HomeMy WebLinkAboutCC_2020-07-14 Regular Meeting MinutesMINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING — JULY 14, 2020
TELECONFERENCE — 5:30 P.M.
PRESENT: John Headding
Dawn Addis
Robert Davis
Jeff Heller
Marlys McPherson
ABSENT: None
STAFF: Scott Collins
Chris Neumeyer
Dana Swanson
Jennifer Callaway
Scot Graham
Steve Knuckles
Jody Cox
Eric Endersby
Rob Livick
Nancy Hubbard
AGENDA NO: A-2
MEETING DATE• August 25, 2020
Mayor
Council Member
Council Member
Council Member
Council Member
City Manager
City Attorney
City Clerk
Finance Director/Acting Public Works Director
Community Development Director
Fire Chief
Police Chief
Harbor Director
City Engineer
Contract Planner
ESTABLISH QUORUM AND CALL TO ORDER
Mayor Headding called the meeting to order at 5:30 p.m., with all but Council Member Heller
present. Council Member Heller joined the meeting at 5:31 p.m.
MOMENT OF SILENCE
PLEDGE OF ALLEGIANCE
RECOGNITION — None
CLOSED SESSION REPORT — City Attorney Neumeyer stated no reportable action was taken
by the City Council in accordance with the Brown Act.
MAYOR & COUNCILMEMBERS' REPORTS, ANNOUNCEMENTS & PRESENTATIONS
https://youtu.be/CVVOBwGQiv3w?t=147
CITY MANAGER REPORTS, ANNOUNCEMENTS AND PRESENTATIONS
https://youtu.be/CWOBwGQiv3w?t=733
PRESENTATIONS
o Proclamation honoring Michael Manchak, President & CEO of EVC
https://youtu.be/CWOBwGQiv3w?t=901
PUBLIC COMMENT
https://youtu. be/CWOBwGQiv3w?t=1312
Carole Truesdale, Morro Bay, commented on a recent statement by the City Manager regarding
potential cuts to public safety, asked for clarification regarding payment arrangements for Cerrito
Peak, and inquired about the possibility of allowing residents to donate trash cans to the City.
Dan Sedley, Morro Bay, requested an update on the parking study and potential for paid parking.
Erica Crawford, Morro Bay Chamber of Commerce, thanked the City for recognizing Mike
Manchak, provided a brief update on Chamber activities, and encouraged community members
to remain supportive of local businesses as they adapt to changing regulations.
Glenn Silloway, Morro Bay, spoke in support of the proposed sales tax measure provided as Item
C-1 and urged everyone to wear masks and support local businesses.
Jane Heath, Morro Bay resident and business owner, spoke in support of Item C-1 and urged the
Council to vote in favor of placing a sales tax measure on the ballot.
Betty Winholtz, Morro Bay, expressed concern about the impacts 4t" of July fireworks have on
animals, residents, and wildlife. She requested the Council repeal the current City ordinance and
prohibit use of Safe and Sane fireworks.
Mayor Headding closed public comment
The Council and staff responded to issues raised during public comment
A. CONSENT AGENDA
https://youtu.be/C\NOBwGQiv3w?t 2433
Unless an item is pulled for separate action by the City Council, the following actions are approved
without discussion. The public will also be provided an opportunity to comment on consent
agenda items.
A-1 APPROVAL OF MINUTES FOR THE MAY 26, 2020, CITY COUNCIL MEETING;
(ADMINISTRATION)
RECOMMENDATION: Approve as submitted.
A-2 APPROVAL OF MINUTES FOR THE JUNE 3, 2020, CITY COUNCIL SPECIAL
MEETING; (ADMINISTRATION)
RECOMMENDATION: Approve as submitted.
A-3 APPROVAL OF MINUTES FOR THE JUNE 9, 2020, CITY COUNCIL MEETING;
(ADMINISTRATION)
RECOMMENDATION: Approve as submitted.
