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HomeMy WebLinkAboutResolution 01-08 to 81-08RESOLUTIONS 2008 NO. TITLE ADOPTED 74-08 RESOLUTION AUTHORIZING SUBMISSION OF APPLICATIONS TO THE RURAL TRANSIT FUND GRANT PROGRAM 11-10-08 75-08 RESOLUTION APPROVING A SUBLEASE AGREEMENT BETWEEN 801 EM 3ARCADERO LLC AND MICHELE LEARY AND ZOE ANDRES, DBA CENTRAL COAST SPORTFISHING FOR THE FLOATING DOCK ON LEASE SITE 86/86W 11-10-08 76-08 RESOLUTION AMENDING THE COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING THE ORDER OF BUSINESS ON THE CITY COUNCIL AGENDA, APPOINTMENT OF VICE MAYOR AND FILLING COUNCIL VACANCIES 11-10-08 77-08 RESOLUTION SUPPORTING THE MORRO BAY ® COMMUNITY POOL FOUNDATION, A NON- PROFIT ORGANIZATION WITH THE MISSION TO PARTNER WITH PARTICIPATING AGENCIES THAT ARE COMMITTED TO RAISING FUNDS TO BUILD AND SUSTAIN A COMMUNITY AQUATIC CENTER 11-10-08 78-08 RESOLUTION ESTABLISHING THE COMPENSATION AND WORKING CONDITIONS FOR THE MANAGEMENT EMPLOYEES OF THE CITY 11-10-08 79-08 RESOLUTION RECITING THE FACT OF THE GENERAL MUNICIPAL ELECTION HELD ON THE 4Te DAY OF NOVEMBER 2008; AND DECLARING THE RESULTS THEREOF 12-08-08 80-08 AUTHORIZATION TO EXECUTE NEW LEASE AGREEMENT FOR LEASE SITE 67/67W LOCATED AT 575 EMBARCADERO 12-08-08 81-08 AUTHORIZATION TO EXECUTE NEW LEASE AGREEMENT FOR LEASE SITE 68/68W LOCATED Awl AT 591 EMBARCADERO 12-08-08 1 RESOLUTIONS 2008 NO. TITLE ADOPTED 68-08 RESOLUTION AUTHORIZING THE CITY TO ENTER INTO AMENDMENT #2 TO GRANT AGREEMENT WITH THE DEPARTMENT OF BOATING & WATERWAYS FOR MORRO BAY STATE PARK REHABILITATION PROJECT PLANNING 10-27-08 69-08 RESOLUTION APPROVING BERTHING LEASE AGREEMENT WITH THE UNITED STATES COAST GUARD FOR BERTHING SPACE AND USE OF A PORTION OF THE NORTH T-PIER, AND FOR USE OF PARKING SPACES IN THE VICINITY OF THE NORTH T-PIER 10-27-08 ® 70-08 RESOLUTION APPROVING A NEW LEASE AGREEMENT WITH THE MORRO BAY COMMERCIAL FISHERMAN'S ORGANIZATION FOR THE FISHERMAN'S GEAR STORAGE AREA LOCATED AT 1622 EMBARCADERO 10-27-08 71-08 72-08 73-08 RESOLUTION RELATING TO THE CLASSIFICATION, COMPENSATION AN DTERMS OF EMPLOYMENT OF POLICE EMPLOYEES OF THE CITY OF MORRO BAY 11-10-08 RESOLUTION RELATING TO THE CLASSIFICATION, COMPENSATION AND TERMS OF EMPLOYMENT OF THE MISCELLANEOUS EMPLOYEES OF THE CITY OF MORRO BAY 11-10-08 RESOLUTION RELATING TO THE CLASSIFICATION, COMPENSATION AND TERMS OF EMPLOYMENT OF THE CONFIDENTIAL EMPLOYEES OF THE CITY OF MORRO BAY 11-10-08 ® RESOLUTIONS 2008 NO. TITLE ADOPTED 61-08 RESOLUTION ADOPTING A POSITION STATEMENT FOR THE WEST COAST GROUND FISH INDIVIDUAL TRANSFERABLE QUOTA PROGRAM IN FEDERAL FISHERIES 10-13-08 62-08 RESOLUTION OF INTENT TO CONTRACT FIRE SERVICES WITH CAL FIRE 10-13-08 63-08 RESOLUTION RESCINDING RESOLUTION NO. 45-08 AND RESTATING AND DETERMINING THAT A PORTION OF PALM AVENUE IS UNNECESSARY FOR PRESENT OR PROSPECTIVE PUBLIC STREET PURPOSES AND ORDERING ITS ® ABANDONMENT, SUBJECT TO RESERVATION OF SPECIFIC EASEMENTS AND CONDITIONS 10-13-08 64-08 RESOLUTION ESTABLISHING A WATER EMERGENCY AND AUTHORIZING THE UTILITIES/CAPITAL PROJECTS MANAGER TO ENTER INTO A CONTRACT WITH GENERAL ELECTRIC WATER FOR ENERGY RECOVERY EQUIPMENT 10-13-08 65-08 RESOLUTION AUTHORIZING PARTICIPATION IN THE CALIFORNIA ASSET MANAGEMENT TRUST AND DESIGNATING TRANSACTION OFFICERS 10-27-08 66-08 RESOLUTION ACCEPTING $100,000 FROM THE STATE OF CALIFORNIA CITIZENS OPTION FOR PUBLIC SAFETY PROGRAM 10-27-08 67-08 RESOLUTION AUTHORIZING THE CITY TO ENTER INTO ABANDONED WATERCRAFT ABATEMENT FUND CONTRACT WITH THE DEPARTMENT OF BOATING & WATERWAYS 10-27-08 l RESOLUTIONS 2008 NO. TITLE ADOPTED 54-08 RESOLUTION OPPOSING FISCALLY IRRESPONSIBLE STATE BUDGET DECISIONS THAT WOULD `BORROW" LOCAL GOVERNMENT, REDEVELOPMENT AND TRANSPORTATION FUNDS 08-25-08 55-08 RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A LANDLORD'S ESTOPPEL CERTIFICATE FOR LEASE SITES 53-56/ 53W-56W LOCATED AT 501 EMBARCADERO 09-08-08 56-08 RESOLUTION AUTHORIZING PARTICIPATION IN THE CITIES FOR CLIMATE PROTECTION ® CAMPAIGN TO REDUCE GREENHOUSE GAS AND AIR POLLUTION EMISSIONS THROUGHOUT THE COMMUNITY 09-22-08 57-08 RESOLUTION APPROVING A SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 124-128/124W-128W BETWEEN VIRG'S LANDING, INC. AND SHAWN STAMBACK 09-22-08 59-08 RESOLUTION APPROVING LEASE AGREEMENT FOR LEASE SITES 129W-131W LOCATED AT 1215 EMBARCADERO WITH MORRO BAY FISH COMPANY 09-22-08 59-08 RESOLUTION APPROVING LEASE AGREEMENT FOR LEASE SITES 132W-133W LOCATED AT 1235 EMBARCADERO WITH TOGNAZZINI FAMILY INC. 09-22-08 A 60-98 RESOLUTION APPROVING LEASE AGREEMENT FOR REAL PROPERTY LOCATED AT 1700 EMBARCADERO JOINTLY OWNED BY THE CITY AND CAYUCOS SANITARY DISTRICT WITH MORRO ® DUNES TRAILER PARK & CAMPGROUNDS, INC. 09-22-08 ® RESOLUTIONS 2008 NO. TITLE ADOPTED 47-08 RESOLUTION CALLING A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 4, 2008 FOR THE PURPOSE OF ELECTING CERTAIN OFFICERS OF SAID CITY, AND REQUESTING THE BOARD OF SUPERVISORS TO CONSOLIDATE SAID ELECTION 07-14-08 48-08 RESOLUTION AUTHORIZING THE ANNUAL TRANSFER OF EXCESS OPERATING CASH TO ACCUMULATION FUNDS 08-11-08 49-08 RESOLUTION ADOPTING REVISIONS TO THE MASTER FEE SCHEDULE 08-11-08 ® 50-08 RESOLUTION DETERMINING THAT ISSUANCE OF AN ALCOHOL BEVERAGE CONTROL PERMIT FOR A WINE TASTING ROOM LOCATED AT 307 MORRO BAY BOULEVARD WOULD SERVE AS A PUBLIC CONVENIENCE OR NECESSITY 08-I1-08 51-08 RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO FROM THE PLANNING TECHNICAL ASSISTANCE "ECONOMIC DEVELOPMENT" ALLOCATION OF THE STATE CDBG PROGRAM 08-04-08 52-08 RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO FROM THE PLANNING TECHNICAL ASSISTANCE "GENERAL ALLOCATION" OF THE STATE CDBG PROGRAM 08-04-08 53-08 RESOLUTION SUPPORTING THE ESTABLISHMENT OF AN OFF -LEASH DOG PARK AT DEL MAR PARK AND AUTHORIZING STAFF TO PROCESS GENERAL ® PLAN AND MASTER PLAN AMENDMENTS 08-11-08 ® RESOLUTIONS 2008 NO. TITLE ADOPTED 40-08 RESOLUTION DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT 06-23-08 41-08 RESOLUTION DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE NORTH POINT LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT 06-23-08 42-08 RESOLUTION APPROVING ASSIGNMENT OF LEASE AGREEMENT FOR LEASE SITE 34W LOCATED ADJACENT TO 225 MAIN STREET FROM NORMAN ARNOLD TO ROBERT CRIZER 06-23-08 ® 43-08 RESOLUTION DESIGNATING AND AUTHORIZING TRANSACTION OFFICERS TO INVEST PUBLIC FUNDS 07-14-08 44-08 RESOLUTION AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE HOME INVESTMENT PARTNER- SHIP PROGRAM 07-14-08 45-08 RESOLUTION FINDING AND DETERMINING THAT A PORTION OF PALM AVENUE IS UNNECESSARY FOR PRESENT OR PROSPECTIVE PUBLIC STREET PURPOSES AND ORDERING ITS ABANDONMENT SUBJECT TO RESERVATION OF SPECIFIC EASEMENTS AND CONDITIONS 07-14-08 46-08 RESOLUTION APPOINTING ANDREA LUEKER AS CITY MANAGER AND APPROVING CONTRACT 07-14-08 RESOLUTIONS 2008 NO. TITLE ADOPTED 31-08 RESOLUTION IDENTIFYING AND DETERMINING THAT THE MAIN/SAN JACINTO/ALDER STREET INTERSECTION IS A LOW PRIORITY CAPITAL IMPROVEMENT PROJECT AND SHOULD NOT BE PURSUED AT THIS TIME AND IS NOT ON ANY WORKLIST 06-09-08 32-08 RESOLUTION GRANTING A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR TAXI SERVICE 06-23-08 33-08 RESOLUTION ESTABLISHING THE ANNUAL PROPOSITION 4 APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2008/09 06-23-08 ® 34-08 RESOLUTION APPROVING LEASE AGREEMENT FOR LEASE SITE 134-136 LOCATED AT 1245 EMBARCADERO 06-23-08 35-08 VOID 36-08 RESOLUTION APPROVING LEASE AGREEMENT FOR LEASE SITE 137 LOCATED AT 1247 EMBARCADERO 06-23-08 37-08 RESOLUTION APPROVING THE FIRST AMENDMENT TO THE LEASE AGREEMENT FOR LEASE SITE 91-92/91W-92W LOCATED AT 897 EMBARCADERO 06-23-08 38-08 RESOLUTION APPROVING NEW LEASE AGREEMENT FOR REDEVELOPMENT OF LEASE SITE 53-56/53W-56W LOCATED AT 501 EMBARCADERO 06-23-08 39-08 RESOLUTION AMENDING THE PARKING IN -LIEU FEE IN THE DOWNTOWN AREA 06-23-08 C ® RESOLUTIONS 2008 NO. TITLE ADOPTED 24-08 RESOLUTION APPROVING AN EXTENSION OF THE GARBAGE, RECYCLING AND GREENWASTE SERVICES FRANCHISE AGREEMENT WITH MORRO BAY GARBAGE SERVICE AND APPROVING A BASE YEAR RATE ADJUSTMENT APPLICATION REQUESTING AN INCREASE TO SOLID WASTE COLLECTION RATES 05-27-08 25-08 RESOLUTION ADOPTING AND APPROPRIATING THE OPERATING BUDGETS FOR THE 2008-2009 BUDGET CYCLE FOR THE CITY 05-27-08 26-08 RESOLUTION APPROVING AN APPLICATION FOR FUNDING UNDER THE CALHOME PROGRAM AND AUTHORIZING THE EXECUTION OF A ® STANDARD AGREEMENT AND ANY AMENDMENTS THERETO AND ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE CALHOME PROGRAM WITH THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR THE PURPOSES OF THIS GRANT 06-09-08 27-08 RESOLUTION ESTABLISHING THE AUTOMATED CLEARING HOUSE DEBITS AND CREDITS LIMIT AND TRANSACTION OFFICERS FOR DOING BUSINESS WITH RABOBANK 06-09-08 28-08 VOID 29-08 VOID 30-08 RESOLUTION RELATING TO THE CLASSIFICATION,\ COMPENSATION AND TERMS OF EMPLOYMENT OF FIRE EMPLOYEES OF THE CITY 06-09-08 ® RESOLUTIONS 2008 NO. TITLE ADOPTED 17-08 RESOLUTION DETERMINING THE INDUSTRIAL DISABILITY OF LOCAL FIRE SAFETY MEMBER PAUL DEIS 03-24-08 18-08 RESOLUTION ADOPTING AN AMENDMENT TO THE MASTER FEE SCHEDULE FOR HARBOR DEPARTMENT FEES AND SERVICES CHARGES 04-14-08 19-08 RESOLUTION INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT 04-28-08 20-08 RESOLUTION INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE ® NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT 04-28-08 21-08 RESOLUTION OF INTENTION TO ABANDON A PORTION OF THE PALM AVENUE RIGHT-OF- WAY 05-12-08 22-08 RESOLUTION DECLARING THE CITY'S INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR THE MAINTENANCE OF THE NORTH POINT NATURAL AREA 05-27-08 23=08 RESOLUTION DECLARING THE CITY'S INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR THE MAINTENANCE OF THE CLOISTERS PARK AND OPEN SPACE 05-27-08 Ell RESOLUTIONS 2008 NO. TITLE ADOPTED 09-08 RESOLUTION APPROVING THE CITY'S HOUSING REHABILITATION PROGRAM GUIDELINES FOR CDBG GRANT FUNDS 02-11-08 10-08 RESOLUTION REGARDING BOTTLED WATER AND STYROFOAM CONTAINERS 02-11-08 11-08 RESOLUTION APPROVING CONTRACT WITH DEPARTMENT OF BOATING AND WATERWAYS FOR A S35,000 VESSEL EQUIPMENT GRANT 02-25-08 12-08 RESOLUTION ADOPTING THE CAPITAL IMPROVEMENT PROJECTS TO BE FUNDED WITH PROPOSITION 1B MONIES 03-10-08 13-08 RESOLUTION AUTHORIZING MID -YEAR 2007/08 AMENDMENTS TO THE CITY'S OPERATING AND CAPITAL RAPROVEMENT BUDGETS 03-24-08 " 14-08 RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION FOR THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY OF MORRO BAY 03-10-08 15-08 RESOLUTION AUTHORIZING ADOPTION OF THE CHILDREN'S OUTDOOR BILL OF RIGHTS 03-10-08 16-08 RESOLUTION APPROVING AN APPLICATION AND CONTRACT EXECUTION FOR FUNDING FROM THE GENERAL ALLOCATION OF THE STATE OF CALIFORNIA CDBG PROGRAM AND AUTHORIZING THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO WITH THE STATE OF CALIFORNIA FOR THE PURPOSE OF THIS GRANT 03-24-08 11 E 11 RESOLUTIONS 2008 NO. TITLE ADOPTED 01-08 RESOLUTION ADOPTING THE CITY INVESTMENT POLICY AND DELEGATING AUTHORITY TO THE CITY TREASURER TO INVEST IDLE FUNDS 01-14-08 02-08 RESOLUTION APPROVING SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 65-66/65W-66W LOCATED AT 571 EMBARCADERO 01-14-08 03-09 RESOLUTION AUTHORIZING A REPRESENTATIVE TO FILE A GRANT APPLICATION AND ENTER INTO A LOCAL GROUNDWATER ASSISTANCE GRANT AGREEMENT 01-14-08 04-08 RESOLUTION ENDORSING THE INTEGRATED REGIONAL WATER MANAGEMENT PLAN PREPARED BY THE COUNTY OF SAN LUIS OBISPO 01-14-08 05-08 RESOLUTION ADOPTING THE JANUARY 2008 REVISIONS OF THE CITY'S MULTI -HAZARD EMERGENCY RESPONSE PLAN 01-28-08 06-08 RESOLUTION APPROVING AMENDMENT TO THE LEASE AGREEMENT FOR LEASE SITE 78-81/ 78W-81W LOCATED AT 701 EMBARCADERO 01-28-08 07-08 RESOLUTION DESIGNATING PARKING IN -LIEU FUNDS FOR THE HARBORWALK PROJECT 01-28-08 08-08 RESOLUTION CALLING A PRIMARY ELECTION TO BE HELD ON JUNE 3, 2008 FOR THE PURPOSE OF ELECTING CERTAIN OFFICERS; AND REQUESTING THE COUNTY BOARD OF SUPERIVISORS TO CONSOLIDATE SAID ELECTION 01-28-08 RESOLUTION NO. 81-08 ® AUTHORIZATION TO EXECUTE NEW LEASE AGREEMENT FOR LEASE SITE 68/68W, LOCATED AT 591 EMBARCADERO — 591 EM 3ARCADERO LLC CITY COUNCIL CITY OF MORRO BAY, CALIFORNIA WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 68/68W, located at 591 Embarcadero; and, WHEREAS, the Held Family has been Tenants on this Lease Site since 1995; and, WHEREAS, the buildings on the Lease Site are substandard and are in need of replacement; and WHEREAS, the Held Family Trust is working in tandem with the Viole Family LLC, lessees of the adjacent Lease Site 67/67W to redevelop the sites and to provide public access improvements in conjunction with the redevelopment plans that include retail and motel uses; and WHEREAS, the current lease is with the Held Family Trust and said Trust has ® formed a new limited liability corporation called 591 Embarcadero LLC to hold the new lease agreement for Lease Site 68/68W. WHEREAS, the Held Family Trust, doing business as 591 Embarcadero LLC, desires to terminate the existing lease and enter into a new almost 40-year lease agreement effective January 1, 2009 to provide for redevelopment of Lease Site 68/68W under CUP #UP0-140. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that a new lease agreement for Lease Site 68/68W, located at 591 Embarcadero, with 591 Embarcadero LLC, is hereby approved and that the Mayor is hereby authorized to execute the lease document. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 8's day of December 2008 on the following vote: AYES: Borchard, Grantham, Smukler, Peters NOES: Winholtz ABSENT: None 26t J CE PETE S, Mayor ATTEST: B GETT A R, City Clerk W\ ® RESOLUTION NO.80-08 AUTHORIZATION TO EXECUTE NEW LEASE AGREEMENT FOR LEASE SITE 67/67W, LOCATED AT 575 EMBARCADERO — VIOLE FAMILY LLC CITY COUNCIL CITY OF MORRO BAY, CALIFORNIA WHEREAS, the City of Morro Bay is the lessor. of certain property on the Morro Bay waterfront described as Lease Site 67/67W, located at 575 Embarcadero; and, WHEREAS, the Viol6 Family has been Tenants on this Lease Site since the 1960s; and, WHEREAS, the buildings on the Lease Site are substandard and are in need of replacement; and WHEREAS, the V'iole Family LLC is working in tandem with the Held Family Trust, lessees of the adjacent Lease Site 68/68W to redevelop the sites and to provide public access improvements in conjunction with the redevelopment plans that include retail and motel uses; and ® WHEREAS, the Viol6 Family LLC, desires to terminate the existing lease and enter into a new almost 40-year lease agreement effective January 1, 2009 to provide for redevelopment of Lease Site 67/67W under CUP #UPO-140. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that a new lease agreement for Lease Site 67/67W, located at 575 Embarcadero, with the Viol6 Family LLC, is hereby approved and that the Mayor is hereby authorized to execute the lease document. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 8's day of December 2008 on the following vote: AYES: Borchard, Grantham, Smukler, Peters NOES: Winholtz ABSENT: None JORICE PETS , Mayor ATTEST: BRIDGET"AIJER, City Clerk 11 RESOLUTION NO. 79-08 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA RECITING THE FACT OF THE GENERAL MUNICIPAL ELECTION HELD IN THE CITY OF MORRO BAY ON THE 4Tn DAY OF NOVEMBER, 2008; DECLARING THE RESULTS THEREOF, AND SUCH OTHER MATTERS AS ARE PROVIDED BY LAW THE CITY COUNCIL City of Morro Bay, California WHEREAS, a regular General Municipal Election was held and conducted in the City of Morro Bay, County of San Luis Obispo, State of California, on Tuesday, November 4, 2008 as required by law; and WHEREAS, notice of said election was duly and regularly given in time, for and manner as provided by law; that voting precincts were properly established; that election was held and conducted and the votes cast thereat, received and canvassed and the returns made and declared in time, form, and manner as required by the provisions of the Elections Code of the State of California for the holding of elections in cities; and ® WHEREAS, the Board of Supervisors of San Luis Obispo County has duly canvassed or caused to be canvassed the votes cast in the City of Morro Bay by the voters of the City at the General Municipal Election consolidated with the Statewide General Election held on November 4, 2008 and the County Clerk has duly certified to this City Council the result of the votes cast at said election which said certification is attached hereto and by reference made a part hereof. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, as follows: 1. That there were six voting precincts established for the purpose of holding said election consisting of consolidations of the regular election precincts in the City of Morro Bay as established for the holding of state and county elections. 2. That said General Municipal Election was held for the purpose of electing the following officers of said City as required by the laws relating to the cities in the State of California, to wit: • A Mayor of said City for the full term of two years; 0 Two members of the City Council of said City for the full terms of four years. Resolution No. 79-08 Page Two 3. That the names of the persons voted for at said election for the Mayor are as follows: George Leage Janice Peters 4. That the names of the persons voted for at said election for Council Member of said City are as follows: Carla Borchard Roger Ewing William `Bill" Peirce Noah Smukler 5 The City Council does declare and determine that: JANICE PETERS was re-elected as Mayor of said City for the full term of two Is years. CARLA BORCHARD was elected as Council Member of said City for a full term of four years. NOAH SMUKLER was elected as Council Member of said City for a full term of four years. 6. At said election the names of the persons voted for and the number of votes given each person are as set forth in the attached certification. 7. The total number of votes cast in the City at said election and the total number of votes given in each precinct and by absentee voters of the City was and inset forth in the attached certification. 8. The City Clerk shall immediately make and deliver to each of such persons so elected a Certificate of Election signed by the City Clerk and duly authenticated, the City Clerk shall also cause to be administered to each person elected, the Oath of Office prescribed in the State Constitution of the State of California and shall have them subscribe thereto and file the same in the office of the City Clerk. Whereupon, each and all of said persons so elected should be inducted into the respective office to which they have been elected. r Resolution No. 79-08 Page Three 9. That the City Clerk shall certify to the passage and adoption of this resolution; shall enter the same in the book of original resolutions of the City; and shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council of said City, in the minutes of the meeting at which the same was passed and adopted. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a special meeting thereof held on the 8'" day of December 2008 on the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None ATTEST: BRIDGETTAVER, City Clerk ® CERTIFICATE OF THE COUNTY CLERK RESULTS OF CANVASS OF ALL VOTES CAST NOVEMBER 4, 2008 CONSOLIDATED GENERAL ELECTION CITY OF MORRO BAY I, JULIE L. RODEWALD, County Clerk -Recorder of the County of San Luis Obispo, do hereby certify that pursuant to law I did canvass the returns of the votes cast at the above referenced election in the City of Morro Bay on November 4, 2008, and that a photocopy of the Statement of Votes Cast to which this certificate is attached, shows the number of votes cast in said city for each candidate for the office of Mayor and Member of the City Council and that the totals shown for each candidate for the office of Mayor and Member of the City Council in said city and in each of the respective precincts therein, are full, true and correct. is WITNESS, my hand and Official Seal this 25th day of November, 2008. i .WALD, County Clerk -Recorder E Lr] F U U o rV) U� UQi¢O m >w¢rU o�Ow O� Ew ¢�U Q O Cz. E OF-� �UQ_ — O z a U U Cry. Cx. z u U u O ; b V Y �o ono xox c�xr nQr o.ax Qnr � r� ^$n c� U s i- ir. 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RECOGNITION 1.1 The Management Unit is comprised of the following classifications: Commander, City Engineer, Senior Civil Engineer, Utilities and Capital Projects Manager, Planning Manager, Building Official, Wastewater Division Manager, Public Services Superintendent, Information Systems Administrator, Accountant, Management Analyst, Facilities Superintendent, Senior Planner, Parks Superintendent, Support Services Manager, Recreation and Parks Maintenance Superintendent. The term "employee" or "employees" as used herein shall refer only to the foregoing classifications. ® 1.2 Employees working on a regular basis in a classified position, but less than full-time shall receive vacation and sick leave accruals on a pro -rated basis commensurate with hours worked. All benefits for new hires, including insurance benefits, will be allocated on a pro -rated basis commensurate with hours worked. ® 1.3 ELECTRONIC DEPOSIT All employees shall receive their pay by electronic methods. New hires must present account information for a checking or a savings account with an ACH member financial institution. 2. TERM Except as otherwise specifically provided herein, the term of this Resolution commences on July 1, 2008 and expires and is otherwise fully terminated at midnight on June 30, 2011. 3. ANTI-DISCRE IINATION The City and Management employees mutually agree they will not discriminate against employees for the exercise of their rights under the State of California Government Code Section 3502. 4. WORK SCHEDULE This article is intended to define the normal hours of work and shall not be construed as a guarantee of work per day or per week, or of days of work per week. 4.1 WORKDAY: The normal workday shall be eight (8) hours of work in a twenty-four (24) consecutive hour period, except in cases of emergencies. Alternative work schedules can be implemented upon approval of the City Manager. 4.2 WORKSHIFT: ® Employees shall be scheduled to work on regular workshifts having regular starting and quitting times. Except for emergencies, employees' workshifts shall not be changed without 24-hour prior notice to the employee. 4.3 WORKWEEK: The normal workweek shall be five (5) workdays and two (2) consecutive days of rest in a seven (7) day period beginning Saturday, 12:00 a.m. and ending seven days later on Friday night at 11:59 p.m., except in cases of emergencies, or at the specific request of an employee and approval of department head. Nothing herein shall be construed to eliminate, currently established irregular work schedules. 4.4 OVERTIME COMPENSATION Employees in this unit are considered "exempt" employees within the definition of FLSA and do not receive overtime for time worked outside of the regular work schedule. 4.5 EMERGENCIES: 4.5.1 Nothing herein shall be construed to limit or restrict the authority of management to make.temporary assignments to different or additional locations, shifts, or duties for the purpose of meeting an emergency. Such emergency assignments shall not extend beyond the period of said emergency. 4.5.2 Short staffing caused solely by absences due to employees taking approved paid leave shall not be considered an emergency. E ® 5. VACATION LEAVE 5.1 During the term of this resolution paid vacation leave shall be earned at the following rate: Service Years Entitlement in Days 1 thru 2 10 3 thru 4 11 5 thru 6 12 7 thru 8 13 9 thru 10 14 11 thru 12 15 13 thru 14 16 15 thru 16 17 17 thru 18 18 19 thru 20 19 21 or more 20 5.2 The standard for vacation time is eight (8) hours equals one (1) day. 5.3 MAXIMUM ACCUMULATION It is recognized long-standing accumulations of vacation time exist for some employees. In order to compensate employees for this unused vacation time and reduce this liability for the City, CITY and UNIT agree on the following policy: 5.3.1 Unused vacation leave may be carried over into the following year to a maximum of 400 hours. Employees exceeding the 400 hour maximum as of the pay period containing November 1 of each year will be paid off for vacation time exceeding the 400 hour maximum. The City shall make said payment with the pay period containing the December 1 of each year. Payment shall be computed based upon the employee's base hourly rate of pay as of June 30 of the same calendar year. At employees' option, said payment may be received in up to four equal installments in the first year of this Agreement. At the employees' further option, said payment may be put into deferred compensation. 5.3.2 Employees separating from the City are entitled to pay for accumulated vacation based upon employee's base hourly rate of pay as of June 30 prior to separation. 5.4 A member of this unit may exercise an option to convert into cash a maximum of forty (40) hours of accrued vacation leave each fiscal year. Such conversion shall be computed at the employee's current base hourly rate on an hour per hour basis. Note: All leave time (vacation, sick leave, holiday, etc.) will be taken off on an hour for hour basis equaling employee actual time off, regardless of accumulation rates. 6. HOLIDAYS 6.1 For the purpose of this resolution the following days are the holidays for the employees in this unit: Independence Day July 4 Labor Day 1 st Monday in September ® Veteran's Day November 11 Thanksgiving Day 4th Thursday in November Day after Thanksgiving Friday after Thanksgiving ® Christmas Day December 25 New Year's Day January 1 Martin Luther King, Jr. Day 3rd Monday in January Lincoln's Birthday February 12 Washington's Birthday 3rd Monday in February Memorial Day Last Monday in May Floating Holiday Varies Floating Holiday Varies 6.2 Holidays falling on Saturday shall be observed on the preceding Friday and holidays falling on Sunday shall be observed on the following Monday; and, shall be considered designated holidays for purposes of overtime. 6.3 One holiday equals eight hours. Accrued holiday time may be taken in less than eight hour increments. 6.4 It is agreed that when a holiday is proclaimed by the Mayor of the CITY, then each employee shall be granted time -off in the same number of equivalent work hours. Such time -off shall be selected by the Department Head. 6.5 Employees may accumulate up to a maximum of 48 hours holiday time. Hours of holiday time accumulated over 48 hours will be paid off. When an employee terminates employment with the CITY, he/she shall receive pay for his/her current holiday balance up to a maximum of 48 hours at his/her current base hourly rate. 6.6 CITY's denial of requested holiday time off shall be neither arbitrary nor capricious. ® 7. ADMINISTRATIVE LEAVE 7.1 Each member of this Unit is eligible to earn sixty-four (64) hours of administrative leave per fiscal year. The time during the fiscal year at which an employee may take administrative leave shall be determined by their department head with regard for the wishes of the employee and particular regard for the needs of the services. 7.2 Up to 24 hours of administrative leave may be rolled over into the following fiscal year. Upon termination, employee will be paid the pro -rated amount commensurate with that portion of the fiscal year worked. 7.3 Each member of the unit may be eligible for additional administrative leave upon authorization from the City Manager. Such administrative leave may be granted when employees are required to perform their responsibilities in times of immediate threat to public health, safety and property, beyond their regular work schedule. The approval of such time is not guaranteed, and sole discretion without appeal rights rests with the City Manager, and is expressly eliminated from the Grievance Procedure. Recognizing the impact of the Fair Labor Standards Act, employees in this unit will be sensitive to the operational needs and financial limitations of the City, and will therefore attempt to limit the use of overtime by employees in their respective areas of responsibility. 7.4 Each new member of this Unit hired during the term of this agreement shall, at time of hire, be eligible for forty (40) hours of administrative leave. Use and accumulation of such leave will be in accordance with the other provisions of Article 9, except in the event that ® employee terminates before completing probation, administrative leave shall not be compensated. n ® 8. SICK LEAVE 8.1 During the term of this resolution, sick leave shall be earned at the rate of one (1) eight - hour workday for each calendar month of service. Sick leave used shall be actual employee time off. For example, if an employee works four (4) ten (10) hour days per week and is off sick for one of the ten (10) hour days, ten (10) hours shall be deducted from employee's sick leave balance. There shall be no maximum to the amount of sick leave that an employee may accumulate. 8.2 Based on individual utilization of paid sick leave in the preceding fiscal year, employee may convert unused accumulated sick leave into paid vacation leave once during the following fiscal year, pursuant to the formula below: Maximum Conversion Sick Leave Utilization Sick Leave To Vacation Leave 0 hours 96 hours 48 hours 0 to 8 hours 72 hours 36 hours 8 1/4 to 16 hours 48 hours 24 hours 16 1/4 to 25 hours 24 hours 12 hours Over 25 hours 0 0 At least 160 hours shall remain in employee's sick leave bank after any conversion is authorized. ® 8.3 Upon the service retirement of an employee who has more than ten (10) years of service with the CITY, said employee shall be entitled to receive payment for up to the first seven hundred twenty (720) days of his/her accrued sick leave at thirty-five percent (35%) of the employee's rate of pay as of the date of service retirement. Service retirement is defined as service retirement from both the CITY and the respective retirement system thereof. NOTE: Sick leave converted to service credit for PERS purposes cannot be compensated (converted to dollars). 9. EXEMPT TIME OFF This policy is established in accordance with the Fair Labor Standards Act, which exempts employees of this unit from requiring the City to pay time and one-half for time worked over 40 hours. Effective July 1, 2002, Unit members will use accumulated leave time to take time off for sick leave, medical appointments, personal business, vacation, etc. for time off that is less than one full day in the same manner as issued for taking time off that exceeds one day; that is, filling out leave forms and noting time off on time cards. The exception to this policy is that time off less than two (2) continuous hours per day need not be recorded. Abuses of this exception, i.e., taking ''/z hour here and there throughout the day, will ® not be allowed. ® 10. RETIREMENT BENEFITS 10.1 UNIT understands and agrees that employees bear the risk of payment of any increases in the employee contribution above the current percentage made by action of the PERS or the state legislature. 10.2 Parties agree that CITY payment of PERS contributions are made based upon tax treatment currently permitted by the State Franchise Tax Board and the IRS. 10.3 Should current tax treatment change, the UNIT and the employee shall hold harmless the CITY, it's officers and agents from any and all claims or costs of any type including but not limited to liability for back taxes, arising out of this agreement to pay part of the employee's=s PERS contribution. 10.4 Should current tax treatment change, the UNIT shall have the opportunity to meet and confer regarding any such changes. 10.5 If the State Legislature adopts a two-tier P.E.R.S. retirement program applicable to unit members, then all unit members employed after the effective date of such P.E.R. S. changes shall be placed in a new retirement plan or one selected by the CITY. Current employees at the time of plan adoption will have a one-time option to enter the new plan; enrollment period to be selected by CITY. 10.6 PERS Miscellaneous Employees 10.6.1 The CITY added the 7% PERS Miscellaneous amount to employee's salary and the employee shall pay her/his own contribution by payroll deduction consistent with the provision of 414 (h) 2 of the Internal Revenue Code. It is understood that the ® City will experience no significant increase in its costs as a result of this change. 10.6.2 The CITY agrees to continue providing PERS Miscellaneous employees in this unit with the following PERS optional benefits: 2.7% at 55 plan (Section 21354.5) Sick Leave Credit Option (Section 20965) Mifitary Service Credit (21024) One -Year Final Compensation (20042) 4`s Level Survivor Benefit (Section 21574) 10.7. PERS Safety Employees 10.7.1 CITY added the equivalent amount (9°/o PERS Safety) to employee's salary and the employee shall pay his/her own contribution by payroll deduction consistent with the provisions of 414 (h) 2 of the Internal Revenue Code. It is understood that the City will experience no significant increase in its costs as a result of this change. 10.7.2 The CITY agrees to continue to provide PERS Safety employees in this unit with a retirement benefit program through the Public Employees Retirement System (PERS) as follows: Highest Single Year Compensation effective 6-22-91 (Section 20042) Sick Leave Credit effective 6-24-89 (Section 20965) 1959 Survivor Benefit effective 6-24-89 (Section 21580) ® 3% @ 50 Retirement Formula effective 6-24-89 (Section 21362) 3rd Level Survivor Benefit effective 6-24-89 (Section 21573) Military Service Credit effective 6-9-98 (Section 21024) ® 11. HEALTH BENEFITS/DEFERRED COMPENSATION PROGRAM 11.1 MEDICAL INSURANCE During the term of this resolution, the City shall offer PERS medical insurance plans. 11.1.1 Employees of this unit shall participate in the PERS medical insurance plans on a cafeteria style basis, with the CITY contributing a maximum of $97.20/month to the active employee's medical insurance and $1.00/month or the amount required by PERS to retiree medical insurance. Effective January 2009, the contribution for active employees will increase to the minimum medical contribution as specified by PERS. Any costs in excess of these contribution rates shall be paid by the employee and Retiree. 11.1.2 The program described in the previous MOU in section 12.1.2, that provided for a lump sum payment to employees to purchase health benefits, is discontinued as of the pay period containing July 1, 2002. The amount of money employees are receiving as of the pay -period containing July 1, 2002 in lieu of insurance benefits (commonly known as "cash -back") will be frozen at amounts received as of the pay -period containing July 1, 2002. Cash -back is eliminated for employees currently using all insurance dollars for insurance and any new hires. If a cash - back employee changes the structure of their insurance (add dependents, delete ® dependents, drop insurance with the City, change carriers, etc.) cash -back is not an option. Cash -back will be eliminated for employees during the open enrollment period in 2003 for the 2004, and in subsequent years, calendar year if said employees are required (because of eliminated plans) to change carrier. In the event an employee receiving cash -back is forced to make a plan change because the City changes plans and/or ceases to contract with PERS for insurance, that employee will maintain cash -back. 11.1.3 Effective the pay period containing January 1, 2008, Unit employees received a medical insurance contribution as follows: Employee only up to $715/month or cost of insurance, whichever is less Employee + 1 — up to $857/month or cost of insurance, whichever is less Employee + family - up to $930/month or cost of insurance, whichever is less 11.1.4 The CITY shall contribute an additional $30.00 for Employee +1 and $40.00 for Employee +2+ for medical insurance rate increases annually, beginning January 1, 2009, 2010 and 2011. The remainder of any increase shall be paid by employee. 11.2 DENTAL AND VISION INSURANCE 11.2.1 During the term of this resolution, the City shall offer dental/life and vision insurance and each employee shall be required to carry both dental/life and ® vision insurance for self. Life Insurance is provided at $20,000 per employee. The following rates are effective January 1, 2008. ® VISION DENTAL LIFE TOTALS Employee Only $ 8.30 $ 40.40 $6.20 $ 54.90 Employee+1 $16.47 $107.00 $6.20 $129.27 Employee+2+ $21.26 $107.00 $6.20 $134.46 Employee will be responsible for the following monthly amounts for dental/life and vision beginning with the pay period including January 1, 2009: Employee Only $2.20 Employee + 1 $7.31 Employee + 2+ $7.80 City will pay the remaining premium for dental/life and vision 11.2.3 Any changes to the dental/life or vision premiums that occur during the term of this resolution shall be shared one half by the employee and one half by the City. 11.3 Any coverage made available to future retirees beyond COBRA time requirements shall be paid for by the retiree. 11.4 LTD INSURANCE The Management employees shall participate in the City -provided Long Term Disability ® Insurance Plan. The City shall pay the costs for this plan. 11.5 CONTRIBUTION TO OTHER PROGRAMS City will contribute up to $1,000 per calendar year to employee's deferred compensation or approved retiree medical savings plan on a 2:1 basis (i.e., employee contributes $2, City contributes $1). 11.6 WORKER'S COMPENSATION LEAVE Any employee who is absent from duty because of an on-the-job injury in accordance with state worker's compensation law and is not eligible for disability payments under Labor Code Section 4850 shall be paid the difference between his/her base salary and the amount paid by worker's compensation during the first forty-five (45) working days of such temporary disability absence. Eligibility for worker's compensation leave requires an open worker's compensation claim. 12. EDUCATION INCENTIVES 12.1 CITY agrees to reimburse the costs for job related and job -required certifications, correspondence courses, and licenses (except Class III driver's license) upon successful completion of the examination or course by the employee having written authorization in advance from their department head. This shall include application fees, examination fees, and certificate fees. Renewal fees may be paid in advance by the CITY. This provision does not apply to continuing education requirements. 12.2 CITY agrees to provide a CITY vehicle, when available for required transportation and ® will permit paid time for employee to take examinations scheduled during normal working hours. If no city vehicle is available, City will reimburse mileage for use of personal vehicle. ® 13. SALAREES 13.1 Effective the pay period beginning June 28, 2008, salaries shall be increased by 2%. Effective the pay period beginning December 27, 2008, salaries shall be increased by 1%. Effective the pay period beginning June 27, 2009, salaries shall be increased by 3%. Effective the pay period beginning June 26, 2010, salaries shall be increased by 4%. 132 All salary adjustments, including but not limited to merit increases, educational incentives, and any other pay adjustments will take effect at the beginning of the next payroll period after the scheduled effective date of the increase. 13.3 Any and all special pay incentives will be calculated on base salary. 14. WORK UNIFORMS 14.1 SAFETY SHOES: Employees required to wear steel -toed safety shoes in the performance of their duties shall be eligible to receive an annual allowance for the provision of said shoes in the amount of one hundred twenty dollars ($120.00). Proof of purchase is required. Once purchased, such appropriate footwear must be worn while working. 15. PROBATION ® The probationary period for newly hired employees shall be twelve (12) months. The probationary period for employees promoted to a higher classification shall be six (6) months in the new classification. The City shall have the option of granting a newly hired employee regular status at any time after nine (9) months of service. 16. NO STRIKE, NO LOCK -OUT 16.1 During the term of this resolution, the CITY will not lockout any employees nor will the UNIT cause, authorize, advise or encourage any interruption of work or any other concerted action. The term "interruption of work" shall mean any work stoppage or strike (including economic and unfair labor practice strikes) or any intentional slowdown of work. The term "other concerted action" includes picketing or boycott activities by the UNIT. 16.2 There shall be no refusal to work on, handle or produce any materials or equipment because of a labor dispute. 16.3 Any employee engaging in any action prohibited by this Article shall be subject to immediate discharge or such other discipline as the CITY may assess. Such discharge or discipline shall not be reviewable through the Grievance Procedure. 17. FULL UNDERSTANDING, MODIFICATION, WAIVER ® 17.1 This resolution sets forth the full and entire understanding of the parties regarding the matters set forth herein, and any other prior or existing understanding or agreements by the parties, whether formal or informal, regarding any such matters are hereby superseded or terminated in their entirety. 9 17.2 It is agreed and understood that each party hereto voluntarily and unqualifiedly waives its ® right to negotiate, and agrees that the other party shall not be required to negotiate, with respect to any matter covered herein. 17.3 No agreement, alteration, understanding, variation, waiver, or modification of any of the terms or provisions contained herein shall in any manner be binding upon the parties hereto unless made and executed in writing by all parties hereto, and if required, approved by the City and ratified by the membership of the UNIT. 17.4 The waiver of any breach of any term, or condition of this Agreement by either party shall not constitute a precedent in the future enforcement of all its terms and provisions. 18. SEVERABILITY If any provision(s) are held to be contrary to law by a court of competent jurisdiction, such provision(s) will not be deemed valid and subsisting except to the extent permitted by law, but all other provisions will continue in full force and effect. PASSED AND ADOPTED by the Morro Bay City Council at a result meeting thereof held this 10'" day of November 2008 by the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None f J CE PtTEASMayor ATTEST: BRIDGE AVER, City Clerk El 10 L,J RESOLUTION NO. 77-08 A RESOLUTION SUPPORTING THE MORRO BAY COMMUNITY POOL FOUNDATION, A NONPROFIT ORGANIZATION WITH THE MISSION TO PARTNER WITH PARTICIPATING AGENCIES THAT ARE COMMITTED TO RAISING FUNDS TO BUILD AND SUSTAIN A COMMUNITY AQUATICS CENTER THE CITY COUNCIL City of Morro Bay, California WHEREAS, for many years, San Luis Obispo Unified School District operated an outdoor swimming pool at Morro Bay High School; and WHEREAS, in 1998, the San Luis Obispo Unified School District closed the outdoor swimming pool at Morro Bay High School due to a lack of funding; and WHEREAS, the swimming pool at Morro Bay High School was the only public pool available in the community; and WHEREAS, residents of Morro Bay now have limited access to other public swimming pools; and WHEREAS, a Community Aquatics Center would greatly serve the communities of Morro Bay, Los Osos and Cayucos; and WHEREAS, the City Council of the City of Morro Bay has directed staff to work with local agencies to reestablish a community swimming pool; and WHEREAS, the Morro Bay Community Pool Foundation is a local nonprofit organization with the mission to partner with participating agencies that are committed to raising funds to build and sustain a community aquatics center; and WHEREAS, the Morro Bay Community Pool Foundation is willing to conduct a pool feasibility study using criteria approved by San Luis Obispo County, San Luis Coastal Unified School District and City of Morro Bay; and NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California that they hereby support the Morro Bay Community Pool Foundation in their mission in building and sustaining a community aquatics center. Resolution No. 77-08 Page Two PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 10th day of November 2008 on the following vote: AYES: NOES: ABSENT: ATTEST: DeMeritt, Grantham, Peirce, Winholtz, Peters None None BRIODGEA BAUER, City Clerk 2 RESOLUTION NO. 76-08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY AMENDING THE COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING THE ORDER OF BUSINESS ON THE CITY COUNCIL AGENDA, APPOINTMENT OF VICE MAYOR AND FILLING COUNCIL VACANCIES WHEREAS, the Council Policies and Procedures Manual for the City of Morro Bay is a combination of City Council actions, policies, references, and information regarding the City Council; and WHEREAS, to ensure that all Councilmembers are familiar with and understand the City of Morro Bay's philosophies and policies regarding serving on the City Council, the City of Morro Bay adopted Resolution 46-02 and its Council Policies and Procedures Manual on August 12, 2002; and WHEREAS, the City Council desires to amend certain sections of the Council Policies and Procedures Manual in regard to the Order of Business on the City Council Agenda, Appointment of Vice Mayor, Filling Council Vacancies, and the Appointment of Council Members to Discretionary Boards, as follows: ® 1.2.7 ORDER OF BUSINESS shall be as follows: 1.2.7.1 Establish Quorum and Call to Order 1.2.7.2 Moment of Silence 1.2.7.3 Pledge of Allegiance 1.2.7.4 Mayor and Council Members Reports, Announcements and Presentations 1.2.7.5 Closed Session Report 1.2.7.6 Public Comment 1.2.7.7 Consent Calendar 1.2.7.8 Public Hearings (shall start no sooner than 7:00 p.m.) 1.2.7.9 Unfinished Business 1.2.7.10 New Business 1.2.7.11 Council Declaration of Future Agenda Items 3.2 APPOINTMENT OF VICE MAYOR The appointment of the Vice Mayor shall be for a one-year term and shall be made at the first meeting in December. For appointment as Vice Mayor, a Council Member must be on the Council at least one year. Of those who have been on the Council for at least one year, the Council Member who has not yet held the position shall be appointed Vice Mayor. If there are two Council Members who ® have not yet held the position, the Council Member receiving the highest number of votes in the most recent election shall be appointed Vice Mayor. If all have held the position, the Council Member who has held it the least number of times shall be appointed Vice Mayor. If all Council Members have held it for the same number of years, the Council Member for whom it has been the longest period of time since holding the position shall be appointed Vice Mayor. 3.3 FILLING COUNCIL VACANCIES 3.3.1 SPECIAL ELECTION Measure "R" codified as Ordinance 527 requires the City Council to immediately call a special election to fill any vacant seat on the Council, including the Mayor's seat. The special election shall be held on the neat established election date, as specified in California Elections Code, which is not less than 114 days from the call of the special election. The City Council may appoint an elector who is a registered voter in the City of Morro Bay to fill such vacancy prior to the special election. The appointee shall hold office only until the date of said special election. 