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HomeMy WebLinkAboutCC_1983-07-25 Regular Meeting MinutesMORRO BAY CITY COUNCIL REGULAR MEETING - JULY 25, 1983 RECREATION HALL - .7 :.3.0 P.M. ** 3:30 P.M. - BUDGET SESSION ** 5:00 P.M. - CLOSED SESSION ROLL CALL PLEDGE OF ALLEGIANCE - Horace Strong INVOCATION - Lance Poldberg, Calvary Lutheran Church A. PUBLIC HEARINGS, REPORTS & APPEARANCES A-1 CONSIDERATION OF RESOLUTION TO AMEND MASTER FEE SCHEDULE TO ADD CERTAIN CHARGES FOR LEASE CHANGES B. UNFINISHED BUSINESS B-1 ORDINANCE TO INCREASE BED TAX TO EIGHT PERCENT (8%) (2nd reading) B-2 ORDINANCE TO INCREASE BED TAX TO EIGHT PERCENT (8%) AND EXTEND TAX TO RECREATIONAL VEHICLE PARKS (2nd reading) B-3 ORDINANCE TO ESTABLISH A HARBOR COMMISSION (2nd reading) B-4 ORDINANCE TO ESTABLISH A THREE PERCENT (3%) UTILITY USERS TAX (2nd reading) B-5 CONSIDERATION OF ADOPTION OF THE 1983-84 BUDGET C. NEW BUSINESS C-1 ADOPTION OF A 2-YEAR CONTRACT WITH MORRO BAY CITY EMPLOYEES ASSOCIATION C-2 ADOPTION OF A 2-YEAR CONTRACT WITH MORRO BAY CONFIDENTIAL EMPLOYEES C-.3 DESIGNATION OF VOTING DELEGATE FOR LEAGUE ANNUAL CONFERENCE IN OCTOBER C-4 CONSIDERATION OF FINANCING LOCAL GOVERNMENT PARTICIPATION IN OCS LEASE PROCESS C-5 APPROVAL OF LESSEE NAME CHANGES: OGLE, LEAGE, RUSE, TO GREAT AMERICAN FISH COMPANY (A REGISTERED CALIFORNIA PARTNERSHIP) D. CONSENT CALENDAR D-1 CITY COUNCIL MINUTES OF 6/27 REGULAR AND ADJOURNED MEETINGS, AND 7/1.1 REGULAR AND ADJOURNED MEETINGS D-2 CITY OF MORRO BAY EXPENDITURE REPORT FOR JUNE, 1983 D-3 RESOLUTIONS COMMENDING WATER ADVISORY BOARD MEMBERS D-4 APPROVAL OF WEED ABATEMENT CHARGES FOR 1983-84 E. INDIVIDUAL DETERMINATION AND/OR ACTION E-1 CITY COUNCIL E-2 CITY ATTORNEY E-3 CITY ADMINISTRATOR MORRO BAY CITY COUNC.LL ADJOURNED MEETING - JULY 25, 1983 RECREATION HALL - 3:30 P.M. AGENuA NO. Date W . _ Action Mayor Shelton called the meeting to order at 3:30 p.m. following members present: P RESENT: S TAFF: Eugene R. Shelton Rodger Anderson John Lemons Bruce Risley Bud Zeuschner P aul Baxter Murrel Crump Dave Howell Gary Napper N ick Nichols Gere Sibbach S tan Thomas S teve Wolter P eggy Buchanan Mayor Councilmember Councilmember Councilmember Councilmember with the City Administrator Community Development P olice Chief Asst. to City Administrator P ublic Works Director Finance Director'` Fire Captain Recreation Director Deputy City Clerk Mr. Baxter reviewed information recently received regarding the State Budget, and informed Council that the City might stand to lose an additional $40,000 in revenues, for a total loss of $180,000, which is $20,000 more than budgeted for. Mr. Baxter then noted that staff had prepared a suggested list of reductions in expenditures in lieu of the adoption of the utility t ax, for a total of $189,225 in additional cuts. Mr. Baxter itemized each Department's cuts, and stated that even with these proposed reductions, the General Fund will not be in balance. Mr. Baxter noted that the reserves can carry the fund for another year, but this will make next year's budget decisions even more difficult. Councilmember Lemons questioned what percentage of the $189,225 is in General Fund cuts. Mr. Sibbach stated that he would have to calculate that percentage. Mayor Shelton stated that the list of reductions as presented was a possible scenario for Council to consider if the utility tax is not imposed. Mayor Shelton noted that previous policy decision had been to maintain services that would affect the public safety, as well as the Dial -A -Ride services and street maintenance program. Mayor Shelton asked the Department Heads how their proposed cuts would affect the public safety. 1 MORRO BAY CITY COUNC.