A-4 DESIGNATION OF REPRESENTATIVE(S) TO THE CALIFORNIA JOINT POWERS
INSURANCE AUTHORITY; (CITY CLERK)
RECOMMENDATION: Staff recommends the City Council designate the Mayor as
the official representative of the City of Morro Bay on the California Joint Powers
Insurance Authority (CJPIA) Board of Directors, designate the City Clerk/Human
Resources Manager as first alternate, and designate the City Manager as second
alternate.
A-5 ADOPT RESOLUTION NO 65-20 ESTABLISHING THE ANNUAL PROPOSITION 4
APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2020/21; (FINANCE
DEPARTMENT)
RECOMMENDATION: Staff recommends the City Council adopt Resolution No.
65-20, which sets the FY 2020/21 appropriations limit at $28,990,070.
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MINUTES - MORRO BAY CITY COUNCIL MEETING JULY 14, 2020
A-6 AUTHORIZATION TO ACCEPT, IF AWARDED, STAFFING FOR ADEQUATE FIRE AND
EMERGENCY RESPONSE (SAFER) GRANT AND ASSISTANCE TO FIREFIGHTERS
GRANT (AFG); (FIRE DEPARTMENT)
RECOMMENDATION: Authorization for the Fire Department to accept the grant if
awarded from the Department of Homeland Security and Federal Emergency
Management Agency for consideration of funding under the Assistance to
Firefighters Grants (AFG) for Personal Protective equipment and the Staffing for
Adequate Fire and Emergency Response (SAFER) Grant for the hiring of a limited
term firefighter.
A-7 RESOLUTION NO. 66-20 APPROVING A SECOND AMENDMENT TO THE MORRO
BAY TRANSIT AND TROLLEY OPERATIONS AND MANAGEMENT AGREEMENT
WITH MV TRANSPORTATION, INC.; (PUBLIC WORKS DEPARTMENT)
RECOMMENDATION: Staff recommends the City Council adopt Resolution No. 66-
20 approving a Second Amendment to the Morro Bay Transit and Trolley Operations
and Management Agreement with MV Transportation, Inc.
A-8 APPROVE RESOLUTION NO. 67-20 AUTHORIZING SUBMISSION OF RURAL
TRANSIT FUND GRANT CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY
(CARES) 5311 PHASE 1 CYCLE APPLICATION AND EXECUTION OF RELATED
DOCUMENTS UPON AWARD; (PUBLIC WORKS DEPARTMENT)
A-9
RECOMMENDATION: Staff recommends the City Council adopt Resolution No. 67-
20 authorizing Submission of Rural Transit Fund Grant Coronavirus Aid, Relief, and
Economic Security (CARES) 5311 Phase 1 Cycle Application and Execution of
Related Documents Upon Award.
APPROVAL OF RESOLUTION NO. 73-20, APPROVING A SUPPLEMENTAL LEASE
AGREEMENT TO THE UNITED STATES COAST GUARD STATION MORRO BAY
BUILDING LEASE FOR CONSTRUCTION OF A NEW COAST GUARD STATION
EMERGENCY BACKUP POWER GENERATOR TO BE BUILT ADJACENT TO THE
COAST GUARD BUILDING LOCATED ON LEASE SITES 141, AT 1279
EMBARCADERO; (HARBOR DEPARTMENT)
RECOMMENDATION: Staff recommend the City Council approve Resolution No.
73-20, approving a Supplemental Lease Agreement to the Coast Guard's Station
Morro Bay building lease to enable the Coast Guard to build an emergency
backup power generator.
A-10 PROCLAMATION HONORING MICHAEL MANCHAK PRESIDENT & CEO OF
ECONOMIC VITALITY CORPORATION (EVC) ON HIS UPCOMING RETIREMENT;
(ADMINISTRATION)
RECOMMENDATION: Approve as submitted.
Mayor Headding opened the public comment for the Consent Agenda; seeing none, the public
comment period was closed.
MOTION: Council Member Addis moved approval of all items on the Consent Agenda. The
motion was seconded by Council Member Davis and carried 5-0 by roll call vote.
