call a special election, and then consolidate with the County and this would mean a deadline of July loth to place items on the Board of Supervisors agenda. Mr. Diffley informed Council that the CAL Board had felt these measures should be brought to the vote of the people. MOTION Councilmember Risley moved that Council place the five (5) advisory measures as suggested by the Citizens Action League on the November 2nd ballot. The motion was seconded by Councilmember Zeuschner and defeated by the following roll call vote: AYES: Risley, Zeuschner NOES: Anderson, Lemons, Shelton ABSENT: None MORRO BAY CITY COUNCIL • 0 REGULAR MEETING - JULY 12, 1982 PAGE SEVENTEEN Councilmember Zeuschner felt that the advisory measures should be placed on the ballot however not in this form, and he suggested that the measures be reworded to more adequately reflect their purpose. Mr. Baxter stated that if Council considers these measures at all, a Public Hearing should be set to allow public comment. Mr. Ernie Miller agreed that a public hearing must be held for public.comment. There was continued Council discussion it was decided that there was just not public hearings and allow for adequate D. CONSENT CALENDAR regarding these advisory measures and sufficient time to hold the necessary public input. Paul Baxter reviewed the items on the Consent Calendar as follows: D-1 CITY COUNCIL MINUTES OF REGULAR MEETING OF JUNE 28, 1982 Mr. Baxter recommended approval of the above minutes as submitted. D-2 RIGHT-OF-WAY CERTIFICATION FOR FAU PROJECT - HWY 41 TO VICINITY OF RADCLIFFE Staff recommended that Council adopt the Resolution approving the Right -of -Way Certi- fication for the proposed FAU project on Main Street between Willow Camp Creek and State Hwy. 41. D-3 REQUEST FOR CITY COUNCIL TO DECLARE (2) ARGOSY TRANSIT BUSES SURPLUS Staff recommends that Council adopt the Resolution declaring the buses surplus property and authorizing staff to proceed with the sale of the vehicles in accordance with City and UMTA procedures. D-4 APPROVAL OF TRACT MAP 1012 Staff recommends approval of Tract Map 1012 (condominium subdivision of exisiting professional offices) as submitted. D-5 RESOLUTION SUPPORTING CONGRESSMAN PANETTA'S LEGISLATION (H.R. 6365) REGARDING Staff recommends adoption of the Resolution in support of Congressman Panetta's legislation regarding the offshore oil drilling and leasing moratorium. D-6 T-PIER RESOLUTION REGARDING RULES AND REGULATIi LOCATED ON THE SOUTH CITY T-PIER S FOR USE OF PUBLI Staff recommended that Council adopt the Resolution confirming the rules, regulations and fees as recommended by the Harbor Advisory Board and Council, for the Public Hoist on the South City T-Pier. MORRO BAY CITY COUNCIL • 9 REGULAR MEETING - JULY 12, 1982 PAGE EIGHTEEN Councilmember Lemons asked for clarification regarding D-4, Tract Map 1012. Mr. Crump stated that these were existing office buildings being sold from one owner to multiple owners. Councilmember Risleyiasked if this was covered under a condominium conversion ordinance. Mr. Crump stated that it was merely the change from one owner to individual owners. MOTION: Councilmember Lemons moved that the Consent Calendar be approved as submitted. The motion was seconded by Councilmember Anderson and carried by the following roll call vote: AYES: Lemons, Anderson, Risley, Zeuschner, Shelton NOES: None ABSENT: None Mayor Shelton stated he would be out-of-town from July 14 through the 20th and asked Council to be so excused. Councilmember Anderson indicated he would be out of town. July. 21 through July 24 and also asked to be excused. Mr. LeSage requested a brief Closed Session at 1:05 a.m. Council reconvened in open session at 1:18 a.m. There was consensus that the tentative meeting set for July 19 with staff from the Coastal Commission would have to be rescheduled and asked staff to fine, a new date. MOTION: Mayor Shelton moved that the meeting be adjourned. The motion was seconded by Councilmember Lemons and carried unanimously. The meeting was adjourned at 1:20 a.m. RESPECTFULLY SUBMITTED, PEGG B HANAN DEPUTY CITY CLERK 46 MO RRO BAY CITY COUNCIL ADJOURNED MEETING/BUDGET WORKSHOP JULY 10, 1982 RECREATION HALL - 1:00 P.M. #NDAN0. 