�L ADJOURNED MEETING - JULY 25, 1983 P AGE TWO Chief Howell stated that the proposed reduction of the Youth S ervices Officer would have an adverse impact on the City in general, and cited recent statistics regarding the decrease in youth related crimes. Chief Howell noted that the Neighborhood Watch Program cut would also have an affect on residential crimes. Councilmember Risley stated that he had prepared an alternative t o the proposed Utility Users Tax and current budget problems, and stated that Council should consider an across the board 3% cut in all programs as well as increasing the water and sewer availability fees, and imposing the bed tax on recreational vehicles. Councilmember Risley also suggested that the contingencies be reduced to $282,700. Councilmember Risley acknowledged that this alternative would not balance the General Fund, but felt that it was a good step in that direction. Councilmember Risley also felt that the water rates as recently adopted were inequitable, and suggested that eventually the City w ill have to consider reducing personnel to be cost effective. Councilmember Risley noted that in reviewing this years e xpenditures, many departments had come in under budget, and so a 3% cut should not be that difficult. Councilmember Lemons stated that it would not be possible to ✓ educe all expenditures by 3% as there were some funds such as Gas Tax Funds, and water and sewer funds that could not be used for any other purpose. Councilmember Lemons noted that this alternative does not balance the General Fund, and would cause problems with interfund transfers. Councilmember Lemons suggested that the cuts be restricted to the General Fund only. M'May Diffley presented Council with petitions in opposition to t he Utility Users Tax as proposed by Council earlier. Mrs. Diffley stated that the petitions reflect the feelings of the Civic Action League, and felt that an across the board cut is n eeded. Howard Gaines stated that a "quick -fix' solution was not needed, and suggested that a committee of residents be allowed to make a comprehensive study to determine where cuts need to be made. Mr. Gaines suggested that a hiring freeze be instated and the e mployee workforce be reduced by attrition as well as considering t he possibility of service districts or a volunteer fire department. Mr. Gaines felt the City should reduce personnel costs. Council then discussed the "average" wage for City employees. 2 MORRO BAY CITY COUNC±L ADJOURNED MEETING - JULY 25, 1983 PAGE THREE Katherine Walling spoke in favor of a volunteer fire department and the 3% across the board cut. Mr. Baxter stated that the budget print-out that Councilmember Risley referred to was deceiving, in that it did not show why there was a discrepancy in expenditures in many areas. Mr. Baxter stated that personnel turn -over, plus many one-time only credits were not reflected. Mr. Baxter noted that the City had recieved a one time savings in PERS money of 1%. Katherine Walling stated that there is a general feeling among many people that the City has too many employees. John Laniers stated that the employees in the Public Works Department had attempted earlier to make cuts in their Department Budget and have lost two employees. Mayor Shelton stated that perhaps the Council should take a straw poll regarding support for utility users tax. Councilmember Risley felt that the utility tax was too much to ask for on top of increased water and sewer rates. Councilmember Anderson stated that the City should proceed toward a balanced General Fund without additional revenue sources. Councilmember Anderson suggested that limits be set on certain programs that are funded from the General Fund such as public t ransportation, and street maintenance. Councilmember Zeuschner felt that there might be innovative ways t o make cuts in services although there might also be some inconvenience to the public in these cuts. Councilmember Zeuschner agreed that the Utility Users Tax would probably not succeed. Mayor Shelton reviewed the budget procedures to date, and noted t hat staff had provided a recommended budget, and had given alternatives to balance the General Fund. Mayor Shelton noted t hat Council was not in favor of several of staff's recommendations, and would have to determine what other services should be reduced, or where the revenues were to come from. Councilmember Lemons stated that although it was important to balance the General Fund, the contingencies should not be reduced. Councilmember Lemons noted that the contingencies were already low, and might be necessary in the event of an emergency. Mr. Baxter reminded Council of their 5:00 p.m. Closed session, and requested Council direction regarding the several issues on t he agenda. 