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MINUTES - MORRO BAY CITY COUNCIL MEETING - JULY 14, 2020
B PUBLIC HEARINGS
B-1 APPEAL OF PLANNING COMMISSION APPROVAL ON JUNE 2, 2020 OF THE
CONDITIONAL USE PERMIT (CUPI9-12), COASTAL DEVELOPMENT PERMIT
(CDP2O-OO1), PARKING EXCEPTION (PKG19-05) AND A MITIGATED NEGATIVE
DECLARATION (MAY 2020) TOGETHER WITH THE MITIGATION MONITORING AND
REPORTING PROGRAM FOR A PROPOSED 35-UNIT AFFORDABLE HOUSING
PROJECT ON .94 ACRES THE PROJECT IS ZONED MCR/R-4/PD/SP AND IS NOT
WITHIN THE COASTAL COMMISSION APPEALS JURISDICTION; (COMMUNITY
DEVELOPMENT DEPARTMENT)
https://youtu.be/CVVOBwGQiv3w?t=2519
Contract Planner Hubbard provided the report and, along with Community Development
Director Graham, responded to Council inquires.
Mayor Headding opened the Public Hearing.
Betty Winholtz, Appellant, questioned the income range for qualified residents, restated
her position an elevator should be required for health and safety reasons, and that 35
parking spaces was insufficient as those making $54,000 - $77,000 per year would have
two vehicles. She suggested reducing parking needs either by having 35 one -bedroom
units or removing the 3rd story. With regard to EV parking spaces, she mentioned this
should be fleshed out in Tight of laws recently passed.
Scott Smith, Executive Director of Housing Authority of SLO ("HASLO"), responded to
issues raised by the Appellant, providing clarification with respect to income requirements,
and building regulations related to elevators and parking.
The applicant responded to questions by Council Members.
Mayor Headding opened Public Comment.
Jim Rendler, Co -Developer with HASLO, clarified 30% of the median income for a single -
person household is $20,000, which equates to Tess than $10 per hour.
An unnamed individual asked the Council to consider the parking, traffic, and safety issues
the project would create for neighbors.
Roger Ewing, Morro Bay, spoke in support of the Appellant, stating he was primarily
concerned with traffic impacts.
Erica Crawford, Chamber of Commerce, spoke in support of affordable housing in terms
of how it helps business owners retain employees. She encouraged the Council to engage
members for their perspective on the issue.
Dan Sedley, Morro Bay, raised questions and expressed concern regarding safety issues,
parking and increased traffic.
The public comment period for Item B-1 was closed.
Staff responded to additional questions from the Council and issues raised during public
comment.
The Public Hearing was closed.
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MINUTES - MORRO BAY CITY COUNCIL MEETING JULY 14, 2020
MOTION: Council Member Davis moved to adopt Resolution No. 68-20, making the
necessary findings to deny the appeal and uphold the Planning
Commission approval of Conditional Use Permit (CUP19-12), Coastal
Development Permit (CDP2O-001), Parking Exception (PKGI9-05) and a
Mitigated Negative Declaration dated May 2020 for the site at 405
Atascadero Road to allow a 35-unit deed restricted affordable housing
project on a 0.94 acre site. The motion was seconded by Council Member
Addis.
Council Member Heller stated for the record that, while it was important to pursue
affordable housing projects, he didn't believe the project provided adequate parking, was
not convinced there are no traffic safety problems at this location, and also not convinced
the project will be significantly close to public transportation.
A majority of the Council agreed affordable housing is desperately needed, the project
had been carefully reviewed by the Planning Commission and met all State and local
requirements, and the Appellant's issues and concerns had been adequately addressed.
Following discussion, the motion carried 4-1 by roll call vote with Council Member Heller
opposed.