12_ Date % 2& Action Mayor Shelton called the meeting to order at 1:00 p.m. and the following persons were present: V1e PRESENT: Eugene R. Shelton Rodger J. Anderson John Lemons Bruce Risley Raymond Zeuschner STAFF: Paul Baxter John Bressan Sgt. G. Carpenter Murrel Crump Sgt:..D. Howell Gary Napper Mary Sanders Gere Sibbach Bernie Zerr Peggy Buchanan Mayor Councilmember Councilmember Councilmember Councilmember City Administrator Public Works Director Police Department Director of Community Development Police Department Administrative Assistant Recreation Director Finance Director Fire Chief Deputy City Clerk Paul Baxter stated that this meeting was for the purpose of examining the proposed Fiscal Year 1982-83 Budget, and that certain information had been prepared for Council's review concerning expected revenues. Mr. Baxter asked that Council provide staff first with direction concerning water and sewer rates, so that anv necessary revisions to the proposed budget can be made with these rates in mind. Mr. Baxter then reviewed the 1982-33 Rudget "Balance Sheet" prepared by the Finance Department and its listing of revenue losses, rate decreases, and other increased costs, as well as planning fee increases and the water reserve balance. At this time Mr. Baxter asked Council for further direction regarding the water and sewer fees, and stated that should Council decide the fee levels will remain the same, staff will need additional time to review programs as it could be possible that lay-offs due to lack of funds would be necessary. Mayor Shelton asked for comments from the Council regarding these fees. Councilmember Risley stated that he would like more information from staff regarding the large increase in expenditures and encumbrances in the llater Fund from FY 80-81 to FY 81-82. Gere Sibbach explained that there were several large expenditures that year that accounted for this increase, including the purchase of a water tank for $150,000, MORRO BAY CITY COUNCIL ADJOURNED MTG./BUDGET HEARI • JULY 10, 1982 PAGE TWO as well as a water management study by the Department of Water Resources for $88,000, and overhead allocations of nearly $80,000. Councilmember Anderson remarked that energy cost increases were partially responsible also. John Bressan cited increased costs as affecting the budget also, and cited an example of increased pipe costs, from $95,000 in 1981-82 to over $115,000 currently. Mr. Bressan stated that energy costs had risen just over $20,000 in the past year as well. Councilmember Risley asked how the water rates would affect the proposed $1.5 million dollar loan for water pipe relacement? Mr. Bressan stated that the loan is predicated on the water funds ability to pay the yearly payments of approximately $150,00 and if rates are not increased, he did not think these payments would be possible. Councilmember Anderson noted that since General Fund monies could not be used in any manner to assist the water fund that rates would have to be increased to make the annual loan payments. Mayor Shelton asked for an explanation of water revenues currently. Gere Sibbach stated that current revenues are approximately $500,000. Mr. Bressan explained that operation and maintenance costs as well as the loan repayment must all come from this same fund of revenues generated by user fees. Mr. Sibbach stated that the entire water fund budget would have to be reexamined for a better idea of the exact costs of maintenance and operation if the loan were to come through. Council discussed the loan further and the costs involved for the City with the loan or with the City continuing its present course of action regarding water line replacement. Mr. Bressan stressed that a major part of the loan was not for water line replacement but for a new tank and booster pump, which the City is in desperate need of. Mayor Shelton questioned the City's current water line replacement program and how many years it would take to complete it without the loan. He stated his concern about accepting the loan and having to pay it; over such an extended period when the same results could be accomplished and paid for by continuing with the City present plan. Mr. Bressan stated that the City's ability to replace the water lines as in the past may not be a viable alternative if funding is not increased. Mr. Bressan also noted the need for the water tank and pump which the loan will provide. There was then a discussion on increased personnel within the City, and Mayor Shelton stated his concern regaring this increase over the 79-80 budget. MORRO BAY CITY COUNCIL • ADJOURNED MTG./BUDGET WORK JULY 10, 1982 PAGE THREE Mr. Sibbach explained that a difference accounting practice had been used, and that a great deal of the increase in personnel costs was the addition of fringe benefits to the individual department's budget. He cited the Police Department as an example where fringe benefits add up to almost 40%. Mayor Shelton thanked Mr. Sibbach for the explanation. Mayor Shelton asked Mr. Bressan if there would be any possibility of continuing in-house water line replacement with the present staff, as well as accepting the loan and paying the yearly loan repayment cost. Mr. Bressan stated that given sufficient funds this would be an alternative to completing the program quickly. Mr. Sibbach explained that the water line replacement program could continue for the next year if the rates