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HomeMy WebLinkAboutJanuary - December 20110 City of Morro Bay ® Morro Bay, CA 93442 (805) 772-6200 CITY OF MORRO BAY CITY COUNCIL NOTICE OF CANCELED MEE THE REGULAR CITY COUNCIL MEETING SCHEDULED FOR TUESDAY, DECEMBER 27, 2011 HAS BEEN CANCELED The next regularly scheduled meeting will be held on Tuesday. January 10, 2011, 6:00 p.m., Veterans Hall. ® FINANCE ADMINISTRATION FIRE DEPT. PUBLIC SERVICES 595 Harbor Street 595 Harbor Street 715 Harbor Street 955 Shasta Avenue HARBOR DEPT. 1275 Embarcadero Road CITY ATTORNEY POLICE DEPT. RECREATION & PARKS 955 Shasta Avenue 870 Morro Bav Boulevard 1001 Kennedv Wav ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — TUESDAY, DECEMBER 13, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT ® PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 24 ® hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. 1 ® A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF NOVEMBER 8, 2011; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 72-11 ADOPTING THE MEMORANDUM OF UNDERSTANDING WITH THE MORRO BAY FIREFIGHTERS ASSOCIATION; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 72-11. A-3 RESOLUTION NO. 73-11 AUTHORIZING PAYING AND REPORTING THE VALUE OF EMPLOYER PAID MEMBER CONTRIBUTIONS (EPMC) FOR THE MORRO BAY FIREFIGHTERS ASSOCIATION; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 73-11. A-4 QUARTERLY FINANCIAL STATUS REPORT FOR THE FISCAL YEAR ENDED ® SEPTEMBER 30, 2011; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Accept the report as presented. A-5 APPROVAL OF AMENDMENT 91 TO THE LEASE AGREEMENT FOR LEASE SITE 110-112/110W-112W, AND 20' OF THE EASTERLY PORTION OF 111.5W, BETWEEN THE CITY OF MORRO BAY AND GAFCO INC., LOCATED AT 1185 EMBARCADERO, AND AMENDMENT #1 TO THE LEASE AGREEMENT FOR LEASE SITE 124-128/124W-128W AND 113W, BETWEEN THE CITY OF MORRO BAY AND SEA ONE SOLUTIONS LLC, LOCATED AT 1215 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 75-11 approving Amendment #1 to the Lease Agreement for Lease Site 110-112/11OW-112W and 20' of the easterly portion of 111.5W between the City of Morro Bay and GAFCO, Inc.; and, adopt Resolution No. 76-11 approving Amendment #1 to the Lease Agreement for Lease Site 124-128/124W-128W and 113W between the City of Morro Bay and Sea One Solutions LLC. 2 A-6 APPROVAL OF RESOLUTION AUTHORIZING THE CITY OF MORRO BAY TO ENTER INTO BOATING SAFETY AND ENFORCEMENT GRANT CONTRACT ® WITH THE DEPARTMENT OF BOATING AND WATERWAYS; (HARBOR) RECOMMENDATION: Adopt Resolution No. 74-11 authorizing the Harbor Operations Manager to execute the Boating Safety and Enforcement Grant Contract Agreement #11-204-758 with the California Department of Boating and Waterways for purchase of miscellaneous equipment consisting of two rescue personal watercraft and trailer in the amount of $24,000. A-7 ADOPTION OF ORDINANCE NO. 575 AMENDING MORRO BAY MUNICIPAL CODE SECTION 5.04.330 REGARDING THE PROCEDURE FOR SUBMITTING CERTAIN BUSINESS LICENSE APPLICATIONS TO THE CHIEF OF POLICE AND CITY COUNCIL; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 575. A-8 AWARD OF CONTRACT TO WHITAKER CONSTRUCTION GROUP, INC. OF SAN LUIS OBISPO, CA FOR THE PROJECT NO. MB-2011-S-02: LIFT STATION 2 UPGRADE; (PUBLIC SERVICES) RECOMMENDATION: Award the Project contract to Whitaker Construction Group, Inc., in the amount of $958,740. isOBISPO, AWARD OF CONTRACT TO D-KAL ENGINEERING INC. OF SAN LUIS OBISPO, CA FOR THE PROJECT NO. MB-WC-1: SECTION 6 SEWER REHABILITATION; (PUBLIC SERVICES) RECOMMENDATION: Award the Project contract to D-Kal Engineering Inc., in the amount of $64,570. A-10 AWARD OF CONTRACT FOR DEL MAR PARK TENNIS COURT IMPROVEMENTS: MB-2011 -RP 1; (PUBLIC SERVICES) RECOMMENDATION: Award the Project contract to Malibu Pacific Tennis Courts Inc. in the amount of $297,650.00. A-11 APPROVAL OF THE AGREEMENT WITH THE CLARICE RIGHETTI TRUST TO LEASE A PORTION OF TRUST PROPERTY FOR THE CONSTRUCTION AND OPERATION OF THE NUTMEG WATER TANK; (PUBLIC SERVICES) RECOMMENDATION: Approve the Lease Agreement with the Clarice Righetti Trust for a portion of Trust property to be used for the construction of the Nutmeg Water Tank. A-12 PROCLAMATION DECLARING DECEMBER 4, 2011 AS ARBOR DAY; (RECREATION & PARKS) 0 RECOMMENDATION: Adopt Proclamation. 3 ® A-13 APPROVAL OF A NEW LEASE AGREEMENT FOR LEASE SITE 144/144W, BETWEEN THE CITY OF MORRO BAY AND CHARLES AND SANDRA MARCIEL, DOING BUSINESS AS M&M REFRIGERATION, LOCATED AT 1287 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 77-11 approving a new lease agreement for Lease Site 144/144W between the City of Morro Bay and Charles and Sandra Marciel, doing business as M&M Refrigeration, located at 1287 Embarcadero. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 APPEAL OF THE PLANNING COMMISSION'S DECISION TO CONDITIONALLY APPROVE CONDITIONAL USE PERMIT UPO-233 AND COASTAL DEVELOPMENT PERMIT CPO-285 WHICH ALLOWED THE CONSTRUCTION OF A NEW 2-STORY, SPLIT LEVEL, 3,256-SQUARE FOOT RESIDENTIAL. STRUCTURE INCLUDING AN ATTACHED 2-CAR 920- SQUARE FOOT GARAGE, 745-SQUARE FEET OF DECKING DECKS, AND A 711-SQUARE FOOT SECONDARY LIVING UNIT; (PUBLIC SERVICES) RECOMMENDATION: Deny the appeal and uphold the Planning Commission's approval of Conditional Use Permit UPO-233 and Coastal Development Permit CPO-285 subject to the Findings made in the Conditions of Approval. ® B-2 REVIEW AND PROVIDE RECOMMENDATIONS FOR THE CITY OF MORRO BAY SIGN CODE BASED ON WORKSHOP AND SURVEY RESULTS; (PUBLIC SERVICES) RECOMMENDATION: Review workshop and survey results and provide direction to staff regarding any modifications to the "Sign Ordinance" to be incorporated into a revised ordinance that will be forwarded to the Planning Commission for review and recommendations back to City Council. B-3 REVIEW AND ADOPT DRAFT FUNDING RECOMMENDATIONS FOR THE 2012 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS; (PUBLIC SERVICES) RECOMMENDATION: Review and adopt draft funding recommendations for the 2012 Community Development Block Grant funds and forward recommendations to the San Luis Obispo County Board of Supervisors for inclusion with the other requests from the Urban County Consortium. C. UNFINISHED BUSINESS — NONE. U n D. NEW BUSINESS ® D-I REQUEST TO UTILIZE $600,000 OF THE AFFORDABLE HOUSING IN LIEU FUNDS FOR THE PROJECT LOCATED AT 555 MAIN STREET; (ADMINISTRATION) Ll n LI RECOMMENDATION: Authorize utilization of $600,000 of the Affordable Housing In Lieu Funds for the project located at 555 Main Street. E. DECLARATION OF FUTURE AGENDA ITEMS F. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS -OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. MATERIAL& RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET DURING NORMAL BUSINESS HOURS OR AT THE SCHEDULED MEETING. 5 AGENDA NO: A-1 ® MINUTES - MORRO BAY CITY COUNCIL MEETING DATE: 01/10/12 REGULAR MEETING — DECEMBER 13, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. E, U Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Eric Endersby Susan Lichtenbaum Rob Livick Tim Olivas Mike Pond Susan Slayton Dylan Wade Kathleen Wold Joe Woods City Manager City Attorney City Clerk Harbor Operations Manager Harbor Business Manager Public Services Director Police Chief Fire Chief Administrative Services Director Utilities/Capital Projects Manager Planning Manager Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT — there was no Closed Session meeting. PUBLIC COMMENT Caroline Wichman announced her business Karma Sunshine Store on Morro Bay Boulevard which she carries 20a' century collectibles. Father Stephen Mills announced he is filling in as the Rector at St. Peters by the Sea Episcopal Church due to Rector Harriett Linville's retirement. Matt Hudgins of Central Coast Stand Up Paddling and Sue Strebbin, both of the Jesse King Memorial Paddle Race Committee donated $1,500 to the Morro Bay Parks and Recreation Department.and $500 for the County Junior Lifeguards for their efforts in the 2011 Jesse King Memorial Paddle Race. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 13, 2011 Jerry Rioux of the County Housing Trust Fund discussed affordable housing projects throughout the County. He thanked the City for its support in its participation of the Commission in its affordable housing efforts. David Nelson expressed displeasure with the Taco Bell remodel project. He also noted a lot in North Morro Bay was split into 23 parcels for a proposed housing development which is unacceptable. Mr. Nelson stated it has been heard that $5 million has been spent on the City sewer and asked why it's being built on a flood plain. He said the City should make it clear that the power plant in the City should be moved. Susan Stewart acknowledged the efforts of those who placed the luminarias on Morro Bay Boulevard during the holidays. Scott Doyle, Vice President of Cal Poly Surf Rider Club, addressed cigarette pollution on the beach, and advised Council of a project he and others are working on which are collectors that could be placed on the beach, and they are called Cigarette Butt Biters. Ken Vesterfelt stated the Caroling Cop Car event is organized by Neighborhood Watch which takes many people and funding to become a successful event. He also wished the City ® a Merry Christmas. Garry Johnson thanked the Police Department for their efforts in the Caroling Cop Car event. Betty Winholtz addressed the following items on the agenda: Item A-2 (Resolution No. 72- 11 Adopting the Memorandum of Understanding with the Morro Bay Firefighters Association) stating technically it is accurate but could have been worded differently; although it appears to be a benefit to the City, it is only a 3% benefit. She referred to Item A- 4 (Quarterly Financial Status Report for the Fiscal Year Ended September 30, 2011) and asked questions regarding the water and sewer funds. Ms. Winholtz addressed Item A-5 (Approval of Amendment #1 to the Lease Agreement for Lease Site 110-112/110W-112W, and 20' of the Easterly Portion of 11 1.5W, between the City of Morro Bay and GAFCO Inc., Located at 1185 Embarcadero, and Amendment #1 to the Lease Agreement for Lease Site 124-128/124W-128W and 113W, between the City of Morro Bay and Sea One Solutions LLC, Located at 1215 Embarcadero) and asked why Council has agreed to a two year extension for GAFCO when the City ordinance states it should consider a one year extension when the lease hasn't fulfilled its first two years. She referred to Item A-7 (Adoption of Ordinance No. 575 Amending Morro Bay Municipal Code Section 5.04.330 Regarding the Procedure for Submitting Certain Business License Applications to the Chief of Police and City Council) and asked if the Police Chief will notify the public regarding the submittal of certain business licenses. Ms. Winholtz referred to Item A-12 (Proclamation Declaring December 4, 2011 as Arbor Day) noting this celebration usually takes place in April, why this year is it in December. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 13, 2011 She referred to Item A-13 (Approval of a New Lease Agreement for Lease Site 144/144W, between the City of Morro Bay and Charles and Sandra Marciel, doing Business as M&M Refrigeration, Located at 1287 Embarcadero) noting the proposed fee seems low to her. Roger Ewing stated there are many people in need over the holidays, and reminded the public of the Salvation Army bell ringers and to help when we can. Mayor Yates closed the hearing for public comment. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-] APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF NOVEMBER 8, 2011; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. ® A-2 RESOLUTION NO. 72-11 ADOPTING THE MEMORANDUM OF UNDERSTANDING WITH THE MORRO BAY FIREFIGHTERS ASSOCIATION; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 72-11. A-3 RESOLUTION NO. 73-11 AUTHORIZING PAYING AND REPORTING THE VALUE OF EMPLOYER PAID MEMBER CONTRIBUTIONS (EPMC) FOR THE MORRO BAY FIREFIGHTERS ASSOCIATION; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 73-11. A4 QUARTERLY FINANCIAL STATUS REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 201 l; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Accept the report as presented. U 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 0, 2011 A-5 APPROVAL OF AMENDMENT #1 TO THE LEASE AGREEMENT FOR LEASE SITE 110-112/110W-112W, AND 20' OF THE EASTERLY PORTION OF 111.5W, BETWEEN THE CITY OF MORRO BAY AND GAFCO INC., LOCATED AT 1185 EMBARCADERO, AND AMENDMENT #1 TO THE LEASE AGREEMENT FOR LEASE SITE 124-128/124W-128W AND 113W, BETWEEN THE CITY OF MORRO BAY AND SEA ONE SOLUTIONS LLC, LOCATED AT 1215 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 75-11 approving Amendment #1 to the Lease Agreement for Lease Site 110-112/11OW-112W and 20' of the easterly portion of 111.5W between the City of Morro Bay and GAFCO, Inc.; and, adopt Resolution No. 76-11 approving Amendment #1 to the Lease Agreement for Lease Site 124-128/124W-128W and 113W between the City of Morro Bay and Sea One Solutions LLC. A-6 APPROVAL OF RESOLUTION AUTHORIZING THE CITY OF MORRO BAY TO ENTER INTO BOATING SAFETY AND ENFORCEMENT GRANT CONTRACT WITH THE DEPARTMENT OF BOATING AND WATERWAYS; (HARBOR) ® RECOMMENDATION: Adopt Resolution No. 74-11 authorizing the Harbor Operations Manager to execute the Boating Safety and Enforcement Grant Contract Agreement #11-204-758 with the California Department of Boating and Waterways for purchase of miscellaneous equipment consisting of two rescue personal watercraft and trailer in the amount of $24,000. L'J A-7 ADOPTION OF ORDINANCE NO. 575 AMENDING MORRO BAY MUNICIPAL CODE SECTION 5.04.330 REGARDING THE PROCEDURE FOR SUBMITTING CERTAIN BUSINESS LICENSE APPLICATIONS TO THE CHIEF OF POLICE AND CITY COUNCIL; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 575. A-8 AWARD OF CONTRACT TO WHITAKER CONSTRUCTION GROUP, INC. OF SAN LUIS OBISPO, CA FOR THE PROJECT NO. MB-2011-S-02: LIFT STATION 2 UPGRADE; (PUBLIC SERVICES) RECOMMENDATION: Award the Project contract to Whitaker Construction Group, Inc., in the amount of $958,740. El MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 13, 2011 A-9 AWARD OF CONTRACT TO D-KAL ENGINEERING INC. OF SAN LUIS OBISPO, CA FOR THE PROJECT NO. MB-WC-1: SECTION 6 SEWER REHABILITATION; (PUBLIC SERVICES) RECOMMENDATION: Award the Project contract to D-Kal Engineering Inc., in the amount of $64,570. A-10 AWARD OF CONTRACT FOR DEL MAR PARK TENNIS COURT IMPROVEMENTS: MB-2011 -RP 1; (PUBLIC SERVICES) RECOMMENDATION: Award the Project contract to Malibu Pacific Tennis Courts Inc. in the amount of $297,650.00. A-11 APPROVAL OF THE AGREEMENT WITH THE CLARICE RIGHETTI TRUST TO LEASE A PORTION OF TRUST PROPERTY FOR THE CONSTRUCTION AND OPERATION OF THE NUTMEG WATER TANK; (PUBLIC SERVICES) RECOMMENDATION: Approve the Lease Agreement with the Clarice Righetti Trust for a portion of Trust property to be used for the construction of the is Nutmeg Water Tank A-12 PROCLAMATION DECLARING DECEMBER 4, 2011 AS ARBOR DAY; (RECREATION & PARKS) RECOMMENDATION: Adopt Proclamation. A-13 APPROVAL OF A NEW LEASE AGREEMENT FOR LEASE SITE 144/144W, BETWEEN THE CITY OF MORRO BAY AND CHARLES AND SANDRA MARCIEL, DOING BUSINESS AS M&M REFRIGERATION, LOCATED AT 1287 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 77-11 approving a new lease agreement for Lease Site 144/144W between the City of Morro Bay and Charles and Sandra Marciel, doing business as M&M Refrigeration, located at 1287 Embarcadero. Councilmember Smukler pulled Item A4 from the Consent Calendar; Mayor Yates pulled Item A-5. MOTION: Councilmember Johnson moved the City Council approve the Consent Calendar with the exception of Items A4 and A-5. The motion was seconded ® by Councilmember Borchard and carried unanimously. (5-0) ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 13, 2011 A-4 QUARTERLY FINANCIAL STATUS REPORT FOR THE FISCAL YEAR ENDED SEPT-EMBER 30, 2011; (ADMINISTRATIVE SERVICES) Councilmember Smukler asked a question relating to the water fund and its expenditures. Utilities/Capital Projects Manager Dylan Wade responded by giving an update on the water fund and the projected water rates. Administrative Services Director Susan Slayton responded the water fund in July of each year pays for the State Water contract. MOTION: Councilmember Smukler moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) A-5 APPROVAL OF AMENDMENT #1 TO THE LEASE AGREEMENT FOR LEASE SITE 110-112/110W-112W, AND 20' OF THE EASTERLY PORTION OF 111.5W, 0 BETWEEN THE CITY OF MORRO BAY AND GAFCO INC., LOCATED AT 1185 EMBARCADERO, AND AMENDMENT #1 TO THE LEASE AGREEMENT FOR LEASE SITE 124-128/124W-128W AND 113W, BETWEEN THE CITY OF MORRO BAY AND SEA ONE SOLUTIONS LLC, LOCATED AT 1215 EMBARCADERO;(HARBOR) Mayor Yates pulled this item in order for Councilmember Leage to step down due to a conflict of interest with this item. Councilmember Leage stepped down from the dais. MOTION: Councilmember Borchard moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Johnson and carried with Councilmember Leage abstaining. (4-0-1) Mayor Yates called for a break at 6:57 p.m.; the meeting resumed at 7:15 p.m. R MINUTES - MORRO BAY CITY COUNCIL 01 REGULAR MEETING — DECEMBER 13, 2011 B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 APPEAL OF THE PLANNING COMMISSION'S DECISION TO CONDITIONALLY APPROVE CONDITIONAL USE PERMIT UPO-233 AND COASTAL DEVELOPMENT PERMIT CPO-285 WHICH ALLOWED THE CONSTRUCTION OF A NEW 2-STORY, SPLIT LEVEL, 3,256-SQUARE FOOT RESIDENTIAL STRUCTURE INCLUDING AN ATTACHED 2-CAR 920- SQUARE FOOT GARAGE, 745-SQUARE FEET OF DECKING DECKS, AND A 711-SQUARE FOOT SECONDARY LIVING UNIT; (PUBLIC SERVICES) Planning Manager Kathleen Wold stated the project as described above was heard at a duly noticed public hearing on October 5, 2011 before the Planning Commission. During this meeting staff presented a report which provided project details including the environmental assessment, the proposed improvements including the house, the second unit, garage and access way and vegetation removal. The Planning Commission also took public testimony which included six individuals speaking in opposition of the project and five individuals speaking in favor of the project. Subsequent to the Planning Commission action and within the designated time frame, four appeals were filed requesting the City Council overturn the ® approval of the project. Staff' has reviewed the information contained within the appeal documents and found that there is no new material contained within these documents which would alter staffs recommendation for this project to be approved as conditioned. Ms. Wold stated due to the insufficient information provided by the appellants to demonstrate that the Planning Commission's findings or their approval were in error, staff therefore finds that the appeals are without merit and recommend the City Council deny the appeals and uphold the Planning Commission's approval of Conditional Use Permit UPO-233 and Coastal Development Permit CPO-285 subject to the Findings and the Conditions of Approval. Julian Smalley, appellant addressed his reasons for appealing this project. He said the project is fraught with potential future conflicts and in direct conflict with values espoused within the City's Local Coastal Plan. He noted the project plans do not provide for sufficient indemnification should neighbor properties suffer damage during blasting, grading, or rock removal. Mr. Smalley stated this project is divisive for the community, and approval would constitute poor stewardship of the City's ecological and cultural assets. Mr. Smalley encouraged the City Council to recognize Cerrito Peak as the singular asset it is, replete with wildlife and history, and requested Council to uphold the appeals before them and deny the development plans submitted for Cerrito Peak. VA ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 13, 2011 Nicole Dorfman, appellant, requested the City Council disregard the Mitigated Negative Declaration and require that an Environmental Impact Report be provided on this development. She stated there are two flaws in the study: 1) that this development is not visible from Scenic Highway 1; and 2) adverse affects on geology and soils; a detailed rock fall investigation must be performed on this development, risk reduction measures on adjacent properties, and long-term maintenance. Ms. Dorfman stated she supports private property owners' rights to develop their property_ within the rules and regulations of the land; however, she strongly objects to public domain being appropriated to serve for the infrastructure of the home. Kevin Elder, representing appellant Nancy Mellen, requested the Mitigated Negative Declaration and project be denied and not allowed to move forward. He discussed the surrounding project site as open space which is much like a public park and should not be destroyed with a development such as this. Mr. Elder noted the plans and elevations of this development are not detailed enough. He requested the City Council decline to approve the Mitigated Negative Declaration and decline to approve the project without preparation of an Environment Impact Report. ® John Thompson, appellant, stated the site map does not clearly show where the development will be located and where the grading will take place. He also noted the public does not know what the permanent significant impact would be on the wildlife and wider environment. Mr. Thompson stated the documents provided by the City revealed that the development would be located on soil that is unstable or would become unstable as a result of the project and could result in a potential landslide. He said there is evidence for potential significant impacts and an Environmental Impact Report should be provided on this development. Cathy Novak, representing the applicant, stated the appellants raise several legal concerns including the appropriateness of a Mitigated Negative Declaration versus an Environmental Impact Report. I will defer to the letter submitted by William Walter dated December 11, 2011 to discuss these items for the record and forego any other comments. She said the project plans as presented provide detailed information with topographic information, elevations, contour points, finished floor and height information that defines the location of the house, driveway, fencing, retaining walls and other pertinent information. The City has consistently required that projects provide sufficient details in order to evaluate projects for potential impacts and zoning compliance. The final designs will be prepared, reviewed and approved by licensed professionals and ultimately this project will be required to meet all the regulations. The appellants allege that the biological resource evaluations are invalid, misleading to the public and lack complete information regarding sensitive or special status species, in particular the Monarch Butterfly, migratory birds and rare plants. E? MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 13, 2011 The Fish and Game stated that "no rare plants were detected on the Project site without the actual. rare plant surveys being conducted." Furthermore, the Department states that appropriate avoidance measures for tree removal during migratory bird nesting season were not included within the document. The Department continued with recommendations that include tree removal outside the nesting season of February to September, or if this cannot be avoided then a qualified biologist would need to survey the project site, provide findings and protection measures if necessary. In reference to the Monarch Butterfly, during a biological assessment prepared by Mr. David Wolff, he notes that this would be considered a small winter roost aggregation as compared to 21,000 currently at the Pismo Beach winter roost site. He concludes his report by stating that while the site is used by the monarch butterfly, it does not support a substantial autumnal or winter roosting site. In his professional opinion, given the results of the autumn and winter roost surveys conducted on the project site and required tree replacement mitigation, potential impacts on the monarch butterfly would be considered to be at a less -than -significant level. There are three basic phases of concern to the developer, landowner, and the City. Phase One is an inventory of cultural resources and generally consists of a records search, a pedestrian field survey, and a written report. Phase Two is an evaluation of cultural resources and the purpose of this phase is to determine whether a cultural resource is "significant" as outlined in CEQA. Usually this will include ® test excavation pits and the goal is to determine the site boundaries, an assessment of the site's integrity, and an evaluation of the site's importance or significance through a study of its features and artifacts. A Phase Three is data recovery. These reports and evaluations are used by the City to assess the environmental impacts of a project. With this project, the archeologist concluded in his Phase I report that based upon his investigation the preliminary evidence suggests that this is a significant resource. A follow up letter by the applicant was provided to the City in December 2010 that acknowledged the site contains a unique archeological resource and for the City to proceed with identifying the appropriate measures to mitigate the impacts. Since this option to acknowledge the site as being significant was proposed prior to the circulation of the Mitigated Negative Declaration and Initial Study, the project impact discussion was treated as such and the mitigation measures were established based upon the assumed significance. Therefore, the mitigation measures contained in the Mitigated Negative Declaration are not relying on future studies that would provide any additional information to determine if this site is a significant cultural resource. Furthermore, appropriate mitigation measures allowed under State law include construction monitoring, data recovery and avoidance. Ms. Novak stated the applicant provided all the necessary plans and studies for evaluation in the Mitigated Negative Declaration and Initial Study. This project has undergone a rigorous analysis over several years by the City.and appropriate mitigation measures and project conditions have been included to meet CEQA requirements and were ultimately approved by the Planning Commission. She requested the City Council deny the four appeals and uphold the Planning Commission's approval of the Coastal Development Permit, Conditional Use Permit and Mitigated Negative Declaration along with ® the inclusion of the language to Environmental Condition 97 for clarity purposes only 7 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 13, 2011 Mayor Yates opened the hearing for public comment. The following people spoke in support of the appeals filed in opposition to the Planning Commission's approval of Conditional Use Permit UPO-233 and Coastal Development Permit CPO-285 subject to the Findings and the Conditions of Approval for the Jordan Terrace/Cerrito Peak Residential Project: Gloria Velasquez, David Nelson, Krista Kendall, Dorothy Cutter, Chris Bellano, Jessica Griffiths, Michael Lucas, Fred Collins, Bill Quigley, Berta Parrish (read a letter from a long-time resident), Don Boatman (read a letter from Dawn Borst), Eric Meyer, Sequoia (no last name), Barbara Jo Osborne, Mary Ann - no last name (read a letter from Roger Case), Abe Perlstine, Dave Shoemaker, Carina Cardin, Kate Martin, Andrew Christie, Betty Winholtz, Manzar Foroohar, Monique Black, Joe Moms, and Roger Ewing. The following people expressed respect for the wildlife that surrounds Morro Bay and the Native American sacred lands; however, they also expressed support for property rights and requested the City Council uphold the Planning Commission's approval of this residential project: Garry Johnson, Jessica Napier, John Finesse, William Dolmovic, John Barta, and Ken Vesterfelt. ® Mayor Yates closed the hearing for public comment. Mayor Yates called for a break at 9:06 p.m.; the meeting resumed at 9:25 p.m. Councilmember Smukler referred to Exhibit B (Standard Conditions) #5 — Hold Harmless; and suggested adding the following sentence based on the City Attorney's advice, inserted before the last paragraph: "Applicant understands and acknowledges the City is under no obligation to defend any legal actions challenging the City's actions with respect to the project." Councilmember Smukler also referred to Exhibit B (Standard Conditions) 93 — Chanees, and suggested the following amendments: "Miner All changes to the project shall be subject to review and approval by the Public Services Director. Any changes to the approved project deteFtnined fiet to be minef by the Difeete shall require the filing of an amendment subject to Planning Commission review." Councilmember Smukler referred to the replanting of trees and said he disagrees that the City has mitigated that issue stating that the replanting of 5-gallon trees is not going to establish a healthy habitat on the landscape based on the loss of trees removed. He said the replanting ratio should be increased within the public right-of-way. Councilmember Smukler referred to the public access and asked about the prescriptive rights. 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 13, 2011 Mayor Yates stated he supports the two -to -one tree replacement ratio. He said he does not support bringing minor changes to the Planning Commission noting he has faith in the Public Services Director to manage these changes. Mayor Yates stated he does support the additional language to Standard Condition #5 - Hold Harmless. He said there will be no blasting; and referred to the concern about drainage noting there is an engineer on staff that only handles drainage work. Mayor Yates stated there will be 270 trees left on the peak which will house butterflies. He said Cerrito Peak is private property, and this is a private property rights issue. Mayor Yates stated if the public does not want this built on then they should agree that this be purchased by the City as open space. He said he will be voting to deny all four appeals and uphold the Planning Commission's approval of Conditional Use Permit UPO-233 and Coastal Development Permit CPO-285. Councilmember Borchard stated she supports the additional language to Standard Condition 45 - Hold Harmless. She said she does not agree to the amendment to bring minor changes to the Planning Commission stating the Public Services Director is able to make a determination on what constitutes a minor change. Councilmember Borchard stated she also supports the two -to -one tree replacement ratio stating any more than that will block view sheds. ® Councilmember Johnson stated she also supports the additional language to Standard Condition 95 - Hold Harmless. She does not support the change to Standard Condition 93 — Changes. Councilmember Johnson stated this is about property rights, and this property owner has been paying taxes on this property. She said she will be voting to deny the appeals and support the Planning Commission's approval of Conditional Use Permit UPO- 233 and Coastal Development Permit CPO-285. r\ U Councilmember Leage stated this is about property rights. He said he would prefer this property be sold to someone other than the City who would dedicate it as open space. Councilmember Smukler referred to the Coastal Commission's letter received by Council, second paragraph confirming the legality of this lot, and asked staff for the record if the City followed the process and reviewed the historic records. Public Services Director Rob Livick responded a couple of years ago the City issued a Certificate of Compliance on this lot confirming that it is a legal lot which was recorded in 2004/2005. 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 13, 2011 MOTION: Councilmember Borchard moved the City Council deny the appeal and uphold the Planning Commission's approval of Conditional Use Permit UPO-233 and Coastal Development Permit CPO-285 subject to the Findings in Exhibit "A" and the Conditions of Approval in Exhibit `B"; and, to include the addition submitted by the applicant's agent of the two (2) Environmental Conditions (97 — Supplemental Text); and, to add the additional language to Standard Condition #5 - Hold Harmless as submitted by Councilmember Smukler. The motion was seconded by Mayor Yates and carried with Councilmember Smukler voting no. (4-1) MOTION: Councilmember Borchard moved the City Council approve the Mitigated Negative Declaration for Conditional Use Permit UPO-233 and Coastal Development Permit CPO-285 (Jordan Terrace/Cerrito Peak Residential Project.) The motion was seconded by Councilmember Johnson and carried with Councilmember Smukler voting no. (4-1) B-2 REVIEW AND PROVIDE RECOMMENDATIONS FOR THE CITY OF MORRO ® BAY SIGN CODE BASED ON WORKSHOP AND SURVEY RESULTS; (PUBLIC SERVICES) Mayor Yates continued this item to the January 10, 2012 City Council meeting. B-3 REVIEW AND ADOPT DRAFT FUNDING RECOMMENDATIONS FOR THE 2012 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS; (PUBLIC SERVICES) Public Services Director Rob Livick stated the CDBG fund is a flexible program providing communities with resources .to address a wide range of unique community development needs. The program works to ensure decent, affordable housing; to provide services for members of our community; and to create jobs through expansion and retention of businesses. On May 24, 2011, the City of Morro Bay agreed to join with the Urban County of San Luis Obispo, which is a consortium of participating jurisdictions that includes San Luis Obispo County and the Cities of Paso Robles, Atascadero, San Luis Obispo and Arroyo Grande for the purpose of receiving and allocating CDBG funds. The 2012 CDBG award process began in the fall of 2011. The first of two workshops were held throughout the County to solicit public comment on community needs. A needs workshop was held in Morro Bay on September 20, 2011 at the Community Center. The County published a request for CDBG proposals and the City received ten (10) applications. Total funding is anticipated to be approximately $93,405. Final funding amounts will be released by the Department of Housing and Community Development (HCD) in early 2012. 12 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 13, 2011 E Mr. Livick recommended the City Council review and adopts draft funding recommendations for the 2012 Community Development Block Grant funds; specifically the funding of the two requests from the City of Morro Bay. Mayor Yates opened the hearing for public comment. John Barta stated there are a lot of items on the menu, not just the sidewalks to repair that the City Council might want to consider. Mayor Yates closed the hearing for public comment. MOTION: Councilmember Borchard moved the City Council: 1) adopt the draft funding recommendations for the 2012 Community Development Block Grant funds and forward recommendations to the San Luis Obispo County Board of Supervisors for inclusion with the other requests from the Urban County Consortium; 2) forward the two items from the City. of Morro Bay: a) the barrier removal (ADA) project estimated at $74,724; and, b) program administration at $18,681, for a total of $93,405; and 3) authorize the City Manager to make pro rata adjustments to the allocation based on final funding amount from San Luis Obispo County. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) C. UNFINISHED BUSINESS — None. D. NEW BUSINESS D-1 REQUEST TO UTILIZE $600,000 OF THE AFFORDABLE HOUSING IN LIEU FUNDS FOR THE PROJECT LOCATED AT 555 MAIN STREET; (ADMINISTRATION) City Manager Andrea Lueker stated the City's Affordable Housing In Lieu account balance is approximately $650,000. Approximately $200,000 was allocated to a workforce housing project on Teresa Drive, and $400,000 allocated to the project at 555 Main Street. Several months ago, the City was notified that the Teresa Drive project was not moving forward, and the applicant had released those previously dedicated funds. Subsequently, staff has been contacted by the applicant for the 555 Main Street project about the possibility of allocating the disencumbered $200,000 to the project at 555 Main Street. Staff has been informed that the applicant is interested in purchasing the property at 555Main Street, and is hoping to close escrow by the December 31, 2011. Should the City Council authorize the use of the $600,000, staff will enter into negotiation on the terms and conditions of the loan. 13 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 13, 2011 Ms. Lueker recommended the City Council authorize utilization of $600,000 of the Affordable Housing In -Lieu Funds for the project located at 555 Main Street. MOTION: Councilmember Smukler moved the City Council authorize utilization of $600,000 of the Affordable Housing In -Lieu Funds for the project located at 555 Main Street. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) E. DECLARATION OF FUTURE AGENDA ITEMS Mayor Yates requested to agendize a discussion on a fee waiver on impact fees for residential building for five years; Councilmember Borchard, Councilmember Johnson, and Councilmember Leage concurred. Mayor Yates requested to agendize a discussion on the concept of a roundabout at the intersection of Highway 41 and Main Street; Councilmember Johnson and Councilmember Leage concurred. ® Mayor Yates requested to agendize a discussion on rescinding the resolution on larger lease site policies for waterfront development — there was no Council support. Councilmember Smukler requested to agendize a discussion on the closure of North Atascadero Beach; Mayor Yates, Councilmember Borchard, and Councilmember Johnson concurred. Councilmember Smukler requested to agendize a discussion on PG&E and their process with City street trees — Mayor Yates, Councilmember Borchard and Councilmember Johnson concurred. Councilmember Borchard requested to agendize a discussion on Jessica's Law — Mayor Yates and Councilmember Johnson concurred. ADJOURNMENT The meeting adjourned at 10:54 p.m. Recorded by: Brid ettding U ® g g City Clerk 14 City of Morro Bay Morro Bay, CA 93442 (805) 772-6200 NOTICE OF SPECIAL CLOSED SESSION MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Thursday, December 1, 2011 at 9:00 a.m. to be held in the City Hall Conference Room located at 595 Harbor Street, Morro Bay, California. The City Council will be discussing the following items: CS-1 GOVERNMENT CODE SECTION 54956.9(A); CONFERENCE WITH ® LEGAL COUNSEL REGARDING PENDING LITIGATION: STATUS REPORT ON ALL PENDING LI77GAT/ON. This is a report on status and no action may be taken on any matter not specifically listed. Council may request a specific matter be agendized in the future for action. CS-2 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS: Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property of the following real property: • Property: Chorro Valley Property Negotiating Parties: Chorro Valley Property Owners and City of Morro Bay Negotiations: Water Rights • Property: Dynegy Outfall Lease Negotiating Parties: Dynegy and City of Morro Bay Negotiations: Lease Terms and Conditions • Property: 552 Dunes Street Negotiating Parties: Shearer and City of Morro Bay. Negotiations: Voluntary Purchase and Sale L- • Property: SEC Embarcadero/Harbor Negotiating Parties: Hartzell and City of Morro Bay. Negotiations: Voluntary Purchase and Sale • Property: 1700 Embarcadero Negotiating Parties: Claassen and City of Morro Bay. Negotiations: Lease Terms and Conditions • Property: 144/144W; 1287 Embarcadero Negotiating Parties: M&M Refrigeration and City of Morro Bay. Negotiations: Lease Terms and Conditions. • Property: Lease Site 113W, 124-128/124W-128W; 1215 Embareadero Negotiating Parties: Sea One Solutions and City of Morro Bay. Negotiations: Lease Terms and Conditions • Property: Lease Site 110/110W-112/112W; 1185 Embarcadero Negotiating Parties: GAFCO and City of Morro Bay Negotiations: Lease Terms and Conditions DATED: November 28, 2011 IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 11 City of Morro Bay ® F Mere Bay, CA 93442 (805) 772-6200 C CITY OF MORRO BAY CITY COUNCIL NOTICE OF CANCELED MEETING THE REGULAR CITY COUNCIL MEETING SCHEDULED FOR TUESDAY, NOVEMBER 22, 2011 HAS BEEN CANCELED The next regularly scheduled meeting will be held on Tuesday. December 13, 20119 6:00 p.m., Veterans Hall. ® FINANCE ADMINISTRATION 595 Harbor Street 595 Harbor Street HARBOR DEPT. 1275 Embarcaderu Road CITY ATTORNEY 955 Shasta Avenue FIRE DEPT. 715 Harbor Street POLICE DEPT. 870 Morro Bav Boulevard PUBLIC SERVICES 955 Shasta Avenue RECREATION & PARKS 1001 Kennedv Wav ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — TUESDAY, NOVEMBER 8, 2011 CLOSED SESSION — TUESDAY, NOVEMBER 8, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA ® CS-1 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES Discussions regarding Personnel Issues including one (1) public employee regarding evaluation, specifically the City Attorney. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. ® PUBLIC SESSION — TUESDAY, NOVEMBER 8, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. ® • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A -I APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF OCTOBER 25, 2011; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. 4 11 A-2 AUTHORIZATION TO SUBMIT APPLICATIONS FOR CALRECYCLE GRANTS FOR RUBBERIZED PAVING; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 71-11 authorizing the Public Services Director to pursue the submittal of applications to CatRecycle for all grants for which the City of Morro Bay is eligible. A-3 APPROVE THE ADOPTION OF ORDINANCE NO. 574 AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF MORRO BAY AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (GOVERNMENT CODE SECTION 20475 - DIFFERENT LEVEL OF BENEFITS), SECTION 21353 (2% @ 60 FORMULA), AND SECTION 20037 (THREE YEAR FINAL COMPENSATION) FOR LOCAL MISCELLANEOUS MEMBERS ONLY; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Ordinance No. 574. A4 APPROVAL OF THE LEGAL ASSISTANT/DEPUTY CITY CLERK AND ACCOUNTING TECHNICIAN JOB DESCRIPTIONS AND AUTHORIZATION TO HIRE AN ACCOUNT CLERK I/II; (ADMINISTRATION) RECOMMENDATION: Approve two new job descriptions, the Legal Assistant/Deputy City Clerk and the Accounting Technician; and, authorize the hiring of an Account Clerk I/H position at % time. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 APPEAL OF THE PLANNING COMMISSION'S DECISION TO CONDITIONALLY APPROVE CONDITIONAL USE PERMIT UPO-233 AND COASTAL DEVELOPMENT PERMIT CPO-285 WHICH ALLOWED THE CONSTRUCTION OF A NEW 2-STORY, SPLIT LEVEL, 3,256-SQUARE FOOT RESIDENTIAL STRUCTURE INCLUDING AN ATTACHED 2-CAR 920- SQUARE FOOT GARAGE, 745-SQUARE FEET OF DECKING DECKS, AND A 711-SQUARE FOOT SECONDARY LIVING UNIT; (PUBLIC SERVICES) RECOMMENDATION: Continue this item to the December 13, 2011 City Council meeting due to noticing requirements. B-2 ORDINANCE NO. 575 AMENDING MORRO BAY MUNICIPAL CODE SECTION 5.04.330 REGARDING THE PROCEDURE FOR SUBMITTING CERTAIN BUSINESS LICENSE APPLICATIONS TO THE CHIEF OF POLICE AND CITY COUNCIL - INTRODUCTION AND FIRST READING; (CITY ATTORNEY) RECOMMENDATION: Approve the introductionand first reading of Ordinance No. 575, by number and title only, amending Morro Bay Municipal Code Section 5.04.330. 3 C. UNFINISHED BUSINESS — NONE. ® D. NEW BUSINESS D-I DISCUSSION OF IMPROVEMENTS FOR PEDESTRIAN ACCESS FROM THE "ROCK" PARKING AREA TO THE BEACH; (PUBLIC SERVICES) RECOMMENDATION: Discuss the potential project and provide direction to staff to schedule this item for review at the Recreation and Parks Commission and the Public Works Advisory Board and return to City Council with recommendations. E. DECLARATION OF FUTURE AGENDA ITEMS F. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE ® CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET DURING NORMAL BUSINESS HOURS OR AT THE SCHEDULED MEETING. 1 V. MINUTES - MORRO BAY CITY COUNCIL ® CLOSED SESSION —NOVEMBER 8, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m. PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION Mayor Yates adjourned the meeting to Closed Session and read the Closed Session Statement. Mayor Yates read the Closed Session Statement. CS-1 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES Discussions regarding Personnel Issues including one (1) public employee ® regarding evaluation, specifically the City Attorney. The meeting adjourned at 5:50 p.m. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — NOVEMBER 8, 2011 VETERANS MEMORIAL HALL - 6:00 P.M Mayor Yates called the meeting to order at 6:00 p.m. PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Eric Endersby Rob Livick Bryan Millard Mike Pond Susan Slayton Joe Woods City Manager City Attorney City Clerk Harbor Operations Manager Public Services Director Police Commander Fire Chief Administrative Services Director Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER ® MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT Susan MacDonell, General Manager for MV Transportation announced -the trolley will provide rides to and from the 14`s Annual Thanksgiving Dinner from 12:30 p.m. — 4:00 p.m. She also reviewed the new Morro Bay Transit bus stops, routes and times. Garry Johnson stated Santa Claus will be available for photographs at the Morro Bay Merchant's Fair on November 27's; funds collected from the photographs will go towards the San Luis Obispo County Women's Shelter. He also announced the Morro Bay Photo Expo is scheduled for March 29, 2012 and on-line registration is available. Craig Schmidt, Executive Director of the Morro Bay Chamber of Commerce, announced the Lady Washington TO Ship will be in the Morro Bay harbor November 17's-20'b. 2 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — NO VEMBER 8, 2011 He also announced the Morro Bay Expo and Mixer in conjunction with the San Luis Obispo Food Bank will be November 17's, and requested donations be made to help families in need over the holidays. Mr. Schmidt thanked those who helped with the Downtown Lighting Project. Kevin Rice referred to the Air Pollution Control Board Dust Study stating it is not valid or correct. He noted there are serious issues with dust problems with a 20,000 acre area and the study focuses on 1,200 acres. John Barta read a letter from Richard S. Otto to the Secretary of Commerce -in Washington D.C. regarding obtaining a permit to build an incline railway and resort at Morro Rock in 1924. He also suggested people go out to the annual celebration at the Point San Luis Lighthouse on December 10 th . Mayor Yates closed the hearing for public comment. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. ® A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF OCTOBER 25, 2011; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 AUTHORIZATION TO SUBMIT APPLICATIONS FOR CALRECYCLE GRANTS FOR RUBBERIZED PAVING; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 71-11 authorizing the Public Services Director to pursue the submittal of applications to CalRecycle for all grants for which the City of Morro Bay is eligible. A-3 APPROVE THE ADOPTION OF ORDINANCE NO. 574 AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF MORRO BAY AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (GOVERNMENT CODE SECTION 20475 - DIFFERENT LEVEL OF BENEFITS), SECTION 21353 (2% @ 60 FORMULA), AND SECTION 20037 (THREE YEAR FINAL COMPENSATION) FOR LOCAL MISCELLANEOUS MEMBERS ONLY; (ADMINISTRATIVE SERVICES) 0 RECOMMENDATION: Adopt Ordinance No. 574. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NO VEMBER 8, 2011 ® A4 APPROVAL OF THE LEGAL ASSISTANT/DEPUTY CITY CLERK AND ACCOUNTING TECHNICIAN JOB DESCRIPTIONS AND AUTHORIZATION TO HIRE AN ACCOUNT CLERK UII; (ADMINISTRATION) RECOMMENDATION: Approve two new job descriptions, the Legal Assistant/Deputy City Clerk and the Accounting Technician; and, authorize the hiring of an Account Clerk VH position at'/a time. Councilmember Smukler pulled Item A4 from the Consent Calendar. MOTION: Councilmeritber Smukler moved the City Council approve the Consent Calendar with the exception of Item A-4. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) Councilmember Leage stepped out of the meeting. A-4 APPROVAL OF THE LEGAL ASSISTANT/DEPUTY CITY CLERK AND ACCOUNTING TECHNICIAN JOB DESCRIPTIONS AND AUTHORIZATION TO HIRE AN ACCOUNT CLERK I/1I; (ADMINISTRATION) Councilmember Smukler pulled this item in order for the City Manager to review the internal ® reorganization of the City's Administrative Services Department, and describe the job description changes for public information. MOTION: Councilmember Smukler moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Councilmember Johnson and the motion carried with Councilmember Leage absent. (4-0-1) Councilmember Leage returned to his seat. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 APPEAL OF THE PLANNING COMMISSION'S DECISION TO CONDITIONALLY APPROVE CONDITIONAL USE PERMIT UPO-233 AND COASTAL DEVELOPMENT PERMIT CPO-285 WHICH ALLOWED THE CONSTRUCTION OF A NEW 2-STORY, SPLIT LEVEL, 3,256-SQUARE FOOT RESIDENTIAL STRUCTURE INCLUDING AN ATTACHED 2-CAR 920- SQUARE FOOT GARAGE, 745-SQUARE FEET OF DECKING DECKS, AND A 711-SQUARE FOOT SECONDARY LIVING UNIT; (PUBLIC SERVICES) MOTION: Councilmember Borchard moved the City Council continue this public hearing to the December 13, 2011 City Council meeting. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) is 4 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 8, 2011 B-2 ORDINANCE NO. 575 AMENDING MORRO BAY MUNICIPAL CODE SECTION 5.04.330 REGARDING THE PROCEDURE FOR SUBMITTING CERTAIN BUSINESS LICENSE APPLICATIONS TO THE CHIEF OF POLICE AND CITY COUNCIL - INTRODUCTION AND FIRST READING; (CITY ATTORNEY) City Attorney Robert Schultz stated Morro Bay Municipal Code (MBMC) Section 5.04.330 regulates and requires a separate City Council public hearing prior to the issuance of a business license for the following businesses: arcade, carnival, circus, money lending, pawnbroker, massage parlor, tent show and private patrol service. MBMC Section 5.04.330 also requires these businesses to annually undergo a public hearing before the City Council to obtain renewal of their business license. Ordinance 575 would eliminate the annual public hearing before the City Council for these businesses. The proposed amendments to MBMC 5.04.330 only relate to obtaining a business license. These businesses will still have to comply with the requirements of approvals granted under the City's zoning code in regard to use permits. Mr. Schultz recommended the City Council approve the introduction and first reading of Ordinance No. 575, by number and title only, amending Morro Bay Municipal Code Section 5.04.330. Councilmember Smukler stated he voted in opposition to this item at the last City Council ® meeting due to concern with the public comment process; however, he has found there will be time for public comment during the permit process. Mayor Yates opened the hearing for public comment; there were no comments, and Mayor Yates closed the hearing for public comment. MOTION: Councilmember Johnson moved the City Council approve the introduction and first reading of Ordinance No. 575, by number and title only, amending Morro Bay Municipal Code Section 5.04.330 regarding the procedure for submitting certain business license applications to the Chief of Police and City Council. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) City Manager Andrea Lueker read Ordinance No. 575 by number and title only. C. UNFINISHED BUSINESS — NONE. 5 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —NOVEMBER 8, 2011 D. NEW BUSINESS D-1 DISCUSSION OF IMPROVEMENTS FOR PEDESTRIAN ACCESS FROM THE "ROCK" PARKING AREA TO THE BEACH; (PUBLIC SERVICES) Public Services Director Rob Livick stated at the August 23, 2011 meeting of the City Council, Councilmember Smukler requested that the subject of beach access from the Rock parking lot down to the beach area near the "wet sand" be agenized and brought back to Council for discussion. Improvements recommended in the approved Waterfront Master Plan include a stair access from the parking lot to the beach level. Development of stairs for the able bodied without accommodations for the disabled are problematic and could expose the City to potential legal action under the American with Disabilities Act (ADA). In order to comply with ADA, in addition to the stair way a ramp would need to be constructed to accommodate both users. Development of a beach access ramp from the Rock parking lot to the beach will need to meet the Federal Access Board requirements for beach access. Additionally, the landing will need to be able to withstand the wave action during the winter storm season. The area proposed for the development of the access is within the Coastal Commission's original jurisdiction and will require a Coastal Permit issued by the California Coastal Commission along with the required local permitting. Additionally, the project will ® require a specialized foundation design by an engineer with specialty in coastal engineering due to the impact of wave action. Mr. Livick recommended the City Council discuss the potential project and provide direction to staff to schedule this item for review at the Recreation and Parks Commission and the Public Works Advisory Board and return to City Council with recommendations. Councilmember Smukler shared photographs taken by a citizen at the Morro Rock beach, and discussed different options on how to provide the public with an access to the beach. Councilmember Leage announced architects Bill and Toni Woody who drew plans for improvements of the overall Morro Rock area. Mr. Woody reviewed the plans for Council and the public's information. He said the design is proposed to be done in stages. Councilmember Borchard stated it is a good conceptual plan. She referred to the Waterfront Master Plan prepared by RRM Designs, and asked how this plan would work with the Waterfront Master Plan. Councilmember Johnson stated she supports both of these issues moving forward to the City's Recreation & Parks Commission, Harbor Advisory Board and Public Works Advisory Board as separate items. She said the proposed ramp should not be contingent on the conceptual plan prepared by Mr. and Mrs. Woody. Councilmember Johnson stated the conceptual plan should be considered as a contingency to the Coleman Park project. P, MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 8, 2011 Councilmember Borchard stated she agrees that the ramp should be considered separately; it is an issue of accessibility to the beach. The proposed concept plan is more of aesthetics and should be considered with the other plans that have been prepared. Mayor Yates stated both plans should move forward as separate items. MOTION: Councilmember Smukler moved the City Council: 1) submit the ramp concept to the Recreation & Parks Commission, Public Works Advisory Board and Harbor Advisory Board for their comments and feedback; 2) staff begin initial dialog with local engineers regarding the best placement of the ramp; and 3) separately submit to the Recreation & Parks Commission, Public Works Advisory Board, and Harbor Advisory Board the review of the Morro Rock development in conjunction with the Target Rock and Coleman Park Concept and Master Plans. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) E. DECLARATION OF FUTURE AGENDA ITEMS — None. ADJOURNMENT ® The meeting adjourned at 7:17 p.m. Recorded by: Bridgett Kesslmg City Clerk El ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — TUESDAY, OCTOBER 25, 2011 CLOSED SESSION — TUESDAY, OCTOBER 25, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR ® NEGOTIATOR. Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. CS-2 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel. CS-3 Property: 451 Embarcadero, Morro Bay, CA Negotiating Parties: Reg Whibley and the City of Morro Bay Negotiations: Lease Terms and Conditions Discussions regarding Personnel Issues including one (1) public employee regarding evaluation, specifically the City Attorney. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ® ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. PUBLIC SESSION — TUESDAY, OCTOBER 25, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. ® • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. n In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205: Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF THE MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF OCTOBER 11, 2011; (ADMINISTRATION) RECOMMENDATION: Approve minutes as submitted. 2 ® A-2 RESOLUTION TO APPROVE AMENDMENT #2 TO THE LEASE AGREEMENT FOR LEASE SITE 50-51/50W-51W, LOCATED AT 451 EMBARCADERO, BETWEEN REG WIMLEY AND THE CITY OF MORRO BAY; (HARBOR) RECOMMENDATION: Adopt Resolution No. 70-11. B. PUBLIC HEARINGS. REPORTS & APPEARANCES — NONE. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 CONSIDERATION OF AN AMENDMENT TO MORRO BAY MUNICIPAL CODE SECTION 5.04.330 REGARDING THE PROCEDURE FOR SUBMITTING CERTAIN BUSINESS LICENSE APPLICATIONS TO THE CHIEF OF POLICE AND CITY COUNCIL; (CITY ATTORNEY) RECOMMENDATION: Review the report and draft amendment to Morro Bay Municipal Code Section 5.04.330 regarding the procedure for submitting certain business license applications to the Chief of Police and City Council, and direct staff to return with this item for introduction and first reading with any changes suggested by Council. ® E. DECLARATION OF FUTURE AGENDA ITEMS n U F. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET DURING NORMAL BUSINESS HOURS OR AT THE SCHEDULED MEETING. t ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — OCTOBER 25, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker Susan Slayton Jamie Boucher Sue Lichtenbaum CLOSED SESSION City Manager Administrative Services Director Human Resource Analyst Harbor Business Manager Mayor Yates adjourned the meeting to Closed Session and read the Closed Session Statement. Mayor Yates read the Closed Session Statement. ® CS-1 GOVERNMENT CODE SECTIOr LABOR NEGOTIATOR. Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. CS-2 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel. Property: 451 Embarcadero, Morro Bay, CA Negotiating Parties: Reg Whibley and the City of Morro Bay Negotiations: Lease Terms and Conditions CS-3 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES Discussions regarding Personnel Issues including one (1) public employee regarding evaluation, specifically the City Attorney. 0 The meeting adjourned at 5:50 p.m. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m. PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Jamie Boucher Deputy City Clerk Susan Lichtenbaum Harbor Business Manager Rob Livick Public Services Director Tim Olivas Police Chief Mike Pond Fire Chief Susan Slayton Administrative Services Director Joe Woods Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER ® MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT - City Manager Andrea Lueker reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. n PUBLIC COMMENT Wee of Wee Shack announced his new restaurant at 1698 Main Street. He said all food served is fresh and they serve breakfast and lunch all day from 7:00 am-8:00 pm. He thanked all of the local patrons who have come in to support his new establishment. Matt Makowetski representing Project Surf Camp shared a PowerPoint show of this year's event that took place in Morro Bay where special needs children come from all over the nation to learn and play in the surf. . John Taylor, Founder and Executive Director of Project Surf Camp stated this is a non- profit organization started for special needs children. He said there were 281 campers and 500 volunteers that participated at this year's event. Mr. Taylor stated this also involves the families of the special needs children to promote a family leisure activity. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2011 Liz Bednorz, Beach House Bistro announced the North Morro Bay Merchants Co-op will be holding a Halloween Fair and Costume Party on October 301' at Spencers Market parking lot. She said it is free with a donation to the Food Bank. Craig Schmidt, Executive Director of the Chamber of Commerce announced the Business Expo will be held on November 17's at the Morro Bay Community Center, and the Lighted Boat Parade will be held on the evening of December 3rd. Betty Winholtz referred to Item D-1 (Consideration of an Amendment to Morro Bay Municipal Code Section 5.04.330 Regarding the Procedure for Submitting Certain Business License Applications to the Chief of Police and City Council) stating the Mayor has made several changes to the City's Municipal Code which narrows the democratic process. She said this Ordinance eliminates public input on certain businesses that can affect business neighborhoods and the reputation of our town. For this reason, the law currently provides for public input through public review before the City Council.. Ms. Winholtz stated the proposed change removes public input; changes the requirement for background checks from "shall to may"; requires no annual review, and, it does not limit the age of people who would be participating in these businesses. The proposed change leaves all discretion to the Chief of Police who should not be the one responsible for ® setting the morals for the City. Ms. Winholtz requested the City Council not move forward with this amendment to the Municipal Code. Robert Schreiber referred to a tree at 508 Shasta Street that he would like removed because it is a hazard. He said the City has done some pruning to the tree by removing the inner branches which causes it to be more susceptible to the wind. Mr. Schreiber stated he would like to be eligible to bid on the removal of this tree. Mayor Yates closed the hearing for public comment. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. AA APPROVAL OF THE MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF OCTOBER 11, 2011; (ADMINISTRATION) RECOMMENDATION: Approve minutes as submitted. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25. 