3 MORRO BAY CITY COUNCIL ADJOURNED MEETING - JULY 25, 1983 P AGE FOUR Councilmember Zeuschner felt that Council had agreed to confirm t he figures in the budget regarding allocation for Chamber of Commerce. Councilmember Anderson felt that additional discussion was needed ✓ egarding allocation for Community Promotions. MOTION: Councilmember Zeuschner moved to adjourn to Closed Session in the City Hall Conference Room. The motion was seconded by Councilmember Anderson and carried unanimously. (5-0) The meeting was adjourned to the Conference Room at 5:00 p.m. RESPECTFULLY SUBMITTED, P EGGY BUCHANAN DEPUTY CITY CLERK 4 • MORRO BAY CITY COUNCsL REGULAR MEETING - JULY 25, 1983 RECREATION HALL - 7:30 P.M. AGENDA O. Data els Action Mayor Shelton called the meeting to order at 7:30 p.m. ROLL CALL P RESENT: Eugene R. Shelton Rodger Anderson John Lemons Bruce Risley Bud Zeuschner STAFF: P aul Baxter Mike LeSage Murrel Crump Dave Howell Gary Napper N ick Nichols Gere Sibbach S tan Thomas S teve Wolter P eggy Buchanan Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Community Development Director P olice Chief Asst. to City Administrator P ublic Works Director Finance Director Fire Captain Recreation Director Deputy City Clerk The Pledge of Allegiance was led by Ray Kaltenback, and the Invocation was offered by Lance Poldberg. A. PUBLIC HEARINGS, REPORTS AND APPEARANCES A-1 CONSIDERATION OF RESOLUTION TO AMEND MASTER FEE SCHEDULE TO ADD CERTAIN CHARGES FOR LEASE CHANGES Mr. Napper stated that a Resolution had been prepared for Council's consideration regarding proposed fee charges for lease changes. Mr. Napper noted that a detailed staff time and costs estimate chart had also been prepared, and in conformance with P roposition 4, no fees proposed would exceed the actual cost of t he service. Mr. Napper stated that the estimated annual revenue for these charges would be approximately $3,000. Mayor Shelton opened the Public Hearing. Howard Gaines felt that in addition to charging for lease changes, the City should include in the Resolution stipulations t hat the back rent be paid and any maintenance required be completed. Mr. Baxter stated that these are conditions which already exist. MOTION: Councilmember Zeuschner moved that the Public Hearing be closed. The motion was seconded by Councilmember Risley and carried unanimously. (5-0) 1 MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 25, 1983 PAGE. TWO Councilmember Risley asked what the effective charges would be. Mr. Baxter adoption. MOTION: date for these stated that the Resolution would be effective upon Councilmember Zeuschner moved that Council adopt the Resolution approving the fees for lease changes as submitted. The motion was seconded by Councilmember Risley and carried by the following roll call vote: AYES: Zeuschner, Risley, Lemons, Shelton NOES: None ABSENT: None ABSTAIN: Anderson B. UNFINISHED BUSINESS B-1 ORDINANCE TO INCREASE BED TAX TO EIGHT PERCENT (8%) (2ND READING) Mr. Baxter stated that this was the second reading of the Ordinance to increase the Transient Occupancy Tax from 6% to 8%. Mr. Baxter recommended that Council adopt this Ordinance as a final reading. Mr. LeSage provided Council with a report regarding the potential to impose the bed tax on recreational vehicles. Mr. LeSage cited several code sections and noted that although he had no doubts about the legality of such an action, it might very well be challenged in court which could be extremely costly. MOTION: Councilmember Zeuschner moved that the Ordinance to increase the bed tax to 8% be read by title and number only. Councilmember Risley secondedthe motion and it was carried unanimously. (5-0) Mr. Baxter read the Ordinance by title and number only. Mr. Smith stated that the Ordinance should not be effective until January lst, to allow those persons with prepaid deposits to avoid the increase. Ernie Miller felt that the bed tax should be lowered instead of raised, to promote sales, and increase the sales tax by 1%. Mr. LeSage reminded Council that the City is presently unable to implement a sales tax increase. 