were frozen, however after that year, an increase of nearly double the proposed increase for this year would be needed to continue the program. Howard Gaines commented that as a bond issue, this should to to the vote of the people. Mir. Baxter explained that this was a loan, not a bond issue and as such did not need a vote. Mr. Bressan added that the Safe Drinking Water Bond Issue of 1976 had been submitted to a vote of the people statewide. Councilmember Zeuschner outline his concepts of the advantages vs. the disadvantages of accepting the loan. Council discussed these differenct advantages and disadvantages. Mrs. Herminia Ward added that a significant advantage was the health and safety of the community, as the deteriorating water tanks and water lines are a threat to the health of the community. Mr. Bressan explained that with costs increases so rapidly (pipe costs up 15% a year) and with the interest rate for the loan at a relatively low 8%, it would be cost effective in the long run to accept the loan and have the work done now, at current costs. Howard Gaines suggested that the City instigate a bond issue to cover the water -line replacement project, as well as sewer repairs. Councilmember Risley supported the idea of a bond issue, as did Mayor Shelton. Mayor Shelton added however, that the bond issue idea would have to be carefully investigated. Mr. Baxter stated that the ouestion of a bond issue could probably not be resolved for at least a year, as bond attorneys would have to be consulted. Mr. Sibbach also added that currently, bonds for cities the size of Morro Bay are going at 14-15% interest rates, significantly higher than the loan offer. Mayor Shelton stated that to synthesize the discussion, the water rates had been frozen, so evidently there would not be sufficient funds to repay the loan. MORRO BAY CITY COUNCIL ADJOURNED MTG./BUDGET WORKS* • JULY 10, 1982 PAGE FOUR Councilmenber Lemons noted that it had been his understanding that the rates were to have been frozen only pending further discussion and information and were to be reevaluated. Councilmembers Anderson and Zeuschner stated that this was their understanding also. Councilmember Anderson felt that the majority of cities goal is to have a self- supporino water system, and that with the rate increase, Morro Bay would only be approaching this point. Councilmember Anderson felt the rates should be increased, and then evaluated each year until they reach the point where users are paying for the actual cost of delivery of the water. Councilmember Lemons felt that Council should take all steps necessary to secure the loan, and noted that the City could always bond for the remaining portion if necessary. He.also informed Council that if the rates remain frozen, and the water line replacement program is halted or slowed, the California Coastal Commission would have no choice but to reinstate the moratorium, as this would not be in compliance with our agreement with them, and Councilmember Lemons felt that this would be a great injustice to those citizens who own single family lots and have not been able to build on these lot for several years. Councilmember Lemons also stated that if the rates remain frozen, it would mean that large water users would be subsidized by the small users, and that this would not be ecual treatment. Mr. Lemons felt that users should pay for the actual cost of delivery and no more or no less. Councilmember Risley asked if staff would consider a lifeline program, whereby the small users would be able to get the water at a lifeline cost, and those who used large amounts would pay more. Councilmember Lerions had no objection to this idea, if it were legal for the City to implement. Councilmember Zeuschner felt that the Citv has an interest in supplying water to the citizens, for beautification and safety reasons, and also felt that if the rates did not quite meet the actual cost, perhaps this could be absorbed by the City in consideration of these interests. Councilmember Anderson felt the basic question was whether the City is going to continue to a deficit spending pattern in the water fund, or whether we will eventually have a self-supporting water system. Howard Gaines felt the City should "amatorize" the cost of repairs, new tanks, etc., for the expected life of the same. There was additional discussion regarding water rates. MOTION: Mayor Shelton moved that the water rates be frozen for 1982-83 at the present rate of $1.00 per cubic foot. Motion was seconded by Councilmember Risley and defeated by the 2-3 vote as follows: AYES: Shelton, Risley NOES: Anderson, Lemons, Zeuschner ABSENT: None MORRO BAY CITY COUNCIL • ADJOURNED MTG./BUDGET WORK* JULY 10, 1981 PAGE FIVE There was additional discussion of the proposed rates, and the amount of budget shortfall