2011 A-2 RESOLUTION TO APPROVE AMENDMENT #2 TO THE LEASE AGREEMENT FOR LEASE SITE 50-51/50W-51W, LOCATED AT 451 EMBARCADERO, BETWEEN REG WHIBLEY AND THE CITY OF MORRO BAY; (HARBOR) RECOMMENDATION: Adopt Resolution No. 70-11. MOTION: Councilmember Borchard moved the City Council approve the Consent Calendar. The motion was seconded by Councilmember Leage and carried unanimously. (5-0) B. PUBLIC HEARINGS, REPORTS & APPEARANCES — NONE. C. UNFINISHED BUSINESS —NONE. D. NEW BUSINESS D-1 CONSIDERATION OF AN AMENDMENT TO MORRO BAY MUNICIPAL ® CODE SECTION 5.04.330 REGARDING THE PROCEDURE FOR SUBMITTING CERTAIN BUSINESS LICENSE APPLICATIONS TO THE CHIEF OF POLICE AND CITY COUNCIL; (CITY ATTORNEY) l Police Chief Tim Olivas stated Morro Bay Municipal Code (MBMC) Section 5.04.330 is the current regulation for obtaining an Arcade business license. In addition to Arcades, MBMC Section 5.04.330 also regulates the following businesses: carnival, circus, money lending, pawnbroker, massage parlor, tent show and private patrol service. MBMC Section 5.04.330 requires the above -referenced businesses to obtain a business license from the City Council annually after a noticed public hearing. The proposed amendment to MBMC Section 5.04.330 would eliminate the annual noticed public hearing requirement for these businesses and instead require the approval from the Chief of Police. Chief Olivas recommended the City Council review the draft amendment to MBMC 5.04.330 regarding the procedure for submitting certain business license applications to the Chief of Police, and direct staff to return this item to Council with an Ordinance for Introduction and First Reading with any changes suggested by Council. MOTION: Councilmember Borchard moved the City Council direct staff to return to the City Council with an Ordinance for introduction and first reading amending Morro Bay Municipal Code 5.04.330 as proposed in the staff report. The motion was seconded by Councilmember Johnson. M ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2011 Councilmember Smukler stated he will be voting in opposition to this motion. He said he understands the case for the Police Chief to perform annual reviews on current businesses; however, he finds that new businesses should go through the public process. VOTE: The motion carried with Councilmember Smukler voting no. (4-1) E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Johnson requested to agendize a presentation by the Economic Vitality Corporation regarding the current economic climate in San Luis Obispo County; Councilmember Borchard and Councilmember Smukler agreed. ADJOURNMENT The meeting adjourned at 6:38 p.m. Recorded by: Jamie Boucher Deputy City Clerk 5 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — TUESDAY, OCTOBER 11, 2011 CLOSED SESSION — TUESDAY, OCTOBER 11, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES ® Discussions regarding Personnel Issues including two (2) public employees regarding evaluation, specifically the City Attorney and the City Manager. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. PUBLIC SESSION — TUESDAY, OCTOBER 11, 2011 ® VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, ® comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting; please contact the City Clerk, (805) 772-6205. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF THE MINUTES FOR THE JOINT CITY COUNCIL/ PLANNING COMMISSION MEETING ON SEPTEMBER 13, 2011, AND THE REGULAR CITY COUNCIL MEETING OF SEPTEMBER 27, 2011; (ADMINISTRATION) RECOMMENDATION: Approve minutes as submitted. a] 2 A-2 ADOPTION OF ORDINANCE NO. 573 AMENDING CHAPTER 2.06 OF THE ® MORRO BAY MUNICIPAL CODE FROM COUNCILMEN TO COUNCILMEMBERS AND ADDING SECTION 2.06.040 REGARDING APPOINTMENT OF BOARDS AND COMMISSIONS; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 573. A-3 RESOLUTION NO. 69-11 INTENTION TO APPROVE AN AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY OF MORRO BAY - MISCELLANEOUS EMPLOYEES; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 69-11. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 INTRODUCTION AND FIRST READING OF ORDINANCE NO. 574 AUTHORIZING THE AMENDMENT OF SECTION 20475 (DIFFERENT LEVEL OF BENEFITS); SECTION 21353 (2% @ 60 FULL FORMULA); AND SECTION 20037 (THREE-YEAR FINAL COMPENSATION) FOR NEW HIRES IN THE PERS MISCELLANEOUS GROUP — INTRODUCTION AND FIRST READING; (ADMINISTRATIVE SERVICES) ® RECOMMENDATION: Approve introduction and first reading of Ordinance No. 574 by number and title only. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 DISCUSSION ON THE STATUS OF THE CITY RENTAL PROPERTY ON SHASTA STREET; (RECREATION& PARKS) RECOMMENDATION: Consider the high cost of renovating the real property at 983 and 985 Shasta Street and direct staff to proceed with demolition of each site. D-2 DISCUSSION ON TOILET RETROFIT REBATE PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Review and discuss the City's Toilet Retrofit Rebate Program and provide direction to staff on any changes. D-3 STATUS REPORT ON MORRO ROCK PARKING LOT SOLID WASTE SERVICE; (PUBLIC SERVICES) ® RECOMMENDATION: Receive report and provide direction as necessary. 3 E. DECLARATION OF FUTURE AGENDA ITEMS 0 F. ADJOURNMENT ►J THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET DURING NORMAL BUSINESS HOURS OR AT THE SCHEDULED MEETING. 0 MINUTES - MORRO BAY CITY COUNCIL ® CLOSED SESSION — OCTOBER 11, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION Mayor Yates adjourned the meeting to Closed Session and read the Closed Session Statement. Mayor Yates read the Closed Session Statement. CS-1 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES ® Discussions regarding Personnel Issues including two (2) public employees regarding evaluation, specifically the City Attorney and the City Manager. The meeting adjourned at 5:55 p.m. to Open Session and reconvened after Open Session at the Veterans Memorial Hall located at 209 Surf Street, Morro Bay, CA. n U MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — OCTOBER 11, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:10 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Susan Lichtenbaum Rob Livick Tim Olivas Mike Pond Susan Slayton Dylan Wade Joe Woods City Manager City Attorney City Clerk Harbor Business Manager Public Services Director Police Chief Fire Chief Administrative Services Director Utilities/Capital Projects Manager Recreation & Parks Director ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT — Mayor Yates reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken; he noted the City Council will adjourn the Open Session meeting to further discuss Closed Session. PUBLIC COMMENT Todd Gailey, Fire Engineer/Paramedic, announced Rescue Challenge 2011 will be held on October 29d' at Coleman Park which is a fitness competition between the Morro Bay Fire Department and the U.S. Coast Guard to raise funds for the Morro Bay Community Foundation. Steve Knuckles, Fire Captain/Paramedic, announced the Morro Bay Fire Department and fire departments around the County, along with Carina Corral and Richard Gearhart from KSBY TV will be participating in the 23`d Annual San Luis Obispo County Burn Relay to support the Alisa Ann Ruch Burn Foundation by going to schools around the County to teach children about fire safety and to raise funds for the Foundation. Mayor Yates closed the hearing for public comment. n =J MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — OCTOBER 11, 2011 A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF THE MINUTES FOR THE JOINT CITY COUNCIL/ PLANNING COMMISSION MEETING ON SEPTEMBER 13, 2011, AND THE REGULAR CITY COUNCIL MEETING OF SEPTEMBER 27, 2011; (ADMINISTRATION RECOMMENDATION: Approve minutes as submitted. A-2 ADOPTION OF ORDINANCE NO. 573 AMENDING CHAPTER 2.06 OF THE MORRO BAY MUNICIPAL CODE FROM COUNCILMEN TO COUNCILMEMBERS AND ADDING SECTION 2.06.040 REGARDING APPOINTMENT OF BOARDS AND COMMISSIONS; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 573. A-3 RESOLUTION NO. 69-11 INTENTION TO APPROVE AN AMENDMENT TO ® THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY OF MORRO BAY- MISCELLANEOUS EMPLOYEES; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 69-11. MOTION: Councilmember Borchard moved the City Council approve the Consent Calendar. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 INTRODUCTION AND FIRST READING OF ORDINANCE NO. 574 AUTHORIZING THE AMENDMENT OF SECTION 20475 (DIFFERENT LEVEL OF BENEFITS); SECTION 21353 (2% @ 60 FULL FORMULA); AND SECTION 20037 (THREE-YEAR FINAL COMPENSATION FOR NEW HIRES IN THE PERS MISCELLANEOUS GROUP — INTRODUCTION AND FIRST READING; (ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton stated the Resolution of Intention and Ordinance are required by PERS in order to amend the PERS contract. PERS' procedure ® further requires the Ordinance not be finally adopted until 20 days have passed since the adoption of the Resolution of Intention. 3 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — OCTOBER 11, 2011 U Ms. Slayton recommended the City Council approve the introduction and first reading of Ordinance No. 574, authorizing the amendment of Different Level of Benefits, 2% @ 60 Full Formula and Three -Year Final Compensation for all newly -hired PERS miscellaneous employees. Mayor Yates opened the hearing for public comment; there were no comments, and Mayor Yates closed the hearing for public comment. MOTION: Councilmember Johnson moved the City Council approve the introduction and first reading of Ordinance No. 574, authorizing the amendment of Different Level of Benefits, 2% @ 60 Full Formula and Three -Year Final Compensation for all newly -hired PERS miscellaneous employees. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) City Manager Andrea Lueker read Ordinance No. 574 by number and title only- C. UNFINISHED BUSINESS — None. D. NEW BUSINESS D-I DISCUSSION ON THE STATUS OF THE CITY RENTAL PROPERTY ON SHASTA AVENUE; (RECREATION & PARKS) Recreation and Parks Director Joe Woods stated staff has inspected the current condition of the real property at both 983 and 985 Shasta Avenue, and has found that both structures have failing building systems and would be costly to repair. The residences are non -inhabitable due to failing infrastructure, and extremely dilapidated building systems. Both structures contain significant amounts of hazardous material, which by regulation; require specific handling, which would have to be addressed should any repair work or demolition to occur. The option of repair costs has doubled based on the deteriorating conditions of the buildings and availability for a more thorough inspection due to the properties now being vacant: Staff feels the benefit of removal of these structures would allow for City resources to be redirected. Mr. Woods recommended the City Council consider the high cost of renovating the real property at 983 and 985 Shasta Avenue and direct staff to proceed with demolition of each site. MOTION: Mayor Yates moved the City Council direct staff to demolish the properties at 975, 983 and 985 Shasta Avenue; that the demolition leaves the ground ready for a pocket park or community (garden) park; and, that staff includes the installation of a hose bib on the property upon completion. The motion was seconded by Councilmember Leage. C MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — OCTOBER 11, 2011 Mayor Yates amended his motion to include that this project will be brought to a conclusion within six months. Councilmember Leage accepted the amendment to his second to the motion. VOTE: The motion carried unanimously. (5-0) D-2 DISCUSSION ON TOILET RETROFIT REBATE PROGRAM; (PUBLIC SERVICES) Utilities/Capital Projects Manager Dylan Wade stated this item is being brought to the City Council for discussion on how or if to pursue the retrofit rebate program. Some potential options are: 1) keep the current program as it exists and is interpreted. Positive aspects are the City will continue to provide an incentive for the conversion of the few remaining 3gpm toilets. The potential negative aspects are that there are few remaining fixtures out there and that the program in this fashion may not be interpreted as adequate by DWR during the 2015 Urban Water Management Plan (UWMP) review process; 2) allow and provide an incentive to convert between 1.6gpf and 1.28gpf. The positive aspects are that the City's program would likely be acceptable in the 2015 UWMP review and some additional conservation will be achieved. The negative aspects are the potential liability to the water fund of replacing all of ® the toilets in Morro Bay at $100 each; 3) create a program that provides an incentive for retrofitting below the 1.28gpf such as requiring dual flush toilets that use .8gpf for one flush type and 1.28 for the other. The positive aspects of this decision are that the City's program would likely be acceptable in the 2015 UWMP review and some additional conservation will be achieved. The negative aspects are the potential liability to the water fund of replacing all of the toilets in Morro Bay at $100 each; 4) some other alternative that the Council develops that staff did not anticipate; or, 5) elimination of the entire program. The positive aspects are the reduced costs associated with implementing the program. The negatives are the potential impact to future grant funding opportunities. Mr. Wade recommended the City Council review and discusses the City of Morro Bay's Toilet Retrofit Rebate Program and provides direction to staff on any changes. Ell MOTION: Councilmember Smukler moved the City Council approve Option #1: Keep -the current program as it exists and is interpreted. Positive aspects are the City will continue to provide an incentive for the conversion of the few remaining 3gpm toilets. The potential negative aspects are that there are few remaining fixtures out there and that the program in this fashion may not be interpreted as adequate by DWR during the 2015 UWMP review process. Council added an adjustment that dual flush toilets will be used as the standard with future retrofits in the program. The motion was seconded by Councilmember Leage and carried unanimously. (5-0) 5 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 11, 2011 D-3 STATUS REPORT ON MORRO ROCK PARKING LOT SOLID WASTE SERVICE; (PUBLIC SERVICES) Public Services Director Rob Livick summarized the solid waste collection activities that take place at the Morro Rock parking lot noting Sunday collection was*discontinued about 10 years ago as there was not enough interest from businesses to warrant offering the service due to the cost being prohibitive since Morro Bay Garbage Service would have to charge the cost for collection and Sundays would be double time for equipment and personnel. He said the Recreation & Parks maintenance employees are responsible for garbage collection in the Rock restroom and the immediate surrounding area. A part-time Harbor maintenance employee, in addition to other duties, is responsible for garbage collection every Sunday from the 2nd week in May through the 2nd week in September of all the aggregate containers on the waterfront from the launch ramp to the Rock (north and south sides). In the off-season this level of collection activity ceases as the Morro Bay Garbage Service collection schedule suffices to keep up with the volume accumulated. The lack of Sunday trash service and subsequent overflow issue was the genesis of the position being created. The City is aware that Morro Bay Beautiful meets each Monday to collect garbage along the waterfront and Rock parking lot. Mr. Livick recommended the City Council receive this information and direct staff ® accordingly. Council consensus was to direct staff to research bird proof garbage cans; identify a funding mechanism; and, return to Council in four months with a status report. No further action was taken on this item. E. DECLARATION OF FUTURE AGENDA ITEMS Mayor Yates requested to agendize a discussion on a Civic Center Master Plan; he received Council consensus. ADJOURNMENT The meeting adjourned to Closed Session at 7:15 p.m. Recorded by: BridgettKessling City Clerk N. ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — TUESDAY, SEPTEMBER 27, 2011 CLOSED SESSION — TUESDAY, SEPTEMBER 27, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54957: PERSONNEL ISSUES Discussions regarding Personnel Issues including two (2) public employees regarding ® evaluation, specifically the City Attorney and the City Manager. CS-2 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY TRANSACTIONS Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to at least one (1) parcel: • Property: Chorro Valley Property. Negotiating Parties: Chorro Valley Property Owners and City of Morro Bay. Negotiations: Water rights. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. u PUBLIC SESSION — TUESDAY, SEPTEMBER 27, 2011 ® VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA 2 ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR REGULAR CITY COUNCIL MEETING OF SEPTEMBER 13, 2011; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. 2 A-2 RESOLUTION NO. 66-11 AUTHORIZING PAYING AND REPORTING THE VALUE OF EMPLOYER PAID MEMBER CONTRIBUTIONS (EPMC) FOR THE ® SERVICE EMPLOYEES INTERNATIONAL UNION (SEIU), LOCAL 620, EMPLOYEES; (ADMINISTRATIVE SERVICES) n L- n RECOMMENDATION: Adopt Resolution No. 66-11. A-3 RESOLUTION NO. 67-11 ACCEPTANCE OF AN OFFER OF DEDICATION OF PUBLIC PEDESTRIAN EASEMENT FOR SIDEWALK PURPOSES ON ERROL STREET FOR TACO BELL (1700 MAIN ST.); (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 66-11. AA ADOPTION OF ORDINANCE NO. 570 AMENDING THE CITY OF MORRO BAY MUNICIPAL CODE TITLE 13 PUBLIC UTILITIES, CHAPTER 13.04 WATER SERVICE AND RATES, SECTION 13.04.070 APPLICATION FOR REGULAR SERVICE - TO REQUIRE IDENTIFICATION; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Ordinance No. 570. A-5 ADOPTION OF ORDINANCE NO. 571 AMENDING THE CITY OF MORRO BAY MUNICIPAL CODE TITLE 3 REVENUE AND FINANCE, CHAPTER 3.30 UNCLAIMED MONEY AND PROPERTY, SECTION 3.30.080 PROCEEDS TO BE DEPOSITED IN GENERAL FUND TO READ DISPOSITION OF PROCEEDS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Ordinance No. 571. A-6 ADOPTION OF ORDINANCE NO. 572 REPEALING CHAPTER 2.28 OF THE MORRO BAY MUNICIPAL CODE RELATED TO THE PLANNING COMMISSION AND IMPLEMENTING INSTEAD THE PLANNING COMMISSION BY-LAWS; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 572. A-7 REPORT ON THE FINDINGS RELATING TO THE MORRO BAY MARKETING WORKSHOP; (ADMINISTRATION) RECOMMENDATION: Review the findings from the Marketing Workshop. A-8 PROCLAMATION DECLARING OCTOBER 2011 AS "RIDESHARE MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. 3 B. PUBLIC HEARINGS. REPORTS & APPEARANCES ® B-1 CONSIDERATION OF ESTERO BAY TRANSIT SERVICE PROPOSAL, (PUBLIC SERVICES) RECOMMENDATION: Review the Estero Bay Transit Service proposal from the San Luis Obispo Council of Governments, review the Public Works Advisory Board meeting discussion and direct staff accordingly. B-2 RESOLUTION NO. 68-I1 ACCEPTING $100,000 GRANT FROM THE STATE OF CALIFORNIA CITIZENS OPTION FOR PUBLIC SAFETY (COPS) PROGRAM; (POLICE) RECOMMENDATION: Adopt Resolution No. 68-11. B-3 ORDINANCE NO. 573 AMENDING SECTION 2.06 OF THE MORRO BAY MUNICIPAL CODE FROM COUNCILMEN TO COUNCILMEMBERS AND ADDING SECTION 2.06.040 REGARDING APPOINTMENT OF BOARDS AND COMMISSIONS - FIRST READINGMgTRODUCTION; (CITY ATTORNEY) RECOMMENDATION: Approve Ordinance No. 573 for first reading and introduction by number and title only. C. UNFINISHED BUSINESS ® C-I REPORT ON THE FINDINGS OF THE MORRO BAY VISITORS CENTER WORKSHOP AND DISCUSSION OF OPTIONS FOR CONTINUED OPERATIONS, (ADMINISTRATION) RECOMMENDATION: Based on the progress and changes made to date with the Visitors Center as well as the information gleaned from the Visitors Center Workshop, staff recommends the City Council continue to contract with the Morro Bay Chamber of Commerce for the operations of the Visitors Center, extending their contract through June 2012. D. NEW BUSINESS — NONE. E. DECLARATION OF FUTURE AGENDA ITEMS F. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CCTV ® COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET DURING NORMAL BUSINESS HOURS OR AT THE SCHEDULED MEETING. 4 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — SEPTEMBER 27, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION Mayor Yates adjourned the meeting to Closed Session and read the Closed Session Statement. Mayor Yates read the Closed Session Statement. CS-1 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES ® Discussions regarding Personnel Issues including two (2) public employees regarding evaluation, specifically the City Attorney and the City Manager. CS-2 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to at least one (1) parcel: • Property: Chorro Valley Property Negotiating Parties: Chorro Valley Property Owners and City of Morro Bay Negotiations: Water rights. The meeting adjourned at 5:50 p.m. El ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney Bridgett Kessling City Clerk Eric Endersby Harbor Operations Manager Susan Lichtenbaum Harbor Business Manager Rob Livick Public Services Director Tim Olivas Police.Chief Joe Woods Recreation & Parks Director Janeen Burlingame Management Analyst ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT Todd Collins introduced his family restaurant, Rocca's Italian Restaurant on the Embarcadero. He reviewed special entrees on the menu and events that his family sponsors in the City. . Angela Nelson, Program Coordinator from RideShare, referred to Item A-8 (Proclamation Declaring October 2011 As "Rideshare Month") and reviewed special events that will be taking place during Rideshare Month. Chuck Rose acknowledged Neighborhood Watch which is sponsored through the Police Department. He said Neighborhood Watch promotes additional awareness around neighborhoods in the City. Mr. Rose stated the organization meets monthly and they have a website: www.neighborhoodwatchmorrobay.com for those who are interested in ® participating in this program. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2011 Dan Reddell, Chamber of Commerce Board Member, addressed Item C-1 (Report on the Findings of the Morro Bay Visitors Center Workshop and Discussion of Options for Continued Operations) and stated the Executive Director Craig Schmidt is very professional and friendly. Mr. Reddell said he supports staff recommendation to continue to contract with the Chamber of Commerce for the operation of the Visitors Center. Craig Schmidt, Chamber of Commerce Executive Director, thanked those who volunteered at the Avocado/Margarita Festival which was a tremendous success. He also acknowledged the Merchants Pavilion at the Harbor Festival who has reached out to the business community to allow them to showcase their businesses at a low cost for the weekend. Mr. Schmidt thanked the City for hosting the Visitor Center Workshops which provided several different recommendations to make the Visitor Center a better experience for the City's visitors. He assured the City Council of the Chamber's commitment to creating a culture of adapting, inventing and re -inventing and always looking into ways to improve its approach in promoting tourism. ® John Solu addressed Item C-1 stating the hoteliers agree with the status quo with the Chamber contract until June 2012. He said the hoteliers are 1/3 contributors to the Visitor Center, and they will continue to make sure the Chamber of Commerce is making the changes and doing what needs to be done to accommodate the visitors. Mr. Solu requested the City Council send back to the Community Promotions Committee and/or the Tourism Business Improvement District Advisory Board the task to continue researching the promotion of a Director of Tourism. Garry Johnson reviewed upcoming photo events. He said there will be a photography show where pictures will be judged at the Harbor Festival; the Bird Festival is scheduled in January 2012; and, the Morro Photo Expo is scheduled for March 2012. John Weiss, Chamber of Commerce President, addressed Item C-1 and reviewed the upgrades made to the Visitors Center. He requested the City Council approve a 9-month extension to the Chamber contract to operate the Visitors Center which would allow for more effective planning, better budgeting and implementation of continuity for requests of stakeholders. Mr. Weiss thanked those who are involved and participated in the Eco- Rotary Program at the Avocado/Margarita Festival and Harbor Festival. Dan Glesmann thanked those Council Members who supported the adoption of the labor contract for the SEIU employees for the City. He said the importance of holding the City pension commitments to a sustainable level became clear with an article he shared on the down -turn of pension funds. Mr. Glesmann also thanked the City for adopting the two- tier retirement system for future hires. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2011 Joan Solu reviewed the Tourism Business Improvement District Advisory Board activities for the past two months. She requested the City Council send back to the Tourism Business Improvement District Advisory Board the task of how to create a Director of Tourism/Marketing position. Hunter Kilpatrick, Executive Director of Harbor Festival, reviewed the events and activities for the upcoming festival. Betty Winholtz addressed Item A-6 (Adoption of Ordinance No. 572 Repealing Chapter 2.28 of the Morro Bay Municipal Code Related to the Planning Commission and Implementing Instead the Planning Commission By -Laws) noting state law requires the Planning Commission belongs in the Municipal Code. She referred to Item B-3 (Ordinance No. 573 Amending Section 2.06 of the Morro Bay Municipal Code from Councilmen to Councilmembers and Adding Section 2.06.040 Regarding Appointment of Boards and Commissions) that places the Planning Commission in the Advisory Board Handbook, which she objects to because the guidelines for the Planning Commission are ® easily manipulated in a document that requires a simple resolution versus one that is more rigorously reviewed. Ms. Winholtz also referred to numerous entities that adopted proclamations recognizing "Sea Otter Awareness Month". John Barta addressed Item C-1 stating there is no clear line of responsibility for who is going to take charge in promoting the City's tourism, and why it is a good idea to have a Director of Tourism. He said with all of the influences involved it may be difficult to see the big picture, and he hopes Council's discussion will assist in resolving some of these issues. Mayor Yates closed the hearing for public comment. Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A. CONSENT CALENDAR A-1 APPROVAL OF MINUTES FOR REGULAR CITY COUNCIL MEETING OF SEPTEMBER 13, 2011; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. u 11 kJ El C MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2011 A-2 RESOLUTION NO. 66-11 AUTHORIZING PAYING AND REPORTING THE VALUE OF EMPLOYER PAID MEMBER CONTRIBUTIONS (EPMC) FOR THE SERVICE EMPLOYEES INTERNATIONAL UNION (SEIU), LOCAL 620, EMPLOYEES; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 66-11. A-3 RESOLUTION NO. 67-11 ACCEPTANCE OF AN OFFER OF DEDICATION OF PUBLIC PEDESTRIAN EASEMENT FOR SIDEWALK PURPOSES ON ERROL STREET FOR TACO BELL (1700 MAIN ST.); (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 66-11. A-4 ADOPTION OF ORDINANCE NO. 570 AMENDING.THE CITY OF MORRO BAY MUNICIPAL CODE TITLE 13 PUBLIC UTILITIES, CHAPTER 13.04 WATER SERVICE AND RATES, SECTION 13.04.070 APPLICATION FOR REGULAR SERVICE TO REQUIRE IDENTIFICATION; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Ordinance No. 570. A-5 ADOPTION OF ORDINANCE NO. 571 AMENDING THE CITY OF MORRO BAY MUNICIPAL CODE TITLE 3 REVENUE AND FINANCE, CHAPTER 3.30 UNCLAIMED MONEY AND PROPERTY, SECTION 3.30.080 PROCEEDS TO BE DEPOSITED IN GENERAL FUND TO READ DISPOSITION OF PROCEEDS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Ordinance No. 571. A-6 ADOPTION OF ORDINANCE NO. 572 REPEALING CHAPTER 2.28 OF THE MORRO BAY MUNICIPAL CODE RELATED TO THE PLANNING COMMISSION AND IMPLEMENTING INSTEAD THE PLANNING COMMISSION BY-LAWS; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 572. A-7 REPORT ON THE FINDINGS RELATING TO THE MORRO BAY MARKETING WORKSHOP; (ADMINISTRATION) RECOMMENDATION: Review the findings from the Marketing Workshop. 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2011 A-8 PROCLAMATION DECLARING OCTOBER 2011 AS "RIDESHARE MONTH'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember Smukler pulled Items A - I, A-6 and A-7 from the Consent Calendar. MOTION: Councilmember Johnson moved the City Council approve the Consent Calendar with the exception of Items A-1, A-6 and A-7. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) A-1 APPROVAL OF MINUTES FOR REGULAR CITY COUNCIL MEETING OF SEPTEMBER 13, 2011; (ADMINISTRATION) Councilmember Smukler referred to a correction to a name on page 6 of the September 13, 2011 City Council minutes. City Clerk Bridgett Kessling noted the correction on page 6 of the minutes had already been amended prior to the meeting. ® MOTION: Councilmember Smukler moved the City Council approve Item A-1 of the Consent Calendar. The motion was seconded by Mayor Yates and carried unanimously. (5-0) El A-6 ADOPTION OF ORDINANCE NO. 572 REPEALING CHAPTER 2.28 OF THE MORRO BAY MUNICIPAL CODE RELATED TO THE PLANNING COMMISSION AND IMPLEMENTING INSTEAD THE PLANNING COMMISSION BY-LAWS; (CITY ATTORNEY) Councilmember Smukler asked if the City Attorney had any comments based on the public comments made. City Attorney noted he had no comments, other than he is moving forward with the adoption of Ordinance No. 572 based on the approval of the first reading and introduction at the September 13"' City Council meeting; and, he noted the City is in compliance with state law. MOTION: Councilmember Smukler moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Councilmember Borchard and.carded_unanimously. (5-0) 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2011 A-7 REPORT ON THE FINDINGS RELATING TO THE MORRO BAY MARKETING WORKSHOP; (ADMINISTRATION) Councilmember Smukler noted for public information that the results of the Marketing Workshop can be reviewed on the City's website. MOTION: Councilmember Smukler moved the City Council approve Item A-7 of the Consent Calendar. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) Mayor Yates called for a break at 6:56 p.m.; the meeting resumed at 7:09 p.m. B. PUBLIC HEARINGS REPORTS & APPEARANCES B-1 CONSIDERATION OF ESTERO BAY TRANSIT SERVICE PROPOSAL; (PUBLIC SERVICES) ® Management Analyst Janeen Burlingame stated the City currently operates Morro Bay Transit Service which is a hybrid transit system combining a fixed route with limited door-to-door service. The Morro Bay Transit fixed route has specific stops throughout the City and the Call -A -Ride trips deviate off route within'/< of a mile to pick up/drop off riders before returning back on route. The fixed route and Call -A -Ride service is provided hourly Monday through Friday from 6:35am to 5:30pm. The San Luis Obispo Council of Governments (SLOCOG) is proposing the development of a cooperative agreement between the City of Morro Bay, San Luis Obispo County, the RTA and SLOCOG to provide local transit services within and between the communities of Morro Bay and Los Osos. The proposal does not include the City's trolley services and should the Council accept the proposed service concept, a separate arrangement would need to be made regarding trolley operations. Ms. Burlingame recommended the City Council review the Estero Bay Transit Service proposal from SLOCOG, and the discussion and recommendation made by the Public Works Advisory Board and direct staff accordingly. r 1 U Mayor Yates opened the hearing for public comment. Ron DeCarli, Director of SLOCOG, stated their agency is a planning and programming agency as well as an oversight agency on public transit. He said overall public transit in the county and in the state is in trouble with the increase in costs and decrease in funding. Mr. DeCarli stated the prime concern is the City's current system is not sustainable, and that is why they are considering a consolidated system to reduce costs. He said the City has no connection with the regional agency which would help increase the fair box ratio. h ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2011 Mr. DeCarli recommended the City Council consider reduce overhead costs, increase fares, increase ridership through regional ridership, and continue to work with RTA and SLOCOG. Mark Lancaster stated he is a North Morro Bay resident and noted the service up there has been rectified. He said it would be good to coordinate the local and regional buses in the morning. Amy Wyatt, Manager of Marketing for RTA, stated senior services is very high and the fixed route service is working well. She said they are working to make the system work for everyone with what funding they have. Mayor Yates closed the hearing for public comment. Councilmember Borchard stated the challenge is financing transportation in Morro Bay. She said there is a potential to take this opportunity and continue to work with SLOCOG and RTA in trying to refine this program. She said she agrees the City's existing program ® is not sustainable and she is hopeful there might be a way to move forward with some other options. Councilmember Johnson stated the current system is not sustainable and not meeting the needs of the citizens. She also said the concept that is being proposed is not serving the City's needs, and the City should go back and refine the system and find something that will work more efficiently for its citizens. Councilmember Leage stated the current system is not sustainable and something needs to be done immediately because good service for the citizens is important. Councilmember Smukler stated there is concern with the loss of service in North Morro Bay. He said it would be helpful to have service for high school students with extra- curricular activities. Councilmember Smukler stated the review of the Cost Allocation Plan will be important for Council to make their decision. Mayor Yates stated he supports staff recommendation #1. He said sustainability is of political will, and there needs to be a desire to want this service and be able to afford it within the budget. H ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2011 MOTION: Councilmember Borchard moved the City Council direct staff to: 1) work with the San Luis Obispo Council of Governments to determine whether or not the current transit service proposal can be modified to address the proposed service concept deficiencies; 2) return to the Public Works Advisory Board no later than its December 2011 meeting for consideration and recommendation to Council for either a revised proposed concept or the current proposed concept; and 3) return to Council in January 2012 for consideration of either a revised proposed concept or the current proposed concept. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) B-2 RESOLUTION NO. 68-11 ACCEPTING $100,000 GRANT FROM THE STATE OF CALIFORNIA CITIZENS OPTION FOR PUBLIC SAFETY (COPS) PROGRAM; (POLICE) Police Chief Tim Olivas stated the City Council is required to hold a public hearing and consider whether the recommendation submitted by the Police Chief complies with the requirements of the Government Code. Once adopted, the recommendation is then ® forwarded to the County Oversight Committee who then distributes the COPS funds to the local jurisdictions. The funds can then be expended and/or encumbered by the Police Department. Chief Olivas recommended the City Council adopt Resolution No. 68-11 authorizing the proposed spending plan for the $100,000 that will be received from the Citizens Option for Public Safety (COPS) grant program Mayor Yates opened the hearing for public comment; there were no comments, and Mayor Yates closed the hearing for public comment. MOTION: Councilmember Borchard moved the City Council adopt Resolution No. 68-11 authorizing the proposed spending plan for the $100,000 that will be received from the Citizens Option for Public Safety (COPS) grant program. The motion was seconded by Councilmember Leage and carried unanimously. (5-0) Mayor Yates called for a break at 7:56 p.m.; the meeting resumed at 8:07 p.m. E 9 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2011 B-3 ORDINANCE NO. 573 AMENDING SECTION 2.06 OF THE MORRO BAY MUNICIPAL CODE FROM COUNCILMEN TO COUNCILMEMBERS AND ADDING SECTION 2.06.040 REGARDING APPOINTMENT OF BOARDS AND COMMISSIONS - FIRST READINGIINTRODUCTION: (CITY ATTORNEY) City Attorney Robert Schultz stated Ordinance No. 573 will change the title and content from "Councilmen" to "Councilmembers' in order to be gender neutral. In addition, Ordinance No. 573 will add Section 2.06.040 in regard to the appointment of Boards and Commissions in order to make certain the City is in compliance with state law. Mr. Schultz recommended the City Council accept public comment and move for introduction and first reading of Ordinance No. 573, by number and title only. Mayor Yates opened the hearing for public comment; there were no comments, and Mayor Yates closed the hearing for public comment. MOTION: Councilmember Johnson moved the City Council approve Ordinance No. 573 for first reading and introduction amending Section 2.06 of the Morro ® Bay Municipal Code from "Councilmen' to "Councilmembers" and adding Section 2.06.040 Regarding Appointment of Boards and Commissions. The motion was seconded by Councilmember Leage and carried unanimously. (5-0) r 1 U City Manager Andrea Locker read Ordinance No. 573 by number and title only. C. UNFINISHED BUSINESS C-1 REPORT ON THE FINDINGS OF THE MORRO BAY VISITORS CENTER WORKSHOP AND DISCUSSION OF OPTIONS FOR CONTINUED OPERATIONS; (ADMINISTRATION) City Manager Andrea Lueker stated a workshop was held on September 8, 2011 to focus on identifying opportunities to enhance the effectiveness of the Visitors Center and the roles of the various organizations and partners. This workshop was held by direction of the City Council from their June 14, 2011 meeting. In addition, over the past eleven months, the City Council as well as the Visitors Center have both initiated significant changes that enhance the operation of the Visitors Center. With the changes that have been made at the Visitors Center and the information gathered from the Visitors Center Workshop, Ms. Locker recommended the City Council continue to contract with the Morro Bay Chamber of Commerce for the operation of the Visitors Center, extending their contract through June 2012. 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2011 Mayor Yates stated he is supportive of the Chamber and its Executive Director and all of the changes they have instituted. He said he would like to move forward with the consideration of a Director of Tourism. Councilmember Johnson stated she supports the Executive Director of the Chamber of Commerce and extending the Chamber contract until June 2012. She said she would like a big pub sign directing people to the public restroom at the Boatyard building; and, also suggested hiring an outside agency to look at altemate locations for the ChamberNisitors Center. Councilmember Johnson stated she supports instituting more flexible hours of the Visitors Center dependent on the season. She said she would like to instruct the Tourism Business Improvement District Advisory Board to develop and present a report on how to pay for a Director of Tourism as well as prepare a job description. Councilmember Johnson stated she would like to receive a written report on the profit and loss of special events and trips abroad sponsored by the Chamber of Commerce. She said she would also like to recruit a Volunteer Ambassador Program which will alleviate the need for kiosks or a visitor center. Councilmember Borchard stated one of the Visitors Center's main purposes is to capture guest information, such as fulfillment. She said there is the need to look at different locations for both the Chamber of Commerce and the Visitors Center, preferably by an outside agency. Councilmember Borchard stated she does support continuing the contract with the Chamber until June 2012. Councilmember Leage stated it is important to have a restroom open at the Chamber of Commerce location. He also said parking is a problem on the Embarcadero where the Chamber is presently located. Councilmember Smukler stated he agrees that the Chamber has put a lot of effort in the changes they have instituted. He said it is time to put the Director of Tourism position to rest, and instead direct the Community Promotions Committee and Tourism Business Improvement District Advisory Board to focus on exploring options for a concept of a fair funding mechanism and communicate back to the stakeholders. MOTION: Councilmember Borchard moved the City Council approve the following: 1) Continue to contract with the Morro Bay Chamber of Commerce for the operations of the Visitors Center, extending their contract through June 2012. E E n MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2011 2) Establish and confirm transparent budget, personnel and performance measures to document that public funds are expended appropriately. 3) Publicize the existing procedure that is used to assure that there is no differentiation between referrals for Chamber and non -Chamber businesses (website, materials in Visitors Center and fulfillment). 4) Coordinate with Barnett Cox and Associates (BCA) and (others) to establish directional signs to the Visitor Center from Hwy 101 (north and south). 5) Explore the possibility of enhanced efforts to establish quality "tourist information centers" along Hwy 101 and/or at city entrances that direct people to the Visitor Center for more information. 6) Implement a review of the current location and parking arrangement of the Visitor Center (either through a cooperative study with the Chamber or outside consultant). 7) Perform reviews at 6-month intervals to ensure the continued implementation of the ideas and recommendations from the workshop. 8) Direct staff to work with the Community Promotions Committee and Tourism Business Improvement District Advisory Board on the potential Director of Tourism/Events Coordinator positions. The motion was seconded by Councilmember Leage and carved unanimously. (5-0) D. NEW BUSINESS — NONE. E. DECLARATION OF FUTURE AGENDA ITEM —NONE. ADJOURNMENT The meeting adjourned at 8:39 p.m. Recorded by: Bridgett Kessling City Clerk 12 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent ivith and responsive to the needs of the public. CITY COUNCIL/PLANNING COMMISSION JOINT MEETING TUESDAY, SEPTEMBER 13, 2011 VETERANS MEMORIAL HALL - 5:00 P.M. 209 SURF ST., MORRO BAY, CA I. ESTABLISH QUORUM AND CALL MEETING TO ORDER 11. PLEDGE OF ALLEGIANCE ® III. DUTIES AND RESPONSIBILITIES Pursuant to the Municipal Code Section 2.28.120 D., the Planning Commission shall meet with City Council twice each year to discuss proposed policies, programs, goals and objectives, budgeting, future planning, or any other planning matter requiring joint deliberation. IV. PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council and Planning Commission on matters on this special meeting agenda may do so at this time. V. JOINT MEETING DISCUSSION ITEMS Council Member Requested Discussion Item: • Update on Zoning Ordinance and LCP — (Livick) Planning Commissioner Requested Discussion Items: • Planning Commission Meeting Frequency; • Implementation of the Planning Commission By -Laws, • Changes to the Subdivision Ordinance; and • Discussion of a New Initiative to Better Serve the Measure D Area. VI. ADJOURNMENT — This meeting will adjourn to the regularly scheduled City Council meeting. C] MINUTES - MORRO BAY CITY COUNCIL/PLANNING COMMISSION ® JOINT MEETING — SEPTEMBER 13, 2011 VETERANS MEMORIAL HALL - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m. PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember El n -J Rick Grantham Chairman Jamie Irons Planning Commissioner Paul Nagy Planning Commissioner Jessica Napier Planning Commissioner ABSENT: John Solu Vice -Chair STAFF: Andrea Lueker City Manager Robert Schultz City Attorney Rob Livick Public Services Director Kathleen Wold Planning Manager I. ESTABLISH QUORUM AND CALL MEETING TO ORDER H. PLEDGE OF ALLEGIANCE Ill. DUTIES AND RESPONSIBILITIES Pursuant to the Municipal Code Section 2.28.120 D., the Planning Commission shall meet with City Council twice each year to discuss proposed policies, programs, goals and objectives, budgeting, future planning, or any other planning matter requiring joint deliberation. IV. PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council and Planning Commission on matters on this special meeting agenda may do so at this time — there was no public comment. V. JOINT MEETING DISCUSSION ITEMS Council Member Requested Discussion Item: A) Update on the Zoning Ordinance and General Plan/Local Coastal Plan Amendment Planning Manager Kathleen Wold provided an update on the General Plan/Local Coastal Plan amendment, and provided the City Council and Planning Commission with a letter from the Coastal Commission. The City Council requested the update of the Zoning Ordinance and General ® Plan/Local Coastal Plan be placed higher on the priority list. A sub -committee was appointed to review the update of the Zoning Ordinance and General Plan/Local Coastal Plan, consisting of: Planning Commissioner Irons, Councilmember Johnson and Councilmember Borchard. Planning Commission Requested Discussion Items: A) Implementation of the Planning Commission By -Laws City Attorney Robert Schultz reviewed the procedures for the Planning Commission By -Laws. B) Changes to the Subdivision Ordinance The City Council and Planning Commission discussed the importance to expedite the review of the Subdivision Ordinance in order to streamline projects. C) Discussion of a New Initiative to Better Serve the Measure D Area The majority of the Planning Commission was to not change Measure D at this time. D) Planning Commission Meeting Frequency The Planning Commission chose to continue meeting twice per month. VI. ADJOURNMENT — 5:35 p.m. ® This meeting adjourned to the regularly scheduled City Council meeting. E ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs, of the public. REGULAR MEETING — TUESDAY, SEPTEMBER 13, 2011 CLOSED SESSION — TUESDAY, SEPTEMBER 13, 2011 CITY HALL CONFERENCE ROOM - 4:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54957.6: CONFERENCE WITH LABOR NEGOTIATOR. Conference with City Manager, the City's Designated is and for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. THIS MEETING WILL ADJOURN TO THE JOINT CITY COUNCHJPLANNING COMMISSION MEETING THAT WELL BEGIN AT 5:00 P.M. AND WILL BE LOCATED AT THE VETERANS' MEMORIAL HALL 209 SURF STREET, MORRO BAY, CALIFORNIA. 11 PUBLIC SESSION — TUESDAY, SEPTEMBER 13, 2011 ® VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. ® • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to cant' out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A -I APPROVAL OF THE MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF AUGUST 23, 2011; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. Pj A-2 RESOLUTION AUTHORIZING THE CITY OF MORRO BAY TO ENTER INTO 2011/2012 ABANDONED WATERCRAFT ABATEMENT FUND CONTRACT ® WITH THE DEPARTMENT OF BOATING AND WATERWAYS; (HARBOR) RECOMMENDATION: Adopt Resolution No. 63-11. A-3 CONSIDERATION OF APPROVAL FOR A SUBLEASE ON A PORTION OF LEASE SITE 110-112/110W-112W AND 111.5W, LOCATED ADJACENT TO 1185 EMBARCADERO, BETWEEN GREAT AMERICAN FISH COMPANY, INC. AND VIRG'S LANDING, INC.; (HARBOR) RECOMMENDATION: Adopt Resolution No. 64-11. AA REQUEST TO APPROVE A RESPONSE TO THE GRAND JURY REGARDING RATE -SETTING AS A WATER CONSERVATION TOOL; (ADMINISTRATION) RECOMMENDATION: Direct staff to send a letter to the Presiding Judge of San Luis Obispo County Superior Court responding to the Grand Jury reports entitled "Rate -Setting as a Water Conservation Tool". A-5 CONSIDERATION OF AN ADVISORY BOARD MIXER; (ADMINISTRATION) RECOMMENDATION: Direct staff to arrange an Advisory Board Mixer in late January/early February 2012. is A-6 APPOINTMENT OF ALTERNATE MEMBER TO THE AIR POLLUTION CONTROL DISTRICT; (MAYOR) RECOMMENDATION: Appoint the Mayor as the alternate member to the Air Pollution Control District. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION NO. 65-11 APPROVING THE ADOPTION OF THE TERMS AND CONDITIONS OF EMPLOYMENT FOR THE SERVICE EMPLOYEES INTERNATIONAL UNION, LOCAL 620, AND THE CITY OF MORRO BAY; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 65-11. B-2 ORDINANCE NO. 570 AMENDING THE CITY OF MORRO BAY MUNICIPAL CODE TITLE 13 PUBLIC UTILITIES, CHAPTER 13.04 WATER SERVICE AND RATES, SECTION 13.04.070 APPLICATION FOR REGULAR SERVICE - TO REQUIRE IDENTIFICATION — INTRODUCTION AND FIRST READING; (ADMINISTRATIVE SERVICES) ® RECOMMENDATION: Approve introduction and first reading of Ordinance No. 570 by number and title only. 3 B-3 ORDINANCE NO. 571 AMENDING THE CITY OF MORRO BAY MUNICIPAL ® CODE TITLE 3 REVENUE AND FINANCE, CHAPTER 3.30 UNCLAIMED MONEY AND PROPERTY, SECTION 3.30.080 PROCEEDS TO BE DEPOSITED IN GENERAL FUND TO READ DISPOSITION OF PROCEEDS — INTRODUCTION AND FIRST READING; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Approve introduction and first reading of Ordinance No. 571 by number and title only. BA ORDINANCE NO. 572 REPEALING CHAPTER 2.28 OF THE MORRO BAY MUNICIPAL CODE RELATED TO THE PLANNING COMMISSION AND IMPLEMENTING INSTEAD THE PLANNING COMMISSION BY-LAWS; FIRST READING AND INTRODUCTION; (CITY ATTORNEY) RECOMMENDATION: Approve introduction and first reading of Ordinance No. 572 by number and title only. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-I AUTHORIZATION TO FILE A NOTICE OF JOINER WITH THE CALIFORNIA PUBLIC UTILITIES COMMISSION PROTESTING THE APPLICATION FILED BY PACIFIC GAS AND ELECTRIC IN REGARD TO THE OPT -OUT PROGRAM ® FOR CUSTOMERS WHO OBJECT TO SMARTMETER INSTALLATION; (CITY ATTORNEY) 11 RECOMMENDATION: Authorize the City Attorney to file a Notice of Joiner with the California Public Utilities Commission protesting the Application filed by Pacific Gas and Electric in regard to the "Opt -Out Program" for customers . who object to SmartMeter installation. E. DECLARATION OF FUTURE AGENDA ITEMS F. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET DURING NORMAL BUSINESS HOURS OR AT THE SCHEDULED MEETING. E ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — SEPTEMBER 13, 2011 CITY HALL CONFERENCE ROOM - 4:00 P.M. 11 Mayor Yates called the meeting to order at 4:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION Mayor Yates adjourned the meeting to Closed Session and read the Closed Session Statement. Mayor Yates read the Closed Session Statement. CS-1 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR. Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. The meeting adjourned at 4:50 p.m. This meeting adjourned to the Joint City Council/Planning Commission meeting beginning at 5:00 p.m. and located at the Veterans' Memorial Hall, 209 Surf Street, Morro Bay, California. 1 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Eric Endersby Susan Lichtenbaum Tim Olivas Mike Pond Susan Slayton Joe Woods City Manager City Attorney City Clerk Harbor Operations Manager Harbor Business Manager Police Chief Fire Chief Administrative Services Director Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken; this item will be heard under Item B-1 of tonight's agenda. PUBLIC COMMENT Keith Taylor announced the groundbreaking ceremony for the Fire Station 53 Project will be held on February 14`s at 12:30 p.m.; he gave thanks to those who voted for Measure Q in order to make this happen. Gregg Cobarr, owner of Cal Coast Trade, stated his organization is made up of owners of businesses who trade their products and services, and through the internet, they are also able to place their trade funds into difference accounts. He said this organization is a part of a network of 50,000 businesses around the United States. Mr. Cobarr stated one of his goals is to bring awareness of what Morro Bay has to offer to these business owners and perhaps feature a function here in Morro Bay. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2011 Hank Roth stated September 18-24" is "Child Passenger Safety Week". He said there will be a Child Safety Seat Belt Check on Saturday, September 24a' at Target in San Luis Obispo. Paula Hewlett, Pastor for Estero Bay United Methodist Church, announced there will be a Hunger Walk on Sunday, September 25`s and all donations will go to the Food Bank Coalition. Lexie Bell, Assistant Director of the National Estuary Program, stated they are updating the Estuary Management Plan, and will be holding a public meeting on September 29th at the Sea Pines Golf Resort to discuss and give an update on the Plan. Hunter Fitzpatrick announced the Harbor Festival is three weeks away and reviewed the music headliners and scheduled events. Craig Schmidt, Chamber of Commerce CEO, stated the first annual Chamber of Commerce tri-mixer is scheduled on Thursday, September 15`" with Morro Bay, Cayucos and Los Osos Chambers meeting at the Boatyard in Morro Bay. He also announced the fifth annual Avocado/Margarita Festival will be held on Saturday, September 17a . ® Linda Winters stated there is a new campaign to save the State Parks from closing in California. She requested people go onto the website (Save-State-Park.org) and sign the e-petition to save the State Parks, and also sign for passage of AB-42. E Taylor Newton, Member of the Tree Committee, announced fall is upon us and it is a good time to plant a tree. He also announced the "Adopt -a -Tree" campaign in Morro Bay, and citizens can sign up to adopt a tree in the City and be responsible for its maintenance. Melissa Peters, County Tobacco Control Coalition, congratulated Morro Bay for its ban on smoking on public beaches and t-piers. She said the Tobacco Control Program thanks the City of Morro Bay for providing its citizens with a smoke -free community. Katy Lot, County Tobacco Control Coalition, recognized the Duncan Group who has provided a healthier environment with smoke -free living properties. Betty Winholtz addressed Item A4 (Request to Approve a Response to the Grand Jury Regarding Rate -Setting as a Water Conservation Tool), and referred to Grand Jury Recommendation #6 ...... Morro Bay... Should cottsider revising sewer bills to show that water usage affects sewer charges ". 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2011 Ms. Winholtz stated that changing the rates is a policy decision. She said this recommendation should be implemented now because the City's current policy is to increase the rates a certain percentage every year until the Wastewater Treatment Plant upgrade. Ms. Winholtz noted the Grand Jury states there is no.reference to the rate in the sewer bills, which is not informative. She said conservation is the City's #1 method to water management. By not implementing a change in the bills now, the City is not fulfilling its own approved Water Management Plan. Ms. Winholtz encouraged the City Council to change the City's response to Grand Jury Recommendation 96 in order to implement this policy by the end of this year. Mayor Yates closed the hearing for public comment. A CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF THE MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF AUGUST 23, 2011; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. A-2 RESOLUTION AUTHORIZING THE CITY OF MORRO BAY TO ENTER INTO 2011/2012 ABANDONED WATERCRAFT ABATEMENT FUND CONTRACT WITH THE DEPARTMENT OF BOATING AND WATERWAYS; (HARBOR) RECOMMENDATION: Adopt Resolution No. 63-11. A-3 CONSIDERATION OF APPROVAL FOR A SUBLEASE ON A PORTION OF LEASE SITE 110-112/11OW- 112W AND 111.5W, LOCATED ADJACENT TO 1185 EMBARCADERO, BETWEEN GREAT AMERICAN FISH COMPANY, INC. AND VIRG'S LANDING, INC.; (HARBOR) RECOMMENDATION: Adopt Resolution No. 64-11. A4 REQUEST TO APPROVE A RESPONSE TO THE GRAND JURY REGARDING RATE -SETTING AS A WATER CONSERVATION TOOL; (ADMINISTRATION) RECOMMENDATION: Direct staff to send a letter to the Presiding Judge of San Luis Obispo County Superior Court responding to the Grand Jury reports ® entitled "Rate -Setting as a Water Conservation Tool". 4 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2011 C A-5 CONSIDERATION OF AN ADVISORY BOARD MDMR; (ADMINISTRATION) RECOMMENDATION: Direct staff to arrange an Advisory Board Mixer in late January/early February 2012. A-6 APPOINTMENT OF ALTERNATE MEMBER TO THE AIR POLLUTION CONTROL DISTRICT; (MAYOR) RECOMMENDATION: Appoint the Mayor as the alternate member to the Air Pollution Control District. Mayor Yates pulled Item A-3 from the Consent Calendar; Councilmember Smukler pulled Item AA. MOTION: Councilmember Johnson moved the City Council approve the Consent Calendar with the exception of Items A-3 and AA. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) A-3 CONSIDERATION OF APPROVAL FOR A SUBLEASE ON A PORTION OF LEASE SITE 110-112/110W-112W AND 111.5W, LOCATED ADJACENT TO 1185 EMBARCADERO, BETWEEN GREAT AMERICAN FISH COMPANY, INC. AND VIRG'S LANDING, INC.; (HARBOR) Councilmember Leage stepped down from this item due to a conflict of interest. MOTION: Councilmember Borchard moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Smukler and carried unanimously. (4-0-1) A4 REQUEST TO APPROVE A RESPONSE TO THE GRAND JURY REGARDING RATE -SETTING AS A WATER CONSERVATION TOOL; (ADMINISTRATION) Councilmember Smukler suggested implementing an amendment to Responses #3 and #6 to the Grand Jury request regarding rate -setting as a water conservation tool to . enhance awareness that citizens are able to gather on their water bills. He referred to Response #3: "The City Council will consider this issue when water rates are revised." Councilmember Smukler suggested the response state: "The City Council will implement this change." City Manager Andrea Lueker stated this amendment could create a problem with the City's billing software and how the bills are generated. G ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2011 Consensus of the majority of Council was to maintain Response #3 as written. Councilmember Smukler referred to Response 96: "The City Council will consider this issue when sewer rates are reviewed," and suggested amending this response as another form of conservation awareness. He suggested the Response be amended to read: "The City Council will implement this issue as soon as feasible or when sewer rates are revised" MOTION: Councilmember Smukler moved the City Council approve Item A-4 of the Consent Calendar with the amendment to Response #6. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) Mayor Yates called for a break at 6:45 p.m.; the meeting resumed at 7:00 p.m. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION NO. 65-11 APPROVING THE ADOPTION OF THE TERMS AND CONDITIONS OF EMPLOYMENT FOR THE SERVICE EMPLOYEES INTERNATIONAL UNION, LOCAL 620, AND THE CITY OF MORRO BAY; (ADMINISTRATION) City Manager Andrea Lueker stated the contract with the SEN employees expired on June 30, 2011. Contract negotiations began February 3, 2011, with the final of five meetings held on July 21, 2011. Unable to come to any mutual settlement, Impasse was declared by SEN. Per the City's Impasse Procedures, SEN waived the initial meeting with the City Manager, and requested to move directly to a meeting with the State -appointed Mediator. On August 26's, the State Mediator met with the SEN Local 620 Chief Negotiator, Mike Woods, SEN Local 620 negotiation team the City's Chief Negotiator, Bill Avery, and Human Resources Analyst Jamie Boucher. No agreement was able to be reached, and as a result, staff is presenting to the City Council Resolution No. 65-11, requesting unilateral adoption of the compensation and working conditions for the SEN, Local 620 employees for the period of September 13, 2011 to June 30, 2012, consistent with the direction provided by the City Council. Ms. Lueker recommended the City Council adopt Resolution No. 65-11, which establishes the compensation and working conditions for the SEN, Local 620 employees of the City of Morro Bay for the term of September 13, 2011 through June 30, 2012. Mike Woods, SEN Local 620 representative, stated at the last negotiation meeting, the City representatives gave the SEN their last best and final offer, which was interpreted that the City was unwilling to move from their original offer that was proposed at the beginning of negotiations. He said the City declared impasse procedures. During the mediation process, the State mediator and the union made an offer to continue the contract as status quo for one year. Mr. Woods stated the City declined this offer. He said the SEN employees feel the original and last, best and final offer of the City is unfair. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2011 Mr. Woods stated the City feels the two-tier retirement system will save the City economically in the short-term; however, there will be no real savings until new employees are hired and they retire at least 10+ years from now. He reviewed salaries between management employees vs. SEN employees. Mr. Woods stated a disadvantage of the two- tier retirement system and low wages is that the City will become a training place for employees who will look for employment elsewhere. Mayor Yates opened the hearing for public comment. Mike Mobley stated he has been at the bargaining table with the management team who is proposing to increase the cost of SEN employees' PERS retirement along with cuts to their income and insurance rate increases. He said the SEN employees are some of the lowest paid employees in the County and cannot afford cuts to their salaries. Mr. Mobley requested the City Council amend the management proposal and to bargain for a fair and equitable contract. John Gunderlock stated he does not understand why the City paid for an outside negotiator when they did not negotiate past the original offer. He also does not understand why the City is balancing the budget on the backs of hardworking City employees who are already the lowest paid public employees in the State: Mr. Gunderlock stated they do not pay into social security and PERS retirement is all they have. He said the SEN employees are the ones that produce safe drinking water, protect the health and safety of the environment, and maintenance of the City for the residents and tourists that visit. Evan Buddenhagen stated to balance the budget on the lowest paid employees is counter- productive, and the two-tier retirement system will hurt the future of Morro Bay. He said the City Council has the duty to make-up a budget short -fall and exhaust all possibilities and enact the best interest of the community by not adopting the two -tiered retirement system. Mr. Buddenhagen stated there would be an immediate savings with cuts to the top management employee salaries and it would reduce the burden on the PERS retirement system. Phillip Carey stated the residents should receive services from well -paid employees. He said cutting salaries from some of the most important employees that deal with water, wastewater and collections in the City are the people who protect the City from potential dangerous diseases. Mr. Carey asked how the City can cut salaries from the employees that keeps the City functioning. Betty Winholtz stated the goal is to have a balanced budget. She said the City Council and management employees are some of the highest paid in the State, and they should look elsewhere to balance the budget. Ms. Winholtz requested the City Council reconsider the proposed contract offered to the SEN employees. 