C. BUSINESS ITEMS
C-1 CONSIDERATION OF APPROVING THREE ELECTION RESOLUTIONS TO PLACE
BEFORE CITY VOTERS, AT THE NOVEMBER 3, 2020 GENERAL MUNICIPAL
ELECTION, A LOCAL RECOVERY AND EMERGENCY PREPAREDNESS SALES TAX
BALLOT MEASURE TO REPEAL CHAPTER 3 22 (TRANSACTIONS AND USE TAX)
AND ADD CHAPTER 3.26 (TRANSACTIONS AND USE TAX) TO TITLE 3 OF THE
MORRO BAY MUNICIPAL CODE TO RAISE THE CITY'S TRANSACTIONS AND USE
TAX RATE BY 1 CENT; CONDUCT FIRST READING, BY TITLE ONLY, OF THE
PROPOSED ORDINANCE INCREASING THE CITY'S TRANSACTIONS AND USE TAX
RATE BY 1 CENT (CITY MANAGER/CITY ATTORNEY)
https://youtu.be/CVVOBwGQiv3w?t=7366
City Manager Collins, Finance Director Callaway, and City Attorney Neumeyer provided
the report and responded to Council inquiries.
The public comment period for Item C-1 was opened.
John Weiss, Morro Bay, opposed the sales tax measure and suggested the City explore
consolidating non -safety staff at the Community Center and other cost saving measures.
Homer Alexander, Morro Bay, supported placing a 1-cent sales tax measure on the ballot
so residents can decide adding those revenues could be used to replenish emergency
reserves depleted due to COVID, maintain safety services, and fund projects.
Betty Winholtz, Morro Bay, disputed the statement tourists pay 70% of sales tax collected
and suggested lowering water/sewer bills to gain support for a tax measure.
Dan Sedley, Morro Bay, opposed placing a sales tax measure on the ballot and suggested
more can be done to reduce City expenses.
Walter Heath, Morro Bay, served on the City Manager roundtable with six other residents
who looked at both cost reductions and revenue increases and decided unanimously it
was appropriate to let the voters weigh in. He hoped the Council would vote unanimously
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MINUTES - MORRO BAY CITY COUNCIL MEETING - JULY 14, 2020
to place the measure on the ballot as an indication the voters should have the opportunity
to decide.
Erica Crawford, Morro Bay Chamber of Commerce, referred to the fiscal memo submitted
at the previous meeting and offered the Chamber's support for a sales tax measure.
The public comment period for Item C-1 was closed.
MOTION: Council Member Davis moved to adopt Resolutions No. 69-20 Submitting
to the Voters a Measure, entitled Morro Bay's Local Recovery/Emergency
Preparedness Measure, which increases the City's Transactions and Use
Tax Rate from .5% to 1.5% The motion was seconded by Council Member
McPherson for discussion.
Council Member McPherson requested the motion be amended to change
language in Section 3 on page 159 to read "the City Council hereby
approves the form of the Ordinance and approves its submission to the
voters at the November election " Council Member Davis accepted the
friendly amendment.
Following discussion, the motion carried 5-0 by roll call vote.
MOTION: Council Member Davis moved approval of Resolution No. 70-20, as
presented, Setting Priorities for Filing Written Argument(s) and Directing
the City Attorney to Prepare an Impartial Analysis regarding the Morro Bay
General Transactions and Use Tax Measure, submitted at the General
Municipal Election on November 3, 2020. The motion was seconded by
Council Member McPherson for discussion.
Following discussion, the motion carried 5-0 by roll call vote.
MOTION: Council Member McPherson moved the meeting go beyond 9:30 p.m. The
motion was seconded by Council Member Davis and carried 5-0 by roll call
vote.
MOTION: Council Member Davis moved approval of Resolution No. 71-20 Providing
for the Filing of Rebuttal Arguments regarding the Morro Bay General
Transactions and Use Tax Measure, submitted at the General Municipal
Election on November 3, 2020 The motion was seconded by Council
Member McPherson and carried 5-0 by roll call vote.