should those rates not be effected. MOTION: Councilmember Lemons moved that the proposed Fiscal Year 1982-83 budget be considered using the increased rates of $1.25 per 100 cubic feet, and that staff evaluate the possibility of instigating a "lifeline" program for water rates. The motion was seconded by Councilmember Anderson, and carried by the following roll call vote: AYES: Lemons, Anderson, Zeuschner NOES: Shelton, Risley ABSENT: None Councilmember Risley spoke against the motion and felt it was more appropriate to have a detailed study and take into account the capital expenditures necessary to improve the water system. Councilmember Risley did not feel the citizens should be made to pay for such improvments. Mr. Sibbach informed Council that if the rate increase were approved, it would allow staff additional time to study the proposed "lifeline" system. Council then turned to the discussion of proposed sewer rates. Paul Baxter explained that current sewer rates were $4.00 (residential) and were proposed to increase to $6.00. Mr. Baxter also noted, that even at this increased rate, the General Fund will still have to subsidize the sewer fund in the amount of $91,000. Councilmember Anderson asked if it wasn't a condition of the Clean Water Grant Act for the operation and maintenance of the treatment plant to be covered under the fee structure. Mr. Bressan stated that at completion of the new treatment plant, user fees will have to cover the complete cost of operation and maintenance of the plant (which is predicted to be approximately $9.00). Mr. Bressan also explained that the plant has been operating in a deficit for years, and that due to a delay in the grant, extra costs have been incurred. Councilmember Risley asked where the rate structure was arrived at. Mr. Bressan stated that it was the rate structure recommended by Brown and Caldwell. Mr. Peter Diffley suggested that the rate schedule as recommended by Carollo Engineers for the Federal Government be used instead. Mr. Bressan stated that the Carollo rate structure would require a great deal of study and he doubted if it would be cost effective as our sewage makeup is primarily residential and this study was inclined more towards industry. Howard Gaines felt the fee should be based on use, and suggested a per toilet fee. MORRO BAY CITY COUNCIL • ADJOURNED MTG./BUDGET WORKSHOP JULY 10, 1982 PAGE SIX There was additional discussion regarding rates and the method of establishing a rate structure. Mr. Sibbach explained the difference between residential and commercial rates, and who qualifies for the commercial rate. MOTION: Councilmember Lemons moved that the rates for sewer be increased to $6.00 for FY 1982-83 for purposes of considering the FY 1982-83 proposed budget, and that staff investigate alternate rate schedules. The motion was seconded by Councilman Anderson and carried by the following roll call vote: AYES: Lemons, Anderson, Zeuschner NOES: Shelton, Risley ABSENT: None The meeting was recessed at 3:35 p.m. and reconvened at 3:45 p.m. Mayor Shelton introduced Betty Hill of HOTLINE, to give a brief presentation on the program. Betty Hill described briefly HOTLINE's service to the County and to the City of Morro Bay, and stated that they had been in service for over 12 years. She described the types of services they provide and distributed a sheet of "call statistics". Ms. Hill requested that Council fund HOTLINE in the amount of $500. Mr. Baxter briefly reviewed the proposed 1982-83 budget, and suggested that Council examine the document by Department, and pose any questions to himself or staff. Administration - Councilmember Risley asked if some savings could not be realized under the City Council portion of the department, by not providing medical insurance for the Council, as it is not always needed. Councilmember Zeuschner agreed and stated that he would not be using the City's medical benefits and account 01-4111-161 should be reduced by $1,633. Mr. Baxter stated that Council might want to consider increasing the Transportation and Travel account, to allow more participation in League of California Cities functions and suggested an increase of $750.00. Councilmember Zeuschner suggested that any savings from the medical benefits he would not be using be applied to this account, ($750.00) Council concurred on this point. Mr. Baxter explained that additional information concerning legal fees had been included with today's agenda, and that this breakdown showed the City had used several attorneys other than Mr. Leaage through the year. MORRO BAY CITY COUNCIL 0 • ADJOURNED MTG./BUDGET WORKSHOP JULY 10, 1982 PAGE SEVEN Council then discussed possibilities such as an in-house attorney and other alternatives, to avoid high legal costs. Howard Gaines had a question regarding legal fees, and