2 MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 25, 1983 PAGE THREE Joe Giannini felt that the businesses are suffering already and Council should not increase their tax burden. Herminia Ward spoke in opposition to the bed tax increase. Mary Phillips stated that the tax on recreational vehicles would be illegal. Mayor Shelton stated that the increase in revenues was necessary to support Council policy decisions regarding certain programs. Councilmember Risley felt that the bed tax increase is necessary and noted that although the City is dependent upon tourism, it does cost the City in terms of street maintenance, police and fire protection, and the increased capacity necessary in the sewer plant and water useage. MOTION: Councilmember Zeuschner moved that the Ordinance be approved for its final reading. The motion was seconded by Coucilmember Risley and carried by the following roll vote: AYES:Zeuschner, Risley, Anderson, Lemons, Shelton NOES: None ABSENT:None B-2 ORDINANCE TO INCREASE THE BED TAX TO EIGHT PERCENT (8%) AND EXTEND TAX TO RECREATION VEHICLE PARKS Mr. LeSage stated that if adopted, this Ordinance would then supercede the previously adopted Ordinance. Councilmember Risley stated that he would like to examine a w ritten legal opinion. Mr. Baxter stated that Mr. LeSage had provided him with a written o pinion and this would be supplied to Council. Councilmember Risley stated that he would like to see the opinion prior to any discussion. Mr. LeSage reviewed the recreational vehicle tax matter, and stated again that although he had no doubts regarding its legality, the City would be risking legal costs if the matter w ere challenged in court. 3 MORRO BAY CITY COUNCsL REGULAR MEETING - JULY 25, 1983 PAGE FOUR Councilmember Lemons noted that this Ordinance could have a bad effect on those small parks who would be placed in competition with the State Parks, and felt Council should consider the matter carefully. Mayor Shelton stated that the Council would accept public comment. Howard Gaines asked whether this Ordinance would affect those parks that allowed monthly rentals. Mr. Baxter stated that this Ordinance would affect only those ✓ entals of thirty days or less. Mary Phillips felt that this was a special tax and would require a 2/3 vote of the public. Mr. LeSage stated that this was a policy decision and would not ✓ equire a vote. Jack Curry stated his feelings regarding the tax on recreational ✓ ehicles, and added that the California Travel Park Association was also in opposition to the tax and felt that it was illegal. Mr. Curry also objected to the tourists being singled out to pay for increasing city spending. Mayor Shelton stated that he would return the hearing to the Council for discussion. Councilmernber Lemons felt that the City should be cautious about implementing this tax on R.V.'s as it may cause additional litigation and legal fees. Councilmernber Anderson stated that Council should consider the ✓ evenue to be gained versus the potential ligigation cost. MOTION: Councilmember Zeuschner moved to table this Ordinance. Councilmernber Risley seconded the motion and it was carried by the following roll call vote: AYES: Zeuschner, Risley, Lemons NOES: Anderson, Shelton ABSENT: None Mayor Shelton felt that the Ordinance was legal and should be adopted. 