3.3.2 LIMITATION OF COUNCILMEMBER WHO RUNS FOR MAYOR ® BEFORE COMPLETING REGULAR TERM. A sitting Council Member is disqualified from nomination for election to the office of Mayor in the next election if the remainder of their Council term after the next election cannot be filled by a vote of the electors on or prior to that election date. NOW, THEREFORE, be it resolved that the City Council of the City of Morro Bay does hereby amend the above -referenced Sections to the Council Policies and Procedures Manual to reflect the above amendments. PASSED AND ADOPTED by the City Council, City of Morro Bay at a regular meeting thereof held on the loth day of November 2008 by the following vote: AYES: Grantham, Peirce, Peters NOES: DeMeritt, Winholtz ABSENT: None TES ® BRIDGE BAUER, City Clerk Resolution 76-08 Page 2 of 2 RESOLUTION NO. 75-08 ® APPROVAL OF A SUBLEASE AGREEMENT BETWEEN 801 EMBARCADERO LLC AND MICHELE LEARY AND ZOE ANDRES, DBA, CENTRAL COAST SPORTFISBING FOR THE FLOATING DOCK ON LEASE SITE 86/86W LOCATED AT 801 EMBARCADERO THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain properties on the Morro Bay Waterfront described as Lease Site 86/86W, located at 801 Embarcadero; and, WHEREAS, the lessee of said Lease Site is 801 Embarcadero LLC; and, WHEREAS, said Lease Site requires City Council approval of any sublease on the site; and, WHEREAS, 801 Embarcadero LLC and Michel Leary and Zoe Andres, dba Central Coast Sportfishing, have paid the sublease application fee and provided all necessary sublease documents; and, WHEREAS, 801 Embarcadero LLC is in compliance with the terms and conditions of the lease agreement for Lease Site 86/86W; and, ® WHEREAS, the City Council of the City of Morro Bay finds that the approval of the Lease Agreement is exempt from review under CEQA because it involves the lease and minor alteration of existing facilities as described in State CEQA Guidelines Section 15301 and is exempt under Class 1, Existing Facilities, Title 2, California Code of Regulations, Section 2905 (a)(2). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the sublease agreement between Embarcadero 801 LLC and Michele Leary and Zoe Andres, dba Central Coast Sportfishing for the floating dock on Lease Site 86/86W, located at 801 Embarcadero is hereby approved. BE IF FURTHER RESOLVED, that the Mayor is hereby authorized to execute said sublease documents. PASSED AND ADOPTED bZ the City Council of the City of Morro Bay at regular meeting thereof held on the 10 day of November, 2008 on the following vote: AYES: DeMeritt, Grantham, Peirce, NOES: None ABSENT: None o, t` 11 �P�AR, City Clerk 0 Winholtz, Peters J CE PETERS ayor ® RESOLUTION NO. 74-08 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AUTHORIZING SUBMISSION OF APPLICATIONS TO THE RURAL TRANSIT FUND GRANT PROGRAM THE CITY COUNCIL City of Morro Bay, California WHEREAS, the San Luis Obispo Council of Governments (SLOCOG) annually adopts the Federal Transit Administration (FTA) Section 5311 formula funds Program of Projects (POP); and WHEREAS, SLOCOG began the Rural Transit Fund (RTF) program with Resolution 02- 16 on December 5, 2002 by programming FTA Section 5311 funds to the San Luis Obispo Regional Transit Authority (RTA); and WHEREAS, RTA has agreed to use these Federal funds for operating support and SLOCOG has agreed to exchange a similar amount of TDA funds for use in the RTF program; and WHEREAS, SLOCOG, RTA and other rural transit operators worked together to develop a process to exchange FTA Section 5311 formula funds with Transportation Development Act (TDA) funds to create the Rural Transit Fund, including Policies and Procedures to govern the RTF program; and ® WHEREAS, the Policies and Procedures developed ensure that all funds will be used solely for rural transit projects consistent with the original intent of the FTA Section 5311 program, which is to maintain a reliable funding source for transit capital in the non -urbanized areas of San Luis Obispo county; and WHEREAS, there is $512,466 available for competitive distribution and project applications for the 2009/2010 RTF cycle are due December 5, 2008. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the Public Services Director is authorized to submit applications to the Rural Transit Fund for the following projects: operating assistance for the Morro Bay Dial -A -Ride, operating assistance for the Morro Bay trolley and purchase of trolley information display cases. PASSED AND ADOPTED bX the City Council of the City of Morro Bay at regular meeting thereof held on the 10 day of November 2008 on the following vote: AYES: DeMeritt, Grantham, Peirce, NOES: None ABSENT: None ATTEST: ® BREDGEIT BAUER, City Clerk Winholtz, Peters ® RESOLUTION NO.73-08 RESOLUTION RELATING TO THE CLASSIFICATION, COMPENSATION AND TERMS OF EMPLOYMENT OF CONFIDENTIAL EMPLOYEES OF THE CITY OF MORRO BAY THE CITY COUNCIL City of Morro Bay, California WHEREAS, in accordance with the provisions of the California Government Code Section 3500 et. seq. and Resolution No. 74-69 of the City of Morro Bay, the City's representatives have met and conferred in good faith pertaining to the subject of wages, benefits, and conditions of employment with the Confidential employees; and WHEREAS, On June 30, 2008, the City Council, City Manager, City Attorney and Department Head Team participated in a City Council Goal Setting Workshop to review current and future policy goals and objectives, discuss progress toward meeting such goals and objectives and identify new policy goals and objectives that the City Council may wish to pursue; and WHEREAS, One of the key discussion topics identified as an outcome of the June 2008 Goal Setting Workshop was employee recruitment and retention and the requirement to look at and give ® serious consideration to City employee compensation and benefit issues that directly impact the ability of the City to recruit and retain both qualified and quality employees; and WHEREAS, After discussion, the City Council identified twenty goals to pursue and included 6 within those twenty as "Priority Goals"; and WHEREAS, in accordance with the agreed upon Priority Goals set by the City Council on June 30, 2008, this 3-year contract meets Priority Goal No. 2 "Provide Funding For Competitive Salaries and Encourage Retention of all City Employees"; and WHEREAS, the meeting between the Confidential employees and the City has resulted in a mutual agreement and understanding to recommend that the employees represented by the Confidential unit accept all of the terms and conditions as set forth in a Memorandum of Understanding, an agreement attached and made a part of this resolution herewith; and WHEREAS, the City now desires to provide said salaries, benefits, and conditions to said Confidential employees of the City of Morro Bay. NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council does hereby approve and adopt in full the Memorandum of Understanding for the period July 1, 2008 through June 30, 20011 as attached and made a part of this resolution. El ® PASSED AND ADOPTED by the Morro Bay City Council at a result meeting thereof held this 10t6 day of November 2008 by the following vote: AYES: DeMeritt, Grantham, Peirce, Winholu, Peters NOES: None ABSENT: None ATTEST: ' l l 8 1! 8 ' • • ® RESOLUTION NO.72-08 RESOLUTION RELATING TO THE CLASSIFICATIONS, COMPENSATION AND TERMS OF EMPLOYMENT OF THE MISCELLANEOUS EMPLOYEES OF THE CITY OF MORRO BAY THE CITY COUNCIL City of Morro Bay, California WHEREAS, in accordance with the provisions of the California Government Code Section 3500 et. seq. and Resolution No. 74-69 of the City of Morro Bay, the City's representatives have met and conferred in good faith pertaining to the subject of wages, benefit; and conditions of employment with SEN Local 620 representing the Miscellaneous employees; and WHEREAS, On June 30, 2008, the City Council, City Manager, City Attorney and Department Head Team participated in a City Council Goal Setting Workshop to review current and future policy goals and objectives, discuss progress toward meeting such goals and objectives and identify new policy goals and objectives that the City Council may wish to pursue; and WHEREAS, One of the key discussion topics identified as an outcome ofthe June 2008 Goal Setting Workshop was employee recruitment and retention and the requirement to look at and give ® serious consideration to City employee compensation and benefit issues that directly impact the ability of the City to recruit and retain both qualified and quality employees; and WHEREAS, After discussion, the City Council identified twenty goals to pursue and included 6 within those twenty as "Priority Goals"; and WHEREAS, in accordance with the agreed upon Priority Goals set by the City Council on June 30, 2008, this 3-year contract meets Priority Goal No. 2 "Provide Funding For Competitive Salaries and Encourage Retention of all City Employees"; and WHEREAS, the meetings between the SEN Local 620 and the City have resulted in a mutual agreement and understanding to recommend that the employees represented by SEN Local 620 accept all of the terms and conditions as set forth in a Memorandum of Understanding, an agreement attached and made a part of this resolution herewith; and WHEREAS, in accordance with the agreed upon Priority Goals set by the City Council on June 30, 2008, this 3-year contract meets Priority Goal No. 2 "Provide Funding For Competitive Salaries and Encourage Retention of all City Employees"; and WHEREAS, the City now desires to provide said salaries, benefits and conditions to said Miscellaneous employees of the City of Morro Bay. 11 NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council does hereby approve and adopt in full the Memorandum of Understanding for the period July 1, 2008 through June 30, 20011 as attached and made a part of this resolution. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the Memorandum of Understanding on behalf of the City. PASSED AND ADOPTED by the Morro Bay City Council at a meeting thereof held this 10te day of November 2008 by the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None ATTEST: - - "(I 9-f �A BRIDGETrjBAUL*City 11 RESOLUTION NO.71-08 RESOLUTION RELATING TO THE CLASSIFICATION, COMPENSATION AND TERMS OF EMPLOYMENT OF POLICE EMPLOYEES OF THE CITY OF MORRO BAY THE CITY COUNCIL City of Morro Bay, California WHEREAS, in accordance with the provisions of the California Government Code Section 3500 et. seq. and Resolution No. 74-69 of the City of Morro Bay, the City's representatives have met and conferred in good faith pertaining to the subject of wages, benefits and conditions of employment with Morro Bay Peace Officers Association; and WHEREAS, On June 30, 2008, the City Council, City Manager, City Attorney and Department Head Team participated in a City Council Goal Setting Workshop to review current and future policy goals and objectives, discuss progress toward meeting such goals and objectives and identify new policy goals and objectives that the City Council may wish to pursue; and WHEREAS, One of the key discussion topics identified as an outcome of the June 2008 Goal Setting Workshop was employee recruitment and retention and the requirement to look at and give serious consideration to City employee compensation and benefit issues that directly impact the ability of the City to recruit and retain both qualified and quality employees; and WHEREAS, after discussion, the City Council identified twenty goals to pursue and included 6 within those twenty as "Priority Goals"; and WHEREAS, in accordance with the agreed upon Priority Goals set by the City Council on June 30, 2008, this 3-year contract meets Priority Goal No. 2 "Provide Funding For Competitive Salaries and Encourage Retention of all City Employees"; and WHEREAS, the meetings between the Morro Bay Peace Officers Association and the City have resulted in a mutual agreement and understanding to recommend that the employees represented by Morro Bay Peace Officers Association accept all of the terms and conditions as set forth in a Memorandum of Understanding, an agreement attached and made a part of this resolution herewith; and WHEREAS, the City now desires to provide said salaries, benefits and conditions to said Police employees of the City of Morro Bay. NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council does hereby approve and adopt in full the Memorandum of Understanding for the period July 1, 2007 through June 30, 2010 as attached and made a part of this resolution. L] BE TT FURTHER RESOLVED that the City Manager is hereby authorized to execute the Memorandum of Understanding on behalf of the City. PASSED AND ADOPTED by the Morro Bay City Council at a meeting thereof held this 10`h day of November 2008 by the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None JOTCE PETEAS, Mayor ATTEST: 11111" Oyu 0 0 RESOLUTION NO. 70-08 ® RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVAL OF A NEW LEASE AGREEMENT WITH THE MORRO BAY COMMERCIAL FISHERMAN'S ORGANIZATION FOR THE FISHERMAN'S GEAR STORAGE AREA LOCATED AT 1622 EMBARCADERO THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay constructed a gear storage facility on Morro Bay Power Plant Property in 1994 under a grant agreement with the California Coastal Conservancy; and WHEREAS, the City of Morro Bay was granted an easement for use of the gear. storage facility site in 1998 by Pacific Gas and Electric which is now held by their successor to the Morro Bay Power Plant, Dynegy; and, WHEREAS, the City of Morro Bay leased a portion of the area to the Morro Bay Commercial Fisherman's Organization for operation of a non-profit, low-cost, safe and convenient gear storage area for commercial fishermen; and, WHEREAS, the lease agreement for the Fisherman's Gear Storage Area had a ® termination date of April 30, 2008, and that agreement is now in month -to -month holdover; and, WHEREAS, the City of Morro Bay and the Morro Bay Commercial Fisherman's Organization desire to continue the operation of the Fisherman's Gear Storage Area. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the Mayor is hereby authorized to execute a new lease agreement with the Morro Bay Commercial Fisherman's Organization for the Fisherman's Gear Storage area, located at 1622 Embarcadero. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 27 s day of October 2008 on the following vote: AYES: NOES: ABSENT: DeMeritt, Grantham, Peirce, Winholtz, Peters None None ATTEST: ®BOUCHER, DEPUTY CITY CLERK ® RESOLUTION NO.69-08 APPROVAL OF BERTHING LEASE AGREEMENT #HSCG89-09-L-6-63-002 WITH THE UNITED STATES COAST GUARD FOR BERTHING SPACE AND USE OF A PORTION OF THE NORTH T-PIER, AND FOR USE OF PARKING SPACES IN THE VICINITY OF THE NORTH T-PIER THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay and the United States Coast Guard (USCG) entered into a berthing agreement with the USCG for their use of the North T-Pier in 1997 which expired September 30, 2008; and, WHEREAS, continued operation of USCG Station Morro Bay and requires that the USCG be able to maintain their use of the North T-Pier; and, WHEREAS, the City and the USCG wish to enter into a new lease agreement for use of approximately 140 linear feet of dock space on the inboard side of the North T- Pier, two slips and continued use of the work shed at the North end of the North T-Pier and use of 10 parking spaces. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the Mayor is hereby authorized to execute Berthing Lease Agreement #HSCG89-09-L-6-63-002 with the USCG for use of the North T-Pier, slip space and ® parking spaces. BE IT FURTHER RESOLVED, that the Harbor Director is hereby authorized to execute any future amendments or renewals of this lease agreement as long as the terms and conditions remain the same. PASSED AND ADOPTED by. the City Council of the City of Morro Bay at a regular meeting held thereof on the 27 day of October 2008, by the following vote: AYES: DeMeritt, Grantham, Peirce, NOES: None ABSENT: None Winholtz, Peters BOUCHER, DEPUTY CITY CLERK E RESOLUTION NO.68-08 ® AUTHORIZATION FOR THE CITY OF MORRO BAY TO ENTER INTO AMENDMENT #2 TO GRANT AGREEMENT #05-128-990 WITH THE DEPARTMENT OF BOATING AND WATERWAYS FOR MORRO BAY STATE PARK REHABILITATION PROJECT PLANNING THE CITY COUNCIL City of Morro Bay, California WHEREAS, in 2002 the City of Morro Bay (City) and the California Department of Parks and Recreation (State Parks) entered into an agreement to have the City of Morro Bay manage planning, design and construction for improvements and rehabilitation of the State Park Marina; and, WHEREAS, per the terms of the agreement between the City and State Parks, revenues from the State Park Marina are paid to the City to complete an EIR for the rehabilitation project and, WHEREAS, funding for construction of the actual improvements to the State Park Marina as yet unsecured, but the project may qualify for the DBW Capital Outlay Program; and, WHEREAS, in July 2006 the City and DBW entered into grant agreement 905- 128-980 to provide $80,000 funding for planning work to further identify and analyze dredging disposal analysis and construction alternatives; and, ® WHEREAS, in August 2007 the City and DBW entered into amendment #1 to grant agreement #05-128-980 for additional funding of $85,000 to work on design specifications and cost estimates for the State Park Marina Rehabilitation Project; and, WHEREAS, DBW has agreed to fund an additional $90,000 through amendment 92 to grant agreement 905-128-980 to work on testing and planning work for the permitting process for the State Park Marina Rehabilitation Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the City of Morro Bay is hereby authorized to enter into Amendment #2 for grant agreement #05-128-980 for the Morro Bay State Park Marina Rehabilitation Project Planning Grant in the amount of $90,000. BE IT FURTHER RESOLVED, that the Harbor Director is hereby authorized to act as the City's agent in regards to all aspects of the amended grant agreement. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 27 day of October 2008, by the following vote: AYES: DeMeritt, Grantham, Peirce, NOES: None ABSENT: None Winholtz, Peters 0 hV+ HE BOUCHER, DEPUTY CITY CLERIC ® RESOLUTION NO.67-08 AUTHORIZATION FOR THE CITY OF MORRO BAY TO ENTER INTO ABANDONED WATERCRAFT ABATEMENT FUND CONTRACT #08-214-505 WITH THE DEPARTMENT OF BOATING AND WATERWAYS THE CITY COUNCIL City of Morro Bay, California WHEREAS, in City of Morro Bay (City) applied for a grant from the Department of Boating and Waterways (DBW) under the Abandoned Watercraft Abatement Fund (AWAF); and, WHEREAS, DBW awarded a grant of $30,000 under the AWAF program to the City for removal of derelict/abandoned vessels and hazards to navigation; and, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the City of Morro Bay is hereby authorized to enter into AWAF Contract 908-214-505 for the removal of derelict/abandoned vessels and hazards to navigation in the amount of $30,000. ® BE IT FURTHER RESOLVED, that the Harbor Director is hereby authorized to act as the City's agent in regards to all aspects of the grant agreement. PASSED AND ADOPTED by. the City Council of the City of Morro Bay at a regular meeting held thereof on the 2r day of October 2008, by the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None Q BOUCHEF, DEPUTY CITY CLERK El 0 RESOLUTION NO. 66-08 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ACCEPTING $100,000 FROM THE STATE OF CALIFORNIA CITIZENS OPTION FOR PUBLIC SAFETY (COPS) PROGRAM THE CITY COUNCIL City of Morro Bay, California WHEREAS, Government Code Sections 30061 through 30064 is providing supplemental funds for front line municipal police services after the City adopted its 2007-2008 budget; and WHEREAS, it is proposed that the Police Chief be given discretion to use these funds during the grant period for other purposes authorized by the grant in the event of a change in department staffing and priorities; and WHEREAS, the required public hearing has been held. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the expenditure of those funds is hereby authorized in accordance with the Government Code as recommended by the Police Chief. PASSED AND ADOPTED by the City Council of the City of Morro Bay, California, at a regular meeting thereof held on the 27a' day of October 2008, on the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None i ATTEST: -/III._. I •, :MI:RMIE BOUCHE& DEPUTY RESOLUTION NO. 65-08 ® RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AUTHORIZING PARTICIPATION IN THE CALIFORNIA ASSET MANAGEMENT TRUST (CAMP) AND DESIGNATING TRANSACTION OFFICERS THE CITY COUNCIL City of Morro Bay, California WHEREAS, Section 6509.7 of Title 1, Division 7, Chapter 5 of the Government Code of the State of California (the "Joint Exercise of Powers Act") provides that, if authorized by their legislative or other governing bodies, two or more public agencies that have the authority to invest funds in their treasuries may, by agreement, jointly exercise that common power; and WHEREAS, under Sections 6500 and 6509.7(b) of the Joint Exercise ofPowers Act, a "public agency" includes, but is not limited to, any California county, county board of education, county superintendent of schools, city, public corporation, public district, regional transportation commission, state department or agency, any joint powers authority formed pursuant to the Joint Exercise of Powers Act by public agencies or nay nonprofit corporation whose membership is confined to public agencies or public officials; and WHEREAS, public agencies, which constitute local agencies as that term is defined in Sections 53600 of Title 5, Division 2, Part 1, Chapter 4, Article 2 of the Government Code of the State of ® California (the "California Government Code"), are authorized, pursuant to Sections 53601(o), to invest all money belonging to, or in the custody of, a local agency, not required for its immediate need, in shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 of the California Government Code that invests in the securities and obligations authorized in subdivisions (a) to (n), inclusive of Government Code Section 53601; and WHEREAS, the California Asset Management Trust (the "Trust") was established, pursuant to and in accordance with the Joint Exercise of Powers Act, by a Declaration of Trust, made as of December 15, 1989, as subsequently amended from time to time (the "Declaration of Trust"), as a vehicle for public agencies to jointly exercise their common power to invest the proceeds of debt issues and public agency surplus funds; and WHEREAS, pursuant to and in accordance with the Joint Exercise of Powers Act, the City of Morro Bay desires to join the other public agencies, which are or will be Participants of the Trust, by adopting and executing the Declaration of Trust, a form which is on file in the office of the Treasurer/Administrative Services Director; and WHEREAS, the City of Morro Bay is a "public agency" as that term is defined in Sections 6500 and 6509.7(b) the Joint Exercise of Powers Act and a `local agency" as that term is defined in Section 53600 of the California Government Code; and ® WHEREAS, the City of Morro Bay is otherwise permitted to be a Participant of the Trust and to invest funds in the Trust; and 11 11 WHEREAS, a program guide describing the Trust (the "Program Guide") is on file in the office of the Treasurer/Administrative Services Director. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofMorro Bay as follows: Section 1. The City of Morro Bay shall join with other public agencies, pursuant to and in accordance with the Joint Exercise of Powers Act, by executing the Declaration of Trust, and thereby becoming a Participant in the Trust, which Declaration of Trust is hereby approved and adopted. A copy of the Declaration of Trust, which is available in the office of the Treasurer/Administrative Services Director, shall be filed with the minutes of the meeting at which this Resolution was adopted. The Mayor is hereby authorized to execute, and the City Clerk is hereby authorized to attest and deliver, the Declaration of Trust. Section 2. The City of Morro Bay is hereby authorized to purchase shares in the Trust from time to time with available funds of the City, and to redeem some or all of those shares from time to time as such funds are needed. Section 3. The appropriate officers, agents and employees of the City of Morro Bay are hereby identified, authorized and directed in the name and on behalf of the City to take all actions, and to make and execute any and all certificates, requisitions, agreements, notices, consents, warrants and other documents, and any changes, amendments, modifications, or waivers thereto which they, or any of them, might deem necessary or appropriate in order to accomplish the purposes of this Resolution, Janice Peters Mayor Andrea Lueker City Manager Susan Slayton Administrative Services Director Joyce Bunting Accountant Laurie Goforth Lead Account Technician Cris Brazzi Account Clerk III Confidential PASSED AND ADOPTED by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 27'" day of October 2008, on the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters RESOLUTION NO.64-08 ® RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ESTABLISHING A WATER EMERGENCY AND AUTHORIZING THE UTILITIES/CAPITAL PROJECTS MANAGER TO ENTER INTO A CONTRACT WITH GENERAL ELECTRIC WATER FOR ENERGY RECOVERY EQUIPMENT THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Morro Groundwater Basin is a historic domestic water supply for the City of Morro Bay that is experiencing nitrate contamination; and WHEREAS, the City or Morro Bay is the owner and operator of a Desal Plant that produces approximately 400 gpm of domestic wastewater from seawater that has been used for nitrate removal negating its ability to produce domestic water; and WHEREAS, the City of Morro Bay has purchased brackish water treatment trains to remove the nitrate contamination from the Morro Groundwater thereby retaining the ability to use the Desal plant for seawater conversion; and is water failure to take immediate action to furnish and install the brackish water treatment trains to the Desal Plant would potentially result in a public health and safety hazard and most certainly result in future water quality violations; and WHEREAS, the public interest and necessity demands the immediate expenditure of public money to safeguard life, safety, sensitive environmental habitats and property; and WHEREAS, the conditions are such that mitigation cannot permit the delays resulting from competitive solicitation for bids delineated in the Public Contract Code; and WHEREAS, Section 22050 et. sec. of the Public Contract Code provides that a local agency, by 4/5ths vote of its governing body, may repair or replace a public facility without giving notice for bids to let contracts upon finding that the need of the action cannot be delayed by the competitive bid process; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that an emergency condition exists regarding immediate improvements necessary to its Desal Plant and hereby declares said emergency pursuant to Section 20168 of the Public Contract Code an emergency condition exists regarding immediate improvements necessary to its Desal Plant and hereby declares said emergency pursuant to Section 20168 of the Public Contract Code and the California Environmental ® Quality Act; and ® Resolution No. 64-08 Page Two NOW, THEREFORE, BE TT FURTHER RESOLVED, the Utilities/Capital Projects Manager is hereby authorized and directed to order, actions deemed appropriate to mitigate the conditions under emergency contracting outlined in Section 22050 of the Public Contract Code; and PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 13th day of October 2008 on the following vote: AYES: NOES: ABSENT: ATTEST: DeMeritt, Grantham, Peirce, Winholtz, Peters None Nnne. BRrDGEMAUER, Recording requested by and when recorded mail to: ® City Clerk 595 Harbor St Mono Bay, CA 93442 RESOLUTION NO. 63-08 A RESOLUTION RESCINDING RESOLUTION NUMBER 45-08 AND RESTATING AND DETERMINING THAT A PORTION OF PALM AVENUE IS UNNECESSARY FOR PRESENT OR PROSPECTIVE PUBLIC STREET PURPOSES AND ORDERING ITS ABANDONMENT, SUBJECT TO RESERVATION OF SPECIFIC EASEMENTS AND CONDITIONS. THE CITY COUNCIL City of Morro Bay, California BE IT RESOLVED by the Council of the City of Morro Bay as follows: ® SECTION 1. In accordance with public hearings held on October 13, 2008, Resolution No. 45-08 is hereby rescinded. SECTION 2. Also, In accordance with public hearings held on October 13, 2008 and June 9, 2008, pursuant to Section 8300 et seq. of the California Streets and Highways Code and a finding of General Plan consistency, that this Council finds and determines that Palm Avenue, described as the following and shown on Exhibits "A" and "B." "All of Palm Avenue between a line parallel and 15 feet Northerly with the prolongation of the Northerly sideline of Main Street (formerly Morro Bay Blvd) and the South sideline of Walnut Street, being a 50 foot wide street as shown on Page 3 at Page 36 of Maps filed in the office of the San Luis Obispo County Recorder on March 4, 1924, located in the City of Morro Bay, County of San Luis Obispo, State of California", is not necessary for present or future public street purposes. SECTION 3. This Council hereby orders the abandonment of said right-of-way subject to the following conditions and reservations: 1. The existing street entrance at Main Street be removed and replaced with City standard driveway approach that intersects at a ninety -degree angle with Main Street and signed as a private drive to the satisfaction of the City Engineer. ® 2. Applicant to submit a landscape planthat incorporates drought tolerant plantings to the Public Services Department for review and approval, and install landscaping. Resolution No. 63-08 Page Two ® 3. Applicant to submit common driveway and landscaping maintenance agreement to be recorded concurrently with this abandonment. The City of Morro Bay shall be a party to this agreement. 4. Reserving 20-foot wide, Emergency Access and Common Driveway Easement; and a 20-foot wide public sewer easement, as shown on Exhibit `B". Reserving a blanket easement over the abandoned street for the benefit of Pacific Gas and Electric Company, ATT Communication, Charter Communications, Southern California Gas Company, and other public utilities, along with their heirs and assigns, the right from time to time to install, maintain, repair, operate, replace, remove and renew underground or aerial wires and other structures, equipment and fixtures for the operation of said facilities where their facilities exist. 6. Setbacks and lot coverage for future development of the affected properties shall be calculated based on the lot fines and area that existed prior to the abandonment as shown on Exhibit "A." — Existing Lot Lines. 7. Items 1 and 2 must be met within one (1) year of this date. Otherwise, this resolution will expire and be null and void. ® SECTION 4. Upon notification from the City Engineer to the City Clerk that the conditions prescribed in SECTION 3 have been met, the City Clerk shall cause a certified copy of this Resolution of Abandonment, duly attested under the seal of the City, to be recorded in the Office of the San Luis Obispo County Recorder. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting on the 13th day of October 2008, by the following vote. AYES: Grantham, Peirce, Peters NOES: DeMeritt, Winholtz ABSENT: None ABSTAIN: None ATTEST: r EXHIBIT "A" KJ rl / I / I 0 r z m CA ` �7X'T r —~Iu�' PALM AVE r tom- q�r O r a i- m RIGHT OF WAY ABANDONMENT LAND/SEAINTERFACE rALMsTRm �m OFA s U n + ww�wt w. a+a�m 11 r- OF WAY EXHIBIT "B" 0 1 PALM AVE. El u RESOLUTION NO. 62-08 RESOLUTION OF INTENT TO CONTRACT FIRE SERVICES WITH CAL FIRE THE CITY COUNCIL CITY OF MORRO BAY, CALIFORNIA WHEREAS; the Morro Bay Fire Fighters Association asked the City Council to research the viability of a Cal Fire contract in order that the City could accomplish the objectives of the Morro Bay Fire Department 5-Year Strategic Plan during challenging financial times, and WHEREAS, the City Council responded by establishing an ad -hoc Cal Fire Advisory Committee; and WHEREAS, the City Council held a public hearing where the ad -hoc Cal Fire Advisory Committee reported that it believes further investigation into contracting fire and emergency services with Cal Fire has merit; and WHEREAS an informational workshop was held, and televised, to both educate the public and answer questions from the community; and WHEREAS additional input was provided at a Public Hearing with the City Council on October 13, 2008; and WHEREAS, the City Council decided to formally request a negotiated contract with Cal Fire to in order that the true contract costs for the City's requested level of service can be identified; NOW, THEREFORE, BE IT RESOLVED that the City of Morro Bay resolves to enter into contract negotiations with Cal Fire with intentions to contract for fire and emergency services pending the City Council's final acceptance of a contract. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 13a' of October 2008. AYES: Grantham, Peirce, Peters NOES: DeMeritt, Winholtz 03MR11111111111M Me \6 BRIDGET703AUEP, ® RESOLUTION NO.61-08 ADOPTION OF A POSITION STATEMENT FOR THE WEST COAST GROUND FISH INDIVIDUAL TRANSFERABLE QUOTA (ITQ) PROGRAM IN FEDERAL FISHERIES THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Pacific Fishery Management Council (PFMC) is considering adoption of an Individual Transferable Quota (ITQ) program for trawl ground fish management; and, WHEREAS, many smaller ports and harbors and family owned fishing businesses have historically been dependent on ground fish landings to provide the flexibility necessary to have an economically viable business and support the harbor infrastructure such as ice and fuel services, marine repair and refrigeration businesses and fish processing/unloading facilities; and, WHEREAS, in the Central Coast of California a partnership of local agencies, ® community leaders, fishermen and conservation organizations is working to transition local fisheries to greater economic and environmental stability and the effort depends on access to abundant local ground fish stocks; and, WHEREAS, the fishermen and communities in the Central Coast of California desire to. preserve our historical family owned fishing businesses and marine dependent infrastructure in Central Coast Harbors; and, WHEREAS, there are many potential negative impacts to family owned fishing businesses and smaller ports and harbors if the ITQ program is not well designed such as: • Consolidation of fishing effort into larger vessels and fewer ports dictated solely by market conditions. • Economic or regulatory impediments to gear switching can nullify the potential benefits in by -catch reduction and habitat impacts in transitioning to non -trawl gear for some of our small boat fisheries. • Collapse of public investment in harbor infrastructure/services in small harbors such as Morro Bay/Port San Luis, Bodega Bay and Crescent City. • Reduced flexibility for small boat fishermen and obstacles to new entrants/non quota holders if the entire quota is assigned to existing trawl permit holders and processors. Resolution No. 61-08 Page Two NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that this community has made significant investment in harbor infrastructure and waterfront facilities to support the Commercial Fishing industry and we urge the PFMC to adopt an ITQ Program for trawl ground fish that includes the following considerations: 1. Support For Community Fishing Associations as Related to Quota Share Control Caps: These Community Fishing Associations, such as the one we are attempting to form in the Central Coast of California, can anchor fishing access in traditional fishing communities in order to provide community cultural and economic benefits and fresh local seafood for consumers. In an ITQ fishery, fishermen operating in small traditional ports will likely need to collaborate with each other and with outside partners to attain a viable scale of operation. Associations can help small ports stay viable by pooling depleted species quota, assisting in covering monitoring costs, and acquiring locally held quota before it migrates outside of the community as a result of consolidation. In an ITQ fishery, quota sold out of a small fishing port will likely represent a permanent loss of that community's access to the resource and severe impact to the viability of the local industry. The PFMC should promote associations as a tool communities can use to proactively adapt to the ITQ. To do this, the PFMC will need to allow associations of fishermen and communities to exceed to a reasonable degree the quota accumulation caps set for individuals. 1 Adaptive Management Program (AMP): The AMP can be the tool to allocate quota to individuals, processors or community associations that are in need of harvest privileges to ensure communities retain some access to ground fish stocks and build a foundation for community based management. The AND, coordinated with the tool of associations, can also be used to provide access to quota for the next generation of professional fishermen, a key to sustaining our fishing communities 3. No Initial Allocation To Processors: The idea of a processor share of initial quota allocation stems from the interest in reducing the impact that the transition to ITQ management may have on fishing communities. While it is evident that these potential community impacts can be significant, it is not clear that a special quota allocation to processors will be a solution to community impacts. An AND and the establishment of associations can better preserve traditional west coast fishing communities and can provide a safety net for future management decisions to help small coastal communities retain access to ground fish landing to support their economies and marine dependent uses. 4. Monitoring: Develop a collaborative and cost effective framework for meeting ITQ monitoring/full accountability requirements, or small boat fisheries most likely will ® be forced out through economies of scale. Electronic monitoring should be supported and implemented for small boat fisheries Resolution No. 61-08 Page Three 5. Funding for Assistance with Abandoned Vessels: When the Federal Government implemented trawl capacity reduction through the permit buy back program, no consideration was given to the abandonment of the vessels in Harbors, creating substantial new costs to small communities/harbors and a significant threat to the environment. Projections are that only 40-60 trawlers will remain in this sector after the ITQ program is implemented and the PFMC should allocate funds or develop a program, possibly in the AMP, to assist ports and harbors in dealing with the threat of abandoned vessels and the threat to pollute from abandoned vessels during the ITQ transition period. 6. Facilitate Gear Switching: Communities such as Morro Bay have always relied on ground fish landings to support infrastructure in the Harbor. Our fishing businesses and harvest methods have changed over time and today we again face the need to re- align our harvest techniques to current market conditions and regulatory changes. This will happen if the ITQ program is designed to allow local fishermen to access quota and the flexibility to gear switch. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 13'h day of October 2008, by the following vote: 40 AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None ATTEST: ill REM N.OMAN r. RESOLUTION NO.60-08 ® APPROVAL OF LEASE AGREEMENT FOR REAL PROPERTY LOCATED AT 1700 EMBARCADERO, JOINTLY OWNED BY THE CITY OF MORRO BAY AND CAYUCOS SANITARY DISTRICT, WITH MORRO DUNES TRAILER PARK & CAMPGROUNDS, INC. THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay and the Cayucos Sanitary District are the Owners and Lessors of certain property located in the City of Morro Bay at 1700 Embarcadero; and WHEREAS, Morro Dunes RV Park and Doug Claassen have been the Lessees and Operators of said property for over 40 years pursuant to a lease dated March 28, 1967; and WHEREAS, the current lease between the Lessors and Lessee expired on April 1, 2007 and has been in holdover status since then pursuant to paragraph 22 of the lease agreement dated March 28, 1967; and WHEREAS, the City of Morro Bay and the Cayucos Sanitary District desire to continue to lease the property at 1700 Embarcadero Road to Morro Dunes RV Park pursuant to the terms and conditions set forth in the attached Lease Agreement; and WHEREAS, the City Council of the City of Morro Bay finds that the approval of the Lease Agreement is ®exempt from review under CEQA because it involves the lease and minor alteration of existing facilities as described in State CEQA Guidelines Section 15301 and is exempt under Class 1, Existing Facilities, Title 2, California Code of Regulations. Section 2905 (a)(2). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that a new lease agreement for real property located at 1700 Embarcadero, with Morro Dunes Trailer Park & Campgrounds, Inc., is hereby approved and that the Mayor is hereby authorized to execute the lease document. BE IT FURTHER RESOLVED that this approval is contingent upon similar approval by the Cayucos Sanitary District as evidenced by signature on the Lease Agreement. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 22nd day of September, 2008, by the following vote: AYES: NOES: ABSENT: ABSTAIN: DEMERITT, GRANTHAM. PEIRCE, WINHOLTZ, PETERS NONE NONE NONE I ® ATTEST: . nybW � BOUCHER, DEPUTY CITY CLERK ® RESOLUTION NO.59-08 APPROVAL OF LEASE AGREEMENT FOR LEASE SITES 132W-133W, LOCATED AT 1235 EMBARCADERO, WITH TOGNAZZINI FAMILY INCORPORATED THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Sites I32W-133W; and, WHEREAS, Mark and Bonnie Tognazzini have been the lessee of 133 W since May 2006; and, WHEREAS, the existing lease agreement for said property terminates on December 31. 2008; and. WHEREAS, the City of Morro Bay desires to support the commercial fishing industry, and establish a new fish hoist on Lease Site 132W. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of ® Morro Bay that a new lease agreement for Lease Sites 132 W-133 W, located at 1235 Embarcadero, with Tognazzini Family Incorporated, Mark Tognazzini and Bonnie Tognazzini, Officers, is hereby approved and that the Mayor is hereby authorized to execute the lease document. PASSED AND ADOPTED by the City Council of the City of Mono Bay at a regular meeting held thereof on the 22°d day of September 2008, by the following vote: AYES: DeMeritt. Grantham, Peters NOES: Winholtz ABSENT: None ABSTAIN: Peirce ® J E BOUCHER, DEPUTY CITY CLERK ® RESOLUTION NO.58-08 APPROVAL OF LEASE AGREEMENT FOR LEASE SITES 129W-131W, LOCATED AT 1215 EMBARCADERO, WITH MORRO BAY FISH COMPANY, A PARTNERSHIP OF BRETT CUNNINGHAM AND DAVID ROSE THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Sites 129W-131 W; and, WHEREAS, The Morro Bay Commercial Fisherman's Organization (MBCFO) has been operating a full -service fish buying station on the Lease Sites since 2005 under a lease agreement that is on a month -to -month holdover; and, WHEREAS, the City of Morro Bay desires to support the commercial fishing industry, provide Morro Bay Fish Company an opportunity to expand its operation and reestablish a for -profit business on these Lease Sites. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of ® Morro Bay that a new lease agreement for Lease Sites 129W-131 W, located at 1215 Embarcadero, with Morro Bay Fish Company; is hereby approved and that the Mayor is hereby authorized to execute the lease document and the existing lease agreement for these sites with the MBCFO is hereby terminated, effective October 22, 2008. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 22nd day of September 2008, by the following vote: AYES: DeMeritt, Grantham, Peirce, Peters NOES: Winholtz ABSENT: None JANICE PETERS. MAYOR ,y a- ® A IE BOUCHER, DEPUTY CITY CLERK ® RESOLUTION NO.57-08 APPROVAL OF A SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 124-128/124W-128W (LOCATED AT 1215 EMBARCADERO) BETWEEN VIRG'S LANDING, INC. AND SHAWN STAMBACK THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 124-128/124W-128W; and. WHEREAS, Virg's Landing, Inc. is the lessee of said property; and, WHEREAS, Darby Neil of Virg's Landing Inc. has requested City Council approval of a sublease agreement for a portion of Lease Site 124-128/124W-128W between Virg's Landing Inc.; and Shawn Stamback, doing business as SLO Divers; and, WHEREAS, Virg's Landing Inc. has completed the assignment application form, paid the assignment fee and provided background information on the proposed sublessee. The Consent to Sublease agreement has been executed by Mr. Neil and Mr. Stamback and a copy of the sublease agreement has been provided to the City; ® NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that sublease of a portion of a sublease agreement for a portion of Lease Site 124-128/124W-128W-56W between Virg's Landing Inc.; and Shawn Stamback, doing business as SLO Divers, is hereby approved and that the Mayor is hereby authorized to execute the Consent to Sublease document. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 22°d day of September 2008, by the following vote: AYES: DeMeritt, Grantham, Peirce, Peters NOES: Winholtz ABSENT: None Au, - ® IE BOUCHER, DEPUTY CITY CLERK ® RESOLUTION NO.56-08 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AUTHORIZING PARTICIPATION IN THE CITIES FOR CLIMATE PROTECTION CAMPAIGN TO REDUCE GREENHOUSE GAS AND AIR POLLUTION EMISSIONS THROUGHOUT THE COMMUNITY THE CITY COUNCIL City of Morro Bay, California WHEREAS, a scientific consensus has developed that carbon dioxide and other greenhouse gases released into the atmosphere have a profound effect on the Earth's climate; and WHEREAS, the 2007 Fourth Assessment Report from the International Panel on Climate Change (IPCC) states that it is very likely that most of the observed increases in globally averaged temperatures since the mid-20`s century are due to human -induced greenhouse gases; and ® WHEREAS, in 2006 the U.S. National Climatic Data Center confirmed clear evidence of human influences on climate due to changes in greenhouses gases; and WHEREAS, the U.S. Conference of Mayors endorsed the 2005 U.S. Mayors' Climate Protection Agreement initiated by Seattle Mayor Nickels and signed by more than 600 mayors in the United States, including our own; and WHEREAS, the Urban Environmental Accords adopted by local government delegates during the United Nations World Environment Day in 2005 calls for reduced emissions through energy efficiency, land use and transportation planning, waste reduction and wiser energy management; and WHEREAS, in 2001, at the request of the Administration the National Academy of Sciences (NAS) reviewed and declared global warming a real problem likely due to human activities: and WHEREAS, 162 countries including the United States pledged under the United Nations Framework Convention on Climate Change to reduce their greenhouse gas emissions; and WHEREAS, energy consumption, specifically the burning of fossil fuels, ® accounts for more than 80 percent of U.S. greenhouse gas emissions; and WHEREAS, local government actions taken to reduce greenhouse gas emissions and increase energy efficiency provide multiple local benefits by decreasing air pollution, creating jobs, reducing energy expenditures, and saving money for the local government, its businesses and its residents; and WHEREAS, the Cities for Climate Protection Campaign sponsored by ICLEI — Local Governments for Sustainability has invited the City of Morro Bay to join ICLEI and become a partner in the Cities for Climate Protection Campaign; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the City of Morro Bay will join ICLEI as a Full Member and participate in the Cities for Climate Protection Campaign, and as a participant, pledges to take a leadership role in promoting public awareness about the causes and impacts of climate change. BE IT FURTHER RESOLVED, that the City of Morro Bay will undertake the Cities for Climate Protection Campaign's five milestones to reduce both greenhouse gas and air pollution emissions throughout the community, and specifically: • Conduct a baseline emissions inventory and forecast; • Adopt an emissions reduction target for the forecast year; • Develop a Local Action Plan; • Implement policies and measures; and • Monitor and verify results. BE IT FURTHER RESOLVED, that the City of Mono Bay requests assistance from ICLEI's Cities for Climate Protection Campaign as it progresses through the milestones. PASSED AND ADOPTED by the City Council of the City of Mono Bay at a regular meeting thereof held on the 22nd day of September, 2008 on the following vote: AYES: NOES: ABSENT: ATTEST: DeMeritt, Grantham, Peirce_. Winholtz, Peters None None 11 BOUCHER, DEPUTY CITY CLERK 11 ® RESOLUTION NO.55-08 APPROVAL AUTHORIZING THE MAYOR TO EXECUTE A LANDLORD'S ESTOPPEL CERTIFICATE FOR LEASE SITE 53-56/53W-56W, LOCATED AT 501 EMBARCADERO THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain properties on the Morro Bay Waterfront described as Lease Site 53-56/53W-56W and Lease Site 53- 56/53W-56W; and, WHEREAS, the lessee of said Lease Sites is the Estero Landing Incorporated; WHEREAS, the lease of said Lease Sites required certain building improvements be made; and, WHEREAS, the lessee is financing the building improvements and the lender, San Luis Trust Bank, is requesting that the City authorize execution of a Landlord's Estoppel Certificate for Lease Site 53-56/53W-56W; and, ® WHEREAS, the City Attorney has reviewed and approved the Landlord's Estoppel Certificate for said Lease Sites. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the Landlord's Estoppel Certificate for Lease Site 53-56/53 W-56W is hereby approved. BE IT FURTHER RESOLVED, that the Mayor is hereby authorized to execute said document. PASSED AND ADOPTED bey the City Council of the City of Morro Bay at a regular meeting held thereof on the 8 day of September 2008, by the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None J CE PETS MAYOR ® BRIDGET BAUER, CITY CLERK ® RECORDATION REQUESTED BY: WHEN RECORDED MAIL TO: San Luis Trust Bank 1001 Marsh Street Sari Luis Obispo, CA 93401 SEND TAX NOTICES TO: Estero Landing, Inc. 515. Morro Avenue Morro Bay. CA 93442 FOR RECORDER'S USE ONLY LANDLORD'S ESTOPPEL CERTIFICATE THIS LANDLORD'S ESTOPPEL CERTIFICATE dated August 20, 2608, is made and executed among Estero Landing, Inc., a California Corporation ["Trustor"); San Luis Trust Bank, 1001 Marsh Street, San Luis Obispo, CA 93401 Mender"); and City of Morro Bay ("Landlord"). Trustor and Lender have entered into, cr are about to enter into, a financial transaction whereby Lander has acquired or will acquire a security interest or other Ben on Trustbr's leasehold interest In the Property described. below. To induce Lender to extend one or more loans of other financial accommodations to Trustor against such security Interest in the Property and for other valuable consideration, with knowledge that Lender Is relying thereon, Landlord and Trustor hereby agree with Lender as follows: THE LEASE. Lardlord has leased the Property to Trustor pursuant to a lease (the 'Lease') dated July 1, 2008 The following information is a summary of the basic terms and conditions of the Lease: A forty (40) year lease agreement effective July 1, 2008 with respect to real estate property commonly known as Lease Site 53-56I53W.56W. Payment of $17,983.00 per year, paid semi-annually. No percentage ® rent until July 1, 2012; thereafter, 5.00% of grow. sales, lass the minimum rent paid: REAL PROPERTY DESCRIPTION. The Lease covers the following described real property, together with all improvements thereon (the "Real Property") located in San Luis Obispo County: State of California' See Exhibit 'A", which is attached to this Certificate and made a part of this Certificate as if fully set forth herein. The Real Property or its address is commonly known as 501 Embarcadero, Morro Bay, CA 93442. The Assessor's Parcel Number for the Real Property is 066-137-001 with other property, 066-353-027 a 048. ESTOPPEL Landlord and Trustor hereby jointly and severally represent and warrant to Lender that: Lease in Effect. The Lease (i) has been duly executed and accepted by Landlord and Trustor, (if) is in full force and effect, and Gil) has not been modified or changed, either in writing or orally, except as reflected in the copy of the Lease provided to Lender. No Default. As of the date of this Certificate, (i) all conditions and obligations to be performed by either Landlord or Trustor under the Lease, to the date hereof, have been satisfied; fit) there exists no breach, default, or event or condition which, the giving of notice or the passage of time, or both, would constitute such a breach or default under the Lease; and (io) there are no existing claims, defenses or offsets against obligations of either Landlord or Trustor under the Lease, including any against rents due or to become due under the terms of the Lease: Entire Agreement. The Lease constitutes the entire agreement between Landlord and Trustor with respect to the Lease of the Property. No Prepaid Rent. No deposits or prepayments of rent have been made in connection with the Lease, except as may be described above in the summary description of the Lease. AGREEMENTS. LandlordandTrustor hereby jointly and severally agree with Lender that, during all such times as Lender is the beneficiary of the security interest in the Property described'above: Modification, Termination and Cancellation. Landlord and Trustor will not consent to any modification, termination or cancellation of the Lease unless Lender first consents thereto in writing. Notice of Defauh. Landlord will notify Lender in writing concurrently with any notice given to Trustor of any breach or default on the part of Trustor under the Lease, and Landlord agrees that Lender shall have the right (but not the obligation) to cure any breach or default specified in such noticewithinthe time periods set forth below.andLandlord will not declare a default of the Lease, if Lender cures such default within thirty (30) days from and after expiration of the time period provided in the Lease for the cure thereof by Trustor; provided, however, that if such default cannot with diligence be cured by Lender within such thirty (30) day period, the commencement of action by Lender within such thirty t30) day period to remedy the same shall be deemed sufficient so long as Lender pursues such cure with diligence. ® MISCELLANEOUS PROVISIONS. This Certificate shall extend to and bird the respective heirs, personal representatives, successors and assigns of the parties to this Certificate. This Certificate shall be governed by and construed in accordance with the laws of the State of California. If Landlord -is other than an individual, any agent or other person executing this Certificate on behalf of Landlord represents and warrants to Lender that he or she has full power and authority to execute this Certificate on Landlord's behalf. Lender shall not be deemed to have waived any rights under this Certificate unless such waiver is in writing and signed by Lender. No delay or omission on the part of LANDLORD'S ESTOPPEL CERTIFICATE Loan No: 1910727 (Continued) Page 2 Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Certificate shall not constitute a waiver of.or prejudice Lender's right otherwise to demand strict compliance with that provision or any other provision. TRUSTOR AND LANDLORD EACH ACKNOWLEDGE HAVING READ ALL THE PROVISIONS OF THIS LANDLORD'S ESTOPPEL CERTIFICATE, AND EACH AGREES TO ITS TERMS. THIS CERTIFICATE IS DATED AUGUST 20, 2008. TRUSTOR: ESTERO LANDING, INC. By: Ken Scott, President of Estero Landing, Inc. Date LANDLORD: CITY OF O 0 AY ey: S una for City of Morr Bay Date LEN ER: SAN LUIS TRUST BANK X Authorized Officer - Date 40 CERTIFICATE OF ACKNOWLEDGMENT STATE OF ) SS COUNTY OF On , 20 before me, (here insert name and title of theofficer) personally appeared Ken Scott, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ISeel) EXHIBIT"A" THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF MORRO BAY, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: Those portions of the grant to the County of San Luis Obispo, by the Act of the Legislature of the State of California, approved July 2,1947 (Statutes 1947 C.1076) as amended (Statutes 1955 C. 413, Statutes 1957 C 1874, Statutes 1960 C. 1874 and Statutes 1960 1st Extra Session C. 70) in the City of Morro Bay, County of San Luis Obispo, State of California, included within the following described lines: Lease sites 53, 53W, 54, 54W, 55, 55W, 56 and 56W described as follows: Parcel 4 of Parcel Map No. MB-68-30 in the City of Morro Bay, County of San Luis Obispo, State of California, according to the map thereof recorded October 10, 1968 in Book 3 at page 10 of Parcel Maps, in the Office of the County Recorder of said County. Except therefrom all deposits of mineral including oil and gas in said land and to the State of California or persons authorized by the State of California, the right to prospect for, mine and remove such deposits from said land, as reserved and excepted in an Act of Legislature approved July 2, 1947 (Stats. 1947 C.1076) as amended (Stats. 1955 C. 413, Stats. 1957 C. 1874, Stats. 1960 C. 1874 and Stats. 1960 1st Extra Session C. 70). APN: 066 137 001 with other prop., 066-353-027 and 048 11 CJ ® RESOLUTION NO. 54-08 A RESOLUTION OPPOSING FISCALLY IRRESPONSIBLE STATE BUDGET DECISIONS THAT WOULD `BORROW" LOCAL GOVERNMENT, REDEVELOPMENT AND TRANSPORTATION FUNDS THE CITY COUNCIL City of Morro Bay, California WHEREAS, on July 1, 2008 the State Legislature missed its Constitutional budget deadline; and WHEREAS, both the Governor and the Legislative Budget Conference Committee have recommended balanced budgets without resorting to "loans" or seizures of local government property tax, redevelopment tax increment and transportation sales tax funds; and WHEREAS, in 1952 the voters of California approved Article XVI, Section 16 of the California Constitution, providing for tax increment financing for community revitalization —not balancing the state budget, and the voters never authorized the legislature to take or "borrow" community redevelopment funds for state programs; and WHEREAS, in 2004 by an 84% margin of approval the voters of California ® approved Proposition IA and sent a loud and unambiguous message to state leaders that they should stop the destructive and irresponsible practice of taking local government funds to finance the state budget and paper over the state deficit; and WHEREAS, in 2006 by a 77% margin of approval the voters of California also approved Proposition 1 A, providing similar protections to transportation funding for state and local transportation projects, including important street maintenance and public transit programs; and WHEREAS, both ballot measures allow the Governor to declare a "severe state of fiscal hardship" and "borrow" these funds if they are repaid in three years with interest, but the Governor believes it would be irresponsible to "borrow" such funds because it would deepen the state's structural deficit and cripple local government and transportation services; and WHEREAS, refusal by the Legislature to carryout its constitutional obligation to compromise on a balanced budget is not a "severe state of fiscal hardship" and would not justify reductions in critical local services, community revitalization programs and infrastructure maintenance at a time when cities are struggling to balance their own budgets during this economic down turn; and ® Resolution No. 54-08 Page Two WHEREAS, city investments in infrastructure, affordable housing and basic public safety and other community services will create needed jobs and speed our economic recovery; and WHEREAS, the Legislature should balance the state budget with state revenues and respect the overwhelming support of voters for not using local property taxes, redevelopment tax increment and transportation sales tax funds to fund the day-to-day operating cost of state programs; and WHEREAS, it would be the height of fiscal irresponsibility to paper over the state structural deficit with more borrowing, and Californians deserve state leaders who will tell them honestly what needs to be done to produce a balanced budget; and WHEREAS, it is time for the state of California to cut up its local government credit cards and deal with the budget deficit in a straightforward way. Balance the state budget with state funds. NOW, THEREFORE, BE IT RESOLVED, that the City of Morro Bay hereby ® opposes any and all efforts by state government to "borrow" or seize local tax funds, redevelopment tax increment and transportation sales tax funds by the state government to finance state operations. Such a move would be fiscally irresponsible for the state and hamper effective local services and infrastructure investments. BE IT RESOLVED FURTHER, that the Mayor is hereby directed to send this resolution and communicate this Council's strong and unswerving opposition on this matter to our Legislators and the Governor along with an expression of our continued appreciation for the Governor's and any supportive legislators' steadfast opposition to further borrowing or seizure of these funds. PASSED AND ADOPTED by the City Council, City of Morro Bay at a regular meeting thereof held on the 25th day of August 2008 by the following vote: AYES: NOES: ABSENT: DeMeritt, Grantham, Peirce, Winholtz, Peters None None ATTEST: � BRIDGET% BAUER, CITY CLERK ® RESOLUTION NO.53-08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY SUPPORTING THE ESTABLISHMENT OF AN OFF LEASH DOG PARK AT DEL MAR PARK AND AUTHORIZING STAFF TO PROCESS GENERAL PLAN AND MASTER PLAN AMENDMENTS ON BEHALF OF MORRO BAY PUPS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay owns and operates a public City park commonly known as Del Mar Park; and WHEREAS, a group of City and San Luis Obispo County residents known as the Morro Bay Pups, a Community Volunteer Organization, has been using a portion of the Del Mar Park as a de -facto off leash dog park area; and WHEREAS, the use of Del Mar Park as an off leash dog park area is inconsistent with the City's General Plan and Del Mar Master Plan; and WHEREAS, Morro Bay Pups has requested the City formally designate a portion of Del Mar Park as an off leash dog park for human and canine recreation and has agreed to improve at its sole cost and to assist in the operation and maintenance of the dog park is area, pursuant to the terms of a Memorandum of Understanding approved by the City Council on April 28, 2008; and WHEREAS, the Recreation and Parks Commission has reviewed and approved the proposed design concept for an off leash dog area within Del Mar Park on June 5, 2008; and WHEREAS, the Recreation and Parks Commission has directed staff to forward a recommendation to amend the Master Plan for Del Mar Park and approved the design concept for an off leash dog park area at Del Mar Park directly to City Council; and WHEREAS, the City Council finds that it is in the best interests of the City and the community to support the establishment of an off leash dog park at Del Mar Park and to authorize staff to process General Plan and Master Plan amendments on behalf of Morro Bay Pups; and WHEREAS, the proposed action is not subject to CEQA since prior to formal approval of any project that may be developed as a result of this action, a full CEQA analysis will be performed and appropriate CEQA documentation will be prepared and processed in accordance with the State CEQA Guidelines; and u u u Resolution No. 53-08 Page Two WHEREAS, the Morro Bay City Council considered supporting the establishment of a dog park area on a portion of Del Mar Park as set forth in Exhibit A and authorizing staff to process the proposed General Plan amendments, Del Mar Master Plan and CEQA Documentation at a public meeting on August 11, 2008. NOW THEREFORE, the City Council of the City of Morro Bay hereby resolves to support the establishment of a dog park area on a portion of Del Mar Park as set forth in Exhibit "A" and authorizes staff to process the proposed General Plan amendments, Del Mar Master Plan and CEQA Documentation. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 1 lth day of August, 2008 by the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None ABSTAIN: None JAINICE PETERS�Mayor ATTEST: BRIDGETTOBAUER, City Clerk Resolution 53-08 Page 2 of 2 i A m vY O �8 m F Rm_ i �WOY RESOLUTION NO. 52-08 ®A RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO FROM THE PLANNING TECHNICAL ASSISTANCE "GENERAL ALLOCATION' OF THE STATE CDBG PROGRAM. BE IT RESOLVED by the City Council of the City of Morro Bay as follows: SECTION 1 The City Council has reviewed and hereby approves an application under the Economic Development program for up to $35,000 for the following planning activity: The preparation of a Redevelopment Feasibility Study to identify areas within Morro Bay that are either physically or economically blighted or represent blighting influences City of Morro Bay and estimate the potential tax increment that could be generated in those areas to eliminate blight, provide affordable housing and stimulate economic development and redevelopment. SECTION 2 The City Council has determined that federal Citizen Participation requirements were met during the development of this application. SECTION 3 For Cash Match, the City Council hereby approves the use of $5,250 from the City's Loan Repayment ® Fund to be used as the City's Cash Match for this application. SECTION 5 The Public Services Director is hereby authorized and directed to act on the City's behalf in all matters pertaining to this application. SECTION 6 If the application is approved, the Public Services Director is authorized to enter into and sign the grant agreement and any subsequent amendments with the State of California for the purposes of this grant. PASSED AND ADOPTED at a special meeting of the City Council of the City of Morro Bay held on August 4"', 2008 by the following vote: AYES: DeMeritt, Grantham, Peirce, Peters NOES: None ABSENT: Winholtz ABSTAIN: None �� l JANICF'PETERS, Mayor ® ATTEST: JAq j BOUCHER, Deputy City Clerk RESOLUTION NO. 51-08 A RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO FROM THE PLANNING TECHNICAL ASSISTANCE ® "ECONOMIC DEVELOPMENT" ALLOCATION OF THE STATE CDBG PROGRAM. BE IT RESOLVED by the City Council of the City of Morro Bay as follows: SECTION 1 The City Council has reviewed and hereby approves an application under the Economic Development program for up to $35,000 for the following planning activity: The preparation of a Redevelopment Feasibility Study to identify areas within Morro Bay that are either physically or economically blighted or represent blighting influences City of Morro Bay and estimate the potential tax increment that could be generated in those areas to eliminate blight, provide affordable housing and stimulate economic development and redevelopment. SECTION 2 The City Council has determined that federal Citizen Participation requirements were met during the development of this application. SECTION 3 For Cash Match, the City Council hereby approves the use of $5,250 from the City's Loan Repayment ® Fund to be used as the City's Cash Match for this application. SECTION 5 The Public Services Director is hereby authorized and directed to act on the City's behalf in all matters pertaining to this application. SECTION 6 If the application is approved, the Public Services Director is authorized to enter into and sign the grant agreement and any subsequent amendments with the State of California for the purposes of this grant. PASSED AND ADOPTED at a special meeting of the City Council of the City of Morro Bay held on August 4"', 2008 by the following vote: AYES: DeMeritt, Grantham, Peirce, Peters NOES: None ABSENT: winholtz ABSTAIN: None JA E PETERS, Mayor ® ATTEST4 J6MIE BOUCHER, Deputy City Clerk RESOLUTION NO. 50-08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY ® DETERMINING THAT ISSUANCE OF AN ABC PERMIT FOR A WINE TASTING ROOM LOCATED AT 307 MORRO BAY BOULEVARD WOULD SERVE AS A PUBLIC CONVENIENCE OR NECESSITY THE CITY COUNCIL City of Morro Bay, California WHEREAS, Gregory Victor Meyers and Brenda Joy Meyers applied for a Department of Alcoholic Beverage Control Permit for a Wine Tasting Room located at 307 Morro Bay Boulevard; and WHEREAS, the permit was automatically denied by the Department of Alcoholic Beverage Control due to an "undue concentration of alcohol licenses" in this census tract; and WHEREAS, in order for the Department of Alcoholic Beverage Control is issue the license, the local governing body must determine that the public convenience or necessity would be served by issuance of the license and pass a resolution stating such; and WHEREAS, after review by the Police Department, there.are no significant concerns in regard to the opening a Wine Tasting Room at this location. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay ® that the public convenience or necessity will be served by issuance of license from the Department of Alcoholic Beverage Control for a wine tasting room at 307 Morro Bay Boulevard. BE IT FURTHER RESOLVED by the City Council of the City of Morro Bay that this action supports new business in Morro Bay and is in conformance with the goals set by the Morro Bay City Council during their goal -setting workshop held on June 30, 2008, specifically "develop ways to be attractive to new businesses". PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this I It' day of August 2008 by the following roll call vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: , None ABSENT: None /111111 �I.Yl1V BRIDGETT BAUER, CITY CLERK ® RESOLUTION NO.49-08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ADOPTING REVISIONS TO THE MASTER FEE SCHEDULE THE CITY COUNCIL City of Morro Bay, California WHEREAS; the City Council finds that fees and charges for City services are annually in need of review for possible updating to reflect changes in the cost of providing those services; and WHEREAS, the California Constitution, in Article 13B Government Spending Limitation Section 8(c), states that proceeds in excess of user charges and user fees that exceed the costs reasonably borne by the City in providing the regulation, product or service are considered proceeds from taxes that are subject to the annual appropriation limit; and WHEREAS, the City has reviewed these fees and finds that they do not exceed the actual costs of providing related services; and ® WHEREAS, the City's Municipal Code Section 3.34.020 provides for the annual review of the Master Fee Schedule and revision; and WHEREAS, on April 13, 1998, the City Council expressed its desire to only review the fees one fee at a time. NOW, THEREFORE, BE IT RESOLVED by the City Council of the 'City of Morro Bay, California, that: 1. The Master Fee Schedule be revised as follows: CATEGORY CURRENT FEE APPROVED FEE Duplicate tape of City Council $12 Delete -no longer providing meetings service $25 for the first check Returned check charge $16 $35 for each subsequent check Physical posting of shut-off notice $20 $50 + annual CPI factor $0 $0 - $3,000 Building/Construction Permits $2,200 $3,001 and up $2,201 and up $75 + annual inflation S48 factor u E CATEGORY CURRENT FEE APPROVED FEE Encroachmentpermits: Regular $72 $110 + annual inflation factor Special — Engineered $139 $242 + annual inflation Structures factor Special — Non -Engineered $36 $110 + annual inflation Structures factor Annual utility $114 $170 + annual inflation factor The Master Fee Schedule will be brought back in its entirety for review annually. PASSED, AND ADOPTED, by the Citz Council of the City of Morro Bay, at a regular meeting thereof held on the 11 day of August 2008, by the following vote to wit: AYES: NOES: ABSENT DeMeritt, Grantham, Peirce, Winholtz, Peters None None ' 1 W' i ' 1� R= ' RESOLUTION NO. 48-08 U A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AUTHORIZING THE ANNUAL TRANSFER OF EXCESS OPERATING CASH TO ACCUMULATION FUNDS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay's operating funds generally have positive cash remaining at the end of each fiscal year, and WHEREAS, the City of Morro Bay desires to identify that excess operating cash by moving it to an accumulation fund; and WHEREAS, moving the excess cash to the accumulation fund has the potential to increase interest earnings in that fund. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that all excess operating cash will be moved to an associated accumulation fund including, but not limited, to the following fund list: OPERATING FUND General Fund Water Revenue Sewer Revenue Harbor Operations ACCUMULATION FUND General Fund Accumulation Water Accumulation Sewer Accumulation Harbor Accumulation PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the I It° day of August 2008, by the following vote to wit: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None 0 ® RESOLUTIONS 2008 NO. TITLE ADOPTED 47-08 RESOLUTION CALLING A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 4, 2008 FOR THE PURPOSE OF ELECTING CERTAIN OFFICERS OF SAID CITY, AND REQUESTING THE BOARD OF SUPERVISORS TO CONSOLIDATE SAID ELECTION 07-14-08 E ® RESOLUTION NO. 47-08 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA CALLING A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 4, 2008 FOR THE PURPOSE OF ELECTING CERTAIN OFFICERS OF SAID CITY; AND REQUESTING THE BOARD OF SUPERVISORS OF SAN LUIS OBISPO COUNTY TO CONSOLIDATE SAID ELECTION WITH THE CONSOLIDATED DISTRICTS ELECTION TO BE HELD IN THE COUNTY ON TUESDAY, NOVEMBER 4, 2008; AND OTHER ELECTION MATTERS AS REQUIRED BY LAW THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City Council of the City of Morro Bay called a General Municipal Election to be held on Tuesday, November 4, 2008 for the purpose of the election of two (2) members of the City Council of said City for the full term of four (4) years, and for the election of one (1) Mayor of the City Council of said City for the full term of two (2) years; and WHEREAS, it is desirable that the General Municipal Election be consolidated ® with the Statewide General Election to be held on the same date and that within the City the precincts, polling places and election officers of the two elections be the same, and that the County Election Department of the County of San Luis Obispo canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election. NOW, THEREFORE, the City Council of the City of Morro Bay, California, does resolve, declare, determine and order as follows: SECTION 1. That pursuant to the requirements of Section 10403 of the Elections Code, the Board of Supervisors of the County of San Luis Obispo is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 4, 2008, for the purpose of the election of one (1) Mayor, and two (2) Members of the City Council. SECTION 2. That the County Election Department is authorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. SECTION 3. That the Board of Supervisors is requested to issue instructions to the County Election Department to take any and all steps necessary for the holding of the consolidated election. Er ® Resolution No. 47-08 Page Two SECTION 4. That the City of Morro Bay recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs. SECTION 5. That the City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the. County Election Department of the County of San Luis Obispo. SECTION 6. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions. PASSED AND ADOPTED b� the City Council of the City of Morro Bay at a regular meeting thereof held on the 14 day of July 2008 on the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ® ABSENT: None ATTEST: Momemu 1. P u RESOLUTION NO.46-08 ® RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, APPOINTING ANDREA LUEKER AS CITY MANAGER AND APPROVING CONTRACT WHEREAS, by Resolution 54-07 on October 22, 2007, the City Council appointed Andrea Lueker as Interim City Manager for the City of Morro Bay; and WHEREAS, CITY requires the services of a City Manager by providing special services and advice of a type authorized by Government Code Section 37103 and Morro Bay Municipal Code Chapter 2.12; and WHEREAS, Andrea Lueker is specially trained and possesses special skills, education, experience, and competency to perform the services and provide the advice needed;and WHEREAS, City Council finds Andrea Lueker is an experienced Public Administrator, and has the qualifications necessary to serve as the City Manager of the City of Morro Bay. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of ® Morro Bay, California, as follows: 1. Andrea Lueker is hereby appointed as the City Manager of the City of Morro Bay to fulfill the functions of that office as provided by Government Code Section 34851 et seq. and Municipal Code Sections 2.12.010 through 2.12.070. 2. The City Council of the City of Morro Bay does hereby authorize the Mayor to execute the agreement with the City Manager attached hereto. PASSED AND ADOPTED by the City Council of the City of Morro Bay at the regular meeting thereof held this 14th day of July 2008, by the following roll call vote: AYES: GRANTHAK PEIRCE, PETERS NOES: COUNCII.MENmER DEMERrrr, COUNCri tv ENSER WINHOLTZ ABSENT: NONE ATTEST: BRII)GETT � 10%uER, CITY CLERK ® CITY MANAGER EMPLOYMENT AGREEMENT This Agreement made and entered into the 15th day of July, 2008, by and between the City of Morro Bay, a municipal corporation in the State of California ("CITY"), and Andrea Lueker ("MANAGER"). SECTION 1. DUTIES AND RESPONSIBILITIES: A. Appointment as City Manager. CITY hereby agrees to employ MANAGER in the capacity of City Manager for CITY during the term of this Agreement. MANAGER will perform the functions and duties specified in Chapter 2.12 of the Morro Bay Municipal Code for this position and perform such other legally permissible and proper duties and functions as the City Council may from time to time assign or delegate. B. Exclusive Employment. During the term of this Agreement, MANAGER shall be in the exclusive employ of CITY; provided, however, that the term "exclusive employ" shall not prohibit part-time employment which the Employee may desire to accept with appropriate prior knowledge and approval of the City Council. "Appropriate prior knowledge and approval of the City Council" shall mean that MANAGER shall give four (4) weeks written notice to the City ® Council prior to accepting part-time employment and approval of the City Council shall be deemed given unless any City Council member states in writing that they desire a closed session to discuss the part-time employment. Such part-time employment shall not in any way conflict in time or interest with MANAGER's responsibilities to CITY. SECTION 2. TERM: TERMINATION: A. Term of Agreement. This Agreement shall commence upon execution by the parties and become effective July 15, 2008. The initial term of this Agreement shall be for four years. Thereafter the Agreement shall be automatically renewed for consecutive terms of two years each unless either party gives written notice to the other of its intent to renegotiate the terms of the Agreement. Such notice must be given not more than four months, nor less than two months, before the end of the pending two year term. B. At -Will Employment. MANAGER's employment with the City is "at -will" and MANAGER serves at the pleasure of the City Council, pursuant to Section 2.12.010 of the Municipal Code. As such, City may terminate MANAGER's employment at any time, with or without cause, with or without advance notice, subject only to the hearing requirements set forth in Municipal Code sections 2.12.230-2.12.260, inclusive. C. Termination Without Cause. In the event that CITY terminates MANAGER's employment for reasons other than those set forth in subsection D below, or for no reason stated, ® within the term of this agreement, or any extensions, CITY agrees to pay MANAGER a cash Paste 1 of 6 payment equal to five (5) months of the MANAGER's then current salary. The schedule of the payment pursuant to this section shall be at the sole discretion of the MANAGER. .10 D. Termination With Cause. The CITY may terminate MANAGER's employment hereunder at any time for cause subject to the provisons of Morro Bay Municipal Code Section 2.12.230-2.12.260. No lump sum cash payment or other severance pay shall be due MANAGER upon any termination for cause. For purposes of this Agreement, "cause" shall mean (i) a gross or habitual failure to perform the functions and duties of the City MANAGER or any other obligations as required by the terms of this Agreement; (ii) misconduct, as determined by the City Council in its sole discretion, including but not limited to: conviction of a misdemeanor or a felony, or entry of a plea of nolo contendere with regard to a misdemeanor or a felony, involving moral turpitude or dishonesty; or (iii) willfully and repeatedly failing or refusing to comply with the policies, rules, regulations, and standards established by the Council; or (iv) conduct which in good faith and by reasonable determination of the City Council demonstrates unfitness to serve. E. Voluntary Resignation. MANAGER may voluntarily resign her position with CITY before expiration of the term of this Agreement by giving CITY ninety (90) days prior written notice. No lump sum cash payment or other severance pay shall be due MANAGER upon any voluntary resignation. F. Limitation on Removal. Pursuant to Morro Bay Municipal Code Section 2.12.270, notwithstanding anything to the contrary herein, CITY may not remove MANAGER from office during or within any period of 90 days following any general municipal election held in the City at which election a member of the City Council is elected. SECTION 3. SALARY: A. Initial Salary. CITY agrees to pay MANAGER for her services rendered in the amount of $145,000 annually, payable in installments at the same time as other employees of CITY are paid. B. Salary Increases. The City Council shall evaluate Manager performance semi- annually the first two years and annually thereafter beginning November 2008. If such evaluation warrants, the CITY may increase MANAGER's annual base salary based upon MANAGER's performance and in accordance with the procedures set forth in CITY's personnel rules. Notwithstanding other provisions related to salary and compensation, City agrees that it will maintain a salary level for MANAGER that is in parity with other, department heads. SECTION 4. HOURS OF WORK: A. Regular Hours. MANAGER's duties may involve expenditures of time in excess of eight (8) hours per day and/or forty (40) hours per week, and may also include time outside normal office hours such as attendance at City Council and other meetings. MANAGER shall not be entitled to additional compensation for any work performed in excess of the CITY's regular workweek. Paste 2 of 6 ® B. Administrative Leave. It is recognized that MANAGER must devote a great deal of her time outside normal office hours without benefit of paid overtime in the conduct of CITY business, and, to that end, MANAGER may take administrative leave as she shall deem appropriate during said normal office hours. The City Council shall fix any other terms and conditions on adminsitrative leave and and reserves the right to automatically and unilaterally amend this paragraph notwithstanding any other terms and conditions of this contract. SECTION 5. TRANSPORTATION: TECHNOLOGY: A. Transportation. The CITY agrees to pay the MANAGER an allowance of $350 per month as reimbursement for operational and depreciation costs of maintaining an automobile which is used by the MANAGER in discharging her duties. This allowance shall be paid in the MANAGER's regular pay check so that record -keeping will not be required, therefore most easily complying with IRS regulations. MANAGER shall be responsible for paying for liability, property damage, and comprehensive insurance coverage upon such vehicle and shall further be responsible for all expenses attendant to the purchase, operation, maintenance, repair, and regular replacement of the vehicle. CITY shall reimburse the MANAGER for any business use of the vehicle beyond San Luis Obispo County at the IRS standard mileage rate. MANAGER understands that City Council is seriously considering reducing or eliminating Transportation Allowances to all City Employees and reserves the right to automatically and unilaterally amend ® this paragraph notwithstanding any other terms and conditions of this contract. B. Technology. CITY agrees to budget, within the budget amount approved by the CITY, a technology budget to assist MANAGER in keeping technologically current and personal productivity high. The technology improvements will be used to pay the cost of acquisition of equipment and purchase of services related to information systems, data handling, communications and productivity and shall be budgeted for the good of the City in accordance with approved budgeting limitations. Purchases for technology improvements shall remain the property of the CITY. SECTION 6. ADDITIONAL EXPENSES: A. Dues and Subscriptions. CITY agrees to pay the professional dues and subscriptions of MANAGER necessary for her continuation and full participation in such national, regional, state and local associations and organizations as are necessary and desirable for her continued professional participation, growth, and advancement and for the good of CITY in accordance with approved budgetary limitations. B. Professional Development. CITY agrees that attendance at ICMA and League Conferences is both beneficial and expected. CITY hereby agrees to pay the travel and subsistence expenses of MANAGER for professional and official travel, meetings, and occasions, and for ® short courses, institutes and seminars necessary to continue the professional development of MANAGER, and to adequately pursue necessary official and other functions for CITY, in Page 3 of 6 accordance with approved budgetary limitations and subject to Section 2.12.050 of the Morro Bay Municipal Code. 10 C. Executive Expenses. CITY recognizes that certain expenses of a non -personal and job -affiliated nature are incurred by MANAGER and hereby agrees to reimburse such expenses upon presentation of a receipt and submission of the appropriate confining purchase requisition to the City Finance Department, in accordance with approved budgetary limitations and subject to Section 2.12.050 of the Morro Bay Municipal Code. D. Education Assistance. The CITY regards the professional development of its MANAGER as an important element of its organizational mission. Therefore, the City is willing to consider allocation of an amount of funding for educational assistance and encourages MANAGER to enroll in a Graduate Program in a career -related field. Due to the financial limitations of the CITY, it is required that MANAGER request and receive written approval of a Graduate Program from City Council prior to the begin date of the classes. If the request is approved by the City Council and funds are available, funding will be set aside to cover the allowed tuition costs. SECTION 7. BENEFITS: MANAGER shall be entitled to those benefits set forth in Exhibit A. SECTION 8. GENERAL PROVISIONS: A. Entire Agreement. This Agreement, together with Exhibit A attached hereto, shall constitute the full, complete and exclusive agreement between the parties hereto and shall supersede all prior and contemporaneous agreements, understandings and representations regarding the subject matter hereof, whether oral or written. B. Assignment. This Agreement shall be binding upon, inure to the benefit of, and be enforceable by CITY and MANAGER and their respective successors; assigns, heirs and executors, except that MANAGER may not assign this Agreement or delegate any of her obligations hereunder and may only assign her rights hereunder with the prior written consent of CITY. . C. Severability. If any provision, or any portion thereof, contained in this Agreement is held to be unconstitutional, invalid, or unenforceable, the remainder of this Agreement or portion thereof shall be deemed severable, shall not be affected and shall remain in full force and effect. D. Notices. Any notice required under this Agreement shall be in writing, shall be sent by personal delivery, courier or first class mail, return receipt requested, to the address set forth below, and shall be deemed effective upon receipt. Page 4 of 6 ® E. Governing Law. This Agreement shall, be governed by and interpreted in accordance with the laws of the State of California, without regard to its conflicts of laws principles. F. Attorney's Fees. In the event of any dispute between the parties hereto relating to or arising out of this Agreement, the prevailing party shall be entitled to receive its reasonable attorneys' fees and costs, in addition to any other relief it may receive. IN WITNESS WHEREOF, the City of Morro Bay has caused this Agreement to be signed and executed in its behalf by its Mayor, and duly attested to by its City Clerk, and the MANAGER has signed and executed this Agreement the day and year first above written. CITY OF MORRO BAY A AATA(:FR Eli ATTEST: Bridgett Ba , City Clerk APPROVED AS TO FORM: &-v " Robert W. Schult7, C ttorney C Paste 5 of 6 EXHIBIT -A BENEFITS 1. Retirement. MANAGER shall be covered by the State of California Public Employee Retirement System (PERS)..The CITY shall add the applicable PERS 7% to MANAGER's salary and the employee shall pay her own contribution by payroll deduction consistent with the provisions of 414 (h) 2 of the internal Revenue Code. In the event the percentage is increased by the Public Employee's Retirement System, MANAGER shall pay any increased percentage. 2. Deferred Compensation Program. MANAGER shall have the option to participate in the Deferred Compensation Program offered by the City subject to the terms and conditions of the 1978 Revenue Act and Section 457 of the Internal Revenue Code. The City will contribute up to $1,000 per calendar year to the Deferred Compensation Program on a 2:1 basis ( i.e. employee contributes $2, City contributes $ 1 ). 3. Paid Vacation Leave. Upon execution of Agreement,. MANAGER shall be entitled to accrue vacation leave at the rate and in accordance with the cap set forth in the current MOU with the Management Employees Unit. MANAGER shall also have the option of converting up to five days of accrued vacation leave into cash each fiscal year. 4. Accrued Sick Leave. Upon execution of Agreement, MANAGER shall be entitled to accrue sick leave at "the rate and in accordance with the current MOU with the Management Employees Unit. 5. Health Insurance Coverage. CITY agrees to provide medical, dental, and vision benefits, and to pay 100% of the monthly premium for MANAGER and her eligible dependents for the HMO or lowest cost medical, dental, life and vision coverage. Employee can chose a more costly medical policy but will have to pay the difference. 6. Life Insurance. CITY agrees to provide a $20,000 Life Insurance policy to MANAGER. 7. LTD Insurance. The MANAGER shall participate in the CITY -provided Long Term Disability Insurance Plan. The cost of this plan shall be paid by the CITY. S. Other Employment Provisions. All provisions of the Morro Bay Municipal Code and resolutions of the CITY relating to benefits and work conditions, unless specified or excepted in this Agreement, shall apply to MANAGER as they would to other employees of CITY. r Paste 6 of 6 Recording requested by and when recorded mail to: ® City Clerk 595 Harbor St Mono Bay, CA 93442 RESOLUTION NO. 45-08 A RESOLUTION FINDING AND DETERMINING THAT A PORTION OF PALM AVENUE IS UNNECESSARY FOR PRESENT OR PROSPECTIVE PUBLIC STREET PURPOSES AND ORDERING ITS ABANDONMENT, SUBJECT TO RESERVATION OF SPECIFIC EASEMENTS AND CONDITIONS. THE CITY COUNCIL City of Morro Bay, California BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. In accordance with a public hearing duly held on June 9, 2008, pursuant to ® Section 8300 et seq. of the California Streets and Highways Code and a finding of General Plan consistency, that this Council finds and determines that Palm Avenue, described as the following and shown on Exhibits "A" and `B." , "All of Palm Avenue between aline parallel and 15 feet Northerly with the prolongation of the Northerly sideline of Main Street (formerly Morro Bay Blvd) and the South sideline of Walnut Street, being a 50 foot wide street as shown on Page 3 at Page 36 of Maps Sled in the office of the San Luis Obispo County Recorder on March 4, 1924, located in the City of Morro Bay, County of San Luis Obispo, State of California", is not necessary for present or future public street purposes. SECTION 2. This Council hereby orders the abandonment of said right-of-way subject to the following conditions: The existing street entrance at Main Street be removed and replaced with City standard driveway approach that intersects at a ninety -degree angle with Main Street and signed as a private drive to the satisfaction of the City Engineer. 2. Applicant to submit a landscape plan that incorporates drought tolerant plantings to the Public Services Department for review and approval, and install landscaping. ® 3. The pedestrian walkway shall be constructed prior to the recordation of the abandonment and shall be maintained by property owners that benefit from the abandonment. The City of Morro Bay shall have the same liability for this pedestrian facility as sidewalk along a public street. ri7 LJ E U Resolution No. 45-08 Page Two 4. Applicant to submit common driveway and landscaping maintenance agreement to be recorded concurrently with this abandonment. The City of Morro Bay shall be a party to this agreement. 5. Reserving a 5-foot wide pedestrian easement to the approval of the City Engineer, from Walnut Street to Main Street. 6. Reserving 20-foot wide, Emergency Access and Common Driveway Easement; and a 20-foot wide public sewer easement, as shown on Exhibit "B". 7. Reserving a blanket easement over the abandoned street for the benefit of Pacific Gas and Electric Company, ATT Communication, Charter Communications, Southern California Gas Company, and other public utilities, along with their heirs and assigns, the right from time to time to install, maintain, repair, operate, replace, remove and renew underground or aerial wires and other structures, equipment and fixtures for the operation of said facilities where their facilities exist. 8. Setbacks and lot coverage for future development of the affected properties shall be calculated based on the lot lines and area that existed prior to the abandonment as shown on Exhibit "A." — Existing Lot Lines. 9. Items I through 4 must be met within one (1) year of this date. Otherwise, this resolution will expire and be null and void. SECTION 3. Upon notification from the City Engineer to the City Clerk that the conditions prescribed in SECTION 2 have been met, the City Clerk shall cause a certified copy of this Resolution of Abandonment, duly attested under the seal of the City, to be recorded in the Office of the San Luis Obispo County Recorder. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting on the 14th day of July 2008, by the following vote. AYES: NOES: ABSENT: ABSTAIN ATTEST: DeMeritt, Grantham, Peirce, Winholtz, Peters None None None .�.�.H.. .,. Lu_- n ;: EXHIBIT "A" r O r z m O 14 2 0 r z m N fll v FI €I FI I I I I R. PALM AV RIGHT OF WAY ABANDONMENT 6 ^ SEA I PALM STREET LAND/5EANTERFAERFA CE _.► -- RKHARD F'AL99 ET Al Ll 11 11 EXHIBIT "B" I mm D N m m a i Ai t Z Z M 3i Q it N n z a ,.omrm..a.rm. Ave. m N; m N a- m i2° Qi D Cl) =m3 ZN t Z 4 v m m D os 2 dR: Y6 �z PALM AVE. m / Da ! 3i � t_ 70 j f Z ! L i ' m i Q z A a m m d RIGHT OF WAY ABANDONMENT ' .Q "m ?ALM5iREET LAND/5EAINTERFACE N �.