objected to these fees not all being under one area. Mr. Sibbach stated that the City had tried where possible to place legal fees under the Department incurring the costs, to more accurately show the budget of each department. Mr. Sibbach also explained that in preparing the budget, last years experiences were taken into account, however, the result was stilllbasically an estimate. Personnel - Council reviewed the Personnel Budget. Councilmember Zeuschner inquired as to the fees for "proctering". Mr. Napper explained that for certain recruitments, written testing was required and this fund was to provide for a procter to administer and grade the tests (usually taken on a Saturday). Transportation -Councilmember Zeuschner asked for an explanation of professional services. Mr. Baxter explained that this was money for engaging legal services for litigation. Harbor - Councilmember Zeuschner inquired about professional services for this department. Mr. Baxter stated that they were to administer the Harbor leases, and for property management services. Mayor Shelton asked if this service couldn't be incorporated into the City Attorneys duties. Mr. Baxter stated that although this was a possibility with lease litigations, property management was not really an appropriate legal field. Finance - Councilmember Lemons asked for a status report on the Xerox computer system. Mr. Sibbach stated that the equipment has started to arrive and meetings are scheduled for the next several weeks. Gere noted that hopefully, it would be implemented in the first week ow so df''August. Recreation - Mary Sanders gave a brief review of the Department and stated that the major increase was due to the addition of a custodial service contract for the 8 city buildings. Councilmember Zeuschner inquired about the .mi.ni=computer. - unit the department had requested, which was not recommended, and commented that perhaps a terminal of the Xerox could be installed in the Recreation Department. Mr. Baxter agreed that this would be an indea for the future. There was discussion regarding revenues, and Mary nave a short explanation of the major revenue generators, and stated that the Department was 68% self-sufficient, and generated sufficient revenues to cover all program costs, and a portion of the administrative costs. Howard Gaines objected to any subsidization of program costs, and felt that non- residents should not be allowed to participate or should pay higher fees. MORRO BAY CITY COUNCIL • ADJOURNED MTG./BUDGET WORKS UP JULY 10, 1982 PAGE EIGHT Mr. Gaines also commented that the City should work with the school district. Mr. Baxter noted that while the City has been attempting to establish a Joint Powers Agreement with the School District, so far they have been uncooperative. Herminia Ward agreed and stated that she had worked with Mary Sanders on this attempt and some progress had been made, such as access to the high school. Cormiunity Development - Councilmember Anderson asked Mr. Crump to describe the proposed staff increases. Mr. Crump stated that two positions were proposed, an Associate Planner and a 1-year, temporary position. The positions would be to assist with the daily permit and inspection duties, Phase III of the LCP and General Plan updating. Both positionswould be subsidized by $40,000/year grant for Phase III LCP work. Councilmember Risley questioned the proposed increased fees. Mr. Baxter stated that the fees used in the proposed budget were current fees. Howard Gaines complained about the building inspection service in relation to problems in his neighborhood (with trash). Councilmember Lemons asked about the progress of the Housing Element. Mr. Crump stated that it had been reviewed by the Planning Coriission and was transmitted to the Department of Housing and Community Development for their review (90 days) and would be brought before Council after that. Police - Mr. Baxter stated that Chief Olson was unable to attend the meeting, however Sgt. Carpenter and Silt. D.Howell were present to answer questions regarding the proposed budget. Sgt. Carpenter stated that there had been an overall 3% increase in the budget (not considering non -departmental costs added). Councilmember Lemons inquired as to the addition of Officer Joe Reagan, Youth Service Task Force. Mr. Baxter stated that the funding for this position had expired and the City would now be paying 100% of the salary for this position. Councilmember Zeuschner questioned the reclassification of a Clerk Typist III to Office Coordinator. Gary Napper explained the reclassification process to Council and stated that because there had been a substantial amount of evidence that the person in this position was performing administrative type work above the Clerk Typist III classification, he was recommending this