4 MORRO BAY CITY COUNCsL REGULAR MEETING — JULY 25, 1983 P AGE FIVE B-3 ORDINANCE TO ESTABLISH A HARBOR COMMISSION (2ND READING) Mr. Baxter stated that this was the second reading of the O rdinance to establish a Harbor Commission. Mr. Baxter noted that t he Ordinance had been amended to reflect Council's direction ✓ egarding terms of office, and jurisdictional boundaries. Mr. Baxter recommended that the Ordinance be adopted as a final ✓ eading. MOTION: Councilmember Zeuschner moved that the Ordinance be ✓ ead by title and number only. The motion was seconded by Councilmember Lemons and carried u nanimously. (5-0) Mr. Baxter read the ordinance by title and number only. MOTION: Councilmember Zeuschner moved that the Ordinance be adopted as a final reading. The motion was seconded by Councilmember Risley and carried by the following ✓ oll call vote: AYES: Zeuschner, Risley, Anderson, Lemons, Shelton NOES: None ABSENT: None Councilmember Lemons asked what the status of the Harbor Commission By -Laws was. Mr . Baxter stated t h a t the y had been revised and were forwarded to the Harbor Commission for their review and then returned to the City Council. B-4 ORDINANCE TO ESTABLISH A THREE PERCENT (3%) UTILITY USERS TAX (2ND READING) Mr. Baxter stated that this was the second reading of an o rdinance to impose a 3% utility users tax. Mayor Shelton stated that Council had discussed this Ordinance during the budget session, and was in agreement that it was not an appropriate time to enact such a tax. MOTION: Councilmember Lemons moved that the Ordinance be tabled. The motion was seconded by Councilmember Anderson and carried by the following roll call ✓ ote: 5 MORRO BAY CITY COUNCsL REGULAR MEETING - JULY 25, 1983 PAGE SIX AYES: Lemons, Anderson, Zeuschner, Shelton NOES: Risley ABSENT: None Councilmember Risley felt that the Ordinance should be acted upon and killed. Council briefly discussed the status of the Ordinance. M'May Diffley stated that the petitions she had presented agreed with Council's decision. B-5 CONSIDERATION OF ADOPTION OF THE 1983-84 BUDGET Mr. Baxter suggested that this item be held until the conclusion of the agenda. Council concurred. The meeting was recessed briefly at 8:45 p.m. and reconvened at 9:00 p.m. C. NEW BUSINESS C-1 ADOPTION OF A 2-YEAR CONTRACT WITH MORRO BAY CITY EMPLOYEES ASSOCIATION Mr. Baxter informed Council that a proposed 2-year contract with the Morro Bay Miscellaneous Employees had been reached, which meets the parameters of the Council's direction. Mr. Baxter recommended that Council adopt the Resolution providing for a 2- year contract with the Miscellaneous Employees as submitted. MOTION: Councilmember Risley moved that the Council adopt the Resolution approving a 2-year contract with the Morro Bay Miscellaneous Employees as submitted. The motion was seconded by Councilmember Zeuschner and carried unanimously. (5-0) C-2 ADOPTION OF 2-YEAR CONTRACT WITH MORRO BAY CONFIDENTIAL EMPLOYEES Mr. Baxter stated that a proposed 2-year contract with the Morro Bay Confidential Employees had been reached, and recommended that Council adopt the Resolution providing for this two-year contract. 6 MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 25, 1983 PAGE SEVEN MOTION: Councilmember Zeuschner moved that Council adopt the Resolution approving a 2-year contract with the Morro Bay Confidential Employees as submitted. The motion w as seconded by Councilmember Risley and carried u nanimously. (5-0) C-3 DESIGNATION OF VOTING DELEGATE FOR LEAGUE ANNUAL CONFERENCE IN OCTOBER Mr. Baxter stated that Council needed to designate a representative to be the voting delegate at the League of California Cities Annual Conference in October. Councilmember Risley asked who was attending, and suggested that Councilmember Zeuschner be the delegate. MOTION: MOTION: Councilmember Risley moved that Council nominate Councilmember Zeuschner as voting delegate. The motion was seconded by Mayor Shelton and carried unanimously. (5-0) Mayor Shelton moved that Councilmember Lemons be nominated as alternate voting delegate. The motion w as seconded by Councilmember Risley and carried u nanimously. (5-0) C-4 CONSIDERATION OF FINANCING LOCAL GOVERNMENT PARTICIPATION IN OCS LEASE PROCESS Mr. Baxter stated that this was a request from Santa Cruz County t o participate in the financing for local government participation in the OCS