� ORIARO fAM9FfN re�mv....p.nn .anm e.+e ® RESOLUTION NO.44-08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE HOME INVESTMENT PARTNERSHIPS PROGRAM; AND IF SELECTED, THE EXECUTION OF A STANDARD AGREEMENT AND ANY AMENDMENTS THERETO; AND ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE HOME INVESTMENT PARTNERSHIPS PROGRAM. THE CITY COUNCIL City of Morro Bay, California WHEREAS, the California Department of Housing and Community Development (hereinafter referred to as the "Department") is authorized to allocate HOME Investment Partnership Program ("HOME") funds made available from the U.S. Department of Housing and Urban Development ("HUD"). HOME funds are to be used for the purposes set forth in Title 11 of the Cranston -Gonzalez National Affordable Housing Act of 1990, in federal implementing regulations set forth in Title 24 of the ® Code of Federal Regulations, part 92, and Title 25 of the California Code of Regulations commencing with section 8200; and WHEREAS, on June 2, 2008 the Department issued a 2008 Notice of Funding Availability announcing the availability of funds under the HOME program (the "NOFA'); and WHEREAS, In response to the 2008 NOFA, the City of Morro Bay, a municipal corporation subdivision of the State of California, (the "Applicant"), wishes to apply to the Department for and receive an allocation of HOME funds. NOW, THEREFORE, BE IT RESOLVED, in response to the 2008 NOFA, the Applicant shall submit an application to the Department to participate in the HOME program and for an allocation of funds not to exceed Four Hundred Eighty Six Thousand Dollars ($486,000.00) for the following activities and programs to be located in the City of Morro Bay: Owner -Occupied Rehabilitation Program. BE IT FURTHER RESOLVED that if the application for funding is approved, then the Applicant hereby agrees to use the HOME funds for eligible activities in the manner presented in the therefore mentioned application as approved by the Department in accordance with the statues and regulations cited above. The Applicant may also execute a Standard Agreement, any amendments thereto, and any and all other documents or instruments necessary or required by the Department of HUD for participation in the ® HOME program (collectively, the required documents). Resolution No. 44-08 Page Two BE IT FURTHER RESOLVED that the applicant authorizes the Public Services Director or his designee(s) to execute, in the name of the applicant any required documents as outlined by the Department, HUD or other agency related to the program. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Morro Bay held on July 14, 2008 by the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None E ATTEST: jj:.jk�T BAUER, City Clerk E ] E r RESOLUTION NO.43-08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA DESIGNATING AND AUTHORIZING TRANSACTION OFFICERS TO INVEST PUBLIC FUNDS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay has cash in its possession that exceeds the amount needed for day-to-day transactions; and WHEREAS, the City of Morro Bay has an obligation to its citizens to effectively and safely manage that money while optimizing its earning potential; and WHEREAS, it is necessary to designate, via Resolution, the transaction officers who have the authority to invest the City's funds. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the City staff members fisted below are designated as transaction officers who are authorized to open and close investment accounts within the scope of the City's Investment Policy: Janice Peters Mayor . Andrea Lueker Interim City Manager Susan Slayton Finance Director Joyce Bunting Accountant Laurie Goforth Lead Account Technician Cris Brazzi Account Clerk III Confidential PASSED, APPROVED, AND ADOPTED, by the City Council of the City ofMorro Bay, at a regular meeting thereof held on the 14th day of July 2008, by the following vote to wit: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None Jan06 Peters, May r Bridgett Bter, City Clerk 0 RESOLUTION NO.42-08 APPROVAL OF ASSIGNMENT OF THE LEASE AGREEMENT FOR LEASE SITE 34W, LOCATED ADJACENT TO 225 MAIN STREET, FROM NORMAN ARNOLD TO ROBERT C. CRIZER THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 34W; and, WHEREAS, Norman Arnold is the lessee of said property; and, WHEREAS, Norman Arnold, though his Attorney -in -Fact, Mike McGhee, has requested City Council approval of assignment of the lease agreement for Lease Site 34W to Robert C. Crizer; and, WHEREAS, Mr. Crizer has provided background and financial information as required to the City; and, WHEREAS, the City cannot unreasonably nor arbitrarily withhold assignment approval. ® NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the lease agreement for Lease Site 34W is hereby assigned from Norman Arnold to Robert C. Crizer and that the Mayor is hereby authorized to execute the assignment and assumption documents. BE IT FURTHER RESOLVED, that this assignment is contingent upon the City Attorney's approval of the final assignment and assumption documents and other associated documents by June 30, 2008. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 23rd day of June 2008, by the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None ABSTAIN: None ATTEST: BRIDGETT UER, CITY CLERK RESOLUTION NO. 41-08 1 El A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT THE CITY COUNCIL City of Morro Bay, California WHEREAS, on May 27, 2008 the City Council did adopt Resolution No. 22-08 declaring the Council's intent to levy an assessment for the annual maintenance of the North Point Natural Area and approving the Engineers Report; and WHEREAS, a public hearing to hear all protests as to the levy of the annual assessment of said district was scheduled for June 23, 2008 at 6:00 p.m. in the Veteran=s Memorial Building; and WHEREAS, notices were mailed to one hundred percent (100%) of the property owners on record in the district regarding the proposed assessment and listing the date, time and location of the protest hearing, as well as being published in the local newspaper; and WHEREAS, the City Council did hear objections of all interested parties as to the levy of the annual assessment for the North Point Landscaping and Lighting Maintenance Assessment District on June 23, 2008 at the Veteran's Memorial Building. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the annual levy for the maintenance of North Point Natural Area Landscaping and Lighting Maintenance Assessment District generally located as shown on Exhibit @A@ attached hereto is hereby ordered and the assessment of $5,645 to be equally distributed per assessable parcel for the Fiscal Year 2008-09 is hereby confirmed. BE IT FURTHER RESOLVED by the City Council of the City of Morro Bay that adoption of this resolution shall constitute the levy of an assessment for the Fiscal Year 2008-09 and the City Clerk shall file the diagram and assessment with the County of San Luis Obispo Auditor. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 23`' day of June 2008 by the following roll call vote: AYES: NOES: ABSENT: ATTEST: DeMeritt, Grantham, Peirce, Winholtz, Peters None None BRIDGE11 BAUER, CITY CLE• EXHIBIT 'A' El CITY OFMORRn RAY NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT ASSESSMENT DIAGRAM 082- Ems: ti. y�iT NO AREA —� CAOr ti El NORTH ROIN T NATURAL AREA LEGEND i. = LOT NUMBER i0 COUNTY ASSESSORS PARCEL NUMBER 10. s 19 b �j ra y a � � Y C� �l 7.. ! 1_ TRACT 2110 �o Zo RESOLUTION NO. 40-08 A RESOLUTION OF THE CITY COUNCIL ® OF THE CITY OF MORRO BAY DHiECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT THE CITY COUNCIL City of Morro Bay, California WHEREAS, on May 27, 2008 the City Council did adopt Resolution No. 23-08 declaring the Council's intent to levy an assessment for the annual maintenance of the Cloisters Park and Open Space and approving the Engineers Report; and WHEREAS, a public hearing to hear all protests as to the levy of the annual assessment of said district was scheduled for June 23, 2008 at 6:00 p.m. in the Veteran=s Memorial Building; and WHEREAS, notices were mailed to one hundred percent (100%) of the property owners on record in the district regarding the proposed assessment and listing the date, time and location of the protest hearing, as well as being published in the local newspaper; and WHEREAS, the City Council did hear objections of all interested parties as to the levy of the annual assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District on ® June 23, 2008 at the Veteran's Memorial Building. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the annual levy for the maintenance of Cloisters Landscaping and Lighting Maintenance Assessment District generally located as shown on Exhibit @A@ attached hereto is hereby ordered and the assessment of $148,944 to be equally distributed per assessable parcel for the Fiscal Year 2008-09 is hereby confirmed. BE IT FURTHER RESOLVED by the City Council of the City of Morro Bay that adoption of this resolution shall constitute the levy of an assessment for the Fiscal Year 2008-09 and the City. Clerk shall file the diagram and assessment with the County of San Luis Obispo Auditor. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 23 d day of June 2008 by the following roll call vote: AYES: NOES: ABSENT: DeMeritt, Grantham, Peirce, Winholtz, Peters None None fa,iA.'e-Z-�ualL� BkffGET7qAUER, TPOB PARCEL 1 Most northerly corner Lot 122 or Tract 1996 &=1 0. 17 Q00' . ' d Eu u � �T A RESOLUTION NO. 39-08 ® RESOLUTION AMENDING THE PARKING IN -LIEU FEE IN THE COMMERICAL DOWNTOWN AREA THE CITY OF MORRO BAY City of Morro Bay, California WHEREAS, the City Council has adopted a Parking Management Plan and Morro Bay Municipal Code Section 17.44.020, which authorizes the establishment of Parking In -Lieu Fees by Resolution of the Council; and WHEREAS, in -lieu of parking fees allow for more efficient use of land for commercial purposes and preservation of the pedestrian ambiance and architectural character of Downtown Morro Bay; and WHEREAS, in compliance with the Parking Management Plan and Morro Bay Municipal Code Section 17.44.020, the City Council does hereby consider and estimate an amount necessary to provide parking in the downtown area; and WHEREAS, the City of Morro Bay also has a variety of goals and policies to enhance the economic strength and physical appearance of the downtown area; and ® WHEREAS, the City Council recognizes that payment of total costs at one time would exceed an amount the typical business or new development could afford; and WHEREAS, in furtherance of these goals, the City Council hereby desires to establish a reduced parking in -lieu fee for the Downtown Area. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, that the Parking In -Lieu Fee of $2,000 per space is hereby established in the Downtown Area for five years. BE IT FURTHER RESOLVED by the City Council of the City of Morro Bay, that the area shall be described as the Commercial Downtown Area impacted by parking in -lieu fees and shall only apply to projects that have not received any entitlements or permits. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 23 a day of June 2008, by the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None PETEM, Mayor ® ATTEST_ BRIDGET AVER, City Clerk ® RESOLUTION NO.38-08 APPROVAL OF NEW LEASE AGREEMENT FOR REDEVELOPMENT OF LEASE SITE 53-56/53W-56W, LOCATED AT 501 EMBARCADERO, WITH ESTERO LANDING INCORPORATED THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 53-56/53W-56W; and, WHEREAS, Estero Landing Incorporated has been the lessees of said property for over 5 years and said property has been used for marine related uses for over 50 years, but the buildings on the site are substandard; and, WHEREAS, Estero Landing Incorporated has obtained approval for redevelopment of the site under CUP UPO 0-020 issued in; and, WHEREAS, the City and Estero Landing Incorporated, Ken Scott President, desire to terminate the existing lease to be replaced by a new 40 year lease effective July ® 1, 2008 to provide for redevelopment of Lease Site 53-56/53W-562W. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that a new lease agreement for Lease Site 53-56/53W-56W, located at 501 Embarcadero, with Estero Landing Incorporated, Ken Scott President, is hereby approved and that the Mayor is hereby authorized to execute the lease document. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 2P day of June 2008,.by the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None - L 63 i D BAUEI�'CITY CLERK ® RESOLUTION NO. 37-08 APPROVAL OF THE FIRST AMENDMENT TO THE LEASE AGREEMENT FOR LEASE SITE 91-92/91W-92W, LOCATED AT 897 EMBARCADERO, BETWEEN THE CITY OF MORRO BAY AND ANDERSON INN PROPERTIES THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 91-92/91W-92W, located at 897 Embarcadero; and, WHEREAS, Anderson Inn Properties is the lessee of said property; and, WHEREAS, the final cost estimate for the improvements recently constructed on said property was more than $1,000,000 higher than estimated at the time the lease was approved in 2006; and, WHEREAS, to provide for the additional costs associated with redevelopment of said property and the resulting benefits to the City from completion of the redevelopment ® project, Amendment No. 1 to the lease agreement for Lease Site 91-92/91W-92W provides for an addition of 3 years to the term of the lease agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that Amendment No. 1 to the lease agreement for Lease Site 91-92/91 W-92W between the City of Morro Bay and Anderson Inn Properties is hereby approved and that the Mayor is hereby authorized to execute said First Amendment. PASSED AND ADOPTED b% the City Council of the City of Morro Bay at a regular meeting held thereof on the 23 day of June 2008, by the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None 0.AtiQ.1/ ® BRIDGET AUER, CITY CLERK FIRST AMENDMENT TO LEASE FOR LEASE SITE 91-92/91 W-92W This first amendment ("Amendment") to the lease for Lease for Lease Site 91-92/91W-92W ® dated January 1, 2006 by and between the City of Morro Bay, a municipal corporation of the State of California, hereinafter called "City" and Anderson Inn Properties comprised of three co- tenants; Rodger J. Anderson, Amalia A. Mason and Jefferson L. Anderson currently doing business as Anderson Inn Properties herein called "Tenant". Whereas, City and Tenant executed a 47-year lease in 2006 based on tenants estimated investment cost of $2,400,000 in improvements on City's property at the "premises", and; Whereas, costs of construction of the proposed improvements increased to approximately $3,700,000 as evidenced by a detailed costs provided by the tenant, and; Whereas, it is mutually beneficial for City and Tenant to acknowledge the additional cost for tenants financing and benefits to City of tenant's project to the Embarcadero business environment, now therefore; Tenant and City shall provide for the amendment of Lease as follows: SECTION 1.01 TERM IS DELETED AND REPLACED AS FOLLOWS The term of this lease shall be for a period of fifty years, commencing January 1, 2006 (the "Commencement Date"). This Lease shall terminate without notice on December 31, 2055 (the "Termination Date"), unless sooner terminated as provided in the lease. All other provisions of the lease shall remain in full force and effect. ® In witness hereof the parties hereto have executed this first amendment as of the date written above. CITY OF MORRO BAY APPROVED AS TO FORM TENANT —Anderson Inn Properties zx J.Anderson ..� l L I ! � .iiL � � • r zlltfE� Robert Schultz, City Att r y JkW&n L. Anderson ATTEST: Ft4.. N �. .1. i - t_ ® RESOLUTION NO.36-08 APPROVAL OF LEASE AGREEMENT FOR LEASE SITE137, LOCATED AT 1247 EMBARCADERO, WITH THE HORTON WILLIAMS JR. AND SAVANAH L. WILLIAMS REVOCABLE TRUST AND DON WILLIAMS AND WENDY WH.LIAMS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 137; and, WHEREAS, the Williams family has been the lessee of said property for over 25 years; and, WHEREAS, the existing lease agreement for said property terminates on December 31, 2008; and, WHEREAS, the City of Morro Bay is considering redevelopment of the area including Lease Site 134-136, Lease Site 137, the Public Restroom site and the dock area including Lease Site 133W; and, ® WHEREAS, during the time the City is considering redevelopment of this area the City desires to maintain the existing businesses on the sites. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that a new lease agreement for Lease Site 137, located at 1247 Embarcadero, with the Horton Williams Jr. and Savanah L. Williams Revocable Trust and Don Williams and Wendy Williams, is hereby approved and that the Mayor is hereby authorized to execute the lease document. PASSED AND ADOPTED bw the City Council of the City of Morro Bay at a regular meeting held thereof on the 23 day of June 2008, by the following vote: AYES: DeMeritt, Grantham, Peirce, Peters NOES: Winholtz n ® RESOLUTION NO.34-08 APPROVAL OF LEASE AGREEMENT FOR LEASE SITE 134.136, LOCATED AT 1245 EMBARCADERO, WITH TOGNAZZINI FAMILY INCORPORATED THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 134-136; and, WHEREAS, the Tognazzini family has been the lessee of said property since November 2003; and, WHEREAS, the existing lease agreement for said property terminates on December 31, 2008; and, WHEREAS, the City of Morro Bay is considering redevelopment of the area including Lease Site 134-136, Lease Site 137 and the Public Restroom site and the dock area including Lease Site 133W; and, ® WHEREAS, during the time the City is considering redevelopment of this area the City desires to maintain the existing businesses on the sites. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that a new lease agreement for Lease Site 1347136, located at 1245 Embarcadero, with Tognazzini Family Incorporated, Mark Tognazzini and Bonnie Togna zin_, Officers, is hereby approved and that the Mayor is hereby authorized to execute the lease document. PASSED AND ADOPTED bi� the City Council of the City of Morro Bay at a regular meeting held thereof on the 23 day of June 2008, by the following vote: AYES: Grantham, Peirce, Peters NOES: DeMeritt, Winholtz ABSENT: None •u b BAUER, CITY CLERK ® RESOLUTION NO.33-08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ESTABLISHING THE ANNUAL PROPOSITION 4 APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2008/09 THE CITY COUNCIL City of Morro Bay, California WHEREAS, Article XlHB of the California Constitution restricts the appropriation of tax proceeds that the City receives in any given fiscal year; and WHEREAS, the City has calculated the 2008/09 appropriations limit in accordance with the provisions of Article X= of the California Constitution; and WHEREAS, Proposition 111 of June 1990 requires an annual election of the methodology used in the calculation of the current year appropriations limit. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, to accept the calculation as prepared by the Finance Department and establish the fiscal year 2008/09 Appropriations Limit at ® $19,634,110. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Motto Bay, at a regular meeting thereof held on the 23 a day of June 2008, by the following vote to wit: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None 10 1paw ---�N • 11 z u� ® ¢ £ . . . . . . . . . . . QV Ga 3a ` Wa . .... ... ,. n . £ G G - - �>iS VO Q�p iS0 s b n £ £ 3 n Oz� V Q i r 'o e r z 6 r • , • • � � � , , 0P N ,NI pO P COS V • • . • . po • • • . . r p gP F c6 Cv! C O V F QQ QQQOV n Sa ��JONO Un' m _ O C G ® S L E : 2 n E Et c OL�NNLL �,-C� 0 O $3i ATTACHMENT A ►] C Cl CITY OF MORRO BAY APPROPRIATION LIMIT DOCUMENTATION FLWAL YEAR 2008/09 PROCEEDS OF TAXES CALCULATION [1] PROCEEDS TOTAL PROCEEDS OTHER THAN ESTIMATED OF TAXES TAXES REVENUES PROPERTY TAXES $ 3,500,169 $ $ 3,500,169 OTHER TAXES 3,891,375 663,000 4,554,375 PERMITS 310,030 310,030 REVENUE FROM AGENCIES STATE 971,245 971,245 STATE/COUNTY GRAMS 5,000 5,000 FEDERAL GRANTS - - USE OF MONEY & PROPERTY INTEREST 48,780 79,620 128,400 RENT 200,000 200,000 FINES & FORFIETURES 24,000 24,000 CHARGES FOR SERVICES 11,650,245 11,650,245 OTHER REVENUES 797,619 797,619 $ 8,411,569 $ 13,729,514 $ 22,141,083 APPROPRIATION LIMIT CALCULATION [z] [3) CALIFORNIA POPULATION YEAR PCPI CHANGE CHANGE LIMIT 1978-79 BASE YEAR $ 3,046,393 1979-80 10.17% 1.38% 3,402,527 1980-81 10.53% 0.26% 3,770,591 1981-82 9.12% 1.39% 4,171,660 1982-83 6.79% 2.04% 4,545,796 1983-84 2.35% 1.81% 4,736,835 1984-85 4.74% 1.75% 5,048,185 1985-86 3.74% 1.62% 5,321,826 1986-87 2.30% 4.12% 5,668,530 1987-88 3.04% 2.93% 6,011,990 1988-89 3.93% 3.83% 6,487,570 1989-90 4.98% 3.92% 7,077,629 199D-91 4.21% 4.59% 7,714,137 1991-92 4.14% 3.04% 8,277,721 1992-93 -0.64% 1.00% 8,306,991 1993-94 2.72% 1.86% 8,691,654 1994-95 0.71% 1.40% 8,875,912 1995-96 4.72% 1.60% 9,443,573 1996-97 4.67% 2.31% 10,112,922 1997-98 4.67% 2.06% 10,803,250 1998-99 4.15% 2.70% 11,555,378 1999-2000 4.53% 2.28% 12,354,234 2000-01 4.91% 2.46% 13,279,663 2001-02 7.82% 1.60% 14,547,223 2002-03 -1.27% 1.80% 14,620,998 2003-04 2.31% 1.32% 15,156,198 2004-05 3.28% 1.15% 15,833,334 2005-06 5.26% 1.19% 16,864,495 2006-07 3.96% 0.73% 17,660,315 2007-08 4.42% 0.96% 18,617,934 2008-09 4.29% -1.12% 19,634,110 PROCEEDS OF TAXES 8,411,569 PROCEEDS OF TAXES UNDER APPROPRIATION LIMIT $ 11,222,541 [1] Per City of Morro Bay 2008/09 Adopted Annual Budget [2] Per State Department of Finance (per capita personal income). [3] Per State Departrnent of Finance (population growth of City or County, whichever is greater). ATTACHMENT 8 Fiscal Year 2008-2009 E E Enclosure 11 Annual Percent Change in Population Minus Exclusions January 1, 2007 to January 1, 2008 and Total Population, January 1, 2008 Total County Percent Change — Population Minus Exclusions -- Population city 2007.2008 1.1-07 1-1-08 1.1-2008 San Luis Obispo Arroyo Grande 1.07 16.856 17.036 17,036 Atascadero 2.12 26.713 27,279 28,590 El Paso De Robles 1.06 29,505 29,818 29,934 Grover Beach 0.40 13,161 13,213 13.213 Morro Bay 0.49 10,497 10,548 10.548 Pismo Beach 0.12 8,593 8,603 8,603 San Luis Obispo 0.47 44,489 44,697 44,697 Unincorporated 1.38 108.647 110.151 116,716 County Total 1.12 258,461 261,345 269,337 (-) E)rAusions include residents on federal military installations and group Quarters' residents in state mental institutions, and state and federal correctional institutions. Page 3 ATTACHMENT C Fiscal Year 2008-2009 E May 2008 Enclosure I A. Price Factor. Article XIII B specifies that local jurisdictions select their cost -of -living factor to compute their appropriation limit by a vote of their governing body. The cost -of -living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used insetting the 2008-2009 appropriation limit is: Per Capita Personal Income Fiscal Year Percentage change (FY) over prior year 2008-2009 4.29 B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2008-2009 appropriation limit. 2008-2009: Per Capita Cost of Living Change = 4.29 percent Population Change = 1.31 percent Per Capita Cost of Living converted to a ratio: 4.29 + 100100 - 1.0429 Population converted to a ratio: 1.31+100100 = 1.0131 Calculation of factor for FY 2008-2009: 1.0429 x 1.0131 = 1.0566 Page 2 ATTACHMENT D RESOLUTION NO.32-08 RESOLUTION OF THE CITY OF MORRO BAY GRANTING A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR TAXI SERVICE THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City Council finds that Surf Cab Co. has made an application for a Certificate of Public Convenience and Necessity; and WHEREAS, the City Council has determined that Surf Cab Co. has the requisite background, experience and financial responsibility to conduct a taxicab service; and WHEREAS, the City Council has determined that public convenience and necessity require the taxicab service operating within the city limits. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay does hereby grant to Peter Mourant, owner of Surf Cab Co., a CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY contingent upon full and total compliance with all the conditions and requirements of Chapter 5.24 of the Morro Bay Municipal Code. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 23 a day of June 2008 by the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None ATTEST: Gt..w2�1/ BRIDGETIT BAUER, City Clerk APPROVED AS TO FORM: ti ROB SCHULTZ, Ci omey El RESOLUTION NO.31-08 i E RESOLUTION IDENTIFYING AND DETERMINING THAT THE MAIN/SAN JACINTO/ ALDER INTERSECTION IS A LOW PRIORITY CAPITAL E17PROVEMENT PROJECT AND SHOULD NOT BE PURSUED AT THIS TIME AND IS NOT ON ANY WORKLIST THE CITY COUNCIL, CITY OF MORRO BAY, CALIFORNIA WHEREAS, the City of Morro Bay has adopted a Circulation Element to its General Plan; and WHEREAS, said Plan identifies specific transportation -related capital improvement projects necessary to fulfill the City's future needs; and WHEREAS, certain other transportation needs have been identified since adoption of said Element; and WHEREAS, it is necessary and appropriate to prioritize projects into a coherent Capital Improvement Plan to facilitate funding and implementation; and WHEREAS, in 1999, the City of Morro Bay received a grant to perform feasibility studies for alternatives for improvements to three intersections in the community including the Main/San Jacinto/Alder intersection; and WHEREAS, in 2001, the Public Works Advisory Board considered different design alternatives for the Main/San Jacinto/Alder intersection and determined that this project was a low priority and that City should not pursue this project at this time; and WHEREAS, since 2001, the Main/San Jacinto/Alder intersection has been a low priority capital improvement project and the City has not pursued this project; and WHEREAS, on October 22, 2007 Councilmember Winholtz requested to agendize a discussion on the removal of the proposed roundabout project at San Jacinto and Highway One from the work list and Councilmember DeMeritt and Councilmember Grantham concurred; and WHEREAS, since declaring this as a future agenda item, City Staff has spent time researching City files and has determined that the Main/San Jacinto/Alder intersection project is not on any work list. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the Main/San Jacinto/Alder intersection is a low priority and that City should not pursue this project at this time nor should it be on any work list unless approved by the City Council. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 9t° day of June 2008 by the following vote: AYES: NOES: ABSENT DEMERm, GRANTHAK PEIRCE, WIN IOLTZ, PETERS NONE NoNE ATTEST: RIDGE BAUER. Citv Clerk RESOLUTION NO. 30-08 RESOLUTION RELATING TO THE CLASSIFICATION, COMPENSATION AND TERMS OF EMPLOYMENT OF FIRE EMPLOYEES OF THE CITY OF MORRO BAY THE CITY COUNCIL City of Morro Bay, California WHEREAS, in accordance with the provisions of the California Government Code Section 3500 et. seq. and Resolution No. 74-69 of the City of Morro Bay, the City's representatives have met and conferred in good faith pertaining to the subject of wages, benefits and conditions of employment with the Morro Bay Fire Fighters Association; and WHEREAS, the meetings between the Morro Bay Fire Fighters Association and the City have resulted in a mutual agreement and understanding to recommend that the employees represented by the Morro Bay Fire Fighters Association accept all of the terms and conditions as set forth in a Memorandum of Understanding, an agreement attached and made a part of this resolution herewith; and WHEREAS, the City now desires to provide said salaries, benefits and conditions to said fire employees of the City of Morro Bay. NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council does hereby approve and adopt in full the Memorandum of Understanding for the period July 1, 2007 through June 30, 2008 as attached and made a part of this resolution. BE IT FURTHER RESOLVED that the Interim City Manager is hereby authorized to execute the Memorandum of Understanding on behalf of the City. PASSED AND ADOPTED by the Morro Bay City Council at a meeting thereof held this 9`s day of June 2008 by the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None ATTEST: ® RESOLUTION NO.27-08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ESTABLISHING THE ACH DEBITS AND CREDITS LIMIT AND .TRANSACTION OFFICERS FOR DOING BUSINESS WITH RABOBANK THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay has an ongoing banking relation with Rabobank, a Dutch corporation; and WHEREAS, the City of Morro Bay wishes to enhance the efficiency, economy and effectiveness of City government operations through the use of technology; and WHEREAS, processing money transactions via electronic funds transfers and automated clearing house (ACH) methods is a paperless method of processing revenue receipts and making payments. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that: ® 1. City staff are authorized to process Automated Clearing House (ACH) debits and credits with Rabobank with a maximum transaction limit of $800,000; and 2. The following individuals are designated as transaction officers: Janice Peters Mayor Andrea Lueker Interim City Manager Susan Slayton Finance Director Joyce Bunting Accountant Laurie Goforth Lead Account Technician Cris Brazzi Account Clerk III - Confidential PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 27`s day of May 2008, by the following vote to wit: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None KE ��_ ���i Bridgett Ba r, City Clerk RESOLUTION NO. 26-08 ® A RESOLUTION APPROVING AN APPLICATION FOR FUNDING UNDER THE CALHOME PROGRAM AND AUTHORIZING THE EXECUTION OF A STANDARD AGREEMENT AND ANY AMENDMENTS THERETO AND ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE CALHOME PROGRAM WITH THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR THE PURPOSES OF THIS GRANT. THE CITY COUNCIL City of Morro Bay, California WHEREAS, the California Department of Housing and Community Development is requesting proposals from eligible small counties and cities for funding from the 2008- 2009 funding cycle of the CalHome Program; and WHEREAS, the City of Morro Bay is a local public entity organized under the laws of the State of California and is eligible to participate in the State CalHome Program; and WHEREAS, the City Council certifies that the City's citizen participation plan is in compliance with federal statute and the plan was followed in the development of the application, and ® WHEREAS, this resolution is set forth to approve an application, provide direction and authorize contract execution and any amendments thereto for funding provided by the CalHome Program; and WHEREAS, health and safety concerns arising from the substandard conditions found in the Target Areas are documented; and WHEREAS, the City Council has reviewed the grant application proposal. NOW, THEREFORE, BE IT RESOLVED as follows: The City of Morro shall submit to California State Department of Housing and Community Development (hereinafter referred to as "HCD") an application to participate in the CalHome Program in response to the NOFA issued on April 18, 2008 which will request a funding allocation for Owner -Occupied Home Rehabilitation within the City of Morro Bay. 2. If the application for funding is approved the City of Morro Bay hereby agrees to use the CalHome funds for eligible activities in the manner presented in the application as approved by HCD and in accordance with program regulations cited above. It also may execute any and all other instruments necessary or required by HCD for participation in the CalHome Program. Resolution No. 26-08 Page Two 3. The City of Morro Bay authorizes the Public Services Director to execute in the name of the City of Morro Bay, the application, the Standard Agreement, and all other documents required by HCD for participation in the CalHome Program, and any amendments thereto. PASSED AND ADOPTED by the City Council of the City of Morro Bay, this 9th day of June 2008, by the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None PETERS, MAYOR ® ATTEST: 11 RESOLUTION NO.25-08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ADOPTING AND APPROPRIATING THE OPERATING BUDGETS FOR THE 200949 BUDGET CYCLE FOR THE CITY OF MORRO BAY THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is required to appropriate and expend public funds to conduct the day-to-day business activities of the City; and WHEREAS, the Morro Bay City Council finds and determines that the appropriations are necessary for continued efficiency, economy and effectiveness of the City government operations; and WHEREAS, Section 37208 of the California Government Code provides that payments or demands conforming to an approved budget adopted by ordinance or resolution do not require audit by the City Council prior to payment; and WHEREAS, the City Council recognizes that Capital Improvement Projects authorized and approved in prior fiscal years may not be completed by June 30, 2008; and ® WHEREAS, the continuing efforts of staff to operate the business of the City within an approved budget and to create savings wherever feasible are acknowledged by the City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that: 1. The Fiscal Year 2008-00 Operating Budget is adopted as presented in the Proposed Budget and in the subsequent Amendments A, and any further amendments made at this meeting; 2. Staff is directed to prepare and publish a final budget document; 3. The City Manager is authorized to transfer appropriations within the adopted budget so long as the appropriations changes do not have a significant policy impact and total appropriations are not exceeded; 4. City Council approval is required to transfer appropriations between funds, capital projects, or capital outlay items; 5. The City Council authorizes and directs the carry forward of balances for capital projects approved in prior fiscal years, but not completed by June 30, 2008, to the Capital Improvement Project Fund(s) for the 2008-09 fiscal year; 6. The City Council directs that the hiring freeze for positions in the City workforce continue for those positions funded within the General fund, and the City Council reserves the right to review any vacancies on a case -by -case basis as to its official ® policy; and Resolution No. 25-08 ® Page Two The City Council will take action to improve the City's financial outlook for the future by restructuring the City's business model, locating and securing new revenue sources and reviewing services for possible reductions. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 27`" day of May 2008, by the following vote to wit: AYES: DeMeritt, Peirce, Peters NOES: Grantham, Winholtz ABSENT: None Bridgett Bau , City Clerk 11 E City of Morro Bay 2007/08 Budget Amendments Category Community Promotions Committee Visitor's Center Contract Services: Chamber of Commerce VCB General Fund Accumulation for VCB District Transaction Tax (Measure Q) Fire = $250,000 Police = $50,000 Storm Drain = $100,600 Streets = $100,000 Water Capital Improvement Fiscal Impact: Original Budget $103,500 $14,000 $146,515 $10,000 $0 $162,400 $1,390,000 New Budget Impact $113,500 $10,000 $160,515 $146,515 $0 ($146,515) $0 ($10,000) $32,000 $32,000 $663,000 $500,600 $1,140,000 ($250,000) $282,600 Amendment A RESOLUTION NO.24-08 Is RECYCLING RESOLUTION APPROVING AN EXTENSION OF THE GARBAGE, RECYCLING AND GREENWASTE SERVICES FRANCHISE AGREEMENT WITH MORRO BAY GARBAGE SERVICE AND APPROVING A BASE YEAR RATE ADJUSTMENT APPLICATION REQUESTING AN INCREASE TO SOLID WASTE COLLECTION RATES THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City Council adopted Resolution 48-01 approving the Garbage, Recycling and Greenwaste Services Franchise Agreement with Morro Bay Garbage Service (MBGS) for collection services effective January 1, 2002 and setting the initial rates for collection for residential and commercial customers; and WHEREAS, towards the end of 2007, the City received a letter from MBGS regarding discussion of a 15 year franchise agreement because of two significant changes, the driving one being Cold Canyon Landfill is in the planning process for an expansion project to provide an additional 30 years of future capacity, elevate the construction and demolition debris recycling line and improve the public recycling area, and the second change relating to more frequent demand for green waste deliveries to the City's Wastewater Treatment Plant for its composting program; and WHEREAS, financing of the landfill project is being pursued by Waste Connections, owner of Morro Bay Garbage Service and Cold Canyon Landfill, and the lending institution wants to see long-term franchise agreements showing that tonnage is committed so there is a ® guarantee that repayment of the loan can be made; and WHEREAS, a longer term agreement would spread the cost of repayment out over time and help to keep costs down during the long term, which results in lower future rate adjustment requests; and WHEREAS, since the City changed to waste wheelers, commingled collection and a single contract in 2002 the City does not need to make any changes to its garbage, recycling and greenwaste program; and WHEREAS, other agencies within the county have already executed a 15 year agreement with the garbage company; and WHEREAS, on March 6, 2008, MBGS Controller Tom Martin submitted a base year rate adjustment application in conformance with the franchise agreement and rate setting manual requesting a 5.58% increase to solid waste collection rates or a 4.62% increase to solid waste collection rates if the City Council adopted a 15 year agreement; and WHEREAS, pursuant to Article 8.4, the City uses the guidelines and approach outlined in the City of San Luis Obispo's "Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates"; and WHEREAS, the Finance Director has reviewed the rate adjustment application and finds the calculation to be reasonable and acceptable in accordance with past practices. u Resolution No. 24-N ® Page Two NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Morro Bay the approval of a 15-year extension of the Garbage, Recycling and Greenwaste Services Franchise Agreement. BE IT FURTHER RESOLVED, by the City Council of the City of Morro Bay that the franchise agreement is hereby amended to include the addition of two provisions relating to more frequent Geenwaste deliveries to the City's Wastewater Treatment Plan for its composting program and an annual Consumer's Price Index adjustment to the Recycling Development Program and Administration fee. BE IT FURTHER RESOLVED, by the City Council of the City of Morro Bay the approval of the Morro Bay Garbage Service's Base Year Rate Adjustment Application to increase the solid waste collection rates by 4.62% as outlined in Exhibit A. BE IT FURTHER RESOLVED, by the City Council of the City of Morro Bay the increased solid waste collection rates will become effective July 1, 2008. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 27th day of May 2008 by the following vote: AYES: DeMeritt, Grantham, Peirce, ® NOES: None ABSENT: None ATTEST: 1M , � 10 i., , L] Winholtz, Peters Exhibit A ® GTY OF MORRO BAY SINGLE FAMILY and MULTIUNIT RESIDENTIAL (4 units or less) VOLUME -BASED RATES MINI -CAN SERVICE E8.58 per north for one 19 gallon wastewheeler container collected once each week ECONOMY RATE E13.69 per month for one 32 gallon wastewheeler container collected once each week STANDARD RATE E27.38 per month for one 84 gallon wastewheeler container collected once each week PREMIUM RATE E41.07 per north for one 98 gallon wastewheeer container collected once each week SERVICE AWAY FROM THE STREET CURB E7.48 per month In addition to above service level for each service requested (garbage,reeyegnlg, greenwaste) EXTRACHARGES E8.83 EXTRA GARBAGE amixnal charge per 33 (pion can or equivalent wkime per oorecion (minimum 1 can) E8.83 OVERFILLED WASTE WHEELER UD MUST BE FLAT E3.42 EXTRA RECYCLING aciftonal charge per 33 gallon can w epui+elem wNnre per co0actrm(minimum I an) $3.42 EXTRA GREENWASTE adibmal charge per 33 pawn an cr equivabm vokirne per ootect on Imummrm 1 an) $24.89 SWITCH WASTE WHEELER SIZES MORE THAN ONCE PER 12 MONTHS $43.55 per white good, couch, or hide -abed (once a month) ® $12.45 per mattress, boxspring, or small chair, TV, microwave Proposed Rate Schedule for Integrated Solid Waste Services effective 7.1-2008 E, E GTY OF MORRO BAY Exhibit A 4.62% AVERAGE ACROSS THE BOARD INCREASE -COMMERCIAL FOR INTEGRATED SOLID WASTE ACTIVITIES EFFECTIVE 7-1-2008 COMMERCIAL WASTE WHEELERS (PER MONTH) size of COLLECTIONS PER WEEK. WIN 1 2 3 4 5 6 7 32 GALLON $28.27 555.19 572.18 $89.19 $116.11 $143.03 $170.47 64 GALLON $41.03 $72.18 $104.78 $141.59 $177.02 $206.76 $243.51 96 GALLON $55.191 $96.251 $141.591 $188.351 $229.431 S280.411 $338.35 Additional charge per can per collection: COMMERCIAL DUMPSTER CONTAINERS ER MONTH) Sae of container COLLECTIONS PER WEEK (cubicyards) 1 2 3 4 5 6 7 1 $69.621 $107.87 1 E139.02 $174.44 $201.37 E250.93 $379.11 1.5 $85.19 $140.46 $1 B8.63 E239.63 $287.79 $U3.04 $503.24 2 $102.21 $178.69 $239.63 $304.78 $372.78 E440.77 $633.01 3 $131.971 $239.53 $337.37 $428.021 $554.11 1 $639.091 $863.39 4 $174.441 $324.61 1 $450.681 $602.281 $753.84 1 $&53.001 $1.109.33 The rates shovm above include the mominly container rental fee and are the same for bins and garwoods, when volume is identical UNSCHEDULED EXTRA COLLECTIONS FOR COMMERCIAL CUSTOMERS $17.94 1 cubic yard (minimum charge) Proposed Rate Schedule for Integrated Solid Waste Services effective 7-1-2W8 $26.93 1.5 cubic yards E35.90 2 cubic yards 553.83 3 cubic yards E71.77 4 cubic yards Exhibit A ® GTY OF MORRO BAY RATE SCHEDULE FOR COMMERCIAL RECYCLING ACTIVITIES IF YOU RECYCLE TWO CUBIC YARDS OR LESS (ABOUT THE SAME AS TWELVE 33 GALLON TRASH CANS) ONE TIME PER WEEK THERE IS NO CHARGE FOR THE RECYCLING COLLECTION. EVERY COMMERCIAL CUSTOMER IS ENTITLED TO RECEIVE A 96 GALLON BLUE WASTE WHEELER FOR RECYCLING. A 96 GALLON WASTE WHEELER IS 12 OF YARD. IF YOU WANT ADDITIONAL CONTAINERS FOR RECYCLING THERE IS A CHARGE. IF YOU WANT MORE THAN ONE TIME PER WEEK SERVICE, YOU CAN FIND THE CHARGE BY LOOKING AT THE TABLE BELOW. IF YOU HAVE THREE CUBIC YARDS PICKED UP TWICE PER WEEK THE CHARGE IS $55.81. THE TWO FREE YARDS ARE BUILT INTO THE TABLE, DO NOT SUBTRACT THEM FROM YOUR THREE CUBIC YARDS. IF YOU HAVE ANY QUESTIONS ABOUT WHAT YOUR CHARGES SHOULD BE CALL THE OFFICE. COMMINGLED RECYCLING & CARDBOARD COLLECTION AT 26% OF GARBAGE RATES COMMERCIAL DUMPSTER CONTAINERS (PER MONTH) Sae of container COLLECTIONS PER WEEK (cubic s 1 2 3 4 5 6 7 1 INCLUDED' $26.97 1 $34.751 $43.62 s5o.341 $62.731 $94.78 1.5 INCLUDED' $95.12 547.16 $59.91 $71.95 585.76 1125.112 2 INCLUDED' 544.87 $59.91 $76.19 $93.20 E110.20 $158.26 3 INCLUDEW $59.91 $84.341 $107.01 1 $138.531 $159.781 $215.85 4 INCLUDED' $81.151 $112.681 $150.571 $188.48 $21325 $277.34 The rates shown above include the monthly container rental fee and are the same for bins and garwoods, when volume is identical. There Is a $5.93 per month rental fee if you want a blue steel bin The $5.93 fee is waived once you begin paying for the pickup service. WHITE OFFICE PAPER COLLECTION White office paper can be commingled with other recycling in your blue waste wheeler. In office collection of whiteleolored paper is available at $51.25 per hour STYROFOAM COLLECTION Styrofoam is w longer collected for recycling. It should be thrown away as trash. Proposed Rate Schedule for Integrated Solid Waste Services effective 7.1-200S RESOLUTION NO.23-08 A RESOLUTION OF THE CITY COUNCIL DECLARING THE CITY'S INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR THE MAINTENANCE OF THE CLOISTERS PARK AND OPEN SPACE THE CITY COUNCIL City of Morro Bay, California WHEREAS, all property owners of the Cloisters subdivision requested the City of Morro Bay form a maintenance assessment district to fund the maintenance of the Cloisters Park and Open Space; and WHEREAS, the Landscaping and Lighting Act of 1972 (the "Act") enables the City to form assessment districts for the purpose of maintaining public improvements; and WHEREAS, pursuant to Section 22623 of the Act, the Engineer has filed in the Office of the City Clerk, and submitted for review to the City Council, a report entitled "Engineers Report - Cloisters Landscaping and Lighting Maintenance Assessment District", May 22, 2008, prepared in accordance with Article 4 of the Act, commencing with Section 22565; and WHEREAS, pursuant to Section 22608.2 of the Act, the subdivider(s) were required by ® City Ordinance to install improvements for which an assessment district was required in order to assure continued and uninterrupted maintenance of the Cloisters Park and Open Space; and WHEREAS, pursuant to the intent of Article JffII, Section 4, of the California Constitution, the property owners have elected to form the Cloisters Landscaping and Lighting Maintenance Assessment District. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that it is the intent of the Council to order the annual levy and collection of assessments for the Cloisters Landscaping and Lighting Maintenance Assessment District generally located as shown in Exhibit "A" attached hereto at a public hearing to be held June 23, 2008 at 6:00 p.m. in the Veteran's Memorial Building, 209 Surf Street, Morro Bay, CA. BE IT FURTHER RESOLVED by the City Council the improvements to be maintained at the Cloisters Park and Open Space are specified in the Engineer's Report dated May 22, 2008, which is hereby approved. BE IT FINALLY RESOLVED by the City Council the assessment upon assessable lots within the district is proposed to total $148,944 or $1,241.20 per assessable parcel for fiscal year 2008-2009. RESOLUTION 23-08 PAGE 2 ® PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 27'h day of May, 2008 by the following roll call vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None ATTEST: E El ® Attachment A CLOISTERS PARK AND OPEN SPACE MAINTENANCE TASKS ROUTINE MAINTENANCE TASKS Review for vandalism/repair Outdoor Pick-up ♦ trash ♦ paper ♦ cigarette butts Empty ♦ 6 trash cans Clean ♦ 7tables ♦ 2 drinking fountains Check ♦ 5 interpretive panels ♦ 2 barbeques ♦ bike paths . ♦ walkways ♦ 2 bridges ♦ ♦ 2 coastal access ways 1 observation pier ♦ I bike rack ♦ 2 play apparatus ♦ 25 light bollards ♦ play area surface ♦ 1 demonstration garden Clean ♦ 3 toilets ♦ 1 urinal ♦ 2 sinks ♦ restroom floors/walls ♦ 18 benches ♦ restock restrooms WEEKLY OR AS NEEDED Mow turf Edge turf Remove weeds from demonstration garden, medians, planters Trim turf around trees, posts and other hard to reach areas Check and replace failed lamps Blow all walkways, observation deck and parking lot ® Cloister Mairde=ce Tasks Page 2 BI-WEEKLY OR AS NEEDED Rakelredistribute gravel under picnic tables and benches Empty barbeques of ashes Litter pick-up open space area MONTHLY OR AS NEEDED Check new trees and plantings Check/repair sprinkler system Trim trees and bushes as needed Critical parts inspection New plantings BI-ANNUALLY OR AS NEEDED Fertilize turf/planter areas Paint restrooms, structures, signs, etc. Seed and aerate turf areas ANNUALLY OR AS NEEDED ® General safety inspection Annual tree pruning AS NEEDED Remove graffiti Pest/gopher control Trim and spray paths Mow open space area Wetland observation/maintenance U/w/cloisteWcl tstnmum•sks ® Attachment B CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT MAY 2008 NAME: Cloisters Landscaping and Lighting Maintenance Assessment District DIAGRAM: Attached PLANS AND SPECIFICATIONS: Attached. No bonds or notes will be issued for this Maintenance Assessment District. ESTIMATED COST OF MAINTENANCE: The following outlines the estimated budget for the maintenance of the Cloisters Park and Open Space for fiscal year 2008/09. Personnel Services $100,308.00 Includes all daily and routine tasks as well as non -routine maintenance and repair costs. 