reclassification. There was additional discussion regarding this reclassification as well as the addition of a Lieutenant to the Department. Councilmember Zeuschner if there should be remodelinn done to the existing building when the possibility exists for building a new facility. Mr. Baxter explained that MORRO BAY CITY COUNCIL ADJOURNED MTG./BUDGET WORKS JULY 10, 1982 It PAGE NINE only the most needed repairs were being recommended, those that affect the health of safety of employees and the public. Fire Chief Zerr stated that his proposed budget was an effort to maintain the current level of service, and that the major additions were a new "mid -size" fire truck, and the EMT II program. Chief Zerr explained that the need for the engine was to replace a 20-year old truck that is experiencing a significant amount of "down time". Mayor Shelton asked if the City currently has an equipment replacement fund. Mr. Sibbach stated that this fund was last used in 78-79 however, bookkeeping was never set up for this fund, and it was stopped at some point. Mayor Shelton urged the City to set up such a fund so they could be prepared financially to replace vehicles when necessary. Mr. Baxter noted that the City had set up a 5-year Capital Improvements Eudget, and will attempt to take information and provide a more detailed plan for the next year's budget. Chief Zerr also mentioned that the pilot program for Fire Station No. 2 (having an employee remain at the station and respond to calls as well as maintain station in exchange for free rent) had worked well and the Department hopes to continue the program on a permanent basis. Chief Zerr also stated that at the time cf preparation of the budget, the cost for training of the EMT II's had to be estimated and since that time, the tuition cost has been determined to be $500.00 rather than the $300.00 budgeted. Chief Zerr requested that this amount be increased by $200.00. Council concurred on this increase. Public Works - Council reviewed the Public Works budget. (Councilmember Anderson left during this discussion) Mayor Shelton asked how much water line replacement was planned during 1982-83. John Bressan stated that approximately 3 miles should be finished. Mayor Shelton also asked the immediacy of realigning Quintana at Main Street intersection. Mr. Bressan stated that there was a great deal of safety and liability hazard at that intersection, and noted that he felt it was the worst intersection in the City. There was a discussion on the number of accidents occuring at that particular spot, and the Police Department stated they (lid not feel it was a high number, although the potential was there. Mayor Shelton suggested that perhaps this money could be put to better in decreasing the amount of deficit for the sewer waiver. There was agreement by Council to delete the Quintana project and these funds be used for the Wastewater Plant Waiver annlication. MORRO BAY CITY COUNCIL ADJOURNED MTG./BUDGET WORKSH .? JULY 10, 1982 It PAGE TEN Councilmember Lemons inquired as to the Dial -A -Ride monies and asked if the City would be receiving any SB325 funds. Mr. Sibbach stated that the City would receive SB325 funds, however, the General Fund was having to contribute $42,700 this year to meet costs. Councilmember Lemons felt that something should be done in the next year to reduce these costs, and suggested converting to a mixed fleet of buses and cars, for low ridership periods. Councilmember Risley felt that the buses and the handicapped lifts were vital to the senior citizens of the community and as such should be continued. Councilmember Lemons suggested that staff study other alternatives to alleviate some of the expenses of the Dial -A -Ride system. Mr. Sibbach stated that there is a required audit coming up under the Local Transpor- tation -Act and perhaps the study should be held off until the audit is completed. Councilmember Risley asked what provisions had been made in the budget for water management. Mr. Bressan stated that one budgeted item of $3,000 for construction of a re -charge basin in the Chorro and Morro basins, as well as the 2nd and 3rd year program with the Department of Water Resources to provide for a non-structural recharge system. Mayor Shelton asked about the program to convert a public restroom to salt -water usage. Mr. Bressan explained that this is more or less a pilot program, and would be considered for new restrooms if successful. Non -Departmental - Mr. Sibbach briefly explained several items budgeted under this category as items that cannot be placed within just one department, such as money to outside agencies. Mayor Shelton asked about the radio maintenance contract. Mr. Sibbach explained that due to increased maintenance calls, a contract had been entered into in the hopes that the City would realize a savings over the next year. Mayor Shelton asked that all items on page 350 (monies to other agencies) be considered in this proposed budget. There was brief discussion regarding future meeting dates, and Mr. Baxter informed Council that he would update Council as to a meeting date at the last meeting of July. MOTION: Councilmember Riley moved that the meeting be adjourned until the regular .meeting of July 12, 1982. The motion was seconded by Councilmember Lemons and carried unanimously.