lease process. The request is for a $1,000 contribution. Mr. Baxter suggested that this matter be held for consideration during budget session. Council concurred that the matter be held until the next budget sesion. C-5 APPROVAL OF LESSEE NAME CHANGES: OGLE, LEAGE, RUSE; TO GREAT AMERICAN FISH COMPANY (A REGISTERED CALIFORNIA PARTNERSHIP) Mr. Baxter stated that a Resolution and Assignment and Assumption Agreements had been prepared for a name change as requested by O lge, Leage and the Estate of Ralph Ruse. Mr. Baxter noted that t he name change to Great American Fish Company had been approved by the City Attorney. 7 MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 25, 1983 P AGE EIGHT Mr. LeSage stated that this was a pro forma change, and the lease assignment could not be withheld if the assignee is equally qualified. Mr. Baxter stated that the rent for this lease was up to date and in full compliance with the terms of the lease. MOTION: Councilmember Zeuschner moved that Council approve the Resolution and Agreements of Assignment and Assumption as submitted, subject to a review by Jack Wallace for compliance with lease terms. The motion was seconded by Councilmember Risley and carried by a unanimous vote. D. CONSENT CALENDAR D-1 CITY COUNCIL MINUTES OF 6/27 REGULAR AND ADJOURNED MEETINGS, AND 7/11 REGULAR AND ADJOURNED MEETINGS Mr. Baxter recommended approval of the above minutes as submitted. D-2 CITY OF MORRO BAY EXPENDITURE REPORT FOR JUNE 1983 Mr. Baxter recommended approval of the Expenditure Report for t he City of Morro Bay for the month of June 1983. D-3 RESOLUTIONS COMMENDING WATER ADVISORY BOARD MEMBERS Mr. Baxter recommended that Council adopt the Resolution commending Pat Nagano and Lee Schultz for their work on the Water Advisory Board. D-4 APPROVAL OF WEED ABATEMENT CHARGES FOR 1983-84 Mr. Baxter recommended that Council approve the weed abatement changes for 1983-84 as submitted. D-5 BROWN AND CALDWELL AMENDMENT NO. 2 TO TASK ORDER NO. 2 Mr. Baxter recommended that Council approve the Amendment No. 2 t o Task Order No. 2, for a one month extension. D-6 APPROVAL OF BIDS FOR RADON ENGINE Mr. Baxter recommended that Council approve the low bid by S tacey's Marine for delivery of an engine by August 3, in the amount of $10,860, and approve the bid as an urgency measure, with a finding of fact that the engine is essential for fire fighting 8 MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 25, 1983 PAGE NINE Councilmember Zeuschner made a minor correction to the City Council minutes of July llth, to record his vote as no on item B- 2. MOTION: MOTION: Councilmember Lemons items D-1, D-2, D-3, and The motion was seconded carried by the following moved that the Consent Calendar, D-5 be approved as amended. by Councilmember Risley and roll call vote: AYES: Lemons, Risley, Anderson, Zeuschner, Shelton NOES: None ABSENT: None Councilmember Zeuschner moved that Council approve low bid for item D-6, from Stacey's Marine, in the amount of $10,860, and find that due to the need for fire fighting vehicle on the harbor, this bid qualifies as an urgency measure. The motion was seconded by Councilmember Lemons and carried unanimously. (5-0) Council discussed the weed abatement program, and the process of billing and collecting from property owners. Mr. Ronk requested that Council direct that the weeds cut during weed abatement be raked up or picked up so that they do not fly around the neighborhood and create a nuisance. Councilmember Zeuschner felt that the contract for weed abatement could be amended to include clean-up of weeds after abatement. Councilmember Zeuschner suggested that staff investigate the possibility of amending this years contract as well. Mr. Baxter stated that staff could investigate the costs involved in this added service. MOTION: Councilmember Zeuschner moved that Council adopt the weed abatement charges for 1983-84 and direct staff to prepare a report regarding the possibility of adding clean-up services to the weed abatement contract for 1984. The motion was