MOTION: Council Member McPherson moved to conduct first reading, by title only,
with further reading waived, of the proposed Ordinance No. 635 `An
Ordinance of the People of the City of Morro Bay California, Repealing
Chapter 3.22 and Adopting Chapter 3.26 of the Morro Bay Municipal Code
to increase the City's Transactions and Use Tax Rate from .5% to 1.5%",
with the ordinance being subject to voter approval for enactment. The
motion was seconded by Council Member Davis and carried 5-0 by roll call
vote.
C-2 APPROVAL OF PURCHASE AND SALE AGREEMENT FOR PERMANENT AND
TEMPORARY EASEMENTS RELATED TO THE WATER RECLAMATION FACILITY
OVER PORTIONS OF THE REAL PROPERTY LOCATED NEAR THE INTERSECTION
OF SOUTH BAY BOULEVARD AND TERESA ROAD, ASSESSOR S PARCEL NO. 068-
411-07; (CITY ATTORNEY)
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MINUTES - MORRO BAY CITY COUNCIL MEETING - JULY 14, 2020
https://youtu.be/CVVOBwGQiv3w?t=14196
City Attorney Neumeyer provided the report.
The public comment period for Item C-2 was opened.
Dan Sedley, Morro Bay, felt the agenda item did not adequately describe the need for the
property, its location, surroundings, and acreage.
Betty Winholtz, Morro Bay, concurred with Mr. Sedley's comments and asked why it was
necessary to purchase the property when the City was initially comfortable having an
easement. She also questioned the property owner's desire to re -zone property
The public comment period for Item C-2 was closed.
Staff responded to questions raised during public comment.
MOTION: Council Member Addis moved to approve as submitted and authorize City
Manager to sign the Purchase and Sale Agreement and all necessary
documents to implement the agreement. The motion was seconded by
Council Member Davis for discussion.
Following discussion, the motion carried 4-1 by roll call vote with Council Member Heller
opposed.
C-3 ADOPTION OF RESOLUTION NO. 72-20 APPROVING A NEW HARBOR
DEPARTMENT LEASE MANAGEMENT POLICY THAT INCLUDES A NEW MASTER
LEASE FORMAT, RESCINDING RESOLUTIONS NO. 66-01 THAT APPROVED THE
CURRENT LEASE MANAGEMENT POLICY AND NO. 31-02 THAT APPROVED A NEW
MASTER LEASE FORMAT, AND PROVIDE DIRECTION ON NEW POLICY
IMPLEMENTATION NEXT STEPS; (HARBOR DEPARTMENT)
https://youtu. be/CWOBwGQiv3w?t=14969
Harbor Director Endersby provided the report and responded to Council inquires.
The public comment period for Item C-3 was opened; seeing none, public comment was
closed.
MOTION:
Council Member McPherson moved to adopt Resolution No. 72-20
approving a new Harbor Department Lease Management Policy (LMP) and
Master Lease format, rescinding Resolution Nos. 66-01 that approved the
current Lease Management Policy and Resolution No. 31-02 that approved
a new Master Lease Format. The motion was seconded by Council
Member Davis and carried 5-0 by roll call vote.
A majority of the Council agreed discussions about in-house vs. contracted lease/property
management and the possible formation of a harbor district or parcel tax to help fund
capital improvements should begin early 2021.
D. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
https://youtu.be/CWOBwGQiv3w?t-17735
Mayor Headding referred to the current WRF rate surcharge adjustment policy requiring
staff to analyze revenues and expenses and provide a report to Council on the ability to
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MINUTES - MORRO BAY CITY COUNCIL MEETING -- JULY 14, 2020
potentially decrease rates. He requested the report be brought to Council in late August
and received full support for the item.
Council Member Heller requested discussion of options related to the current fireworks
ordinance. There was Council support to bring this issue back prior to July 4, 2021.
E ADJOURNMENT
The meeting adjourned at 10:28 p.m.
Recorded by:
Dana Swanson
City Clerk
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MINUTES - MORRO BAY CITY COUNCIL MEETING - JULY 14, 2020