(4=0-I) The meeting was adjourned at 6:08 p.m. RE,$PUTFULLY� Stl$h'�ITTED,��`l� PEG U HANAN{ C DEPUTY CITY CLERK +� ' c 1982-83 BUDGET Additional Funding Requests for Consideration PURPOSE AMOUNT SLO County Youth Symphony $ 200 SLO County Symphony 400 Hospice 250 Central Coast Children's Theatre ? Family Services Center 500 People's Self -Help Housing 4,500 Telephone Maintenance Contract 2,400 Refuse Pickup for New Trash Receptacles 780 Emergency Medical Services Share 3,000 EMT II Additional Training 200 TOTAL $12,230 N (n N N p O N Z v m (D Z O N V m( D C+ 'S X 'S CF Cf (D Z X Z O 'O - M 7' -SO 'v J O (7 LNt (D T W —1 (D < tQ (D T CY W (D •S 3 C O -S • 'S 7 C =<< i 0 C. 3 CF 0 W 6 7 -i rD c< 9 d w ro 9 . d O 'i 0 1+ • • Cr 00 z c OC-)z c d � N (D (D 'S -at S (D i z < m -S -S 0 < (D O (A r7 (D N O d Z (D N 'O O fli S O tQ t0 7 Ol C Sp � j 0 01 o rD 0 N e w (D l0 a htQ N m N m CO (D .. 7 < (D .. 7 N N fD n (D < c (D F3 < C A (D O tT (D CD Q' (D < c v a c a (D (D t+ (D J N 'S 0 N n C J. (D (D CD 0 N N w Cf )>� x:: m t0 N V co C CDfD a m Imo_ I o cn in m m to m rn J+ ( -s m T W 001 W V colO W CD N -J ¢oT m N C) N CA i N m N W N C j CCOOOCOTTTTjjj���� CDU'1 A W N 01 OC] V t0 T A NOW l0 N 0,00 d W T IIO IF{NN C .-O w CD C) m w o0o w rD cn o 0 0 o cn m OGII o o cr oD 0 d w o00o w v oo V N m CD M 'O T (D ;0 s m A ON N .� N j o wrn o O 00 to r . m IO Ilo IOOO N CDIOOOO C:) (D N d t0 W t0 W cn W A co Ol -� V CD S O t0 W l O CT A N N ?CD Im ilco O N lol000 cco o oo t"' nw f � W A W Vl V W t0 O O 9+ l0 Ol OJ Ol O N A t0 N N C' co CD N V D CD 0 0 V CD Ul 0 [n co O ID O O coW O O W T 0 0 (D00 Ol 00 w (D N fD •vv • oD N v T D • Jo v T D 'O OO CD -o T .� I O -a 1 O V J 1 O J co t0 T ko to OJ (a T co tO 0 tO W T O co N T O OD W T O (b !n r-a a D a 'O N a 'O J a 'O O O C) d'O S co co S co T T O a W O .'D a N O ;aa C+ C (D O T (D (D j T j T CD C+M n —• a C+ G w v C+ CD < W C+ < O w a CD M (D O C T M (D O M (D C 3 j a 3 3 n o a 3 3 C a 3 3 n J o Vi 3 C+ -• fD (D O (D J fD CD a O N (-M CD N CC + � ^ C+ W w 0 -11 C+ .. i-. J .. M t0 CD 3 CA)n v W v W v N r N v v v fD OtO IT W T a o, a n C+ 3 cam. SM C+a O T a C+ N N O O t0 O_ C a fD co J LD CD J N A 10 W O n w O A fT A O V N J J S O C ll�o ILn . T n (D (D C -00 C+ O V O V t0 O t0 V O v (D J N W CD,W !b CDQO V O V (D . (D J I O 40i �• M A a O W ID n O V 3 J O N J O < O fD a 3 V C+ J J W N tT V Ol m W t0 J c (D A CD Ito I . to I I .. .. O C T t0 co W O1 J V O J J j a n CD to 0 0 0 0 0 (D - O7 O W "'� O W O w w O C 3 tC T fT Cr fD J A O T 1 J -� W J '� N N m 'O 0 G O O V N O _ V O V W (D N n a fD N C fT (P N to co V1 W T T IIN I J a tJl - O W A fT CD 01 a 1n a 3 j N CL.> O N _ A O A O J 3 d 7 A O A Ln O Ln N O N O Qo d t0 +A 3 O -- •• O M N 01 f) •O to -+ V A to fT J V O¢ o N T O T OD N J W t0 W O tT T M (DO O to A A co C> V a T It' O c... 11,104 IV .. .. IO IV . �. fD C+ C+ CD CDCD tT cnO (DOM C) O CD CDto O tJl to VI O N T C+ 3O Cf -� OD co O co 01 w tO to a T In T tG (D T N ID 1 Q (D W C N N N N J N 2 < W O W j co VI V a (D to Vl t)'1 coW t0 V W O � 1 II IIN IO IA T T A n O O N O A w C+ (D a CD OCD J 00moJoo to ao (D v T N W to W O W IN O A C+ k o LO J v O o A T C CD (D a 3 rt r* (D (p J W til A v V tT1 J V 3 J tO 0 O o co A N C+ 1n t0 O pl V CDV OD N 'p a V CD V Ul t0 A W (D IfD J OD CD co CD O CD O co O W a C1 CD ^ N O ^ A O -P. T 3 tG C+ fD N N N n-� T 'O T O < N _ A N W N W W of CD A N J m (D V N CD V1 O CDV V O 3 m A N N O N CD O O 1+ Vhl J V CO V1 N V tT O m • J O N W O W (T CT O t0 O W O W O W w MORRO BAY CITY COUNCIL ADJOURNED MEETING / BUDGET WORKSHOP JULY 10, 1982, 1:00 P.M. MORRO BAY RECREATION HALL CALL TO ORDER ITEMS FOR CONSIDERATION: 1) Fiscal Year 1982-83 Proposed Budget ADJOURNMENT TO REGULAR MEETING OF JULY 12th. 1982-83 BUDGET "BALANCE SHEET" DEBITS CREDITS Net additional revenue loss from state & other revenue estimations $ 35,000 $30,000 Planning Fee Increases Water Rate Freeze 110,000 Sewer Rate Freeze 63,000 3% Garbage Billing Fee 4,800 Additional Workers Comp cost 19,000 Sewer Discharge Waiver cost 150,000 Management Contract COLAS 26,235 Interest on Street Sweeper Lease Purch 2,750 Additional Funding Requests 12,230 (see attached .schedule) TOTAL DEBITS. $423,015 + Other Appropriation Increases ? + Other Revenue Reductions ? 