seconded by Councilmember Lemons and carried unanimously. (5-0) Howard Gaines asked who's responsibility it was to clean-up in the right-of-way. 9 MORRO BAY CITY COUNC.LL REGULAR MEETING - JULY 25, 1983 PAGE TEN Mr. LeSage stated that the area between the road and the property line is generally a shared area for clean-up, but noted that he would have to investigate to determine who as legally ✓ esponsible. Council then returned to item B-5. B-5 CONSIDERATION OF ADOPTION OF THE 1983-84 BUDGET Mayor Shelton stated that in previous budget discussions, Council had agreed to allocation $40,000 to Community Promotions, and n oted that a decision regarding funding for the Chamber of Commerce, the Twin Bridges project, and the municipal elections w as on the agenda. Councilmember Risley stated that the Council should consider a 5% allocation to the Chamber of all bed tax collected. Mr. Sibbach requested that a dollar amount be set, for inclusion in this year's budget. MOTION: MOTION: Councilmember Zeuschner moved that the City Council allocate $15,500 to the Chamber of Commerce for Visitor Information/Service. The motion was seconded by Councilmember Risley and carried unanimously. (5-0) Councilmember Anderson moved that the City Council allocate $40,000 from the General Fund for Community Promotions. The motion was seconded by Councilmember Zeuschner and carried unanimously. (5-0) Councilmember Risley suggested that staff prepare criteria for community groups eligibility regarding these funds. Councilmember Anderson stated that it was his impression that these funds would be allocated on a larger scale, for promotion o f the entire City during the "off-season", rather than divided u p to community groups for special events. Councilmember Zeuschner stated that staff should prepare the criteria for the general use of the money. Mr. Baxter stated a criteria would be drafter and returned to Council in 2 - 4 weeks. Mayor Shelton asked for Council direction regarding the municipal e lection in 1984. 10 MORRO BAY CITY COUNCsL REGULAR MEETING - JULY 25, 1983 PAGE ELEVEN MOTION: Councilmember Risley moved that the municipal election be held in November of 1984 rather than in June. The motion was seconded by Councilmember Zeuschner and carried unanimously. (5-0) Council then discussed the Twin Bridges funding level. Councilmember Lemons felt that the program would be of significant benefit to the City and funds should remain allocated as a pledge of future commitment. Councilmember Anderson agreed that the City had consent to cooperate with the County on this project. Councilmember Lemons stated that the original $75,000 had been pared down to $15,000 and felt that the $15,000 should remain. Mayor Shelton stated that one alternative proposal had been put forth by Councilmember Risley, and suggested that it be reviewed. Councilmember Risley briefly reviewed his alternative proposal to balance the budget by an across the board 3% decrease, a ✓ eduction in contingencies, an increase in availability fees and an increase in sewer fees. Councilmember Risley felt that a 3% decrease would not severely affect any one program but would ✓ educe all programs equally. Mayor Shelton noted that there would be a difficulty in certain funds, and Council had already made policy decision regarding o ther programs, so this cut would have to be tailored around these previous decisions. Councilmember Lemons stated that the problem is in the General Fund, and this proposal will not help to balance this fund. Councilmember Lemons suggested that General Fund expenditures alone be lowered. Council discussed the alternative proposal by Councilmember Risley, and the proposed cuts made earlier by staff. Joe Giannini suggested that departments be consolidated and staff ✓ educed. Mayor Shelton stated that it was difficult to pinpoint areas for cutbacks in staff. M'May Diffley suggested a 5% across the board cutback, which w ould save approximately $293,666. 