0 Supplies $ 8,850.00 Includes all supplies used in daily tasks as well as non - routine repair and maintenance. Services $ 39,786.00 Includes utilities, engineering, insurance, and structural repair. Total Assessment Estimate $148,944.00 Per Parcel Yearly Assessment $148,944/120 parcels . $ 1,241.20 c.w.cauvcil.doengos El ® RESOLUTION NO.22-08 A RESOLUTION OF THE CITY COUNCIL DECLARING THE CITY'S INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR THE MAINTENANCE OF THE NORTH POINT NATURAL AREA THE CITY COUNCIL City of Morro Bay, California WHEREAS, all property owners of the North Point subdivision requested the City of Morro Bay form a maintenance assessment district to fund the maintenance of the North Point Natural Area; and WHEREAS, the Landscaping and Lighting Act of 1972 (the "Act") enables the City to form assessment districts for the purpose of maintaining public improvements; and WHEREAS, pursuant to Section 22623 of the Act, the Engineer has filed in the Office of the City Clerk, and submitted for review to the City Council, a report entitled "Engineers Report North Point Natural Area Landscaping and Lighting Maintenance Assessment", dated May 22, 2608, prepared in accordance with Article 4 of the Act, commencing with Section 22565; and ® WHEREAS, pursuant to Section 22608.2 of the Act, the subdivider(s) were required by City ordinance to install improvements for which an assessment district was required in order to assure continued and uninterrupted maintenance of the North Point Natural Area; and WHEREAS; pursuant to the intent of Article M, Section 4, of the California Constitution, the' property owners have elected to form the North Point Natural Area Landscaping and Lighting Maintenance Assessment District. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that it is the intent of the Council to order the annual levy and collection of assessments for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District generally located as shown in Exhibit "A" attached hereto at a public hearing to be held June 23, 2008 at 6:00 p.m. in the Veteran's Memorial Building, 209 Surf Street, Morro Bay, CA. BE IT FURTHER RESOLVED by the City Council the improvements to be maintained at the North Point Natural Area are specified in the Engineer's Report dated May 22, 2008 which is hereby approved. BE IT FINALLY RESOLVED by the City Council the assessment upon assessable lots within the district is proposed to total $5,645 or $564.50 per assessable parcel for fiscal year 2008-2009. n LJ RESOLUTION 22-08 PAGE 2 ® PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 27'h of May, 2008 by the following roll call vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None ATTEST: 11 0 Attachment A NORTH POINT NATURAL AREA MAINTENANCE TASKS Routine Maintenance Tasks Review for vandalism/repair Pick-up - paper trash cigarette butts Empty - trash cans Clean- benches Check - fencing beach access stairway bike rack fights planting hillside, erosion Weekly or as needed Blow paths, parking lot Monthly or as needed Check trees Check/repair sprinkler system Trim trees and bushes as needed Critical parts inspections Annually or as needed Paint beach access stairway, public access signage New plantings (replacement) General safety inspection Annual tree pruning Remove graffiti Mow open space Pest/gopher control Trim and spray paths Repair public access signage ® Attachment B NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT MAY 2008 NAME: North Point Natural Area Landscaping and Lighting Maintenance Assessment District DIAGRAM: Attached PLANS AND SPECIFICATIONS: Attached. No bonds or notes will be issued for this Maintenance Assessment District. ESTIMATED COST OF MAINTENANCE: The following outlines the estimated budget for the maintenance of the North Point Natural Area for fiscal year 2008/09 Personnel Services $4,800.00 Includes all daily and routine tasks as well as non -routine maintenance and repair costs Su lies $ 200.00 Includes trash liners, round -up and all other supplies used in daily tasks as well as non -routine repair and maintenance. Services $ 645.00 Includes utilities, engineering, insurance, and structural repair to stairway and other structures. Total Assessment Estimate $51645.00 Per Parcel Yearly Assessment $5,645.00/10 parcels $ 564.50 c.w.councfl.mpteng08 RESOLUTION NO. 21-08 ® RESOLUTION OF INTENTION TO ABANDON A PORTION OF THE PALM AVENUE RIGHT-OF-WAY THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Planning Commission conducted a regular public hearing on February 4, 2008, for the purpose of making a General Plan determination and formulating a recommendation to the City Council on a request for abandonment of excess right-of-way for a portion of Palm Avenue; WHEREAS, research of the title report shows that the City of Morro Bay does not have fee ownership of land underlying the Street rights -of -way; and WHEREAS, the Planning Commission found that the proposed rights -of -way abandonment is consistent with the City's General Plan, and recommended that the City Council approve the abandonment, based on findings and subject to conditions as indicated in the Planning Commission Resolution, incorporated herein by reference; WHEREAS, the City Council of the City of Morro Bay conducted a public meeting at 209 Surf Street, Morro Bay, California, on May 12, 2008, pursuant to a proceeding instituted under application E00-000-042, Richard T. & Laura Fariss, Donald R. & Sheri Hudson, Raymond A. Herman, and ® Kathleen S. Zarit, applicants; and BE IT RESOLVED, by the City Council of the City of Morro Bay as follows: SECTION 1. Action- Intention to Abandon. It is the intention of the City of Morro Bay to abandon a portion Palm Avenue as shown on the map marked Exhibit A, on file in the office of the City.Clerk, pursuant to Section 8300 et seq. of the State of California Streets and Highways Code, and that the abandonment shall be based on the following findings, and subject to the following conditions: Findings 1. The proposed right of way abandonment is consistent with the General Plan because they are no longer needed for present or future public purposes. Development of the rights -of -way as public streets would not serve any reasonable public purpose since those properties fronting the rights -of -way gain access from other improved streets, and there are no existing infrastructure improvements within the areas to be abandoned. 3. The abandonment of rights -of -way will benefit the general public by eliminating unused right-of- way and eliminating the City's costs for maintaining additional infrastructure improvements. 4. The proposed abandonment of rights -of -way are categorically exempt from environmental review under Section 15301 of the California Environmental Quality Act. Resolution No. 21-08 ® Page Two Conditions 1. Prior to the recordation of the final abandonment resolution, the existing street entrance at Main Street be removed and replaced with City standard driveway approach and signed as a private drive. 2. Reservation of a 20-foot wide, Emergency Access and Common Driveway Easement; and a 15-foot wide public sewer easement shall be part of the abandonment. 3. Reservation of a public utility easement to the satisfaction of the various public utilities. 4. Applicant to submit a landscape plan that incorporates drought tolerant plantings, prior to final abandonment. 5. Recordation of a deed restriction fixing setbacks for the affected properties at the location prior to the abandonment. SECTION 2. The proposed abandonment includes all of Palm Avenue, Northerly of the Northerly sideline of Main Street and South of the South sideline of Walnut Street. Copies of the ® map showing the particulars of the proposed abandonment are on file in the office of the City Engineer, at 990 Shasta Avenue. SECTION 3. Monday, June 9, 2008 at 7:00 p.m. in the Veteran's Memorial Building, 209 Surf Street, Morro Bay, California is the time and place set for hearing all persons interested in or objecting to the proposed abandonment. SECTION 4. This resolution, together with the ayes and noes, shall be published once in full at least ten (10) days before the public hearing on the proposed street rights -of -way abandonment a newspaper published and circulated in this city. SECTION 5. The City Engineer shall post at least three (3) notices of the proposed abandonment in prominent locations near the portion of the street rights -of -way to be abandoned at least fourteen (14) days before the date set for the hearing in accordance with Section 8322 of the Streets and Highways Code. SECTION 6. The City Engineer shall notify utility companies affected by the proposed abandonment within ten (10) days after adoption of the Resolution of Intention in accordance with Section 8347 of the Streets and Highways code. u E Resolution No. 21-08 Page Three PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting . on the 12th day of May 2008, by the following vote. AYES: IGrantham, Peirce, Winholtz, Peters NOES: DeMeritt ABSENT: or\¢, ABSTAIN: 0rt1, ATTEST: BRIDGET BAUER, City Clerk ® RESOLUTION NO.20-08 RESOLUTION OF THE CITY OF MORRO BAY, INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972" (STREETS AND HIGHWAYS SECTION 22500 ET SEQ.) THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City has placed certain conditions on the development of Tract 21 10ANorth Point, @ requiring formation of a property Landscaping and Lighting Maintenance Assessment District encompassing and coterminous with the proposed subdivision to provide for the maintenance of a natural area, parking lot, landscaping, decomposed granite and asphalt walkways, and coastal access stairway and other common area improvements to be held by or dedicated to the City of Morro Bay as required by the Morro Bay Municipal Code 16.16.030; and, WHEREAS, these conditions are more specifically identified in the Precise Plan (condition F1-F7); and, ® WHEREAS, the Owners of the real property within the proposed district consented to the formation of the district pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Section 22608.2 et seq.), and are the only owners of property to be subject to assessments within the district; and, WHEREAS, the Owners of real property within the proposed district offered in fee and in perpetuity, Lot 11 of Tract 2110, and the City has agreed to said Offer of Dedication, provided that the cost of maintenance of thereof is borne by an assessment district as required by the Conditions of Approval of the project; and, WHEREAS, one hundred percent (1001/6) of the property owners approved formation ofthe District to assure conformance with the recently enacted ARight to Vote on Taxes Act@ (Proposition 218, California Constitution Act X11, C & D). NOW THEREFORE, BE IT RESOLVED by the City Council of the City ofMorro Bay as follows: The City Council of the City of Morro Bay hereby declares its intent to initiate the proceedings to levy and collect assessments pursuant to the ALandscaping and Lighting Act of 1972". (Streets and I-Iighways Code Sections 22500 et seq.) ® Resolution No. 20-08 Page 2 2. The improvements to be subject to assessment for maintenance by such District shall include those enumerated in the conditions of project approval and in Streets and High ways Code Section 22525 which are installed by the developer as a condition of approval of Tract 2110 or which are hereafter installed by developer; pursuant to the Final Improvement Plans for the North Point Project as approved by the City. 3. The Assessment District is a District located in the City of Morro Bay, County of San Luis Obispo. A map showing the boundaries of the proposed District is attached as Exhibit AA@ which is hereby incorporated herein. 4. An Engineer—s Report will be prepared for consideration at the May 27, 2008 City Council meeting. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 28`" day of April, 2008 by the following roll call vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ® ABSENT: None ATTEST: f F ® RESOLUTION NO.19-08 RESOLUTION OF THE CITY OF MORRO BAY, INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT PURSUANT TO THE ALANDSCAPING AND LIGHTING ACT OF 1972" (STREETS AND HIGHWAYS SECTION 22500 ET SEQ.) THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City Council has placed certain conditions on the development of Tract 1996, AThe Cloisters,@ requiring formation of a property Maintenance Assessment District encompassing and coterminous with the proposed subdivision to provide for the maintenance of a public park, bicycle pathway, right-of-way landscaping, coastal access ways, ESH restoration area, and other common area improvements to be held by or dedicated to the City of Morro Bay as required by City Ordinance; and, WHEREAS, these conditions are more specifically identified in Vesting Tentative Tract Map (condition l0e) and Precise Plan (condition 2c) as required by City Ordinance; and, is writing the Owners of the real property within the proposed district have consented in writing to the formation of the district pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Section 22500 et seq.), and are the only owners of property to be subject to assessments within the district; and, WHEREAS, the Owners of real property within the proposed district have offered to dedicate in fee and in perpetuity, Lot 121 (Parcel 1) and Lot 122 of Tract 1996, and the City has agreed to accept said Offer of Dedication, provided that the cost of maintenance of thereof shall be borne by an assessment district as required by the Conditions of Approval of the project; and, WHEREAS, one hundred percent (100%) of the property owners approved formation ofthe district to assure conformance with the recently enacted ARight to Vote on Taxes Act@ (Proposition 218, California Constitution Act XM C & D). NOW, THEREFORE, BE IT RESOLVED by the City Council ofthe City ofMorro Bay as follows: The City Council of the City of Morro Bay hereby declares its intent to initiate the proceedings to levy and collect assessments pursuant to the ALandscaping and Lighting Act of 1972". (Streets and Highways Code Sections 22500 et seq.) ® Resolution No. 19-08 Page 2 1. The improvements to be subject to assessment for maintenance by such District shall include those enumerated in the conditions of project approval and in Streets and Highways Code Section 22525 which are installed by the developer as a condition of approval of Tract 1996 or which are hereafter installed by developer; pursuant to the Final Improvement Plans for the Cloisters Project as approved by the City. 2. The Assessment District is a District located in the City of Morro Bay, County of San Luis Obispo. A map showing the boundaries of the proposed District is attached as Exhibit AA@ which is hereby incorporated herein. 3. An Engineer—s Report will be prepared for consideration at the May 27, 2008 City Council meeting. 4. This District shall be called the ACloisters Landscaping and Lighting Maintenance Assessment District@. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 28`s day of April, 2008 by the following roll call vote: ® AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None ATTEST: BRUDGETVBAUER CITY CLERK E ® RESOLUTION NO.18-08 El ADOPTING AN AMENDMENT TO THE MASTER FEE SCHEDULE FOR HARBOR DEPARTMENT FEES AND SERVICES CHARGES THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City Council has reviewed a report on current Harbor Department fees and services charges and cost of living increases since those fees and charges were last increased; and WHEREAS, the City Council of the City of Morro Bay finds it appropriate to increase Harbor Department fees and charges commensurate with increases in the cost of living index. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the Harbor Department Section of the Morro Bay Master Fee Schedule, attached, is hereby amended effective July 1, 2008. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 14`s day of April 2008, by the following vote: AYES: DeMeritt, Peirce, Peters NOES: Grantham, Winholtz ABSENT: None atika/ BRIDGET AVER, CITY CLERK PETERS, Iy1AYOR NO O < .2 v ® O m N m H co o G) D ce m N 2 O z1>>0-u 0 00 T o o o o m- - o O CD ��-'m.-' ���m m �3inin�d� l< »xx aEs53 0 K�:co cn o cn �(o(Q D o m _3 N 0 00 00 3 O 0 N = N CD O �• a o »� 0 1 1 °: CD � M. a n (o (o I m l 1 K ED T d 0 D 0 (n Cl) 0)a) ma0DDOaK 31CD ICD fD�rm Cr N (D (D N 1 0 1 O CD N N 0 0 x 00 a O N l N co N 7 I I o NW 8 _ T_ N �< N 3 a N N (DO �D)] N� C O 3 (D 7 (D (A S Tz CDCp W 1 1 K C y -O 0 �< CD O CD-n D) co K 1. (D O� N p) N 7 (D = O» N CD CD = 'G O m D CD N °" O a (D D) M.c m Doi N o (°000 �$ -� , O CD m » CD CD < a) "0 y O O O CD ® m � I (D o � m l< a I � 0 O CD CD CD N m O O 69 EA 69 CA J 69 A fA A 69 EA EA V CA N � O fA (0 CA 69 CA (A W (A 0)0)000N W ODAV N OOO W 0-1 W N O� O� 0 0 O O O C J l " W � O C b W V CnO (T O �I00 000 O -I O -I OO CT O CD 2su n m DO) a m (D OX TTo 0 CD aCo(D m 0 0 (o ;& 0 CD m a c N 3 C K E CY � 77 1-1 . > > e > m - » K )k CD 0 kM § . 2 zz m § $o r / C \ - < 2 E \ or �§ $ > mm f moo - / > cU \ ƒ7M.% / k§§ L §� (a co Mos°q \A / E E ,E2(/ƒg&&&R=Or(D < CD0) iXccc »2/¥ / { { m CD CD ;w CDUmm %/m* \A [ / \ § {�\/ƒ(\(� (k\k CD 3 e m 0CD%< w: ® 0< w n , _ ���CD ° ee9 Cl.] k § / /j /[/# CD E CD 0 Z CD \ fDCD § Dw § $ / % CD0 0$ k C. / } ( \ ! 3 e i >§ , D (n J 0 § 1 > . C7 ; » } \ / $ �0])o ) § r ' K2�°o \— 2g8?§ \ / G■ Eca - km c 0 CD CD CD \ ( \ CD OL CD /\ §§$\7§-4r7\ $ §§ 0#§ mkLna000 ® RESOLUTION NO. 17-08 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA DETERMINING THE INDUSTRIAL DISABILITY OF LOCAL FIRE SAFETY MEMER, PAUL DEIS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay (hereinafter referred to as Agency) is a contracting agency of the Public Employees' Retirement System; and WHEREAS, the Public Employee's Retirement Law requires that a contracting agency determine whether an employee of such agency in employment in which he was classified as a local safety member is disabled for purposes_ of the Public Employees' Retirement Law and whether such disability is "industrial" within the meaning of such Law; and WHEREAS, an application for disability retirement of Paul Deis, previously. employed by the Agency in the position of Fire Engineer has been filed with the Public Employees' Retirement System; and ® WHEREAS, the City Council has delegated to the City Manager the authority to make determinations under Section 21173 and 21153.(formerly 21023(c),), Government Code, on behalf of the City of Morro Bay; and NOW, THEREFORE, BE IT RESOLVED that the City Council hereby accepts the attached Determination of Industrial Disability by its authorized delegate, and includes said determination of Industrial Disability as part of this Resolution by reference PASSED AND ADOPTED as a resolution of the Morro Bay City Council at a meeting held this 24's day of March, 2008 by the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None J/&ICE PETERS, Mayor ATTEST: t. --yalim RESOLUTION NO. 16-08 ® A RESOLUTION APPROVING AN APPLICATION AND CONTRACT EXECUTION FOR FUNDING FROM THE GENERAL ALLOCATION OF THE 'STATE OF CALIFORNIA COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM AND AUTHORIZING THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO WITH THE STATE OF CALIFORNIA FOR THE PURPOSES OF THIS GRANT. THE CITY COUNCIL City of Morro Bay, California WHEREAS, the California Department of Housing and Community Development is requesting proposals from eligible small counties and cities for funding from the 2008-2009 funding cycle of the Community Development Block Grant (CDBG) Programs; and WHEREAS, the City of Morro Bay is a local public entity organized under the laws of the State of California and is eligible to participate in the State CDBG Program; and WHEREAS, the City Council certifies that the City's citizen participation plan is ® in compliance with federal statute and the plan was followed in the development of the application, and WHEREAS, this resolution is set forth to approve an application, provide direction and authorize contract execution and any amendments thereto for funding provided by the State Community Development Block Grant Program (CDBG); and WHEREAS, health and safety concerns arising from the substandard conditions found in the Target Areas are documented; and WHEREAS, the City Council has reviewed the grant application proposal. NOW, THEREFORE, BE IT RESOLVED as follows: 1. The City Council has reviewed and approves the application for $500,000 for a Housing Rehabilitation Program under the General Allocation of the CDBG Program affecting Census Tract 105, Block Groups 2, 3 and 5, and Census Tract 106, Block Group 5 and hereby approves the application for submittal. a. Housing Rehabilitation b. General Administration c. Activity Delivery Total E $367,500 $ 37,500 9$ 5.000 $500,000 ® 2. The City Council approves the local contributions as outlined in the approved application set forth therein, in the amount of $38,500. This contribution will be made in the form of either cash, in -kind staff for General Administration and Activity Delivery, or fee waivers to the program. 3. The City Council has determined that federal citizen participation requirements were met during the development of this application. 4. If the application is approved, the Public Services Director is authorized to enter into and sign the grant agreement and any subsequent amendments with the State of California for the purposes of this grant and to perform any and all responsibilities in relationship to the approved Agreement, including preparing, signing, and transmitting reports, requests for funds and any other required administrative documentation. 5. The City of Morro Bay hereby certifies that all uses of the funds will be in compliance with CDBG regulations, the guidelines thereto, and the standard agreement governing the use of program funds. PASSED AND ADOPTED by the City Council of the City of Morro Bay, this 24th day of March 2008, by the following vote: ® AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None ATTEST: RESOLUTION NO. 15-08 ® A RESOLUTION OF THE CITY COUNCIL AUTHORIZING ADOPTION OF THE CHILDREN'S OUTDOOR BILL OF RIGHTS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Governor of the State of California on July 7, 2007 issued a Proclamation recognizing the Children's Outdoor Bill of Rights; and WHEREAS, spending time in the great outdoors can be a wonderful experience for all ages, and this especially true for youth; and WHEREAS, participating in outdoor activities is not only an enjoyable way for kids to get exercise they need, it also helps them develop a greater appreciation for our magnificent environment, and WHEREAS, with recent concerns about youth detachment from outdoor activities, lack of physical exercise, childhood obesity and increased health risks, recommending a list of experiences every child in California would benefit from, and ® WHEREAS, this Bill of Rights provides that every child between the ages of four and fourteen should have the opportunity to discover California's past, splash in the water, play in a safe place, camp under the stars, explore nature, learn to swim, play on a team, follow a trail, catch a fish, celebrate their heritage. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay hereby: Authorizes adoption of the "Children's Outdoor Bill of Rights" and encourages children's participation in outdoor activities during the summer months. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 10'" day of March, 2008 by the following roll call vote: AYES: DeMeritt, Grantham, Peirce, Winholtz NOES: None ABSENT: Peters ATTEST: RICKG VICE -MAYOR Alft BRIM-GETOBAtM ® RESOLUTION NO.14-08 RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL, CITY OF MORRO BAY THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Public Employee's Retirement Law permits the participation of public agencies and their employees in the Public Employees' Retirement System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said Law; and WHEREAS, one of the steps in the procedure to amend this contract is the adoption by the governing body of the public agency of a resolution giving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the change of the proposed in said contract; and WHEREAS, the following is a statement of the proposed change: ® To provide Section 21574 (Fourth Level of 1959 Survivor Benefits) for local police members. NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency does hereby give notice of intention to approve an amendment to the contract between said public agency and the Board of Administration of the Public Employee's Retirement System a copy of said amendment begin attached hereto, as an "Exhibit" and by this reference made a part hereof. PASSED AND ADOPTED as a resolution of the Morro Bay City Council at a meeting held this 10a' day of March 2008 by the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz NOES: None ABSENT: Peters A CK GRANTHAM, Vice Mayor ATTEST Ah BRIDGETTfPAUEA, ® RESOLUTION NO.13-08 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, AUTHORIZING THE MID -YEAR 2007/08 AMENDMENTS TO THE CITY'S OPERATING AND CAPITAL IMPROVEMENT BUDGETS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is required to appropriate and expend public funds to conduct its day-to-day business activities; and WHEREAS, the City Council adopted the original Operating and Capital Improvement Budgets on May 29, 2007 by Resolution No. 31-07; and WHEREAS, the City Council deems it necessary to amend said budgets. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the operating budgets of the City of Morro Bay are amended by additional revenues and appropriations as show on the attached schedule. ® PASSED AND ADOPTED b� the City Council of the City of Morro Bay at a regular meeting thereof held on the 24 day of March 2008, by the following vote: AYES: Councilmember Grantham, Councilmember Peirce, Mayor Peters NOES: Councilmember DeMeritt, Councilmember Winholtz ABSENT: None ATTEST: BRIDGETV BAUER, City Clerk C� CITY OF MORRO BAY MID -YEAR ADJUSTMENTS For the 2007108 Rsm1 rear ® FUND/ACCOUNT NUMBER/OESCRIVTION INCREASE DECREASE JUSTIFICATION GENERAL RIND: Revenues Projections from county are higher than amount Finance 001-3510-3011 Property tax, current secured $ 220,000 $ budgeted Finance 001-3510-3061 Transfer tax (20,000) Actuals are Predicted to be lower than budgeted Finance 001-3510-3101 Business license tax 30,000 Actuate are performing higher than budgeted Five 001421G-3426 Plan check fees (10,000) Reduced activity Fire 0014210-3472 Other fire 55,0% Increased mutual aid responses Public Services 001-5205-3426 Plan check fees - (50AOm) Reduced activity , Public Services 001-5205-3427 Building inspection fees (70,000) Reduced activity Subtotal revenues f 30SA96 ! (150,000) Total iuiease(decrease) in menues $ 155,096 ExoendRures City Manager 001-31104110 Regular pay f - 185,000 Move Personnel budget out 001-31104910 Benefits 75,000 Move Personnel budget out Charge portion of administrative analysts salary to 001-31IG4999 labor applied 25,650 Transit 001-31IG-6106 Contract services (1,875) Share of CIS cost 001-3110-6305 Disposal (700) Budget moved from 001-7220-6305 Personnel 001-31404110 Regular pay (185,000) Relocate Personnel budget 001-31404910 Benefits (75,000) Relocate Personnel budget Adjust regular pay for 3% increase and City Attorney 001-32104110 Regular pay (35A00) underbudgeting Finance 001-35104110 Regular pay (43A00) 3% salary iocreease + merit ® Cost increase due to more stringent audit 001-3510-6103 Financial audits (20,000) regulations 001-3510-6305 Disposal (400) Budget moved from 001-7220-6305 Information Svcs 001-35204110 Regular pay (7,500) 3% salary increase Police 0014110-6305 Disposal (1A00) Budget moved from 001-72206305 0014110-6106 Contract services (1,875) Share of GIS cost Fire 00142204110 Regular pay (14,000) Adjust budget to reflect actual costs incurred 00142204120 Overtime (27,(M) Adjust budget to reflect actual costs inured 00142204310 Part-time 8,000 Reduce to compensate for requested increases 00142204599 Other pay (57,000) Adjust budget to reflect actual costs incurred 00142204910 Benefits (54,000) Adjust budget to reflect actual cots incurred 0014220-6106 Contract servkes (1,875) Share of GIS cost 00142206305 Disposal (11000) Budget moved from 001-72206305 Public Services 001-52054110 Regular pay (15,500) 3% salary increase 001-5205-6106 Contract services 50,000 Decrease in plan check activity 001-5205-6106 Contract services (1,875) Share of GIS cost 001-52056305 Disposal (11500) Budget moved from 001-7220-6305 Vehicle Mahrt 001-52204110 Regular pay (10A00) 3% salary increase 001-52206162 Mandated (15,(M) Fuel tank upgrade Street Main 001-5230-4110 Regular pay (17,500) 3% salary increase R & P Admin 00161104110 Regular pay (1,.300) 3% salary increase 001-61106106 Contract services (1,875) Share of GIS cost R & P Sports 0016130-4110 Regular pay (1500) 3% salary increase R & P Youth Svcs 0016140-4110 Regular pay (15,00) 3% salary increase Teen Programs 00161436305 Disposal (1,500) Budget mooed from 001-72206305 ® R & P Oty FaaT4ies 00161504110 Regular pay (5,500) 3% salary increase One-time vehicle repair in excess of original 00161506604 O/S vehicle (2,000) budget CITY OF MORRO BAY MID -YEAR ADJUSTMENTS ® FUND/ACCOUNT NUMBER/DESCRIPTION For the 2007/08 Fiscal Year INCREASE DECREASE JUSTIFICATION R & P Parks 001-61604120 Overtime (500) Excess overtime due to medial leave 001-6160-6305 Disposal 3,500 Adjust disposal budget Utilities 001-722D 6305 Disposal (3,500) 6,100 Budget reallocated to departments using services Interfund transfers 001-77IG-8570 Transfers to enterprise (8A08) Budget reallocated to departments using services Subtotal expenditures f (614,783) ! 353,250 Total (increase)dec ease in operating expenditures f (261,533) GENERAL GOVERNMENT CAPITAL IMPROVEMENTS General Fund share of costs for an upgrade to the generator planned for Transit - this will cover Generator f (95,000) Transit, Public Services and City lW Net effect • General Fund f 20143 E CITY OF MORRO BAY MID-YEARAD7USTMEMTS For the 2007/08 Fiscal Year ® FUND/ACCOUNT NUMBER/ DESCRIPTION INCREASE DECREASE IUSTIFICATION TRANSIT Council action 1/28/08 increased compensation for Dial -A -Ride 301-5261.6106 Contract servioes $ (12,559) MV Transportation Trolley: ' Council action 1018107 authored use of Parking Revenues 301-5265-3820 Transfers from special revenue 4,582 In -lieu funds from 3rd route Expenses: 3DI-5265-5510 (1,100) Council action 1O/8/07 added 3rd mute Increased compensation (CC 1/28/08) and addition of 3rd route (CC 1O/8/07) requires 301-5265-6106 (7,690) adjustment to contractual expenses Repair of 1985 Trolley transmission (worst -Case 301-5265-6604 (3,900) scenario) Net effect - Transit $ (20,567) WATER 311-6110-4110 Regular pay $ (15,478) 3%salary Increase Share of GIS cost; additional to cover unexpected 311-6110-6106 Contract services (51,875) costs such as Kings booster rehabilitation S (67,353) SEWER 321-6110-0110 Regular pay $ (4,901) 3%salary increase 321-6110-6106 Contract services (1,875) Share of GIS cost $ (6,776) HARBOR ® 331-651O-4110 Regular pay $ (13,970) $ 3%salary increase 331-6510-6106 _ Contract services (1,875) Share of GIS cost Reduce transfer to General Fund to compensate for disposal charges formerly paid for by General Fund: recommend continue adjustment for 2 more 331.6510-8510 Transfer to General Fund 50,000 fiscal years. - $ (15,845) $ 50,000 Net effect - Harbor $ 34,155 WASTEWATER TREATMENT PLANT 001-3110-4110 Regularpay $ (11,928) WATER CAPITAL IMPROVEMENT Capital expense: Harborwalk water fine replacement $ (60,000) $ New project; funds taken from SCADA project Morro Bay BNd/Quintana Road water One (80,000) New pmject; funds taken from SCADA project SCADA system replacement 140,000 Excess funds allocated to above projects New project; funds taken from disinfection Chorm Valley nitrate analysis (50,000) facilities project Disinfection facilities 50,000 Fxrffi funds allocated to above project New project - funds avalable in Water. Desafination facility energy recovery systeMupgrade (400,OD0) Accumulation Fund Intrafund transfer 400,000 S (590,000) $ 590,000 Net effect - Water Capital Improvement S CITY OF MORRO BAY MID -YEAR ADJUSTMENTS For the 2007/08 Fkol Year ® FUND/ACCOUNT NUMBER/ DESCRIPTION INCREASE DECREASE JUSTIFICATION SEWER CAPITAL IMPROVEMENT Capital expense: Morro Bay Blvd/Quintana Road sewer tine f (80,000) f Funds available in Sewer Atcumulation Fund Lift Station E2 - additional funding (70,000) Funds available in Sewer Accumulation Fund Lift Station t3 - additional funding (50,000) Funds available in Sewer Ammulation Fund Intafund transfer 200,000 f (200,000) f 200,000 Net effect - Sewer Capital Improvemerrt f HARBOR CAPITAL IMPROVEMENT Gant revenue Department of Boating Waterways vessel equip grant f f 35,000 Capital expense Replace patrol boat equipment/engine (35,000) ' f (35,000) f 35,000 Net effect- Marlow Capital Improvement f - r� U RESOLUTION NO. 12-08 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, ADOPTING THE CAPITAL IMPROVEMENT PROJECTS TO BE FUNDED WITH PROPOSITION 1B MONIES THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is required to appropriate the spending of funds received for normal and capital activities; and WHEREAS, the State of California appropriated Proposition 1B money with its 2007/08 budget, and the amount allocated to the City of Morro Bay is $400,000; and WHEREAS, the State of California's Department of Finance is requiring evidence of the adoption of a spending plan for the 2007/08 Proposition 1B funds that have been allocated to the City. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the capital improvement budget of the City of Morro Bay is amended by the following projects that will be funded with monies from Proposition IB in the amount of $400,000 and the District Transaction Tax (Measure Q) in the amount of $35,000: Project Location Cost Morro Bav Blvd Overlay, with ADA upgrades Kern Ave. to Main St. $274,000 Morro Bay Blvd Slurry seal Main St. to Market Ave. 17,000 Main St. Overlay, with ADA upgrades Surf St. to Hwy 1 southbound onramp 144,000 Total $435,000 PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 10" day of March 2008, by the following vote: AYES: NOES: ABSENT: ATTEST: El DeMeritt, Grantham, Peirce Winholtz Peters "2"c�Y.Cr7 „ RICK GRANTHAM, Vice -Mayor ® RESOLUTION NO.11-08 APPROVAL OF CONTRACT #07-204-782 WITH THE DEPARTMENT OF BOATING AND WATERWAYS FOR A $35,000 VESSEL EQUIPMENT GRANT THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Department of Boating and Waterways (DBW) is authorized to provide grants to cities, counties, districts, and other public agencies for the purchase and equipping of safety and enforcement vessels; and, WHEREAS, the City of Morro Bay (City) has applied for a $35,000 equipment grant from the DBW to replace the engines and associated equipment in Harbor Patrol Vessel 968; and, WHEREAS, the City received notification of award of the equipment grant and now must authorized execution of said grant. NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro Bay that adoption of this resolution authorizes the City to enter into a grant ® agreement with the Department of Boating and Waterways in the amount of $35,000 for the purpose of purchasing and installing vessel engines and associated equipment in Harbor Patrol Vessel #68; and, BE IT FURTHER RESOLVED, that the City of Morro Bay hereby authorizes Harbor Director Rick Algert to execute Contract 907-204-782 with the DBW and to accept the grant for the purpose stated above. PASSED AND ADOPTED, by the City Council of the City of Morro Bay at regular meeting held thereof on the 25's day of February 2008, by the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None CE PETEAS, MAYOR BRIDGE AUER, CITY CLERK ® RESOLUTION NO. 10-08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY REGARDING BOTTLED WATER AND STYROFOAM CONTAINERS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay provides fresh, clean, and healthy tap water to all its homes and businesses; and WHEREAS, City of Morro Bay tap water is extensively tested and must meet rigorous purity standards; and WHEREAS, this tap water is readily and conveniently available in every city facility; and WHEREAS, it is estimated that 25 to 40% of bottled water originates as tap water before it is placed in the bottle; WHEREAS, nationally only about I in every 5 bottled water containers is recycled, and these bottles are one of the fastest growing sources of municipal solid waste ® in the country; and WHEREAS, it requires an estimated 1.5 million barrels of oil per year to produce the bottles and substantial amounts of energy to bottle and transport the water to retail outlets; and WHEREAS, the U.S. Conference of Mayors passed a resolution calling for a study on the impact of plastic water bottles on municipal waste systems, citing the increased plastic waste created by the bottles, the fossil fuels used to produce and transport them and the billions spent by city governments on water each year; and WHEREAS, styrofoam cups and containers are also petroleum products that cannot be recycled: and WHEREAS, most of the marine debris in the world (the average varies between 60% to 80%) is comprised of plastic and styrofoam materials. NOW, THEREFORE, BE IT RESOLVED that the City of Morro Bay encourages all Morro Bay residents and businesses to consider alternatives to the purchase of bottled water and styrofoam products; and BE IT FURTHER RESOLVED that the City of Morro Bay encourages citizens is and businesses who do use bottled water to recycle those bottles; and C El BE IT FURTHER RESOLVED that, except when required to maintain effectiveness of personnel and reduce the effects of heat stress and dehydration during highly physical exercises, extreme temperatures, and during emergency situations (e.g. fire, police, harbor, EOC, volunteers etc.), no city funds will be used by any department or agency of the City of Morro Bay to purchase single -serving bottles of water or styrofoam products: and BE IT FURTHER RESOLVED that no selling of nor distribution of plastic water bottles and styrofoam containers will occur at City -sponsored events at City -owned facilities; and BE IT FURTHER RESOLVED that language will be added to permit applications that will discourage the use of single -serving water bottles and styrofoam by private parties who use City facilities. PASSED AND ADOPTED by the City Council, City of Morro Bay at a regular meeting thereof held on the I Ith day of February 2008 by the following vote: AYES: NOES: ABSENT: ATTEST: DeMeritt, Grantham, Peirce, Winholtz, Peters None None BRIDGEVBAX Resolution 10-08 Page 2 of 2 RESOLUTION NO. 09-08 A RESOLUTION APPROVING THE CITY OF MORRO BAY HOUSING REHABILITATION PROGRAM GUIDELINES FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS The City Council, City of Morro Bay, California WHEREAS, the City Council of the City of Morro is applying for and may continue to receive grant funding from the Community Development Block Grant Program; and WHEREAS, in accordance with the State requirements, the City is required to maintain and update the Housing Rehabilitation Program Guidelines made part of and attached hereto as Exhibit A. BE IT RESOLVED the City Council of the City of Morro Bay hereby approves the Housing Rehabilitation Program Guidelines attached hereto as Exhibit A; and BE IT FURTHER RESOLVED that the Director of Public Services is hereby authorized to sign all documents related to and required by the program and to implement the program on behalf of the City of Morro Bay. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Morro Bay held on February 11, 2008 by the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None ABSTAIN: None ATTEST: BRIDGE13 BAUER, City Clerk 11 ® RESOLUTION NO.08-08 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA CALLING A PRIMARY MUNICIPAL ELECTION TO BE HELD ON TUESDAY, JUNE 3, 2008 FOR THE PURPOSE OF ELECTING CERTAIN OFFICERS OF SAID CITY; AND REQUESTING THE BOARD OF SUPERVISORS OF SAN LUIS OBISPO COUNTY TO CONSOLIDATE SAID ELECTION WITH THE CONSOLIDATED DISTRICTS ELECTION TO BE HELD IN THE COUNTY ON TUESDAY, JUNE 3, 2008; AND OTHER ELECTION MATTERS AS REQUIRED BY LAW THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City Council of the City of Morro Bay called a Primary Municipal Election to be held on Tuesday, June 3, 2008 for the purpose of the election of two (2) members of the City Council of said City for the full term of four (4) years, and for the election of one (1) Mayor of the City Council of said City for the full term of two (2) years; and WHEREAS, it is desirable that the Primary Municipal Election be consolidated with the Statewide Primary Election to be held on the same date and that within the City ® the precincts, polling places and election officers of the two elections be the same, and that the County Election Department of the County of San Luis Obispo canvass the returns of the Primary Municipal Election and that the election be held in all respects as if there were only one election. NOW, THEREFORE, the City Council of the City of Morro Bay, California, does resolve, declare, determine and order as follows: SECTION 1. That pursuant to the requirements of Section 10403 of the Elections Code, the Board of Supervisors of the County of San Luis Obispo is hereby requested to consent and agree to the consolidation of a Primary Municipal Election with the Statewide Primary Election on Tuesday, June 3, 2008, for the purpose of the election of one (1) Mayor, and two (2) Members of the City Council. SECTION 2. That the County Election Department is authorized to canvass the returns of the Primary Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. SECTION 3. That the Board of Supervisors is requested to issue instructions to the County Election Department to take any and all steps necessary for the holding of the consolidated election. ® Resolution No. 08-08 Page Two SECTION 4. That the City of Morro Bay recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs. SECTION 5. That the City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the County Election Department of the County of San Luis Obispo. SECTION 6. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions. PASSED AND ADOPTED b� the City Council of the City of Morro Bay at a regular meeting thereof held on the 28 day of January 2008 following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None 0 ABSENT: None ATTEST: ,,F 1, 1 ZEN 0 j: 11 RESOLUTION NO.07-08 RESOLUTION DESIGNATING PARKING IN -LIEU FUNDS FOR THE HARBORWALK PROJECT THE CITY COUNCIL City of Morro Bay, California WHEREAS, In -Lieu Parking Fees were established, codified as Morro Bay Municipal Code Section 17.44.020 A7, as a means through which public parking can be provided where it is unfeasible to provide such parking as part of on -site development projects; and WHEREAS, it is necessary and appropriate to designate a project for the use of In -Lieu Parking Fee Fund consistent with the requirements of said section 17.44.020 A& and Government Code section 66001(d); and WHEREAS, the Harborwalk project results in a net increase of 35 parking spaces; and WHEREAS, in order to fully mitigate public parking space shortages, the development of new, additional parking space is necessary. NOW, THEREFORE, BE IT RESOLVED, by the City Council, City of Morro Bay, California that the Harbor alk project is hereby designated to be a project for use of In -Lieu ® Parking Fee funds. PASSED AND ADOPTED by the City Council, City of Morro Bay at a regular meeting thereof held on the 28 h day of January, 2008, by the following vote: AYES: NOES: ABSENT: ATTEST: DeMeritt, Grantham, Peirce, Peters Winholtz None IIMS—� o .m: �� E ® RESOLUTION NO.06-08 APPROVAL OF AMENDMENT NO. I TO THE LEASE AGREEMENT FOR LEASE SITE 78-81Y/8W-81W, LOCATED AT 701 EMBARCADERO, BETWEEN THE CITY OF MORRO BAY AND VAN BEURDEN INVESTMENTS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 78-81/78W-81W, located at 701 Embarcadero; and, WHEREAS, Van Beurden Investments are the lessees of said property; and, WHEREAS, in order to preserve marine dependent uses on the waterfront the City and Van Beurden Investments have agreed to enter into Amendment No. I, with an effective date of January 1, 2007, to the Lease Agreement for Lease Site 78-81/78W- 81 W to provide a rent credit as long as there is a fish buying or fish processing business operating on at least 400 square feet of the Lease Site and Amendment No. 1 shall also amend Exhibit B of the lease agreement exempting fish buying and fish processing from any percentage of gross sales rental; and, ® WHEREAS, to provide for trash pick up while maximizing public space and view corridors along the waterfront, Amendment No. 1 to the lease agreement for Lease Site 78-81/78W-81 W also provides access to the Tenants of Lease Site 82/82W along the northern 10 foot wide drive way of Lease Site 78-81/78W-81 W for trash pick up. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that Amendment No. 1 to the lease agreement for Lease Site 78-81/78W-81 W between the City of Morro Bay and Van Beurden Investments is hereby approved and that the Mayor is hereby authorized to execute said Amendment No. 1. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 28 day of January 2008, by the following vote: AYES: DeMeritt, Grantham, Peirce, Peters NOES: Winholtz ABSENT: None ANICE PETF/RS, MAYOR E AMENDMENT #1 TO LEASE AGREEMENT FOR LEASE SITE 78-81/78W-81W ® This Amendment is made and entered into as of this _ day of 2008 by and between the City of Morro Bay, a municipal corporation of the state of California, (hereinafter "City") and Van Beurden Investments, a partnership (hereinafter "Tenant") to amend that certain ground lease for Lease Site 78-81/78W-81 W dated November 24, 1992 (hereinafter "Lease"). WHEREAS, Tenant has operated the Flying Dutchman restaurant and various retail shops on Lease Sites 78-81/78W-81 W for many years and the Tenant and City entered into a long term lease in 1992 to allow Tenant to reconstruct the improvements on the site; and, WHEREAS, the City approved assignment of the lease to Van Beurden Investments in 1994; and, WHEREAS, Van Beurden Investments notified the City that Stan Van Beurden was no longer a member of the Van Beurden Investments partnership; and, WHEREAS, City has previously approved a restroom rent credit to Tenant for unanticipated high maintenance costs for the public restroom on the Lease Site and said restroom credit expired on June 30, 2006; and, WHEREAS, Tenant for several years leased out a portion of the Site to Mr. Jimbo Silva for operation of a fish buying and small processing operation; and, WHEREAS, currently the space operated by Mr. Silva is now being sublet to Mr. Brett ® Cunningham, doing business as Morro Bay Fish company; and, WHEREAS, Tenant could potentially convert the fish processing area to visitor serving retail use and realize higher rental income, but City desires that the Tenant continue renting the space to a fish buyer/processor, as this use is the highest priority use in the City's local coastal plan, and City desires to support commercial fishing businesses and infrastructure; and, WHEREAS, because fish buying and wholesale fish sales are the highest priority uses in the City's local coastal plan, the City has changed its standard percent of gross sales schedule since Tenant's lease was executed to exempt wholesale fish sales and fish unloading fees from percentage of gross sales rents; and, WHEREAS, Tenant consented to allow the development on the northerly border of Tenant's Lease Site to access Tenant's Lease Site for ingress and egress of trash dumpster and service vehicles so that the development on the northerly border could construct that development's trash enclosures facing Tenant's Lease Site. NOW THEREFORE, City and Tenant mutually agree to amend said Lease as follows: Section 13.06 Rent credit for renting building space to a fish buying or processing business; shall be added as follows: Tenant shall receive a $600 per month rent credit, effective. January 1, 2007, when Tenant rents one building space of at least 400 square feet on the Site to a California licensed fish buyer or ® processor. Said rent credit shall be taken at the time Tenant submits annual percent of gross sales report and rent for the previous year in arrears. LS 78-81178W-81W Amendment#1 Page 2 of 2 Section 13.07 Access for adjacent Lease Site 82-85/82W-85W trash service; shall be added as follows: In consideration for this Amendment and work City has completed to improve the Tenant's northerly 10 feet of Lease Site 81, Tenant consents to and allows at all reasonable time access to Tenant's northern 10 foot wide driveway on Lease Sites 81 (as shown on the attached Exhibit A), for garbage service from the Rose's Landing development including employees of Rose's Landing (or its successors Tenant at Lease Sites 82-85/82W-85W, should there be any) provided that Rose's Landing shall take all necessary steps to clean and keep the area free of garbage or other material generated by Rose's Landing. Exhibit B: Exhibit B of the Lease shall be amended to delete percentage of gross sales rent for wholesale sales and fish unloading so that the Tenant will not be required to pay any percentage of gross sales rent on these uses. All other terms and conditions of the Lease shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto hereby execute this Amendment. CITY OF MORRO BAY ('Andrea Lueker, Interim City Manager APPROVED AS TO FORM Robert Schultz, City A4Loryey ATTEST 1 RUN- / o�- . r - TENANT Van Beurden Investments Cle Va e Van eurden Investments Leon Van Beur Werde!!nl�nvestments Paul Van Beurden Van Beu den Investments William Van Beurden Ef El EXHIBIT A 1 1 1 1 ` ORARNIC SCALE C '. r sv rrrr J J kco a7� R 81 �w p�fyrp(YF fLR IYY■ ,4 �qptl RC61Rf.6i •YtK�09��� A_,-C9S to TF.a4P. Site �1 for tra?Ye S27virr for. Tenant at 1,,,,qP. Rims 82-95%iSZW4l a/i 'I -?I ?11 SS'�i'I4•.ri Nob F pga�'Ai'da5 0 RESOLUTION NO. 05-08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY ADOPTING THE JANUARY 2008 REVISION OF THE CITY OF MORRO BAY MULTI -HAZARD EMERGENCY RESPONSE PLAN, PART 1, BASIC PLAN THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay Multi -Hazard Emergency Response Plan establishes City policy and objectives for emergency management and response; and WHEREAS, the City wants to assure the Multi -Hazard Emergency Response Plan reflects the City's use of the National Incident Management System as adopted by Resolution 31-06 on July 10, 2006; and WHEREAS, the City desires to correct errors in the original plan and provide accurate updated data to the Multi -hazard Emergency Response Plan; NOW, THEREFORE, be it resolved that the City Council of the City of Morro ® Bay does hereby adopt the January 2008 revision of the City of Morro Bay Multi -Hazard Emergency Response Plan. PASSED AND ADOPTED by the City Council, City of Morro Bay at a regular meeting thereof held on the 28th day of January 2008 by the following vote: AYES: NOES: ABSENT 1 DeMeritt, Grantham, Peirce, Winholtz, Peters None None Page 1 of I City of Morro Bay Multi -Hazard Emergency Response Plan PART 1 BASIC PLAN Developed by Morro Bay Fire Department Jeffrey F. Jones, Fire Chief October 2003 11 PREFACE 40 The purpose of the City of Morro Bay Multi -hazard Emergency Response Plan is to prescribe the City's policies and concepts for responding to any and all emergencies that could affect the health, safety, and property of the public within the city limits. The plan covers all emergencies and it is broken down into the following types of major events: . EARTHQUAKE • HAZARDOUS MATERIAL • MULTI -CASUALTY • STORM/FLOOD . • WILDLAND - MAJOR FIRE • CIVIL DISTURBANCE -TERRORISM • NUCLEAR POWER PLANT • TSUNAMI PLAN ADOPTION This is the official City of Morro Bay Multi -hazard Emergency Response Plan for responding to various emergencies causing damage in the City of Morro Bay. The Plan's responsibilities and authorities are effective as indicated below. Andrea Lueker, Interim City Manager i 3l -ot Date l E CITY OF MORRO BAY MULTI -HAZARD EMERGENCY RESPONSE PLAN DISTRIBUTION LIST City Manager City Clerk Public Services Department Harbor Department Emergency Operations Center Fire Department Police Department Recreation & Parks Department Morro Bay Library SLO County Office of Emergency Services California Office of Emergency Services, Region I : M k 0 Vilreqi. i, This Section is for Plan Holders to record the posting of each Official Plan Revision made by the City. Please enter the revision number, the pages, the date the revision was posted, and the initials of the person posting the revision. 1 LJ 0 TABLE OF CONTENTS 0 PlanAdoption ............................................ ....................................... I.................. iii DistributionList................................................................................................... RevisionPage..................................................................................................... iv Tableof Contents................................................................................................ v SECTIONI - Introduction.................................................................................... 1 1 A. Purpose.................................................................................................... 1 B. Objectives................................................................................................. 2 C. Plan Organization..................................................................................... 2 1. Part 1 - Basic Plan......................................................................... 2 2. Part 2 = Hazard -Specific Annexes .................................................. 3. Part 3 - Support Materials.............................................................. 3 D. Plan Coordination..................................................................................... 3 SECTION II - Authorities And References.......................................................... 4 A. Authorities................................................................................................ 4 1. Federal Authorities........................................................................ 4 2. ® State Authorities............................................................................. 5 B. R References .................. SECTION III - Hazard Overview.......................................................................... 6 A. Earthquake............................................................................................... 6 6 B. Hazardous Materials................................................................................ 7 C. Multi-Casualty........................................................................................... 8 D. Storm / Flood............................................................................................ 8 E. Wildland / Major Fire................................................................................ 9 F. Civil Disturbance-Terrorism...................................................................... 10 1. Civil Disturbance........................................................................... 10 2. Terrorism..................................................................................... 11 G. Nuclear Power Plant................................................................................ H. Tsunami...................................................................................................11 SECTION IV - Planning Basis............................................................................ 13 A. Earthquake..............................................................................................13 13 B. Hazardous Materials............................................................................... C. Multi-Casualty..........................................................................................14 D. Storm-Flood.............................................................................................14 14 E. Wildland / Major Fire............................................................................... 14 F. Civil Disturbance-Terrorism..................................................................... 15 G. Nuclear Power Plant............................................................................... ® H. Tsunami...................................................................................................15 SECTION V - Emergency Management............................................................. 16 A. Discussion...............................................................................................16 B. National Incident Management System and Standard Emergency ManagementSystem........................................................................... 16 C. Incident Command System...................................................................... 16 D. City Emergency Organization.................................................................. 17 E. Responsibilities.......................................................................................18 1. Policy Group................................................................................. 18 2. Incident Commander...................................................................... 18 3. Safety Officer................................................................................ 19 4. Information Officer/Liaison Officer ................................................ 19 5. Operations Section....................................................................... 20 6. Planning Section........................................................................... 20 7. Logistics Section........................................................................... 21 8. Finance / Admin Section................................................................ 21 TABLE V-1 Incident Management Organization Chart .................................... 23 SECTION VI - Concept Of Operations............................................................... 25 A. Basic Elements Of Emergency Response ............................................... 25 B. Mutual Aid Concepts............................................................................... 26 C. Preservation Of Government................................................................... 26 1. Lines Of Succession..................................................................... 26 2. Temporary City Seat of Government and EOC ............................ 27 3. Vital Records................................................................................. 27 TABLE VI -1 . Lines Of Succession.................................................................... 28 SECTION VII - Emergency Resources............................................................... 29 AEmergency Facilities............................................................................... 29 B. Emergency Equipment And Supplies...................................................... 29 SECTION VIII - Program Maintenance.............................................................. 30 A. Disaster Preparedness Committee.......................................................... 30 B. Plan And Procedure Maintenance........................................................... 30 C. Emergency Resources Maintenance....................................................... 30 D. Training................................................................................................... 31 11 •► ►IN :•5 •► The purpose of the City of Morro Plan (MERP) is to prescribe responding to major emergencie property of the public within the covers the City's response in emergencies: s Bay Multi -hazard Emergency Response the City's policies and concepts for that could affect the health, safety, and city limits. In specific annexes the plan more detail to the following types of • EARTHQUAKE • HAZARDOUS MATERIAL • MULTI -CASUALTY • STORM -FLOOD • WILDLAND-MAJOR FIRE • CIVIL DISTURBANCE -TERRORISM • NUCLEAR POWER PLANT • TSUNAMI B. QB IFCTIV S The objectives of this Plan are to: • Protect the public and property in the City. • Establish official City policy for response to emergencies utilizing the National Incident Management System (NIMS) integrated with the Standard Emergency Management System (SEMS) and the Incident Command System (ICS). • Identify authorities and assign responsibilities for planning and response activities. Identify the scope of potential hazards that form a basis for planning Identify other jurisdictions and organizations with which planning and emergency response activities should be coordinated. Establish the City. Emergency Organization, which will manage emergency response. • Establish the City's policy for providing emergency information to the public. • Outline preplanned response actions that will be taken by City emergency personnel to mitigate the emergency's effects. • Describe the resources available to support emergency response activities. • Establish responsibilities for the maintenance of the overall City emergency preparedness program. C. The City's emergency preparedness program consists of three parts: Part 1 - Basic Plan; Part 2 - hazard -specific annexes (which cover each type of emergency listed in Section A); and, Part 3 Support Materials containing resource and reference materials and a recovery plan for the City. An abstract of each part is provided below: Part 1 serves as an overview for elements of response that are common to all types of emergencies. Objectives and policy for the City are established in this section and therefore this portion of the plan requires the approval of the City Council. Part 2 contains hazard -specific plans including the Standard Operating Procedures that are used to implement the concepts and policies set forth in this plan. This portion of the plan is tactical in nature and therefore changes are frequent. This part of the plan is maintained independent of Parts 1 and 3. Part 2 does not require the approval of the City Council. The annexes contained in Part 2 are as follows: Annex A - Earthquake Annex B - Hazardous Material Annex C - Multi -Casualty Annex D - Storm -Flood Annex E. Wildland-Major Fire Annex F. Civil Disturbance -Terrorism Annex H. Nuclear Power Plant Annex G. Tsunami Each Annex covers the planning elements specific to the type of emergency addressed. The Disaster Management Guides, contained in each annex, provide direction to emergency workers in the implementation of the concepts and policies applicable to each type of emergency. They give guidance on how, when, and by whom emergency actions are performed and give information and references necessary to support emergency workers in their tasks. E Part 3 consists of support materials and references that are stand-alone documents. These materials are maintained independent of Parts 1 and 2. Part 3 does not require the approval of the City Council.The materials are intended to provide emergency personnel with information and data to support the City's emergency response and recovery efforts. As appropriate, references to the support materials are provided in Parts 1 and 2 of the plan. Support materials in Part III include: • City of Morro Bay Special Needs Population List (Confidential) • San Luis Obispo County Emergency Alerting System (EAS) and Sample Messages • City of Morro Bay Resource List (Vehicles and Equipment) • City of Morro Bay Phone listing (Confidential - limited distribution) • San Luis Obispo County Resource Directory • Recovery plan Almost all major emergencies result in the response from more than one agency or jurisdiction. Therefore, the City must assure that program development and emergency incident response is coordinated with surrounding jurisdictions. The following is a sample listing of jurisdictions where plan development and response coordination is required: • Federal Emergency Management Agency (FEMA) • California Office of Emergency Services. • San Luis Obispo County Office of Emergency Services • San Luis Obispo County Fire Department • San Luis Obispo County Sheriff • All Cities within San Luis Obispo County 11 The following is a list of the authorities used for the development and implementation of this'plan. Federal AiAhorities Federal Civil Defense Act of 1950 (PL 920) Federal Disaster Relief Act of 1974 (PL 93-288) • Public Law 84-99 • Homeland Security Presidential Directive (HSPD)-5 fi - • California Government Code (Chapter 7, Division 1, Title 2) Section 8550 at. seq. - California Emergency Service Act • California Government Code (Article 3.7, Chapter 7, Div. 1, Title 2) Sections 8574.7 to 8574.9 - Toxic Disasters. • California Government Code (Article 11, Chapter 7, Div. 1, Title 2) Section 8615 - Mutual Aid. • California Hazardous Materials Incident Contingency Plan • California Health and Safety Code (Div. 1, Part 2, Chapter 8) Section 1158 - Supervision by Local Health Officer During Health Emergencies. • California Health and Safety Code (Div. 20, Chapter 6.5, Article 2) Sections 25180 - Enforcement of Hazardous Waste Laws, and Section 25185 - Powers of Health Office to enterlinspect. • California Health and Safety Code (Div. 20, Chapter 7, Sections 25600 to 25610) - Control of Radioactive Contamination of the Environment. • California Natural Disaster Assistance Act • California Vehicle Code (Article 4, Chapter 2, Div. 2) Section 2454 - Scene Management as amended in Chapter 543 of 1982 Statutes. • California Vehicle Code (Article 4, Chapter 2, Div. 2) Section 2452 - Hazardous Substance Defined. • California Vehicle Code (Article 4, Chapter 2, Div. 2) Section 2453 - Hazardous Spill Notification System • California Vehicle Code (Article 4, Chapter 2, Div. 2) Section 2450 - Hazardous Substances Highway Spill Containment and Abatement Act. • California Vehicle Code (Article 4, Chapter 2, Div. 2) Section 2451 - Public Health: Legislative Finding. City of Morro Bay Municipal Code Chapter 8.08 Disaster Ft 0 ® Preparedness. San Luis Obispo County Code (Ord. No. 1384) Chapter 2.80 - Emergency Organization and Functions San Luis Obispo County/Cities Basic Plan for Peacetime Emergencies 1981 San Luis Obispo County/Cities Basic Plan for Peacetime Emergencies, 1981. Municipal Code Chapter 2.24 Emergency Services, pg. 17-20. B. RFFFRFNCFS The following is a listing of references used in the development of this emergency plan. California• Emergency Plan, 1998 California• Emergency Resources Management Plan California• Fire and Rescue Operations Plan • California Law Enforcement Mutual Aid Plan California• Master Mutual Aid Agreement California• Emergency Medical Services Authority Multi - Causality Incident Guidelines ® . City of San Luis Obispo Multi -hazard_ Emergency Response Plan. • City of Morro Bay, Fire Department Policies and Procedures • Manual. City of Morro Bay, Multi -hazard Emergency Response Plan, 2002 • Fire Service Emergency Management Handbook, FEMA 1985. • FIRESCOPE Field Operations Guide - ICS 420-1 • San Luis Obispo County Basic Plan for Peacetime Emergencies • San Luis Obispo County Earthquake Emergency Response Plan, San Luis Obispo County Office of Emergency Services, 1986. • San Luis Obispo County Hazardous Materials Emergency Response Plan, San Luis Obispo County OES, 1985. • San Luis Obispo County/Cities Nuclear Power Plant Emergency Response Plan, 1990. This section provides a, 8enetal overview of the potential threat presented by each of the types of emergencies listed in Part 1, Section I. A detailed hazard assessment for each type of emergency is presented in the hazard -specific annexes found in Part 2 of the MERP. Each annex examines the potential effects that could result if an emergency of that type were to occur. There are four (4) known seismically active faults that run through San Luis Obispo County. These include the San Andreas Fault, the Nacimiento-Rinconada Fault, the Hosgri Fault, and the San Simeon Fault. The San Andreas Fault capable of an 8.5 magnitude earthquake, is the best known of these four and potentially poses the greatest threat. Increases along this fault between Parkfield and Cholame indicate that we are past due for a 5.5 to 7.4 Richter magnitude earthquake in this area. The 6.3 San Simeon Earthquake of December 2003 damaged the Morro Bay Headquarters fire station and caused two fatalities in Paso Robles. Potential emergencies or problems that may be triggered as a result of a light -to -heavy damage earthquake impacting the City include: building collapse (particularly un-reinforced masonry structures) causing need for rescue; mass injuries; hazardous materials releases; major fires; utility disruptions; major natural gas leaks; communication disruptions; need for evacuation; command and coordination problems; roadway and transportation system disruptions; and hospital/school disruptions to list a few. The potential direct and indirect consequences of a major earthquake will severely stress the resources of the City and will require a high level of self-help, coordination and cooperation. Out -of -city assistance from other local, regional, state, federal and private agencies may be delayed by more then 72 hours, depending on the regional severity of the earthquake. The Fire Department assumes the primary role in the management of an earthquake emergency. �•I Ll LA - A hazardous material is any substance, natural or man-made, that may be harmful to life or to the environment. A hazardous materials incident is any emergency where these substances are involved. Hazardous ® materials incidents may occur at fixed facilities, along any air or land transportation route, and in unpredictable areas relatively inaccessible by ground transportation. The City contains two (2) major transportation arteries, Highway 1 and Highway 41, where thousands of tons of hazardous materials are transported annually through and into densely populated areas of the City. In 2001 an anhydrous ammonia leak at a fixed facility on Beach Street caused the evacuation of over 3,000 people in Morro Bay. Pesticides and chemicals are stored at numerous sites around the City. Fixed facilities are found mainly in two areas: the Morro Bay Power Plant and the waterfront area. Air transportation of hazardous materials poses a small but still potential hazard. Hazardous waste is occasionally shipped along Highway 1, as an alternate to US 101 to a major dumpsite located in the Kettleman Hills near Highway 5. The potential for a hazardous materials emergency exists primarily through transportation accidents of. surface vehicles. Although the probability for a disastrous hazardous materials incident is low, the probability for extreme risk to life and property is high should such an emergency occur. ® The Fire Department assumes the primary role in the management of a Hazardous Materials emergency. A multi -casualty incident is one that involves a sufficient number of injured persons to overwhelm the first responding medical resources or an incident with a significant medical hazard to a large population (natural disaster, haz mat, etc) or involves evacuation of a medical facility (hospital, convalescent home, etc). Given the travel routes through the city, the modes of public transportation available (vehicle and vessel) and the fact that the City is located below the normal flight path of the commercial aviation system, a distinct possibility for a large transportation accident exists within the City Limits. Additionally, the Harbor Festival and other large public events, along with the seasonal, dangerous surf conditions at the Harbor entrance dictate the need for a Multi -casualty Plan. As indicated in the plan, the responsibility for managing the event will be dictated by where and why the event has occurred; however, quite typically these events are managed under a Unified Command with the Fire Department in a lead role. Rainfall and inclement weather are primarily seasonal phenomena in the City, roughly corresponding to the November through March winter rainfall season associated with Mediterranean climate of the central coast of California. Several creek drainage systems, including Chorro Creek, the Morro/Little Morro Creek convergence, No -Name Creek, Alva Paul Creek, Toro Creek, .and San Bernardo Creek flow into and/or near the City. Chorro Creek is the largest and runs along the southern boundary of the City near two mobile home parks. Morro Creek runs parallel to Highway 41. Little Morro Creek runs parallel to Little Morro Creek Road and combines with Morro Creek within the City near Main Street. No -Name Creek runs through the City along Island Street. Alva Paul runs through the city along Whidbey and Yerba Buena Streets. Toro Creek runs along the farthest northern boundary of the City. San Bernardo Creek runs under Highway 1 south of the City. As seen in the 1995 Floods, these creeks can present varying hazards during a flood and can block access to and egress from the City. When rainfall and surface run-off from a storm exceeds a drainage system's capacity to adequately channel and contain the water flooding may occur. Potential flood areas include: the South Bay Boulevard area between Highway 1 and State Park Road; the area between Highway 41/Atascadero Road and Radcliff Avenue; low-lying sections of Island Street and Beachcomber; Highway 1, at the northern City limits; and, Highway 1 south of the City limits. Other problems and hazards associated with flooding and inclement weather include utility disruptions, broken power lines lying on the ground, trees damaged and blown down, and transportation route disruptions. The Public Services Department assumes the primary role in management of a storm emergency or flood. The potential for a major fire in the City of Morro Bay always exists. Residential, industrial, commercial, harbor front, and wildland areas all present potential disaster situations. The cause of a disastrous fire within the city may be a major structural fire fanned by ocean or Santa Ana winds or a major wildland/urban interface fire (I -zone fire). The areas most at risk for a conflagration are the hillside homes of north Morro Bay, structures and vessels located on or adjacent to the waterfront ® areas of the City, the older businesses lining Morro Bay Boulevard, and the structures in and adjacent to the Morro Bay State Park - Throughout much of the City, homes and businesses are built closely together with little defensible space and are located on narrow roads that make access difficult. In addition, the construction used in many of these buildings is wood -frame with wood siding and combustible roofs; a method of building that offers a significant amount of fuel to a wind or topographically driven fire. The T-Pier fire of 1988 demonstrated the potential for a major structural fire in other areas of the City. The close proximity of vessels, commercial buildings, residential areas, and other structures could promote a conflagration. These factors combined with certain weather and tidal factors pose a significant threat for a major fire in the harbor area of the City of Morro Bay. The City, located on the western coastal fringe of the Santa Lucia Mountain Range is in a fairly favorable position with respect to the wildland fire threat. However, in 1994 the Highway 41 Fire burned toward the City with amazing speed. While this threat was short lived, the does exist for a major wildland fire to bum into the City. potential The areas that are at risk from a large-scale wildland fire are, for the most ® part, located on the edge of the City limits. These "fringe" areas are where there is the most [-zone potential. The neighborhoods bordering the Morro Bay State Park and Black Hill area also possess this potential. Additionally, the lands that adjoin the City are not subject to the rigorous weed abatement programs enforced by the Morro Bay Fire Department. As a result, the potential exists for a major fire that could quickly overrun the capabilities of both the City's and other local government fire departments. Command and coordination of resources, area evacuations/sheltering of those displaced, and reoccupation are major plan components. The Fire Department assumes the primary role in the management of a Major Fire emergency. :6: For planning purposes, these two types of events have been combined together. These occurrences are primarily law enforcement responsibilities; however it is difficult to predict how the emergency(s) may impact the community, as they may occur in a variety of forms. Successful outcomes to these occurrences will often require the use of ® more than one annex of the City Emergency response plan. The plan focus then becomes more related to resource coordination and objectives rather than tactical procedures. iWOMIRM �._.._ The spontaneous disruption of normal orderly conduct and activities in urban areas, or outbreak of rioting or violence that is of a large nature is referred to as civil disturbance or disorder. Civil disorder is a demonstration of popular unrest that may manifest itself in acts of violence and destruction against property and human life. Civil disorder can be spurred by specific events, such as large sporting events or criminal trials, or can be the result of long-term disfavor with authority. Civil disorder is usually noted by the fact that normal on — duty police.and emergency services personnel cannot adequately deal with the situation until additional resources can be acquired. This is the time frame when civil unrest can grow to large proportions. The threat to law enforcement and safety personnel can be severe and bold in nature. Securing of essential facilities and services is necessary. Looting and fires can take place as a result of perceived or actual non-intervention by authorities. AI; High -density event -oriented populations occur at various times through out the year. They are events that attract large numbers of Ah persons such as; school events, parades, and festivals. The Harbor Festival can host as many as 20,000 people at a time. Because of the myriad events that are available that weekend, virtually any type of audience can be expected to be in attendance at any one time. The prospect of a large concentration of individuals who are of a mind set to cause a civil disorder is a possibility. The threat from the indigenous population is non-existent. The Police Department assumes the primary role in the management of Civil Disturbance Emergency. F�Irzigtel Terrorism involves a struggle between competing principles and ideologies below the level of conventional war. Principal targets include military personnel and facilities, commercial establishments, government buildings and property, and/or any location where large numbers of people congregate. The effects of terrorist activities can vary significantly, depending on the type, severity, scope, and duration of the activity. Terrorist activities may result in disruption of utility services, property damage, injuries and the loss of lives. While San Luis Obispo County is a low population area, with generally low population density when compared with major metropolitan areas, the possibility of a terrorist action, which might have an impact on the City, cannot be discounted. Terrorist actions may include biological, chemical, incendiary, explosive, nuclear/radiological, or electronic (such as software system) attacks. The Police Department assumes the primary role in the management of Terrorism. G. NI Irl FAR PQWFR PI ANT The Diablo Canyon Nuclear Power Plant is operated by the Pacific Gas and Electric Company (PG&E). The plant is located on the San Luis Obispo County coast approximately 10 miles southwest of the City of Morro Bay. The plant consists of two nuclear power generating units. Both units are operational. Each unit is a pressurized water -type reactor ® having an electric power generating capacity in excess of 1,000 megawatts. When any nuclear power plant is operated, the potential for a radiological accident exists, though the probability of a serious accident is very low. The principal deterrent to an accident is prevention through conservative design, construction and operation, which assures that the integrity of the reactor system is maintained. Protective systems are installed and are automatically activated to counteract the resulting effects when any part of the reactor system fails. Emergency planning is necessary to assure public safety in the unlikely event that reactor safety systems fail. The Fire Department assumes the primary role in the management of a nuclear emergency H. TSIINAMI A tsunami, or seismic sea wave, is a series of waves generated by seismic activity in or near the Pacific Ocean. They may be as far apart as one hour, and up to twenty feet high on this part of the coast. There is no way to determine in advance the amplitude or size of the waves. A small ® tsunami at one beach can be a giant a few miles away. Tsunamis have done great damage to communities located on the �A California coast. A tsunami in 1964 killed 12 people in Crescent City and damaged piers and boats. in Morro Bay. Damage in Morro Bay was caused as the bay emptied and filled every 15 minutes for over an hour. A 1960 tsunami killed 61 people in Hawaii; six hours after a warning had been issued. Sooner or later, tsunamis strike every coastline in the Pacific, and for this reason they pose a threat to the citizens and visitors of Morro Bay. Should such an emergency occur, the risk to life and property could be extreme. The Fire Department assumes the primary role in the management of a Tsunami emergency. 11 11 L. W.11►► ► This section discusses the planning basis for each type of emergency addressed in this plan. It covers the planning regulation, guidance, concepts, and policies that form the City s foundation for response to each of the types of emergency covered by this plan. The City of Morro Bay Multi -hazard Emergency Response Plan, including the Hazard Specific Annexes, was developed using State Multi - hazard functional planning guidelines and as such, complies with State and Federal mandates. Compatibility with San Luis Obispo County Multi -hazard Emergency Response Plans is built into the City s plan. Common elements in the plan include: an annual review and update of all plans, regular field or tabletop exercises, development of Standard Operating Procedures (SOP's) for field level operations by each involved City department, automatic EOC activation points and incident management using NIMS (National Incident Management System integrated with SEMS (Standard Emergency Management System) and ICS (Incident Command System). A. FARTHOIIAKF ® The effects of a heavy damage earthquake will be widespread, quickly exhausting resources and requiring extensive outside aid. The earthquake annex of this plan concentrates on obtaining and coordinating these resources through use of the Incident Command System and establishment of an Emergency Operations Center. The San Luis Obispo County Emergency Response Plan was a primary reference to assure that coordination with San Luis Obispo County efforts would occur. Areas of responsibility for City departments are outlined and the development of Standard Operating Procedures for each department is assigned. The release of hazardous materials, into the environment, can cause a wide range of problems. The Hazardous Materials Emergency Response Plan determines responsibilities and outlines a management system (ICS) and Standard Operating Procedures used to mitigate the effects of such an event. Incident Commander authority is determined based on incident location. Assistance for mitigation, clean up and funding is addressed. Evacuation of significant portions of the City is planned for, as is a chain of mandatory regulatory agency notifications. C. Mt 11 TI- CA311AI Ty The multi -casualty incident (MCI) Plan has been developed on a countywide basis to provide an organized emergency medical response to an incident or incidents that involve numerous victims. The goals of the plan are to organize and implement a countywide system EMS plan of action .to manage multi -casualty incidents; provide the greatest medical good for the greatest number of patients; give early notification to area hospitals so they can assess and prepare their casualty care capabilities; early triage and separation of specific patient problems to ensure their distribution to the most appropriate hospital; avoid patient overload at any one hospital; ensure all EMS agencies follow the same multi -casualty incident plan of action. e'u ee9 The occasional seasonal effects of heavy winter storms have historically caused short-term problems within the City. The Storm/Flood Plan designates Public Services as the lead agency for battling the effects of a flood. The plan identifies a management organization and emergency resources and facilities. The effects of a large-scale wildland fire or major structure fire(s) will require many fire suppression resources be brought into the City. A quick response and efficient management of these resources is contained in this plan. Evacuation and securing of fire -damaged areas via Police assistance is also a primary planning element. The handling of any civil disturbance is very delicate in nature. Our actions in response to civil disturbance should attempt to prevent an escalation of the situation and to protect people and property. We should constantly evaluate the situation and respond at a level necessary to control or mitigate confrontations. This annex identifies a management plan and addresses actions and resources necessary for civil disturbance emergencies. It is prudent to increase preparedness and awareness efforts in addressing the threat of terrorism throughout the nation, including San 41 ® Luis Obispo County. There are a number of emergency management systems and emergency procedures that come into play should an event occur locally. The specific type of terrorist act will dictate which speck plan(s) will best handle the event. Any event of consequence will see significant Federal Government intervention and support based on the national security concerns. Nuclear power plant emergency plans are developed using guidance from the federal planning document titled NUREG-0654/FEMA-REP-1, Criteria for Preparation and Evaluation of Radiological Emergency Response Plans and Preparedness in Support of Nuclear Power Plants. The U.S. Nuclear Regulatory Commission (NRC) and the Federal Emergency Management Agency (FEMA) developed NUREG-0654/FEMA-REP-1 jointly after the Three Mile Island accident in the 1979. The document incorporates the lessons learned from inquiries into the response actions taken during the accident. The State of California also has established guidance for maintenance of nuclear power requirements and guidance used in development of the ® concepts of nuclear power plant emergency response. This Annex was prepared with assistance from the County Office of Emergency Services in conjunction with the County's Nuclear Power Plant. H. TSIINAMI A review of the history of our coastline demonstrates the necessity of being prepared for a tsunami. The California coast has experienced numerous events and thus must maintain plans capable of handling a tsunami emergency. This annex addresses evacuation and warning procedures necessary to ensure a safe and timely response to reports of a possible tsunami striking the City of Morro Bay. r� Li 3 ►KYWR11I =1Rell►NO►JRAN\F.AreTEU, M. } _ •k The City will manage emergencies using the National Incident Management System (NIMS) integrated with the Standard Emergency Management System (SEMS) and Incident Command System (ICS). NIMS, SEMS, and ICS are modular emergency management systems designed for incidents involving a multi jurisdictional response. They provide effective direction and control of an emergency from the time of notification, through all its stages, until the situation de-escalates to a point where emergency resources are no longer needed. In an emergency, governmental response is an extraordinary extension of the responsibility and action, coupled with the normal day-to-day activities, associated with governing. Any emergency event of major consequence will more than likely overwhelm local government resources requiring assistance from a multitude of agencies. The National Incident Management System (NIMS) integrated with the Standardized Emergency Management System (SEMS), which has been adopted by the City of Morro Bay, establishes a nationwide standard response structure and basic protocols to be used by all agencies in both emergency response and recovery for a major event. Its authority and structure can.be found in Chapter 1 of Division 2 of Title 19 of the California Code of Regulations and Homeland Security Presidential Directive (HSPD)-5. Fully activated, the NIMS/SEMS consists of six levels: field response, local government, operational areas (countywide), OES Mutual Aid Regions, state government, and federal government. ICS consists of several components. When applied together, the following provide the basis for effective emergency management: • Common terminology • Modular organization • Integrated communications .. Unified command structure ® Consolidated action plans Manageable span -of -control Pre -designated incident facilities Comprehensive resource management The modular aspect of ICS establishes a dynamic emergency organi- zation based on the resources needed to support all phases of an emergency. The organization's staff will be integrated from the top down. If a situation escalates, additional resources can be brought into the organization, and, likewise, when the situation de-escalates, resources can be released when they are no longer needed. D. rITY F MFRrFNf V ORGANI7ATION The figures at the end of this section illustrate the City of Morro Bay's Incident Management Organization for various types of emergencies. The staffing and actual structure of the organization will vary based on the type and severity of an emergency. Table V-1 lists the .City personnel that will be trained to fill the emergency positions shown in figures. Each position has alternate ® personnel. Some personnel are cross -trained to fill several positions. The Incident Commander (IC) heads the Incident Management Organization. The IC has overall responsibility for the City s emergency management. By ordinance, the City Manager is designated as the Director of Emergency Services and is to provide policy guidance to the Incident Commander. The Police Department Watch Commander or the on -duty Fire Captain will act as the IC at the onset of an emergency. When a designated Incident Commander arrives at the City Emergency Operations Center (EOC), the acting IC will relinquish command and act as Deputy Incident Commander until command is stable and the arriving Incident Commander has been briefed. When the Incident Management Organization is mobilized, the Incident Commander is supported by five functional groups. The functional ICS groups are: • Command Staff • Operations Section • Planning Section • Logistics Section • Finance Section ® Except for the Command Staff, which includes the Incident Commander and support staff, each of these groups is headed by a Section Chief. The Section Chiefs comprise the General Staff, which is the management team under the direction of the Incident Commander. The Section Chiefs may activate functions as needed to support the operational needs of their assigned section. This section outlines the general responsibilities of the functional Incident Management Organization groups. The Policy group is comprised of the Mayor and City Council, and assisted by the City Manager and City Attorney. This group is responsible to provide legal and policy direction to the EOC Director and/or the Incident Commander. The Incident Commander (IC) has overall responsibility for all emergency operations. Depending on the type of emergency, personnel authorized to act in the capacity of Incident Commander are as follows: • Fire Chief • Police Chief • Public Services Director • City Manager • Designated Fire and Police Personnel The Incident Commander's responsibilities include: • Directing the Command Staff and General Staff. • Developing and implementing strategic decisions. • Approving the order and release of resources. • Activating ICS elements. .' Ensuring planning meetings are conducted. Approving and authorizing implementation of Incident Action Plans. Determining information needs and informing the Command Staff. Reviewing and authorizing the release of informa- tion to the news media and public. Ensuring the general welfare and safety of Incident Management Organization personnel. ® *Approving the plan for demobilization and recovery. The Safety Officer (SOFR) is responsible for monitoring and assessing hazardous and unsafe situations and developing measures for assuring personnel safety. The Safety Officer will make recommendations to the IC to correct unsafe acts or conditions. The Safety Officer will provide input in the development of Incident Action Plans to identify and mitigate safety concerns during emergency operations. The Information Officer (IOFR) is responsible for developing and releasing information about the emergency to the news media, to incident personnel, to other appropriate agencies and organizations and the general public. ® The Liaison Officer (LOFR) serves as the primary point of contact for personnel assigned to the incident by assisting or cooperating outside agencies. ThPr - are pprsonnel other than thnsa nn dirac:t tactical gssignmpnts nr thnsa invnlvad in a l InifiPd Cnmmand In some situations one person may handle both the Information Officer and the Liaison Functions. In large-scale emergency situations additional staff may be required in order for these functions to operate effectively. The Information Officer's/Liaison Officer's responsibilities include: • Gathering and disseminating emergency information. • Develop material for use in media briefings. • Obtaining Incident Commander approval for the release of information. Inform media and conduct briefings. Coordinating the release of emergency information to the public and news media with other agencies. Responding to special requests for information. ® . Providing information about the emergency to the Incident Management Organization. Be a contact point for Agency Representatives. • Identifying contacts and communication links with outside agencies and organizations. • Providing information to and responding to requests from interagency and intra-agency contacts. PlEff• RIM •I •. The Operations Section Chief (OSC), who is a member of the General Staff, heads this Section. The Section is. responsible for the following operations: • Providing and coordinating law enforcement services, including assisting other law enforcement agencies in traffic management. • Providing and coordinating public services, including providing and placing barricades and signs for traffic management activities. • Providing and coordinating fire protection services. • Providing and coordinating emergency medical services for the City. • Establishing and managing staging areas. • Ensuring the general welfare and safety of section personnel. The Law Enforcement Branch, Fire Services Branch, Public Works Branch, and the Medical Branch are examples of functions that operate under the direction of the Operations Section Chief. The Planning Section Chief (PSC), who is a member of the General Staff, heads this section. The Section is