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2011 Polly Curtis stated the harbor patrol officers deserve a fair and current salary and retirement package. She requested the City Council continue their contract for one year. Devon Francis stated if a 2% salary cut is going to affect the City's budget that much, then the City has much larger issues to consider. Roger Ewing stated this is all about fairness and everyone is connected to the global economy. He urged Council to be fair to the lowest paid employees who have the same living expenses as the highest paid employees. Mayor Yates closed the hearing for public comment. Councilmember Smukler stated he supports the two-tier retirement formula. He said it is important to stabilize and maintain an operational balanced budget. Councilmember Smukler stated this is a one year contract and the adjustments will help avoid lay-offs in the future. He said it is important to note that employees across the board have made the same sacrifices. Councilmember Smukler stated he supports moving forward with the proposed contract. ® Councilmember Leage stated he appreciates the employees and this is a tough decision. He said it is important to' avoid any future lay-offs. 1I Mayor Yates stated he will not support this contract as proposed. He said he supports the two-tier retirement proposal, but not the 2% reduction in pay. Councilmember Johnson stated the two-tier retirement proposal is for future savings. She said it is important to know that there were no lay-offs proposed this year. Councilmember Johnson stated the 2% reduction in pay was implemented across the board. She said this contract is the best the City can offer. Councilmember Borchard stated they have tried to make it even and fair across the board with the 2% reduction in pay. She said she supports this contract MOTION: Councilmember Borchard moved the City Council adopt Resolution No. 65-11, which establishes the compensation and working conditions for the SEIU, Local 620 employees of the City of Morro Bay for the term of September 13, 2011 through June 30, 2012. The motion was seconded by Councilmember Smukler and carried with Councilmember Leage and Mayor Yates voting no. (3-2) f:? MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2011 B-2 ORDINANCE NO. 570 AMENDING THE CITY OF MORRO BAY MUNICIPAL CODE TITLE 13 PUBLIC UTILITIES, CHAPTER 13.04 WATER SERVICE AND RATES, SECTION 13.04.070 APPLICATION FOR REGULAR SERVICE - TO REQUIRE IDENTIFICATION — INTRODUCTION AND FIRST READING; (ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton stated. Chapter 13.04 Water Service and Rates, Section 070 Application for regular service states "Each applicant for water service shall be required to sign an application form provided by the water department or make application letter showing the date of application, location of premises to be served, mailing address, date applicant desires service, and such other information as may be required." The "other information" phrase has been called into question by applicants who wish to refrain from providing personal identification, such as a social security and/or driver's license number. Not receiving this information is problematic, as it hinders our ability to properly identify the person signing up for service, as well as making it nearly impossible to collect on delinquent accounts. In June 2009 per the Federal Trade Commission's requirement, Council adopted Resolution 27-09, implementing the City's Identity Theft Prevention Program. This Program requires staff to visually inspect the photo id of utility customer applicants to verify the identity of the person transacting business with us. To more clearly define this requirement, staff is recommending an amendment to Section 13.04.070 to add "A valid State -issued driver's license, State -issued identification card, military identification card or passport must be presented by the applicant before service will be activated If the applicant does not possess ally of the above forms of identification, alternative valid photo identification (e.g., current school id) may be accepted " Additionally, staff would like to update this Section to update the comments about applications submitted by letter. The new language will state that applications submitted via methods other than personal appearance when applying for water utility service will be accepted, but must be accompanied by the applicant's driver's I icenselidentifi cation card or passport. The "alternative valid photo ident(cation" statement above will also be included in this section. Finally, the last paragraph in this Section states `An application fee shall accompany each application or letter of application. " Current practice is to allow the application fee to be included in the first water utility bill. Staff would like to update this to state `For first-time water utility customers, an application fee shall accompmry each application, or the applicant may request that the application fee be included in the first water utility bill. " Ms. Slayton recommended the City Council review Ordinance No. 570, accept public comment on this issue, and move for the first reading and introduction, by number and title only. Mayor Yates opened the hearing for public comment; there were no comments, and Mayor Yates closed the hearing for public comment. 9 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 0, 2011 MOTION: Councilmember Smukler moved the City Council approve Ordinance No. 570 for First Reading and Introduction Amending the City of Morro Bay Municipal Code Title 13 Public Utilities, Chapter 13.04 Water Service and Rates, Section 13.04.070 Application for Regular Service - to Require Identification. The motion was seconded by Councilmember Borchard and carried with Mayor Yates voting no. (4-1) City Manager Andrea Lueker read Ordinance No. 570 by number and title only. B-3 ORDINANCE NO. 571 AMENDING THE CITY OF MORRO BAY MUNICIPAL CODE TITLE 3 REVENUE AND FINANCE, CHAPTER 3.30 UNCLAIMED MONEY AND PROPERTY, SECTION 3.30.080 PROCEEDS TO BE DEPOSITED IN GENERAL FUND TO READ DISPOSITION OF PROCEEDS — INTRODUCTION AND FIRST READING; (ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton stated the Harbor Enterprise Fund frequently has abandoned/unclaimed vessels and/or property that it has to manage until such time has passed to enable them to place the vessellproperty up for auction. Between ® the knowledge of abandonment and time of auction, Harbor staff invests a significant amount of time and funds in locating the owner, establishing the abandonment and storing the vessel/property, but the City of Morro Bay Municipal Code Chapter 3.30 Unclaimed Money and Property, Section 080 Proceeds to be deposited in general fund does not allow them to keep what little money they recover. Chapter 3.30 Unclaimed Money and Property, Section 080 Proceeds to be deposited in General Fund states "After such auction is completed, the proceeds of the auction shall be delivered to the director of finance for deposit in the General Fund." This means that all auction money, including that generated by Enterprise Funds, is to be turned in and deposited in the General Fund. Staff feels that in the ease of Enterprise Funds, the money should be returned -to the Enterprise Fund, not the General Fund, to compensate for their efforts. Staff is suggesting an amendment to the title of Section 080 to read Disposition of proceeds, and state "After such auction is completed, the proceeds of the auction shall be delivered to the Finance Department for deposit. All auction monies generated by Enterprise Fund activities shall remain with the applicable Enterprise Fund. " Ms. Slayton recommended the City Council review Ordinance No. 571, accept public comment on this issue, and move for the first reading and introduction, by number and title only E Mayor Yates opened the hearing for public comment; there were no comments, and Mayor Yates closed the hearing for public comment. 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2011 MOTION: Councilmember Borchard moved the City Council approve Ordinance No. 571 for First Reading and Introduction Amending the City of Morro Bay Municipal Code Title 3 Revenue and Finance, Chapter 3.30 Unclaimed Money and Property, Section 3.30.080 Proceeds to be deposited in General Fund to Read Disposition of Proceeds. The motion was seconded by Councilmember Smukler and carried with Mayor Yates voting no. (4-1) City Manager Andrea Lueker read Ordinance No. 571 by number and title only. B-4 ORDINANCE NO. 572 REPEALING CHAPTER 2.28 OF THE MORRO BAY MUNICIPAL CODE RELATED TO THE PLANNING COMMISSION AND IMPLEMENTING INSTEAD THE PLANNING COMMISSION BY-LAWS; FIRST READING AND INTRODUCTION; (CITY ATTORNEY) City Attorney Robert Schultz stated on August 23, 2011, the City Council adopted Resolution 62-11 amending the Advisory Boards Handbook and By -Laws to more clearly define how each Advisory Board is currently working. In addition, the City Council added By -Laws for the Planning Commission that contains the establishment, duties and ® responsibilities of the Planning Commission. With the addition of Planning Commission By -Laws to the Advisory Board Handbook, Chapter 2.28 of the Morro Bay Municipal Code is unnecessary, superfluous, and redundant. Ordinance No. 572 will delete Morro Bay Municipal Code Chapter 2.28. All requirements for the establishment, duties and responsibilities for the Planning Commission are now contained in the Planning Commission By -Laws. Mr. Schultz recommended the City Council accept public comment and then move for introduction and first reading of Ordinance No.572, by number and title only, repealing and deleting Morro Bay Municipal Code Chapter 2.28. E Mayor Yates opened the hearing for public comment. Betty Winholtz noted State Code 65100 states the Planning Commission belongs in the Municipal Code, and requested Council reconsider this item and maintain Chapter 2.28 in the City's Municipal Code. Mayor Yates closed the hearing for public comment. MOTION: Mayor Yates moved the City Council approve Ordinance No. 572 for First Reading and Introduction Repealing Chapter 2.28 of the Morro Bay Municipal Code Related to the Planning Commission and Implementing Instead the Planning Commission By -Laws. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2011 City Manager Andrea Lueker read Ordinance No. 572 by number and title only. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-I AUTHORIZATION TO FILE A NOTICE OF JOINER WITH THE CALIFORNIA PUBLIC UTILITIES COMMISSION PROTESTING THE APPLICATION FILED BY PACIFIC GAS AND ELECTRIC IN REGARD TO THE OPT -OUT PROGRAM FOR CUSTOMERS WHO OBJECT TO SMARTMETER INSTALLATION; (CITY ATTORNEY) City Attorney Robert Schultz stated the California Public Utilities Commission (CPUC) is the agency charged with regulating utility companies in California including the activities of PG&E; local governments do not have any direct regulatory control. over utility companies. Much interest has been expressed in recent months regarding an undertaking by PG&E to install "SmartMeters" at their residential customer's homes. A number of residents have called the City Attorney's office and spoke with the City Council regarding the installation of SmartMeters and how to decline or "Opt -Out" of the installation of the SmartMeter at their ® home. After thousands of complaints about SmartMeters from people who consider the radiation from cell phones, computers and other wireless devices to be a health threat, and approximately 30 other local governments (including Morro Bay) called for a moratorium on PG&E's SmartMeters, the CPUC ordered PG&E to propose a way for customers to "Opt Out" of receiving the SmartMeters. On March 24, 2011, PG&E submitted a proposal to the CPUC to give. residential customers the option to have the radios in their SmartMeters turned off, with an associated one-time charge of $135 to $270, and an ongoing monthly fixed charge of $14 to $20. The CPUC is expected to rule on the PG&E plan within the next few months. Mr. Schultz recommended the City Council,authorize the City Attorney to file a Notice of Joiner with the California Public Utilities Commission protesting the Application filed by Pacific Gas and Electric in regard to the "Opt -Out Program" for customers who object to SmartMeter installation. 11 Councilmember Smukler stated he supports joining this action, and residents have the right to have a no -fee Opt -Out Program in regard to the SmartMeter installation. Councilmember Leage stated he does not support filing a Notice of Joiner with the CPUC. Mayor Yates stated he does not support filing a Notice of Joiner with the CPUC. He said there is a delay list with PG&E at no charge in process. 12 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2011 Councilmember Johnson stated she has received calls about health concerns and costs with the SmartMeter. She said the previous Resolution passed by Council was not respected by PG&E. Councilmember Johnson stated there needs to be a no -cost opt -out option included for those citizens who do not want the SmartMeter. Councilmember Borchard stated she is not concerned with health issues; however, she respects those who have those concerns. She supports the opt -out at no cost option; however, she is not ready to join an action by a small community of people to file a Notice of Joiner with the CPUC until she knows what that action is. MOTION: Councilmember Smukler moved the City Council file a Notice of Joiner with the CPUC protesting the application filed by PG&E in regard to the Opt -Out Program for customers who object to the SmartMeter installation with a focus primarily on the request for a no -cost Opt -Out Program. The motion was seconded by Councilmember Johnson. Councilmember Borchard expressed concern with filing a Notice of Joiner with the CPUC at this time. ® Councilmember Johnson stated she supports filing a Notice of Joiner with the CPUC. 11 Mayor Yates stated he does not support filing a Notice of Joiner with the CPUC. Councilmember Leage he does not support filing a Notice of Joiner with the CPUC. Councilmember Smukler stated by filing a Notice of Joiner with the CPUC would be the most opportune way to be heard and should be pursued. Councilmember Borchard stated this should wait on the ruling of the State/Assembly. VOTE: The motion failed with Councilmember Borchard, Councilmember Leage and Mayor Yates voting no. (2-3) MOTION: Councilmember Borchard moved the City Council direct staff to follow up in a similar manner as San Luis Obispo and Santa Barbara Counties by submitting a letter to the CPUC for a no cost opt -out provision. The motion was seconded by Councilmember Smukler. Mayor Yates stated he does not support this motion because it does not fit with the title of this item. 13 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2011 Councilmember Smukler suggested an amendment to submit the letter in time for the CPUC to be aware of Council's action by tomorrow. VOTE: The motion carried with Mayor Yates voting no. (4-1) E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Johnson requested to agendize a public hearing to discuss a smoking ban within the City of Morro Bay; Councilmember Borchard and Councilmember Smukler supported this request. ADJOURNMENT The meeting adjourned at 8:20 p.m. Recorded by: Bridgett Kessling City Clerk U 14 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — TUESDAY, AUGUST 23, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the ® Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification ® 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR ® Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF THE MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF AUGUST 9, 2011; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 60-11 ADOPTING THE CITY OF MORRO BAY TRAVEL POLICY; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 60-11. A-3 APPROVAL OF SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT REQUEST FOR CITY PUBLIC, EDUCATION AND GOVERNMENT ACCESS FUNDS; (PUBLIC SERVICES) RECOMMENDATION: Approve the San Luis Coastal Unified School District's June 28, 2011 request for $14,525 in Public, Education and Government Access funds for the purchase equipment for the Morro Bay High School video production studio. is A-4 RATIFICATION OF COUNCIL ACTION ON JUNE 28, 2011 PERTAINING TO RESOLUTION 45-11 ESTABLISHING A THREE YEAR MORATORIUM FOR' THE PAYMENT OF DEVELOPMENT IMPACT FEES FOR COMMERCIAL AND MIXED USE PROJECTS WITHIN A COMMERCIAL ZONE DISTRICT; (CITY ATTORNEY) 1 RECOMMENDATION: Ratify Council action of June 28, 2011 pertaining to Resolution 45-11 which established a three year moratorium on development impact fees for commercial and mixed use projects within a commercial zone district. A-5 PROCLAMATION DECLARING SEPTEMBER 25 — OCTOBER 1, 2011 AS "WILDLIFE AWARENESS WEEK"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 APPEAL OF THE PLANNING COMMISSION'S DECISION FOR A TEMPORARY USE PERMIT TO ALLOW USE OF AN EXISTING DOCK FOR SPORT AND COMMERCIAL FISHING FOR A PERIOD OF SIX MONTHS (GAFCO/VIRG'S); (PUBLIC SERVICES) 2 RECOMMENDATION: Deny the appeal and uphold the Planning Commission's ® approval of Temporary Use Permit #UPO-319 subject to Findings and Conditions of Approval. B-2 RESOLUTION NO. 61-11 APPROVING MORRO BAY GARBAGE SERVICE BASE YEAR RATE ADJUSTMENT APPLICATION REQUESTING AN INCREASE TO SOLID WASTE COLLECTION RATES; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 61-11 approving Morro Bay Garbage Service's Base Year Rate Adjustment Application and the resulting rate schedule. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 RESOLUTION NO. 59-11 ADOPTING REVISIONS TO THE MASTER FEE SCHEDULE; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 59-11. D-2 RESOLUTION 62-11 AMENDING THE CITY OF MORRO BAY ADVISORY BOARDS HANDBOOK AND BY-LAWS; (CITY ATTORNEY) ® RECOMMENDATION: Review the Advisory Board Handbook and By -Laws and adopt Resolution 62-11. 11 E. DECLARATION OF FUTURE AGENDA ITEMS F. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET DURING NORMAL BUSINESS HOURS OR AT THE SCHEDULED MEETING. 3 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — AUGUST 23, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m. PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney Bridgett Kessling City Clerk Janeen Burlingame Management Analyst Susan Lichtenbaum Harbor Business Manager Rob Livick Public Services Director Tim Olivas Police Chief Mike Pond Fire Chief Susan Slayton Administrative Services Director Joe Woods Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER ® MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT — there was no Closed Session report. I]iJ:111 [KK�]LILI dill 11 James Bueno, Morro Bay High Football Coach and varsity football team members offered to support the community and asked the community to come out to the football games this season; they presented Council with t-shirts supporting the team as the 12's man. Harbor Patrol Supervisor Becka Kelly presented a Certificate of Appreciation to Scott Baksic for his efforts in upgrading and maintaining the Harbor Department's beach wheelchair used by disabled people at no charge to enjoy the coastline, and also used in beach rescues. She also thanked Mobility Masters for their assistance in supplying all the parts needed at their cost to upgrade the wheelchair. Robert Davis, representative of the San Luis Obispo Bike Club, announced the 40"' Annual Lighthouse Bike Ride will be held on September 24th and will go between Piedras Blancas and Cuesta College. He said the Bike Ride is held to raise funds for local high school and college scholarships and to support local charities. l ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2011 Mr. Davis stated this year the Bike Club is donating more than $55,000 that will go towards scholarships but also Morro Bay Police Department Community Volunteers and the Morro Bay 4 s of July Committee for bike valet parking at the bike parade. He said they also support the Central Coast Mountain Bikers who build and maintain trails in Morro Bay and Montana de' Oro State Parks. Annie Clapp, owner of the Chablis, announced the different events held on the Chablis. She said she and her husband also own the Morro Bay Coffee Company which features fresh baked pastries. Tom Martin, owner of Morro Bay Garbage Service, announced "Clean Up Week" will be held on the week of September 12's - 16's. Betty Winholtz addressed Item D-2 (Resolution 62-11 Amending the City of Morro Bay Advisory Boards Handbook and By -Laws) stating the high expectations noted on page 6, "Knowledge of the Community Marketplace, Process, Objectives, and Laws", may discourage people from applying to an Advisory Board; this paragraph should be rewritten or removed. She also addressed Item D-1 (Resolution No. 59-11 Adopting Revisions to the Master Fee Schedule) stating this item should have been scheduled as a public hearing; she ® referred to page 6 noting the appeal fee of $250 should be set as a one-time fee; under the Harbor Department, the annual parking fee of $100 at Tidelands — she said this fee defeats the purpose and encourages people to stay for long periods of time. Ms. Winholtz addressed Item A-4 (Ratification of Council Action on June 28, 2011 Pertaining to Resolution 45-11 Establishing a Three Year Moratorium for the Payment of Development Impact Fees for Commercial and Mixed Use Projects Within a Commercial Zone District) stating the Development Impact Fees as proposed is going to impact City services and infrastructure in a negative way. John Solu announced that in the month of June, Morro Bay had the highest increase in occupancy in San Luis Obispo County. He also expressed disappointment with the distribution of negative flyers to tourists relating to sea otter awareness. Garry Johnson also expressed disappointment with the flyers that were distributed regarding sea otter awareness. He referred to Item A-5 (Proclamation Declaring September 25 — October 1, 2011 as "Wildlife Awareness Week") which covers not only sea otters but all wildlife in Morro Bay. John Barta addressed the upcoming Sign Ordinance Workshop which he will not be able to attend; he requested Council consider introducing the presentation that he prepared on the Sign Ordinance from his past term on the Planning Commission at this Workshop. Susan Stewart, Chair of the Community Promotions Committee, gave an update on the Committee's activities. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — AUGUST 23, 2011 Craig Schmidt announced the upcoming Visitor Center Open House and Workshop scheduled for September 7h and 8'h, and the 5 h Annual Avocado/Margarita Festival scheduled for September 17`s. Roger Ewing stated the City Council should not have abandoned the recognition of the Sea Otter Awareness Proclamation. He said tourism is based on admiring the bay and its living life. Mayor Yates closed the hearing for public comment. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF THE MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF AUGUST 9, 2011; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. ® A-2 RESOLUTION NO. 60-11 ADOPTING THE CITY OF MORRO BAY TRAVEL POLICY; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 60-11. A-3 APPROVAL OF SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT REQUEST FOR CITY PUBLIC, EDUCATION AND GOVERNMENT ACCESS FUNDS; (PUBLIC SERVICES) RECOMMENDATION: Approve the San Luis Coastal Unified School District's June 28, 2011 request for $14,525 in Public, Education and Government Access funds for the purchase equipment for the Morro Bay High School video production studio. A-4 RATIFICATION OF COUNCIL ACTION ON JUNE 28, 2011 PERTAINING TO RESOLUTION 45-11 ESTABLISHING A THREE YEAR MORATORIUM FOR THE PAYMENT OF DEVELOPMENT IMPACT FEES FOR COMMERCIAL AND MIXED USE PROJECTS WITHIN A COMMERCIAL ZONE DISTRICT; (CITY ATTORNEY) RECOMMENDATION: Ratify Council action of June 28, 2011 pertaining to Resolution 45-I1 which established a three year moratorium on development ® impact fees for commercial and mixed use projects within a commercial zone district. 3 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2011 A-5 PROCLAMATION DECLARING SEPTEMBER 25 — OCTOBER 1, 2011 AS "WILDLIFE AWARENESS WEEK"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Mayor Yates pulled Items A-2 and A-5 from the Consent Calendar; Councilmember Smukler pulled Item A4. MOTION: Councilmember Borchard moved the City Council approve Items A-1 and A-3 of the Consent Calendar. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) A-2 RESOLUTION NO. 60-11 ADOPTING THE CITY OF MORRO BAY TRAVEL POLICY, (ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton directed Council to two amendments to the Morro Bay Travel Policy: 1) under Section B — (General Provisions) 8.... (for the ® current reimbursement rate, visit www.irs.eov, and search for mileage 2NOXX; and 2) under Section B — (Meals) 7. A per diem allowance has been added as follows: 201/o breakfast; 30% lunch; 50% dinner, and it is subject to receipts. E MOTION: Councilmember Johnson moved the City Council approve Item A-2 of the Consent Calendar as amended. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) A-4 RATIFICATION OF COUNCIL ACTION ON JUNE 28, 2011 PERTAINING TO RESOLUTION 45-11 ESTABLISHING A THREE YEAR MORATORIUM FOR THE PAYMENT OF DEVELOPMENT IMPACT FEES FOR COMMERCIAL AND MDG;D USE PROJECTS WITHIN A COMMERCIAL ZONE DISTRICT; (CITY ATTORNEY) Councilmember Smukler stated he would be voting in opposition to this item due to his concerns with the length and broadness of the moratorium. MOTION: Councilmember Johnson moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Councilmember Borchard and carried with Councilmember Smukler voting no. (4-1) 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2011 A-5 PROCLAMATION DECLARING SEPTEMBER 25 — OCTOBER 1, 2011 AS "WILDLIFE AWARENESS WEEK"; (ADMINISTRATION) Councilmember Smukler requested to add paragraph #3 as follows: WHEREAS, our actions and lifestyle choices have positive and negative effects on ecosystems and wildlife; and MOTION: Councilmember Smukler moved the City Council approve Item A-5 of the Consent Calendar as amended. The motion was seconded by Councilmember Leage and carried unanimously. (5-0) Mayor Peters called for a break at 6:50 p.m.; the meeting resumed at 7:00 p.m. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 APPEAL OF THE PLANNING COMMISSION'S TEMPORARY USE PERMIT TO ALLOW USE OF FOR SPORT AND COMMERCIAL FISHING FOR ® MONTHS (GAFCO/VIRG'S); (PUBLIC SERVICES) Councilmember Leage stepped down due to a conflict of interest. DECISION FOR A AN EXISTING DOCK A PERIOD OF SIX Public Services Director Rob Livick stated the applicant, owner of Great American Fish Company (GAFCO), has applied for an Administrative Temporary Use Permit for Virg's Sport Fishing Company to locate their operation at the GAFCO's lease site. During the 10-day comment and review period, a letter in opposition was received by the Public Services Department from neighboring business owners. The owners were concerned with the impacts that the project may have on parking for both the Embarcadero lease site parking lot and the Front Street parking lot. The opposition feels that patrons of the Virg's Landing will utilize the parking stalls located directly in front of other businesses and due to the length of time they are gone while out fishing and using the parking stalls for the entire business day. On June 15, 2011 the Temporary Use Permit was heard by the Planning Commission at a public hearing. At this meeting it was the decision of the Planning Commission to approve the permit subject to Findings and Conditions of Approval. On June 23, 2011, the City of Morro Bay received an appeal on the permit filed by Leonard Willhite of 1124 Front Street, a neighboring business. The basis of his appeal is that the approval of UPO-319 was based on misinformation and Commissioner tampering. Mr. Willhite's appeal makes this declaration but does not provide any documentation to substantiate this claim. Without documentation supporting this claim there is no basis to determine whether this claim has merit and warrant granting an ® appeal. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2011 Mr. Livick recommended the City Council deny the appeal and uphold the Planning Commission's approval of Temporary Use Permit #UPO-319, subject to the Findings and Conditions of Approval. Leonard Willhite, appellant, stated his objection is with the application for the permit. He said the parking lot on Front Street is being over -burdened with parking from those going out on the boats while the lot across the street on the Embarcadero is not being used. He expressed opposition to the $250 appeal fee that he had to pay. Mr. Willhite stated he has worked out an agreement with Virg's and said the City Council can allow their permit with conditions. Cathy Novak, representing the applicant, stated after 57 years in the same location, Virg's moved their operations and since Morro Bay has a limited number of docks that can accommodate passengers and not interfere with the core of the Embarcadero, Virg's sought out a site that would be the least impactful and teamed up with GAFCO. The first concern of the appeal was in regards to whether this temporary use is subject to Measure D or if it is a continuation of a historic use and therefore allowed under Measure D. There has never been any intention to abandon the sport fishing use at GAFCO but over the years commercial fishing boats have been given priority for the dock space. Since ® GAFCO has had traditional uses with both commercial fishing and sport fishing operations, the Planning Commission determined that this proposed use is consistent with Measure D. The second concern of the appeal was in regards to parking. The Planning Commission determined this is a "historic use" and therefore, there is no intensification of the use and no new parking is required because it has already been provided for at the highest use. As for previous parking arrangements in contrast with today, there shouldn't be any significant changes. Virg's has made a concerted effort now and in the past to control parking. Virg's sends a person down to the parking lot to make sure people don't park in the lot in front of GAFCO and also directs them towards the northern end of the Front Street lot to leave room for the businesses at the south Front Street area. While any additional use of the parking lot may appear to be an impact on the businesses at the southern end, Ms. Novak proposed a possible solution to keep those spaces free from the all -day use by marking the south end spaces as four hour parking. She also noted the motel has overnight guests and suggested the possibility of using cones or something in that order. In conclusion, Ms. Novak stated that maintaining a sport fishing fleet is an integral part of Morro Bay's identity since it is a working harbor. Virg's works in concert with many other businesses in town by putting together promotional packages and bringing visitors to town. Mayor Yates opened the hearing for public comment. 11 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2011 Betty Winholtz stated since the appellant and applicant worked out an equitable solution, the Council should consider refunding the appellant his filing fee of $250. She said Council received a letter from one business owner that addressed. legal concerns regarding permitting that should be addressed. Ms. Winholtz stated equity between businesses and parking issues also need to be addressed. Roger Ewing expressed support of this appeal; however, he applauds the mutual agreement that took place between the applicant and appellant. He also agrees the appeal filing fee should be refunded to the appellant. Mr. Ewing addressed fairness to all businesses, which he does not believe happened in this case. Mayor Yates closed the hearing for public comment. Councilmember Smukler stated he supports refunding the appeal filing fee to the appellant. He said he hopes some of the responsibilities of the agreement between the applicant and appellant falls upon the lease holder and not on the Front Street businesses. Mayor Yates stated there are proposed plans for parking on Front Street in the future. He ® said the return of the appeal fee in this case is a unique request. Councilmember Johnson stated this business has been on the Embarcadero for 30+ years and the Public Services Department should work out the parking. She said she does not support returning the appeal filing fee. Councilmember Borchard stated she agrees with Councilmember Smukler that there needs to be shared responsibility on the impact of the parking. She said the appellant should have mentioned the agreement he made with the applicant during the Public Comment period instead of filing an appeal, paying the appeal filing fee, and wasting staff time. Councilmember Borchard stated she is apprehensive to refunding the appeal filing fee due to setting precedence. MOTION: Mayor Yates moved the City Council deny the appeal and uphold the Planning Commission's approval of Temporary Use Permit #UPO-319, subject to the Findings and Conditions of Approval; and, refund the appeal filing fee of $250 to the appellant. The motion was seconded by Councilmember Borchard and carried with Councilmember Leage abstaining. (4-0-1) VA (� MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2011 B-2 RESOLUTION NO. 61-11 APPROVING MORRO BAY GARBAGE SERVICE BASE YEAR RATE ADJUSTMENT APPLICATION REQUESTING AN INCREASE TO SOLID WASTE COLLECTION RATES; (PUBLIC SERVICES) Management Analyst Janeen Burlingame stated the City Council adopted Resolution 48-01 approving the Garbage, Recycling and Greenwaste Franchise Agreement for collection service effective January 1, 2002 and setting the initial rates for collection for residential and commercial customers. On June 21, 2011 the City received from Morro Bay Garbage Service (MBGS) a Base Year Rate Adjustment Application with a request for an increase to the solid waste rates. Based on the calculations in the rate setting manual, the increase to solid waste rates would be 8.68%. However, MBGS felt that given the "fragile business climate" that a large increase may not be palatable and has proposed an alternative set of increases that over the next three years would eventually capture the 8.68%. Ms. Burlingame recommended the City Council adopt Resolution No. 61-11 approving Morro Bay Garbage. Service's Base Year Rate Adjustment Application and the resulting rate schedule contained therein. ® Mayor Yates opened the hearing for public comment. Betty Winholtz stated there is no incentive in the proposal to reduce waste. She said there should also be more education on reducing waste involved in this program. Mayor Yates closed the hearing for public comment. MOTION: Councilmember Borchard moved the City Council adopt Resolution No. 61-11 approving Morro Bay Garbage Service's Base Year Rate Adjustment Application and the resulting rate schedule contained therein. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 RESOLUTION NO. 59-11 ADOPTING REVISIONS TO THE MASTER FEE SCHEDULE; (ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton stated staff has prepared a resolution for the annual adoption of the proposed Master Fee Schedule for the 2011/12 fiscal year. She ® recommended the City Council review the proposed draft Schedule, make any revisions necessary, and adopt Resolution No. 59-11. 8 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2011 Mayor Yates stated he will not vote in support of this Master Fee Schedule because it is nickel and diming and he does not support increasing Public Safety fees. MOTION: Mayor .Yates moved to deny the Master Fee Schedule for the 2011/12 fiscal year. The motion was seconded by Councilmember Leage. Councilmember Smukler stated he will vote in opposition to this motion because he wants to avoid not approving any increases where the Fund becomes out of balance and then larger increases are necessary; and, minor increases are more palatable. Mayor Yates stated Council should ask for the Master Fee Schedule to be brought back without it being an automatic annual report. VOTE: The motion failed with Councilmembers Borchard, Johnson and Smukler voting no. (2-3) MOTION: Councilmember Borchard moved the City Council adopt Resolution No. 59-11 with the amendment to maintain the appeal filing fee at a fixed fee ® of $250. The motion was seconded by Councilmember Smukler and carried with Councilmember Leage and Mayor Yates voting no. (3-2) D-2 RESOLUTION 62-11 AMENDING THE CITY OF MORRO BAY ADVISORY BOARDS HANDBOOK AND BY-LAWS, (CITY ATTORNEY) City Attorney Robert Schultz stated pursuant to City Council direction, staff has reviewed the Advisory Board Handbook and By -Laws and made corrections, deletions and amendments to more clearly define how each Advisory Board is currently working. In addition, staff has added By -Laws for the Planning Commission. If these are approved, staff will return with an Ordinance to delete Morro Bay Municipal Code 2.28 removing the Planning Commission from the Morro Bay Municipal Code. Mr. Schultz recommended the City Council adopt Resolution 62-11 which will update the City's Advisory Board Handbook and By -Laws and create By -Laws for the Planning Commission and allow for the streamlining of the City's Municipal Code. Councilmember Smukler referred to special meetings and asked if they are considered a "consecutive meeting" in regards to absences. Mayor Yates requested a motion to include amendments on pages 18 and 21 of the Advisory Board Handbook (Absence from Meetings) to read: "Absence of a Board Member from two (2) consecutive meetings or three (3) meetings in any consecutive 12- ® month period ..." E MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — AUGUST 23, 2011 MOTION: Councilmember Borchard moved the City Council adopt Resolution 62-11 updating the City's Advisory Board Handbook, with the amendments to pages 18 and 21 (Absence from Meetings), and By -Laws and creating By - Laws for the Planning Commission to allow for the streamlining of the City's Municipal Code. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Smukler requested to agendize the consideration of an advisory board mixer; Council concurred. Councilmember Smukler requested to agendize a discussion on Smart Meter installations in Morro Bay; Council concurred. Councilmember Smukler requested to agendize a discussion on Morro Rock improvements; Council concurred. Councilmember Smukler requested to agendize a discussion on Morro Rock trash can service; Council concurred. Mayor Yates requested to agendize a discussion on appointing an alternate to the Air Pollution Control District Board; Council concurred. ADJOURNMENT The meeting adjourned at 8:20 p.m. Recorded by: Bnkesslm g g City Clerk E 10 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — TUESDAY, AUGUST 9, 2011 CLOSED SESSION — TUESDAY, AUGUST 9, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54957.6: CONFERENCE WITH LABOR NEGOTIATOR. Conference with City Manager, the City's Designated ® Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. n LJ PUBLIC SESSION — TUESDAY, AUGUST 9, 2011 ® VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or ® staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF THE MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF DULY 12, 2011; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. 2 A-2 RESOLUTION NO. 57-11 ESTABLISHING THE ANNUAL PROPOSITION 4 APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2011/12; ® (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 57-11. A-3 AUTHORIZATION TO FILE NOTICE OF COMPLETION FOR DESAL PRODUCT WATER LINE REPLACEMENT PROJECT: MB-2010-WI; (PUBLIC SERVICES) RECOMMENDATION: Accept the Project as completed by Brough Construction, Inc. and authorize the filing of a Notice of Completion. A-4 RESOLUTION NO. 55-11 ESTABLISHING THE COMPENSATION AND WORKING CONDITIONS. FOR THE MANAGEMENT GROUP OF THE CITY OF MORRO BAY; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 55-11. A-5 RESOLUTION NO. 56-11 ADOPTING AN AGREEMENT ON THE COMPENSATION AND WORKING CONDITIONS FOR THE CONFIDENTIAL GROUP OF THE CITY OF MORRO BAY, (ADMINISTRATION) ® RECOMMENDATION: Adopt Resolution No. 56-11. B. PUBLIC HEARINGS. REPORTS & APPEARANCES r'1 LJ B-1 AMENDMENT TO CONDITIONAL USE PERMIT #UP0-042 AND COASTAL DEVELOPMENT PERMIT #CPO-064 FOR 555 MAIN STREET TO INCREASE DENSITY FROM 18 UNITS TO 21 UNITS AND ADOPTION OF A RESOLUTION NO 58-11 AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE HOME INVESTMENT PARTNERSHIP PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Conditionally approve an amendment to Conditional Use Permit #UPO-042 and Coastal Development Permit #CPO-064 to allow three additional deed restricted senior affordable residential units subject to the Findings in Exhibit A and Conditions of Approval in Exhibit B; and adopt Resolution No. 58-11 authorizing submittal of an application to the California State Department of Housing and Community Development for funding under the HOME Investment Partnership Program; and if selected, the execution of a standard agreement. 3 L-J u r�1 U C. UNFINISHED BUSINESS C-1 ADOPTION OF ORDINANCE NO. 569 AUTHORIZING THE AMENDMENT OF SECTION 20475 (DIFFERENT LEVEL OF BENEFITS; SECTION 21363.1 (3% @ 55 FULL FORMULA); AND SECTION 20037 (THREE-YEAR FINAL COMPENSATION) FOR NEW, SWORN HIRES IN THE POLICE DEPARTMENT; (ADMINISTRATIVE SERVICES) RECOMMENDATION: D. NEW BUSINESS Adopt Ordinance No. 569. D-I RESOLUTION NO. 52-11 AUTHORIZING AND DIRECTING THE EXECUTION OF CERTAIN INSTALLMENT SALE DOCUMENTS IN CONNECTION WITH THE OFFERING AND SALE OF $1,500,000 CERTIFICATES OF PARTICIPATION RELATING TO THE FINANCING OF FIRE STATION NO. 53, AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 52-11. D-2 RESOLUTION NO. 53-11 AUTHORIZING AND DIRECTING THE EXECUTION OF CERTAIN INSTALLMENT SALE DOCUMENTS IN CONNECTION WITH THE OFFERING AND SALE OF $100,000 CERTIFICATES OF PARTICIPATION RELATING TO THE FINANCING OF FIRE STATION NO. 53, AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 53-11. D-3 RESOLUTION NO. 54-11 AUTHORIZING THE SIGNING OF USDA FORMS, WHICH AUTHORIZE AND PROVIDE FOR THE INCURRENCE OF INDEBTEDNESS FOR FIRE STATION NO. 53 ADMINISTRATION BUILDING, (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 54-11. D4 AWARD OF CONTRACT TO RARIG CONSTRUCTION, INC. OF SAN LUIS OBISPO, CA FOR THE PROJECT NO. MB-2010-FD-01: FIRE STATION 53 OFFICE AND LIVING QUARTERS PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Award the project contract to Rarig Construction, Inc. in the amount of $2,852,000. C! D-5 DISCUSSION ON APPOINTMENT OF CITY COUNCIL MEMBERS TO THE CHAMBER OF COMMERCE ECONOMIC DEVELOPMENT COMMITTEE; ® (ADMINISTRATION) RECOMMENDATION: Staff recommends Council participate on the Chamber of Commerce Economic Development Committee by appointing two Council members to attend the meetings. D-6 DISCUSSION ON THE ALLOCATION OF THE TOURISM BUSINESS IMPROVEMENT DISTRICT FUNDS FOR THE VISITORS CENTER; (ADMINISTRATION) RECOMMENDATION: Staff recommends the City Council review the motion made at the November 8, 2010 meeting, review staffs interpretation of that motion, review the concern from the TBID Budget Sub -Committee, and make any changes Council deems necessary. E. DECLARATION OF FUTURE AGENDA ITEMS F. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TU17E SET FOR THE MEETING. PLEASE REFER TO THE ® AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET DURING NORMAL BUSINESS HOURS OR AT THE SCHEDULED MEETING. R MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — AUGUST 9, 2011 ® CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m. PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION Mayor Yates adjourned the meeting to Closed Session and read the Closed Session Statement. ® Mayor Yates read the Closed Session Statement. CS-1 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR. Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. The meeting adjourned at 5:30 p.m. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2011 ® VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m. PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Rob Livick Tim Olivas Mike Pond Susan Slayton Dylan Wade Kathleen Wold Joe Woods ® ESTABLISH QUORUM.AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE City Manager City Attorney City Clerk Public Services Director Police Chief Fire Chief Administrative Services Director Capital Projects Manager Planning Manager Recreation & Parks Director MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session to discuss matters of labor negotiations; two matters are on the open session agenda as follows: Items A4 (Resolution No. 55-11 Establishing the Compensation and Working Conditions for the Management Group of the City of Morro Bay) and A-5 (Resolution No. 56-11 Adopting an Agreement on the Compensation and Working Conditions for the Confidential Group of the City of Morro Bay). PUBLIC COMMENT Kim Van Norstrand announced her shop which is an artisan co-op named Artsea at 736 Main Street where she sells and teaches the art of stained glass, and plans to open a tea room. Betty Winholtz announced Pamm Lary will be speaking at the Coalesce wedding chapel on August 20'h at 3:00 p.m. on the ballot initiative regarding labeling genetically - modified organisms. She also suggested since City employees are reducing their salaries to benefit the budget, the City Council should also consider reducing their health insurance benefits. 2 l MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2011 Hunter Kilpatrick stated Eco-Rotary asked for their participation along with the Gorilla Gardeners in the zero waste program at the Relay for Life event, and he wis happy to announce that 96% of the waste at the event was diverted from the landfill. Richard Sadowski addressed the Morro Basin Nitrate Study that was focused on the farmers, and said his report shows the nitrate pollution is more likely coming from sewage that is coming from the main lines entering the aquifer on Highway 41 and Main Street. He said it goes back to the remediation action at 1840 Main Street and due to the differed maintenance practices of the collection system and neglect of addressing the problem; further reports show the nitrate pollution is coming from sewage. Mr. Sadowski addressed Item A-3 (Authorization to File Notice of Completion for Desal Product Water Line Replacement Project: MB-2010-WI) stating he has video evidence that shows this was not a water line replacement but instead an upsizing of the desal infrastructure which would require a CEQA review and was circumvented by staff. Taylor Newton announced Dahlia Daze and Cypress Nightz will be celebrated on August 26-27 with a wine and cheese reception on Friday night, and a festival with special events with guest speakers and a barn dance on Saturday. Marla Jo Bruton referred to plastic bag waste and noted she makes artistic bags to use in place of plastic. She also said she was going to get a SmartMeter and then declined; she ® said the PUC has yet to make their ruling on the safety issues on SmartMeters. Joan Solu addressed Item D-6 (Discussion on the Allocation of the Tourism Business Improvement District (TBID) Funds for the Visitors Center) and noted the TBID sub- committee sent the Council a letter discussing that it was their understanding that the TBID would fund the $50,000 annually of the Visitor Center with the assessment value returning to 3% of the gross room sales starting in November 2010. She said since they have been assessed 2% from July 2010 to November 2010, Council could give TBID a credit for the four months or start payments again in November 2011. John Barta stated the current sprinkler regulations create less new building and remodel permits due to the cost. He said the City should instead consider the installation of advanced alarm systems instead of sprinkler systems. John Weiss stated there are financial issues in the business community, and the Chamber of Commerce is working diligently to address these issues. He said a survey has been sent out regarding the economics of the business community. Mr. Weiss also said applications are available for the Board of Directors of the Chamber. Mayor Yates closed the hearing for public comment. 11 3 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2011 A. - CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF THE MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF JULY 12, 2011; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 57-11 ESTABLISHING THE ANNUAL PROPOSITION 4 APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2011/12; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 57-11. A-3 AUTHORIZATION TO FILE NOTICE OF COMPLETION FOR DESAL PRODUCT WATER LINE REPLACEMENT PROJECT: MB-2010-W1; (PUBLIC SERVICES) RECOMMENDATION: Accept the Project as completed by Brough ® Construction, Inc. and authorize the riling of a Notice of Completion. A4 RESOLUTION NO. 55-11 ESTABLISHING THE COMPENSATION AND WORKING CONDITIONS FOR THE MANAGEMENT GROUP OF THE CITY OF MORRO BAY; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 55-11. A-5 RESOLUTION NO. 56-11 ADOPTING AN AGREEMENT ON THE COMPENSATION AND WORKING CONDITIONS FOR THE CONFIDENTIAL GROUP OF THE CITY OF MORRO BAY; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 56-11. MOTION: Councilmember Johnson moved the City Council approve the Consent Calendar. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) Mayor Yates called for a break at 6:43 p.m.; the meeting resumed at 6:49 p.m. 1, MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2011 B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 AMENDMENT TO CONDITIONAL USE PERMIT #UPO-042 AND COASTAL DEVELOPMENT PERMIT #CPO-064 FOR 555 MAIN STREET TO INCREASE DENSITY FROM 18 UNITS TO 21 UNITS AND ADOPTION OF A RESOLUTION NO 58-11 AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE HOME INVESTMENT PARTNERSHIP PROGRAM; (PUBLIC SERVICES Planning Manager Kathleen Wold stated on December 13, 2010 this project was modified by the City Council to have 18 senior restricted affordable units eliminating all commercial units. Once the modification was approved the applicant engaged his architect in designing the project subject to all conditions of approval. During the design phase it became apparent that additional units could be accommodated on this site. The applicant requests an amendment to Conditional Use Permit #UPO-042 and Coastal Development Permit #CPO-064 to modify the project to allow an increase in unit count from 18 senior restricted affordable units to 21 senior restricted affordable units. Also included for Council consideration is Resolution No. 58-11 authorizing the submittal of an application to the California State Department of Housing and Community Development for funding under ® the HOME Investment Partnership Program. This is a follow up to the previous action taken on December 13, 2010 where the City Council approved City sponsorship of a request for HOME funds for this project. Ms. Wold recommended the City Council: 1) approve the amendment to the project by granting a Density Bonus incentive increasing the number of restricted senior affordable units to 21; and, 2) approve Resolution No. 58-11 authorizing the submittal of an application to the California State Department of Housing and Community Development for funding under the HOME Investment Partnership Program. Robert Laing, Executive Director for Pacific Southwest (applicant), stated the request to modify the project is to allow an increase in unit count from 18 senior restricted affordable units to 21 senior restricted affordable units. He said the parking should be sufficient since not all residents will have vehicles and there will be one space assigned for a van for transport, and a handicap space. Mr. Laing stated one unit will be for the manager, 10 units will be rented to those with 50% earned income, and the remaining 10 units with be rented to those with 60% earned income. He said they will stay with the original plans that were approved by the City and are compatible with the existing neighborhood. Mr. Laing discussed the 55-year Residual Receipts Loan for this Affordable Housing Project. Mayor Yates opened the hearing for public comment. El 5 C] -MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2011 John Barra stated he is a proponent of affordable housing; however, he reminded Council that granny units are also a form of affordable housing that would not need new infrastructure. Patricia Gomez, Director for the Homeless Services Oversight Council, expressed support for this project and increasing affordable housing in the County. She also requested some units be considered for extremely low income residents. Mayor Yates closed the hearing for public comment. Council agreed they support the affordable housing portion of this project and would like to support the funding portion to allow this project to move forward. MOTION: Councilmember Smukler moved the City Council conditionally approve an amendment to Conditional Use Permit #UPO-042 and Coastal Development Permit #CPO-064 to allow three additional deed restricted senior affordable residential units subject to the findings in Exhibit A and Conditions of Approval in Exhibit B; and, adopt Resolution No. 58-11 authorizing submittal of an application to the California State Department of Housing and Community Development for funding under the HOME Investment Partnership Program; and if selected, the execution of a standard agreement. ® The motion was seconded by Councilmember Leage and carried unanimously. (5-0) n LJ C. UNFINISHED BUSINESS C-1 ADOPTION OF ORDINANCE NO. 569 AUTHORIZING THE AMENDMENT OF SECTION 20475 (DIFFERENT LEVEL OF BENEFITS; SECTION 21363.1 (3% @ 55 FULL FORMULA); AND SECTION 20037 (THREE-YEAR FINAL COMPENSATION) FOR NEW, SWORN HIRES IN THE POLICE DEPARTMENT; (ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton stated on July 12, 2011, the City Council was presented with Ordinance No. 569 for its introduction and first reading. While there will not be a significant fiscal impact at the outset, by virtue of the change of retirement formula, the City will see substantial savings as we hire new employees to replace our existing employees, who either retire or move on to other agencies. It is known that the new employer contribution rate for the new hires will be 20.308% of reportable earnings, as opposed to the current rate of 35.055%. Ms. Slayton recommended the City Council adopt Ordinance 569, authorizing the amendment of Different Level of Benefits, 3% @ 55 Full formula and Three -Year Final Compensation for new, sworn hires in the Police Department. R MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —AUGUST 9, 2011 ®. MOTION: Councilmember Borchard moved the City Council adopt Ordinance 569, authorizing the amendment of Different Level of Benefits, 3% @ 55 Full formula and Three -Year Final Compensation for new, sworn hires in the Police Department. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) D. NEW BUSINESS D-1 RESOLUTION NO. 52-11 AUTHORIZING AND DIRECTING THE EXECUTION OF CERTAIN INSTALLMENT SALE DOCUMENTS IN CONNECTION WITH THE OFFERING AND SALE OF $1,500,000 CERTIFICATES OF PARTICIPATION RELATING TO THE FINANCING OF FIRE STATION NO. 53, AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO; (ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton stated Resolution No. 52-11 requests that the City Council approve the issuance of $1,500,000 in Certificates of Participation for Fire Station No. 53 Administration Building project, and direct the Mayor, the City Manager, the Administrative Services Director, the City Clerk and all other appropriate officials of the City to execute the agreements, documents and certificates. Ms. Slayton recommended the City Council adopt Resolution No. 52-11 therefore directing the Mayor, the City Manager, the Administrative Services Director, the City Clerk and all ® other appropriate officials of the City to execute the agreements, documents and certificates. MOTION: Councilmember Borchard moved the City Council adopt Resolution No. 52-11 authorizing and directing the execution of certain installment sale documents in connection with the offering and sale of $1,500,000 Certificates of Participation relating to the financing of Fire Station No. 5.3, and authorizing and directing certain actions with respect thereto. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) D-2 RESOLUTION NO. 53-11 AUTHORIZING AND DIRECTING THE EXECUTION OF CERTAIN INSTALLMENT SALE DOCUMENTS IN CONNECTION WITH THE OFFERING AND SALE OF $300,000 CERTIFICATES OF PARTICIPATION RELATING TO THE FINANCING OF FIRE STATION NO. 53, AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO, (ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton stated Resolution No. 53-1 I -requests that the City Council approve the issuance of $300,000 in Certificates of Participation for Fire Station No. 53 Administration Building project, and direct the Mayor, the City Manager, the Administrative Services Director, the City Clerk and all other appropriate officials of ® the City to execute the agreements, documents and certificates. 7 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2011 40 The reason for the additional $300,000 are: 1) the additional costs associated with the FEMA requirement of `Buy American," which caused a redesign of the facility to accommodate the American -made heating and cooling system; and 2) the cost overrun on the construction bids due to a significant delay in between the engineer's estimate and the actual bid submissions. Ms. Slayton recommended the City Council adopt Resolution No. 53-11, therefore directing the Mayor, the City Manager, the Administrative Services Director, the City Clerk and all other appropriate officials of the City to execute the agreements, documents and certificates. MOTION: Councilmember Johnson moved the City Council adopt Resolution No. 53- 11 authorizing and directing the execution of certain installment sale documents in connection with the offering and sale of $100,000 Certificates of Participation relating to the financing of Fire Station No. 53, and authorizing and directing certain actions with respect thereto. The motion was seconded by Councilmember Leage and carried unanimously. (5-0) D-3 RESOLUTION NO. 54-11 AUTHORIZING THE SIGNING OF USDA FORMS, WHICH AUTHORIZE AND PROVIDE FOR THE INCURRENCE OF INDEBTEDNESS FOR FIRE STATION NO. 53 ADMINISTRATION BUILDING; (ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton stated Resolution No. 54-11 requests that the City Council approve two (2) USDA Forms RD 194247 in connection with the issuance of the $1,800,000 Certificates of Participation for Fire Station No. 53 Administration Building, and direct the City Manager to sign those forms. These forms must be submitted to the USDA in the exact format approved by the US Government, in order for us to engage in the two loans for $1,500,000 and $300,000. Ms. Slayton recommended the City Council adopt Resolution No. 54-11 directing the City Manager to sign the USDA Forms. MOTION: Councilmember Borchard moved the City Council adopt Resolution No. 54-11 authorizing the signing of USDA forms, which authorize and provide for the incurrence of indebtedness for Fire Station No. 53 administration building. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) D4 AWARD OF CONTRACT TO RARIG CONSTRUCTION, INC. OF SAN LUIS OBISPO, CA FOR THE PROJECT NO. MB-2010-FD-01: FIRE STATION 53 OFFICE AND LIVING QUARTERS PROJECT; (PUBLIC SERVICES) Capital Projects Manager Dylan Wade stated this project entails the construction of an Office and Living Quarters portion of Fire Station 53 to replace the original facility which was damaged during the San Simeon earthquake. This structure will adjoin the existing Apparatus Bay and will improve Fire Department response times and ® functionality 0 E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2011 The building has been designed, and will be constructed to the essential facilities standards. Project bids were opened on June 30th with 4 bids received. The low bid was submitted by Rarig Construction, Inc. of San Luis Obispo in the total bid amount of $2,852,000. Bids .ranged from the low bid to a high bid of $3,252,000. Based on the number of bids received, and the range between bidders; staff believes the bid to be competitive. As a condition of the Federal funding received a formal bid analysis was prepared. Since the bids came in higher than the Engineer's estimate, the USDA made additional loan funds available. These additional funds will enable the project to be completed. Mr. Wade recommended the City Council award the project contract to Rarig Construction, Inc., in the total bid amount of $2,852,000. MOTION: Councilmember Johnson moved the City Council award the project contract to Rarig Construction, Inc., in the total bid amount of $2,852,000 for Project No. NM-2010-FD-01: Fire Station 53 Office and Living Quarters Project. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) D-5 DISCUSSION ON APPOINTMENT OF CITY COUNCIL MEMBERS TO THE CHAMBER OF COMMERCE ECONOMIC DEVELOPMENT COMMITTEE; (ADMINISTRATION) ® City Manager Andrea Lueker stated at the June 14, 2011 meeting, the City Council requested the discussion on participation on the Economic Development Committee come back before Council as a separate topic. Craig Schmidt, Chamber of Commerce CEO, formed an Economic Development Committee several months ago with the first meeting held on April 5, 2011. The Committee has met regularly since that time and is examining the economic development needs of Morro Bay, developing strategies to address those needs, and forming the necessary partnerships to . achieve its objectives. Several aspects of economic development will be investigated and may include the following: 1) business retention and expansion; 2) business recruitment; and 3) entrepreneurial and workforce development. The goal of the committee will be to formulate a broad strategic and'economic development plan and work with the Chamber. Ms. Lueker recommended the City Council discuss participation on the Chamber of Commerce Economic Development Committee by appointing two members of Council to attend the meetings. The City Council discussed appointing Council Members Johnson and Smukler to the Chamber of Commerce Economic Development Committee because they attend the meetings. Councilmember Borchard stated with Councilmember Leage being the City's Economic Vitality representative for San Luis Obispo County,, she believes he should be appointed to the Chamber Economic Development Committee in order to share that information. W MINUTES.- MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2011 MOTION: Councilmember Leage moved the City Council appoint Council Members Johnson and Smukler to the Chamber of Commerce Economic Development Committee. The motion was seconded by Mayor Yates and carried with Councilmember Borchard voting no. (4-1) D-6 DISCUSSION ON THE ALLOCATION OF THE TOURISM BUSINESS IMPROVEMENT DISTRICT FUNDS FOR THE VISITORS CENTER; (ADMINISTRATION) City Manager Andrea Lueker stated in November 2010, the City Council reviewed a staff report entitled "Discussion of the Visitors Center Including the 2009/2010 Financial Review, Percentage of Funding from the Morro Bay Tourism Business Improvement District and Representation of the Board." After discussion, the City Council made a motion that included a number of directions, one of which is the following: Approve 33% of funding (not to exceed $50,000) from the Tourism Business Improvement District (TBID), beginning with the month of November. Staff understood this to mean $50,000 for fiscal year 2010/11, and $50,000 for fiscal year 2011/12. However, the TBID Budget Sub - Committee, in a letter sent to the City Council on July 6, 2011, indicated they believe the City should have pro -rated the amount from November 2010, charging $33,333 (instead of the $50,000) for fiscal year 2010/11, and $50,000 for fiscal year 2011/12. Staff is requesting the City Council to clarify the November 2010 motion. Should the Council determine the amount for last fiscal year should have been the prorated $33,333 staff will credit the TBID with the additional $16,667, and address the revenue loss to the General Fund at the mid -year budget review. Ms. Lueker recommended the City Council review the motion made at the November 8, 2010 meeting, review staff's interpretation of that motion, review the concern from the TBID Budget Sub -Committee, and make any changes Council deems necessary. Councilmember Borchard stated. it was her intent in her motion at the November 8, 2010 meeting that 33% was to begin in November 2010. Consensus of Council was to direct staff to credit the Tourism Business Improvement District with the additional $16,667 from Fiscal Year 2010/11, and address the revenue loss to the General Fund at the mid -year budget review. E. DECLARATION OF FUTURE AGENDA ITEMS — None. ADJOURNMENT - The meeting adjourned at 7:51 p.m. Recorded by: Bridgett esslin9 ® City Clerk 10 ® City of Morro Bay City Council Agenda Mission Statement. The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent ivith and responsive to the needs of the public. REGULAR MEETING— TUESDAY, JULY 12, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS is CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. ® • Your participation in City Council meetings is welcome and your courtesy will be appreciated. ® In compliance with the Americans with. Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETINGS OF DUNE 14, 2011 AND NNE 28, 2011; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 47-11 ADOPTING MEMORANDUM OF UNDERSTANDING WITH THE MORRO BAY PEACE OFFICERS ASSOCIATION; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 47-11. A-3 RESOLUTION NO. 48-11 INTENTION TO APPROVE AN AMENDMENT TO ® THE CONTRACT ,BETWEEN THE BOARD OF ADMINISTRATION OF CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY OF MORRO BAY (LOCAL POLICE SAFETY); (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 48-11. A-4 AUTHORIZATION FOR THE CITY OF MORRO BAY TO ENTER INTO GRANT AGREEMENT #10-101-101 WITH THE DEPARTMENT OF BOATING AND WATERWAYS FOR "MORRO BAY STATE PARK MARINA - NON -MOTORIZED KAYAK LAUNCH DREDGING'; (HARBOR) RECOMMENDATION: Adopt Resolution No. 50-11. A-5 AUTHORIZATION FOR THE CITY OF MORRO BAY TO ENTER INTO GRANT AGREEMENT 910-127-938 WITH THE DEPARTMENT OF BOATING AND WATERWAYS FOR "MORRO BAY STATE PARK MARINA - MARINA BASIN AND ENTRANCE CHANNEL DREDGING"; (HARBOR) RECOMMENDATION: Adopt Resolution No. 51-11. u 2 ® B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 INTRODUCTION AND FIRST READING OF ORDINANCE NO. 569 AUTHORIZING THE AMENDMENT OF SECTION 20475 (DIFFERENT LEVEL OF BENEFITS; SECTION 21363.1 (3% @ 55 FULL FORMULA); AND SECTION 20037 (THREE-YEAR FINAL COMPENSATION) FOR NEW, SWORN HIRES IN THE POLICE DEPARTMENT; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Approve first reading and introduction of Ordinance No. 569 by number and title only. B-2 RESOLUTION NO. 49-I1 ADOPTING THE FISCAL YEAR 2011/12 OPERATING BUDGETS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 49-11. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 DESIGNATION OF VOTING DELEGATE AND ALTERNATE VOTING DELEGATE AT LEAGUE OF CALIFORNIA CITIES 2011 ANNUAL ® CONFERENCE BUSINESS MEETING; (ADMINISTRATION) RECOMMENDATION: Appoint a voting delegate and alternate to attend the Annual Business Meeting during the League of California Cities Annual Conference. L� E. DECLARATION OF FUTURE AGENDA ITEMS F. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAH.ABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET DURING NORMAL BUSINESS HOURS OR AT THE SCHEDULED MEETING. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Eric Endersby Susan Lichtenbaum Rob Livick Tim Olivas Mike Pond Susan Slayton Joe Woods City Manager City Attorney City Clerk Harbor Operations Manager Harbor Business Manager Public Services Director Police Chief Fire Chief Administrative Services Director Recreation & Parks Director ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT - — there was no Closed Session report. PUBLIC COMMENT Richard Sadowski announced the Rock to Pier Run would be held on Saturday, July 16'h and noted the church he attends will be providing nourishment for the runners. Garry Johnson shared pictures of the skateboard and 4`h of July events and noted how much fun everyone had over this successful weekend. Betty Winholtz reminded residents that the deadline for comments on the Wastewater Treatment Plant upgrade was Friday, July 15'h. She also stated an error was made on the airing of the Wastewater Treatment Plant workshop on July 27`h where a speaker was omitted and she would hope that does not happen again. E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2611 Richard Margesten asked why the June and July JPA meetings were canceled. He said he would think the City Council would want a discussion after the workshops were held and receive additional comments regarding the Wastewater Treatment Plant upgrade. Joan Solu stated a California Welcome Center may be allowed in Morro Bay since there is not one within 50 miles along Highway 1; she said she will pursue this issue. Mayor Yates closed the hearing for public comment. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETINGS OF JUNE 14, 2011 AND JUNE 28, 2011; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 47-11 ADOPTING MEMORANDUM OF UNDERSTANDING WITH THE MORRO BAY PEACE OFFICERS ASSOCIATION; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 47-11. A-3 RESOLUTION NO. 48-11 INTENTION TO APPROVE AN AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY OF MORRO BAY (LOCAL POLICE SAFETY), (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 48-11. A4 AUTHORIZATION FOR THE CITY OF MORRO BAY TO ENTER INTO GRANT AGREEMENT 910-101-101 WITH THE DEPARTMENT OF BOATING AND WATERWAYS FOR "MORRO BAY STATE PARK MARINA - NON -MOTORIZED KAYAK LAUNCH DREDGING'; (HARBOR) RECOMMENDATION: Adopt Resolution No. 50-11. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2011 A-5 AUTHORIZATION FOR THE CITY OF MORRO BAY TO ENTER INTO GRANT AGREEMENT #10-127-938 WITH THE DEPARTMENT OF BOATING AND WATERWAYS FOR "MORRO BAY STATE PARK MARINA - MARINA BASIN AND ENTRANCE CHANNEL DREDGING"; (HARBOR) RECOMMENDATION: Adopt Resolution No. 51-11. Councilmember Smukler pulled Item A-1 from the Consent Calendar. MOTION: Councilmember Johnson moved the City Council approve the Consent Calendar with the exception of Item A-1. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETINGS OF JUNE 14, 2011 AND JUNE 28, 2011; (ADMINISTRATION) Councilmember Smukler referred to the minutes of June 28, 2011; Item B-3 (Adoption of the Urban Water Management Plan 2010 Update) page 6, and requested the following ® amendment to his statement: "Councilmember Smukler requested the motion include recognition of the risk of unplanned an emergency interruptions to the State Water Project in the Plan." MOTION: Councilmember Smukler moved the City Council approve Item A-1 of the Consent Calendar with the amendment to the minutes of June 28, 2011. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 INTRODUCTION AND FIRST READING OF ORDINANCE NO. 569 AUTHORIZING THE AMENDMENT OF SECTION 20475 (DIFFERENT LEVEL OF BENEFITS; SECTION 21363.1 (3% @ 55 FULL FORMULA); AND SECTION 20037 (THREE-YEAR FINAL COMPENSATION) FOR NEW, SWORN HIRES IN THE POLICE DEPARTMENT; (ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton stated per the contract amendment process, the City Council was presented with Resolution No. 48-11, which authorized the Resolution of Intention to approve an amendment to the contract between the Board of ® Administration California Public Employees' Retirement System (PERS) and the City of 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2011 Morro Bay (Local Police Members). The process also requires the introduction and first reading of an Ordinance which is being presented to Council. This Ordinance is not to be adopted until 20 days have passed since the adoption of the Resolution of Intention. Ms. Slayton recommended the City Council approve Ordinance No. 569 for first reading and introduction by number and title only; she noted the adoption of Ordinance No. 569 will be scheduled for the August 9, 2011 meeting. Mayor Yates opened the hearing for public comment; there were no comments, and Mayor Yates closed the hearing for public comment. MOTION: Councilmember Borchard moved the City Council approve Ordinance No. 569 for first reading and introduction by number and title only. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) City Manager Andrea Lueker read Ordinance No. 569 by title and number only. B-2 RESOLUTION NO. 49-11 ADOPTING THE FISCAL YEAR 2011/12 ® OPERATING BUDGETS; (ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton stated the FY 2011/12 budget is balanced in all funds without the use of any General Fund Emergency Reserves. She said any amendments that the City Council makes to the budget will be included in the final document. Ms. Slayton recommended Council provide any further direction regarding the FY 2011/12 operating budgets, and adopt Resolution No. 49-11 accepting the budget as the spending plan for the upcoming year. Mayor Yates opened the hearing for public comment. Joan Solu stated with efforts being made in marketing, the hoteliers have hopes that percentages in Transient Occupancy Tax collections will go up as well as the Tourism Business Improvement District. She said the budget projects the Tourism Business Improvement District to be at $360,000, which is at a 2% collection rate, and the hoteliers are actually collecting 3% which would be $480,000. Ms. Solu asked Council to review the schedule for the Tourism Business Improvement District collections. She also requested Council review the motion approving $50,000 for the Visitor Center funding, and when the funding was to begin. rd MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NLY 12, 2011 Betty Winholtz referred to the following items in the budget and requested clarification: 1) $560,000 coming out for Capital Projects from the Harbor fund — she finds only $30,000 is needed for the Harbor Marina; what is the remaining funding going towards; 2) Streets — how much is going towards streets, how much is from Measure Q funds and where is the rest of the funding coming from; 3) Water — money coming out of Reserves and going towards Operations - what are these funds being used for; and, 4) Capital Projects — why have these projects not been completed. She said it appears $94,000 of impact fees were collected in the last year, and due to Council's action at its previous meeting, it will be losing these fees for the next three years. Ms. Winholtz stated Dial -a - Ride could have been extended for another couple of years with a few minor adjustments from Reserves. Mayor Yates closed the hearing for public comment. The City Council reviewed the Fiscal Year 2011/12 preliminary annual budget, and. the following changes/transfers/dedications were made: 1. Transfer $170,551, which represents the unallocated, excess cash reserves, ® from the General Fund Emergency Reserve Fund to the Streets Division of the District Transaction Tax (DTT) (Measure Q) Fund; and 2. Remove the reservation of +/- $110,000, which currently exists in the DTT Fund for the City Hall/Public Services/Transit Building Generator, and apply that money to the Streets Division in the DTT Fund; and 3. Change the revenue projection in the Morro Bay Tourism Business Improvement District (MBTBID) Fund from $380,000 to $460,000; the original estimate was calculated at 2%, when the actual assessment is 3%; and 4. Transfer the Mimosa Special Assessment District cash balance of $12,607 from the Special Assessment District Fund to the Streets Division of the DTT Fund for Mimosa Street; and 5. Reduce the Fire Department's 2011/12 request for funding for a firefighter, which was made in the DTT Fund, from $147,101 to $143,864 to recognize the savings from the 2°d Tier retirement program, and dedicate that money ($3,237) to the Fire Station 953 Reserve in the DTT Fund; and E C MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2011 6. Remove the following requested items from the DTT Fund "A" list, as they will be paid for with the COPS grant or Vehicle License Fees, for a total of $100,000: a) Booking fees (VLF): $40,000 b) Safety items (COPS): $43,000 c) Salary for '/z time Property/Evidence Technician (COPS): $17,000 7. Add the following Police request for DTT Fund money to the "A" list from the "A.1" list: $16,000 for (3) ballistic entry vests and LASERFICH software upgrade; and 8. The balance of $84,000, which is $100,000 of removed items above less the $16,000 item added from the "A.1" list, is to be dedicated in the DTT Fund to storm drains; and 9. Remove the 2008/09 through 2010/11 reservations in the DTT Fund Fire Division for Fire - firefighter, and apply that money to the Fire Station 953 reserve in the DTT Fund Fire Division. ® MOTION: Mayor Yates moved the City Council adopt Resolution No. 49-11 with the following amendments: 1) $170,000 from Unallocated Emergency Reserve Funds and place it in the Street Fund; 2) $100,000 +/- allocated for the City Hall generator and place it in the Street Fund; 3) adjust the Tourism Business Improvement District income from $380,000 to $460,000; 4) Measure Q — List A: remove the Police Department booking fees ($40,000), safety items ($43,000), salary for the half-time Property/Evidence Technician ($17,000) and add $16,000 from the A-1 List (Police Department vests), and the remaining $84,000 from the $100,000 generator savings will be placed into the Street and Storm Drain Funds; 5) Mimosa Street Assessment District unallocated funds ($12,000) shall be placed in the Street Fund and specifically earmarked for the Mimosa Street maintenance; and 6) $131,983 savings dedicated for the Measure Q firefighter position ($3,237) and two other reservations for Fire and place it towards the Fire Station #53 Project. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) C. UNFINISHED BUSINESS — None. R MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2011 D. NEW BUSINESS D-1 DESIGNATION OF VOTING DELEGATE AND ALTERNATE VOTING DELEGATE AT LEAGUE OF CALIFORNIA CITIES 2011 ANNUAL CONFERENCE BUSINESS MEETING; (ADMINISTRATION) MOTION: Councilmember Smukler moved the City Council appoint City Attorney Robert Schultz as the City's voting delegate at the League of California Cities 2011 Annual Conference Business Meeting. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Smukler requested to agendize a discussion on options for a bike/pedestrian connector pathway through the power plant property and incorporates recommendations into the City Bike Plan; Council concurred. Councilmember Smukler requested to agendize a discussion on the implementation of short and long-term actions to resolve trash situations at the Morro Rock parking lot. Councilmember Smukler requested the Tourism Business Improvement District Advisory Board to review the California Welcome Center option. Councilmember Smukler requested to agendize a discussion on a long-range planning priorities and goal setting workshop; Council concurred. Councilmember Borchard requested to agendize a discussion on the Tourism Business Improvement District allocation of funds; Council concurred. Councilmember Borchard requested to agendize a discussion on the review of Commission and Advisory Board by-laws; Council concurred. ADJOURNMENT - The meeting adjourned at 8:47 p.m. Recorded by: Bridgett Kessling City Clerk 7 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — TUESDAY, JUNE 28, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. 269 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS ® CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. ® • Your participation in City Council meetings is welcome and your courtesy will be appreciated. 1 ® In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF AGREEMENT BETWEEN THE MORRO BAY CHAMBER OF COMMERCE AND CITY OF MORRO BAY TO OPERATE THE VISITORS CENTER; (ADMINISTRATION) RECOMMENDATION: Approve the Agreement between the Morro Bay Chamber of Commerce and the City of Morro Bay, to operate the Visitors Center. A-2 RESOLUTION NO. 45-11 ESTABLISHING A THREE-YEAR MORATORIUM FOR THE PAYMENT OF DEVELOPMENT IMPACT FEES FOR COMMERCIAL PROJECTS WITHIN A COMMERCIAL ZONE DISTRICT; (PUBLIC SERVICES) ® RECOMMENDATION: Adopt Resolution No. 45-11. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION NO. 43-11 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 43-11. B-2 RESOLUTION NO. 44-11 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 44-11. B-3 ADOPTION OF THE URBAN WATER MANAGEMENT PLAN 2010 UPDATE; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 46-11. ® C. UNFINISHED BUSINESS — NONE. OA • D. NEW BUSINESS D-I CONSIDERATION OF RESOLUTION NO. 42-11 AMENDING THE PARAMETERS FOR THE USE OF THE GENERAL FUND EMERGENCY RESERVE; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 42-11. D-2 REPORT ON THE CAMBRIA VOLUNTARY COMMUNITY BUS PROGRAM; (COUNCIL) RECOMMENDATION: Discuss the neat steps for a Volunteer -run Community Bus Program. D-3 DISCUSSION AND ADOPTION OF THE PAVEMENT MANAGEMENT PLAN; (PUBLIC SERVICES) RECOMMENDATION: Review and adopt the Pavement Management Plan as a tool for the maintenance to the City's streets. D4 DISCUSSION OF IMPROVEMENTS TO THE "ROCK" PARKING LOT, LOCATED AT THE END OF COLEMAN DRIVE, MORRO BAY; (PUBLIC ® SERVICES) RECOMMENDATION: Discuss the project and provide direction to staff. E. DECLARATION OF FUTURE AGENDA ITEMS u F. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO TILE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET DURING NORMAL BUSINESS HOURS OR AT THE SCHEDULED MEETING. 3 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JUNE 28, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:05 p.m. PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Robert Schultz Bridgett Kessling Eric Endersby Rob Livick Tim Olivas Mike Pond Barry Rand Susan Slayton Dylan Wade Joe Woods City Attorney City Clerk Harbor Operations Manager Public Services Director Police Chief Fire Chief Assistant Engineer Administrative Services Director Utilities/Capital Projects Manager Recreation & Parks Director ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT — there was no Closed Session report. u PUBLIC COMMENT Craig Schmidt, Chamber of Commerce CEO stated the Visitors Center hours have been changed to 9:00 am — 5:00 pm seven days per week, and the Chamber of Commerce will be paying for the additional hours until the 90-day contract is re-evaluated. He said it is unlikely Morro Bay would qualify as a California State Welcome Center because it is within 50 miles of Pismo Beach which is a Welcome Center. Mr. Schmidt stated the City Manager has been added as a voting member to the Executive Committee to the Chamber. He noted the Chamber is providing the City with profit and loss detailed statements every month, and providing the Community Promotions Committee and Tourism Business Improvement District Advisory Board with fiscal information. Mr. Schmidt announced he is looking for Skateboard event volunteers for July 3rd and volunteers for the 4s of July. He also thanked Harold Biaggini for hiring a crew to remove the weeds around the City billboard. 1 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JUNE 28, 2011 John Barta stated the California Welcome Center 50-mile rule may not come into play since Morro Bay is on Highway 1 and Pismo Beach is on Highway 101. He expressed support on Item D-2 (Report on the Cambria Voluntary Community Bus Program). Mr. Barta referred to Item D4 (Discussion of Improvements to the "Rock" Parking Lot, Located at the End of Coleman Drive, Morro Bay) stating the Rock is known as the "Gibraltar of the Pacific" and the most sought after tourist attraction in the City. He requested Council be tenacious and aggressive in their decision on this item because improvements to this parking lot will add a lot to the town. Betty Winholtz referred to Item D4 stating the Rock parking lot is made of fill and could be an engineering nightmare; she said this money should go towards repaving City streets. Ms. Winholtz also referred to Item D-3 (Discussion and Adoption of the Pavement Management Plan) stating out of all the budgetary items on the agenda tonight, all the money should go towards this item. Barry Brannin stated the workshops regarding the Wastewater Treatment Plant upgrade were well attended. He said he appreciated the openness and the interaction with staff and the consultant is bringing a level of professionalism that is truly remarkable. Gerald Bednorz, Beach House Bistro, announced the 4`" annual drive-thru barbeque will is be held on the 4's of July from 12:00 pm - 4:00 pm to support the Susan G. Komen Breast Cancer Foundation. Susan Stewart, Community Promotions Committee Chair gave a monthly update on the Committee's actions. Garry Johnson shared a photo of the K-9 walk-a-thon stating it was a great event. He also shared photos of the live theatre produced by Karen Garman stating what a fantastic job she does for the youth in our community. Mayor Yates closed the hearing for public comment. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF AGREEMENT BETWEEN THE MORRO BAY CHAMBER OF COMMERCE AND CITY OF MORRO BAY TO OPERATE THE VISITORS CENTER; (ADMINISTRATION) RECOMMENDATION: Approve the Agreement between the Morro Bay ® Chamber of Commerce and the City of Morro Bay to operate the Visitors Center. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2011 A-2 RESOLUTION NO. 45-11 ESTABLISHING A THREE-YEAR MORATORIUM FOR THE PAYMENT OF DEVELOPMENT IMPACT FEES FOR COMMERCIAL PROJECTS WITHIN A COMMERCIAL ZONE DISTRICT, (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 45-I1. Councilmember Smukler pulled Item A-2 from the Consent Calendar. MOTION: Councilmember Borchard moved the City Council approve Item A-1 of the Consent Calendar. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) A-2 RESOLUTION NO. 45-11 ESTABLISHING A THREE-YEAR MORATORIUM FOR THE PAYMENT OF DEVELOPMENT IMPACT FEES FOR COMMERCIAL PROJECTS WITHIN A COMMERCIAL ZONE DISTRICT; (PUBLIC SERVICES) Councilmember Smukler stated he would be voting in opposition to this item because there ® are things the City could do that could support low impact development concepts as part of the impact fee reduction. He said this lacks a public benefit component that clearly shows resource improvements on conservation. Councilmember Johnson referred to Resolution No. 45-11 and requested the following amendment: BE IT FURTHER RESOLVED by the City Council of the City of Morro Bay, that only commercial or mixed -use projects on commercially zoned land shall be eligible and that residential projects within the mixed use areas shall not be eligible. MOTION: Councilmember Johnson moved the City Council approve Item A-2 of the Consent Calendar as amended. The motion was seconded by Councilmember Borchard. Councilmember Smukler expressed opposition because a higher standard needs to be held when giving away this large of a public gift. VOTE: The motion carried with Councilmember Smukler voting no. (4-1) Mayor Yates called for a break at 6:45 p.m.; the meeting resumed at 7:00 p.m. E 3 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JUNE 28, 2011 B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION NO. 43-11 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Recreation & Parks Director Joe Woods stated at the May 10, 2011 City Council meeting, Council adopted Resolution No. 32-11 approving the Engineer's Report describing the annual maintenance to be completed at the Cloisters Park and Open Space, and declaring the City's intent to levy an annual assessment to finance this maintenance. The assessment, projected at $1,241.20 per assessable lot in the Cloisters subdivision, will be collected by the County Assessor. As part of the assessment process, the City ordered the preparation of an Engineer's report, adopted a resolution of intention to levy an assessment, set June 28, 2011 as the hearing date on the proposed levy of assessment, noticed all property owners on record via first class mail of the hearing and published the notice in the local newspaper. The City Council must hold a protest/public hearing before considering the levy of the annual assessment. Mr. Woods recommended the City Council hold a public hearing on the annual levy of assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District, and then adopt Resolution No. 43-11 confirming the levy of assessment for Fiscal Year 2011-12. ® Mayor Yates opened the hearing for public comment. Robert Bacon, resident of Cloisters, stated he shared pictures at a City Council meeting last year of the weeds throughout the parkway and park areas and it still looks the same this year. He said he does not object to paying the assessment, in fact it is a privilege to live by such a great park, which is a tourist attraction. Mr. Bacon objects to the lack of maintenance to the parkway and park areas. Dawn Beattie, resident of Cloisters, stated the Recreation & Parks Department has been very responsive to the residents' needs. She said the communications between staff and the residents has been a major improvement. Ms. Beattie stated the homeowners are supporting the assessment on a probationary approach for this year. Mayor Yates closed the hearing for public comment. Councilmember Borchard stated she walks through the Cloisters and has noticed the improvements. She said she hopes the residents have patience with the progress. Councilmember Johnson stated she agrees the Recreation & Parks Department has done a wonderful job in communicating with the residents and doing their best with limited funding. Councilmember Leage stated he agrees the Department is making improvements to the ® area, and hopes it continues throughout the year when it comes back for review next year. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JUNE 28, 2011 Councilmember Smukler stated it appears there have been strong communications with the residents. He said performance is going to be important for the neighborhood to be satisfied, and it will be exciting to identify long-range management plans for the development. Mayor Yates stated his history is to not be supportive of this assessment; however, based on the support of the residents, he will support the assessment this year. He said he will reassess his consideration of this assessment next year. MOTION: Councilmember Borchard moved the City Council adopt Resolution No. 43-11 .directing the levy of the Annual Assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) B-2 RESOLUTION NO. 44-11 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Recreation & Parks Director Joe Woods stated at the May 10, 2011 City Council ® meeting, Council adopted Resolution No. 32-11 approving the Engineer's Report describing the annual maintenance to be completed at the North Point Natural Area, and declaring the City's intent to levy an annual assessment to finance this maintenance. The assessment, projected at $564.50 per assessable lot in the North Point subdivision, will be collected by the County Assessor. As part of the assessment process, the City ordered the preparation of an Engineer's report, adopted a resolution of intention .to levy an assessment, set June 28, 2011 as the hearing date on the proposed levy of assessment, and finally, noticed all property owners on record via first class mail of the hearing, as well as published the notice in the local newspaper. The City Council must hold a protest/public hearing before considering the levy of the annual assessment. Mr. Woods recommended the City Council hold a public hearing on the annual levy of assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District and then adopt Resolution No. 44-11 confirming the levy of assessment for Fiscal Year 2011-12. Mayor Yates opened the hearing for public comment; there were no comments and Mayor Yates closed the hearing for public comment. MOTION: Councilmember Borchard moved the City Council adopt Resolution No. 44-11 directing the levy of the Annual Assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District. The motion was seconded by Councilmember Leage and carried unanimously. (5-0) 11 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JUNE 28, 2011 B-3 ADOPTION OF THE URBAN WATER MANAGEMENT PLAN 2010 UPDATE; (PUBLIC SERVICES) Utilities/Capital Projects Manager Dylan Wade stated in order to comply with the water code and other segments of state law, water utilities that serve more than 3000 customers or sell more than 3000 acre -feet -per -year of water are required to prepare an Urban Water Management Plan in years ending in 5 and 10. The City began preparing an update to the 2005 Urban Water Management Plan in the fall of 2010 and is bringing this document forward for public comment and Council adoption at this time. Mr. Wade stated there is a correction to page 24 of the Plan as follows: "The Morro Bay area experienced relatively high annual population growth of 7.1 percent between 1990 and 2000." He recommended the City Council review the 2010 Urban Water Management Plan update, propose any necessary amendments, and move for adoption with Resolution Number 46-11 as amended. Mayor Yates opened the hearing for public comment. John Barta stated this study shows how far the City has come within the last 20 years regarding water. He said the City has an adequate supply of water. Betty Winholtz requested this item be continued due to insufficient noticing as required ® in the Plan. She said as a renter she did not receive notice since she does not receive a water bill, as is true of 50% of the residents in the City. Ms. Winholtz also referred to numerous errors in the Urban Water Management Plan as follows: 1) page 2-1: expansion of the community limited by a hillside; 2) page 2-3: viable industrial base; 3) page 2-4: affordable multi -family housing units; 4) page 2A: population: 10,234; 5) Measure F — passed in 1984 due to a water issue; 6) page 2-9: climate average never over 70 degrees. Mayor Yates closed the hearing for public comment. MOTION: Mayor Yates moved the City Council adopt Resolution No. 46-11 approving the Urban Water Management Plan as amended by staff. The motion was seconded by Councilmember Borchard. Councilmember Smukler requested the motion include recognition of the risk of unplanned emergency interruptions to the State Water Project in the Plan. VOTE: The motion carried with Councilmember Smukler voting no. (4-1) C. UNFINISHED BUSINESS — NONE. El 3 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JUNE 28, 2011 D. NEW BUSINESS D-1 CONSIDERATION OF RESOLUTION NO. 42-11 AMENDING THE PARAMETERS FOR THE USE OF THE GENERAL FUND EMERGENCY RESERVE; (ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton stated Resolution No. 27-10 was enacted on May 24, 2010, and set the parameters for the General Fund Emergency Reserve Fund. Staff feels an additional comment needs to be added that recommends Council's annual review of excess reserves for programming/designating them for use in the upcoming year. Ms. Slayton recommended the City Council adopt Resolution No. 42-11 which amends Resolution No. 27-10 by adding the following language: "Amounts greater than the 27.5% target balance, or minimum of $2,750,000 (whichever is greater), will be programmed/designated by Council during the annual budget adoption process, at Council's discretion." MOTION: Councilmember Smukler moved the City Council adopt Resolution No. 42-11 which amends Resolution No. 27-10 by adding the following language: "Amounts greater than the 27.5% target balance, or minimum of $2,750,000 (whichever is greater), will be programmed/designated by ® Council during the annual budget adoption process, at Council's discretion." The motion was seconded by Councilmember Johnson. Councilmember Borchard requested Condition #4 be removed due to its redundancy; Councilmember Smukler stated he would prefer not to remove it. VOTE: The motion carried unanimously. (5-0) D-2 REPORT ON THE CAMBRIA VOLUNTARY COMMUNITY BUS PROGRAM; (COUNCIL) Councilmember Smukler stated that he along with Councilmember Borchard and City Manager Lueker met with the Cambria Bus Program volunteer coordinator in early June and discussed the program offered in Cambria. With the significant reduction of the transit programs, a community bus program may be a viable option, with volunteer support, to provide further transit opportunities to the senior and disabled community in the City. It was recommended the City Council discuss steps towards implementing a volunteer- run Community Bus Program for the City of Morro Bay. Council consensus was in support to move forward with the implementation of a volunteer -run Community Bus Program for the seniors and disabled citizens of the City of Morro Bay. ® No further action was taken on this item. 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NNE 28, 2011 Mayor Yates called for a break at 8:10 p.m.; the meeting resumed at 8:15 p.m. D-3 DISCUSSION AND ADOPTION OF THE PAVEMENT MANAGEMENT PLAN; (PUBLIC SERVICES) Public Services Director Rob Livick stated in order to effectively utilize the City's limited street maintenance budget, staff has prepared a Pavement Management Plan that outlines the steps needed to both rehabilitate and preserve the pavement condition of this valuable City asset. Currently the present value of the City's street system is approximately $40,000,000. Once adopted, the Pavement Management Plan will serve as the roadmap for future street maintenance. Mr. Livick noted an amendment to page 28 of the Pavement Management Plan as follows: "Following years are funded with general funds or Measure O funds as available. The actual level of funding will be allocated in each year's budget by City Council." He recommended the City Council review and adopts the Morro Bay Pavement Management Plan as amended. MOTION: Councilmember Smukler moved the City Council adopt the Pavement Management Plan as amended by staff. The motion was seconded by ® Councilmember Borchard and carried unanimously. (5-0) D4 DISCUSSION OF IMPROVEMENTS TO THE "ROCK" PARKING LOT, LOCATED AT THE END OF COLEMAN DRIVE, MORRO BAY; (PUBLIC SERVICES) Councilmember Leage stated the parking lot is in need of repair; however, the area needs a concept plan that would include paving the parking area, the addition of recreation areas, grassy areas to be used by families and tourists. He requested Council discuss the concept of improving this area and direct staff to move forward with a concept plan. Recreation & Parks Director Joe Woods discussed the concept plan for Coleman Park that could perhaps include a recreational use north of Coleman Drive. Public Services Director Rob Livick stated the Waterfront Master Plan, which was adopted by the City Council in May 1996, should also be reviewed by the Recreation & Parks Commission. Council directed staff to contact Cal Poly to consider this as a viable project/concept plan; and, return to Council for review of the concept plan for the Rock improvements that will interface with the existing concept plan for Coleman Park. 0 No further action was taken on this item. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2011 E. DECLARATION OF FUTURE AGENDA ITEMS — None. ADJOURNMENT The meeting adjourned at 9:35 p.m. Recorded by \,63 e } Bridgett Kessling City Clerk E C 0 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — TUESDAY, DUNE 14, 2011 CLOSED SESSION — TUESDAY, JUNE 14, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54957.6. CONFERENCE WITH LABOR NEGOTIATOR. Conference with City Manager, the City's Designated is Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. CS-2 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS: Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel. Property: Vacant Lot/Comer of Coral/San Jacinto. Negotiating Parties: Potential Buyers and City of Morro Bay. Negotiations: Voluntary Purchase and Sale. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. ® PUBLIC SESSION — TUESDAY, JUNE 14, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. ® • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. 11 • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 24 flours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. 2 ® A -I APPROVAL OF MINUTES FOR THE SPECIAL CITY COUNCIL MEETING OF MAY 24, 2011 AND THE REGULAR CITY COUNCIL MEETING OF MAY 24, 2011; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 39-11 CONTINUING THE FISCAL YEAR 2010/11 ANNUAL BUDGET; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 39-11. A-3 AUTHORIZATION TO FILE NOTICE OF COMPLETION FOR THE NORTH MAIN BIKE LANE AND STREET IMPROVEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Authorize staff to rile Notice of Completion for the North Main Bike Lane and Street Improvement Project. A4 RESOLUTION DETERMINING ISSUANCE OF AN ALCOHOLIC BEVERAGE CONTROL PERMIT FOR A WINE TASTING ROOM LOCATED AT 783 MARKET AVENUE; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 40-11. ® A-5 RESOLUTION DETERMINING ISSUANCE OF AN ALCOHOLIC BEVERAGE CONTROL PERMIT FOR VIRG'S LANDING INC. LOCATED AT 1169 MARKET AVENUE; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 41-11. A-6 PROCLAMATION RECOGNIZING THE 100TH ANNIVERSARY .OF INCORPORATION OF THE CITY OF ARROYO GRANDE AND COMMEMORATING THE CITY'S CENTENNIAL CELEBRATION; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 DISCUSSION ON THE VISITORS CENTER; PROPOSED MARKETING SPECIALIST, AND THE FISCAL YEAR 2011-2012 CONTRACT TO OPERATE THE VISITORS CENTER; (ADMINISTRATION) RECOMMENDATION: Retain the current management structure at the Visitors Center with recommended modifications. ® C. UNFINISHED BUSINESS — NONE. 3 ® D. NEW BUSINESS D-1 DISCUSSION ON PROPOSING A MORATORIUM ON THE PAYMENT OF DEVELOPMENT IMPACT FEES (ALSO REFERRED TO AS BUILDING IMPACT OR PUBLIC FACILITIES FEES AND SIGN PROGRAM PERMIT FEES); (PUBLIC SERVICES) RECOMMENDATION: Review options and direct staff accordingly. D-2 NORTH MAIN STREET COMMERCIAL PARKING AREA MAP AND DRAFT ORDINANCE CHANGE; (PUBLIC SERVICES) RECOMMENDATION: Review the draft boundary map and draft ordinance change and direct staff accordingly. D-3 RECOMMENDATION ON THE ALIGNMENT OF THE MORRO BAY/CAYUCOS BIKE PATH CONNECTOR; (RECREATION & PARKS) RECOMMENDATION: Forward a recommendation of the western alignment of the Morro Bay/Cayucos Bike Path Connector to the San Luis Obispo County Parks. ® E. DECLARATION OF FUTURE AGENDA ITEMS F. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET DURING NORMAL BUSINESS HOURS OR AT THE SCHEDULED MEETING. 0 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION —DUNE 14, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: CLOSED SESSION Andrea Lueker Robert Schultz Susan Slayton Jamie Boucher City Manager City Attorney Administrative Services Director Human Resources Analyst Mayor Yates adjourned the meeting to Closed Session and read the Closed Session Statement. CS-1 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH ® LABOR NEGOTIATOR. Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. CS-2 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS: Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel. Property: Vacant Lot/Comer of Coral/San Jacinto. Negotiating Parties: Potential Buyers and City of Morro Bay. Negotiations: Voluntary Purchase and Sale. The meeting adjourned at 5:40 p.m. 1 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:07 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker Robert Schultz Jamie Boucher Eric Endersby Rob Livick Tim Olivas Mike Pond Susan Slayton Kathleen Wold Joe Woods City Manager City Attorney Deputy City Clerk Harbor Operations Manager Public Services Director Police Chief Fire Chief Administrative Services Director Planning Manager Recreation & Parks Director ®. ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken on Item CS-l. The following action was taken on Item CS-2: Property: Vacant Lot/Comer of Coral/San Jacinto. Negotiating Parties: Potential Buyers and City of Morro Bay. Negotiations: Voluntary Purchase and Sale. The City Council took action to take this property off the real estate market. 11 PUBLIC COMMENT Denise Wilson, new owner of Blue Sky Coastal Cafe reviewed their menu which features locally grown produce; they open at 8 a.m., happy hour from 3-6 p.m., and offer live music on weekends. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2011 Jim Davis announced on Sunday, June 19'h from 3-5 p.m. there will be a skateboard event at Tidelands Park, with the Red Skunk Gypsy band performing afterwards; and, there will be a fundraiser for Ride -On Transportation for Veterans on August 7 s at The Lodge on Highway 41 with a barbeque and the Louie Ortega band performing. D'Onna Kennedy announced the Central Coast Veterans Support Group will be meeting on June 2 1 g at 6 p.m. at the Eagles Lodge on Main Street. John Weiss announced Eco-Rotary that helps the environment with zero -waste, recycling and making a good footprint for our children and grandchildren; he noted the charter would be on June 23 d at the golf course. He also announced they will be talking about Eco-Rotary and zero -waste on June I at the Morro Bay Business Forum. Stephanie Pipan, Morro Bay Police Officer, announced the K-9 Walk-a-thon will be held this Saturday, June 18'h starting at 10 a.m. at the Morro Rock parking lot. She stated funds raised from this benefit will go towards a Morro Bay Police K-9. John Barta referred to Item D-1 (Discussion on Proposing a Moratorium on the Payment ® of Development Impact Fees) stating these impact fees are substantial along with water and sewer impact fees and mandated standards; he suggested keeping these fees as low as possible. Mr. Barta also suggested not having a sprinkler ordinance and replacing it with a high tech fire alarm. He suggested the City perform a historical review of the impact fees. C Annette Neals, Manager of Walkers Mobile Home Park, referred to Item A-5 (Resolution Determining Issuance of an Alcoholic Beverage Control Permit for Virg's Landing Inc. Located at 1169 Market Avenue) and expressed concern with the hours this business will be open in a residential neighborhood; and, the type of liquor license they are requesting. Betty Winholtz expressed concern with the method of how parking and trolley signs came down on the Embarcadero. She also expressed concern with funds being expended recklessly for: 1) the new banners on the Embarcadero; 2) hiring a consultant for $300,000, and a lobbyist at $650/hour regarding the Wastewater Treatment Plant upgrade project; 3) the vote to do away with the Cloister's assessment district; and, 4) the discussion of a moratorium on the payment of development impact fees. Ms. Winholtz stated these costs means less services for the citizens and more taxes. Janice Peters complimented the Recreation & Parks Department on the new landscaping in front of the Community Center. She also announced a local production "Playhouse Creatures" will be held at the Pewter Plough in Cambria through July 23`d. N ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2011 Ms. Peters also noted the Community Promotions Committee and Tourism Business Improvement District Advisory Board will be holding a joint meeting on Thursday, June 16 starting at 8:30 a.m. in the Veterans Memorial Building and encouraged participation. Sharon Moore, owner of Virg's Landing, Inc., addressed Item A-5 stating last weekend was the first time they had a problem with noise, and they will resolve this issue. She said the ABC license is to sell a small amount (1.8% of the store sales) of beer to provide on the fishing boats. Rick Holiday, neighbor to Virg's Landing stated he can offer a parking lot to Virg's in the morning hours to help mitigate a possible noise problem. Mayor Yates closed the hearing for public comment. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are ® approved without discussion. A-1 APPROVAL OF MINUTES FOR THE SPECIAL CITY COUNCIL MEETING OF MAY 24, 2011 AND THE REGULAR CITY COUNCIL MEETING OF MAY 24, 2011; (ADMINISTRATION) C1 RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 39-11 CONTINUING THE FISCAL YEAR 2010/11 ANNUAL BUDGET; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 39-11. A-3 AUTHORIZATION TO FILE NOTICE OF COMPLETION FOR THE NORTH MAIN BIKE LANE AND STREET IMPROVEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Authorize staff to rile Notice of Completion for the North Main Bike Lane and Street Improvement Project. 4 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2011 A-4 RESOLUTION DETERMINING ISSUANCE OF AN ALCOHOLIC BEVERAGE CONTROL PERMIT FOR A WINE TASTING ROOM LOCATED AT 783 MARKET AVENUE; (CITY ATTORNEY) RECOMMENDATION:- Adopt Resolution No. 40-11. A-5 RESOLUTION DETERMINING ISSUANCE OF AN ALCOHOLIC BEVERAGE CONTROL PERMIT FOR VIRG'S LANDING INC. LOCATED AT 1169 MARKET AVENUE; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 41-11. A-6 PROCLAMATION RECOGNIZING THE 100TH ANNIVERSARY OF INCORPORATION OF THE CITY OF ARROYO GRANDE AND COMMEMORATING THE CITY'S CENTENNIAL CELEBRATION; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. ® Councilmember Borchard pulled Item A-3 from the Consent Calendar; and Mayor Yates pulled Item A-5. E MOTION: Councilmember Borchard moved the City Council approve the Consent Calendar with the exception of Items A-3 and A-5. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) A-3 AUTHORIZATION TO FILE NOTICE OF COMPLETION FOR THE NORTH MAIN BIKE LANE AND STREET IMPROVEMENT PROJECT; (PUBLIC SERVICES) Councilmember Borchard expressed displeasure for using Measure Q funds due to going over budget because of making changes that were not recognized when the original bid was made on this project. MOTION: Councilmember Borchard moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2011 A-5 RESOLUTION DETERMINING ISSUANCE OF AN ALCOHOLIC BEVERAGE CONTROL PERMIT FOR VIRG'S LANDING INC. LOCATED AT 1169 MARKET AVENUE; (CITY ATTORNEY) Councilmember Johnson stated she would be stepping down on this item due to a conflict of interest. Councilmember Leage stated he would be stepping down on this item due to a conflict of interest. MOTION: Councilmember Borchard moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Smukler and carried unanimously. (3-0-2) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 DISCUSSION ON THE VISITORS CENTER; PROPOSED MARKETING SPECIALIST, AND THE FISCAL YEAR 2011-2012 CONTRACT TO ® OPERATE THE VISITORS CENTER; (ADMINISTRATION) City Manager Andrea Lueker stated throughout the past months, the City Council has evaluated the Visitors Center, as well as provided direction for a number of changes to be made. The City is in a redefining position with a new marketing/advertising agency, Barnett Cox & Associates coming_ onboard to promote the Morro Bay experience. Barnett Cox & Associates is beginning work on a marketing plan which when finalized will provide clear direction to take in its efforts to enhance and.increase tourism, an important goal of the marketing strategy. In order for the City to realize its full potential, it is extremely important that the many different agencies and organizations in the City work collaboratively. With the changes the City Council has made and directed to be made with both the Visitors Center and the new marketing agency and marketing plan, accompanied by the Chamber of Commerce hiring a new Chamber CEO this year, staff believes the City is poised for an increase in tourism, better organization of our marketing efforts, initiation of strategic economic development, and enhancing agencies to foster a cooperative working relationship. Ms. Lueker made the following recommendations to the City Council: 1) Retain the current management structure at the Visitors Center with the following modifications: a. Hold a Partners/Stakeholders Workshop to develop and modify the marketing plan, identify goals and strategies and assign completion tasks; ® b. Hold a Partners/Stakeholder Workshop for the Visitors Center; c. Consider a Marketing Specialist position following the Workshops; 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2011 d. Determine specific measures of success for the Visitors Center; e. Conduct a six month review of the Visitors Center; f. Participate on the Economic Development Committee; g. Renew the Contract with the Chamber of Commerce for 2011/2012 to run the Visitors Center. 2) Add off -site, informational, visitors' kiosks. Mayor Yates opened the hearing for public comment. John Solu thanked the City for the change in the marketing advertising agency, and recommended the City Council approve the hiring of a tourism and promotions director. He said although occupancy and transient occupancy tax has been up recently, they have been behind their competitors in the County. Mr. Solu stated the recommended hours for the Chamber of Commerce need to be adjusted to meet the tourists' needs on the weekends. He said he wants to see the Chamber of Commerce survive, which it cannot do without the Visitor Center funds. Hank Roth recommended hiring someone to act as a coordinator to support the City's ® marketing plan. He said this would be someone who would meet the City's needs and has the experience to work within the City's structure to help move us towards our goal to bring more tourists to the City. Craig Schmidt, Chamber of Commerce CEO, stated the recommended strategic planning sessions is to develop a long-range marketing plan with a more narrow focus to discuss the role and effectiveness of the Visitors Center. He said the purpose of these workshops is to establish a roadmap for where the City needs to get to, and collaborate collectively with stakeholders in Morro Bay's tourism economy in developing this community's vision. John Weiss, Chamber of Commerce Board President, stated for the past 55 years the Chamber of Commerce has represented and promoted local businesses. They have accomplished their work cost effectively and do their best to be forthright and flexible. Mr. Weiss stated the Chamber Board applauds the City's suggestions to help them achieve their mission of promoting the community's economic vitality, quality of life and providing a united base for the community to advance and prosper. He said the Chamber is able to run the Visitors Center because they are able to offer the City more for their money by operating as a fulfillment center for City promotions, and able to staff the Visitor Center and market the City through events, print collateral, email blasts and social networking. Mr. Weiss stated this job could not be fulfilled by one marketing specialist. He noted Morro Bay is in a transitional time with a new marketing advertising agency, is budget considerations and opportunity for new marketing strategies. 7 1101 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2011 Mr. Weiss stated it is an opportune time to bring the stakeholders together and move ahead in one direction with experience and perseverance. Mick Theiss stated the first order of business is to be surrounded with competent people. He said there would be an incredible learning curve in hiring a marketing specialist to replace the Chamber CEO that could destroy the City's bottom line. Mr. Theiss suggested the City Council consider staffs report and recommendations and make a long-term decision. George Ross, consultant for the Chamber of Commerce stated it would be a disaster to pull the Chamber of Commerce away from the Visitors Center; they would not do well independently. He said the current events would not run as smoothly without the hard work of the Chamber staff. John Barta shared slides of billboards advertising the City noting this is a valuable asset with poor artwork, that are not being maintained and no one is taking responsibility. He said the City will not get good decisions from a committee in a workshop; he said the City needs a creative individual who will take responsibility. Gary Christianson, Vice-President/Treasurer of the Chamber of Commerce Board reviewed an estimate of what it would cost to run a stand-alone Visitor Center = $170,540. He stated the Chamber of Commerce CEO has only been on board for six months and needs time to implement the recommended changes previously made by the City. Janice Peters stated the City is in a state of flux right now with a new marketing advertising agency, a new Chamber of Commerce CEO, and the Tourism Business Improvement District Advisory Board that is now working. She said a workshop in this case is a good idea because there is such a diversity of people in the business community who don't communicate with each other. Ms. Peters stated there is a wealth of experience between the Community Promotions Committee and Tourism Business Improvement District Advisory Board along with the business community who can establish- direction through a workshop setting to enable the Council to determine the best marketing strategy for the City. Joan Solu requested the City Council look for new and innovative solutions to approach marketing and tourism by looking at a concept of hiring an outside neutral dynamic experienced tourism leader to sell the City the way it deserves to be sold. In order to do this, she asked Council to give the following tasks to the Tourism Business Improvement District Advisory Board and Community Promotions Committee: 1) examine and develop the job description and duties for the Director of Tourism; 2) examine funding is mechanisms to pay for time and direction of the new Director of Tourism or office; M ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2011 r 3) develop a reporting mechanism to ensure accountability and begin the hiring process by August 15, 2011; 4) move forward with granting the current contractor for a 90-day period while the Director of Tourism moves forward; 5) add a hiring freeze to the current contractor's events coordinator position; and 6) address the overall strategic vision for tourism in Morro Bay in a workshop setting. Mayor Yates closed the hearing for public comment. Mayor Yates requested staff take care of the weeds around the billboard on Highway 1. Councilmember Borchard stated -she is interested in a month -to -month contract with the Chamber of Commerce to operate the Visitors Center until all of the issues have been resolved. She said the kiosks are a good idea, but should be in addition to, not in lieu of, alternative sites for the Visitors Center. Councilmember Borchard stated the Economic Development Committee is a function of the Chamber and not the City. She said she is not interested in hiring a company to look at alternative locations for the Visitors Center; that is something that can be reviewed at the workshop. Councilmember Johnson stated she agrees with a month -to -month contract with the Chamber of Commerce to operate the Visitors Center until the issues have been resolved. She said she hopes to gain some innovative and clear idea of the role of the Chamber of Commerce. Councilmember Johnson stated all options and possibilities such as the location of the Visitors Center need to be considered at the workshop. Mayor Yates stated he goes into the Visitors Center every week and he finds the staff to be very busy talking with tourists and doing a fabulous job. He requested the Chamber Board review the hours of operation of the Visitors Center. Councilmember Leage stated alternative locations of the Visitors Center should be considered. He said he supports hiring a person in charge of promoting the City. Councilmember Smukler stated it is important to maintain flexibility at this time. He said he would prefer a 90-day agreement with the Chamber of Commerce, and a suspension of the hiring of the events coordinator position. Councilmember Smukler stated he would like to add hours of operation to the agreement restructuring the mid -week hours and adding weekend hours. He said prior to the workshop, he would like strong involvement from the Community Promotions Committee and Tourism Business Improvement District Advisory Boards in the structuring of the workshop. 0 ® N41NTUTES - MORRO BAY CITY COUNCIL REGULAR MEETING— JUNE 14, 2011 Councilmember Smukler stated he would like to develop a matrix that lists the stakeholders and the role/mission of each group; that way it would show a graphic that identifies the areas that need restructuring. He said he would like to have the discussion on the restructuring of the Community Promotions Committee/Tourism Business Improvement District Advisory Board as soon as possible. MOTION: Councilmember Borchard moved the City Council direct staff to draft a 90-day contract with the Chamber of Commerce to operate the Visitors Center beginning July 1, 2011; and, direct that part of the negotiations would be extended hours on the weekends. It was further moved that this contract be returned for Council approval at the June 28, 2011 City Council meeting. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) Councilmember Borchard stated she would like to explore information regarding locating a California Welcome Center in Morro Bay. Craig Schmidt, Chamber of Commerce CEO stated a California Welcome Center is being pursued and he will have information at the next City Council meeting. ® MOTION: Mayor Yates moved the City Council support the Community Promotions Committee and Tourism Business Improvement District Advisory Board to form a sub -committee to come up with a proposal for two workshops: 1) one workshop to develop and modify a marketing plan identifying goals and strategies; and 2) a workshop to review the Visitors Center. The sub- committee is further directed to return with their recommendations from the workshops to the City Council at the September 13, 2011 City Council meeting. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) Mayor Yates called for a break at 8:00 p.m.; the meeting resumed at 8:10 p.m. C. UNFINISHED BUSINESS — NONE. 11 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2011 D. NEW BUSINESS D-I DISCUSSION ON PROPOSING A MORATORIUM ON THE PAYMENT OF DEVELOPMENT IMPACT FEES (ALSO REFERRED TO AS BUILDING IMPACT OR PUBLIC FACILITIES FEES AND SIGN' PROGRAM PERMIT FEES), (PUBLIC SERVICES) Planning Manager Kathleen Wold stated at the December 13, 2010 City Council meeting, Councilmember Johnson proposed the idea of exploring different options regarding establishing a program to incentivize businesses within the City to improve their buildings without incurring City development impact fees within three specific areas of the City. The first area is Morro Bay Boulevard (downtown area) from the roundabout to Market Street; the second area is Main Street to the City limits; and the third area is Quintana Road. Reducing or waiving development impact fees could provide an economic incentive for businesses to consider improvements to buildings as impact fees can add a substantial amount of money onto the building permit fee. In addition to the moratorium on development impact fees, Councilmember Johnson also suggests a moratorium on fees associated with sign programs. This would provide incentive for business owners to reevaluate the businesses' sign program and consider improvements ® without additional City fees. Currently sign regulations have been under review by the City and one of the goals of this review has been to encourage businesses to utilize signs in a way that does not detract from the community as a whole. A moratorium on sign fees for sign programs would provide additional incentive for businesses to review their entire sign program and consider an entirely new sign program. Ms. Wold recommended the City Council weigh the benefits to the business community against the loss of revenue to determine if the benefits outweigh the costs and direct staff accordingly. Councilmember Smukler stated without knowing what the real intent and focus is he is not comfortable with moving forward with this in segments. He said he would prefer to identify the real strategy as a whole with all of the elements available. MOTION: Councilmember Borchard moved the City Council place a moratorium on development impact fees on commercial projects for the next three (3) years within the City bordered commercial areas. The motion was seconded by Councilmember Johnson and carried with Councilmember Smukler voting no. (4-1) u ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2011 D-2 NORTH MAIN STREET COMMERCIAL PARKING AREA MAP AND DRAFT ORDINANCE CHANGE; (PUBLIC SERVICES) Planning Manager Kathleen Wold stated at the December 13, 2010 City Council meeting, Councilmember Borchard requested that staff provide a report on the status of parking in the North Main Street area to include options for modifications or amendments to City requirements which would address buildings where the number of stalls is nonconforming to present day standards. At the February 8, 2011 meeting, staff presented a report which contained various options for Council to consider, and directed staff to prepare a boundary map and an exemption for Morro Bay Municipal Code Section 17.44.020(A),I which was presented to Council during this presentation. Ms. Wold recommended the City Council review the boundary map and draft ordinance change, and direct staff accordingly. MOTION: Councilmember Borchard moved the City Council approve the exemption to Morro Bay Municipal Code Section 17.44.020(A).l for Parking Facilities for North Main Street to read as per the staff report with the additional language: "to not include new construction or new additions." Is unanimously. motion was seconded by Councilmember Johnson and carried unanimously. (5-0) E D-3 RECOMI�4ENDATION ON THE ALIGNMENT OF THE MORRO .BAY/CAYUCOS BIKE PATH CONNECTOR; (RECREATION & PARKS) Recreation R Parks Director Joe Woods introduced Elizabeth Kavanaugh, Parks Planner for San Luis Obispo County Parks. Ms. Kavanaugh stated the Morro Bay to Cayucos Connector project is a multi -use trail that connects coastal communities of Morro Bay and Cayucos along Highway 1. This is a San Luis Obispo County Parks' project and County Parks requests the City Council review the Eastern and Western alignments of the Connector, and recommend one of the alignments to the County. The Morro Bay Parks and Recreation Commission reviewed these alignments on March 17, 2011 and recommends the Western alignment. Ms. Kavanaugh recommended the City Council discuss the Eastern and Western alignments of the Morro Bay/Cayucos Bike Path Connector, and make a recommendation to the San Luis Obispo County Parks. MOTION: Mayor Yates moved the City Council recommend the Western Alignment of the Morro Bay/Cayucos Bike Path Connector to the San Luis Obispo County Parks. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) 12 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2011 E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Johnson requested to agendize a discussion on developing a Business Improvement Program that would include.a Facade Improvement Program; Council concurred. Councilmember Smukler requested to agendize a report on the Cambria Voluntary Bus Program on the next City Council agenda; Council concurred. ADJOURNMENT The meeting adjourned at 9:41 p.m. Recorded by: oq4w�, {. Jamie Boucher Deputy City Clerk E 13 ® 0 City of Morro Bay Morro Bay, CA 93442 nop" (805) 772-6200 NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Tuesday, May 24, 2011 at 5:00 P.M. to be held at the Veterans' Memorial Building, 209 Surf Street, Morro Bay, California. The City Council will be conducting interviews to fill vacancies on the Planning Commission, Public Works Advisory Board, and Community Promotions Committee. ® The City Council will adjourn to its regular City Council meeting at 6:00 p.m. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. DATED: {} May �19, 2011 Bridgett ssling, gity Clerlo FINANCE ADMINISTRATION FIRE DEPT. PUBLIC SERVICES ® 595 Harbor Street 595 Harbor Street 715 Harbor Street 955 Shasta Avenue HARBOR DEPT. CITY ATTORNEY POLICE DEPT. RECREATION & PARKS 1275 Embarcadero Road 595 Harbor Street 870 Morro Bav Boulevard 1001 Kennedy Way MINUTES — MORRO BAY CITY COUNCIL SPECIAL MEETING —MAY 24, 2011 ® VETERANS MEMORIAL BUILDING - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m. PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney INTERVIEW OF APPLICANTS The City Council interviewed the following applicants for the Planning Commission vacancy expiring 01-31-13: Jessica Napier and William Welles. The City Council voted by ballot and City Manager Andrea Lueker read the following results: Jessica Napier (3 votes — Borchard, Johnson, Smukler) William Welles (2 votes — Leage, Yates) ® The City Council interviewed the following applicants for the Public Works Advisory Board vacancies: Ron Burkhart, William Olson, Stephen Shively, and Robert Swain. The City Council voted by ballot and City Manager Andrea Lueker read the following results: Ron Burkhart (5 votes — Borchard, Johnson, Leage, Smukler, Yates) William Olson (5 votes — Borchard, Johnson, Leage, Smukler, Yates) Stephen Shively (3 votes — Borchard, Johnson, Yates) Robert Swain (2 votes — Leage, Smukler) Mr. Burkhart was given the term expiring 01/31/15; Mr. Olson was given the term expiring 01/31/13; and, Mr. Shively was given the term expiring 01/31/12. The City Council interviewed the following applicants for the Community Promotions Committee vacancy expiring 01/31/15: Liz Bednorz and Amit Patel. The City Council voted by ballot and City Manager Andrea Lueker read the following results: Liz Bednorz (1 vote — Smukler) Amit Patel (4 votes - Borchard, Johnson, Leage, Yates) 0 ADJOURNMENT - The meeting adjourned to the regular City Council meeting at 6:20 p.m. ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING - TUESDAY, MAY 24, 2011 CLOSED SESSION - TUESDAY, MAY, 2011 CITY HALL CONFERENCE ROOM - 4:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54957.6: CONFERENCE WITH LABOR NEGOTIATOR. Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. ® CS-2 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of teal property as to three (3) parcels: • Property: Embarcadero Grill - Lease Site 86-86W Negotiating Parties: Caldwell and City of Morro Bay. Negotiations: Sub Lease Terms and Conditions. Property: Lease Site 65-66/65W-66W, 571 Embarcadero, Negotiating Parties: Imani and City of Morro Bay. Negotiations: Lease Terms and Conditions. Property: Sea One Solutions; Lease Site 124-128/124W-128W and 113W, 1215 Embarcadero. Negotiating Parties: Sea One Solutions, LLC and City of Morro Bay. Negotiations: Lease Terms and Conditions. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. THE CITY COUNCIL WILL ADJOURN TO A SPECIAL OPEN SESSION MEETING TO HOLD INTERVIEWS TO FILL VACANCIES ON THE CITY'S PLANNING COMMISSION, PUBLIC WORKS ADVISORY BOARD AND COMMUNITY ® PROMOTIONS COMMITTEE. THE INTERVIEWS WILL TAKE PLACE BEGINNING AT 5:00 P.M. AND WILL BE LOCATED AT THE VETERANS' MEMORIAL BUILDING, 209 SURF STREET, MORRO BAY, CA PUBLIC SESSION — TUESDAY, MAY 24, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. ® 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT.OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, ® profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF MAY 10, 2011; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF CONTRACT WITH BARNETT COX & ASSOCIATES FOR ® ADVERTISING AND MARKETING SERVICES; (CITY ATTORNEY) RECOMMENDATION: Approve and authorize the Mayor to execute the contract. A-3 RESOLUTION NO. 35-I1 AUTHORIZING SAN LUIS OBISPO COUNTY ASSESSOR TO ASSESS AMOUNTS DUE ON DELINQUENT SOLID WASTE COLLECTION ACCOUNTS AS TAX LIENS AGAINST THE PROPERTIES; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 35-11. A4 ADOPTION OF ORDINANCE NO. 567 REPEALING, AMENDING AND REENACTING CHAPTER 14.48 OF THE CITY OF MORRO BAY MUNICIPAL CODE, ENTITLED ILLICIT DISCHARGE AND STORMWATER MANAGEMENT CONTROL; (PUBLIC SERVICES) RECOMMENDATION: Adopt Ordinance No. 567. A-5 RESOLUTION AUTHORIZING MONTHLY PAYMENT OPTION FOR EMBARCADERO LEASEHOLDERS; (HARBOR) RECOMMENDATION: Adopt Resolution No. 37-11. ® A-6 RESOLUTION AUTHORIZING EXECUTION OF THE "DESIGNATION OF APPLICANT'S AGENT RESOLUTION FOR NON -STATE AGENCIES" FOR THE CITY'S APPLICATION FOR CALIFORNIA DISASTER ASSISTANCE ACT PROGRAM; (HARBOR) 11 RECOMMENDATION: Adopt Resolution No. 38-11. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 REVIEW OF DRAFT SIGN ORDINANCE AND CONSIDERATION OF ADOPTION OF INTERIM URGENCY ORDINANCE ESTABLISHING RULES REGULATING THE APPROVAL PROCESS AND CONSTRUCTION OF PROJECTING SIGNS PENDING COMPLETION OF STUDIES AND THE. PREPARATION OF AN UPDATE TO THE CITY'S ZONING CODE; (CITY ATTORNEY) RECOMMENDATION: Review and discuss the draft Sign Ordinance, open the public hearing, and then adopt Interim Urgency Ordinance No. 568 which would establish interim rules regulating the approval process and construction of projecting signs pending completion of studies and the preparation of an update to the City's zoning code. 3 B-2 REVIEW AND ADOPTION OF A REVISED TEEN CENTER MASTER PLAN; (RECREATION & PARKS) ® RECOMMENDATION: Review and discuss the proposed options for the Teen Center Master Plan and adopt either Option Five.or Six based on public input and consensus. u C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 RESOLUTION NO. 36-11 APPROVING A COOPERATION AGREEMENT BETWEEN THE COUNTY OF SAN' LUIS OBISPO AND THE CITY OF MORRO BAY FOR JOINT PARTICIPATION IN THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM, THE EMERGENCY SOLUTIONS GRANT PROGRAM, AND THE HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS PROGRAM FOR FISCAL YEARS 2012-2014; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 36-11. E. DECLARATION OF FUTURE AGENDA ITEMS F. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO. THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET DURING NORMAL BUSINESS HOURS OR AT THE SCHEDULED MEETING. 11 MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — MAY 24, 2011 ® CITY HALL CONFERENCE ROOM - 4:00 P.M. Mayor Yates called the meeting to order at 4:00 p.m. PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Smukler moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Leage and unanimously carried. (5-0) Mayor Yates read the Closed Session Statement. CS-1 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR. Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the ® terms and compensation paid to the City Employees and giving instructions to the Designated Representative. CS-2 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to three (3) parcels: • Property: Embarcadero Grill - Lease Site 86-86W Negotiating Parties: Caldwell and City of Morro Bay. Negotiations: Sub Lease Terms and Conditions. • Property: Lease Site 65-66/65W-66W, 571 Embarcadero, Negotiating Parties: Imani and City of Morro Bay. Negotiations: Lease Terms and Conditions. • Property: Sea One Solutions; Lease Site 124-128/124W-128W and 113W, 1215 Embarcadero. Negotiating Parties: Sea One Solutions, LLC and City of Morro Bay. Negotiations: Lease Terms and Conditions. The meeting adjourned at 4:50 p.m. The City Council adjourned to a Special Open Session meeting to hold interviews to fill vacancies on the City's Planning Commission, Public Works Advisory Board and ® Community Promotions Committee. The interviews started at 5:00 p.m. and were located at the Veterans' Memorial Building, 209 Surf Street, Morro Bay, CA MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2011 ® VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:20 p.m. PRESENT: William Yates. Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Eric Endersby Rob Livick Tim Olivas Mike Pond Susan Slayton Joe Woods City Manager City Attorney City Clerk Harbor Operations Manager Public Services Director Police Chief Fire Chief Administrative Services Director Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE Is MAYOR OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session; no reportable action under the Brown Act was taken on Item CS-1. The following action was taken on Item CS-2: Property: Embarcadero Grill - Lease Site 86-86W Negotiating Parties: Caldwell and City of Morro Bay. Negotiations: Sub Lease Terms and Conditions. Councilmember Leage was excused from this discussion due to a conflict of interest; and, no action under the Brown Act was taken on Lease Site 86-86W. Property: Lease Site 65-66/65W-66W, 571 Embarcadero, Negotiating Parties: Imani and City of Morro Bay. Negotiations: Lease Terms and Conditions. • Property: Sea One Solutions; Lease Site 124-128/124W-128W and 113W, 1215 Embarcadero. Negotiating Parties: Sea One Solutions, LLC and City of Morro Bay. Negotiations: Lease Terms and Conditions. Action was taken to correct the administrative error under Section 2.04 (Percentage Rent) to bring the lease agreements in conformance with the Master Lease format for Lease ® Sites 65-66/65W-66W, and Lease Site 124-128/124W-128W and 113W. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MAY 24, 2011 C PUBLIC COMMENT Jeff Eckles, owner of Morro Bay House of Jerky, stated this is a new store on the Embarcadero which carries five different flavors of jerky, as well as a variety of other goods. Gary Hixson promoted the Gary (Tyler Moore) Hixson Show, and he supports having Film Commission in Morro Bay. Mr. Hixson spoke on various issues in the City. Dan Glesmann addressed an article in the Trihune regarding the budget woes in San Luis Obispo. He addressed Morro Bay's upcoming budget and requested the City Council get control of personnel costs and preserve the City's infrastructure. Stan Trapp thanked the City for its efforts in sprucing up the Embarcadero. He addressed Item A-5 (Resolution Authorizing Monthly Payment Option for Embarcadero Leaseholders) and expressed gratitude to staff for recommending monthly payments for leaseholders. Mr. Trapp also addressed Item B-1 (Consideration of Adoption of Interim Urgency Ordinance Establishing Rules Regulating the Approval Process and Construction of Projecting Signs Pending Completion of Studies and the Preparation of an Update to the City's Zoning Code) and supported the recommendation for approval of Ordinance No. 568 which will bring uniformity to the signs around the City. Nancy Castle thanked the City for its support of the Central Coast Maritime Museum Association for the display across from the Great American Fish Company which is a part of the history of Morro Bay. John Weiss discussed the Eco-Rotary Program where the goal is to recycle the food products and reduce the amount of water used at the three local golf courses in the county. He said there will be meetings every second and fourth Tuesdays at the Morro Bay Golf Course regarding this program. Virginia Hiramatsu announced Relay for Life of Morro Bay will be held on August 6 and 7, 2011 at Morro Bay High School. She said the funds raised at this event will stay to assist victims of cancer in Morro Bay. George Ross, CPA stated the pension liabilities in the City are the biggest concern and the two -tiered pension benefit is a good idea on reducing future pension liabilities. He said another hole in the City governance is the issuance of business licenses which needs to be enforced. Mr. Ross also stated another annoyance is the theft of recycling goods which could lead to identity theft. He also expressed the need to pursue compliance on the removal of A -frame signs. is u MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2011 Betty Winholtz addressed Item A-4 (Adoption of Ordinance No. 567 Repealing, Amending and Reenacting Chapter 14.48 of the City of Morro Bay Municipal Code, Entitled Illicit Discharge and Stormwater Management Control) stating there is not an educational component to this Ordinance, and there needs to be some directive to educate the public. She also noted although the improvements to the Embarcadero are nice, North Main Street also deserves the same improvements to attract customers to the businesses in this part of the City. Joan Solu addressed Council's future review on tourism and requested the City Council pay close attention to some of the suggestions, and noted there are several visitor -serving contracts. She said tourism brings in $70-80 million in business revenue annually to the City, and the City does not have a leader or strategy and needs a Director of Tourism. Ms. Solu stated the Morro Bay Tourism Business Improvement District would be happy to discuss paying an administrative fee in place of the Visitor Center contract. John Barta thanked the City for the removal of the news racks. He referred to Item A-4 and noted the City has no downstream communities that would be caused any harm from storm water pollution. Mr. Barta stated the City should be required to have small traps that will clean storm water discharge however anything larger than that is unnecessary. Brian Stacy requested the City consider providing assistance to fishermen by giving them an extension on slip rent during salmon season. Kim Vanerstrand, business owner on Main Street, expressed concern with the City's proposed signage regulations and how it may affect stores off the beaten path. Mayor Yates closed the hearing for public comment. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF MAY 10, 2011; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF CONTRACT WITH BARNETT COX & ASSOCIATES FOR ADVERTISING AND MARKETING SERVICES; (CITY ATTORNEY) RECOMMENDATION: Approve and authorize the Mayor to execute the ® contract. E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2011 A-3 RESOLUTION NO. 35-11 AUTHORIZING SAN LUIS OBISPO COUNTY ASSESSOR TO ASSESS AMOUNTS DUE ON DELINQUENT SOLID WASTE . COLLECTION ACCOUNTS AS TAX LIENS AGAINST THE PROPERTIES; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 35-11. A4 ADOPTION OF ORDINANCE NO. 567 REPEALING, AMENDING AND REENACTING CHAPTER 14.48 OF THE CITY OF MORRO BAY MUNICIPAL CODE, ENTITLED ILLICIT DISCHARGE AND STORMWATER MANAGEMENT CONTROL; (PUBLIC SERVICES) RECOMMENDATION: Adopt Ordinance No. 567. A-5 RESOLUTION AUTHORIZING MONTHLY PAYMENT OPTION FOR EMBARCADERO LEASEHOLDERS; (HARBOR) RECOMMENDATION: Adopt Resolution No. 37-11. A-6 RESOLUTION AUTHORIZING EXECUTION OF THE "DESIGNATION OF ® APPLICANT'S AGENT RESOLUTION FOR NON -STATE AGENCIES" FOR THE CITY'S APPLICATION FOR CALIFORNIA DISASTER ASSISTANCE ACT PROGRAM; (HARBOR) RECOMMENDATION: Adopt Resolution No. 38-11. Councilmember Leage pulled Item A-3 from the Consent Calendar; Councilmember Borchard pulled Item A-4. MOTION: Councilmember Borchard moved the City Council approve.the Consent Calendar with the exception of Items A-3 and A4. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) A-3 RESOLUTION NO. 35-11 AUTHORIZING SAN LUIS OBISPO COUNTY ASSESSOR TO ASSESS AMOUNTS DUE ON DELINQUENT SOLID WASTE COLLECTION ACCOUNTS AS TAX LIENS AGAINST THE PROPERTIES; (ADMINISTRATIVE SERVICES) Councilmember Leage asked if there is any other way to collect on a delinquent bill other than placing a lien against property. He said he would prefer another way of collecting on a bill, such as a collection agency rather than attaching the property; Mayor Yates agreed. 5 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2011 ® Administrative Services Director Susan Slayton responded garbage liens are placed only on homeowners based on the delinquency of the bill at the end of the year. She said the Garbage Company makes an effort to collect on the garbage bill and when the bill has been neglected for a long period of time, the Garbage Company has the ability to assess their collection through the property tax bill. Ms. Slayton stated the City receives a 2% administration fee for pursuing the assessment. MOTION: Councilmember Borchard moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Smukler and carried with Councilmember Leage and Mayor Yates voting. no. (3-2) A-4 ADOPTION OF ORDINANCE NO. 567 REPEALING, AMENDMIG AND REENACTING CHAPTER 14.48 OF THE CITY OF MORRO BAY MUNICIPAL CODE, ENTITLED ILLICIT DISCHARGE AND STORMWATER MANAGEMENT CONTROL; (PUBLIC SERVICES) Councilmember Borchard clarified from her statement at the last City Council meeting instead of "minimum rainfall requirements",. she meant "minimum required hydromodification and Low Impact Development Control measures allowed under the City's storm water permit requirements. ® MOTION: Councilmember Borchard moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Smukler and carried with Mayor Yates voting no. (4-1) 0 Mayor Yates called for a break at 7:22 p.m.; the meeting resumed at 7:37 p.m. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 REVIEW OF DRAFT SIGN ORDINANCE AND CONSIDERATION OF ADOPTION OF INTERIM URGENCY ORDINANCE ESTABLISHING RULES REGULATING THE APPROVAL PROCESS AND CONSTRUCTION OF PROJECTING SIGNS PENDING COMPLETION OF STUDIES AND THE PREPARATION OF AN UPDATE TO THE CITY'S ZONING CODE; (CITY ATTORNEY/PUBLIC SERVICES DIRECTOR) City Attorney Robert Schultz stated staff is beginning to enforce the A -Frame Sign regulations and there have been discussions regarding allowing "Projecting Signs" (commonly referred to as "Pub" signs) to replace A -frame signs. The purpose of this Ordinance is to allow for the issuance of sign permits for projecting signs. Mr. Schultz recommended the City Council adopt Interim Urgency Ordinance No. 568 which would establish interim rules regulating the approval process and construction of projecting signs pending completion of studies and the preparation of an update to the City's zoning code. 0 El MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2011 Mayor Yates opened the hearing for public comment. John Barta expressed support for the adoption of Interim Urgency Ordinance No. 568. Mayor Yates closed the hearing for public comment. MOTION: Mayor Yates moved the City Council adopt Interim Urgency Ordinance No. 568 which would establish interim rules regulating the approval process and construction of projecting signs pending completion of studies and the preparation of an update to the City's zoning code. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) City Manager Andrea Lueker read Interim Urgency Ordinance No. 568 by number and title only. Public Services Director Rob Livick stated the Draft Sign Ordinance is fundamentally the same ordinance approved within the Comprehensive Zoning Ordinance Update 2004; changes have been made to the Sign Ordinance to allow it to be integrated into the existing Ordinance. He said the current and proposed ordinance limits the amount of signage each building and/or business can permanently affix to a building as such a determination should be made if further changes need to be addressed to achieve the ® Council's goal as they pertain to projecting signs. Mr. Livick recommended the City Council review the Draft Ordinance and changes proposed by the Planning Commission and provide direction to staff regarding the final revised Sign Ordinance. Council agreed that more work is needed on this Draft Ordinance, and a workshop would be beneficial to receive input from the business community. Mayor Yates opened the hearing for public comment. John Barta stated years ago when he served on the Planning Commission, it took several years to develop the concept of the Sign Ordinance. He said he would be happy to share the PowerPoint presentation he has with the information from that time period. John Weiss, President of Chamber of Commerce, stated it is agreed that the business community would like to reduce clutter; the need of communicating what and where businesses are; the adoption of modest fees; and, it meets the needs of the business as well as City standards. He said a workshop is a great idea. Mayor Yates closed the hearing for public comment. Councilmember Smukler stated he would like a better dialogue with the Chamber of Commerce and other interest groups, and that they have an opportunity for input. 7 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2011 Councilmember Johnson made the following suggestions: 1) no A -frame signs anywhere in the City; 2) projecting public signs allowed in all parts of the City; 3) kiosks should be allowed at the corner of Beach and Front Street, along the waterfront and on the corners of Old Town; and 4) feather flags should be allowed in North Morro Bay and Quintana Road. She also noted signs on pick-up trucks should not be allowed and should be enforced. Mayor Yates stated he agrees there should be no A -frame signs allowed anywhere in town noting there are alternative signs. Councilmember Borchard stated she would like to exhaust the fact that there are areas that could have alternative signage before disallowing A -frame signs. She said she would like the Planning Commission PowerPoint presentation from 2004 be part of the workshop which could give Council alternative ideas. Councilmember Borchard requested Council consider the appointment of a Sign Review Board. Council directed staff to schedule a public workshop on the Draft Sign Ordinance within six months, or by the first meeting in November. No further action was taken on the Draft Sign Ordinance. ® B-2 REVIEW AND ADOPTION OF A REVISED TEEN CENTER MASTER PLAN; (RECREATION & PARKS) El Recreation & Parks Director Joe Woods stated the Teen Center Master Plan process started in 2004 with public workshops and concluded in 2006 with a City Council approved Concept Plan. Recent workshops have been held to not only update the Master Plan, but also to fulfill Proposition 84 requirements for public input. Staff held three workshops at the Teen Center in late February 2011. The Recreation & Parks Commission reviewed four resulting options and requested staff to develop additional options which combined two of the proposed. As a result, Options 5 and 6 are presented to City Council for consideration. At the conclusion of this process, staff will be submitting a grant application to the State Parks Department with the intent to obtain Proposition 84 funding. Mr. Woods recommended the City Council review and discuss the proposed options for the Teen Center Master Plan and adopt either Option 5 or 6 based on public input and consensus. Mayor Yates opened the hearing for public comment. Jake stated he has been going to the Teen Center for a few years and it has been a great experience, and he believes this upgrade will be beneficial for future teens. He said Option 6 would provide a lot of space for the community. 3 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2011 John Gutierrez, Program Director for Teen Center, stated this is a home away from home for a lot of teens. He said as part of the Teen Advisory Committee, there are teens that put a lot of time into this Master Plan: Mr. Gutierrez stated he prefers Option 6 generally as the better plan. Taylor Newton stated he mentors the Gorilla Gardening Club who is mostly teens who are excited about getting involved in the landscape portion of this plan as well as the skate park and fitness area. He stated he prefers Option 6 especially with the fitness center and internet access. Karen Croley, Recreation & Parks Commissioner, stated she prefers Option 6 which is more family -oriented with something for different age groups to do in a confined space. She said crime studies show that between 3:00 pm - 5:00 pm is when crime rates are highest because teens are home unsupervised with nothing to do. Mayor Yates closed the hearing for public comment. Councilmember Borchard stated she is adamant that this is a Youth Center with multi -age access and recognizing an area for teens. She expressed concern with the maintenance of the skate park area under the trees. Councilmember Borchard also has concern with the ® unprojected cost of this plan. Councilmember Johnson stated she prefers Option 6; however, she expressed concern with the placement of the modular skate park in the back and the concrete skate park in the front of the Center. She said she would like the climbing area to be opened to preteens. Councilmember Johnson stated she would like the Center to be renamed. because it is intimidating to,preteens. She also has concerns with the unprojected costs. Mayor Yates stated he supports approval of the Master Teen Center Plan (Option 6) as proposed; Councilmember Leage agreed. Councilmember Smukler stated he supports Option 6 because it gives a buffer from the neighboring property owner. He said he would like renewable energy and water recycling to be included in this plan. MOTION: Councilmember Smukler moved the City Council adopt Option 6 of the Master Teen Center Plan. The motion was seconded by Councilmember Borchard and carried with Councilmember Johnson voting no. (4-1) C. UNFINISHED BUSINESS — NONE. u W MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2011 D. NEW BUSINESS D-1 RESOLUTION NO. 36-11 APPROVING A COOPERATION AGREEMENT BETWEEN THE COUNTY OF SAN LUIS OBISPO AND THE CITY OF MORRO BAY FOR JOINT PARTICIPATION IN THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM, THE EMERGENCY SOLUTIONS GRANT PROGRAM AND THE HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS PROGRAM FOR FISCAL YEARS 2012-2014; (ADMINISTRATION) City Manager Andrea Lueker stated the City of Morro Bay has the opportunity to participate with other cities and the County of San Luis Obispo in qualifying as an "Urban County' for fiscal years ending 2012-2014. An Urban County receives annual, formal -based grants from the federal Department of Housing and Urban Development (HUD) under the Community Development Block Grant (CDBG), Home Investment Partnership Act (HOME) and Emergency Solutions Grants (ESG) programs. For the next 3-year cycle, staffs recommendation is that the City of Morro Bay joins the Urban County rather than apply for funds as an individual city. This recommendation is due to staff reallocations and budget reductions over the past few years. Staff believes this move will provide more funding overall to the City and its residents, than the City attempting to apply for funds as an individual City. If the City decides to become part of the Urban County, the City will receive its CDBG allocation through the county. The estimated ® amount of the CDGB funding is $87,000 - 100,000. Ms. Lueker recommended the City Council adopt Resolution No. 36-11 approving a Cooperation Agreement between the County of San Luis Obispo and the City of Morro Bay for Joint Participation in the Community Development Block Grant Program, the Emergency Solutions Grant Program, and the Housing Opportunities for Persons with Aids Program for Fiscal Years 2012-2014. MOTION: Councilmember Leage, moved the City Council adopt Resolution No. 36- 11 approving a Cooperation Agreement between the County of San Luis Obispo and the City of Morro Bay for Joint Participation in the Community Development Block Grant Program, the Emergency Solutions Grant Program, and the Housing Opportunities for Persons with Aids Program for Fiscal Years 2012-2014. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) E. DECLARATION OF FUTURE AGENDA ITEMS — NONE. ADJOURNMENT - The meeting adjourned at 9:19 P.M. Recorded by: BridgettKessling ® City Clerk 10 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — TUESDAY, MAY 10, 2011 CLOSED SESSION — TUESDAY, MAY 10, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54957.6: CONFERENCE WITH LABOR ® NEGOTIATOR. Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. I] PUBLIC SESSION — TUESDAY, MAY 10, 2011 ® VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or ® staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETINGS OF APRIL 12, 2011 AND APRIL 26, 201 l; (ADMINISTRATION) 0 RECOMMENDATION: Approve as submitted. 2 A-2 UPDATE ON CURRENT LEGISLATIVE BILLS PENDING IN SACRAMENTO AND REPORT ON CALIFORNIA LEGISLATIVE ACTION ® DAYS; (CITY ATTORNEY) RECOMMENDATION: Review the report, and if there are any pending Legislative Bills that are of interest or concern, discuss them with the City Attorney. A-3 ACCEPTANCE OF OFFERS OF DEDICATION FOR PROJECTS LOCATED AT 962 PINEY WAY (ST. TIMOTHY'S) AND 1478 QUINTANA ROAD (ROCK HARBOR CHRISTIAN FELLOWSHIP); (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 34-11 accepting the Offer of Dedication for public pedestrian easement purposes for 962 Piney Way; and, adopt Resolution No. 31-11 for Right of Way and Utility Easement purposes for 1478 Quintana Road. A-4 AWARD OF MARKETING CONTRACT TO BARNETT COX; (ADMINISTRATION) RECOMMENDATION: This item has been pulled from the agenda. A-5 PROCLAMATION DECLARING MAY 2011 AS "NATIONAL DROWNING PREVENTION MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. ® A-6 PROCLAMATION DECLARING THE WEEK OF MAY 15 — 21, 2011 AS "POLICE WEEK"; (POLICE) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 REQUEST FOR APPROVAL TO CONSTRUCT A 23-UNIT COMMUNITY HOUSING PROJECT WITH EXCEPTIONS AND ASSOCIATED ENVIRONMENTAL DOCUMENTS LOCATED AT 2400 MAIN STREET (UPO- 086, CPO-I.30, SOO-048); (PUBLIC SERVICES) RECOMMENDATION: Conditionally approve Tentative Subdivision Map (S00-048), Use Permit (UFO-086) and Coastal Development Permit (CPO-130) subject to the findings contained in Exhibit A and the Conditions of Approval in Exhibit B. B-2 INTRODUCTION AND FIRST READING OF ORDINANCE NO. 567 REPEALING, AMENDING AND REENACTING CHAPTER 14.48 OF THE CITY OF MORRO BAY MUNICIPAL CODE, ENTITLED ILLICIT DISCHARGE AND STORMWATER MANAGEMENT CONTROL; (PUBLIC SERVICES) ® RECOMMENDATION: Approve the introduction and first reading of Ordinance No. 567 by number and title only. 3 B-3 RESOLUTION NO. 25-11 DECLARING THE INTENTION TO CONTINUE THE ® PROGRAM AND ASSESSMENTS FOR THE 2011/12 FISCAL YEAR FOR THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Conduct a public hearing, record testimony for/against the continuation of the Morro Bay Tourism Business Improvement District, and adopt/reject/amend Resolution No. 25-11. B-4 RESOLUTION APPROVING THE ENGINEERS REPORT AND DECLARING THE INTENT TO LEVY THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT, (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 32-11 declaring the intent to levy the annual assessment for the maintenance of the Cloisters Park and Open Space and approving the Engineers Report. B-5 RESOLUTION APPROVING THE ENGINEERS REPORT AND DECLARING THE INTENT TO LEVY THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIG14TING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 33-11 declaring the intent to levy the ® annual assessment for the maintenance of the North Point Natural Area and approving the Engineers Report. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 DRAFT SIGN ORDINANCE; (PUBLIC SERVICES) RECOMMENDATION: Review Draft Ordinance and changes proposed by the Planning Commission and provide direction to staff regarding the final Revised Sign Ordinance. E. DECLARATION OF FUTURE AGENDA ITEMS ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO ® BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION —MAY 10, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Johnson moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Borchard and unanimously carried. (5-0) Mayor Yates read the Closed Session Statement. ® CS-1 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR. Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. The meeting adjourned to Closed Session at 5:00 p.m. and returned .to regular session at 5:40 p.m. MOTION: Councilmember Borchard moved the meeting be adjourned. The motion was seconded by Councilmember Leage and unanimously carried. (5-0) The meeting adjourned at 5:40 p.m. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 10, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the -meeting to order at 6:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker . City Manager Robert Schultz City Attorney Bridgett Kessling City Clerk Damaris Hanson Engineering Technician III Susan Lichtenbaum Harbor Business Manager Rob Livick Public Services Director Tim Olivas Police Chief Mike Pond Fire Chief Kathleen Wold Planning Manager Joe Woods Recreation & Parks Director ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken: 11 PUBLIC COMMENT Bob Gayle, Met Life Bank, reviewed the. reverse mortgage home loans that are offered by Met Life Bank. Christine Johnson, President of Friends of the Library, announced an Open House at the Morro Bay Wine Cellar on May 13`s which 20% of the proceeds for that evening go towards the library; and, a library book sale which will be held at the Community Center on May 14a'. John Solu demonstrated how different boards and organizations in Morro Bay tend to promote tourism in various ways and said it needs to be redirected. He also reviewed fees that are paid by the Morro Bay Tourism Business Improvement District. Pj ® MINUTES - MORRO. BAY CITY COUNCIL REGULAR MEETING — MAY 10, 2011 Gary Hixon announced his shows that air on a local television channel, and that he will be performing in some local plays. Bill Martony referred to the Navy off-loading facility property on Zanzibar Street and noted the City did have correspondence on file with the U.S. Government regarding this property. Barry Branin stated the JPA meeting agenda for Thursday, May 12`s is on the website CWWMB.INFO "Citizens for a More Affordable Waste Water Treatment Plant in Morro Bay." He said this website is a place where people can share ideas on this issue. David Nelson referred to the initiative on the power plant as well as the 2010 initiative regarding the ban on medical marijuana dispensaries in Morro Bay. He said Council's action at the April 26 s meeting regarding medical marijuana dispensaries went against the majority vote of the citizens in Morro Bay and was an embarrassment of the democratic process. John Weiss referred to Item D-I (Draft Sign Ordinance) stating there may be some need for outreach, and he hopes Council will work with the businesses in the City regarding this ® issue. El Betty Winholtz asked when Council will be reviewing the fiscal year budget; she's interested in the Harbor budget especially with the recent improvements on the Embarcadero. She addressed Item D-1 and expressed concern that there was a meeting held without public notice to discuss this issue. Ms. Winholtz referred to new generators being installed at the power plant, and asked if a permit from the City was issued and what impact will this have on the outfall lease. John Barta addressed Item D-1 stating the Planning Commission spent several years reviewing the City's Sign Ordinance in great detail prior to 2004. He requested Council acknowledge the different districts in the City which have various signage needs. Liz Bednorz, Beach House Bistro, addressed Item D-I and requested Council considers the different signage needs of the businesses in various parts of the City. Andreas Model, Pedals and Paddles, announced he opened a new store in Morro Bay that carries bikes and kayaks. Garry Johnson expressed concern over the negative publicity received by a Councilmember for not attending a recent JPA meeting but instead going to Washington DC and meeting with City representatives. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MAY 10, 2011 Barbara Doerr addressed Item D-1 and stated although she does not like sandwich board signs, sometimes they are needed to promote business. Susan Stewart gave an update on the Community Promotions Committee, including: the transition with the new advertising agency, review of the Community Promotions, Committee By -Laws, consideration of working with a film commission, and streamlining the process with the Tourism Business Improvement District Advisory Board. Mayor Yates closed the hearing for public comment. Mayor Yates called for a break at 6:52 p.m.; the meeting resumed at 7:05 p.m. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETINGS OF APRIL 12, 2011 AND APRIL 26, 2011; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. A-2 UPDATE ON CURRENT LEGISLATIVE BILLS PENDING IN SACRAMENTO AND REPORT ON CALIFORNIA LEGISLATIVE ACTION DAYS; (CITY ATTORNEY) RECOMMENDATION: Review the report, and if there are any pending Legislative Bills that are of interest or concern, discuss them with the City Attorney. A-3 ACCEPTANCE OF OFFERS OF DEDICATION FOR PROJECTS LOCATED AT 962 PINEY WAY (ST. TIMOTHY'S) AND 1478 QUINTANA ROAD (ROCK HARBOR CHRISTIAN FELLOWSHIP); (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 34-11 accepting the Offer of Dedication for public pedestrian easement purposes for 962 Piney Way; and, adopt Resolution No. 31-11 for Right of Way and Utility Easement purposes for 1478 Quintana Road. I, ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MAY 10, 2011 A4 AWARD OF MARKETING CONTRACT TO BARNETT COX; (ADMINISTRATION) RECOMMENDATION: This item has been pulled from the agenda. A-5 PROCLAMATION DECLARING MAY 2011 AS "NATIONAL DROWNING PREVENTION MONTH'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-6 PROCLAMATION DECLARING THE WEEK OF MAY 15 — 21, 2011 AS "POLICE WEEK"; (POLICE) RECOMMENDATION: Adopt Proclamation. Councilmember Borchard pulled Item A-1 from the Consent Calendar. MOTION: Councilmember Borchard moved the City Council approve the Consent is Calendar with the exception of Item A-1. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) 1 A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETINGS OF APRIL 12, 2011 AND APRIL 26, 2011; (ADMINISTRATION) Councilmember Borchard requested a correction to the minutes of April 26, 2011, page 7 as follows: MOTION: Councilmember Smukler moved the City Council direct staff to initiate an amendment to the zoning ordinance that will give a better management policy for location of the potential medicinal marijuana dispensaries. The motion was seconded by Councilmember Berehard Johnson: Mayor Yates stated he will not support this motion. VOTE: The motion failed with Councilmember Borchard Johnsen, Councilmember Leage and Mayor Yates voting no. (2-3) MOTION: Councilmember Borchard moved the City Council approve Item A-1 of the Consent Calendar as amended. The motion was seconded by Mayor Yates and carried unanimously. (5-0) 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MAY 10, 2011 B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 REQUEST FOR APPROVAL TO CONSTRUCT A 23-UNIT COMMUNITY HOUSING PROJECT WITH EXCEPTIONS AND ASSOCIATED ENVIRONMENTAL DOCUMENTS LOCATED AT 2400 MAIN STREET (UPO- 086, CPO-130, SOO-048); (PUBLIC SERVICES) Planning Manager Kathleen Wold stated the project consists of the construction of a 23-unit community housing project on individual lots clustered in seven groups and one lot for common access, landscaping and general common area. The proposed project seeks exceptions for the following: interior yard setbacks between units, lot coverage, lot size, reduced open space, reduced parking and the commercial requirement for mixed -use (commercial/residential) area "F". The proposal includes the provision of 2.3 units of affordable housing to meet the City's inclusionary requirements with two affordable units at the moderate rate and the .3 unit to be provided via the City's in -lieu fee program. As designed, the proposed residential. development requires multiple exceptions to City standards including by not limited to elimination of commercial uses, reduced common open space, zero -setbacks between units, reduction of parking stalls below the minimum requirement. Ms. Wold recommended the City Council conditionally approve the Tentative ® Subdivision Map (SOO-048), Use Permit (UPO-086) and Coastal Development Permit (CPO-130) subject to the Findings contained in the Exhibits and Conditions of Approval provided in the staff report. Cathy Novak, representing the applicant, stated this project is zoned MCR/R-4 with the North Main Street Specific Plan Overlay; which means a project can be a mixed commercial residential or high density residential project. The project proposes a zero lot line concept, and the townhouse design will have a small air space between units and ownership of the ground below. The project as proposed has a total of 24 lots. There are 23 individual lots that vary in size from 925 sq. ft. to approximately 2,500 sq. ft. and the 24`s lot is the access and common open area. The Compact In -Fill Development requires a minimum of 1,500 sq. ft. while the Community Housing does not specifically address this. The project design has the ability to eliminate the 24`s lot and by doing so, each lot would then meet the standard (this would create the need for multiple easements for access and maintenance and would become very difficult for each of the owners.) The project has been designed with roofline variations and open space between the building clusters. There are no regulations that protect private views but, there are codes in place to protect public views in the scenic areas. The parking requirements for the Community Housing and the Compact In -Fill Development are different. Under the Community Housing standard the project as modified by the Planning Commission has 9 more spaces on -site than required. Under the Compact In -Fill Development standard, the project is 3 spaces short of the requirement. The applicant agrees with the Planning Commission and believes there is adequate parking on -site to accommodate the units. The code requires a 50% commercial ® component; there are regulations and policies that allow for an exception to this standard. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 10, 2011 Ms. Novak stated as an incentive to provide affordable housing, the Council may grant an exception to the standard. There are General Plan and Housing Element Policies that support a 1001/6 residential project. She said the North Main Street Specific Plan states, more than once in the document, that "The MCR Zone allows retail and service commercial uses, mixed commercial and residential or exclusive residential use". Ms. Novak noted the traffic; parking and visual impact on a project with 50% commercial would be more significant than 100% residential. She requested Council look at the overall objectives and intent of the General Plan, Housing Element and other City policies. Ms. Novak stated the community is benefiting from this project in many ways and therefore the exceptions the applicant is requesting are reasonable and should be supported as designed and reiterated it is impossible for.a project such as this to meet the City codes without requesting any exceptions. She noted the applicant is supportive of the project conditions as recommended by the Planning Commission and requested the City Council's support. Mayor Yates opened the hearing for public comment. Liz Bednorz expressed concern with this proposed housing project stating this part of town is getting overly congested with compact housing. She asked why approve to build more ® housing when there are already so many houses on the market for sale. David Nelson stated this proposed project has many deficiencies in City policies. He said this is a commercially -zoned lot which a hotel could be built that would collect transient occupancy tax for the City. Mr. Nelson stated this proposed project is going to create a congested ugly neighborhood. Conrad Michel stated he submitted a petition to the Planning Commission in opposition to this proposed project, which was also submitted to the City Council along with an addendum. He said a proposed project has to be compatible and blend in with the neighborhood which this project does not. Mr. Michel requested the City Council overturn this project. Betty Winholtz requested clarification on the abandonment on a portion of Main Street. She asked if the 25-foot height limit was based on natural grade. Ms Winholtz asked what the purpose of the retaining wall was, and where and how high would the wall be. She said this project does not meet City General Plan and Local Coastal Plan codes. Ms. Winholtz stated in order to be business friendly this property should remain a commercially -zoned property. Mayor Yates closed the hearing for public comment. E 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 10, 2011 Councilmember Smukler stated there are a lot of concessions being given to this applicant with not a lot of guarantees being returned. He said he does not like giving away the commercial usage of this lot which is located on a very scenic and visible area of Highway One and Main Street. He also expressed concern with the public transportation component. Councilmember Smukler stated in order to make this a viable project he would like to place conditions such as addressing resource efficiencies with water retrofitting the toilets and . irrigation systems; and increase the number of affordable units. Councilmember Leage stated there are projects needed in this part of North Morro Bay. He said he would like to see some changes made to this project, noting there are too many units being proposed. Councilmember Leage stated this property should either be all commercial or all residential use. Mayor Yates stated he does not support mixed -use commercial/residential zoning in this location, and noted the residential use would be appropriate. Councilmember Johnson stated she would like to see North Morro Bay become a walk -able community. She said the use of public transportation is important and there should be a ® bus stop with a covered bench and trash can near this location. Councilmember Johnson stated infill development is better than building up on the beautiful green His within the City. She said the one -bedroom units should be built within one year, and those funds should go into the City's Affordable Housing In -Lieu Fund. l Councilmember Borchard stated commercial uses have struggled to stay viable in the recent economy. She said she would rather place the funds from the smaller units into the City's Affordable Housing In -Lieu Fund, which could assist with low-income housing in the future. Councilmember Borchard stated she would prefer the project offer 2.5 units in value of affordable housing to go into the fund. She said she would like pavers to be used in the common area. Councilmember Borchard stated she supports a residential project in this area. Mayor Yates called for a break at 8:41 p.m.; the meeting resumed at 8:57 p.m. Councilmember Leage stated he would like the proposed retaining wall on Bonita Street to be made more aesthetically pleasing, reduce the amount of units and add more parking. Councilmember Smukler stated conditions need to be made on the density of this project by reducing the size of some of the units that will increase parking and open space of the project. E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 10, 2011 Councilmember Johnson stated she would support a reduction in square footage of the larger units by a specific amount. She would also support giving the applicant the option of paying 2.5% towards affordable housing or deed restricting the two affordable housing units: Mayor Yates stated the parking spaces should go with the property or it should be the equivalent of guest parking. He said he agrees the retaining wall on Bonita Street should be reconfigured to be more appealing to the neighborhood. Councilmember Borchard stated by reducing the square footage of the four larger units would add three more parking spaces. MOTION: Councilmember Borchard moved the City Council approve the construction of a 23-unit community housing project with exceptions and associated environmental documents located at 2400 Main Street, Tentative Subdivision Map (SOO-048), Use Permit (UPO-086) and Coastal Development Permit (CPO- 130). with the additional conditions: 1) type of landscape and fagade ® articulation on the Bonita Street side of the project; 2) add an additional three (3) parking spaces of approximately 600 square feet and approximately 600 square feet of additional open space ; 3) the affordable housing units to be 2.5, either two (2) units on -site at moderate rate and half (5) of a unit paid into the City's Affordable Housing In -Lieu Fund, or the option of the developer to pay the 2.5 into the Affordable Housing In -Lieu Fund; and, 4) the project would be built no later than one (1) year from the date of the first Certificate of Occupancy of the housing project. The motion was seconded by Councilmember Johnson. El Councilmember Smukler requested a condition be added addressing public transportation. Councilmember Borchard amended her motion to include a larger bike rack on -site; Councilmember Johnson amended her seconded. VOTE: The motion carried with Councilmember Leage and Councilmember Smukler voting no. (3-2) 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 10, 2011 B-2 INTRODUCTION AND FIRST READING OF ORDINANCE NO. 567 REPEALING, AMENDING AND REENACTING CHAPTER 14.48 OF THE CITY OF MORRO BAY MUNICIPAL CODE, ENTITLED ILLICIT DISCHARGE AND STORMWATER MANAGEMENT CONTROL, (PUBLIC SERVICES) Public Services Director Rob Livick stated the National Pollutant Discharge Elimination System (NPDES) permit for Stormwater discharges requires the City to adopt an ordinance prohibiting illicit discharges with enforcement provisions. The ordinance is required to include provisions for non-stormwater illicit discharges, animal wastes and stormwater management control. Since the City's adopted Stormwater Management Plan was adopted by the City Council and permitted by the Water Board on February 17, 2009, the City has been implementing the Stormwater Management Plan. One of the implementing measures required in the Stormwater Management Plan is the Illicit Discharge Ordinance. Mr. Livick recommended the City Council approve the introduction and first reading of Ordinance No. 567 entitled Illicit Discharge and Stormwater Management Control by number and title only. ® Mayor Yates opened the hearing for public comment. John Barta stated the City is required to pass an ordinance, but it is not required to pass this Ordinance. He reviewed regulations for different areas noting it is only necessary for Morro Bay to meet the minimum requirements. He said this Ordinance will create a problem for future development in the City. Mayor Yates closed the hearing for public comment. MOTION: Councilmember Johnson moved the City Council approve the introduction and first reading of Ordinance No. 567 entitled Illicit Discharge and Stormwater Management Control by number and title only. The motion was seconded by Councilmember Smukler. Councilmember Borchard requested the motion include the amendment that .the engineering standards meet the minimum rainfall requirements. Councilmember Johnson accepted the amendment to her motion; Councilmember Smukler accepted the amendment to his second. VOTE: The motion carried with Councilmember Leage and Mayor Yates voting no. (3-2) 0 City Manager Andrea Lueker read Ordinance No. 567 by number and title only. lul ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MAY 10, 2011 B-3 RESOLUTION NO. 25-11 DECLARING THE INTENTION TO CONTINUE THE PROGRAM AND ASSESSMENTS FOR THE 2011/12 FISCAL YEAR FOR THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT; (ADMINISTRATIVE SERVICES) City Manager Andrea Lueker stated State law requires the City Council to annually renew business improvement districts and receive annual reports for each fiscal year; those reports were provided to Council at the April 12`h Council meeting. Ms. Lueker recommended the City Council hold the public hearing to receive testimony for and/or against the renewal of the Morro Bay Tourism Business Improvement District, then adopt, reject or amend Resolution No. 25-11 as appropriate. Mayor Yates opened the hearing for public comment; there were no comments, and Mayor Yates closed the hearing for public comment. MOTION: Councilmember Borchard moved the City Council adopt Resolution No. 25- ® 11 declaring the Intention to Continue the Program and Assessments for the 2011/12 Fiscal Year for the Morro Bay Tourism Business Improvement District. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) B-4 RESOLUTION APPROVING THE ENGINEERS REPORT AND DECLARING THE INTENT TO LEVY THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Recreation & Parks Director Joe Woods on April 12, 2011, the City Council adopted Resolution No. 28-11, which initiated the proceedings to levy the annual assessment to fund the maintenance of the Cloisters Park and Open Space. Additionally, staff was directed to have an Engineer's Report prepared, detailing the estimated annual assessment for the parcel owners for fiscal year 2011/12. Upon adoption of Resolution No. 32-11, the next and final step in the annual levy of assessment process is the protest hearing/public hearing after which the City Council actually orders the levy of assessment. Mr. Woods recommended the City Council adopt Resolution No. 32-11 declaring the intent to levy the annual assessment for the maintenance of the Cloisters Park and Open Space and approving the Engineers Report. Mayor Yates opened the hearing for public comment. Robert Bacon showed pictures of landscaping in Cloisters Park and Open Space noting ® weeds shown in 2010 are still there in 2011. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MAY 10, 2011 Dawn Beattie stated the homeowners would like to have a meeting with staff regarding the assessment prior to it being levied. Mayor Yates closed the hearing for public comment. Mayor Yates stated after receiving numerous complaints from residents and driving through the Cloisters to view the Park and Open Space, he is going to stop supporting this assessment. He noted this decision is made after many years of receiving the same complaints and he has lost patience with this assessment. Mayor Yates stated he is not in favor of this type of assessment in general because he does not pay an assessment for the use of parks throughout the City. Councilmember Smukler stated the Recreation & Parks Department has had to make some changes due to depleted resources and an increase in costs. He said there are going to be higher costs due to the age of the landscape and to maintain the quality of the area. MOTION: Councilmember Smukler moved the City Council adopt Resolution No. 32-11 ® declaring the intent to levy the annual assessment for the maintenance of the Cloisters. Park and Open Space and approving the Engineers Report. The motion was seconded by Councilmember Borchard. VOTE: The motion failed with Councilmember Johnson, Councilmember Leage and Mayor Yates voting no. (2-3) Council discussed the ramification of the motion. City Attorney Robert Schultz recommended the City Council approve Resolution No. 32-11; give staff 30 days to meet with homeowners of Cloisters to discuss the needs of the assessment district; and, consider giving staff six months with perhaps a six month extension before eliminating the assessment district. Mayor Yates reiterated staff has 30 days before the final assessment comes before Council, and must show some evidence to gain his support. MOTION: Mayor Yates moved the City Council reconsider the Resolution Approving the Engineers Report and Declaring the Intent to Levy the Annual Assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District. The motion was seconded by Councilmember Leage and carried unanimously. (5-0) 12 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MAY 10, 2011 MOTION: Councilmember Smukler moved the City Council adopt Resolution No. 32-11 declaring the intent to levy the annual assessment for the maintenance of the Cloisters Park and Open Space and approving the Engineers Report; and, direct staff to move forward with communications with the homeowners of Cloisters to develop priorities and plans for the maintenance of this assessment district. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) B-5 RESOLUTION APPROVING THE ENGINEERS REPORT AND DECLARING THE INTENT TO LEVY THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Recreation & Parks Director Joe Woods stated on April 12, 2011, the City Council adopted Resolution No. 29-11, which initiated the proceedings to levy the annual assessment to fund the maintenance of the North Point Natural Area. Additionally, staff was directed to have an Engineer's Report prepared, detailing the estimated annual assessment for the parcel owners for fiscal year 2011/12. Upon adoption of Resolution No. 33-11, the next ® and final step in the annual levy of assessment process is the protest hearing/public hearing after which the City Council actually orders the levy of assessment. Mr. Woods recommended the City Council adopt Resolution No. 33-11 declaring the intent to levy the annual assessment for the maintenance of the North Point Natural Area and approving the Engineers Report. Mayor Yates opened the hearing for public comment. Taylor Newton stated as a landscaper there are inefficiencies in the landscape scheme at the North Point Natural Area. Mayor Yates closed the hearing for public comment. MOTION: Mayor Yates moved the City Council adopt Resolution No. 33-11 declaring the intent to levy the annual assessment for the maintenance of the North Point Natural Area and approving the Engineers Report. The motion was seconded by Councilmember Leage and carried unanimously. (5-0) C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 DRAFT SIGN ORDINANCE, (PUBLIC SERVICES) ® This item was continued to the May 24, 2011 City Council meeting as a public hearing. 13 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 10, 2011 E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Smukler requested to agendize a discussion on the toilet retrofit program; Council concurred. ADJOURNMENT The meeting adjourned at 10:28 p.m. Recorded by: Bridgett Kessling City Clerk n El 14 ® City of Morro Bay City Council Agenda Afcssion Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — TUESDAY, APRIL 26, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS ® CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. ® • Your participation in City Council meetings is welcome and your courtesy will be appreciated. ® In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 QUARTERLY FINANCIAL STATUS REPORT FOR THE FISCAL YEAR ENDED MARCH 31, 2011; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Accept the report as presented. A-2 RECIPROCAL AGREEMENT TO PARTICIPATE IN THE FRANCHISE TAX BOARD'S CITY BUSINESS TAX PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 30-11 reaffirming the City's participation in the Franchise Tax Board City Business Tax Program. A-3 PROCLAMATION DECLARING MAY 2011 AS "BIKE MONTH" AND is (ADMINISTRATION) 16 TO MAY 20, 2011 AS "BIKE TO WORK AND SCHOOL WEEK"; (ADMINISTRATION) u RECOMA'IENDATION: Adopt Proclamation. A-4 PROCLAMATION DECLARING MAY 2011 AS "NATIONAL TOURISM MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I CONSIDERATION OF AN AMENDMENT TO MORRO BAY MUNICIPAL CODE TITLE 5 ADDING CHAPTER 5.50 ESTABLISHING REGULATIONS AND PROCEDURES ENTITLED "MEDICAL MARIJUANA COLLECTIVES AND COOPERATIVES'; (CITY ATTORNEY) RECOMMENDATION: Open for public testimony; review, and direct stab accordingly. C. UNFINISHED BUSINESS ra ® D. NEW BUSINESS D-1 ENFORCEMENT OF REGULATIONS PROHIBITING A -FRAME SIGNS; (CITY COUNCIL) RECOMMENDATION: Immediate enforcement of Morro Bay Municipal Code Section 17.68.030 prohibiting A -frame signs and rescinding the A -frame sign exception. D-2 ANNUAL REVIEW OF HARBOR LEASE SITE BUSINESSES; (HARBOR) RECOMMENDATION: Consider the annual review of Harbor Lease Site Businesses. D-3 DISCUSSION OF A BIKE RACKS WITH DEDICATION PLAQUES PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Discuss a Bike Rack with Commemorative Plaque Dedication, and provide direction to staff. E. DECLARATION OF FUTURE AGENDA ITEMS F. ADJOURNMENT ® THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIDUE SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. Ci MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. 3 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 26, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Eric Endersby Susan Lichtenbaum Rob Livick Tim Olivas Mike Pond Susan Slayton Joe Woods City Manager City Attorney City Clerk . Harbor Operations Manager Harbor Business Manager Public Services Director Police Chief Fire Chief Administrative Services Director Recreation & Parks Director ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT — there was no Closed Session agenda. PUBLIC COMMENT Craig Schmidt, Morro Bay Chamber of Commerce, announced the Morro Bay Kite Festival will be held this coming weekend, April 30`s — May 1`. He also announced May is designated as National Tourism Month. Cathy Weaver, owner of Undercover Shop, stated her store is located at 895 Embarcadero and invited everyone to come see her shop. Andrea Klipfel announced Relay for Life will be held on August 61s and 7s at Morro Bay High School; an informational/team captain meeting will be held on May 10t° at 6:00 p.m. at the Embarcadero Grill. She noted at this time there are 12 teams that have signed up to participate. Garry Johnson stated there will be two professional photographers available at the Chamber of Commerce to show people how to take pictures of kites at the Kite Festival. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 26, 2011 Stan Trapp expressed support for Item D-1 (Enforcement of Regulations Prohibiting A - frame Signs) stating the A -frame signs have become pollutants on the Embarcadero, and he thanked Council for considering the alternative of pub signs which are more appealing and effective. Bill Shewcheck addressed Item D-1 stating he counted 39 A -frame signs on the Embarcadero and 22 in North Morro Bay. He said being in an upper level store, there is no other way to attract customers into a business. Mr. Shewcheck stated he followed City policy for his sign but did not receive a permit. Bill Martony referred to the 10-acre surplus property on Yerba Buena Street and recommended the City consider this property for the City's Wastewater Treatment Plant. Gay Skivalaskis, representing San Luis Obispo County Regional Ride Share, expressed appreciation for Council's consideration of Item A-3 (Proclamation Declaring May 2011 as "Bike Month" and May 16 to May 20, 2011 as "Bike to Work and School Week"). She reviewed activities and workshops that will take place during the month of May to celebrate "Bike Month." ® Amy Burton stated Del Mar Elementary School will be celebrating Bike Week and encouraging students to ride their bikes to school during that week; they will also be entering the Morro Bay 4a' of July Bike Parade. She said biking provides benefits for the individual as well as a positive impact on the City as a whole. John Diodati stated due to action taken by Council on April 12, 2011, he is resigning his position on the Planning Commission immediately. Barry Brannon announced a website labeled www.cwwmb.info regarding Citizens for an Affordable Wastewater Treatment Plant for Morro Bay; this website will allow for citizens input. Liz Bednorz, owner of Beach House Bistro, referred to Item D-1 and expressed the importance of A -frame signs in North Morro Bay and requested Council's consideration of these businesses when reviewing this item. Christopher Rocci suggested placing a board in front of buildings with several businesses listing each business in place of A -frame signs. Laura Rapsinski, owner of Harbor Floral, referred to Item D-1 and said A -frame signs are an inexpensive way to advertise. ® Allen Rackov referred to Item D-1 and said his business is in a location that is hard to find and it is important to have an A -frame sign to direct customers to his business. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 26, 2011 Ken Vesterfelt stated the first Emergency Vehicle Show was a great success. He announced the Cruisin' Morro Bay Car Show will be held May 6-8'h. He referred to Item D-1 stating A -frame signs are blight in the City. Tracy Neil Shewcheck of Virg's Landing, referred to Item D-1 and said A -frame signs are sometimes necessary to direct customers to businesses. Susan Stewart stated business owners are concerned with promoting their businesses and should be given alternatives regarding signage. Mayor Yates closed the hearing for public comment. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 QUARTERLY FINANCIAL STATUS REPORT FOR THE FISCAL YEAR is ENDED MARCH 31, 2011; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Accept the report as presented. A-2 RECIPROCAL AGREEMENT TO PARTICIPATE IN THE FRANCHISE TAX BOARD'S CITY BUSINESS TAX PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 30-11 reaffirming the City's participation in the Franchise Tax Board City Business Tax Program. A-3 PROCLAMATION DECLARING MAY 2011 AS `BIKE MONTH" AND MAY 16 TO MAY 20, 2011 AS "BIKE TO WORK AND SCHOOL WEEK"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-4 PROCLAMATION DECLARING MAY 2011 AS "NATIONAL TOURISM MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember Borchard pulled Item A-1 from the Consent Calendar. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 26, 2011 MOTION: Councilmember Johnson moved the City Council approve the Consent Calendar with the exception of Item A-1. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) A-] QUARTERLY FINANCIAL STATUS REPORT FOR THE FISCAL YEAR ENDED MARCH 31, 2011; (ADMINISTRATIVE SERVICES) Councilmember Borchard requested clarification relating to issues on transit, Measure Q funds and risk management. Administrative Services Director Susan Slayton responded to Councilmember Borchard's questions. MOTION: Councilmember Borchard moved the City Council approve Item A-1 of the Consent Calendar. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) Mayor Yates called for a break at 6:55 p.m.; the meeting resumed at 7:10 p.m. ® B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 CONSIDERATION OF AN AMENDMENT TO MORRO BAY MUNICIPAL CODE TITLE 5 ADDING CHAPTER 5.50. ESTABLISHING REGULATIONS AND PROCEDURES ENTITLED "MEDICAL MARIJUANA COLLECTIVES AND COOPERATIVES'; (CITY ATTORNEY) City Attorney Robert Schultz stated at the March 8, 2011 Council meeting, the entire Council was concerned with the recently elected SLO County Sheriff's position on medical marijuana enforcement and the longstanding inconsistencies between state and federal law. The SLO County Sheriff's Department is still in the process of developing their position in regard to medical marijuana enforcement and is also preparing new guidelines. The draft ordinance attempts to best suit the scale of Morro Bay by providing the possibility of two medical marijuana dispensaries under specific circumstances and a detailed permitting process. Mr. Schultz recommended the City Council review the draft ordinance and directs the City Attorney on how to proceed. Mayor Yates opened the hearing for public comment. Ken Vesterfelt requested the City does its homework regarding regulations on this issue 0 E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 26, 2011 Rich Donald - Chairman of Americans for Safe Access of San Luis Obispo County, stated the proposed ordinance puts all responsibility to justify the safety and legal compliance of a dispensary on the applicant; it is then reviewed and accepted or rejected by the City Council. He said the Council should consider the vote of the people by moving forward and approving the first reading and introduction of this ordinance. John Stephens — Go Green Compassionate Care Collective in Grover Beach, stated he would like to open a Go Green Caf6 in Morro Bay that creates holistic healing where cannabis comes into play. Catherine Ford - San Luis Obispo, stated she is a medical marijuana cardholder, and explained that due to injuries sustained in an accident, she use to take several prescription drugs that caused side affects; now she uses medical marijuana which has eliminated those side effects. She said she would like to be able to purchase medical marijuana legally, and Santa Barbara is the closest dispensary at this time. Lauren Stephens — Go Green Compassionate Care Collective in Grover Beach, stated it is important to be able to provide this service to those who are in need of a natural medical remedy. Bill Martony asked for clarification on the selection process and location for a business that may produce a large amount of money. Brandon Morris — Santa Barbara, stated dispensaries are required to be non-profit organizations. He quoted citations relating to the legality of medical marijuana dispensaries. Mr. Morris stated the City is within the State of California and should follow state law. Rick Morris — Fresno, stated the proposed ordinance should include regulations for preparation of edible cannabis product, as well as delivery services and doctor verifications. He said he would like the inspection of dispensaries to be taken away from public safety and have it inspected by public health. Roger Ewing — Morro Bay, noted the majority of speakers on this issue are from out of town. He stated it was the citizens that made this happen and Morro Bay demonstrates their commitment to compassion and caring for their fellow citizens. Mr. Ewing stated it is easy to regulate the implementation of this ordinance to the point where it takes forever to receive the benefits of medical marijuana vs. the toxicity of pharmaceutical drugs. Mike Mudget — Fresno, stated those from out of town are bringing their experience to Morro Bay. 9 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 26, 2011 Pete Weir - Grover Beach, requested the City allow safe access to a medical marijuana dispensary by approving this ordinance. Wanda Durick — Morro Bay, reviewed an experience that she and her husband witnessed from outside the previous dispensary that was obviously from someone purchasing marijuana that was not for medicinal purposes. Taylor Newton — Morro Bay, expressed the importance of acknowledging people's "rights" on issues such as medical marijuana. Jim Pauley — Morro Bay, stated as a citizen of Morro Bay he is opposed to marijuana being sold in Morro Bay. Curt Ashman — San Clemente, stated the City is being very forward thinking with the consideration of this issue. He said the City Attorney has done a thorough job on this ordinance. Michael Durick — Morro Bay, stated the voters of Morro Bay voted against a ban of a ® medical marijuana dispensary, but not for a medical marijuana dispensary. He also referred to the number of out -of --town speakers vs. Morro Bay speakers who addressed Council on this issue. Mr. Durick stated it is the City Council's responsibility to protect its citizens, and to uphold the Constitution of the United States. He said Council is dealing with the distribution of a Schedule 1 illegal narcotic under federal law. Mr. Durick stated he would have no problem if this drug was prescribed by a doctor and issued by a legitimate pharmacist at a pharmacy, but not at a dispensary. Eli Compast — Morro Bay, stated there appears to be a fear of abuse in bringing a medical marijuana dispensary in town. He said misinformation is the biggest problem and people need to educate themselves on the benefits of this drug. Mayor Yates closed the public comment hearing. Mayor Yates stated the people voted not to ban dispensaries in Morro Bay, and based on that he will vote in support of this ordinance. He said he will not support a medical marijuana dispensary being placed on the main corner of the downtown area, and expressed concern with the location of these dispensaries. MOTION: Councilmember Leage moved the City Council forbid any medical marijuana dispensaries to be placed in the City of Morro Bay. The motion died for lack of a second. r1 U R MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 26, 2011 Councilmember Borchard referred to the staff report that states: "Under current federal law however, the use, sale or possession of marijuana, whether medically prescribed or not, is still unlawful and carries significant criminal penalties." She said she is not supportive of this ordinance. Councilmember Smukler stated the goal in Morro Bay is safe access. He said the best option is to follow the ordinance prepared by the City Attorney, fine tune it along the process, and pursue the zoning amendment. Councilmember Johnson stated the people voted to not ban dispensaries and she agrees that the best option is to follow the ordinance prepared by the City Attorney, fine tune it along the process, and pursue the zoning amendment. MOTION: Councilmember Smukler moved the City Council direct staff to initiate an amendment to the zoning ordinance that will give a better management policy for location of the potential medicinal marijuana dispensaries. The motion was seconded by Councilmember Johnson. ® Mayor Yates stated he will not support this motion. VOTE: The motion failed with Councilmember Borchard, Councilmember Leage and Mayor Yates voting no. (2-3) MOTION: Mayor Yates moved the City Council approve the proposed Ordinance and bring it back for introduction and first reading. The motion died for lack of a second. MOTION: Mayor Yates moved the City Council discontinue further consideration of medical marijuana dispensaries in Morro Bay. The motion was seconded by Councilmember Borchard and carried with Mayor Yates and Councilmember Smukler voting no. (3-2) Mayor Yates called for a break at 8:30 p.m.; the meeting resumed at 8:50 p.m. C. UNFINISHED BUSINESS — None. 7 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 26, 2011 D. NEW BUSINESS D-1 ENFORCEMENT OF REGULATIONS PROHIBITING A -FRAME SIGNS; (CITY COUNCIL) Mayor Yates stated A -frame signs in Morro Bay, particularly on the Embarcadero, have become a visual blight, an impediment to pedestrian traffic, and are counter to Council's on -going efforts to clean up the waterfront. Although it may be controversial with some business owners, prohibition of these signs is a business friendly move. Mayor Yates presented photographs of pub signs, which are small signs that overhang the sidewalk, as an alternative to the A -frame sign. He noted pub signs keep the sidewalk clear while allowing businesses to promote their business. Mayor Yates recommended the City Council consider immediate enforcement of Morro Bay Municipal Code Section 17.68.030 prohibiting A -frame signs and rescinding the A -frame sign exception. Council discussed the A -frame signs located throughout the City; and reviewed alternative signs, such as pub signs that will attract customers. MOTION: Councilmember Borchard moved the City Council approve enforcement of Morro Bay Municipal Code Section 17.68.030 prohibiting A -frame signs and rescinding the A -frame sign exception with a 30-day time limit. The motion was seconded by Mayor Yates. Councilmember Smukler stated he will not support this motion because more thought needs to be given to the North Main Street businesses. VOTE: The motion carried with Council member Smukler voting no. (4-1) D-2 ANNUAL REVIEW OF HARBOR LEASE SITE BUSINESSES; (HARBOR) Harbor Business Manager Sue Lichtenbaum stated the City manages the Tidelands Granted properties on the west side of the Embarcadero under lease agreements. The leases are made in accordance with State Tidelands policies. Following the severe recession that started in 2008, the City has taken action on two separate occasions aimed at supporting businesses and preventing vacancies on the Embarcadero Lease Sites. Ms. Lichtenbaum recommended the City Council consider the annual review of Harbor Lease Site businesses and to consider implementation of a monthly rental payment for Harbor Lease Sites for the next two fiscal years. 9 ® MOTION: Mayor Yates moved the City Council direct the Harbor Business Manager I� bring back a resolution implementing a monthly rental payment to the City for Harbor Lease Sites with a 10% penalty after ten (10) days late with provisions for default. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) 11 C� D-3 DISCUSSION OF A BIKE RACKS WITH DEDICATION PLAQUES PROGRAM; (PUBLIC SERVICES) Public Services Director Rob Livick stated this proposed program can provide needed short- term bicycle parking. As proposed, the donors would pay for the rack, plaque, installation and maintenance for a powder -coating of the rack in the future, and donations are tax deductible. The donation of racks would be subject to the City's donation policies. Bike rack locations within the public right-of-way or on City property will need to be approved by City staff prior to installation to insure that the rack does not interfere with pedestrian traffic or parking. Mr. Livick recommended the City Council discuss the proposed Bike Racks with Dedication Plaques Program, and direct staff accordingly. MOTION: Councilmember Smukler moved the City Council direct staff to implement the Bike Racks with Dedication Plaques Program as proposed. The motion was seconded by Councilmember Leage and carried unanimously. (5-0) E. DECLARATION OF FUTURE AGENDA ITEMS — None. ADJOURNMENT The meeting adjourned at 9:50 p.m. Recorded by: :� Bridgett eessfing City Clerk • City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — TUESDAY, APRIL 12, 2011 CLOSED SESSION — TUESDAY, APRIL 12, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY ® TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to 1 parcel. Pro e : 5 acre vacant lot at end of Chorro Creek Road Negotiating Parties: Wakefield and City of Morro Bay. Negotiations: Lease Terms and Conditions. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. PUBLIC SESSION — TUESDAY, APRIL 12, 2011 ® VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any ® individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-] APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING ® OF MARCH 22, 2011; (ADMINISTRATION) 2 ® RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF RESOLUTION AUTHORIZING THE CITY OF MORRO BAY TO ENTER INTO VESSEL PUMPOUT INSTALLATION GRANT CONTRACT WITH THE DEPARTMENT OF BOATING AND WATERWAYS; (HARBOR) RECOMMENDATION: Adopt Resolution 24-11 authorizing execution of grant contract agreement. A-3 PROCLAMATION DECLARING APRIL 10-16, 2011 AS "CHILDHOOD CANCER AWARENESS WEEK" RECOMMENDATION: Adopt Proclamation. A-4 ADOPTION OF RESOLUTION NO. 26-11 APPROVING A ONE-YEAR LICENSE AGREEMENT WITH LIMO AND COURTNEY LONG, DOING BUSINESS AS SOUTH BAY HOOKERS; (HARBOR) RECOMMENDATION: Adopt Resolution 26-11 approving one-year lease agreement. ® A-5 ANNUAL REPORTING ON THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT AND SCHEDULING OF A PUBLIC HEARING; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Council to acknowledge receipt of the annual report and budgets, and set the date for the public hearing for the renewal of the MBTBID on April 26, 2011, and the adoption of Resolution No. 25-11 A-6 APPROVAL OF VEHICLE TRANSFER FROM THE POLICE DEPARTMENT TO THEPUBLIC SERVICES DEPARTMENT AND ASSOCIATED FUND TRANSFER; (POLICE) RECOMMENDATION: Approve vehicle transfer between the Police Department and the Public Services Department. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I APPEAL OF PLANNING COMMISSION'S DECISION ON MARCH 2, 2011 TO DENY THE APPEAL OF THE REMOVAL AND REPLACEMENT OF 8 TREES LOCATED IN THE CITY RIGHT OF WAY; (PUBLIC SERVICES) RECOMMENDATION: Deny appeal of the removal and replacement of 8 trees. 3 ® B-2 RESOLUTION NO. 28-11 INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE CLOISTERS PARK AND OPEN SPACE LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) �J RECOMMENDATION: Adopt Resolution 28-11 ordering the preparation of the Engineers Report detailing expenses for the maintenance of the Cloisters Park and Open Space. B-3 RESOLUTION NO. 29-11 INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING . MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution 29-11 ordering the preparation of the Engineers Report detailing expenses for the maintenance of the North Point Natural Area. B4 REQUEST FOR A USE PERMIT TO ALLOW INSTALLATION OF A DOCK SYSTEM AND ASSOCIATED FACILITIES AT LEASE SITES 105.1W/105.2W LOCATED AT 1001 FRONT STREET; (PUBLIC SERVICES) RECOMMENDATION: Approval of CUP #UPO-284 and the adoption of the Mitigated Negative Declaration for project construction at 1001 Front Street. B-5 RECOMMENDATION ON THE FUTURE OF THE VISITORS CENTER, INCLUDING DISCUSSION ON A MARKETING SPECIALIST, AND THE COMBINING OF THE COMMUNITY PROMOTIONS COMMITTEE (CPC) AND THE TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID); (ADMINISTRATION) RECOMMENDATION: Discuss and approve staff's recommendations for the Visitors Center as well as the possible combination of the CPC and TBID Committees. C. UNFINISHED BUSINESS - NONE D. NEW BUSINESS D-1 APPROVAL OF THE SERVICE RETIREMENT INCENTIVE PROGRAM FOR FISCAL YEAR 2011/12 BUDGET; (ADMINISTRATION) RECOMMENDATION: Approve the Service Retirement Incentive Program as presented. rd ® D-2 RESOLUTION TO APPROVE AMENDMENT #6 TO THE LEASE AGREEMENT TOR LEASE SITE 87-88/87W-88W, THE OUTRIGGER RESTAURANT, LOCATED AT 833 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution 27-11 approving Amendment #6 to the lease agreement for Lease Site 87-88/87W-88W, the Outrigger Restaurant, located at 833 Embarcadero. D-3 DISCUSSION OF POLICIES AND PROCEDURES REGARDING ABSENCES FROM PLANNING COMMISSION; (CITY COUNCIL) RECOMMENDATION: Require the Planning Commissioner to adhere to the policies for advisory bodies and meet the attendance requirement or declare the position vacant. D4 DISCUSSION OF REALLOCATION OF HARBOR FUNDS FOR THE EMBARCADERO BANNER PROJECT; (CITY COUNCIL) RECOMMENDATION: Approve the expenditure of $25,000 from the Harbor Fund for the purchase of four sets of decorative banners for the Embarcadero street light poles. 0 E. DECLARATION OF FUTURE AGENDA ITEMS E F. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6201 FOR FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. 5 MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION —APRIL 12, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Borchard moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Johnson and unanimously carried. (5-0) Mayor Yates read the Closed Session Statement. ® CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel. • Pro e : 5-acre vacant lot at end of Chorro Creek Road Neszotiatiniz Parties: Wakefield and City of Morro Bay. Neeotiations: Lease Terms and Conditions. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:45 p.m. MOTION: Councilmember Borchard moved the meeting be adjourned. The motion was seconded by Councilmember Leage and unanimously carried. (5-0) The meeting adjourned at 5:45 p.m. 11 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — APRIL 12, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Borchard moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Johnson and unanimously carried. (5-0) Mayor Yates read the Closed Session Statement. ® CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase; sale, exchange, or lease of real property as to one (1) parcel. • Pro e : 5-acre vacant lot at end of Chorro Creek Road Negotiating Parties: Wakefield and City of Morro Bay. Negotiations: Lease Terms and Conditions. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:45 p.m. MOTION: Councilmember Borchard moved the meeting be adjourned. The motion was seconded by Councilmember Leage and unanimously carried. (5-0) The meeting adjourned at 5:45 p.m. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12. 2011 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney Jamie Boucher Deputy City Clerk Eric Endersby Harbor Operations Manager Susan Lichtenbaum Harbor Business Manager Rob Livick Public Services Director Tim Olivas Police Chief Mike Pond Fire Chief Susan Slayton Administrative Services Director Joe Woods Recreation & Parks Director ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS. ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session; and no reportable action under the Brown Act was taken. PUBLIC COMMENT Christine Johnson, President of Morro Bay Friends of the Library announced this is 'National Library Week.' She also announced the library's book sale will be held on May 14`h at 9:00 a.m. and will be held at the Community Center, as well as Friends of the Library members -only event on May 13's at the Morro Bay Wine Cellar. Ms. Johnson introduced Jackie Kinsey, the library's branch manager. Jackie Kinsey, Morro Bay Library Branch Manager stated she was appointed as the branch manager in September 2010. She reviewed present and upcoming programs at the library. Adriane Harris, Director of the Morro Bay National Estuary Program, announced a public ® hearing on the National Estuary Program Management Plan update will be held April 14's at 6:00 p.m. at the Community Center. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12, 2011 D'Onna Kennedy thanked the business community and residents for their participation in the City-wide Yard Sale. She announced the Central Coast Veterans Group meets every third Tuesday of each month at 6:00 p.m. at the Eagles Lodge, which provides information regarding services available to veterans. The following people addressed Item D-3 (Discussion of Policies and Procedures Regarding Absences from Planning Commission) and expressed support for Planning Commissioner John Diodati maintaining his seat on the Planning Commission: Gisele Pulg, Walter Heath. Evan Barbas, David Nelson, Am Lyne, Richard Harrison, Dana Putnam, Barry Brannon, Zack Snyder, John Zigler, Marcus Jackson, Karen Croley, Roger Ewing, Susan Mullen, Lee Johnson, Richard Margesten, Laura Lathrop, Josh Beckett, Erin Hadley, John Diodati and Chris Christianson. Bill Shewcheck read a letter from Stan Trapp (owner of Marina Square) expressing support for Item D-4 (Discussion of Reallocation of Harbor Funds for the Embarcadero Banner Project). Mr. Shewcheck also expressed his support stating this is a good investment in the business community of Morro Bay. isDavid Nelson expressed concern with the removal of the tank farm stating there was a contractual obligation through the lease for the removal of these tanks. Barry Brannon referred to the MB/CSD JPA meeting scheduled for April 14`h stating it is important that citizens get involved and attend this meeting. John Barta expressed support for Item D-2 (Resolution to Approve Amendment #6 to the Lease Agreement for Lease Site 87-88/87W-88W, The Outrigger Restaurant, Located at 833 Embarcadero). He also referred to Item D-3 stating those who come before the Planning Commission deserves to be heard by the entire Commission. Mr. Barta also noted the Planning Commission serves at the pleasure of the City Council. Bryan Millard, Morro Bay Police Commander, stated the Tip -a -Cop dinner held on April 8'h raised $5,400 for Special Olympics. He said the Emergency Vehicle Show Aill be held on April 16'h and the proceeds will be benefitting Neighborhood Watch and the Morro Bay Community Foundation. Brian Stacy requested the City Council consider placing the unfunded salmon disaster on their agenda. He thanked the Mayor for his assistance with the SBA. Tracy Neil Shewcheck announced Virg's Landing has moved to 1169 Market Street and they are running salmon trips and rock cod trips will open in May. 3 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12, 2011 Garry Johnson thanked the Police Department for their efforts during the tsunami warnings. He also stated there are a lot of issues coming before the Planning Commission which will require the full Commission's attention. Mr. Johnson stated the removal of the tank farm has become an environmental issue. Lynn Meissen, Harbor Advisory Board Member, expressed opposition to Item D-4 stating these funds should be used for safety and maintenance repairs to the infrastructure of the harbor. Mayor Yates closed the hearing for public comment. Mayor Yates called for a break at 7:00 p.m.; the meeting resumed at 7:10 p.m. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING ® OF MARCH 22, 2011; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. E A-2 APPROVAL OF RESOLUTION AUTHORIZING THE CITY OF MORRO BAY TO ENTER INTO VESSEL PUMPOUT INSTALLATION GRANT CONTRACT WITH THE DEPARTMENT OF BOATING AND WATERWAYS; (HARBOR) RECOMMENDATION: Adopt Resolution 24-11 authorizing execution of grant contract agreement. A-3 PROCLAMATION DECLARING APRIL 10-16, 2011 AS "CHILDHOOD CANCER AWARENESS WEEK" RECOMMENDATION: Adopt Proclamation. A-4 ADOPTION OF RESOLUTION NO. 26-11 APPROVING A ONE-YEAR LICENSE AGREEMENT WITH LIMO AND COURTNEY LONG, DOING BUSINESS AS SOUTH BAY HOOKERS; (HARBOR) RECOMMENDATION: Adopt Resolution 26-11 approving one-year lease agreement. rd ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12. 2011 A-5 ANNUAL REPORTING ON THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT AND SCHEDULING OF A PUBLIC HEARING, (ADMINISTRATIVE SERVICES) RECOMMENDATION: Council to acknowledge receipt of the annual report and budgets, and set the date for the public hearing for the renewal of the MBTBID on April 26, 2011, and the adoption of Resolution No. 25-11. A-6 APPROVAL OF VEHICLE TRANSFER FROM THE POLICE DEPARTMENT TO THE PUBLIC SERVICES DEPARTMENT AND ASSOCIATED FUND TRANSFER; (POLICE) RECOMMENDATION: Approve vehicle transfer between the Police Department and the Public Services Department. Mayor Yates pulled Item A-5 from the Consent Calendar. MOTION: Councilmember Borchard moved the City Council approve the Consent ® Calendar with the exception of Item A-5. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) A-5 ANNUAL REPORTING ON THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT AND SCHEDULING OF A PUBLIC HEARING: (ADMINISTRATIVE SERVICES) Mayor Yates recommended scheduling a public hearing for the annual reporting on the Morro Bay Tourism Business Improvement District for the 'May 10, 2011 City Council meeting. MOTION: Councilmember Borchard moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 APPEAL OF PLANNING COMMISSION`S DECISION ON MARCH 2_ 2011 TO DENY THE APPEAL OF THE REMOVAL AND REPLACEMENT OF 8 TREES LOCATED IN THE CITY RIGHT OF WAY; (PUBLIC SERVICES) Councilmember Johnson stepped down from discussion on this item due to a conflict of interest. 5 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — APRIL 12, 2011 Public Services Director Rob Livick stated PG&E owns, operates, and maintains the high voltage electric distribution lines within the City of Morro Bay's Right -of -Way under a franchise easement. On September 22, 2010, a City tree caused a power outage where approximately 6,000 PG&E customers lost power for approximately five hours. State law requires minimum clearances of 10-feet between vegetation and high voltage lines at all times for public safety and system reliability. PG&E currently has a program, "Right Tree Right Place" for removing problem trees which require repeated pruning to comply with this requirement and replacing the tree with a tree suitable for planting near power lines due to power outages. City staff met with PG&E's Vegetation Management Forester, Greg Saenz, on October 12, 2010 to discuss trees which would qualify for this program. Nine trees in the public right-of-way were identified as successful candidates for removal and replacement. Mr. Livick recommended the City Council deny the appeal of the Planning Commission's approval for the removal of eight trees (205 Surf, 214 & 225 Beach, 1129, 1149, 1169 Market and two trees at 1320 Main) within the City right- of-way. Robin Cole, appellant, stated her initial concern centered on the removal of a Monterey Cypress adjacent to her property, and said PG&E stated this tree interfered with its power lines. She said she was surprised to view a notice for removal nailed to the tree and was ® encouraged to appeal this removal. Ms. Cole stated the addendum to her appeal includes the eight trees posted for removal that are before the City Council this evening. She reviewed costs of removal and replacement of these trees, and asked why the City wants to remove these healthy, established trees that provide shade, beauty and bird habitats. Patricia Wilmore, PG&E representative, requested the City Council support staffs recommendation to uphold the Planning Commission's approval for the removal of the eight trees within the City right-of-way. Mayor Yates opened the hearing for public comment. David Nelson stated there are many trees in the City that fall under utility lines, and asked if they are also going to be removed. He expressed concern with the use of galvanized nails to post notices in the trees that are being removed by PG&E. Mr. Nelson stated some of these trees can be saved by trimming the limbs away from the utility lines. Debbie Heifel stated there is no compelling reason to comply with PG&E's request to remove all eight trees, because their rules state that trees are removed when they pose a hazard to their workers. She asked that the City not make a blanket policy of removing all trees and that each tree is inspected individually. Ms. Heifel read a letter from Monique Nelson who expressed opposition to the removal of all of these trees, and that ® each tree is inspected individually by an independent arborist for the health and safety of each tree. v MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — APRIL 12, 2011 Betty Winholtz shared pictures of trees in Morro Bay that touch utility lines. She expressed support of this appeal filed against the Planning Commission's approval for the removal of the eight trees within the City right-of-way. She said it is important for a plan to be in place for the management of these trees. Roger Ewing expressed his support of this appeal. He said a tree is a living ecosystem that benefits the environment- and ecology that allows the City to post the "Tree City" signs. Mr. Ewing stated his concern is to destroy all -of the trees that will leave a vacant view shed that will be a shock to the ecosystem. He suggested the removal of one tree at a time, and put a plan in place to manage the removal of the trees that are a problem to PG&E. Mayor Yates closed the hearing for public comment. Mayor Yates expressed support of the Planning Commission's approval for the removal of the eight trees within the City right-of-way; Councilmember Borchard and Councilmember Leage concurred. Councilmember Smukler stated the City should not start this process without having an Urban Forest Management Plan in place. He expressed concern with the removal of trees that are in a cluster that maintain a canopy, and will leave barren sections of the City if removed all at once. MOTION: Mayor Yates moved the City Council deny the appeal of the Planning Commission Commission's approval for the removal of eight trees (205 Surf. 214 & 225 Beach, 1129, 1149, 1169 Market and two trees at IJ20 Main) within the City right-of-way. Council further directed staff to develop an Urban Forest Management Plan prior to the approval of any further tree removals in the next year. The motion was seconded by Councilmember Borchard and carried with Councilmember Smukler voting no. Q-1-1) B-2 RESOLUTION NO. 28-11 INITIATING PROCEEDINGS TO LEVY THE ANNTUAL ASSESSMENT FOR THE CLOISTERS PARK AND OPEN SPACE LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Recreation & Parks Director Joe Woods stated Resolution No. 28-11 initiates the proceedings to levy the annual assessment, and ordering the preparation of an Engineer's Report detailing the expenses projected for Fiscal Year 2011-12 for the maintenance of the Cloisters Park and Open Space. In conformance with Proposition 218 the Right to ® Vote on Taxes Act, passed in 1996 by the voters in the State of California; the Cloisters Landscaping and Lighting Maintenance Assessment District was approved by one hundred percent (100%) of the owners for which the assessment is to be levied. 7 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — APRIL 12, 2011 All property owners were fully apprised of the costs and benefits associated with the district, prior to its approval by them. Resolution No. 28-11 serves as the initiation of the annual assessment proceedings and orders an Engineer's Report detailing the proposed costs for the maintenance of the Cloisters Park and Open Space for the purpose of assessing private property owners of Tract Map No. 1996 (excluding the City's property). The Resolution also gives notice that a public hearing on the intent to levy the assessment, review and acceptance of the Engineer's Report, will be held on May 10, 2011. Mr. Woods recommended the City Council adopt Resolution No. 28-11, ordering the preparation of an Engineer's Report for the Cloisters Park and Open Space Landscaping and Lighting Maintenance Assessment District. Mayor Yates opened the hearing for public comment; there were no comments, and the hearing for public comment was closed. MOTION: Councilmember Johnson moved the City Council adopt Resolution No. 28-11 initiating proceedings to levy the annual assessment for the Cloisters Park and Open Space Landscaping and Lighting Maintenance Assessment District. The motion was seconded by Councilmember Borchard and carved unanimously. (5-0) B-3 RESOLUTION NO. 29-11 INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Recreation & Parks Director Joe Woods stated Resolution No. 29-11 initiates the proceedings to levy the annual assessment, and ordering the preparation of an Engineer's Report detailing the expenses projected for Fiscal Year 2011-12 for the maintenance of the North Point Natural Area. In conformance with Proposition 218, "The Right to Vote on Taxes Act", passed in 1996 by the voters in the State of California, the North Point Natural Area Landscaping and Lighting Maintenance Assessment District was approved by one hundred percent (100%) of the owners for which the assessment.is to be levied. All property owners were frilly apprised of the costs and benefits associated with the district, prior to its approval by them. Resolution No. 29-11 serves as the"initiation to the annual assessment proceedings and orders an Engineer's Report detailing the proposed costs for the maintenance of the North Point Natural Area for the purpose of assessing private property owners of Tract Map No. 2110 (excluding the City's property). The Resolution also gives notice that a public hearing on the intent to levy the assessment. review and accept the Engineer's Report will be held on May 10, 2011. Mr. Woods recommended the City Council adopt Resolution No. 29-11, ordering the preparation of an Engineer's Report for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District. Mayor Yates opened the hearing for public comment; there were no comments, and the hearing for public comment was closed. u MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — APRIL 12, 2011 MOTION: Councilmember Borchard moved the City Council adopt Resolution No. 29-11 initiating proceedings to levy the annual assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District. The motion was seconded by Councilmember Leage and carried unanimously. (5-0) B4 REQUEST FOR A USE PERMIT TO ALLOW INSTALLATION OF A DOCK SYSTEM AND ASSOCIATED FACILITIES AT LEASE SITES 105.1W/105.2W LOCATED AT 1001 FRONT STREET; (PUBLIC SERVICES) Councilmember Leage stepped down from discussion on this item due to a conflict of interest. Assistant Planner Sierra Davis stated this project is located on Lease Sites 105.1W and 105.2W adjacent to 1001 Front Street, and is zoned Harbor and governed by the Waterfront Master Plan. The upland portion of the project site is located within the Waterfront/Planned Development Zoning District, with an SA overlay, and is governed by the Waterfront Master Plan. The existing building includes Giovanni's Fish Market and take out window, a restaurant, and a clothing store. No improvements to the existing ® building are proposed with this project. Since the project is located in the Planned Development overlay area, the Municipal Code requires a Concept Plan for all projects over an acre in size or for projects on public land; as such the use permit under consideration is for a Concept Plan (MBMC 17.40.030). This Concept Plan was heard by the Planning Commission on March 16, 2011. The Concept Plan shall be approved by the City Council prior to the applicant applying to the California Coastal Commission for a Coastal Development Permit. Should the Coastal Commission grant a Coastal Development Permit, then the applicant will return with the Precise Plan. The proposed project consists of the installation of a new head float, the addition of four finger docks, landing and gangway and the installation of an awning system over the public outdoor dining area. Ms. Davis recommended the City Council support the Planning Commission's approval of Conditional Use Permit #UPO-284 and the adoption of the Mitigated Negative Declaration for the construction of a new dock, gangway, landing, awning and parking lot at 1001 Front Street with findings and conditions as amended by the Planning Commission. Cathy Novak, representing the applicant, stated this project has three components, the awning, the floating docks and the parking lot. The awing as proposed will be a benefit to the public seating area because it will offer more protection from the elements during inclement weather. The floating docks will have an addition of approximately 74 linear feet to the main head float and the installation of four finger style slips and a new gangway since access to the dock is limited to the ladder from the wharf. A configuration change is and the existing side tie method to the individual slips will provide a better tie up system and protection for the boats. 0) MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — APRIL 12, 2011 The last component of this project is the parking lot. With staff help, a new parking configuration has been developed that answer's the City's concerns and is also acceptable to the applicant. Ms. Novak stated there are three project conditions that are of concern and they are: 1. Planning Condition # 8: the ADA space; 2. Planning Condition # 9: the Street frontage; and 3. Engineering Condition # 1: the public improvements. Ms. Novak suggested the following modifications to these conditions: 1. Planning Condition #8 which is the ADA parking space would change to "meet the State and Federal ADA standards". 2. Planning Condition 99, the street frontage landscaping, would be deleted. 3. Planning Condition #11 is the landscape plan and if the Council does not require the landscaping then this condition should be eliminated. 4. Engineering Condition 91, the deferment of the public improvements would be modified so that the public improvements will be completed when a major or comprehensive re -development on the site is done. ® 5. That Council grants the additional historical parking credits for the side tie use of the previous floating dock to offset this dock project. Mayor Yates opened the hearing for public comment; there were no comments, and Mayor Yates closed the public comment hearing. Mayor Yates stated he will be supporting the removal of Planning Condition #4 - Liveaboards and Planning Condition #6 - Parking Space Labelsstating these conditions are too restrictive. Councilmember Smukler stated he is supportive of the Planning Commission's conditions with some consideration to the landscape plan that would be compatible with the parking area. He would like to move in the direction of 8-foot sidewalks connecting the north and south -ends of the Embarcadero. Councilmember Borchard stated she is not supportive of removing Planning Condition #4 regarding liveaboards because it would change the dynamics of the parking and she does not want to make exceptions to the rules. She said she supports on -site improvements to the existing landscape area as well as comprehensive redevelopment site improvements such as the extension of the sidewalks. Councilmember Borchard stated she supports the changes to Planning Condition #8, 99 and 911. She referred to Planning Condition 96 and recommended the following amendment: ".... At no time shall equipment, delivery ® trucks, or marine storage tanks, nor the like be permanently placed in the parking spaces." 10 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — APRIL 12, 2011 Councilmember Johnson stated she agrees the 8-foot sidewalk should be considered at another time. She suggested placing wood in front of the chain link fence. Councilmember Johnson stated the Waterfront Master Plan will be considered with major new development. Mayor Yates called for a break at 9:40 p.m.; the meeting resumed at 9:50 p.m. MOTION: Mayor Yates moved the City Council support the Planning Commission's approval of Conditional Use Permit "0-284 and the adoption of the Mitigated Negative Declaration for the construction of a new dock, gangway, landing, awning and parking lot at 1001 Front Street, with the following amendments: 1) Planning Condition 96 — Parking Space Labels: The parking spaces resen,ed f f the Ae..l... shall be labeled and apea ...7 available fer people using the deelE97 At no time shall equipment, delivery trucks, or marine storage tanks, nor the like be permanently placed in the parking spaces; 2) Planning Condition #8 — Accessible Parking Space: The van accessible parking space shall meet State and Federal standards; 3) Planning Condition 99: Street Frontage — (remove entirely); 4) Planning Condition #11: Landscape Plan - (remove entirely); 5) Engineering ® Condition #1 — to include language "at which time there is a comprehensive redevelopment of the site"; and 6) grant a total of five historic parking credits to the property. The motion was seconded by Councilmember Johnson and carried with Councilmember Smukler voting no. (3-1-1) B-5 RECOMMENDATION ON THE FUTURE OF THE VISITORS CENTER, INCLUDING DISCUSSION ON A MARKETING SPECIALIST, AND THE COMBINING OF THE COMMUNITY PROMOTIONS COMMITTEE (CPC) AND THE TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID); (ADMINISTRATION) Mayor Yates recommended this item be continued to the April 26, 2011 or May 10, 2011 City Council meeting; Council concurred. There was no further action taken on this item. C. UNFINISHED BUSINESS 11 11 MINIUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — APRIL 12, 2011 D. NEW BUSINESS D-1 APPROVAL OF THE SERVICE RETIREMENT INCENTIVE PROGRAM FOR FISCAL YEAR 2011/12 BUDGET; (ADMINISTRATION) City Manager Andrea Lueker stated in recent years, a number of cities have structured retirement incentives as a means of short-term and -long-term savings. Staff considered and evaluated various retirement incentive options and programs, and is presenting a one- time, lump -sum service retirement incentive program. Ms. Lueker recommended the City Council consider the options presented by staff and approve the Service Retirement Incentive Program for fiscal year 2011/12. MOTION: Councilmember Borchard moved the City Council approve the Service Retirement Incentive Program for fiscal year 2011/12. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) D-2 RESOLUTION TO APPROVE AMENDMENT #6 TO THE LEASE AGREEMENT TOR LEASE SITE 87-88/87W-88W, THE OUTRIGGER RESTAURANT, LOCATED AT 833 EMBARCADERO; (HARBOR) ® Councilmember Leage stepped down from discussion on this item due to a conflict of interest. Harbor Business Manager Sue Lichtenbaum stated the proposed amendment extends the term of the lease agreement for Lease Site 87-88/87W-88W from December 31. 2011 to March 31, 2018, makes a change to the notification process, adds a 10% penalty for past due rent payment, reduces the percentage of gross sales on bar/cocktail lounge sales from 10% to 5%, and includes a schedule of required repairs/improvements to the site. Ms. Lichtenbaum recommended the City Council adopt Resolution No. 27-11 to approve Amendment 46 to the lease agreement for Lease Site 87-88/87W-88W, the Outrigger Restaurant, located at 833 Embarcadero. MOTION: Councilmember Borchard moved the City Council adopt Resolution No. 27-11 to approve Amendment #6 to the lease agreement for Lease Site 87- 88/87W-88W, the Outrigger Restaurant, located at 833 Embarcadero. The motion was seconded by Councilmember Smukler and carved unanimously. (4-0-1) 12 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12, 2011 D-3 DISCUSSION OF POLICIES AND PROCEDURES REGARDING ABSENCES FROM PLANNING COMMISSION; (CITY COUNCIL) Councilmember Borchard stated the Planning Commission allows for members to formally request permission to be absent from three regular meetings per year pursuant to Morro Bay Municipal Code Section 2.28.100. Similarly City Council Resolution 10-06 addresses attendance requirements for boards, stating absence of four meetings in a consecutive 12-month period will constitute the voluntary resignation of the absent member. At the March 16a' Planning Commission meeting, a request was made and granted to Planning Commissioner Diodati to be excused (or be late) for the next five Planning Commission meetings. The concern regarding the issue is twofold. First, this action would set a precedent in allowing a Board or Commission to override the set policies of the City on absenteeism as outlined in Resolution 10-06. Second, in regard to "doing the business of the City", the Planning Commission plays a vital role in land use decisions. It is important, when possible, that the applicant appearing before the Commission have a full board, hearing their project request. Councilmember Borchard recommended the City Council require the Planning Commissioner to adhere to the policies for advisory bodies and meet the attendance requirement or declare the position vacant. ® Mayor Yates stated everyone respects John Diodati as a valuable citizen, and no one questions his integrity. He said the City's municipal code states the Planning Commission serves at the discretion of the City Council. Councilmember Borchard stated she did vote for John Diodati's appointment to the Planning Commission two years ago, and she did not support his removal from the Planning Commission last December when there were two remaining Commissioners. Councilmember Borchard stated this issue is about the attendance requirement, and providing due process to the community and applicants with a full Planning Commission. She referred to Morro Bay Municipal Code Section 2.28.100 that states: "Absence of a member from three regular meetings during the calendar year without formal consent of the planning commission. noted in its official minutes. constitutes the voluntary resignation of such absent member and the position shall be declared vacant." Councilmember Borchard stated Commissioner Diodati's request to arrive late to Planning Commission meetings would not provide him the information from public comment or discussions that the other Commissioners would have received prior to his arrival that they would be voting on. Councilmember Johnson stated this has nothing to do with Commissioner Diodati's character or ability to perform his duties as a Planning Commissioner. She said applicants that come before a Planning Commission deserves the attention of a full Commission. ® Councilmember Johnson stated by accepting a commitment to be a member of a City commission or board, especially the Planning Commission, you must be available to attend the meetings. 13 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12, 2011 Councilmember Leage stated this issue is not about integrity, but about taking responsibility to the commitment of being on the Planning Commission. Councilmember Smukler stated the City Council created a conflict by changing the meeting dates of the Planning Commission without consulting them, and the Council should reconsider this issue as a one-time event. MOTION: Councilmember Borchard moved the City Council request the Planning Commissioners attend the required Planning Commission meetings when the meeting is called to order, with no more than three (3) absences per year; if not, declare the position vacant. The motion was seconded by Councilmember Johnson and carried with Councilmember Smukler voting no. (4-1) DA DISCUSSION OF REALLOCATION OF HARBOR FUNDS FOR THE EMBARCADERO BANNER PROJECT; (CITY COUNCIL) Mayor Yates stated for the past several months the City as well as other local groups have focused on repair, maintenance and beautification efforts on streets, sidewalks, parks and planters to make the City more attractive to both residents and visitors. Within the next few weeks, PG&E will be repainting the street lights along the Embarcadero. The next proposed step for beautification is installing colorful banners along the Embarcadero on these poles. The goal of the banner committee is to secure the banners, hardware, and installation at the lowest possible price while keeping quality (longevity) in mind. Should the City Council agree to this expenditure, it will be scheduled to occur prior to Memorial Day 2011. Mayor Yates recommended the City Council approve up to $25,000 of funds from the Harbor Budget for the purchase of four sets of decorative banners for the Embarcadero street light poles. MOTION: Mayor Yates moved the City Council approve up to $25,000 of funds from the Harbor Budget for the purchase of four sets of decorative banners for the Embarcadero street light poles, brackets. and installation. The motion was seconded by Councilmember Leage and carried unanimously. (5-0) E. DECLARATION OF FUTURE AGENDA ITEMS Mayor Yates requested the regulations on A -Frame Signs be scheduled for the April 26, 2011 City Council meeting. 14 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12, 2011 ADJOURNMENT The meeting adjourned at 10:45 p.m. Recorded by: Jamie Boucher Deputy City Clerk E 15 C E F� City of Morro Bay Morro Bay, CA 93442 mop" (805) 772-6200 NOTICE OF SPECIAL CLOSED SESSION MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Closed Session Meeting on Thursday. April 7. 2011 at 9:00 a.m. to be held in the City Hall Conference Room located at 595 Harbor Street, Morro Bay, California. The City Council will be discussing the following: CS-1 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR. Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. DATED: March 30, 2011 IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. ® City of Morro Bay Morro Bay, CA 93442 (805) 772-6200 NOTICE OF SPECIAL CLOSED SESSION MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Closed Session Meeting on Tuesday. March 29, 2011 at 9:00 a.m. to be held in the City Hall Conference Room located at 595 Harbor Street, Morro Bay, California. The City Council will be discussing the following: CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel. • Property: Morro Bay Power Plant Outfall. Negotiating Parties: Dynegy and City of Morro Bay. ® Negotiations: Lease Terms. • Property: Chorro Valley Property. Negotiating Parties: Chorro Valley Property Owners and City of Morro Bay. Negotiations: Water rights. CS-2 GOVERNMENT CODE SECTION 54956.9(C): CONFERENCE WITH LEGAL COUNSEL DUE TO ANTICIPATED LITIGATION. Initiation of litigation exists based upon existing facts and the advice of legal counsel as to one (1) matter. • City of Morro Bay vs. Hayashi and Sons, Nagano and Giannini DATED: March 24, 2011 IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO ® PROVIDE ACCESSIBILITY TO THE MEETING. ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of fife The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public REGULAR MEETING — TUESDAY, MARCH 22, 2011 CLOSED SESSION — TUESDAY, MARCH 22, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR. Conference with City Manager, the City's Designated ® Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. L PUBLIC SESSION — TUESDAY, MARCH 22, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or ® staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to cant' out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR REGULAR MEETINGS OF FEBRUARY 22, 2011 AND MARCH 8, 2011, AND THE SPECIAL MEETING OF MARCH 15, 2011; (ADMINISTRATION) 0 RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 23-I1 AUTHORIZING HINDERLITER, DE LLAMAS & ® ASSOCIATES (HDL COMPANIES) TO RETAIN COUNSEL TO INTERVENE IN THE CASES OF CITY OF BRISBANE, ET AL, V. CALIFORMA STATE BOARD OF EOUALIZA77ON (BOE) AND DOES 1-500, AND TO REPRESENT THE CITY OF MORRO BAY'S INTERESTS IN THESE CASES; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 23-11, and direct the City Manager to complete HdL Companies' form Authorization — Motion to Intervene. A-3 AUTHORIZATION TO PURSUE CALTRANS TRANSPORTATION PLANNING GRANT FOR A COMPLETE STREETS/GREEN STREET PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution 22-11 authorizing the Public Services Director to pursue the application for a Transportation Planning Grant and to act as the City's representative in administration of the Grant if the application is successful. A-4 PROCLAMATION DECLARING APRIL 2011 AS "MONTH OF THE CHILD" AND "CHILD ABUSE PREVENTION MONTH" AND APRIL 9, 2011 AS "DAY OF THE CHILD"; (ADMINISTRATION) ® RECOMMENDATION: Adopt Proclamation. A-5 PROCLAMATION DECLARING APRIL 2011 AS "FAIR HOUSING MONTH''; (PUBLIC SERVICES) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES — NONE. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 REVIEW AND DISCUSSION OF MORRO BAY MUNICIPAL CODE 17.48.320 REGARDING SECONDARY DWELLING UNITS; (CITY ATTORNEY) RECOMMENDATION: Direct staff on whether to draft changes to the current Secondary Dwelling Unit Ordinance. E. DECLARATION OF FUTURE AGENDA ITEMS ® F. ADJOURNMENT 3 L� THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. 51 MINUTES - MORRO BAY CITY COUNCIL ® CLOSED SESSION —MARCH 22, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. Vice -Mayor Smukler called the meeting to order at 5:00 p.m. PRESENT: Noah Smukler Vice -Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember ABSENT: William Yates Mayor STAFF: Robert Schultz City Attorney Susan Slayton Administrative Services Director Jamie Boucher Human Resources Analyst CLOSED SESSION MOTION: Councilmember Borchard moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Johnson and unanimously carried. (4-0) Vice -Mayor Smukler read the Closed Session Statement. ® CS-1 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR. Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:27 p.m. MOTION: Councilmember Smukler moved the meeting be adjourned. The motion was seconded by Councilmember Borchard and unanimously carried. (4-0) The meeting adjourned at 5:27 p.m. r 1 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MARCH 22, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. Vice -Mayor Smukler called the meeting to order at 6:00 p.m PRESENT: Noah Smukler Vice -Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember ABSENT: William Yates Mayor STAFF: Robert Schultz City Attorney Bridgett Kessling City Clerk Eric Endersby Harbor Operations Manager Susan Lichtenbaum Harbor Business Manager Mike Pond Fire Chief Susan Slayton Administrative Services Director Kathleen Wold Planning Manager Joe Woods Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE ® PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. l PUBLIC COMMENT John Weiss and Craig Schmidt of the Chamber of Commerce presented Chris Christianson of Morro Bay 4`s with a check for $1,500 to go towards this year's 4s of July fireworks and festivities. Mr. Christianson expressed appreciation to the Chamber and the City for their encouragement to make this event a success. Bill Shewcheck presented Suite 1 Gallery and some local artists that showcase artwork at the gallery located at Marina Square on the Embarcadero. Betty Winholtz stated Morro Bay was on the front page of the Tribune last Friday regarding the Coastal Commission's review of the City's permit application for the Wastewater Treatment Plant upgrade project. She said the Commission found the proposed project to be deficient in issues such as alternative technology and site location, and water reclamation. 2 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 22, 2011 Ms. Winholtz stated the City has spent over $300,000 of tax payer's money to put forward a document.that was not successful, and is now requesting to spend $100,000 on a lobbyist in order to try to be successful at the Coastal Commission level. She said these funds could have been used on the infrastructure of the Wastewater Treatment Plant, and requested Council stop gambling with the taxpayer's money. David Weisman, Alliance for Nuclear Responsibility, expressed concern with the devastation taking place in Japan, and the same affects that could take place with Diablo Canyon Nuclear Power Plant if an earthquake hit this area. He requested the City Council agendize the consideration of sending a letter to the Nuclear Regulatory Commission and California Utilities Commission regarding the PG&E relicensing process and seismic hazards analysis/study. Joan Solu, Del Mar PTA President, announced the Del Mar Elementary School Art Auction and Fundraiser will be held on April 10`s. Haley Revalee, Del Mar Elementary School student, invited the community to the Art Auction and Fundraiser and noted donations are still being accepted. She said all proceeds will go towards classroom technology and field trips. ® Gay Skivalasquez, San Luis Obispo Council of Governments, announced the Coastal Trail Community Workshop will be held on March 30'h to kick-off the Master Plan process for the coastal trail through the Northern San Luis Obispo Coastal region. u Mark Shaeffer, CEO for FunRide, reviewed the local car sharing service. He said the cost for car sharing is $240 per year and there is a one-time fee of $30 per driver. Mr. Shaeffer stated the service is available 24 hours per day, 7 days per week; and cars can be reserved by the hour. Barry Brannin read his statement regarding the Coastal Commission's review of the Wastewater Treatment Plant upgrade project that took place on March 11`s in Santa Cruz. Virginia Hiramatsu encouraged participation at the Relay for Life Morro Bay Kickoff meeting which will be held on March 24's at the Embarcadero Grill. Susan Stewart, Chair of the Community Promotions Committee, stated at the last City Council meeting and as a result to the vote on the Advertising Agency there seemed to be a disconnect between the Council, the Advisory Boards and the business community. She said the Community Promotions Committee will be making an effort to reaching out to the Council and business community for better consensus on goals and objectives. 3 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MARCH 22, 2011 Ms. Stewart listed the following goals: 1) to improve communication, she will report at Council meetings once a month, hold regular joint meetings with the Tourism Business Improvement District Advisory Board, and will work with the Business Forum regarding Community Promotions activities; 2) there is a need to move forward effectively with a City-wide workshop to get the community, businesses, boards and Council working together with regards to City promotions, image and advertising; 3) coordinate and approach advertising broadly and openly; 4) TJA Advertising has provided a clear advertising plan focused on a variety of demographics around California with monthly budget outlines where advertising dollars are spent in print and on-line venue; with the new advertising agency, the Committee will continue to review the approach and solicit community input; and 5) TJA is preparing for the transition to the new agency in hopes that there is no lag time in City promotion efforts or website availability; internet and print ads will continue to run as scheduled and new ideas will continue to being explored. John Barta addressed Item D-1 (Review and Discussion of Morro Bay Municipal Code 17.48.320 Regarding Secondary Dwelling Units) stating using existing resources without expanding City boundaries, including granny units or secondary dwelling units, can assist in the State fair share housing requirement. ® Richard Margesten stated he hopes the City does not fight the Coastal Commission's requirements regarding the Wastewater Treatment Plant upgrade project. He said his concern is the costs of contractors' bids are below engineers estimates. Garry Johnson thanked the City for their efforts through the tsunami warnings. He also noted the reason there have been so many .costs for the Wastewater Treatment Plant upgrade project are due to the appeals that have been filed against it. Vice -Mayor Smukler closed the hearing for public comment. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR REGULAR MEETINGS OF FEBRUARY 22, 2011 AND MARCH 8, 2011, AND THE SPECIAL MEETING OF MARCH 15, 2011; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. M MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MARCH 22, 2011 A-2 RESOLUTION NO. 23-11 AUTHORIZING HINDERLITER, DE LLAMAS & ASSOCIATES (HDL COMPANIES) TO RETAIN COUNSEL TO INTERVENE IN THE CASES OF CITY OF BRISBANE, ET AL, V. CALIFORNIA STATE BOARD OF EOUALIZATION (BOE) AND DOES 1-500, AND TO REPRESENT THE CITY OF MORRO BAY'S INTERESTS IN THESE CASES; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 23-11, and direct the City Manager to complete HdL Companies' form Authorization — Motion to Intervene. A-3 AUTHORIZATION TO PURSUE CALTRANS TRANSPORTATION PLANNING GRANT FOR A COMPLETE STREETS/GREEN STREET PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution 22-11 authorizing the Public Services Director to pursue the application for a Transportation Planning Grant and to act as the City's representative in administration of the Grant if the application is successful. ® A-4 PROCLAMATION DECLARING APRIL 2011 AS "MONTH OF THE CHILD" AND "CHILD ABUSE PREVENTION MONTH" AND APRIL 9, 2011 AS "DAY OF THE CHILD"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-5 PROCLAMATION DECLARING APRIL 2011 AS "FAIR HOUSING MONTH"; (PUBLIC SERVICES) RECOMMENDATION: Adopt Proclamation. MOTION: Councilmember Johnson moved the City Council approve the Consent Calendar. The motion was seconded by Councilmember Borchard and carried unanimously. (4-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES — NONE. C. UNFINISHED BUSINESS — NONE. l 5 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MARCH 22, 2011 D. NEW BUSINESS D-1 REVIEW AND DISCUSSION OF MORRO BAY MUNICIPAL CODE 17.48.320 REGARDING SECONDARY DWELLING UNITS; (CITY ATTORNEY) City Attorney Robert Schultz stated on February 14, 2005 the City Council enacted a moratorium on secondary dwelling units in order to bring the City zoning into compliance with Government Code §65852.2. This law, also known as AB 1866, required cities to develop a process by which at least some secondary dwelling units may be permitted through a ministerial process. On February 21, 2005 the Planning Commission held a public hearing to familiarize the Planning Commission and community with the current State and local regulatory framework, and take public testimony on the topic of secondary dwelling units. On March 7, 2005 Staff sought direction from the Planning Commission on how to best achieve compliance with State law. The Planning Commission provided feedback as to what the proposed ordinance should entail. Staff then drafted an ordinance that met State laws and balanced local land use needs and objectives. On April 25, 2005, May 9, 2005 and May 23, 2005 the City Council considered and adopted revisions to Morro Bay Municipal Code Section ® 17.48.320 regarding Secondary Units. The revisions adopted by the City Council established a process whereby one could build a small, affordable secondary unit (900 sq. ft.) with minimal city or neighborhood involvement by obtaining a ministerial permit. At the same time, if one desired to build a larger secondary dwelling unit they could continue to do so under Conditional Use Permit standards and processing requirements. Mr. Schultz recommended the City Council review the adopted Summary of Ordinance Amendments, and direct staff on whether to draft changes to the current Secondary Dwelling Unit Ordinance. Councilmember Johnson stated granny units are a way to meet State regulations and provide low-income housing. She referred to Summary of Ordinance Amendment #3 in the staff report, and stated it is very limited and should be eliminated, which would be the easiest and most effective way to approach second dwelling units. Councilmember Borchard stated she supports Councilmember Johnson's suggestion to eliminate Amendment #3; this will help with the City's housing requirements and infrastructure needs. Councilmember Borchard referred to Morro Bay Municipal Code Section 17.48.320(E) — Architectural Compatibiliri, noting she would like to strike -out "type of windows, and trim details" and replace it with "reasonably compatible." 