114,000 Remaining "water reserve" balance 19,000 Workers Comp billing already included in department budgets 60,000 Cayucos share of Discharge Waiver $223,000 TOTAL CREDITS ? + Other Revenue Increases ? + Other Appropriation Cuts CITY OF MORRO BAY • DISCRETIONARY REVENUE PROJECTION Actual Actual Estimated Estimated 79780 80/81 81 82 82 83 Property Taxes 498,265 558,731 633,000 659,000 Sales Taxes 536,536 567,211 656,000 660,000 Franchise Taxes 59,188 82,045 84,000 88,000 Occupance Taxes 235,158 296,520 311,000 302,000 Other Taxes 15,426 19,245 11,000 13,000 Licenses E Permits 49,382 68,607 39,000 51,000 Fines 9,822 12,071 12,000 9,500 Interest a Rents 270,187 346,382 395,000 270,000 Charges for Services 31,963 22,956 16,000 19,500 Other Revenue 9,302 18,295 15,000 11,300 Other -Agencies: Homeowners Relief 22,699 23,707 22,000 23,000 Business Investory Relief 1,568 19,313 16,000 19,000 Motor Vehicle In -Lieu 170,766 161,051 86,000 44,500 Trailer Coach 11,980 8,927 3,000 1,000 Off Hwy. 424 918 100 100 FALA - 15,419 - - Cigarette Tax 30,772 32,484 31,000 32,000 Alcohol Licenses 9,922 10,462 - - Federal Revenue Sharing 137,282 151,473 161,000 165,000 *TOTALS - Net Discretionary Revenue 2,100,642 2,415,817 2,491,100 2,367,900 % Increase (Decrease) 15% 3% < 50 Consumer Price Index Jan. 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U3 01 C+ O ca CD O _ 07 W fD I I O IU co W V OO I O W I01 I tp to CD m W fJl Wt0 VA 00 N N ko O Vl0 O CD W 00 W V A N Ol OD OD 0 m �+ n VI Ln III ICI lolCD lol IID 10 o w a 0 6 3 III o 3 0 c WJ O t0 -' IVI�IIWJVWI� V 01 J V lcoo 1lW t o V A N A W V O N V t 0 O J WOJ c.nW V C. U ANOOlW WO H ��%:•"yj 2:. , C V/ P, F 1i i' w Li I STATISTICo FOR 1981 a. ��5 a1 l,�,j , pry r s +`•, . i. 1 i � J � ( �11 �:j TvT9L' e . IL,! 0? !G'ALLc .6 i 7 ' d ' .PER• YEAR „"•,;�r (;�tyOU�INC PROBLEMS -Tenant -Landlord, Temporary shelter. Gentl.Housing...... ,,533' Yr.6ASIC NEEDS Gss, food, clothing, free or low cost medical- care ts-„ an348 p e oi�> a ion i S/ LOXLINES_RAP CALLS..... ..:_.... ...................... .. :997 4 n� t DaP;RESSION ...core involved than rap calls.., �.SUiCIDr::. In_process or wi•th.,An•tent or caller knows someone .......... ...-,07 {+: Fb.F,AMILY PROBLEMS..Chld abuse, husband/wif.e,,,:parent/child, runaways..-. 1 .:..512 +" �n7.NON.'PiARP,IED. P1ALE/FEiKALE' RELATIONSHIP ER.OBhEMS.. .... 1:........ ..:......9T � $ OTtER,INTERPERSONAL'RELATI-ONSHIP PROBLEMS.., :..... §.SEXUAL_INFORMATION o.Birth control,' pregnancy, abortion info._.., .... '....... �r 5�, .HOMOSEXUALITY:,Concerns, counseling, misc. information... t tV,1dOMEN..IN CRISIS..Battered women, rape'".•..........:....'...:'.....'...........127 .ALCOHOL AND. DRUG ABUSE.... o..,o. o so is. ......................170 e4+! i.3,?HYSICAL HEALTH PROBLEP[3--GEPitERAL....:".......................:. ... ...W d14.EMEiLOYMENT PROBLEMS..Need employment, employee -employer problems .......... 39 '510-ISGAL ,PROBLEMS=INFORMATION & REFERRAL.,, ... '........... 0 ............ 0 ..... , .123 6i.C'ONSJMER COMPLAINTS OR PROBLEMS ENCOUNTERED.................................45 " e ;y.SFiN`hIIIS OBISPO.CONIIxIUNI'PY INFORMATION AND LANGUAGE BAiIK..................636 i} !�Q]' HUMAN yRELATIONS COMMISSION. .. ... .. .726 3.FRIaND5 OUTSIDE ............................. .............:..............38i r r t y+? HOSP•I'GE .. . . 1 . .... ,...... , 1 • ... • .... , • ........... : . . . . . . . . 1 1 . . . . . 1 . , .. . • 1 , :.JSy HOTLINE BUSINE&S AND TPLECARE (TELEPHONE REASSURANCE CALLS).............,.671 a .PRlINK;CALLS ....... .................. ...so �3 Pit � :r.ANG-UPS..................................................................6'15 .4.'WR�ONG NUMBER" ........ ....................... :.............. 1............. •.111 )'?: 1,5.PROBLEM DEFIES CLASSIFICATION -UNSURE HOW TO CATEGORIZE ..................... 276• `6.EMERGENC'Y MINISTRY FUND -SALVATION ARMY ....................... see .......... 232 r: k , �17.CARKER WATCH PROGRAM......................................................3 r; t X OF -CALLERS INDIVIDUAL CITIES r �"E: CALLS --- -2,534 SAN LUIS OBISPO......... 4581,,60,9;,. TEMALE CALLS--4,387 MORRO BAY ................ 265.. 3.5 -ALANCE UNKNOWN- Hang ups,wrong r#ts, etc. 237.. 3.2 ATASCADERO....:.......... ';ALLERS 6Y AGE GROUPS ,.,• PA.,O RCBLES..............'.24.. 1,6 9..............„ C."-.sUCOS...................45.. .06 io-19............303 ' CAMBRIA...................43.. .06 ?0-29.......... 2 59 BAYWOOD PARK/LOS bsos.... '+°7.. 2.5 110-39.... ......2341 PISMO BEACH..............193.. 2.6 +0-49.......... 1041 GROVER CITY. 9 2.9 .. jOrbS... :..... ..858 ARROYO GRANDE............ 297.. 4.2 :............129 N TPOMO...................132.. 1.8 Inknown......... b75 SANTA MARGARITA . ....,:32.....p4 OTHER....................339.. 4.5 IPTioaowN.................. 82"10.9 TOTAL IiUiIBER OF CALLS THIS YEAR 7,517 TOTAL NUMBER SINCE 1970 86,3LL3 1