responsible for obtaining, evaluating, disseminating and using information concerning the developing status of the emergency. This information is needed by the Incident Management Organiza- tion to have an understanding of the current situation and develop appropriate courses of action to effectively manage the emergency response. The Section is responsible for the following operations: • Collect and process situation information about the incident. • Supervise preparation of the Incident Action Plana ® Determine need for specialized resources in support of the incident. Assemble information on alternative strategies. The Resources Unit, Situation Unit, Documentation Unit, and technical specialist are examples of functions that operate under the direction of the Planning Section Chief. U•• _« •. The Logistics Section Chief (LSC), who is a member of the General Staff, heads this section. The Logistics Section Chief, with assistance from several units, is responsible for providing the Incident Management Organization with logistical needs such as facilities, communications, equipment, emergency worker feeding and supplies. The Logistics Section Chief is also responsible for ensuring the general welfare and safety of section personnel. The Section is responsible for the following operations: Identify service and support requirements for planned ® and expected operations. Develop incident Communications Plan, Medical Plan and Traffic Plan. Coordinate and process requests for additional resources. Review Incident Action Plan and estimate Section needs for next operational period. The Equipment Unit, Communications Unit, Facilities Unit, Food Unit, and Supply Unit are examples of functions that operate under the direction of the Logistics Section Chief. The Finance Section Chief, who is a member of the General staff, heads this section. The Finance Section is responsible for all financial and cost aspects associated with the emergency. The Chief manages and is assisted by four units, The Time Unit, Procurement Unit, Cost Unit, Compensation and Claims Unit. These are examples of functions that are under the direction of the Finance Section Chief. The Section is 0 responsible for the following operations: • Manage all financial aspects of an incident. • Ensure that all obligation documents initiated at the incident are properly prepared and completed. • Brief Policy Group on all incident -related financial issues needing attention or follow-up. u 11) 0 TARLIF V-1 CITY OF •--• BAY The following section outlines position assignments for Incident Management Organization members. The assignments are made corresponding to position within the regular city organization structure by position only. To obtain the names and phone numbers that correspond to these positions, reference the City EOC Plan. Members of the regular city organization that are assigned to the Incident Management Organization shall be made aware of their assignment and offered special training for their incident management function. These assignments are recommendations only. Any person familiar with the ICS may be used to fill positions that are short on personnel, especially in the early stages of an incident. Pociti�n primacy Alternate Policy Group City Council Appointed Commission City Manager and Board Members (See - City Attorney Tableyl-t) ® EOC Director, Fire Chief Fire Captain Incident Commander Police Chief Police Commander or Unified Command Public Services Director City Engineer Capital Projects Manager Administration City Manager Department Head Assistant City Manager Management Analyst City Clerk Information Officer Management Analyst City Clerk Fire Dept. PIO City Attorney Police Dept. PIO Assistant City Manager 'Liaison Recreation and Parks Fire Captain Director Police Sergeant 'Operations Section Fire Captain Fire Engineer Chief Police Commander Police Sergeant City Engineer Capital Projects Manager 'Planning Section Fire Captain Public Services Director Chief Police Commander ® 'Logistics Section Capital Projects Recreation and Parks Chief Manager Director Facilities Coordinator Finance/Admin Finance Director City Accountant Section Chief Accounting Supervisor 'Interchangeable Positions C 11 •► •► • •' MA •► This section outlines the concepts under which the City will respond to emergencies. Though the City s response to emergencies will depend on the type and magnitude of the situation, many elements of response are similar. • • •Pk MA Some of the basic elements of emergency response common to all types of emergencies include the following: Event Recognition Notification of Response Personnel Mobilization of Response Personnel Activation of Emergency Response Facilities and Resources Situation Reporting and Assessment Public Alerting and Information Protective Action Determination and Implementation ® Reentry and Recovery Response to all emergencies involves the use _of the elements listed above. The type and magnitude of each emergency will determine the level of response necessary. Some emergencies can be preceded with a buildup period lasting from hours to days, which if recognized provide advanced warning to the population groups which might be affected. In certain instances, all of the emergencies addressed in the plan could be preceded by events that could be recognized as advance warning. These slowly building events allow the emergency organizations and resources to be mobilized and prepare for emergency response. In other instances, emergencies can occur with little or no advance warning. This will require emergency organizations and resources to be mobilized just prior to or after the onset of the event. Since emergency preparedness involves planning for worst -case events, the City of Morro Bay must be prepared to respond promptly and effectively and have provision for mutual aid resources if the response effort requires resources beyond the City's capabilities. The hazard -specific annexes contained in Part 2 of the MERP provide ® the detailed concepts of operations for each type of emergency addressed in this plan. B. AEI ITI JAI Ain rONrFPTS It shall be the policy of the City to utilize mutual aid as the primary means to expand the number of personnel and resources' assigned to the City's Emergency Organization. Mutual aid procedures should be consistent with the California Master Mutual Aid Agreement, California Law Enforcement Mutual Aid Plan, California Fire and Rescue Mutual Aid System, and the San Luis Obispo County Fire and Rescue Mutual Aid Plan. Mutual Aid, like the Incident Command System, is provided under the broad direction of the requesting jurisdiction and under the direct control of the aiding jurisdiction/agency. All assisting agencies that support this plan should work in cooperation with other local, state, federal and private agencies in an effort to maximize resources and minimize damages. It is further understood that mutual aid may be severely delayed and will require extreme cooperation between local surviving agency resources. #1 MeTeIVAN -q V, A major. disaster could result in great loss of life and property, including the death or injury of key government officials. At the same time there could be partial or complete destruction of established seats of government, and the destruction of public and private records essential to continued operations of government and industry. In the aftermath of a major disaster, law and order must be preserved and essential government services must be maintained. To this end, it is particularly essential that local units of government continue to function. Article 15 of the California Emergency Services Act provides the authority, as well as the procedures to be employed, to ensure continued function of government through the appointment of political positions, chief executives, and department heads should they be unable to serve in a locally declared state of emergency. In general the act allows for the governing body to designate and appoint up to three standby officers for positions it deems necessary. For City Council Members, if a quorum cannot be met due to injury, illness, or death during a locally declared state of emergency in Morro Bay, temporary appointments will be made to create a full City Council of five (5) members. Table VI -1, at the end of this section, delineates the lines of succession for the City of Morro 0 Bay. Should, during any emergency situation, the normal seat of government be unusable, the seat of City government will be moved first to the Morro Bay Community Center and secondarily to the City of Atascadero. Should, for any emergency situation, the city s primary EOC be unusable a back-up or secondary EOC will be established at the Fire Department or the San Luis Obispo County EOC. The City Clerk is responsible for the vital Records of the City of Morro Bay. These records are routinely stored in the Clerk's office located at City Hall.. Back—up data systems are stored off - site at a safe location. n LJ SERVICE / DEPARTMENT TITLE- POSITION Policy Group 1. Mayor and City Council Members 2. Planning Commission Chair 3. Public Works Advisory Board Chair 4. Recreation and Parks Commission Chair 5. Harbor Advisory Board Chair 6. Community Promotions Committee Chair 7. Planning Commission Vice -Chair 8. Public Works Advisory Board Vice -Chair 9. Recreation and Parks Commission Vice -Chair 10. Harbor Advisory Board Vice -Chair 11. Community Promotions Committee Vice -Chair City Manager / Emergency 1. City Manager Services Director 2. Assistant City Manager 3. Fire Chief 4. Police Chief City Clerk 1. City Clerk 2. Deputy City Clerk Human Resources 1. Personnel Officer 2. Administration Technician Fire 1. Fire Chief 2. Fire Captain 3. Fire Engineer/Acting Captain Police 1. Chief of Police 2. Police Commander 3. Watch Commander Harbor 1. Harbor Director 2. Chief Harbor Patrol Officer 3. Harbor Business Coordinator Finance 1. Finance Director 2. Accountant 3. Senior Accounting Technician Recreation and Parks 1. Recreation and Parks Director 2. Facilities Superintendent 3. Parks Superintendent Public Services 1. Public Services Director 2. City Engineer 3. Capital Project Manger Information Systems 1. Information Systems Manager 2. Computer Technician El is C • ► 11 ► L The Support Materials Section (Part III) of this plan provides a description of City emergency facilities and resources. It also provides guidance in the activation and operation of the City EOC. The Disaster Preparedness Advisory Committee shall direct City Departments (Fire, Police, Public Services and others) to establish and maintain emergency equipment, supplies, facilities and communications systems for use in disaster situations. The City Disaster Preparedness Advisory Committee will establish emergency equipment and supply inventory levels. Emergency vehicles, equipment inventory and a listing of available supplies are found in Part III of the Multi -Hazard Plan. C C •► VJ I In ':• :31l I AF.11 11,14 1 Ir.11M.-V W I • The Disaster Council has been established (Chapter 8.08 of the Municipal Code) to oversee and coordinate disaster preparedness measures in the City. The committee is chaired by the City Manager and includes department heads. The Disaster Council is empowered to, develop and recommend for adoption by the City Council emergency and mutual aid plans and agreements for the City. A Disaster Preparedness Advisory Committee (DPAC) is established to assist the Disaster Council with its work. This committee is chaired by the Fire Chief (Deputy Director of Emergency Services) and is comprised of representatives of the Police Department, Public Services Department, Recreation and Parks Department, and City Administration. This committee is strictly a work group for pre -disaster preparedness and does not convene during the emergency phase of operations. e.I I U.-• 0 This plan, in its entirety, will be reviewed, maintained, and updated on a yearly basis by the Fire Chief or his designated representative. The Basic Plan (Part 1) sets objectives and policy. for the City and therefore changes require the approval of the City Council. Part II - the Hazard Specific Annexes and Part III - Support Documents are tactical and reference documents and contain information that changes frequently. The Fire Department will be directly responsible for updating and revising the Hazard Specific Annexes and related Support Materials. Revision. of Parts II and III do not require City Council approval. Department SOP's, specific to the disaster annexes (i.e. Earthquake, Hazardous Materials, Flood and Wildland Fire Emergencies) shall be developed, maintained, and updated on a yearly basis by each department (i.e. Public Services, Police, Fire, Recreation and Parks Department). Each department shall send an updated copy of their SOP's to the Fire Chief via DPAC representatives. The Disaster Preparedness Advisory Committee shall direct City 0 ® Departments (Fire, Police, Public Services and others) to establish and maintain emergency equipment, supplies, facilities and communications systems for use in disaster situations. It is the policy of the City to sponsor and coordinate an annual disaster drill or exercise on a particular City emergency response plan. The Fire Department will develop and administer the drills or exercises. The primary purpose of these events will be to evaluate and improve the particular emergency response plan that the event is based on. The exercise or drill should also provide a beneficial training and learning experience to all its participants. All actions during the exercise will be observed and recorded by a multi-departmentrjurisdictional evaluator group made up of the departments participating in the exercise. A general "no fault' discussion and critique will follow the exercise. This critique will afford department players and the evaluator group with an opportunity to jointly comment on perceived strengths, weaknesses and needed improvements on the particular emergency response plan exercised. A closed evaluator group meeting will follow the critique for the purpose of recording on a consensus basis specific recommendations for plan improvement. These recommendations should then be submitted to the Morro Bay Fire Department within 30 days after the actual exercise. An actual activation of the EOC may substitute for the annual disaster drill or exercise. RESOLUTION NO. 04-08 ® A RESOLUTION ENDORSING THE INTEGRATED REGIONAL WATER MANAGEMENT PLAN PREPARED BY THE COUNTY OF SAN LUIS OBISPO THE CITY COUNCIL City of Morro Bay, California WHEREAS, the State of California has encouraged the development of Integrated Regional Water Management Plans to address the management of California's water and water dependent resources pursuant to the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002 (Water Code Section 79560 et seq.) (Also known as Proposition 50); and WHEREAS, The Integrated Regional Water Management Plan identifies goals, objectives, strategies and projects designed to improve regional water supply reliability, water recycling, water conservation, water quality improvement, storm water capture and management, flood management, recreation and access, wetlands enhancement and creation, and environmental and habitat protection and improvement. WHEREAS, the Integrated Regional Water Management Plan is the gateway document for eligibility to receive grant funding under many of the programs administered by the State including Proposition 50; and WHEREAS, The City is a member of the Water Resources Advisory Committee that coordinated the preparation of the Integrated Regional Water Management Plan, and WHEREAS, The City has included projects in the Integrated Regional Water Management Plan that ® may become eligible for grant funding through the preparation of the plan. NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council endorses the Integrated Regional Water Management Plan as prepared by the County of San Luis Obispo. PASSED AND ADOPTED by the Morro Bay City Council at a regular meeting thereof held on the le day of January 2007 by the following vote: AYES: DeMeritt, Grantham, Peirce, NOES: None ABSENT: None ATTEST: C Winholtz, Peters RESOLUTION NO. 03-08 ® A RESOLUTION AUTHORIZING A REPRESENTATIVE TO FILE A GRANT APPLICATION AND ENTER INTO A LOCAL GROUNDWATER ASSISTANCE GRANT AGREEMENT THE CITY COUNCIL City of Morro Bay, California WHEREAS, the California Department of Water Resources provides Local Groundwater Assistance Grants pursuant to the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002; and WHEREAS, the levels of nitrate in the City well fields in the Chorro Valley Basin are generally rising; and WHEREAS, the threat to our local drinking water supply from nitrate contamination in the Chorro Valley is threatening the continued use of this important water source. and WHEREAS, A Nitrate Study of the Chorro Valley Groundwater Basin will help determine the source and causes of the nitrate contamination and transport in the basin; and WHEREAS, there is $6.4 million available for competitive distribution and project applications for the 2007/2008 LGA grant program were due December 11, 2007. NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council authorizes the Senior ® Civil Engineer to submit applications to the California Department of Water Resources, conduct the necessary investigations, and if awarded a grant enter into a grant agreement for the Nitrate Study of the Chorro Valley Groundwater Basin. PASSED AND ADOPTED by the Morro Bay City Council at a regular meeting thereofheld on the 14m day of January 2007 by the following vote: AYES: DeMeritt, Grantham, Peirce, NOES: None ABSENT: None ATTEST: BRIDGETT BAUER, City Clerk 11 Winholtz, Peters ® RESOLUTION NO.02-08 APPROVAL OF A SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 65-66/65W-66W, LOCATED AT 571 EMBARCADERO, BETWEEN ABBA AND KRISTEN IMANI AND KENNETH MACMILLAN, NDITH MACMILLAN AND MARK MACMILLAN DBA, DESTASTIO'S ON THE BAY THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 65-66/65W-66W, located at 571 Embarcadero; and, WHEREAS, Abba and Kristen Imani are the lessees of said property; and, WHEREAS, Abba and Kristen Imam have requested City Council approval of a sublease agreement for a portion of Lease Site 65-66/65W-66W with Kenneth MacMillan, Judith MacMillan and Mark Macmillan, dba DeStasio's on the Bay; and, WHEREAS, the Imanis have completed the assignment application form, paid ® the assignment fee and provided background information on the proposed sublessees. The Consent to Sublease agreement has been executed and a copy of the sublease agreement has been provided to the City. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that a sublease for a portion of Lease Site 65-66/65W-66W between Abba and Kristen Imani and Kenneth MacMillan, Judith MacMillan and Mark MacMillan, dba DeStasio's on the Bay is hereby approved and that the Mayor is hereby authorized to execute the Consent to Sublease documents. PASSED AND ADOPTED by. the City Council of the City of Morro Bay at a regular meeting held thereof on the 14 day of January 2008, by the following vote: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ® CONSENT TO SUBLEASE AGREEMENT THIS CONSENT TO SUBLEASE AGREEMENT is entered into this day of ,2008 , by and between Abba & Kristen Imani hereinafter referred to as TENANT, and Ken Mark and Judy MacMillan dba, De Stasio's on the Bay hereinafter referred to as SUBTENANT and approved by the City of Morro Bay, California, hereinafter referred to as CITY. RECITALS WHEREAS, a Master Lease for Lease Site 65-66/65W-66W was executed between on February 1, 1971, and was assigned to Abba & Kristen Imani on October 27 1997; WHEREAS, TENANT desires to sublease a portion of the premises to SUBTENANT, and: WHEREAS, the Master Lease requires CITY consent of any sublease in the following form of agreement. NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. TENANT and SUBTENANT jointly and severally guaranty that TENANT will pay to City all of the sums required of TENANT and any sums due by reason of SUBTENANT's activities under the terms of the Master Lease dated February 1, 1971 hereinafter known as "Master Lease". In the event TENANT fails to make such payment, upon receipt of written notice of such default by TENANT ®from CITY, SUBTENANT agrees to promptly make payment of its rent obligation under the sublease directly to CITY. Failure to pay such rent shall constitute a violation of the Master Lease and CITY shall, after three (3) days written notice to TENANT, have the following options: (a) CITY may elect to pursue all legal remedies against TENANT alone under the master lease or against SUBTENANT under the sublease or both. CITY'S election to pursue one instead of both of the parties shall not preclude a later action against the other party to recover any amounts not paid and both TENANT and SUBTENANT agree that they are to be jointly and . severally liable for any breach by the SUBTENANT. (b) CITY shall have all other legal remedies provided for in the lease and allowed by law, including the right to bring an action for unlawful detainer against SUBTENANT, TENANT or both for non-payment of rent by TENANT of SUBTENANT'S portion of rent due to CITY. 2. SUBTENANT specifically agrees to comply with each and all of the terms and conditions of the Master Lease. TENANT guarantees SUBTENANT's compliance with each and all of the terms and conditions of the Master Lease, and all of the parties agree that a violation by SUBTENANT of the terms of the Master Lease shall constitute a violation of the Master Lease by TENANT. TENANT agrees to take whatever action is required to secure SUBTENANT's compliance with each and all of the terms of the Master Lease, and agrees to indemnify CITY, as Landlord, from any and all claims, loss, cost or expense resulting from SUBTENANT's failure to comply with the terms of the Master Lease. 3. The term of the sublease attached as Exhibit A shall be years commencing ®upon execution of said lease and this consent to sublease, provided, however, that the term of the sublease shall not in any event exceed the terms of the Master Lease and said Sublease shall, in all events, terminate upon termination of the Master Lease for any reason, including, but not limited to, a termination which occurs as a result of court judgment. Page I of 3 4. Pursuant to the provision in the Master Lease requiring TENANT to pay rental based on percentage of gross sales, SUBTENANT agrees to and shall keep full, complete, and accurate records, and books of account in accordance with accepted accounting practices as outlined in Exhibit B showing the total amount of gross sales, as defined in the Master Lease, made each calendar month in, on or from the subleased premises. SUBTENANT shall keep said records and books of account within San Luis Obispo County and shall notify CITY in advance of their location at all times. Said records, books of account and all cash register tapes, including any sales tax reports that SUBTENANT may be required to furnish any government or governmental agency, including but not limited to those items listed in Exhibit B attached hereto and incorporated herein, shall at all reasonable times be open to the inspection of TENANT, CITY, CITY'S auditor, or other authorized representative or agent of TENANT or CITY. 5. SUBTENANT acknowledges its duty to secure a copy of the Master Lease and each and all of the amendments to that Master Lease from TENANT and to review each and all of ther terms and SUBTENANT agrees to comply with each and all of the terms and conditions of those documents. SUBTENANT acknowledges and agrees that this duty exists between SUBTENANT and TENANT and not between SUBTENANT and the CITY. 6. The proposed use by SUBTENANT is as follows: Percentage of Gross Rental Applicable to Permitted Use: NOT APPLICABLE Said designated use shall not be changed without the prior written consent of CITY. SUBTENANT acknowledges that the percentage of gross payment required for the proposed use under the terms of the Master Lease is as set forth hereinabove. SUBTENANT agrees that any use by SUBTENANT of the subleased premises for a purpose other than that specified in this paragraph, whether or not permitted under the terms of the Master Lease, shall constitute an unauthorized use subject to those penalties set forth in the Master Lease. The location and size of the proposed use shall not be altered without the prior written consent of the CITY. Specifically, and in addition to any other terms and provisions of the lease, all parties agree that if SUBTENANT makes a use of the subleased premises which is not included within or permitted under the terms of the Master Lease, TENANT shall be liable for and shall pay to CITY, 10% of the gross revenue from such unpermitted use. 7. SUBTENANT shall not alter or improve the premises or any part thereof without first obtaining the prior written consent of CITY. 8. SUBTENANT agrees to submit a statement of previous business experience and agrees to submit current personal and business financial statements upon request and further agrees too submit such documents as part of the CITY's consideration of the consent to Sublease Agreement. SUBTENANT shall not assign, mortgage, or encumber the subleased premises in whole or in part without the prior written consent of CITY. 9. Unless SUBTENANT is included as an additional insured under the terms of TENANT's liability insurance, SUBTENANT agrees to maintain adequate liability insurance in the manner and form required under the Master Lease in an amount of not less than $1,000,000 per occurrence and agrees to name the CITY OF MORRO BAY as an additional primary insured without offset against the CITY's insurance. SUBTENANT agrees to provide the certificates of insurance and copies of the actual insurance policies to the CITY as required under, the Master Lease and otherwise comply with the insurance requirements set forth in the Master Lease. CITY reserves the right to require reasonable increases in the liability insurance coverage from time to time. Page 2 of 3 ® 10. SUBTENANT and TENANT agree to indemnify and save CITY free and harmless from and against any and all claims, including reasonable attorney's fees and court costs arising from SUBTENANT's failure to comply with any of the terms of this Consent and Sublease Agreement. 11. This Agreement cannot be modified except by a written document mutually approved by the parties hereto. A waiver of any of the conditions or terms of this Consent or of the Master Lease shall not constitute a waiver of any future breach of any terms or conditions of this Consent or the Master Lease. 12. Attached as Exhibit A is a true and correct form of the proposed Sublease between TENANT and SUBTENANT. To the extent that the terms of such proposed Sublease are inconsistent with the terms of this Agreement or Master Lease with the CITY OF MORRO BAY, this Agreement or Master Lease shall supersede and be the controlling document. To the extent that this Consent to Sublease Agreement is inconsistent with the terms of the Master Lease, the Master Lease shall supersede and be the controlling document. IN WITNESS WHEREOF, the parties hereto have executed this Consent to Sublease Agreement as of the day and year first above written at Morro Bay, California. CITY OF MORRO BAY A Municipal Corporatior By: _ Janice 11 Abba & Kristen Imani ,b_ Kristen IMani �i SEAs�s SUBTENANT: De Statics on the Bay Ken MacMillan Mark MacMillan Judy MacMillan Page 3 of 3 NOT APPLICABLE EXHIBIT "B" CONSENT TO SUBLEASE AGREEMENT At a minimum, certain books and records shall be kept by Lessee and Sublessee such as: 1. Pre -numbered and dated guest checks; 2. Pre -numbered sales invoices or daily cash register tapes; 3. Bank Statements; 4. Sales Tax Returns; 5. Sales Journals; 6. Cash Disbursement Journals; and 7. General Ledger C C m is made on November 21, 2007, an Section Recital—& (a. Partiesl this e II 1`I11 : •1 i."1 I'I•: 11'%Itl hereinafter- I =• 11 i.V 1• :n • HI 1 1 1 i : 4 «111 1 -11 1'i - 11 -IL. ii it U :wV • 11 V•`I Y • L -t\ I 1 \ IIY 11 1\Ir: J = 11 Ill. Y\ 11✓111 it 1 i 11 1 411 U 11•- I'll • It" 1 �:w 111• •YI 1111 • 11 11:- li•Ilw VUI - IC 1111. Il [ conditions contamw I:i II •' =111 1 ^�V.• 1 =1 • • 1 • l • 111" •` 1 • 1:_ Y• 11 111 t known :4 _Me Saft i•11 1111' 11 • til 1 VI :q described: :4 �. 1 ( /1 •a 1 V: Il 1Morro LI LAAS• s/ 1CounlY, 111•i•11 : Lc.i11 1 : =111 1` 11:- 111 1.: i[!1 t i:l • commencing 1 11 • t November it ( :and =1.un :112:01 a n November 21, 2009 unless`• terminated as 1:= in r • • _• 1 111 =11 :1 .n n 1 /as ill 1 J 1 11 1 = ua wl ❑: Suite Section 1.11 1 11• �V Y. U :d i1.V" 1agreed, between. the. tlt'1 (a) be am of the premises amulable 11 Suite 1 • :1feeL11-ig •1 :111• 111/: • 1 11 1 area y Ir•I^ feet.1: 1 h •• =111 :111 t•111: • " to • ❑l \ 1 ' • • I':1 dl :1 i :IIt1 1 t11: • - 11 • 111 [.1 1 eating space assoc=-i�-- wim.aultv i:ltil VI':Y associated V✓.II=t 111 Suite:11.1 / 1•'I I 1 11 11 111:1 111" City ofMorro might besuccessful 11 al • 1 change 'I I 1 i:K-- 11 requirel i YiIU: _• 1 gfum-salcs type 1': - Il i•1 lit as Exhibit of IIKI thenLessee t': said percentage 11 lessor 1 n.- 1Morro w\ 1' •`In• :w t :•:\ 1• :11 .1114 t =.\ _- that-- Section illl " 11 `�Y.1 - existing on;thetermcommencementIU:11 YIIwithout::ga 1 1• 1Iti h C =111we1.1 1.•• •:n" :11 �YI i ant 13 I n`"1• •• 11 .1w`•• 1 :It •'11 • [111':II. Y"11 I i V• 1• FYI •• 11:1:I• • 1 V: 1 IuIllt _ Y• • � _1=11 YInIme LYi1 en at 111 =11 1li.l11111:%111':1 1!1.:•:1•1:111 1•:< 1\ ateILl11- 1:• "11:"\ •`la• • 1• h �'•: fw • •hl IN•\ ✓1 • 11 w\'=11 111111 l:1 ti: 1 `I . c•s :n:l�•-•• ^1\ n iVlify :1 - .1 • :11 •11V lrl'1 L�/ilvl.• 1=1tlw.w i/' 1'll.i • 11 • 1e111 Li i/ =11:il:" ?Illw` nIl:il ♦•'1:/11[nlef.•:•It_ 1h that Lessee/: VK possession ofthe Pre=sm 11 :n Upon ' I use paying the rent for the PremisesIi1 I Ili/ performing all \ 11.� YI 'lr;llll. Y\ 111 1 1`1 :ILI provisions\'1 lesseespart observing : to be observed :II'.1 performed hereunder, Lessee shall havequiet possemon 1 11 _ 1 1 :M qall Of the 1\ v\ IA of thislease. / F111 � 1\ the �1 11 - i111 L� >\ Article 2. Term. Section'2:1. Initial Tema. The initial term of this lease shallbe as set forth in Section 1.1. :'Section 2.1. Smze�: On the last day of the.termof this lease, or any earlier won, Lessee shall surrender the Premises to Lessor in the same condition as when received ordinarywow and tear exerted, clean and free of debris Section 23 Ownerow on Surrender. All alterations, improvements, additions and utility insb�ions.(whether or not,such utility installations constitute, trade fixtures of Lessee. but egmmly excluding any trade fixtures that may be removed by simply discouriectimg from electrical and plumbing services and/or-liftingand removing and without damagin8 the premises) sslmll be the property of Lessor and shall remain upon and be surrendered with the Premises at the expirgtion of the lease. Notwithstanding the provisions of tins Section. Lessee's machinery and equipment, other than that which is affined-to the premises, and other than utility installations, shall: remain the property of Lessee and may be removed by Lessee subject to the provisions of this Article. Section.2.4. Deposit Refunds. The balance of all deposits shall be refunded within two weeks from deft :possession is delivered to Lessor or his authorizing agent, together with a statement showing any Charges Made against such deposits by Lessor. Section 23 First Right to Negotiate New Lease:. Lessee is hereby granted and shall have, if not at the time in def nh under this lease, and if Lessor has successfully secured an eastrmtion ofthe Lease between the Lessor and the City ofMoao Bay, a first right to negotiate a new four (4) year lease upon the completion of lease period. Lessor hereby agrees to negodate in good f M and,on.reasonable teams, based on Les or's heanzed its in land cost, taxes, uhlity costs, jenitoriallganinouu ing costs, bsaace pi�miums and maintenance costs, on simr7ar — si nation .leases along the Central CWHomia:toast (Avila Beach,: Mona: Bay, Camba and son Simeon) andtheLos Along Beach -Anaheim all.Urban Constmaer Price Index; Section 2.6-ExerciseFirst Right to Negotiate New Lease: Ninety (90) days prior to expiration of lease or renewal ten, Lessor shall give Lessee notice of Lessee's right to negotiate anew or renewal lease. Lessee shall have the right to comma such negotiation by :Lessee's delivering to lessor within sixty (60) days from notice of Lessee's right as mentioned, above, written notice' -of Lessee's unequivocaldesire- to renew, this lease as herein provided. Should lessor fart to give lessee such notice, Lessee ® Imam- Lease Page 3 Shall have the right to negotiate such eon of the Lease or term NVleha or not during the lease or renewal to mL Secti=2,7 Holding Over. -Should Lessee hold ova add cOutimIC in possession of said Premises after termination of the teon of this lease or any rewwal:or extension of the term of this lease, Lessee's continued occupancy of said premises shall::be deemed merely a tenancy from month to mouth subjed to all the Lens and oafs; including the provisions for additional rent, cow in this lease:�provid4- however That all fast fights to ,date new or renewal lease and fights of first rdu-Sal, if any; granted under the terms of this lease sball be deemed tmrminated and be of no fiat>rer effect dating said moMth —to — month tenancy, except as prvvided in above Section 2.6: Article 3. Rent Section 3.1. Base Reat Lessee shall pay to Lessor in advance, on the fifthieCuth day of each month as rent for the premises each mouth, the sum, provided in Article 1 Secfirm�l: -l: Lessee shall pay Lessor such rent on the term commencement date bereof as initial base rent. Rent for any period during the, term baeofthA is-for=less than oe (1) month shall be a pro rats portion of the monthly installment. All payments due Lessor mxkr this lease; zeut shall be payable in ImM money of the United States at such place as Lessor may designate in writing. ® Section 32 Rental 13eoosR = Lessee shall be required to post a rental deposit in the amount of free thousand dollars (55300.00) and a three th0US8nd-dollar ($3000.00) cleaning security deposit Section 33' 1 Damon of AdiustmeW Factor The anmral°adjustrrent factor referred to in Section 33 shall be greater of (a) the proportion of the latest value of the Consumer Price hndes for All Urban Corwin, Los Angeles — Long Beach _ Anaheim Average, pnbli b d by the united States Department of Labor, Butean'of Labor- statistics (herebaftr maned tb as CPI is available prior to the Execution of the lease, and.(b) an annual bxzw a of flour (4) percent tines the number of years elapsed plus one hundred, but (c) in no case: shallthe anneal;a3ustment ftcczor exceed -and anal iucreaae, percentage of C7) percent times the mmsber ofyaks 'elapsed plus one hundred..:: Section 332 Substitutes/AddW9M to Section 32. & bstitates €at CPI for any reason, the :CPI is uwvailable or discon inned, the.annual increase hercuarler shall be determined the United States government, -or -in the absence. of a mdeg, by the refeze� to such commercially reasonable and.generally, accepted criteria as are the utilized between commercial landlords and rams in San Luis Obispo County, CAlifOnA _ . _. imam=Lease Section 333 EYsmrle of Rent Adinshm mt To illnStrabe the rent adjustment using values unrelated to the present lease, assume the following values- - Initial base rent $100o pea monith:. ...: ,. Initial CPI 300 Automatic annual increase , 4 percent : .. Rent to: be added at end of fanth,yew forIbe fifth year Latest CPI 330 .._ Albanative Ammd Adjustment Factor (a) = 330 / 300 =1.10 _ Alternative Annual Adult Factor (b) = 4%x 4 yxa + 1001/*=1.16 Alterative (b) is greater,1.16, thereof the next year's rent will be the base rent ($1000) To illustrate the rest a0mbnent using different values again belated to the :. . present lease, assmme the following values: Ini base rent $IOOO pce mondh .. Initial CPI 300.:::.. Automatic annual increase 4 percent Reaw be.a4usted at end.of fiwath year, for fifth year : Latest;CPL . 360 Alternative Annual Adjustment Factor (a) = 360 / 300 =1.20 Alternative Aral A rstmeat Factor (b) = 4% x 4 yrs + IOOOA.=116% =1.16; , Alterative (a) is gmater,1.20, therefore the nextyears rest will be the base rent ($1000) 1"rmes 1.20 = $1,200. .: Section 3.4. Pcmmd Property Taxes Lessee shall pay, prior to delinquency, all taxes assessed against. and levied.upon trade fndmes, furnishings, equipment and all other persona, property of Lessee Contmned m the premises or elsewhem. When possible, . Lessee: shall cause: said trade tiffs,fimAsbinMcqahmxmtimdaUotherpm&lc . personal property to be assessed and billed separately from the real Property. Lessee shall pay Lessor the taxes ammlyrnable to Lessee within tan (10) days after receipt of a wdttea statement setting £omihthe taxes, applicable to Lessee's_PI%X y.; . Section 35.. §Mg ofRerd . Any monetary obliPhM of Lessee to Lessor under_ the-temrs;of this lease "be deemed to be rent, Article 4. Use. Alteration of Premises :... : . :•, 4.1..:Use of Premises. The premises leased are to be used for tffi9 arpose .Section of operating and conducting gxxc a and therein a restaurant or food service; : _• .. Establishment, and for uses aamrally incident to such purpose. Lessee agrees to reshm t their use to mach purposes, ® Imam- Lease Page 5 Including the sale of food, beer and wine and not to use or permit the use of the premises for any other purpose without first obtaining the consent in writing of Lessor, or of Lessors agent. Section 4.2. Restricted to lawful Uses. Lessee covenants that it shall use the Premises in a lawful manner and for lawful purposes only. Lessee further covenants that it shall maintain said Premises in a clean and sanitary condition and in compliance with all laws, ordinances , rules and regulation (including the provision of fire extinguishers as required) applicable to said Premises enacted or promulgated by any public or governmental authority or agency having jurisdiction over said Premises. Lessee shall at Lessees sole cost, keep and maintain in good condition, the premises and appurtenances, and hereby waives all right to charge Lessor under Sections 1941 and 1942 of the California Civil Code. Section 4.3 Ordinance and Statutes. Lessee shall comply with all ordinances, statutes and requirements of all municipal, state and federal authorities now in force or that may hereafter he in force pertaining to the premises. The commencement or pendency of any state or federal court proceeding affecting the use of the premises shall, at the option of Lessor, he deemed a breach of this lease. Section 4.4. Insurance Hazards. Lessee shall not commit or permit the commission of any acts on said premises nor use or permit the use of said premises in any manner that will increase ® the existing rates for or cause the cancellation of any fire, liability or other insurance policy incuring said premises or the improvements on said premises. Lessee shall, at its own cost and expense, comply with any and all requirements of Lessor's insurance carriers necessary for the continued maintenance at reasonable rates of fire and liability insurance policies on said premises and the improvements on said premises. Section 4.5 Signs. Lessee may erect and maintain sighs pertaining to its business name and logo on said Premises provided the signs so erected. (a) Comply with all applicable city ordinances and meet with Lessor's approval, which shall not be unreasonably withheld, and (b) Are removed at the sole cost and expense of Lessee without damage to the building or to said Premises on expiration or sooner termination of this lease. Section 4.6 Waste or Nuisances. Lessee shall not use or permit the use of the Premises or the common areas in any manner that will tend to create waste or a nuisance or shall tend to disturb other occupants of the building. Section 4.7. Real Property Taxes. All real property taxes and assessments levied or assessed against said premises by any government entity, including any special assessments imposed on or against said premises for the construction or improvement of public works in on, or about said premises, shall be paid, before they become delinquent, by Lessor; provided, however, Lessee shall conduct no activity on said premises nor place any articles on said premises that will increase the real property taxes levied or assessed against said premises without Lessors prior written consent. ® Section 4.8. Alteration and Additions. Lessee shall not, without Lessor's prior written consent, make any alterations, improvements, additions, or utility installations in, on, or about Imam - Lease — — Page 6 the premises or the building. Lessor may require that Lessee remove any or all of such alterations, improvements, additions to utility installations the :expiration of-the,term of this lease, and restore`the Premises and the budding to the condition in which zt existed. on the date of commencement of occupactcy. lessor may require Lessee to provide Lessor, at Lessee's sole cost and expense, alien and completion bond. in an amount equal. to one and one-half times thi-estimated cws< of snch• improvements; to instue lessor agaimSt and liWxTdy for mechanics' and materialmea's liens and to assure completion of the work. Section 4 9 "Special Provisions. The Lessee shall keep the I»: gdoelitl acceptable conditions, ditions, includingcleantngrgiass vrindows -. Lessee-_sfialI Win heed off during "closed time and shall have a maximum of 60 watts of lighting during "closed time" Lessee- shall maintain premies open for business as a, minimum unless given approval for change by Lessor, between May,15 and October 1, everyday of. the week,. and between October 2 and May 14, every day of the week except. Tuesdays; in each case_ to be open fok both .lunch and dinner. However, at the discrcdon, of the Lessee,:;the; P may be closed on New Years Bay, Sunday. Thanksgiviug.and: Christmas Day. Lessor shall have. the right to adjust required open times and days to maintain consistency among taiants.andJor to abide by City ofMorio Bay requirennents Lessee shall. be:responsrble %r.exterior everyday janitor maintenance and for downstairs bathrooms and maintemance'of that.plani life located iii unattached plairters' and west end. of arcade way around tree Lessee shad be responsible for'gas heater pme.. at eating deck. Such maintenance shall be kept to the satisfaction of Lessor. 5. Authority and Effect ® Imam- Lease Page7 Section 5 4 Sole and Only Ap t -, This the Sole and only agreement between the ides respecting the leasing of said Premises to I.essae, or the lease terms herein specified, or:any.matter meah�her d er4 c�ectly.sate fourth the.obligations of the -patties to each other as.of its date or:eaecatins. Any and all prior agreements, or represcowim respecting the leasing of said Premises by Lessor to Lessee not expressly set forth in this instrument are mall and void.in_intetest at This lease maybe modified only by and i�ment in writing, sighed by. parties the time ofthe mom Articta F iit➢litics and Services Section 61 1 hilities and Services: Lessee shall pay all charges for the famishing of gas water and_normal. eladactiy, and other. public ufitw s to said premises during the: term of this lease, of any baron thereof Lessae shall pay all charges for telep :service,.garbage service, Ititrhen and spate Power for lessee's premrsea' Article 7. Insurance: Section 7.1Reaaired CoverseD. Lessee, at lessee's own expense, shalt nmimain in fall force and effect during the term of this lease, plate glass and public liability -insurance, including bodily injury, and property damam inuring lessor and Lessee with minimum coverage of $1,000,000 personal iEONY liability and $500.000:property liable;=ln -Lessee shall be responsible for all deductible amo®tL lessee shall provide Lessor with a Certificate of ® insurance showing Lessor as an additional insured. 2 = Waiver of m5ro�tion Lessee and Lesswcadr Hereby release andrelive the other, and waive their entire right of recovery against the other for loss or damage arising out of or into the perils against which peals occur m, our or about the Premises. lessor shall, when obtain the palfces of MS=n a rNuired,.gWe notice to the fnsuraace required, gnre notice to the insurance carrier or carriers that the fmcgomg mutual waiver of subrogabon, is contained .in this lease. Section 73 Lessee shall deliver w Lessors copy of liability msarmm policy as required 1 ar a certificate evidencing the woe and mnam s of such insurance within seven (7) days after the oft data No such policy irty be: � cancelable or subject to reduction of oovera� or other mom cxcepts prior written notice to Lessm and to lessee. Lessee shalt, at least thirty (30) days prior to the expiration of such polices; famish Lessor with renewals or"bi ulcrP thereof . . Sermon 7 4 Review oflasmaace Coverage. The parties shall review and a4ustthe . applicable insurance iimtls with regard to the fee insurance and.psopettY demageportions of their respecti9e pow ovary year, wing from the team oomirmcament date. It is agreed that: the replacement cost of the Salt Building as of the data ofthis lease is $1,000,000-00. At the time of watch periodic review, the applicable insurance limits ref4aeed to herein may be rommaed in the samze proportion as any increases in the FAgmeemigNews Record "Bmktmg Cost lodes" for the Los Angeles area u Lnani=Least Pam 8 Se , ationF8.1. TLesso2s (lbh s . Subject the Provisions of Section &5 and Article 12r: , And=cept for damage d by any negligent or intentional act or omissi� afl.ess & lgswe's empUrjoesartavems6inwbichaveoRIRssaeshadwpWr:tite.dama$r;Lessor,atLassoes expense, shag keep in good order, condition and repair the fo ndation, eabeaior.walls and the exteriormofofthe Premise Lessor stall not, howeverbe oblpmed to paint sod► exterior, nor shag l assor:be.regmred to mamtem the mien r surface of exterior walla, windows, doors, or plate gkm Lessor shall have no obligation to make repairs undrrthis Section 8.1' rum7 sieasorable time efts receipt of written notice ofthe need for such repairs. Lessee expressly waives the benefits of any stsmiAe now or hagafterineffeettliatwoaldotherwiseefl6rdI.esaeetLerWtompkenepairs.atLem- is ®ip�se ortogate this lease bey OfLeganes faii aeto keep the Pr wdm in good order.• orrepav , - Section 8.2. Aceess and Permits. Lessor may eater upon the demised Premises for the purpose ofpafonn ng the obligatioosbeaein provided, and may procure, either in Lessor's or Lessee's name, any and all permits required under existing laws fur out construction and/or opt ofthe Premises; sue, should izssor:ele Ito, do so then, upon demand of lessee, 60 assign and Uanslie r said pew to Les4ae m ptoperfn®, 100064911H ragoirernautS oflaw: LMM shall not unreasonably ire with Lessee's operation and doff promptly restae the premises to the condition Mowing ay eorohurOaa activhles ;. _lwaddition; Isasaraod Lessor's aged shellhave therightEo.eaathepremises as. reasonable times for the purpose ofinspecting the same, showing dw zo ato.paspactive .:.; purchases, kmders, or bees, and making such alterations, repairs, improves or adds to the ptendgea cc ft haft ofwMch fty are a part as Lesowmey.deem aecesasry or desirable. Soctwn 83 Notice of Hrtrye To the and mt teseooably poems any. Cary by Leaaorar Lassoes ageotas pitted by thisarticlo sha8 be byappoi wifty --- and upon at least .. tsveaty-fog(24) hours priornotion' Seca on 8A. Lessor's Sips. Lesser may, at any time, Place an or about theprrfflises any ordinary "For Sale" signsLessor:may at any duangthe ]ad may (60) days oftha term bereof pbw:on a aboatthe Premises auyordmwy "ForI.eme :dgos; ail welmnt rebate of rent. ; andwithouttieb tyofI .