2 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MARCH 22, 2011 Councilmember Leage stated he agrees with Councilmember Johnson's comments. He said this makes it more versatile for homeowners especially with the expense of housing. Councilmember Leage stated this is a great way to meet the City's housing requirements. Councilmember Smukler stated he does not support making extreme changes to the code. MOTION: Councilmember Borchard moved the City Council direct the City Attorney to return with the following amendments to Morro Bay Municipal Code Section 17.48.120: C. Minimum and Maximum Floor Area. The floor area of a second unit shall not exceed the maximum allowable amount of 1,200 square feet as per State guidelines. E. Architectural Compatibility. The architectural design, exterior materials and colors, roof pitch and style, ')Tee ands details reasonably compatible of the second unit .... F. Parking. .... The parking space can be open and uncovered; however neither may be in tandem with required parking of the prineipal dwelling unit or seeendary unit, and cannot be- 0 I. Conditional Use Permit. (Remove entire regulation.) Councilmember Smukler stated he does not support removing (I) in its entirety. The motion was seconded by Councilmember Johnson and carried with Councilmember Smukler voting no. (3-1) DECLARATION OF FUTURE AGENDA ITEMS Councilmember Smukler requested to agendize the approval to send a letter to the Nuclear Regulatory Commission and California Utilities Commission regarding PG&E relicensing process and seismic hazards analysis/study - Councilmember Smukler will supply the letter; Council consensus. ADJOURNMENT - The meeting adjourned at 7:45 p.m. (Recorded by: Bridgett sling City Clerk El City of Morro Bay Morro Bay, CA 93442 (805) 772-6200 NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Tuesday, March 15, 2011 at 4:00 p.m. to be held in the City Hall Conference Room located at 595 Harbor Street, Morro Bay, California. The City Council will be confirming by resolution that a local disaster exists in Morro Bay. 0 DATED: March 14, 2011 Bridgettng I ity Clerli� IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. E ® MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING —MARCH 15, 2011 CITY HALL CONFERENCE ROOM - 4:00 P.M. Mayor Yates called the meeting to order at 4:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney Tim Olivas Police Chief Mike Pond Fire Chief PUBLIC COMMENT — None. RESOLUTION NO. 21-11 DECLARING THE EXISTENCE OF A LOCAL EMERGENCY IN 2011 The City Council received a briefing from staff regarding the damage to the Morro Bay harbor due to the tsunami effects from the devastating earthquake and tsunami that hit Japan on March 10, 2011. A request from the City was sent to Governor Jerry Brown for consideration of federal funding for the damage caused to the harbor that was estimated at $500,000. MOTION: Councilmember Borchard moved the City Council adopt Resolution No. 2 1 -11 declaring a local emergency in 2011. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) The meeting adjourned at 4:15 p.m. n I� ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — TUESDAY, MARCH 8, 2011 CLOSED SESSION — TUESDAY, MARCH 8, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR. Conference with City Manager, the City's Designated ® Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. CS-2 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to 2 parcels. , Property: Embarcadero Grill - Lease Site 86-86W Negotiating Parties: Caldwell and City of Morro Bay. Negotiations: Lease Terms and Conditions. • Property: Outrigger - Lease Site 87-88/87W-88W Negotiating Parties: V. Lease and City of Morro Bay. Negotiations: Lease Terms and Conditions. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. PUBLIC SESSION — TUESDAY, MARCH 8, 2011 ® VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. ® • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this -meeting, please contact the City Clerk, (805) 772-6205. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR REGULAR MEETING OF FEBRUARY 22, 2011; (ADMINISTRATION) RECOMMENDATION: This item has been pulled from the agenda. 2 A-2 RESOLUTION NO. 14-11 ADOPTING MEMORANDUM OF UNDERSTANDING WITH THE MORRO BAY POLICE OFFICERS ASSOCIATION; ® (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 14-11. A-3 RESOLUTION NO. 15-11 AUTHORIZING THE EXAMINATION OF SALES OR TRANSACTIONS AND USE TAX RECORDS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 15-11. A4 RESOLUTION NO. 19-11 IDENTIFYING THE PAYMENT SCHEDULE AND TRACKING OF FUNDS FOR THE REPAYMENT OF THE SALE OF THE PACIFIC/MARKET STREET PROPERTIES; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 19-11. A-5 PROCLAMATION DECLARING APRIL 2011 AS "AUTISM AWARENESS MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-6 PROCLAMATION DECLARING THE 100-YEAR ANNIVERSARY OF CALIFORNIA WOMEN HAVING THE RIGHT TO VOTE IN THE CITY OF ® MORRO BAY; (CITY COUNCIL) RECOMMENDATION: Adopt Proclamation. E A-7 APPROVAL OF PARCEL MAP MB 08-0019 (285 MAIN ST.) WITH ACCEPTANCE OF ASSOCIATED RIGHT-OF-WAY DEDICATION AND ABANDONMENTS; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 20-I1 approving the Parcel Map MB 09-0019 with the acceptance of associated Right -of -Way Dedication and Abandonment. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 CONSIDERATION OF AN AMENDMENT TO MORRO BAY MUNICIPAL CODE TITLE 5 ADDING CHAPTER 5.50 ESTABLISHING REGULATIONS AND PROCEDURES ENTITLED "MEDICAL MARIJUANA COLLECTIVES AND COOPERATIVES"; (CITY ATTORNEY) RECOMMENDATION: Review the report and attached draft Regulations and Procedures entitled "Medical Marijuana Collectives and Cooperatives", and direct staff to return with an Ordinance for Introduction and First Reading with any changes suggested by Council. 3 B-2 COUNCIL DIRECTION ON THE 2011/2012 CITY GOALS AND BUDGET ® PRIORITIES; (ADMINISTRATION) RECOMMENDATION: Review the goals from 2010, the status of each goal, and make a determination on any new goals for the upcoming year and/or continuing existing goals. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 AWARD OF THE MARKETING AND ADVERTISING SERVICES CONTRACT; (ADMINISTRATION) RECOMMENDATION: Review the motion from the Community Promotions Committee and the Tourism Business Improvement District Board which recommended award of the Marketing and Advertising Services Contract to TJA Advertising. Staff further recommends the City Council then make a final determination on the contract award. D-2 DISCUSSION OF THE GREEN BUILDING INCENTIVES PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Review the Green Building Incentives Program authorized by ® Resolution No. 24-09, and provides direction to staff. E. DECLARATION OF FUTURE AGENDA ITEMS 11 F. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200.FOR FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. F1 MINUTES - MORRO BAY CITY COUNCIL ® CLOSED SESSION — MARCH 8, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Borchard moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Johnson and unanimously carried. (5-0) Mayor Yates read the Closed Session Statement. CS -I GOVERNMENT CODE SECTION 54957.6: CONFERENCE WITH LABOR ® NEGOTIATOR. Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. CS-2 GOVERNMENT CODE SECTION 54956.8: REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to 2 parcels. • Property: Embarcadero Grill - Lease Site 86-86W Negotiating Parties: Caldwell and City of Morro Bay. Negotiations: Lease Terms and Conditions. • Property: Outrigger - Lease Site 87-88/87W-88W Negotiating Parties: V. Leage and City of Morro Bay. Negotiations: Lease Terms and Conditions. Councilmember Leage left the meeting due to a conflict of interest on Item CS-2. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:45 p.m. MOTION: Mayor Yates moved the meeting be adjourned. The motion was seconded by ® Councilmember Borchard and unanimously carried. (4-0) The meeting adjourned at 5:45 p.m. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MARCH 8, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:05 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Susan Lichtenbaum Rob Livick Tim Olivas Mike Pond Susan Slayton Joe Woods ESTABLISH QUORUM AND CALL TO ORDER ® MOMENT OF SILENCE PLEDGE OF ALLEGIANCE City Manager City Attorney City Clerk Harbor Business Manager Public Services Director Police Chief Fire Chief Administrative Services Director Recreation & Parks Director MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT Linda Williams, representing Morro Bay Beautiful, announced the City-wide Yard Sale "Treasure Hunt Weekend" will be held April 2" d and 3nd. Sharon Moore, owner of Virg's Fishing, stated Virg's has been in business in Morro Bay since 1954 on the Embarcadero. She announced they are looking for a new location on the Embarcadero to move their boats and tackle shop and will keep the City appraised of these changes. D'Onna Kennedy announced the Central Coast Veterans Support Group will hold its meeting on the third Tuesday of each month at 6:00 p.m. and will be held at the Eagles Lodge in Morro Bay. Bill Martony expressed his appreciation that the improvement of the Morro Rock parking lot ® has been brought as a consideration by Council because it is the jewel of Morro Bay. 2 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MARCH 8, 2011 Jaime Irons announced the 2nd Annual Trail Work Day will be held on March 20'b at Black Mountain and Cerro Cabrillo to perform trail maintenance work in cooperation with the California Parks and Recreation Department. Peter Behman announced a "Luau Fundraiser" will be held on March 20d' at the Harbor Hut to raise funds for the 0 of July festivities. Chris Christianson, Morro Bay 4t° Vice -President, expressed thanks for the generous support of the Tourism Business Improvement District Advisory Board, Community Promotions Committee and Morro Bay Chamber of Commerce; because of this support they are well on their way to guaranteeing the 4d' of July fireworks will be back again this year. Gary Richard Arnold expressed displeasure with the direction the government is going towards. He referred to the following website: freedomadvocates.org. Jack McCurdy announced the Coastal Commission will be reviewing the Morro Bay/Cayucos Sanitary District's Wastewater Treatment Plant upgrade project on March l id' in Santa Cruz. ® David Nelson referred to an article in the Tribune regarding permit fees for solar panels where a survey of local governments in San Luis Obispo County provided by the Sierra Club showed a wide variation in permit fees charged to businesses to install solar power, and Morro Bay's fees were amongst the highest in the County. He said the City should start looking at renewable projects through the California Energy Commission. Mr. Nelson stated the City should purchase the power plant on the Embarcadero and use it to provide renewable energy. Virginia Hiramatsu, representing Relay for Life, announced the team fundraiser for Relay for Life will be a Bunco "Against Cancer" Party held on March 16d' at 6:00 p.m. at St. Timothy's Church; and there will be a Community Kick -Off on March 24d' at 6:00 p.m. at the Embarcadero Grill. Ken Vesterfelt announced the first Emergency Vehicle Show will be held on April le on Main and Morro Bay Boulevard. He also announced the Tip -a -Cop dinner will be held on April 8t" at the Community Center. Craig Schmidt. Chamber of Commerce CEO announced the Annual Chili Cook -Off and Beer Fest will be held on March 12t° at the Community Center which a portion of the proceeds will go towards the Morro Bay Community Foundation. Janice Peters thanked those who supported Fundraiser Follies last weekend. n U MINUTES- MORRO BAY CITY COUNCIL ® REGULAR MEETING — MARCH 8, 2011 Brian Stacy stated there was a federally -declared salmon disaster in September 2010 and the federal government failed to fund it. He said there are a lot of fishermen who were not allowed to catch salmon last year and the upcoming season may not be any better. He requested the City Council consider sending a letter of support to the federal government to make funds available for our local fishermen. Mr. Stacy also expressed concern with the community fishing quota bought by the Nature Conservancy and then leased out. Gary Hixson reviewed the roles he plays on Channel 2 including Jamie Summers on the Biotronic Woman and the Gary Tyler Moore show. He also talked about various other topics. Richard Margesten addressed public comment on agenda items and stated the law of the State of the California supersedes the Mayor's way of handling this policy. The following people addressed Item D-1 (Award of the Marketing and Advertising Services Contract) and requested the City Council award the Marketing and Advertising Services Contract to Barnett Cox & Associates in order to provide a different marketing strategy for the City's tourism industry: John Solu, Shaun Farmer, Harold Biaggini, Bill Shewchek, Stan Trapp, and Len Wilhitte. ® The following people addressed Item D-1 and requested the City Council award the Marketing and Advertising Services Contract to TJA Advertising in order to maintain the quality in marketing solutions that has been provided the City for the past 15 years: Mike Casola, Janice Peters, Susan Stewart, Ed Krovitz and Bill Stafford. Jayne Behman, Tourism Business Improvement District Advisory Board Member, stated she felt obligated at the joint Community Promotions Committee/Tourism Business Improvement District Advisory Board meeting to make a decision and yet did not have sufficient time to digest the information provided. She said when an independent contractor's contract is up for renewal, an audit should be conducted that would indicate a correlation between performance and cost. Ms. Behman stated in speaking with other hoteliers and personnel from the Visitor Center and Chamber of Commerce she found the City's infrastructure is inadequate to support any marketing firms, and the hoteliers do not want an increase in their tax structure. She requested the City Council not approve either of these contracts at this time. John Sorgenfrei, TJA Advertising, stated he is available to answer any questions relating to Item D-1. John Barta addressed Item D-1 stating Council should consider putting out a narrower request for proposal that is focused solely on an analysis on the City's tourist assets, the City's existing market and competitor's market and the City's preferred market, and how to ® reach each of those in the future. Mr. Barta urged the City Council not to choose either contract tonight. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2011 Mayor Yates closed the hearing for public comment. Mayor Yates called for a break at 7:30 p.m.; the meeting resumed at 7:40 p.m. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL M 4UTES FOR REGULAR MEETING OF FEBRUARY 22, 2011; (ADMINISTRATION) RECOMMENDATION: This item has been pulled from the agenda. A-2 RESOLUTION NO. 14-11 ADOPTING MEMORANDUM OF UNDERSTANDING WITH THE MORRO BAY POLICE OFFICERS ASSOCIATION; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 14-11. A-3 RESOLUTION NO. 15-11 AUTHORIZING THE EXAMINATION OF SALES OR TRANSACTIONS AND USE TAX RECORDS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 15-11. A4 RESOLUTION NO. 19-11 IDENTIFYING THE PAYMENT SCHEDULE AND TRACKING OF FUNDS FOR THE REPAYMENT OF THE SALE OF THE PACIFIC/MARKET STREET PROPERTIES; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 19-11. A-5 PROCLAMATION DECLARING APRIL 2011 AS "AUTISM AWARENESS MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-6 PROCLAMATION DECLARING THE 100-YEAR ANNIVERSARY OF CALIFORNIA WOMEN HAVING THE RIGHT TO VOTE IN THE CITY OF MORRO BAY; (CITY COUNCIL) ® RECOMMENDATION: Adopt Proclamation. W MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MARCH 8, 2011 A-7 APPROVAL OF PARCEL MAP MB 08-0019 (285 MAIN ST.) WITH ACCEPTANCE OF ASSOCIATED RIGHT-OF-WAY DEDICATION AND ABANDONMENTS; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 20-11 approving the Parcel Map MB 09-0019 with the acceptance of associated Right -of -Way Dedication and Abandonment. Mayor Yates requested to pull Item A-6 from the Consent Calendar. MOTION: Councilmember Johnson moved the City Council approve the Consent Calendar with the exception of Item A-6. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) A-6 PROCLAMATION DECLARING THE 100-YEAR ANNIVERSARY OF CALIFORNIA WOMEN HAVING THE RIGHT TO VOTE IN THE CITY OF MORRO BAY; (CITY COUNCIL) Mayor Yates pulled this proclamation in order to make a presentation. MOTION: Councilmember Johnson moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 CONSIDERATION OF AN AMENDMENT TO MORRO BAY MUNICIPAL CODE TITLE 5 ADDING CHAPTER 5.50 ESTABLISHING REGULATIONS AND PROCEDURES ENTITLED "MEDICAL MARIJUANA COLLECTIVES AND COOPERATIVES'; (CITY ATTORNEY) City Attorney Robert Schultz stated in 1996 California voters enacted Proposition 215, the Compassionate Use Act, which protects qualified patients and their primary caregivers from prosecution under California laws for possession or cultivation of marijuana to treat serious illness pursuant to a doctor's recommendation. Several years later, in 2003, the state legislature enacted implementing legislation to allow qualified patients and caregivers to obtain identification cards that insulate them from arrest for cultivation and/or use of marijuana for authorized medical purposes. Although dispensaries are not expressly authorized under these laws, many individuals have used these laws as the legal backdrop to set up medical marijuana dispensaries where qualified patients and caregivers could purchase marijuana for medical use. In June 2005, Staff recommended to the City Council that they enact an interim urgency ordinance imposing a moratorium on medical marijuana dispensaries until Staff had an opportunity to propose regulations. R MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2011 The interim urgency ordinance was not adopted by City Council and Staff was directed to allow medical marijuana dispensaries pursuant to our current municipal code. Pursuant to Council direction, medical marijuana dispensaries were allowed in the City of Morro Bay in the C-1 District by obtaining a business license and with a minor use permit in the MCR District under the category of "drugs". Based upon Council's action, in 2006, the City approved a Medical Marijuana Dispensary at 780 Monterey Street. This location was in the General Commercial zoning district. Staff issued a business license since the sale of drugs (in this case medical marijuana) was an allowable use in the General Commercial zoning district. In 2007, an application was received for the establishment of a Medical Marijuana Dispensary at 2840 Main Street. This location is in the Mixed Commercial/Residential zoning district, so a minor use permit was required. Staff issued a minor use permit since the sale of drugs (in this case medical marijuana) was an allowable use in the Mixed Commercial/Residential zoning district. The minor use permit was appealed to the Planning Commission. While the appeal was pending, the City Council declared a moratorium on medical marijuana dispensaries. In 2008, after reviewing the current status of federal and state law and the associated risks and possible consequences of establishing an ordinance allowing medical marijuana dispensaries, the City Council instructed the City Attorney to prepare an ordinance that would eliminate the possibility of storefront medical marijuana ® sales in the City. Pursuant to Council's direction, Ordinance No 547 was enacted in 2009. In 2010, the City Council expressed interest in considering an ordinance that would establish provisions for locating and regulating medical marijuana dispensaries (MMDs) within the City of Morro Bay and directed the City Attorney to form a subcommittee to develop a draft ordinance regulating medical marijuana dispensaries. The subcommittee has met on numerous occasions to develop a possible approach to locating and regulating MMDs which entails specifying the zoning districts in which MMDs may be established and developing regulations governing the procedures to be followed in applying for, permitting, revoking and renewing a license required to operate an MMD. Mr. Schultz recommended the City Council review the report and attached draft Regulations and Procedures entitled "Medical Marijuana Collectives and Cooperatives", and direct staff to return with and Ordinance for Introduction and First Reading with any changes suggested by Council. u Mayor Yates opened the hearing for public comment. Betty Winholtz requested clarification on several issues such as permits fees, how many dispensaries will be allowed, the distance between a dispensary and a receptor site, how much medical marijuana will be allowed to be purchased, and ownership of dispensaries. She expressed concern that the background checks would only be performed on the owner and/or manager of the dispensary; she feels they should also be performed on all personnel and volunteers. 7 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MARCH 8, 2011 Ken Vesterfelt stated Sheriff Ian Parkinson is investigating all the current rules and regulations on medical marijuana dispensaries, and perhaps the City Council may want to consider waiting to hear his perspective and the federal regulations. David Nelson stated it is extortion to charge a sales tax on medication, such as medical marijuana. John Barta stated this is a controversial issue; however, the people spoke on this issue at the last election and Council needs to implement that decision. He said Council has considerable discretion based on a comprehensive report written by the City Attorney, and to remember there continues to be a conflict with federal law that may have to be dealt with in the future. Chris James expressed support for allowing those who have medical needs to be able to have safe access to medical marijuana. Rich Donald, Chairman of the San Luis Obispo Chapter of Americans for Safe Access, referred to a recent court decision wherein the Appellate Court believes California has the right to have medical marijuana sales. He also stated there should not be a limit on how many dispensaries are allowed if the appropriate location is available. ® Rennie Wilson stated it is imperative to have a sales tax, as well as an additional tax because of the cost that will be incurred by the City. She said the City should make this a two-part ordinance where the City has a selection process for the dispensary, and then select the appropriate zoning of where the dispensary should be located. Ms. Wilson stated the ordinance should tie the dispensary to the property. n Linda Hill, Board Member of the San Luis Obispo Chapter of Americans for Safe Access, commended Council for their compassion and support for this worthy cause. Mayor Yates closed the hearing for public comment. Mayor Yates expressed his support on moving forward with this Ordinance. He stated he is in support of receiving input from the Sheriff on this matter; however, he would like the City to continue with the process. Councilmember Johnson stated she would like to wait to receive the County Sheriff's report before moving forward with the City's Ordinance. She also said a key component is to receive feedback from the City's Police Chief. Councilmember Johnson stated she recognizes that due to the election results that the Ordinance must go forward; however, there are so many concerns that must be addressed before moving forward with this Ordinance. 0 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MARCH 8, 2011 Councilmember Borchard stated she has many concerns along with not knowing what the Sheriff's enforcement is going to be on this issue. She said the City has very limited resources for monitoring a collective dispensary. Councilmember Borchard stated she is not supportive of moving forward until these concerns have been alleviated. Councilmember Leage stated there are so many unknowns and he would like to put this issue on hold until there are more answers from the County and federal government. Councilmember Smukler stated he is interested in the Sheriff Department's comments. He suggested discussing key policy issues such as crime, primary care status, and regulating quantities. Councilmember Smukler stated he would like Council to direct the City Attorney to pursue this issue with the Sheriff. He suggested issues for a selection committee to review are local sourcing elements and quality control, working with the Sheriff's Department, potential City costs and impacts and developing a plan to cover these costs, and the review of quantity limits. Councilmember Smukler stated a City map and buffer zones would be helpful in the review of potential locations. Council had consensus that they did not want to be involved in the selection committee; the City Manager would be in charge of appointing the selection committee members who should be key City employees. Council requested the City Attorney return this item to the City Council as a draft within 45 days or less. No further action was taken on this item. B-2 COUNCIL DIRECTION ON THE 2011/2012 CITY GOALS AND BUDGET PRIORITIES; (ADMINISTRATION) City Manager Andrea Lueker stated in November 2007, the City Council determined that conducting an annual Goal Setting Process was an important part of strategic planning for the City of Morro Bay. As a result in June 2008, the City Council held their first workshop, and has continued the process each year. It is anticipated that if the City of Morro Bay continues with the goals that were established last year, including the direction on pension reform, staff is confident that it can bring to the City Council a structurally sustainable balanced budget. However, since the major revenue sources for the City are fairly stable, including a slight increase in both the Transient Occupancy Tax and Property Tax and flat Sales Tax figures, the biennial budget is not anticipated to have significant additional and available funding above and beyond previous years. Ms. Lueker recommended the City Council review the goals from 2010, the status of each goal, and makes a determination on any new goals for the upcoming year and/or continuing existing goals. It is further recommended the City Council provide input to staff on budget priorities based on the stated goals in order for the initial preparation of the 2011-2013 biennial budget documents. MINUTES - MORRO BAY CITY COUNCIL Is REGULAR MEETING — MARCH 8, 2011 Mayor Yates opened the hearing for public comment. David Nelson stated he has not seen any real street repairs other than patching in the last 10 years. He said the infrastructure should be set as a higher priority. John Barta stated it would cost tens of millions of dollars to repair the streets in the City. He said the City needs to work on bringing in more revenue into the City. Mayor Yates closed the hearing for public comment. Councilmember Smukler stated he hopes the City continues with the priority goals of developing and maintaining a structurally sustainable budget, and maintaining the City's infrastructure. He said he would like to continue with the consideration of a capital plan to stay organized, a five-year budget plan, and a pavement management plan. Councilmember Smukler stated more effort is needed revolving around the urban forest, which requires a better plan. He said it is time to focus on volunteerism and form a sub -committee relating to the City's transit program. Councilmember Smukler stated a strategy plan needs to be developed on how to resolve the challenge on the General Plan/Local Coastal Plan. ® Council consensus was to refer the Urban Forest Management Plan as a low priority goal to the Public Works Advisory Board and Recreation & Parks Commission. Council consensus was to appoint Councilmember Borchard and Councilmember Smukler to serve as the transit sub -committee to meet with staff. City Attorney Robert Schultz stated the review of the General Plan/Local Coastal Plan update will be before the City Council within the next few months. Councilmember Johnson stated she would like to see a five-year budget and long-range planning. She said the City needs to look at an Economic Development Plan to bring in some money. Councilmember Borchard stated she supports long-range strategic planning however she has concerns with the present economy. She said the City has taken great strides in selling the City property on Market Street, and creating a Facility Maintenance Fund. Mayor Yates stated it is impossible to project future expenditures with this economy Administrative Services Director Susan Slayton stated in this current economy, planning a budget more than two years ahead would be very difficult. She said some departments are creating long-range capital project plans. ® No action was taken on this item. [to] ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2011 11 Mayor Yates called for a break at 9:30 p.m.; the meeting resumed at 9:40 p.m UNFINISHED BUSINESS — None. D. NEW BUSINESS D-1 AWARD OF THE MARKETING AND ADVERTISING SERVICES CONTRACT; (ADMINISTRATION) City Manager Andrea Lueker stated the City of Morro Bay has gone through an extensive Request for Proposal (RFP) process which was reviewed at the Special Joint Meeting of the Community Promotions Committee (CPC) and the Tourism Business Improvement District Advisory Board (TBID) held on March 1, 2011. At that meeting, both the CPC and TBID, by a vote of 4-2, recommended the City Council award the Marketing and Advertising Services Contract to TJA Advertising. Ms. Lueker recommended the City Council review the recommendations from both the CPC and TBID and makes a final determination on the award of contract. Mayor Yates stated based on the vote of the Community Promotions Committee and Tourism Business Improvement District Advisory Board at the March I" meeting and their recommendation he expressed his support for TJA Advertising. Councilmember Borchard stated it was not a unanimous vote of the two boards on March 1'`. She said based on the last 18 months, she does not feel the City has received a measurable rate of return in marketing advertising. Councilmember Borchard stated she supports a more innovative approach and moving forward in a different way with social media. Councilmember Johnson suggested starting over with a new request for proposal and find out where the City's target audience is. She said she would like to know more about the relationship between the City, the Community Promotions Committee, Tourism Business Improvement District Advisory Board and the Visitor Center. Councilmember Leage stated he agrees the City should start over and submit a new request for proposal. He said the City is in no better shape than it was years ago and the targeting has been very poorly done. Councilmember Smukler stated he supports maintaining a three-year revolving request for proposal process. He said he is inclined towards the Barnett Cox & Associates proposal however he still has concerns with the cost. Councilmember Smukler stated he would prefer more dialogue on this issue before making a decision. 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2011 MOTION: Councilmember Borchard moved the City Council award the Marketing and Advertising Services Contract to Barnett Cox & Associates. The motion was seconded by Councilmember Leage and carried with Mayor Yates voting no. (4-1) D-2 DISCUSSION OF THE GREEN BUILDING INCENTIVES PROGRAM; (PUBLIC SERVICES) Public Services Director Rob Livick stated the "Green Building Incentive Program" was approved by City Council on May 26, 2009 by Resolution No. 24-09. The program was initiated to reward project proponents committed to implementing either broad or focused sustainability measures. Fee rebates vary depending on the level of commitment and/or beneficial outcomes. Integration of green building features into development projects can potentially generate energy, water and materials efficiencies, resulting in reduced operating costs of 20-80% over the life of the building. Reduced operating costs generate increased cash flow, which helps free capital for other investments. Although from a financial standpoint the incentive program is not sustainable without some source of outside funding, Staff does not anticipate a significant increase in rebate requests. Mr. Livick recommended the City Council continue the program, and direct staff to provide an annual update memo to the City Council. Council consensus was in support to continue the Green Building Incentives Program, and direct staff to provide an annual update memo to the City Council. Council further directed staff to return with a Master Fee Schedule amendment comprised of a formula for deducting the cost for the non -inspected components of the solar photovoltaic system. No further action was taken on this item. E. DECLARATION OF FUTURE AGENDA ITEMS — None. ADJOURNMENT The meeting adjourned at 10:25 p.m. Recorded by: Bridgett Kessling City Clerk E 12 City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. CITY COUNCIL/PLANNING COMMISSION. JOINT MEETING TUESDAY FEBRUARY 22, 2011 VETERANS MEMORIAL HALL - 5:00 P.M. 209 SURF ST., MORRO BAY, CA I. ESTABLISH QUORUM AND CALL MEETING TO ORDER ® II. PLEDGE OF ALLEGIANCE M. DUTIES AND RESPONSIBILITIES Pursuant to the Municipal Code Section 2.28.120 D., the Planning Commission shall meet with City Council twice each year to discuss proposed policies, programs, goals and objectives, budgeting, future planning, or any other planning matter requiring joint deliberation. W. PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council and Planning Commission on matters on this special meeting agenda may do so at this time. V. JOINT MEETING DISCUSSION ITEMS • Staff presentation regarding the status Local Coastal Plan/General Plan and Zoning Ordinance • City Attorney Presentation of Informational Material Distributed to the Planning Commissioners • Discussion of Planning Commission Roles and Responsibilities VI. ADJOURNMENT — This meeting will adjourn to the regularly scheduled City Council meeting. ® REGULAR CITY COUNCIL MEETING TUESDAY, FEBRUARY 22, 2011 VETERANS MEMORL4,L HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any ® individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. 11 A-1 APPROVAL OF CITY COUNCIL MINUTES FOR REGULAR MEETING OF ® FEBRUARY 8, 2011; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 14-11 ADOPTING MEMORANDUM OF UNDERSTANDING WITH THE MORRO BAY POLICE OFFICERS ASSOCIATION; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 14-11. A-3 RESOLUTION NO. 15-11 AUTHORIZING THE EXAMINATION OF SALES OR TRANSACTIONS AND USE TAX RECORDS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 15-11. A4 RESOLUTION RECOGNIZING THE MONTEREY CYPRESS AS THE OFFICIAL CITY TREE; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 18-11. A-5 AUTHORIZATION FOR ATTENDANCE AT THE C-MANC ANNUAL ® WASHINGTON D.C. MEETING; (HARBOR) RECOMMENDATION: Approve authorization for a two -person delegation to attend the California Marine Affairs and Navigation Conference Washington Week meetings scheduled for March 22 - March 24, 2011. A-6 ADOPT RESOLUTION NO. 16-11 APPROVING SUBMISSION OF PROPOSITION 113 PUBLIC TRANSPORTATION MODERNIZATION, IMPROVEMENT AND SERVICE ENHANCEMENT ACCOUNT GRANT APPLICATION; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 16-11. A-7 PROCLAMATION DECLARING FEBRUARY 2011 AS "GRAND JURY AWARENESS MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS REPORTS & APPEARANCES B-1 APPROVAL OF RESOLUTION 17-11 DESIGNATING $500,000 IN PARKING IN -LIEU FUNDS FOR FORTY (40) PARKING SPACES AT 714 EMBARCADERO; (CITY ATTORNEY) ® RECOMMENDATION: Adopt Resolution No. 17-11. 3 ® C. UNFINISHED BUSINESS C-1 UPDATE ON MORRO BAY TRANSIT AND APPROVE REVISING CALL -A - RIDE ELIGIBILITY POLICY; (PUBLIC SERVICES) RECOMMENDATION: Receive the update on Morro Bay Transit; and approve revising the Call -A -Ride eligibility policy to include all members of the general public, effective February 23, 2011. D. NEW BUSINESS D-1 APPROVE. PARTNERSHIP WITH MORRO BAY COMMUNITY FOUNDATION TO SELL TROLLEY ADVERTISING FOR THE 2011 SEASON AND AMEND MASTER FEE SCHEDULE; (PUBLIC SERVICES) RECOMMENDATION: Approve entering into the trolley advertising program partnership with the Morro Bay Community Foundation; and, amend the Master Fee Schedule. D-2 APPROVAL TO SEND LETTER TO THE CITY SELECTION COMMITTEE RECOMMENDING THE SELECTION OF MARY ANN REISS AS THE NOMINEE FOR APPOINTMENT TO THE CALIFORNIA COASTAL ® COMMISSION; (CITY COUNCIL) RECOMMENDATION: Approve sending recommendation letter to San Luis Obispo County City Selection Committee. r E. DECLARATION OF FUTURE AGENDA ITEMS F. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. 4 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 22, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:30 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney Jamie Boucher Deputy City Clerk Eric Endersby Harbor Operations Manager Susan Lichtenbaum Harbor Business Manager Rob Livick Public Services Director Tim Olivas Police Chief Mike Pond Fire Chief Joe Woods Recreation & Parks Director ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT — there was no Closed Session report. PUBLIC COMMENT Mimi Kalin, representing the San Luis Obispo County Grand Jury referred to Item A-7 (Proclamation Declaring February 2011 as "Grand Jury Awareness Month") and thanked the City Council for placing this Proclamation on the agenda to raise awareness about the Grand Jury. She reviewed the duties of the Grand Jury and noted the deadline to apply for a seat on next year's Grand Jury is March 18, 2011. The following people spoke on the City's Wastewater Treatment Plant upgrade project and the California Coastal Commission's response to the appeal on this project: Jack McCurdy, David Nelson, Richard Sadowski, and Richard Margesten. Barbara Doerr addressed Item A-2 (Resolution No. 14-11 Adopting Memorandum of Understanding with the Morro Bay Police Officers Association) and requested clarification on compensation to the POA. She stated it seems better to directly provide ® pay increases rather than approve somewhat hidden monetary benefits. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 22, 2011 Ms. Doerr also addressed Item A-5 (Authorization for Attendance at the C-MANC Annual Washington D.C. Meeting) stating she reviewed the City's budget and could not fmd its travel policy for City staff and elected officials; she requested the budget provide more detail. She recommended the City eliminate funding for travel and provide improved City services. Joan Solu, representing the Morro Bay Community Foundation, announced the 22°d Annual Dixon's Spaghetti Feed Dinner Fundraiser will be held on Friday, March 25 th . She also referred to Item D-1 (Approve Partnership with Morro Bay Community Foundation to Sell Trolley Advertising for the 2011 Season and Amend Master Fee Schedule) stating the partnership. with the Community Foundation would be very beneficial to the City. Ms. Solu stated Del Mar Elementary School, the only elementary school in the City, has been acknowledged as a California Distinguished School. Marla Jo Bruton addressed Item A-5 and queried the Council regarding an out of state trip to visit medical marijuana dispensaries. She also referred to the last Morro ® Bay/Cayucos JPA meeting and the discussion regarding a proposal to hire a lobbyist and that Mayor Yates and Robert Erns would converse with the staff of the lobbyist and present a report to the public. She said she finds this to be a blurry line in the Brown Act as far as elected officials becoming involved in staffs business. Ms. Bruton referred to Item D-2 (Approval to Send Letter to the City Selection Committee Recommending the Selection of Mary Ann Reiss as the Nominee for Appointment to the California Coastal Commission) and asked how the determination was made for the recommended appointment. Keith Taylor, Friend of the Fire Department, gave an update on Phase 2 of the Fire Department renovations. Virginia Hiramatsu, representing Relay for Life, announced the team fundraiser for Relay for Life will be a Bunco "Against Cancer' Party held on March 161h at 6:00 p.m. at St. Timothy's Church; there will be a Community Kick -Off on March 24a' at 6:00 p.m. at the Embarcadero Grill; and the P Annual Relay for Life event is the first weekend in August at Morro Bay High School. Craig Schmidt, CEO for the Morro Bay Chamber of Commerce, announced the Chamber of Commerce Chili Cook -Off and Beer Fest will be held on Saturday, March 12a' from noon — 5:00 p.m. at the Morro Bay Community Center. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 22, 2011 Janice Peters stated working with the California Coastal Commission is a process of education, information and negotiations and a lobbyist for the City comes in helpful for the City when staff is not available to attend meetings. She also addressed Item D-2 and expressed her support for the appointment of Mary Ann Reiss to the Coastal Commission. Ms. Peters also announced Fundraiser Follies "Divas & Crooners" would be held this weekend, February 26 & 27, doors open at 6:30 p.m. at the Morro Bay Community Center. Dan Glesmann addressed Item A-2 stating as a responsible employer, the City has a duty to partner with its current employees to develop and provide for sustainable pensions; in turn the City Council also has a responsibility to its citizens to develop and maintain sustainable budgets in order to deliver vital public services. He said at this time the largest threat to a sustainable budget is the escalating employee benefit costs. Mr. Glesmann stated the request in the Memorandum of Understanding with the Police Officers Association represents a need to increase by an uncertain amount with no economic concessions in return. ® Garry Johnson stated he attended the Coastal Commission meeting when they reviewed the City's boardwalk, and he felt the Commission was disrespectful to those who addressed them. He also noted there was disrespect shown by a member of the public who was not in favor of the boardwalk. Anne Reeves asked if the Council meetings are going to become a platform to land blast people. Gary Hixson stated he has the Gary Hixson Show which airs three days per week. Mayor Yates closed the hearing for public comment. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-] APPROVAL OF CITY COUNCIL MINUTES FOR REGULAR MEETING OF FEBRUARY 8, 2011; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. 2 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 22, 2011 A-2 RESOLUTION NO. 14-11 ADOPTING MEMORANDUM OF UNDERSTANDING WITH THE MORRO BAY POLICE OFFICERS ASSOCIATION; (ADMINISTRATIVE SERVICES) RECOMMENDATION: This item was pulled from the agenda. A-3 RESOLUTION NO. 15-11 AUTHORIZING THE EXAMINATION OF SALES OR TRANSACTIONS AND USE TAX RECORDS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: This item was pulled from the agenda. A4 RESOLUTION RECOGNIZING THE MONTEREY CYPRESS AS THE OFFICIAL CITY TREE; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 18-11. A-5 AUTHORIZATION FOR ATTENDANCE AT THE C-MANC ANNUAL ® WASHINGTON D.C. MEETING; (HARBOR) RECOMMENDATION: Approve authorization for a two -person delegation to attend the California Marine Affairs and Navigation Conference Washington Week meetings scheduled for March 22 - March 24, 2011. A-6 ADOPT RESOLUTION NO. 16-11 APPROVING SUBMISSION OF PROPOSITION 1B PUBLIC TRANSPORTATION MODERNIZATION, IMPROVEMENT AND SERVICE ENHANCEMENT ACCOUNT GRANT APPLICATION; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 16-11. A-7 PROCLAMATION DECLARING FEBRUARY 2011 AS "GRAND JURY AWARENESS MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember Johnson pulled Item A-6 from the Consent Calendar. MOTION: Councilmember Johnson moved the City Council approve Items A-1, A4 A-5 and A-7 of the Consent Calendar. The motion was seconded by ® Councilmember Borchard and carried unanimously. (5-0) n ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 22, 2011 A-6 ADOPT RESOLUTION NO. 16-11 APPROVING SUBMISSION OF PROPOSITION 1B PUBLIC TRANSPORTATION MODERNIZATION, IMPROVEMENT AND SERVICE ENHANCEMENT ACCOUNT GRANT APPLICATION; (PUBLIC SERVICES) Councilmember Johnson requested clarification regarding the fiscal impact noted in the staff report. Management Analyst Janeen Burlingame responded there is no cost to the application process of the grant; she noted costs will come later in the process of the project. Councilmember Johnson clarified that this approval is for the grant application only. MOTION: Councilmember Johnson moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Mayor Yates and carried unanimously. (5-0) B. PUBLIC HEARINGS, REPORTS & APPEARANCES is B-1 APPROVAL OF RESOLUTION 17-11 DESIGNATING $500,000 IN PARKING IN -LIEU FUNDS FOR FORTY (40) PARKING SPACES AT 714 EMBARCADERO; (CITY ATTORNEY) City Attorney Robert Schultz stated parking -in -lieu fees were established and 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. In 2001, the City purchased the property located at the northeast comer of Market Avenue and Pacific Street for $500,000 using parking -in -lieu funds. The property at the northeast comer of Market Avenue and Pacific Street provided the City with 40 public parking spaces. In 2002, the City purchased the property located at 714 Embarcadero which currently provides the City with 60 parking spaces. The funds for this purchase, however, were not taken from the parking -in -lieu fund since the City was not sure ultimately what the long term use for this property would be. In 2009, the City Council determined that the property at the northeast comer of Market Avenue and Pacific Street was underutilized because of its location away from the Embarcadero and Downtown area and has recently sold the property. Now that the property at the comer of Pacific and Market has been sold, it is necessary to designate a project for the use of the $500,000 in -lieu parking fee fund consistent with the requirements of said Section 17.44.020 A7 and Government Code Section 66001(d). Since the property located at 714 Embarcadero was purchased using general funds and currently provides the City with 60 ® parking spaces that are unencumbered by the parking in -lieu fund, the City can designate 40 parking spaces at 714 Embarcadero as a project for parking in -lieu funds. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 22, 2011 Mr. Schultz recommended the City Council adopt Resolution No. 1.7-11 designating $500,000 in parking -in -lieu funds for 40 parking spaces at 714 Embarcadero. Mayor Yates opened the hearing for public comment. Barbara Doerr suggested using these funds for needed parking in the City. Mayor Yates closed the hearing for public comment. MOTION: Councilmember Smukler moved the City Council adopt Resolution No. 17- 11 designating $500,000 in parking -in -lieu funds for 40 parking spaces at 714 Embarcadero; and, direct staff to return with a resolution with a payment schedule for the proceeds of the sale of the Market/Pacific Street properties with Council's managerial policy for those funds. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) C. UNFINISHED BUSINESS C-1 UPDATE ON MORRO BAY TRANSIT AND APPROVE REVISING CALL-A- 0 RIDE ELIGIBILITY POLICY; (PUBLIC SERVICES) Management Analyst Janeen Burlingame stated due to repeated cuts from the State in Transportation Development Act (TDA) funds over the past several fiscal years, resulting in not having enough TDA funds to continue operating Dial -a -Ride, the Council, after several hearings to discuss what type of local transit service could be provided with the State funding allocated to the City, approved changing to a flex fixed route (Morro Bay Transit) effective July 1, 2010. The flex fixed route is a combination fixed route and curb -to -curb (CAR) service that deviates off the fixed route to pick up/drop off passengers who have scheduled a trip before returning on route to the next fixed route stop. Morro Bay Transit fixed route and CAR service has been in operation for almost 8 months with 7 months of ridership data available for review. For the period July 1, 2010 through January 31, 2011, total ridership was 7,212 with average daily ridership being 50 riders per day and the average riders per vehicle service hour being 5 riders per hour. Fixed route trips made up 90% of total Morro Bay Transit trips with CAR making up the other 10%. Ms. Burlingame recommended the City Council receive this update, and approve revising the Call -A -Ride eligibility policy to include all members of the general public, effective February 23, 2011. MOTION: Councilmember Smukler moved the City Council approve revising the Call -a -Ride eligibility policy to include all members of the general public, effective February 23, 2011; and, direct staff to return with the final transit efficiency group results for Council evaluation and action. The motion ® was seconded by Councilmember Leage and carried unanimously. (5-0) Mayor Yates called for a break at 8:10 p.m.; the meeting resumed at 8:20 p.m. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 22, 2011 D. NEW BUSINESS D-1 APPROVE PARTNERSHIP WITH MORRO BAY COMMUNITY FOUNDATION TO SELL TROLLEY ADVERTISING FOR THE 2011 SEASON AND -AMEND MASTER FEE SCHEDULE; (PUBLIC SERVICES) Management Analyst ]aneen Burlingame stated the City received a proposal from the Morro Bay Community Foundation (MBCF) to form a partnership to sell trolley advertising for the 2011 season. Over the years, the trolley advertising program has been managed by a combination of City, Chamber of Commerce and MV Transportation staff. At different times, the City had partnerships with the Chamber of Commerce and MV Transportation to garner advertisers for the trolley with the revenue generated split evenly between the City and the agency involved with managing the advertising program. Other work -related commitments limited the effectiveness of being able to sell all advertising spaces available on the trolleys and management of the advertising program eventually came back to City staff that also had other commitments that limited the ability to sell all spaces. The result has been the loss of potential revenue to the trolley program that could be used to offset general fund expenditures for operations. Staff believes the proposal from the MBCF offers a more effective way to sell trolley advertising spaces than has been done in the past due to the incentive for the MBCF to actively pursue the sale of all spaces to generate more revenue for the organization to further their mission to assist ® children from financially challenged families to participate in recreation programs offered by the Recreation and Parks Department. Because of this, there is the potential to increase the amount of advertising revenue for the trolley program. Ms. Burlingame recommended the City Council approve entering into the trolley advertising program partnership with the MBCF. MOTION: Councilmember Borchard moved the City Council approve entering into the trolley advertising program partnership with the Morro Bay Community Foundation; and, amend the Master Fee Schedule. The motion was seconded by Councilmember Leage and carried unanimously. (5-0) D-2 APPROVAL TO SEND LETTER TO THE CITY SELECTION COMMITTEE RECOMMENDING THE SELECTION OF MARY ANN REISS AS THE NOMINEE FOR APPOINTMENT TO THE CALIFORNIA COASTAL COMMISSION; (CITY COUNCIL) Mayor Yates stated Pismo Beach Councilmember Mary Ann Reiss has served as the Central Coast representative on the California Coastal Commission (CCC) since December 2010 after being appointed by former Governor Schwarzenegger. Previously, she was the alternate for Katcho Achadjian. As alternate, Councilmember Reiss has participated in several CCC meetings, and has often appeared before the CCC on behalf of Pismo Beach issues. Her long time experience in Pismo Beach city government and with coastal issues makes her an ideal candidate to continue to represent the South isCentral Coast. Mayor Yates recommended the City Council approve sending a letter to the City Selection Committee recommending the selection of Councilmember Mary Ann Reiss as the nominee for appointment to the California Coastal Commission. 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 22, 2011 Councilmember Smukler stated the primary consideration should be that there is local representation on the Coastal Commission. He suggested adding to the letter of recommendation: "or another San Luis Obispo County representative". MOTION: Councilmember Borchard moved the City Council approve sending a letter to the City Selection Committee recommending the selection of Councilmember Mary Ann Reiss as the nominee for appointment to the California Coastal Commission. The motion was seconded by Councilmember Johnson and carved with Councilmember Smukler voting no. (4-1) E. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Johnson requested to agendize a discussion on an aggressive economic incentives program to revitalize the City's Old Town and North Morro Bay; Council concurred. Councilmember Leage requested to agendize a discussion on the beautification and A paving of the Morro Rock parking area; Council concurred. ® Councilmember Smukler requested to agendize a discussion on Bike Racks with Dedication Plaques Program; Council concurred. ADJOURNMENT The meeting adjourned at 8:45 p.m. Recorded by: Jamie Boucher Deputy City Clerk H ® City. of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — TUESDAY, FEBRUARY 8, 2011 CLOSED SESSION — TUESDAY, FEBRUARY 8, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA ® CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel. • Property Lease Site 75-77/75W-77W; 699 Embarcadero Negotiating Parties: Morro Bay Marina, Inc. and City of Morro Bay Negotiations: Lease Terms and Conditions IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTL4L AND EXEMPT FROM DISCLOSURE. ® PUBLIC SESSION — TUESDAY, FEBRUARY 8, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, is staff. or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy . will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR REGULAR MEETINGS OF JANUARY 11, 2011 AND JANUARY 25, 2011; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. 2 E E E A-2 APPOINTMENT OF VOTING DELEGATES TO THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY; (ADMINISTRATION) RECOMMENDATION: Appoint Mayor Yates as the City's representative of the California Joint Powers Insurance Authority, and appoint the City Manager and City Attorney as alternates. A-3 ADOPTION OF ORDINANCE NO. 565 AMENDING SECTION 2.08.010 OF THE MORRO BAY MUNICIPAL CODE REGARDING COUNCIL MEETINGS TIME AND DATE; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 565. A4 ADOPTION OF ORDINANCE NO. 566 AUTHORIZING AMENDMENT OF SECTION 20475 (DIFFERENT LEVEL OF BENEFITS; SECTION 21363.1 (3% @ 55 FULL FORMULA); AND SECTION 20037 (THREE- YEAR FINAL COMPENSATION) FOR NEW SWORN HIRES IN THE FIRE DEPARTMENT; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Ordinance No. 566. A-5 2010 ANNUAL WATER REPORT; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 12-11. B. PUBLIC HEARINGS, REPORTS & APPEARANCES — NONE. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 PRESENTATION & FORMAL RECOGNITION OF THE "OFFICIAL CITY TREE OF MORRO BAY" VOTE; (COUNCIL) RECOMMENDATION: Based on the final results of the public voting process, the Morro Bay Volunteer Tree Committee proposes the Council vote to formally recognize the Cypress Cupressus macrocarpa as the Official City Tree of Morro Bay. D-2 REPORT FROM THE CITIZENS OVERSIGHT COMMITTEE PURSUANT TO MORRO BAY MUNICIPAL CODE (MBMC) SECTION 3.22.120; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Receive report, and take action as determined. 3 D-3 RESOLUTION NO. 13-11 ADOPTING THE MID -YEAR BUDGET AMENDMENTS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 13-11. D4 DISCUSS OPTIONS FOR AMENDING PARKING REQUIREMENTS FOR NORTH MORRO BAY; (PUBLIC SERVICES) RECOMMENDATION: Review options and direct staff accordingly. D-5 DISCUSSION ON THE PREPARATION OF A BIG BOX ORDINANCE WHICH WOULD REGULATE THE SIZE AND APPEARANCE OF BIG BOX STORES; (PUBLIC SERVICES) RECOMMENDATION: Review report, and direct staff on whether to draft a Big -Boa ordinance and if so, provide direction regarding language for such an ordinance. D-6 DISCUSSION OF TOPICS TO BE DISCUSSED AT THE JOINT CITY COUNCIL/PLANNING COMMISSION MEETING, FEBRUARY 22, 2011; (PUBLIC SERVICES) RECOMMENDATION: Discuss potential topics for the February 22, 2011 joint is City Council/Planning Commission meeting. E. DECLARATION OF FUTURE AGENDA ITEMS u F. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. E ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — FEBRUARY 8, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Johnson moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Smukler and unanimously carried. (5-0) Mayor Yates read the Closed Session Statement. CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY ® TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel. • Property Lease Site 75-77/75W-77W; 699 Embarcadero Negotiating Parties: Morro Bay Marina, Inc. and City of Morro Bay Negotiations: Lease Terms and Conditions The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:30 P.M. MOTION: Councilmember Borchard moved the meeting be adjourned. The motion was seconded by Councilmember Smukler and unanimously carried. (5-0) The meeting adjourned at 5:30 p.m. E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY.8, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Robert Schultz Bridgett Kessling Eric Ender sby Susan Lichtenbaum Rob Livick Tim Olivas Mike Pond Susan Slayton Kathleen Wold Joe Woods City Attorney City Clerk Harbor Operations Manager Harbor Business Manager Public Services Director Police Chief Fire Chief Administrative Services Director Planning Manager Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & I' RINXIWAKII&I CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session and took action on Lease Site 75-77/75W-77W located at 699 Embarcadero. The City Council granted the written request from Morro Bay Marina, Inc. that the City receives monthly rental payments. PUBLIC COMMENT Anthony Hoffa and representatives of the Morro Bay Gorilla Gardening Club offered the City Council plants and thanked the City for supporting the City's urban forest and urban gardeners. Rick and Claire Grantham stated for public information that a fire started in their clothes dryer which was caused by a dirty vent. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 8, 2011 D'Onna Kennedy stated the Central Coast Veterans Support Group will be meeting at the Eagles Lodge on February 22°d at 6:00 p.m. She also announced a variety of free services are available to lower -income households throughout San Luis Obispo County through the Energy Conservation Services. Barbara Doerr referred to Closed Session Item CS-2 of the January I Vh City Council meeting, and Item D-1 of the January 25'h City Council meeting, both relating to lease negotiation discussions where a specific council member attended the January IIth Closed Session meeting and stepped down due to a conflict of interest at the January 25lb meeting. Ms. Doerr asked if this council member had a conflict of interest when he participated in the Closed Session item at the January I Ith meeting. Betty Winholtz addressed Item D4 (Discuss Options for Amending Parking Requirements for North Morro Bay) stating all streets perpendicular and intersecting North Main Street are residential streets. She said to reduce off-street parking requirements would push business- parking onto these residential streets, which already have limited parking for its residents and visitors. Ms. Winholtz stated new development ® should be considered; however, due to the lack of statistical information regarding the current situation, this item should be continued and heard after more important planning issues such as the Sign Ordinance or General Plan update. Janice Peters announced the 4`h Annual Fundraiser Follies will be held on February 25 h and 26th at 7:00 p.m. and will be held at the Morro Bay Community Center. Andrea Klipfel announced the team fundraiser for Relay for Life will be a Bunco "Against Cancer" Party held on March 16'h at 6:00 p.m. at St. Timothy's Church; there will be a Community Kick -Off on March 24'h at 6:00 p.m. at the Embarcadero Grill; and the Relay for Life event is the first weekend in August at Morro Bay High School. Richard Margesten expressed concern regarding Brown Act violation due to the lack of public comment allowed on all agenda items at City Council and Mono Bay/Cayucos JPA meetings. Mayor Yates closed the hearing for public comment. El 3 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 8, 2011 A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR REGULAR MEETINGS OF JANUARY 11, 2011 AND JANUARY 25, 2011; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 APPOINTMENT OF VOTING DELEGATES TO THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY; (ADMINISTRATION) " RECOMMENDATION: Appoint Mayor Yates as the City's representative of the California Joint Powers Insurance Authority, and appoint the City Manager and City Attorney as alternates. A-3 ADOPTION OF ORDINANCE NO. 565 AMENDING SECTION 2.08.010 OF ® THE MORRO BAY MUNICIPAL CODE REGARDING COUNCIL MEETINGS TIME AND DATE; (CITY ATTORNEY) El RECOMMENDATION: Adopt Ordinance No. 565. A-4 ADOPTION OF ORDINANCE NO. 566 AUTHORIZING AMENDMENT OF SECTION 20475 (DIFFERENT LEVEL OF BENEFITS; SECTION 21363.1 (3% @ 55 FULL FORMULA); AND SECTION 20037 (THREE- YEAR FINAL COMPENSATION) FOR NEW SWORN HIRES IN THE FIRE DEPARTMENT; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Ordinance No. 566. A-5 2010 ANNUAL WATER REPORT; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 12-11. Councilmember Borchard pulled Item A-2 of the Consent Calendar. MOTION: Councilmember Borchard moved the City Council approve the Consent Calendar with the exception of Item A-2. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 8, 2011 A-2 APPOINTMENT OF VOTING DELEGATES TO THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY; (ADMINISTRATION) Councilmember Borchard stated since the Mayor does not attend the CJPIA Risk Management meetings, she would prefer to keep it consistent and appoint the City Manager and/or the City Attorney as the designated representative of the City. MOTION: Councilmember Borchard moved the City Council appoint the City Manager and/or the City Attorney as the official representative(s) of the City of Morro Bay on the California Joint Powers Insurance Authority. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) B. PUBLIC HEARINGS, REPORTS & APPEARANCES — NONE. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS ® D-1 PRESENTATION & FORMAL RECOGNITION OF THE "OFFICIAL CITY TREE OF MORRO BAY" VOTE; (COUNCIL) Councilmember Smukler stated nearly 500 citizens voted for what tree they thought represented the City of Morro Bay. The Volunteer Tree Committee came up with five trees with strong historical significance in Morro Bay. The Cypress got more than double the votes of any other tree, 194 votes. Second place went to the tree we call the Red Flowering Eucalyptus, which is now called Corymbia frcifolia and was planted a few decades ago as the premier street tree in the Downtown Business District. Designation of an official city tree or city flower recognizes their special connection to the community and creates an opportunity to publicize and market these specimens with pride. Councilmember Smukler stated based on the final results of the public voting process, the Morro Bay Volunteer Tree Committee proposes the Council vote to formally recognize the Cypress Cupressus macrocarpa as the official City tree of Morro Bay. Council received a presentation from the Morro Bay Volunteer Tree Committee. MOTION: Councilmember Smukler moved the City Council accept the results as presented and identify the Monterey Cypress as the official City tree for Morro Bay; and, direct staff to return with a resolution adopting the Monterey Cypress as the official City tree and to include the vote tally in the resolution. The motion was seconded by Councilmember Johnson and ® carried unanimously. (5-0) 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 8, 2011 D-2 REPORT FROM THE CITIZENS OVERSIGHT COMMITTEE PURSUANT TO MORRO BAY MUNICIPAL CODE (MBMC) SECTION 3.22.120; (ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton stated pursuant to Morro Bay Municipal Code Section 3.22.120, the Citizens Oversight Committee met on December 8, 2010 to review the 2009/10 unaudited transactions and 2010/11 year -to -daze transactions for the District Transaction Tax (Measure Q i/2 cent sales tax) Fund. The Committee was very pleased with the 2009/10 uses of Measure Q funds, and had no issuestadjustments with any of the expenditures. The members did provide a letter with comments, and one, in particular, needs further explanation/background, the debt service for Fire Station #1 Administrative Building. Ms. Slayton recommended the City Council accept the report, and take action as necessary. Barbara Spagnola, representing the Citizens Oversight Committee, reported on the Committee's findings and conclusions to the City Council for their review. MOTION: Mayor Yates moved the City Council: 1) accept the recommendations of ® the Citizens Oversight Committee; 2) direct staff to implement the recommendations as stated in the Committee's report; and, 3) direct staff to develop an informational kiosk, and bring recommendations back to Council. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) 2 Mayor Yates called for a break at 7:03 p.m.; the meeting resumed at 7:13 p.m. D-3 RESOLUTION NO. 13-11 ADOPTING THE MID -YEAR BUDGET AMENDMENTS; (ADMINISTRATIVE SERVICES) Administrative Services Director Susan Slayton presented the 2010/11 mid -year performance reports along with requested budget amendments, noting the economy is stabilizing, and Morro Bay is more fortunate than the other cities in the County, as we have not suffered similar sales and property tax losses due to our uniqueness (no "big box" stores, no auto dealers). The City has weathered this recession with very little financial loss, again compared to other areas in the County, State and nation. Ms. Slayton recommended the City Council adopt Resolution No. 13-11 authorizing the budget amendments as proposed in the staff report. Council discussed the 2010/11 mid -year performance reports along with requested budget amendments, and made the following motions: 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 8, 2011 MOTION: Mayor Yates moved the City Council approve the Police Department funding of $9,000 from Measure Q funds, and approve Fire Department funding of $38,000 from Measure Q funds. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) MOTION: Councilmember Borchard moved the City Council defer discussion on the energy upgrades to buildings to the June 2011 budget meeting and look at alternative sources for funding. The motion was seconded by Councilmember Johnson and carried with Mayor Yates voting no. (4-1) MOTION: Mayor Yates moved the City Council direct staff to identify funding from various travel account funds and the balance from General Fund Reserves in order to send the Planning Commission and two staff members to the League of California Cities Planners Institute Conference. The motion was seconded by Councilmember Borchard and carried with Mayor Yates voting no. (4-1) MOTION: Mayor Yates moved the City Council deny funding the transit fund an additional $21,500. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) MOTION: Mayor Yates moved the City Council authorize the Harbor Department to amend its budget for $7,000 with the goal of folding that into their budget but if needed they can take it from unallocated funds. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) MOTION: Councilmember Borchard moved the City Council adopt Resolution No. 13-11 approving all the additional changes to the mid -year budget as stated in the staff report. The motion was seconded by Councilmember Leage and carried unanimously. (5-0) D4 DISCUSS OPTIONS FOR AMENDING PARKING REQUIREMENTS FOR NORTH MORRO BAY; (PUBLIC SERVICES) Planning Manager Kathleen Wold stated recently there have been a few instances where vacant buildings located in the North Main Street area have had difficulty establishing new business. One issue when establishing a new business has been the requirement to provide additional parking if the new use is more intense and therefore requires additional parking. At the December 13, 2010 City Council meeting, Councilmember Borchard requested staff provide a report on the status of parking in the North Main Street area to ® include options for modifications or amendments to City requirements which would 7 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 8, 2011 address buildings where the number of stalls is nonconforming to today standards. This report gives a broad overview of the situation occurring in the North Main Street area and a few of the possible solutions to the problem. Ms. Wold recommended the City Council consider the issue and direct staff accordingly. MOTION: Councilmember Borchard moved the City Council direct staff to create a specific area map with boundaries in the North Morro Bay area for an exemption to Section 17.44.020 of the Morro Bay Municipal Code. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) Mayor Yates called for a break at 8:34 p.m.; the meeting resumed at 8:44 p.m. D-5 DISCUSSION ON THE PREPARATION OF A BIG BOX ORDINANCE WHICH WOULD REGULATE THE SIZE AND APPEARANCE OF BIG BOX STORES; (PUBLIC SERVICES) City Attorney Robert Schultz stated the City Council directed staff to bring back a report on a "big -box ordinance." A big -box ordinance basically regulates the size and appearance of big -box stores and the amount of nontaxable (grocery) items the store is permitted to sell. While the development of big -box businesses may provide an economical and timesaving convenience to shoppers and increased tax revenues to cities, if they are not regulated, big -box businesses may have potential negative community impacts such as: urban blight, lower employee wages, the reduction of smaller local businesses and changes to the aesthetics of neighborhoods. This issue was once reviewed by City Council in 1998; however, no further action was taken. The City Council requested this item be placed on the City Council Agenda Tracking List as a "pending" item. No further action was taken on this item. D-6 DISCUSSION OF TOPICS TO BE DISCUSSED AT THE JOINT CITY COUNCIL/PLANN NG COMMISSION MEETING, FEBRUARY 22, 2011; (PUBLIC SERVICES) Public Services Director Rob Livick stated in anticipation of the joint City Council/ Planning Commission meeting on February 22, 2011, the Planning Commission discussed potential topics at their February 7, 2011 meeting, which he presented to the City Council. Mr. Livick recommended the City Council also consider and discuss ® potential topics for the joint meeting. 91 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 8, 2011 Council agreed to the following topics for the joint meeting with the Planning Commission: • Staff presentation regarding the status on the Local Coastal Plan/General Plan and Zoning Ordinance; and • City Attorney Presentation of Informational Material Distributed to the Planning Commissioners • Discussion of Planning Commission Role and Responsibilities. No further action was taken on this item. E. , DECLARATION OF FUTURE AGENDA ITEMS Councilmember Smukler requested to agendize a budget workshop report focused on priorities to give staff direction; Council concurred. Councilmember Smukler requested to agendize a.quarterly budget report to be placed on the Consent Calendar; Council concurred. ICouncilmember Smukler requested to agendize a discussion on the Call -a -Ride Expansion Concept; Council,concurred. Councilmember Johnson requested to agendize a discussion on granny units; Council concurred. ADJOURNMENT The meeting adjourned at 9:39 p.m. Recorded by: ,---6 . 1+ Bridgett Kessling City Clerk 9 City of .Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The.City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — TUESDAY, JANUARY 25, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST.; MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS ® CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. ® • Your participation in City Council meetings is welcome and your courtesy will be appreciated. ® In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. M C A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE REGULAR MEETING OF JANUARY 11, 2011; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF RESOLUTION 11-11 AMENDING THE COUNCIL POLICIES & PROCEDURES MANUAL REGARDING REGULAR MEETING TIMES AND PLACING ITEMS ON THE AGENDA; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 11-11. A-3 AUTHORIZATION TO REPLACE THE ASSISTANT ENGINEER POSITION IN THE UTILITIES/CAPITAL PROJECTS DIVISION; (PUBLIC SERVICES) RECOMMENDATION: Authorize the replacement of the Assistant Engineer position, revise the salary schedule, and authorize the backTilling of any successful internal candidate's position. A-4 AWARD OF CONTRACT TO BROUGH CONSTRUCTION, INC. OF ARROYO GRANDE, CA FOR THE PROJECT NO. MB-2010-WI: DESAL PRODUCT WATER LINE REPLACEMENT; (PUBLIC SERVICES) RECOMMENDATION: Waive a minor bid irregularity and award the project contract to Brough Construction, Inc., in the amount of $149,181.00. A-5 ACCEPTANCE OF THE COMMUNITY -WIDE AND GOVERNMENT OPERATIONS 2005 BASELINE GREENHOUSE GAS EMISSIONS INVENTORY REPORT; (PUBLIC SERVICES) RECOMMENDATION: Receive report for information and file. ® B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I INTRODUCTION AND FIRST READING OF ORDINANCE NO. 566 AUTHORIZING AMENDMENT OF SECTION 20475 (DIFFERENT LEVEL OF BENEFITS; SECTION 21363.1 (3% @ 55 FULL FORMULA); AND SECTION 20037 (THREE-YEAR FINAL COMPENSATION) FOR NEW SWORN HIRES IN THE FIRE DEPARTMENT; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Approve the introduction and first reading of Ordinance No. 566 authorizing the amendment of Different Level of Benefits, 3% @ 55 Full Formula and Three -Year Final Compensation for new sworn hires in the Fire Department. C. C-1 RESOLUTION ON CREATION AND DETAILS OF A FACILITY MAINTENANCE ACCOUNT, TO INCLUDE A PRIORITIZED LIST OF PROJECTS AND COSTS; (RECREATION & PARKS) RECOMMENDATION: Approve Resolution 10-11 to establish a fund for General Fund Deferred Maintenance for the maintenance and management of City -owned real property. ® C-2 CONTINUED DISCUSSION ON THE VISITORS CENTER; (ADMINISTRATION) E RECOMMENDATION: Review the progress that has been made on the direction provided to staff from the November 8, 2010 City Council meeting, and direct staff accordingly. D. NEW BUSINESS D-1 RESOLUTION AUTHORIZING THE HARBOR BUSINESS MANAGER TO EXECUTE LEASE RENTAL PAYMENT PLANS TO ASSIST EMBARCADERO TIDELANDS LEASEHOLDERS WITH CASH FLOW AND TO RETAIN EMBARCADERO BUSINESSES; (HARBOR) RECOMMENDATION: Adopt Resolution No. 09-11. D-2 DISCUSSION OF INSTITUTING URGENCY INTERIM ORDINANCE PROHIBITING WIND TURBINES FOR 45 DAYS; (PUBLIC SERVICES) RECOMMENDATION: Discuss roof -top wind turbines and decide if the City Council wants to consider a 45-day moratorium on their installation. 3 ® D-3 DISCUSSION OF CHANGE OF MEETING DATES AND TIMES, AND NUMBER OF BOARD MEMBERS FOR COMMISSIONS AND ADVISORY BOARDS; (CITY ATTORNEY) RECOMMENDATION: Approve a change of meeting dates and/or times for the Recreation and Parks Commission, Public Works Advisory Board and Planning Commission; reducing the Recreation and Parks Commission and Public Works Advisory Board to six meetings each year, alternating months; and, reducing the number of board members from seven to five for both the Recreation and Parks Commission and Public Works Advisory Board. E. DECLARATION OF FUTURE AGENDA ITEMS F. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO ® THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MH,L'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. El ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. E 11 Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Kessling Eric Endersby Susan Lichtenbaum Rob Livick Tim Olivas Mike Pond Susan Slayton Dylan Wade City Manager . City Attorney City Clerk Harbor Operations Manager Harbor Business Manager Public Services Director Police Chief Fire Chief Administrative Services Director Utilities/Capital Projects Manager ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT — there was no Closed Session report. PUBLIC COMMENT Dan Rivoire, Executive Director of the San Luis Obispo County Bicycle Coalition, expressed appreciation to the City for the road and bicycle lane improvements made in Morro Bay. Dan Reddell read a statement from Chamber of. Commerce President John Weiss providing the community with an update on the Chamber of Commerce. Joan Solu, Chair of the Tourism Business Improvement District Advisory Board reviewed recommendations made by the Advisory Board relating to the Visitors Center. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2011 Betty Winholtz referred to Item A-2 (Approval Of Resolution 11-11 Amending the Council Policies & Procedures Manual Regarding Regular Meeting Times and Placing Items on the Agenda) — specifically Policy 1.2, stating to allow the Mayor unlimited access as to what can be placed on the agenda while other members of Council need consensus is unfair; she recommended removing this policy. She also referred to Item C-1 (Resolution on Creation and Details of a Facility Maintenance Account, to include a Prioritized List of Projects and Costs) and requested clarification on the priority ranking of the projects and costs of specific projects that were listed in the staff report. Ms. Winholtz also recommended the consideration of a public bathroom in the downtown area. Ms. Winholtz referred to Item C-2 (Continued Discussion on the Visitors Center) and requested clarification on why City funds are being used to pay wages, taxes and billboard items. She also referred to D-3 (Discussion of Change of Meeting Dates and Times, and Number of Board Members for Commissions and Advisory Boards) stating she is disappointed that Council would pigeon -hole the Recreation & Parks Commission and Public Works Advisory Board for reduction in membership and frequency in meeting times. Melody DeMeritt, Chair of the Local Chapter of the Sierra Club, referred to a report ® received by City staff from the Coastal Commission regarding the upgrade to the Wastewater Treatment Plant. She said the Sierra Club has filed an appeal of the City Council's approval of the Environmental Impact Report for the upgrade to the Wastewater Treatment Plant to the Coastal Commission. Barry Brannin announced for public information that he has forms in order to file any appeal to the Coastal Commission. John Barta referred to Item C-2 stating this is not the time to continue as in times past; it is time to look at the big picture and move forward. Bob Crizer addressed Items A-5 (Acceptance of the Community -Wide and Government Operations 2005 Baseline Greenhouse Gas Emissions Inventory Report) and noted this is a generational issue. He also addressed Item D-2 (Discussion of Instituting Urgency Interim Ordinance Prohibiting Wind Turbines for 45 Days) stating he is working towards providing renewable energy at a low cost to residents and businesses by attaching wind turbines to roof tops. Mr. Crizer stated there is not a height limit issue with the wind turbines, and requested Council's support in allowing renewable energy in the City. Tom Gregory requested information on the City's plans for permitting medical marijuana dispensaries in the City. ® Mayor Yates closed the hearing for public comment. F1 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2011 A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE REGULAR MEETING OF JANUARY 11, 2011; (ADMINISTRATION) RECOMMENDATION: This item was pulled from the agenda. A-2 APPROVAL OF RESOLUTION 11-11 AMENDING THE COUNCIL POLICIES & PROCEDURES MANUAL REGARDING REGULAR MEETING TIMES AND PLACING ITEMS ON THE AGENDA; (CITY ATTORNEY) ® RECOMMENDATION: Adopt Resolution No. 11-11. A-3 AUTHORIZATION TO REPLACE THE ASSISTANT ENGINEER POSITION IN THE UTILITIES/CAPITAL PROJECTS DIVISION; (PUBLIC SERVICES) RECOMMENDATION: Authorize the replacement of the Assistant Engineer position, revise the salary schedule, and authorize the backfilling of any successful internal candidate's position. A-4 AWARD OF CONTRACT TO BROUGH CONSTRUCTION, INC. OF ARROYO GRANDE, CA FOR THE PROJECT NO. MB-2010-WI: DESAL PRODUCT WATER LINE REPLACEMENT; (PUBLIC SERVICES) RECOMMENDATION: Waive a minor bid irregularity and award the project contract to Brough Construction, Inc., in the amount of $149,181.00. A-5 ACCEPTANCE OF THE COMMUNITY -WIDE AND GOVERNMENT OPERATIONS 2005 BASELINE GREENHOUSE GAS EMISSIONS INVENTORY REPORT; (PUBLIC SERVICES) RECOMMENDATION: Receive report for information and file. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2011 Councilmember Smukler pulled Items A-2 and A-3 from the Consent Calendar. MOTION: Councilmember Borchard moved the City Council approve Items A4 and A-5 of the Consent Calendar. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) A-2 APPROVAL OF RESOLUTION 11-11 AMENDING THE COUNCIL POLICIES & PROCEDURES MANUAL REGARDING REGULAR MEETING TIMES AND PLACING ITEMS ON THE AGENDA; (CITY ATTORNEY) Councilmember Smukler stated he will not be voting in support of the proposed amendments because it does not give the City Council the leverage to manage or be a part of the agenda process. MOTION: Councilmember Johnson moved the City Council approve Item A-2 of the ® Consent Calendar. The motion was seconded by Councilmember Leage and carried with Councilmember Borchard and Councilmember Smukler voting no: (3-2) A-3 AUTHORIZATION TO REPLACE THE ASSISTANT ENGINEER POSITION IN THE UTILITIES/CAPITAL PROJECTS DIVISION; (PUBLIC SERVICES) Councilmember Smukler expressed concern with the proposed increase in pay for this position; and, he would also like to discuss the two-tier structure before hiring a new position. MOTION: Councilmember Smukler moved the City Council authorize staff to replace the Assistant Engineer position with a temporary hire until the benefits for that position have been negotiated. The motion was seconded by Councilmember Borchard and carried with Mayor Yates and Councilmember Leage voting no. (3-2) Mayor Yates called for a break at 7:00 p.m.; the meeting resumed at 7:10 p.m �'J CI ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2011 B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 INTRODUCTION AND FIRST READING OF ORDINANCE NO. 566 AUTHORIZING AMENDMENT OF SECTION 20475 (DIFFERENT LEVEL OF BENEFITS; SECTION 21363.1 (3% @ 55 FULL FORMULA); AND SECTION 20037 (THREE-YEAR FINAL COMPENSATION) FOR NEW SWORN HIRES IN THE FIRE DEPARTMENT; (ADMINISTRATIVE SERVICES) City Manager Andrea Lueker stated the City Council adopted the Resolution of Intention on January 11, 2011, and this Ordinance is required by the Public Employee Retirement System (PERS) in order to amend the PERS contract. Ms. Lueker recommended the City Council approve the introduction and first reading of Ordinance No. 566 authorizing the amendment of Different Level of Benefits, 3% @ 55 Full Formula and Three -Year Final Compensation for new sworn hires in the Fire Department. Mayor Yates opened the hearing for public comment. John Meyers stated the change made to the Fire Department labor agreement reduces the ® City's portion of pension costs for new hires by 56%. He said Council should consider additional opportunities by requiring current employees to increase their participation in paying 5% of their wages towards their pensions which would produce an instant savings of $350,000 per year to the City. Dan Glesmann stated last year, one in every six dollars spent in the General Fund went to cover cost of employee pensions. He said making significant changes to the pension plan is a very good start to achieving sustainability and reducing the future cost commitments while increasing City revenues. Mr. Glesmann stated achieving this will contribute to the City's long-term financial strength. Tom Gregory stated businesses that would increase the City's tax base would also help the City's economy. Mayor Yates closed the public comment hearing. MOTION: Councilmember Johnson moved the City Council approve the introduction and first reading of Ordinance No. 566 authorizing the amendment of Different Level of Benefits, 3% @ 55 Full Formula and Three -Year Final Compensation for new sworn hires in the Fire Department. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) 9 City Manager Andrea Lueker read Ordinance No. 566 by number and title only. 11 u MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2011 C. UNFINISHED BUSINESS C-1 RESOLUTION ON CREATION AND DETAILS OF A FACILITY MAINTENANCE ACCOUNT, TO INCLUDE A PRIORITIZED LIST OF PROJECTS AND COSTS; (RECREATION & PARKS) City Manager Andrea Lueker stated the City's management of real property assets has lacked the resources to adequately support a deferred maintenance account for all scheduled property. The approval of Resolution No. 10-11, the establishment of a General Fund Deferred Maintenance, would give immediate relief to the General Fund and satisfy the required maintenance for the current City -owned real property. The initial start up General Fund Deferred Maintenance allocation would be approximately $210,000 transferred from the proceeds of the sale of 781 Market Street. Priority maintenance will be given to building and mechanical systems including roofing, plumbing, electrical and air handling. Fund allocations would be realized by approved City Council directive and encumbered annually. Ms. Lueker recommended the City Council adopt Resolution 10-I1 to establish a fund for General Fund Deferred Maintenance for the maintenance and management of City owned real property. MOTION: Mayor Yates moved the City Council: 1) adopt Resolution No. 10-11 amending the transfer amount from $210,000 to $201,000 from the proceeds of the sale of the 781 Market Street property; 2) direct staff to be aggressive with the repairs in order of the A, B, C grouping priorities listed in Exhibit "A" of the staff report; and 3) direct staff to bring back an economic analysis on the Shasta Street properties regarding demolition vs. rehabilitation. The motion was seconded by Councilmember Borchard and carried unanimously. (5-0) C-2 CONTINUED DISCUSSION ON THE VISITORS CENTER; (ADMINISTRATION) City Manager Andrea Lueker stated on June 28, 2010 during the annual review of the Visitors Center Agreement, the City Council amended the Agreement to include language regarding a financial review of the Visitors Center operations at the end of the 2009/10 fiscal year. In September 2010, the Chamber provided this information to the City Administrative Services Director, and she performed a financial review. On November 8, 2010, staff brought forward a second staff report, which requested the City Council to provide further direction to staff on the following issues: 1) financial review of the 2009/2010 fiscal year; 2) funding of the Visitors Center from the Tourism Business Improvement District Assessment; and 3) representation on the Chamber Board for Visitors Center oversight. Staff has made progress with each directive, even with the 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2011 significant changes in personnel with the Chamber and in particular the new Chamber Executive Director. During the November City Council meeting, areas of concern were accountability, transparency, City representation on the Chamber Executive Board and increased review of finances. Ms. Lueker recommended Council review the staff report, the progress that has been made on the direction provided to staff from the November 8, 2010 City Council meeting and provide further direction regarding the Visitors Center. The City Council directed staff to: 1) reschedule this item as a public hearing within sixty (60) days to include an analysis and time study; 2) invite stakeholders; and, 3) explore the concept of a workshop. No further action was taken on this item. D. NEW BUSINESS D-I RESOLUTION AUTHORIZING THE HARBOR BUSINESS MANAGER TO EXECUTE LEASE RENTAL PAYMENT PLANS TO ASSIST EMBARCADERO TIDELANDS LEASEHOLDERS WITH CASH FLOW AND ® TO RETAIN EMBARCADERO BUSINESSES; (HARBOR) 11 Councilmember Leage stepped down due to a conflict of interest. Harbor Business Manager Susan Lichtenbaum stated the Embarcadero Leaseholders have been struggling economically over the last two years as a result of the recession affecting the entire country. The City Council considered Embarcadero Tidelands Leaseholder requests relating to lease site rent in Closed Session on January 11, 2011. Council directed staff to agendize an item to consider setting up payment plans for Embarcadero Tidelands Leaseholders. Ms. Lichtenbaum recommended the City Council adopt Resolution No. 09-11 authorizing the Harbor Business Manager to execute lease rental payment plans to assist Embarcadero Leaseholders with cash flow and to retain Embarcadero businesses. Councilmember Borchard and Councilmember Smukler commented they would prefer quarterly payments rather than month -to -month payments. MOTION: Mayor Yates moved the City Council extend the payment plan outlined in Resolution No. 21-10 through fiscal year 2011/2012. The motion was seconded by Councilmember Smukler. 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2011 Mayor Yates stated he will vote in support of this motion only so there will not be a split vote, otherwise he would regularly vote in opposition. VOTE: (4-0-1) Councilmember Leage returned to his seat with the City Council. D-2 DISCUSSION OF INSTITUTING URGENCY INTERIM ORDINANCE PROHIBITING WIND TURBINES FOR 45 DAYS; (PUBLIC SERVICES) Mayor Yates stated five wind turbines have been installed on the residential roof at 482 Estero Avenue, and has generated community comments both in favor and against this use. The concerns are quality of.life and degradation of property values; arguments in favor are in support of alternative energy and property rights. Mayor Yates requested Council discuss allowing rooftop wind turbines in the City, and decide if a 45-day moratorium on installation is necessary. A 45-day moratorium would require a 4/5 majority vote. ® Consensus of Council was in support of allowing wind turbines in the City due to property rights and noting they are a good source of sustainable energy. No further action was taken on this item. D-3 DISCUSSION OF CHANGE OF MEETING DATES AND TIMES, AND NUMBER OF BOARD MEMBERS FOR COMMISSIONS AND ADVISORY BOARDS; (CITY ATTORNEY) City Mana'ger Andrea Lueker stated the City Council has changed their meeting date from the 2 and 4's Monday to the 2°" and 4 Tuesday each month, which now conflicts with the Recreation and Parks Commission meeting. With the change in the City Council meetings, staff is interested in also changing the Planning Commission meeting to the I' and 3 Wednesday each month. In a review of meeting agenda size and topics, staff believes that meeting six times each year for both the Public Works Advisory Board and the Recreation and Parks Commission will meet the needs of the City. Should there be a situation where a meeting is needed a special meeting can easily be called for either board. Ms. Lueker stated recruitment for both the Recreation and Parks Commission and the Public Works Advisory Board has traditionally been difficult, with very infrequent periods of a full seven member board. Staff is recommending the City Council consider reducing these two boards to five members. Ms. Lueker recommended the City Council consider the change in meeting times as proposed, and the reduction in the number of board members on the Recreation and Parks Commission and the Public Works Advisory Board, and advises staff accordingly. 11 C� J 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 25, 2011 Councilmember Smukler stated he does not support reducing the Public Works Advisory Board to five members. MOTION: Mayor Yates moved the City Council approve: 1) changing the Planning Commission meeting schedule to the I" and 3rd Wednesday of the month; 2) reducing the Public Works Advisory Board to a five member board; and 3) amending the Recreation & Parks Commission and Public Works Advisory Board meeting schedule to alternate every 3`d Thursday of the month beginning with Recreation & Parks Commission in January. The motion was seconded by Councilmember Borchard and carried with Councilmember Smukler voting no. (4-1) E. DECLARATION OF FUTURE AGENDA ITEMS — None. ADJOURNMENT The meeting adjourned at 8:55 p.m. Recorded by: Bridgett Kessling City Clerk City of Morro Bay Morro Bay, CA 93442 (805) 772-6200 NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Monday, January 24, 2011 at 5:00 p.m. to be held at the Veterans' Memorial Building, 209 Surf Street, Morro Bay, California. The City Council will be conducting interviews to fill vacancies on the Planning Commission, Recreation & Parks Commission, Harbor Advisory Board, Public Works Advisory Board, Community Promotions Committee and Tourism Business Improvement District Advisory Board. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. DATED: January 19, 2011 FINANCE ADMINISTRATION FIRE DEPT. PUBLIC SERVICES 595 Harbor Street 595 Harbor Street 715 Harbor Street 955 Shasta Avenue HARBOR DEPT. CITY ATTORNEY POLICE DEPT. RECREATION & PARKS 1275 Embarcadero Road 595 Harbor Street 970 Morm Bay Boulevard 1001 Kennedy Way ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — JANUARY 11, 2011 CLOSED SESSION — JANUARY 11, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54957.6. CONFERENCE WITH LABOR isNEGOTIATOR. Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. CS-2 n TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to two (2) parcels. Property: 610 Embarcadero, Morro Bay, CA Negotiating Parties: Stanley Trapp and the City of Morro Bay Negotiations: Voluntary Purchase and Sale Negotiating Parties: City Tidelands Trust Leaseholders and the City of Morro Bay. Negotiations: Lease Terms and Conditions. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. ® PUBLIC SESSION — JANUARY 11, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: - • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a .whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, ® profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as. unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL MEETING OF DECEMBER 8, 2010 AND THE REGULAR MEETING OF DECEMBER 13, 2010; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. 04 A-2 RESOLUTION NO. 01-11 TO REAFFIRM INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND (LAIF) AND DESIGNATE TRANSACTION OFFICERS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 01-11. A-3 RESOLUTION NO. 02-11 DESIGNATING AND AUTHORIZING INVESTMENT TRANSACTION OFFICERS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 02-11. A4 RESOLUTION NO. 03-11 ADOPTING THE CITY OF MORRO BAY INVESTMENT POLICY AND DELEGATING AUTHORITY TO THE CITY TREASURER TO INVEST IDLE FUNDS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 03-11. A-5 RESOLUTION NO. 04-11 ESTABLISHING TRANSACTION OFFICERS FOR DOING BUSINESS WITH RABOBANK; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 04-11. A-6 RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY OF MORRO BAY - FIREFIGHTERS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 05-11. A-7 APPROVAL OF A SUBLEASE AGREEMENT BETWEEN M&M REFRIGERATION AND MORRO BAY OYSTER COMPANY FOR A PORTION OF LEASE SITE 144/144W LOCATED AT 1287 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 06-11. A-8 APPROVAL OF MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE CENTRAL COAST MARITIME MUSEUM ASSOCIATION FOR THE DESIGN AND PERMITTING PROCESS FOR A MARITIME MUSEUM IN THE FRONT STREET PARKING LOT; (PUBLIC SERVICES) RECOMMENDATION: Approve the Memorandum of Understanding between the City and the Central Coast Maritime Museum Association for the Design and Permitting Process of a Maritime Museum in the Front Street Parking Lot. 3 ® B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 APPEAL OF THE PLANNING COMMISSION'S DECISION TO APPROVE COASTAL DEVELOPMENT PERMIT CPO-322 TO ALLOW THE INSTALLATION OF 9 SOLAR ARRAYS WITH THE ASSOCIATED STRUCTURES AND MECHANICAL EQUIPMENT. THE PROJECT AS PROPOSED ALSO INCLUDES THE TRIMMING OF MAJOR VEGETATION; (PUBLIC SERVICES) RECOMMENDATION: Deny the appeal and uphold the Planning Commission's conditional approval of Coastal Development Permit CPO-322. B-2 APPEAL OF THE PLANNING COMMISSION'S DECISION TO DENY CERTIFICATION OF THE MORRO BAY CAYUCOS SANITARY DISTRICT WASTEWATER TREATMENT PLANT ENVIRONMENTAL IMPACT REPORT AND DENIAL OF THE COASTAL DEVELOPMENT PERMIT CPO-339 AND CONDITIONAL USE PERMIT UPO-307; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution Number 07-11 and make findings for approval of the Conditional Use Permit and Coastal Development Permit by adopting Resolution Number 08-11. Certify Morro Bay Cayucos Sanitary District's Wastewater Treatment Plant Upgrade EIR and conditionally approve Coastal Development Permit CPO-339 and Conditional Use Permit UPO-307. ® B-3 ORDINANCE NO. 565 AMENDING MORRO BAY MUNICIPAL CODE SECTION 2.08.010 OF THE MORRO BAY MUNICIPAL CODE REGARDING COUNCIL. MEETINGS TIME AND DATE - INTRODUCTION AND FIRST READING; (CITY ATTORNEY) RECOMMENDATION: Move for introduction and first reading of Ordinance No. 565. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 CITY COUNCIL ANNUAL MEETING SCHEDULE; (ADMINISTRATION) RECOMMENDATION: Adopt the proposed meeting schedule for calendar year 2011. D-2 CONSIDERATION OF REPLACING THE CURRENT PLANNING COMMISSION; (CITY COUNCIL) RECOMMENDATION: With three Planning Commission terms expiring January ® 31, 2011; it is recommended to replace the Planning Commission in its entirety. 4 ® E. DECLARATION OF FUTURE AGENDA ITEMS F. ADJOURNMENT 11 El THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION AT CITY HALL LOCATED AT 595 HARBOR STREET; MORRO BAY LIBRARY LOCATED AT 625 HARBOR STREET; AND MILL'S COPY CENTER LOCATED AT 495 MORRO BAY BOULEVARD DURING NORMAL BUSINESS HOURS. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 5 MINUTES - MORRO BAY CITY COUNCIL ® CLOSED SESSION—JANUARY11, 2011 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Johnson moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Borchard and unanimously carried. (5-0) Mayor Yates read the Closed Session Statement. ® CS-1 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR. Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Employees and giving instructions to the Designated Representative. CS-2 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to two (2) parcels. Property: 610 Embarcadero,-Morro Bay, CA Negotiating Parties: Stanley Trapp and the City of Morro Bay Negotiations: Voluntary Purchase and Sale Negotiating Parties: City Tidelands Trust Leaseholders and the City of Morro Bay Negotiations: Lease Terms and Conditions The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:50 p.m. MOTION: Councilmember Borchard moved the meeting be adjourned. The motion was seconded by Councilmember Smukler and unanimously carried. (5-0) The meeting adjourned at 5:50 p.m. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 11, 2011 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m. PRESENT: William Yates Mayor Carla Borchard Councilmember Nancy Johnson Councilmember George Leage Councilmember Noah Smukler Councilmember STAFF: Andrea Lueker Robert Schultz Jamie Boucher Eric Endersby Susan Lichtenbaum Rob Livick Tim Olivas Mike Pond Susan Slayton Kathleen Wold Joe Woods ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE City Manager City Attorney Deputy City Clerk Harbor Operations Manager Harbor Business Manager Public Services Director Police Chief Fire Chief Administrative Services Director Planning Manager Recreation & Parks Director MAYOR AND COUNCIL MEMBERS REPORTS, ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT Keith Taylor, Director of the Friends of the Morro Bay Fire Department, congratulated Todd Gailey and Bill Murphy of the Fire Department for the successful dog rescue down in Nipomo. Robert Davis, representing the Morro Bay Citizens Bike Committee, thanked the City for the North Main Street Bike Lanes. He said the San Luis Obispo Council of Governments has requested a list of unmet bike needs throughout the county -which the Citizens Bike Committee compiled a list for Morro Bay (which he listed for Council and the public's information). D'Onna Kennedy announced a Veterans' Support Group meeting would be held on January 20`s, 6:00 p.m: at the Eagles Lodge. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JANUARY 11, 2011 The following people expressed opposition to Item D-2 (Consideration of Replacing the Current Planning Commission): Barbara Doerr, Ann Reeves, Dana Putnam, Dorothy Cutter, Roger Ewing, Nancy Beattie, Bob Doerr and Steve Hennigh. John Weiss, Incoming President for the Morro Bay Chamber of Commerce, announced the Annual Chamber Installation Dinner would be held at the Inn at Morro Bay on January 13`s at 5:30 p.m. He announced upcoming plans for 2011, and invited the public to come by the Chamber office at any time. Steve Rodarte requested the City Council consider adopting an ordinance that prohibits people from smoking while driving in drive -through businesses. Virginia Hiramatsu announced the Relay for Life meeting schedule for committee members and team captains. She said the Relay for Life Kick -Off will be held on March 10ie, and a Bunko game to benefit Relay for Life as well as Rotary's Polio Plus has been scheduled for March 16s'. Alex Beattie requested the City Council consider special training for its administrative ® staff to include sensitivity and objectivity training. Betty Winholtz stated moving the City Council meeting to Tuesday night is not being "business friendly" as it will hurt AGP Video who films the Council meetings. She also noted prior to the holidays, she submitted a complaint to City staff regarding a tree cutting without a permit in her neighborhood, and has not received a response. Ken Vesterfelt stated the Friends of the Morro Bay Police Department are looking to the community for assistance in raising funds for a K9 dog for the department. He also noted an Emergency Vehicle Car Show will be held in the City on April 16'h. John Barta noted he was on the Planning Commission when the City Council feed them a few years back, and the City Council has that right. Garry Johnson stated although he is neutral on the issue of the Planning Commission at this time, the people who are in opposition to the current Planning Commission being replaced are the same ones who wanted the Planning Commission fired eight years ago. Steve Hennigh thanked the Council for the opportunity to speak in a public forum, and also encouraged the City to increase public awareness on meetings to allow the public to attend and speak their minds. ® Mayor Yates closed the hearing for public comment. Mayor Yates called for a break at 7:01 p.m.; the meeting resumed at 7:16 p.m. 3 E L'J CJ MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JANUARY 11, 2011 A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL MEETING OF DECEM 3ER 8, 2010 AND THE REGULAR MEETING OF DECEMBER 13, 2010; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 01-11 TO REAFFIRM INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND (LAIF) AND DESIGNATE TRANSACTION OFFICERS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 01-11. A-3 RESOLUTION NO. 02-11 DESIGNATING AND AUTHORIZING INVESTMENT TRANSACTION OFFICERS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 02-11. A4 RESOLUTION NO. 03-11 ADOPTING THE CITY OF MORRO BAY INVESTMENT POLICY AND DELEGATING AUTHORITY TO THE CITY TREASURER TO INVEST IDLE FUNDS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 03-11. A-5 RESOLUTION NO. 04-11 ESTABLISHING TRANSACTION OFFICERS FOR DOING BUSINESS WITH RABOBANK; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 04-11. A-6 RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY OF MORRO BAY - FIREFIGHTERS; (ADMINISTRATIVE SERVICES) RECOMMENDATION: Adopt Resolution No. 05-11. 1, MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JANUARY 11, 2011 11 A-7 APPROVAL OF A SUBLEASE AGREEMENT BETWEEN M&M REFRIGERATION AND MORRO BAY OYSTER COMPANY FOR A PORTION OF LEASE SITE 144/144W LOCATED AT 1287 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 06-11. A-8 APPROVAL OF MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE CENTRAL COAST MARITIME MUSEUM ASSOCIATION FOR THE DESIGN AND PERMITTING PROCESS FOR A MARITIME MUSEUM IN THE FRONT STREET PARKING LOT; (PUBLIC SERVICES) RECOMMENDATION: Approve the Memorandum of Understanding between the City and the Central Coast Maritime Museum Association for the Design and Permitting Process of a Maritime Museum in the Front Street Parking Lot. Mayor Yates pulled Item A-1 from the Consent Calendar. MOTION: Councilmember Borchard moved the City Council approve the Consent Calendar with the exception of Item A-1. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) A -I APPROVAL OF CITY COUNCIL MINUTES FOR THE SPECIAL MEETING OF DECEMBER 8, 2010 AND THE REGULAR MEETING OF DECEMBER 13, 2010; (ADMINISTRATION) Mayor Yates referred to the minutes of December 13, 2010, page 11, and requested the following amendment: 1) simplify the arcade licensing leeated a"'5 Emb _,.,.. ere Suite i0c requirements by removing the condition requiring annual review and approval by the City Council; MOTION: Mayor Yates moved the City Council approve Item A-1 of the Consent Calendar as amended. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) 5 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 11, 2011 B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 APPEAL OF THE PLANNING COMMISSION'S DECISION TO APPROVE COASTAL DEVELOPMENT PERMIT CPO-322 TO ALLOW THE INSTALLATION OF 9 SOLAR ARRAYS WITH THE ASSOCIATED STRUCTURES AND MECHANICAL EQUIPMENT. THE PROJECT AS PROPOSED ALSO INCLUDES THE TRIMMING OF MAJOR VEGETATION; (PUBLIC SERVICES) Planning Manager Kathleen Wold stated the main issues surrounding this project are the proposed tree trimming, the view of the solar arrays from the beach area and Highway One and the California Environmental Quality Act (CEQA) analysis. Located within the California Coastal Commission's Appeal Jurisdiction this property requires a Coastal Development Permit to allow for installation of the solar arrays, the associated mechanical equipment including the inverters and meters and the associated structures. No other City permits are required due to the project proponent being a superior governmental agency (state agency) a subdivision of the State. On December 9, 2009 the San Luis Coastal Unified School District applied for a Coastal Development permit ® (CPO-322) to allow the installation of nine solar arrays including the associated structures and mechanical equipment. A public hearing was held by the Planning Commission on November 1, 2010, wherein they conditionally approved the project. On November 12, 2010 an appeal was filed with the City of Morro Bay requesting the City assume the CEQA jurisdiction, perform an Initial Study to identify the environmental impacts and incorporate mitigation measures via a Mitigated Negative Declaration. The San Luis Coastal United School District took the role as the lead agency, and conducted the CEQA review and determined that the project qualified for the following categorical exemptions under Class 2 (c), 3 (e) and 14. The appellant is appealing the school district as the Lead Agency responsibilities under CEQA Section 15051. The relief the appellant is seeking is to have the City assume the CEQA jurisdiction and perform an Initial Study to identify environmental impacts and incorporate mitigationmeasures via a Mitigated Negative Declaration. Staff has reviewed the appeal and determined that there was no evidence submitted into the record via the appeal document which substantiated that the San Luis Obispo Coastal Unified School District could not assume Lead Agency status under CEQA or that the project as conditionally approved is inconsistent with the City of Morro Bay's General Plan/Local Coastal Plan. Ms. Wold recommended the City Council uphold the Planning Commission's conditional approval. Mayor Yates opened the hearing for public comment. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 11, 2011 Julie Tacker stated she has appealed this project because it is inconsistent with portions of the City's Visual Resources and Scenic Highway Element objective to enhance, protect and preserve the existing and potential visual resources of Morro Bay and its surroundings. She also said the project is specifically inconsistent with the City's Local Coastal Plan policies relating to protecting views along the coast and designated scenic area. Ms. Tacker stated this project invites visual blight into the City, and she requested the City take Lead Agency responsibilities assuming CEQA jurisdiction; perform an initial study to identify environmental impacts, and incorporate mitigation measures via a Mitigated Negative Declaration. Brad Parker, Consultant for San Luis Coastal Unified School District, stated the Board of Education is very much behind this project. He said district -wide, this is approximately 1.7 megawatts of clean, renewable energy which will serve as an example for school children for generations. Mr. Parker stated "Attachment 3" in the staff report addresses the appeal contingencies; and, Council should find there is no basis for this appeal. Piper Riley stated she supports this appeal based on the visual impact. She is also opposed to the removal of valuable trees and their habitat, the lack of environmental review and ® issues of wetland setback. She said she strongly feels these solar arrays should be installed on existing rooftops, and foresees the carports being a potential for vandalism or potentially hazardous for children who may climb on them. Ms. Riley requested Council consider the protection of vital habitat, visual beauty and consider safety issues by installing these solar panels on existing structures. C Barry Branin stated the school district has the authority to remove trees on their property. He stated the Planning Commission had recommended placing a condition on this permit to not decimate all of the trees on the property for placement of the solar arrays. Mr. Branin stated this project is ill-conceived and recommended the City Council uphold the appeal and takes back the role as Lead Agency. Nancy Bast stated one condition of the permit that she thought was wise was to allow one year for a survey to be performed to see if the trees would affect the solar arrays before any tree trimming was done. She said she was in support of this appeal, and quoted California State Code 53067 relating to trees. Barbara Doerr stated she was surprised with the high decibel levels that come from the solar arrays. She referred to a letter in the staff report regarding the Scenic Highway and noted the logic of how some parts of the highway are more attractive than others was a concern, and she thought it should have been countered by a statement that the City's goal is to make Morro Bay more attractive and beautiful. 7 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JANUARY 11, 2011 Betty Winholtz stated this is not a CEQA-exempt project. She said it is the City's job to review the school district's environmental review of this project in order to prove that it will not: damage the scenic views of Highway One; violate the Noise Ordinance; or, impact the City's Major Vegetation Policy. Lindy Owen stated their Advisory Council in Los Osos reviewed this project closely and their concerns are the tree removal, the unattractive car port structures, child safety, and concerns of vandalism. She said the solar array panels should be installed on roof tops. Ms. Owen stated the trees that are proposed to be removed are irreplaceable. Julie Tacker stated one proposed solar array close to a northern stream or drainage way supports a wetland habitat on the northern property line. Brad Parker stated the project as approved by the Planning Commission removes no trees and does no tree trimming from any of the Monterey Cypress along Highway One. He said the view from Highway One will be improved by the plantings that will be provided. Mr. Parker stated at full power, the invertors can produce 65 decibels of noise and will be located away from classrooms and residential areas; at night there will be zero decibels. He ® said a committee reviewed proposals on where to locate the solar arrays, and carport structures were recommended instead of rooftops due to the potential of roof leaks over sensitive areas such as classrooms. E Mayor Yates closed the hearing for public comment. The City Council commented on this appeal and was in consensus that they were in support of staffs review and Planning Commission's approval of this project. MOTION: Councilmember Borchard moved the City Council deny the appeal and uphold the Planning Commission's conditional approval of Coastal Development Permit CPO-322 to allow the installation of 9 solar arrays with the associated structures and mechanical equipment; and, includes the trimming of major vegetation. The motion was seconded by Councilmember Johnson and carried unanimously. (5-0) 0 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JANUARY 11, 2011 B-2 APPEAL OF THE PLANNING COMMISSION'S DECISION TO DENY ,CERTIFICATION OF THE MORRO BAY CAYUCOS SANITARY DISTRICT WASTEWATER TREATMENT PLANT ENVIRONMENTAL IMPACT REPORT AND DENIAL OF THE COASTAL DEVELOPMENT PERMIT CPO- 339 AND CONDITIONAL USE PERMIT UPO-307; (PUBLIC SERVICES) Planning Manager Kathleen Wold stated the Wastewater Treatment Plant (WWTP) is operated under a National Pollutant Discharge Elimination System (NPDES) Permit (No. CA0047881) issued by the US Environmental Protection Agency (USEPA) and the Central Coast Regional Water Quality Control Board (RWQCB). The current NPDES permit allows for the discharge of a blend of primary and secondary treated effluent to the ocean through the existing 27-inch diameter outfall pipeline. This discharge is in accordance with Section 301(h) of the federal Clean Water Act that modifies the requirement for full secondary treatment in certain cases. The City of Morro Bay and Cayucos Sanitary District has made a commitment to the Central Coast RWQCB to phase out the need for the 301(h) modified discharge permit by upgrading the WWTP to at least full secondary treatment by March 2014. The process of examining the various planning and design options was carefully analyzed during the past several years through a Facility ® Master Plan (FMP), which was prepared by Carollo Engineers. The process involved intense technical analysis and public input and discussion, which resulted in the current project description. Based on the analysis and public input, the Council and District Board • adopted the final recommendation to upgrade the plant to tertiary treatment using an oxidation ditch with filtration as the preferred treatment option and retire many of the existing facilities. Since August 2006, the Joint Powers Authority (JPA), which is comprised of both the Morro Bay City Council and members of the Cayucos Sanitary District Board, have been working to develop an FMP for upgrade to the Morro Bay/ Cayucos Sanitary District WWTP through the twenty-year planning period. During this time, the JPA has been presented with various technical topics ranging from regulatory requirements to wastewater and biosolids treatment alternatives, and has consistently provided feedback and direction. Impacts on the receiving waters, the ratepayers in both communities, and local sustainability were topics that framed discussion in seven public meetings and other smaller technical subcommittee meetings. Based on the information contained in this report and all documents referenced within including the Morro Bay Cayucos Sanitary District Wastewater Treatment Plant EIR, Ms. Wold recommended the City Council approve Resolution Number 07-11 adopting the findings of fact to allow certification of the EIR, certify the EIR, approve Resolution Number 08-I1 adopting the findings of approval for the Coastal Development Permit and Conditional Use Permit and finally conditionally approve Coastal Development Permit CPO-339 and Conditional Use Permit UPO-307. Er E MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JANUARY 11, 2011 Tom Barnes from Environmental Science Associates is the City's CEQA consultant who gave a report on the Environmental Impact Report on the Wastewater Treatment Plant upgrade. Mayor Yates opened the hearing for public comment. The following people expressed opposition to the appeal of the Planning Commission's decision to deny the certification of the Morro Bay/Cayucos Sanitary District Wastewater Treatment Plant Environmental Impact Report and denial of the Coastal Development Permit and Conditional Use Permit: Dana Putnam, Joey Racano, Roger Ewing, Bob Stallard, Bob Doerr, Alex Beattie, Barry Branin, Andrew Christie, Piper Riley, Dorothy Cutter, Barbara Doerr, Lindy Owen, Jack McCurdy, Julie Tacker, Betty Winholtz, Steve Hennigh, Bill Weatherford, Jan Romanazi, Lee Johnson, Richard Margetson, Ann Reeves, Richard Sadowski, and Barbara Jo Osborne. Nancy Bast requested Council hear all public comment on this matter. John Barta stated in 2007, the City committed to a timeline of 2013 and spent hundreds ® of thousands of dollars and prepared two EIR's which should be forwarded to the Coastal Commission. He said the reason the plant is being moved slightly south is because it is on a floodplain. Mr. Barta requested Council grant the appeal, approve the EIR and move forward towards a better future. El Jim Hayes, Collections Division employee, addressed the amount of money it would cost to relocate the treatment plant due to the amount of plumbing and the lift station located at the existing plant. Mayor Yates closed the hearing for public comment. Mayor Yates called for a break at 9:10 p.m., the meeting resumed at 9:25 p.m. Dennis Delzeit, Project Manager, reviewed floodplain and zoning impacts and other issues raised by public comment. Mayor Yates stated it is his responsibility to the rate payer to keep the sewer rate as reasonable as possible. He said he supports upholding the appeal to allow certification of the EIR. 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 11, 2011 Councilmember Smukler stated it is inaccurate to compare the cost of the proposed Los Osos. Wastewater Treatment Plant with this project because that community is much larger than Morro Bay and includes the installation of a new collection system. He said it is important to look at the long-term lifecycle costs of this project compared to alternative site options. Councilmember Smukler stated he has seen too many red flags with the proposed site to make a decision without evaluating alternative stand-alone sites. Councilmember Smukler stated he does not support this appeal, and he does support the Planning Commission's recommendation. Councilmember Leage stated he supports moving forward with the project as proposed allowing changes in the plans as they come. Councilmember Johnson stated the City's present treatment plant is located in an industrial zone that is also in a floodplain. She said she cannot understand why people think this is prime property. Councilmember Johnson stated in the long-term, the plan for the treatment plant is set up for reclamation when it becomes feasible. She said she was pleased to see the State Regional Water Quality Board sent the City a letter of support for the treatment plant upgrade. ® Councilmember Borchard stated the current location of the treatment plant was purchased 50 years ago for the sole purpose of this use with room for expansion. She said based on the cost to move the plant to another site where there is no current infrastructure, the financial hardship passed on to the ratepayers would more than double, which she cannot support. Councilmember Borchard stated she supports the appeal. Councilmember Smukler stated risks at the existing location to vital infrastructure should be further evaluated because some, such as sea level rise, weren't around when the Local Coastal Plan was adopted. He is concerned that the present project is proposed with a footprint, which staff has been directed to minimize the extent of its use, but it appears that future expansion of the facility will require sprawl into the surrounding area. MOTION: Mayor Yates moved the City Council approve Resolution Number 07-11 adopting the findings of fact to allow certification of the EIR, certify the EIR, approve Resolution Number 08-11 adopting the findings of approval for the Coastal Development Permit and Conditional Use Permit and finally conditionally approve Coastal Development Permit CPO-339 and Conditional Use Permit UPO-307. The motion was seconded by Councilmember Johnson and carried with Councilmember Smukler voting no. (4-1) r MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JANUARY 11, 2011 B-3 ORDINANCE NO. 565 AMENDING MORRO BAY MUNICIPAL CODE SECTION 2.08.010 OF THE MORRO BAY MUNICIPAL CODE REGARDING COUNCIL MEETINGS TIME AND DATE - INTRODUCTION AND FIRST READING; (CITY ATTORNEY) City Attorney Robert Schultz stated the City Council on December 13, 2010 directed Staff to change the City Council meeting dates from the second and fourth Mondays to the second and fourth Tuesdays. Mr. Schultz recommended the City Council accept public comment and move for introduction and first reading of Ordinance No. 565, by number and title only, amending Morro Bay Municipal Code Section 2.08.010. Mayor Yates opened the hearing for public comment. Betty Winholtz stated when going on-line and researching information on other communities, she found they maintain this type of change in their municipal code. She requested the City Council not amend this policy by resolution and maintain it in the Municipal Code. ® Mayor Yates closed the hearing for public comment. MOTION: Councilmember Borchard moved the City Council approve for first reading and introduction by number and title only, Ordinance No. 565 amending Morro Bay Municipal Code Section 2.08.010 of the Morro Bay Municipal Code Regarding Council Meetings Time and Date. The motion was seconded by Councilmember Smukler and carried unanimously. (5-0) C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 CITY COUNCIL ANNUAL MEETING SCHEDULE; (ADMINISTRATION) City Manager Andrea Lueker presented to the City Council the 2011 annual meeting schedule as follows: 1) regular meetin� dates are the second and fourth Tuesdays of each month with the exception of July 26 , November 22°d and December 27th, which are traditionally, canceled; and 2) the City Council and Planning Commission normally meet twice each year for a joint meeting. These meetings have been scheduled on a variety of dates, including 5 h Monday's as well as on regular City Council meeting days an hour prior to the normal starting time. For 2011, it is recommended the joint City Council/Planning Commission meetings are held one hour prior to a regular City Council meeting. Suggested dates are February 22°d at 5:00 p.m. and September 13th at 5:00 p.m. �. Ms. Lueker recommended the City Council accept the annual meeting schedule, or advise staff of any conflicts. 12 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 11, 2011 MOTION: Mayor Yates moved the City Council accept the annual meeting schedule as proposed by staff. The motion was seconded by Councilmember Leage and carried unanimously. (5-0) D-2 CONSIDERATION OF REPLACING THE CURRENT PLANNING COMMISSION; (CITY COUNCIL) Mayor Yates stated the Planning Commission should be business and citizen friendly, and should be respectful of the enormous amount of time applicants and staff put into a project to prepare the project for presentation before the Planning Commission. In recent years, the Commission has repeatedly nit-picked projects, attempted to act as a Design Review Board, and generally been non -supportive and combative with staffs decisions. With three Planning Commission vacancies, and based on recent actions of the existing Planning Commission, Mayor Yates recommended the City Council agree to replace the entire Planning Commission noting this decision would work well with the application deadline for Advisory Board vacancies of January 19, 2011 and interview date of January 24, 2011. ® Councilmember Leage stated he agrees with Mayor Yates; this is a critical time and everyone needs to work together. Councilmember Smukler stated he is disappointed with this report because these are the type of people he would like to see on the Planning Commission. He said he thought the staff report was disrespectful to the Commission and feels they deserve an apology. Councilmember Smukler expressed concern of what type of message this might send to those who might consider serving on a City board. Councilmember Johnson stated the Planning Commission does not know what their responsibilities and powers are. She said when first on the Planning Commission, she was trained on the Sphere of Influence, Local Coastal Plan, General Plan, Land Use Plans, Zoning Ordinance and Variances, and served at the will of the Council. Councilmember Johnson stated all new Planning Commissioners need adequate training. She said the Planning Commission is not an architectural review committee; there is no view ordinance or color code for private homes. Councilmember Johnson stated applicants and staff should be treated with respect. She said she will vote against replacing the Planning Commission at this time; however, she recommended the Planning Commission receive training regarding their roles and responsibilities. Councilmember Borchard stated she agrees the Planning Commission does require further training on its responsibilities. She said she feels removing the remaining two Planning Commissioners would be divisive in the community, and she would not be opposed to appointing two alternates to the Planning Commission. 13 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 11, 2011 Mayor Yates withdrew this item from consideration. No further action was taken on this item. E. DECLARATION OF FUTURE AGENDA ITEMS — None. ADJOURNMENT The meeting adjourned at 10:56 p.m. Recorded by: Jamie Boucher Deputy City Clerk 13 14