=:,:`: Sectkm-85 Leamea0blipfowL., rmDept as otherwise expressly provided inthe lease, Lessee sbaU at its owe cost and espanva keep• inall:portions of said premises, inclnd'orgthe waAway adjacent to Lessee's Premises and all improvements and focilitiesa11ar1 - to said in good order and rapsk and ffi:as se fe and dean condition as they.weie when received 1... 7:mees:sw�n3 acaer. -- '-�Jrftirta�. ,a:a:` llAmwaamn'aim -nish ain dwk- -:: . heaters and all exterior tables anti Moots, which wiH beref wished with a ciowlarapereat product as-fiecessary to martin a clean shean4ilm appearance.. E E E Page 9 Article 9 Assieament ands Subletlinir : Secdm 91 NoAhenafim Lessee shall not have 9re right to voluntary or by operation if law assign, transfer, tnortgage, sublet or otherwise transfer or encumber all or any Batt of :. Lessee's interest in the lease lw in the premises, .with Lessor's written consent, shallbe based on personalaswell as uncial analysis of proposed new tempt his, her or its personal history� business history, financial stability and reliability and ability to week with I essay and other Lessee's of bmldmg. Sand analysis shall be reasonably made: Lessorshallrespond to - Lessee's request for consent limetmdw in a timely nano; any attempted assignment, transfer, mortgage, encumbranceor subletting without such consent shall be void, and triad constitute a breach of this lease. Section 92 Lessee Alta N" the P of Section 9.1: Hereof, Lessee may assign or sit the Premises, or any portion thereof wflthont the Lessor's consent to any corporation that controls, is Controlled by, or is unde common control with lessee's consent,: to any corporation resulting from merger or consolidation with Lessee, or to any person or entity that acquires all ofthe assets ofLassee as ageing cmncem ofthe business that is being wed on the premises, provided that said assignee assumes, in fail, the obligations of Lessee tinder this lease. Any such assignment shall rot, in any way, affect or limit the liability of Lessee under the terms of this lesse eve: if; after such assigurnent or subletting the terms on this lesse are - materially, hanged or aLaed withovtthe consent of Lame, the consent of which shall ant be necessary. . Article 10. - Sale by Lessor. car..:..., in t re3see Rhaht tD Sell. Lessor shall have the. right at any tmie during term of this laweo, to sell the andedying leasehold of the Premises in response to a bans fide offer for the purchase thQeoE Thesaie of the Premises to third persons shall not in any way adtaersely effectthe rights ofthe Lessee order this lease; which shall ic®am in fall force and effect bath as to the original lease team, and as to any cKtansiow hereunder. Section 102 L.essee's Right too Fast ReSosal Should the Lessor, diming the lease term or any extension thae04 elect t o WJI all Or any portion of the leased ptemisas, Lessee shall ban the riglitto fast reliant to meet any -bow fide offer to purchase on the same terms and conditions of such offer, and on aRm to [ such boon find offer whin thirty CA days after writlra mace thereof firm L esso>; Lessor shall be free to son the premises or portion thereof to tie person ninkm sort Original offer to phase m accordence wrtb ile terms and conditions of such Original offer as communkstedto lessee, The first right ofTcftel shall not apply to sales or transhrs to Lessor's family members ('momdiog brothers, sisters, grandcnldren maces and ncphews� heirs or beneficiaries under any will, test or estate plan of L.essar. Articlall` LimiiatimofLessees Lisbiln. v. .Section 11.1 lndemntt)r. Lessee shall inderradify and hold henaless Lessor from and against any and all claim arising fiom Lessee's use of the Premises or common areas' or from the conduct of Lessee's business of from any activities, worst or things dame, Permitted or h�ni=:Lease Pa®e 10 Su>%red by Lessee in or about the rtamises or elsowhe% and shall fkudm indemnify and hole hanroless Less" fiiom and against any and all40w arna ug from any breach Or defank re the pa *rmavoe of any obligation of Lessee's part to be peed order the teams of the lease orarismgfrom ut act cr-braission"of this Lessee: or any of Lessee'sagpads,moorsor emploYets6- and flam'and agatost'all oona. atbomey fee°s'.mcpeosev and liab s incased is the . defense of any cash claim or any: such action or proceeding hmugbtthe WM and in case any. action, or.proceedings beb tagarnstIeseor•llyreasonofanysuchclaim,Eme,apau no. tice. from Ltssoy shall defend ibe ageng, at Lessee's espease by:couosel sabsSCURY to IAWW. Lessor shall cooperate wi@r Deis sadrdefense. .._ file event of damage Otd89hnCt10ROfih6"- Promises, e$her Lessee or terror may elect O terminate the lease upon the occurrence of any one Of the following. .(p (provided, in the am Subsections (a) ,and (c).below, such 'election shall be made -and c tedto,dooIbwparWwhbiaftW(30)dais Mlowing the occurrence of such damageordevtluclinn) (a) The cost Ofnpaningthe building inwhichthe premises L4lecated exceeds fifty -...percent(50%).(iftbalcolSOciamtcostafibe-bttiidiog� - (b) Tba wet of I n 6r mpaa.aft o damapd or destroyed bwlft homing the promises does not comments withima period of*idy .(30):daystollowiog issuance ofallnteoessarybildingaodalhOr.parentsrelateIto iepe" gtbedamageto Or destruction. ofthe bmldm& or, following cold of such wcd6 the work is . not carried cot In completion M amgulac and covert Mannar wdhotrt unreasonable delay (c); Damage at destruction oecros dmiog lestsis (46) mod► ofthelerin ofthe leases . provided 'm the;evatthat Lessee has an optionro eaiend cr-renew this lease;-andthe.:, . time within which the option may be 'has no yet eapaed; i essee aII eaercise each option, Wit is to be eaacised at all, no latter than twentY (20) days after the occurrence ofthe damage_cr destructionAming'tha last six moths ofthe leasa.-Mm enercise by Losses of its option during such twenty (20)dayperiod sha :- . Lessee's.dection under Subsections{a) and (c) ofthis section, to Vie:. the lease; awided;emmieoflassae'soptiontoCOW 60lease shallnotelimioete Lessee's option totennmme order Subsaaiea (b) above Lessee's emcim of it's - . option: to extend the kaseasprovided isthis :Sa shall note>i—ailosbaorsM inany,way=Lessor-,StkO ute ti1111e.kase'poravaatlolh�Section121• Sedim 12.2. ifthe buildingbousing the Promises is damaged*G . destroyed, and ne-11 Lessor nor Lessee ebxafs to tem>imsa the leave polsaa 'to Section 121, then the reaEpayable_hna®der forthe period dining vvhirh each damage, repairor rester eontim es shell be abated in proportion to the degree to which Lessees use of ,.•thePlpmusss.is # E,. ,.. � .: ,, " c..,_,;.�..,1?3,_T�'sR i F�eptfor the' n.ofthelaase,aa provided;in Section 12.1 crab ata�� ofl.as provided on Section 12 2, Lessee shall have: : Do chum agaiavt Lessor fro tidy damages sued by reason of any damages deshuc tiion, orrestaradw of or to the Promises. 0 Imani- Lease Page 11 This Artilcle 12, an equitable adjustment shall be made concerning advance rent and any advance payments made by Lessee to Lessor. Lessor shall, in addition , return to Lessee so much of Lessee's security deposit as has not therefore been applied by Lessor. Section 12.5 Waiver. Lessor and Lessee waive the provisions of ant statues that relate to termination of leases when leased property is destroyed and agree that such event shall be governed by the terms of this lease. Section 12.6 Arbitration. In the event of any dispute between Lessor and Lessee with respect to the provisions hereof, the matter shall be settled by arbitration in such manner as the parties may agree upon, or if they cannot agree, in accordance with the rules of the American Arbitration Association. Article 13. Condemnation. Section 13.1. Condemnation Defined. The term "condemnation" shall mean the taking by eminent domain or the sale under the threat of the exercise of said power (all of which are herein called "condemnation"), by public or quest- public agency or entity having the power of eminent domain, herein sometimes call " the condemnation authority," of more than ten percent (10%) of the floor area of the Premises. Section 13.2 Lessess's Termination Rights. In the event of condemnation as defined in ® Section 13.1 , Lessee may, at Lessee's option to be exercised in writing only within ten (10) days after Lessor shall have given Lessee written notice of such taking (or, in the absence of such notice, with in ten (10) days after condemning authority shall have taken possession), terminate this lease as of the date the condemning authority takes such possession. If lessee does not terminate this lease in accordance with the foregoing, this lease shall remain in full force and effect as to the portion of the Premises remaining, except that the rent shall be reduced in proportion that the floor area of the Premises taken bears to the total floor area of the Premises. Section 13.3 Termination Date. In the event that the Premises or any portion thereof or the building is condemned, this lease shall terminate as to the part so taken as of the date the condemning authority takes title or possession, whichever occurs first. All rent payable under this Lease shall be prorated as of 12:01 a.m. on such date and a prompt and proper refund or payment of rent shall be made. On the making of such rent adjustment., both Lessor and Lessee will be releases and discharged from any and all further obligations under this lease. Section 13.4 Condemnation Award. All compensation and damages awarded or paid for the condemnation of sold premises or any portion of said Premises under the power of eminent domain or any payment accepted under threat of exercise of such power shall be the property of the Lessor, whether such award shall be made as compensation for the diminution in value of the leasehold or for the taking of the fee, or as severance damages; provided, however, that Lessee shall be entitled to any award for loss of or damage to Lessee's trade fixtures and removable personal property. In the event that this lease is not terminated by reason of such condemnation, Lessee shall to the extent of severance damages received by Lessor in connection with such condemnation, repair any damage to the Premises caused by condemnation except Imam — Lease Pagr 12 12 by thz condemaingauthority i asses to the extent tbat Lessee. bao:t?een rPMburs� $hall pay any amaurA ii ems of sych saverancs.dsmeges regiiired to complete such repair Article l4 �'^' m" Defaults and 8raa fc 98CLSeR ra t haul# hn 1 `. The amurence of any one Or. more of" the fellowtn9 events (as +aQ as tlidse indicated elseahera io this lase) shall constitute a trlstertai �etdult a� breech of this )nae by Lessee (a) : %mudmovent : Tt a va l9r sbeMonmertt of the Premises hixssee. (b) tienpapmeM The follito.bq Lessaeto make any payment of rent or otht?r payment 're" red is be Mob bq Lessee h � m n � (t.Q}:�ijs foriowf � the dale dais for such payment, vhens such teilera shall continue for a period of three (37"degs afler. �rri#ie�'notice thereof from Lessor ee. is Less , to the event that Lessor serves Lessee vitii a idafice to Pal Rent or (Mt pursnat to applicable Liniwfui Detaiper statutes, such native to Pay Renter Quit shall also constitute the notice r"dred by # a Subsection. (c) liraci►of ttleR :€?aseptas[se prpvjdgd#11 tMs lease, the failure by .... Lessee to Observe or wo0iii 6�wnont%,condi#ionsar.provisioA ofthis intone observed or pe<fiwMd— .9 tdesaee, other #hen. Cribed in tion (b) $bo ne, vbergsoch fail �re shell csettaue fora ee iod oUtWiy {3U) 4 air:witten.net theroafi;rom Lessor to Lessee: provided, bo4ww, that if the n8brg Of Lasa's default. is.sucb,Lbat.morO they thirty, (30) days are rewonabig requi redfor its care, the Lessee shell not be deema:i to be i n tiefiult if Lesseee mm m ssachcurewiWassidthirty"f30)dpyperiodandthoralitterdili9eittlg' prosecates siich curaftcompl4iton the,extant perinitfed btl ice, Siuti tdtsty (3f!);.48�3 Mike stroll Msftisfs the sole awe M10t ee- notice tio.be §iyen.ta Leaaeaiwdec-ap�ltcable Unlawful Detainerstetutes (�} Iy-.-#i)-:1•hD-�iag�:te of angganaL�l arraa�efrt Toc-the �neflt: . oicrediiors; tti)tl�tiiiigDg�.agaiaatLes�ee;afa�etitieatohsvet:�seeadjaAgeda bankrupt or es:a tfmr".r eargeaizslioaoc arran9amefd nndeF<any }s+r'relesg#o bankruptcy(anlese inthesea detout,"11we tnet"Lessee,tilesemeis'fi sdaaw,vltto sixty (60) dogs: (tit) its appointment of a trustee or receiver to take pion of subst~g all of Lessee's assets loedted atthe Premises or of L asses s interest in this MON, where pgo*ujwiriiotrestorod•totseadevittlibthiM130)days;:'or -tw) the attachment, aoecutian er�lier- j�edicial: se of subst�fiatly altof Lessee's aloestfid at flee" Premasgs or of Lesswsinta -Mlawslease+, bomswbseizureis oat dl sch6rood.1011:11-11110tv (30) .' days. Pr>rvidadlieirer,i6fd» e+weaitget preidsionithis.SutisEchen k4i (d) is ooiitrarg tb enyapOlieeSble is ►. Such Fsion shall be a€ r ferco or affect (a) Mraproabaiat -Tile 4obwery bg ixasor Uwt any fiirenciaFstetemoi�f giyan to Lessor by Lessee, any assignee of Lessee, Ong subtenant of Lome, any sumessor in inivrest of Lessee or 909 �aeranLot OiEsssee s'6Dligetien-Ae►►eLLwAet. or en4 of itiem, vas tnaisx3atTg fail :: Section ice" DafaWtbui,ossor. Ies99Fmi.ib6"tndefsldtentesstaaert8�ls perform bblig r>driidof leafs'vitbin a rsoneblattnsQ,:Dattn)utinam vmna iinr�y : (30) days afteFvtiitsa suites b0teseee to wesex and:tsbettllir gf artg first or .;. _ deed of trust- oM fag tfw Prvmises4W6 Dame end aWM sAa>l 11*0 ttetetefore beef furidahed Uo Leiietia vr;tiig;�pce#yfig wherein Lessor.Asafe3led.to perfisrsn sack a�ti9aiwrr-. prevfded, thd4f tIw netur+ebf Lessor''`s oblt9etaitis such-tdet 4 #tea thirg(30) days are rOgnir*d fbr peri6rm*w, t1wLesssr st alt not beinAdiifit tf bear commences 111 C Imani-Lease Page 13 performance within such thirty (30) day period and thereafter diligently prosecutes the same to completion. Article 15. Remedies for Default or Breach. Section 15.1. Leasor's Remedies. In the event of any material default or breach by Lessee, Lessor may at any time thereafter, with or without notice or demand and without limiting Lessor in the exercise of any right or remedy that Lessor may have by reason of such default or breach. (a) Terminate Lease. Terminate Lessee's right to possession of the premises by any lawful means, in which case this lease shall terminate and Lessee shall immediately surrender possession of the Premises to Lessor. In such event Lessor shall be entitled to recover from Lessee all damages incurred by Lessor by reason of Lessee's default, including, but not limited to, the cost of recovering possession of the Premises; expenses of relating, including necessary renovation and alteration of the Premises, reasonable attorney's fees, and real estate commission actually paid; the worth, at time of award by the court having jurisdiction thereof, of the amount by which the unpaid rent for the balance of the term after the time of such award exceeds the amount of such rental loss for the same period the Lessee proves could reasonably be avoided. (b) Continue Lease. Maintain Lessee's right to possession, in which case this lease shall continue in effect whether or not Lessee shall have abandoned the Premises. In such event, Lessor shall be entitled to enforce all of Lessor's rights and remedies under ® this lease, including the right to recover rent as it becomes due hereunder. (c) Reservation of Rights. Pursue any other remedy now or hereafter available to Lessor under the laws of judicial decisions of the State of California. Section 15.2 Lessor's Rights.If Lessee fails to perform Lessee's obligations under this Article , or under any other Article of this Lease. Lessor may at it's option (but shall not be required to) enter upon the Premise after ten (10) days prior written notice to Lessee (except in the case of emergency, in which case no notice shall be required ) , perform such operations on Lessee's behalf and put same in good order, condition and repair, and the cost thereof shall become due and payable as additional rental to Lessor together with Lessee's next rental installment. Section 15.3 Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity. Article 16. Disputes. Section 16.1 Attomey's Fees. If any administration proceeding is brought, or if arbitration is sought, or if any action is commenced at law in equity to enforce or interpret the provisions of this lease, the prevailing party shall be entitled to reasonable attorney's fees in addition to any other relief to which it might otherwise be entitled. The provisions of this Section shall insure to the benefit of any broker or agent of any party named herein who seeks to enforce a right hereunder. El 0 hnani_Lease Page 15 Lease for recording purposes, if requested to do so by the other party. Section 17.9 Waivers. No waivers by Lessor or Lessee of any provisions hereof shall be deemed a waiver of any other provisions hereof or any subsequent Breach by Lessee or Lessor, as the case may be, of the same or any other provisions. Lessor's consent to or approval of any act shall not be deemed to render unnecessary the obtaining of Lessor's consent to or approval of any subsequent act by Lessee. The acceptance of rent hereunder by Lessor shall not be a waiver of any preceding breach by Lessee of any provision hereof, other than the failure of Lessee to pay the particular rent so accepted, regardless of Lessor's knowledge of such preceding breach at the time of acceptance of such rent. Section 17.10 Covenants and Conditions. Each provision of this lease performable by each party hereto shall be deemed both a covenant and a condition. Section 17.11. Captions. Article, section, and sub -section captions are a part hereof. Section 17.12. Gender and Number. As used in this lease, the masculine, feminine or neuter gender, and the singular or plural number shall be deemed to include the other whenever the context so indicates. Section 17.13. Time . Time is of the essence of this lease. Section 17.14. Notices. Any notice required or permitted to be given hereunder in writing may be effected by personal delivery or by mail, registered or certified, postage prepaid, with return receipt requested. Mailed notices shall be addressed to the parties at their last known addresses. Notices delivered personally shall be deemed communicated as of actual receipt. Mailed notices shall be deemed communicated as of the date receipt. Mail that is refused, unclaimed or undeliverable because of an act or omission on the part of the party to be notified (and in the case of a refusal, is personally refused by the party to be notified or a duly authorized person acting under the direction and control of the parry to be notified), shall be deemed communicated as of the first date said mail was refused, unclaimed or deemed undeliverable by the postal authorities. Imam- _ Leage Page 16 ® RESOLUTION NO.01-08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, ADOPTING THE CITY OF MORRO BAY INVESTMENT POLICY AND DELEGATING AUTHORITY TO THE CITY TREASURER TO INVEST IDLE FUNDS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City Council of the City of Morro Bay desires to prudently invest idle funds of the City to maximize use of taxpayer funds; and WHEREAS, the California Government Code Section 53600.3 states that "all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public fimds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard"; and WHEREAS, per California Government Code Section 53646(a)(2), all local agency governing boards may render to the legislative body of that local agency a statement of investment policy, which the legislative body of the local agency shall consider at a public meeting and shall also consider any change in the policy; and WHEREAS, per California Government Code Section 53607, the legislative body may delegate investment authority and responsibility to the Treasurer and/or designated staff for a period of one year subject to annual review ® and monthly review of transactions initiated by the designee; and WHEREAS, the City of Morro Bay first adopted its current investment policy in 1996, and refined it during 1997 and 1998, and rewrote it in 2007 based on the 2003 guidelines prepared by the California Debt and Investment Advisory Committee (CDIAC) and the Government Finance Officers Association (GFOA). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the Investment Policy, attached hereto, is adopted and that the City Treasurer is hereby authorized to carry out this policy on behalf of the City Council. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Morro Bay, on the 14t° day of January 2608, by the following vote to wit: AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters NOES: None ABSENT: None Bridgett B��pr, City Clerk ® P Nown1 PURPOSE CITY OF MORRO BAY INVESTMENT POLICY JANUARY 2008 This investment policy establishes the practices and procedures to be used in managing the City of Morro Bays (City) portfolio in accordance with the requirements of the State of California Government Code and the guidelines provided by the California Debt and Investment Advisory Commission (CDIAC) and the Government Finance Officers Association (GFOA). SCOPE OF THE POLICY This policy governs the investment of money that is not required to meet the immediate needs of the City. LEGAL AUTHORITY ® Govemment Code Sections California Government Code Sections 53600 to 53609 govem the investment of local agency funds. Legislative Changes.- Any applicable legislative actions will be acted on as of their effective dates and will be incorporated into the policy annually, specifying the California Government Code sections that have been added, deleted or amended. OBJECTIVES The City Treasurer will consider the following factors in priority order when assessing investment opportunities: Safety.• The primary objective is the preservation of principal. Capital losses will be avoided, whether from default or erosion of market value, meaning that the City will not sell or trade an investment because of market fluctuation. The two types of risk to be minimized are: 1. Credit risk — the risk that an issuer or other counterparty to an investment will not fulfill its obligations; and 2. Interest rate or market risk — the risk that changes in interest rates will adversely affect the fair value of an investment. Liquidity.* The second objective is the liquidity of the portfolio. The portfolio should remain sufficiently flexible to enable the City to meet the operating requirements that are reasonably ® anticipated. In order to sure liquidity, the investment policy must recognize that calculating cash flows are the basis of any good investment strategy. Meeting the daily cash flow ® demand goes hand -in -hand with meeting the City's liquidity needs. raid.' The third objective, behind safety and liquidity, is attaining a market rate of return throughout the budgetary and economic cycles. While managing the portfolio, the treasurer and designated staff will strive to maintain public trust by avoiding any transactions that might impair public confidence in the City. When selecting investment instruments, the treasurer and designated staff will remain cognizant of any social and policy considerations that have been established and defined in this policy. GENERAL STRATEGY The treasurer and designated staff may follow a passive or active investment strategy. Passive investment policies adhere to the investment goal of holding investments to maturity. Active Investment strategy is the buying and selling of investments to achieve a certain benchmark objective. Great care, coupled with the advice of a fiscal agent, should be followed with an active investment policy. The City, as stated above in the Objectives section under Safety, follows the passive investment strategy of holding investments to maturity. STANDARD OF CARE ® Prudent Investor Standard, The prudence standard for trust investing traces back to Harvard College v. Amory, 26 Mass. (9 Pick.) 446 (1830). Judge Samuel Putnam stated that trustees should "observe how men of prudence, discretion and intelligence manage their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income, as well as the probable safety, of the capital to be invested." This standard will be followed by the treasurer and designated staff. Ethics and Conflict of Interest, The treasurer and designated staff shall refrain from personal business activities that could conflict with the proper execution of the investment program or which could impair their ability to make impartial decisions. De%ga0on ofAuthority., The following positions and corresponding City personnel are delegated the power to invest the funds of the City: Mayor .......................................... Janice Peters City Manager .............................. Andrea Lueker, Interim Finance Director/Treasurer........ Susan Slayton Accountant ................................ Joyce Bunting Lead Account Technician........... Laurie Goforth Account Clerk III ........................ Cristie Brazzi These designations may change with the annual affirmation of this policy. Each delegate is required to adhere to the requirements set forth in the investment policy. SAFEKEEPING AND CUSTODY ® ThiidAa* Safekeeping: Ownership of the Citys investment securities will be protected through third -party custodial safekeeping. The custodian will provide the City with a safekeeping receipt or monthly, itemized statement. Exceptions to this requirement are made for certificates of deposit, money market funds and investment pools. internal C617bWs These are designed to ensure that the assets of the City are protected from theft, loss, or misuse. Such internal controls are in place include: 1.. Control of collusion; 2. Separation of duties; 3. Safekeeping of securities; and 4. Written confirmation of telephone transactions and wire transfers. The City will separate the person who authorizes or performs the transaction from the person or people who ultimately record or otherwise account for the transaction to achieve separation of duties. Delivery vs Payment All investment transactions should be conducted using standard delivery vs. payment procedures. In delivery vs. payment, the purchaser pays for the securities when they are delivered either to the purchaser or his/her custodian, and ensures that securities are deposited in an eligible financial institution prior to the release of funds. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS ® The City will only conduct business with approved banks, savings and loans, credit unions, and securities brokers/dealers. A list of financial dealers and institutions is to be maintained. Broker/dealers and institutions must meet all requirements established by federal and state law. SUITABLE AND AUTHORIZED INVESTMENTS Audwvried InvesVnent Types The City, by virtue of California Government Code Sections 53600 — 09, has the ability to invest in the numerous types of instruments. The City has looked at its goals, objectives, and standards of care in establishing a list of authorized investment types that also meet statutory requirements. Those types of investment instruments that meet the criteria for the City are: 1. Securities of the U. S. Government, or its agencies; 2. California's local Agency Investment Fund (LAIF) pool; 3. FDIC Insured Certificates of Deposit; 4. Bankers' Acceptances (not exceeding 40% of portfolio/max maturity 180 days); 5. Money Market funds whose portfolios consist of the foregoing (not exceeding 20% of portfolio); 6. Collateralized Certificates of Deposit of $100,000 or more (not exceeding 25% of the portfolio); and 7. Passbook savings accounts Prohibited Investment Types: In addition to a listing of authorized investments, California Government Code Section 53601.6 prohibits local agencies from investing in the following ® instruments: • 1. Inverse floaters; ® 2. Range notes or mortgage -derived, interest -only strips; 3. Any security that could result in zero interest accrual if held to maturity; 4. Stock; 5. Futures or options; and 6. Repurchase agreements and reverse repurchase agreements. There may be additional investment instruments in which the City does not want the treasurer to invest, and those will be defined in future investment policies. INVESTMENT PARAMETERS Dive/siAcabon oflnvestrnenM The City may choose to impose more stringent restrictions or further restrictions on other investment instruments, depending on its investment goals and risk tolerances, than those proposed in the California Government Code Sections 53600 - 09. The City has indicated those authorized investments with the appropriate percentage of the portfolio allowed as follows: 1. Money market funds not to exceed 20%; 2. Collateralized Certificates of Deposit not to exceed 25%; 3. Securities of any one issuer, except those obligations of 'the U.S. government, U.S. governmental agencies, and U.S. government -sponsored enterprises, not to exceed 5%; and 4. Mutual funds not to exceed 10%. ® Maximum Maturity., California Government Code Section 53601 lists the maximum maturity for any instrument as five (5) years. The exception to this time frame is made for investments with LAIF only. Minimum Credit Requirements The City has chosen to follow the California Government Code Section 53601 that sets the minimum credit rating required for certain investment instruments as follows: 1. Short-term debt shall be rated at least "A-1" by Standard & Poor's Corporation, "P-1" by Moody's Investors Service, Inc., or "F-1" by Fitch Ratings. If the issuer of short-term debt has also issued long-term debt, this long-term debt rating shall be rated at least "A," without regard to +/- or 1, 2, 3 modifiers, by Standard & Poor's Corporation, Moody's Investors Service, Inc., or Fitch Ratings. 2. Long-term debt shall be rated at least "A," without regard to +/- or 1, 2, 3 modifiers, by Standard & Poor's Corporation, Moody's Investors Service, Inc., or Fitch Ratings. mwdmum Weighted Avemge Maturity of a Portfolio: As part of the monthly portfolio performance report that is provided to the City Council, a weighted average maturity (WAM) of the portfolio is calculated. While there are no requirements under state law for a maximum WAM of a portfolio, CDIACs Local Agency Investment Guidelines suggest that local agencies include and monitor WAM to arrive at an acceptable range for future implementation of a maximum benchmark. 11 PORTFOLIO MANAGEMENT ACTIVITY ® Active or Passive Portfolio Management.• In active portfolio management, treasurers buy and sell securities based on how to mabmize portfolio values over a given timeframe. In passive portfolio management, the goal is to match a market rate of return (usually a benchmark). Weighing the pros and cons of each strategy in light of staff resources and investment, the City has chosen to follow a passive portfolio management strategy. Competitive Bidding: Investments are purchased in the most cost effective and efficient manner utilizing approved brokers/dealers on all investment transactions. Reviewing and MoMtoring of the PbnYdio: The portfolio is to be reviewed on a monthly basis to ensure that the investments are being properly tracked and reported. Fbrtfo/io.Aotiusbnents• If the portfolio demonstrates non-compliance with the investment policy, the treasurer and designated staff may hold the affected securities to maturity to avoid losses; however, the treasurer may choose to rebalance the portfolio earlier to bring it back into compliance only if the portfolio will not suffer any losses for selling the investment prior to maturity. Performance Standards: The objective of investing is to obtain a rate of return throughout budgetary and economic cycles, commensurate with investment risk constraints and cash flow needs. REPORTING ®Reporting Methods: On a monthly basis, the investment portfolio will be provided to the City Council and will list the following components per Government Code Section 53646 (b): 1. Types of investment; 2. Issuer names; 3. Dates. of maturity; 4. Par amounts; 5. Dollar amounts; 6. Market values; 7. Descriptions of programs under the management of contracted parties; 8. A statement of compliance with the investment policy; and 9. A statement of the ability to meet cash flow needs for six months. Govemmenta/ Acrountngs Standards Baird (CLSB) Statement No. 31 - Marking to Markret. The CiWs portfolio is to be marked -to -market for the monthly investment report provided to the City Council and at minimum, annually for the financial statements. Market values are to be obtained from a reputable and independent source and disclosed to the City Council in the monthly written report. The independent source of pricing should not be one of the parties to the transaction being valued. Such an Independent source could include a broker or other financial institution that was not a counterparty to the transaction, the custodial bank if the bank was not a counterparty to the transaction, publicly available publications such as The Walk Street Joumal, or other pricing services for which a separate fee would be paid. This Is consistent.with GASB Statement No. 31, which requires that governmental entities report ® investments at fair value, and with the California Governmental Code, which also requires market values of investments be reported. ® Calcvla8on of Yeld and Caste All yield rates on investments will be presented at book value. Invesbnent Po/icy Adoption, Review, and Amendment: The investment policy will be reviewed, amended, and presented to the City Council annually at the beginning of the calendar year. The review should ensure that the policy is consistent with the overall objectives of preservation of principal, liquidity, and return, and is in conformance with the law, financial and economic trends, and the cash flow needs of the local agency. Definitions or Glossary of Terms., This investment policy includes a definition section (Appendix A) in order to establish a common vocabulary between the treasurer and designated staff, the City Council, and the public. 11 APPENDD(A — INVESTMENT POLICY TERMINOLOGY ® The following are examples of terminology commonly found in California City investment policies. The inclusion of these sections provides clarity to investment policies and better enables readers to understand important concepts. Authorized Financial Dealers and Institutions: List of financial institutions authorized to provide investment services. May also include a list of approved security broker/dealers with which the City can do business. These institutions and broker/dealers are usually selected by their ability to add value to the investment process. Some criteria to consider when choosing an approved broker/dealer include creditworthiness, expertise, and the products in which the financial dealer or institution is familiar. GFOA suggests that all entities qualifying for investment transactions provide audited financial statements; proof of industry group (National Association of Securities Dealers (NASD]) certification; proof of state registration; completed broker/dealer questionnaire; and certification of. having read, understood, and agreeing to comply with the investment policy. Bankers' Acceptance: A draft, bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. Certificate of Deposit: A time deposit with a specific maturity evidenced by a certificate. Collateralization: Process by which a borrower pledges securities, property, or other deposits for the purpose of securing the repayment of a loan and/or security. California Govemment Code Section 53601 requires that all repurchase agreements be secured by eligible securities with a market value ® of 102 percent or greater of the funds borrowed. GFOA recommends and Califomia Government Code requires that full collateralization be required on non-negotiable certificates of public deposit. Delegation of Authority: The granting of authority to manage the investment program to designated officials. Such authority is usually derived from code sections, ordinance, charters, or statutes. Government Code Section 53607, for example, allows the City Council to delegate, for a one-year period, its authority to invest or reinvest funds or to sell or exchange securities held by the local government. Delivery vs. Payment: A type of securities transaction in which the purchaser pays for the securities when they are delivered either to the purchaser or his/her custodian. It ensures that securities are deposited in an eligible financial institution prior to the release of funds. A third -party custodian as evidenced by safekeeping receipts should hold securities. Diversification: A process of investing assets among a range of security types by sector, maturity, credit rating, and call type or structure. This reduces exposure to risk by combining a variety of investments, which are unlikely to all move in the same direction. GFOA suggests diversifying a city's investment portfolio by limiting investments to avoid exposure to a specific sector, limiting investment in securities with higher credit risks, investing in instruments with varying maturities, and continuously investing a portion of the portfolio in readily available funds such as a local government investment pool, money market funds, or overnight repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations. Ethics and Conflicts of Interest: The California Political Reform Act of 1974 requires certain ® designated public officials at all levels of govemment to publicly disclose their private economic interests and requires all public officials to disqualify themselves from participating in decisions in which they have a financial interest. As part of this requirement, local agencies are required to adopt and promulgate a Conflict of Interest Code, with certain required sections. To further promulgate this Code, investment policies sometimes include language requiring the ethical conduct of investment officers and statements regarding refraining from personal business activity that could conflict with the proper execution and management of the investment program or that could impair their ability to make impartial decisions. To avoid conflicts, GFOA recommends that investment officers disclose material interests in financial institutions with which they do business, disclose personal financial interests that could be related to the performance of the investment portfolio, and refrain from undertaking personal 'investment transactions with the same individual with whom business is conducted on behalf of the local government. Exemption: Language that grandfathers prohibited investments into the investment policy because they may have been held in the portfolio prior to the prohibition. When these investments mature or are liquidated, the money should be reinvested as provided by the policy and the exemption language should be removed from the policy. FDIC: Federal Deposit Insurance Corporation is a federal agency that insures bank deposits up to $100,000 per deposit. General Objectives: The section of an investment policy that illustrates the three main objectives (safety, liquidity, and yield), in order of priority, of a good investment policy. In addition to these commonly included objectives, there are a myriad of other objectives for which an investment policy can strive. Safety is the preservation of principal. Liquidity is how easily an investment may be redeemed for cash. Yield is the current rate of return on a security generally expressed as a ® percentage of its current price. As per California Government Code Section 53600.5, safeguarding the principal of the funds under its control should be the primary objective of local agencies. Liquidly also should be a principal objective of a portfolio. The portfolio should maintain sufficient liquidity to meet operating requirements. To accomplish this, a local agency can structure a portfolio so that investments mature when cash is needed and also by investing in liquid securities with an active secondary market. Yield should be the last objective an investment portfolio should strive for, behind safety and liquidity. Since there are many different ways for yield to be calculated, the Investment policy should specify how it is to be calculated. Internal Controls: The system used to ensure that the local government assets are protected from loss, theft, or misuse. Such a system should provide a reasonable assurance that such loss, theft, or misuse can be prevented. Examples include separation of duties, delegation of authority, and documentation. GFOA suggests that an internal control system address the following points: control of collusion, separation of transaction authority from accounting and recordkeeping, custodial safekeeping, avoidance of physical delivery of securities, dear delegation of authority to subordinate staff, written confirmation of transactions for investments and wire transfers, and development of a wire transfer agreement with the lead bank and third -party custodian. Investment Parameters: Specified restrictions on investments to limit the amount of risk in a portfolio. These parameters may be specified in the California Government Code; however, the local agency may choose to further restrict investment options depending on its risk tolerance. Such parameters may include diversification of investments types, percentages, or dollar limits per issuer and setting maximum maturities. ® Investment Types: A recitation of the investment types the local agency has been given authority in which to invest. This may be a list of securities allowable under California Government Code Section 53601 et seq., and may be further restricted by the agency itself. For a description of the allowable California local agency investment instruments, please see CDIAC's latest version of its Local Agency Investment Guidelines, available on its website at www.treasurer. ca.gov/cdiac. GFOA recommends the investment in the following types of securities: U.S. government securities and agency obligations; highly -rated certificates of deposit, bankers' acceptances, commercial paper; investment -grade state and local government obligations; repurchase agreements securitized by the previousy-mentioned securities; SEC -regulated, dollar -denominated money market mutual funds; and local government investment pools. LAIR Local Agency Investment Fund, the State of California's investment pool in which cities, counties and special districts may participate. Liquidity: A liquid asset is one that can be quickly and easily converted into cash without loss in value. Market Value: The price at which a security is trading at a point in time. Selling an investment at market value can result in a gain ($500,000 investment sold for $515,000 = $15,000 gain) or loss ($500,000 investment sold for $498,000 = $2,0D0 loss). Gains and losses are dependent on changes in the current rate of interest as compared to the interest rate of the investment that is being considered for sale. Marking -to -Market: The act of recording the price or value of a security to reflect its current market value rather than its book value. Maximum Maturities: Maturity is the date on which the security or obligation is redeemed by the ® issuer in exchange for cash. California law states that local governments cannot invest in instruments with terms remaining to maturity in excess of five years unless they receive express authority from their legislative bodies to do so. Local governments should attempt to match investment maturities with anticipated cash flow requirements. There is no requirement under California law for local governments to have a weighted average maturity (WAM) restriction for their portfolio, although CDIAC's local Agency Investment Guidelines suggests that local agencies consider adopting a WAM restriction. Performance Standards: The criteria by which a stated goal is measured. An investment portfolio's performance and risk exposure should be evaluated against appropriate benchmarks on a regular basis. One standard that should be strived for should be a market rate of return in a given interest rate environment. Policy Considerations: The local ordinances or other requirements that place restrictions on the policy. Local governments should consider what should be exempted from the policy and also when, or under what circumstances, the policy should be amended. Pooling of Funds: A statement in the investment policy that except for certain restricted or special funds, cash balances should be consolidated from all funds to maximize investment earnings. Portfolio: The collection of investment instruments held. Prudent Investor Standard: Legal maxim that all investments should be made with care, skill, ® prudence and diligence under the circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the professional management of their business affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Reporting: Presentation of evaluation data or other information to communicate processes, roles, and results. Investment policies should include reporting requirements such as methods of reporting investments, the standards against which investments should be reported, and the requirement for calculating market value. Reporting Methods: Ways in which investment outcomes are reported including listing of instrument values, dollar value returns, percentage yields, etc. GFOA suggests that local governments prepare investment reports at least quarterly. In California, investment reports are no longer required to be submitted to legislative bodies. This requirement is now permissive. If a local government chooses to submit an investment report in accordance with California Government Code Section 53646 to their legislative bodies, they are still required to submit copies to CDIAC for the second and fourth quarter of every calendar year until January 1, 2007. GFOA goes on to list some suggested components of investment reports including listing of securities, gains and losses, average weighted yield to maturity as compared to benchmarks, listing of investment by maturity date, and percentage of the total portfolio which each type of investment represents. Risk: Two of the most common risks associated with local government portfolio investing are credit risk and interest rate risk. Credit risk is the risk to an investor that an issuer will default in the timely payment of interest and/or principal on a security. Interest rate risk is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. Limiting investment to the safest types of securities, pre -qualifying financial institutions, broker/dealers, and others with which the local agency will do business, and diversifying the number of issuers in an investment portfolio can minimize credit risk. Interest rate risk can be minimized by structuring the portfolio so that investments mature at the same time that cash is required or investing operating funds in highly liquid, shorter -term securities (e.g., U.S. Treasury bills or notes). Safekeeping and Custody: Rules derived to ensure the safety of an investment and within whose control the investment resides. Some examples include third -party safekeeping, developing lists of authorized financial dealers and institutions, developing internal controls, and using a delivery vs. payment standard for transactions. Local agencies should consider requiring securities to beheld by third -party custodians, evidenced by timely statements illustrating the balance held by these custodians. Scope: The types of funds that the policy covers (e.g., operating funds, bond proceeds, etc.). In general, investment policies cover short-term operating funds. Longer -term funds such as retirement funds are covered by other policies. The investment of bond funds usually is governed by the bond documents such as the trust indenture. Standards of Care: The degree of care that a reasonably prudent person would exercise in the investment of local agency funds. L_I