11 MORRO BAY CITY COUNC..L REGULAR MEETING - JULY 25, 1983 PAGE TWELVE Herminia Ward stated that a long-term solution is needed, rather than the cuts each year. Katherine Walling suggested that the City develop a municipal golf course in north Morro Bay. Councilmember Zeuschner asked what a 3% cut in the General Fund would produce in savings. Mr. Sibbach stated that it would be approximately $76,000. Mr. Sibbach reviewed the operating expenses from the General Fund, and stated that the budget is balanced as presented, but the General Fund portion of the budget is not in balance. Councilmember Zeuschner felt a reluctance to shrink city services any further, and felt that by reducing General Fund Expenditures by 2% and reducing contingencies to $256,000, the budget could be balanced. Council discussed alternatives to an across the board cut. Mayor Shelton suggested that staff bring back information showing a 3%, a 4% and a 5% cutback in General Fund expenditures. Councilmember Anderson felt that eventually permanent staff cuts will need to be made as well as cuts in services. Mr. Baxter stated that staff's original recommendation would be to address a gradual reduction in services rather than a drastic cut in staff or services. MOTION: Councilmember Zeuschner moved that Council request staff to prepare information regarding a 4% cut in General Fund expenditures, and that contingencies be reduced to $250,000. The motion was seconded by Councilmember Risley and carried unanimously. (5-0) Mr. Baxter questioned whether this 4% cut would include street maintenance and Dial -A -Ride. Councilmember Zeuschner suggested that the 4% cut not include specific amounts approved earlier for these programs. Council agreed to set the next budget hearing for the first regular meeting in August. 12 MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 25, 1983 PAGE THIRTEEN Councilmember Risley requested that the Public Works staff re- examine the sewer rate structure for next year, to equalize the increases for all users. Council discussed the water rate structures for mobile home parks and apartment buildings, and requested that staff provide information how these rates can be equalized. E. INDIVIDUAL DETERMINATION AND/OR ACTION E-1 CITY COUNCIL Mayor Shelton stated that he would be in Sacramento on Monday to meet with Gordon Duffy regarding the offshore oil leasing. MOTION: Councilmember Risley moved that Council authorize the Mayor to travel to Sacramento to meet with Mr. Duffy. The motion was seconded by Councilmember Zeuschner and carried unanimously. (5-0) Councilmember Risley suggested that the Mayor contact the Governor and other legislators regarding AB166, Public Bidding legislation regarding force account labor. Councilmember Zeuschner requested that the Mayor appoint an Ad - Hoc Committee to coordinate the reception for the powerboat race to take place in January. Mayor Shelton suggested that Councilmember Zeuschner head this committee, and Council concurred. Councilmember Risley questioned the status of the Fisher project, and why it was not brought back to the Council for a policy decision. Peter Diffley stated that it was a significant policy situation, and water allocation problem, and should have come to the City Council before it was appealed by the Coastal Commission. Mr. Crump stated that project was being appealed by the Executive Director of the Coastal Commission regarding the Planning Commission decision. Mr. Crump stated that the City Ordinance allowed a local appeal period of 10 days, and then a 20 day appeal period by the Coastal Commission. Council discussed what action should be taken prior to this appeal hearing. Mr. Crump suggested that Council wait for Coastal Commission action, and then make their changes if necessary. 13 MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 25, 1983 P AGE FOURTEEN E-2 CITY ATTORNEY Mr. LeSage requested a brief closed session regarding Graham's L anding, and meet and confer. E-3 CITY ADMINISTRATOR Mr. Baxter announced that there will be a Groundbreaking Ceremony on Wednesday, July 27th at 9:00 a.m. at the Wastewater Treatment P lant. Mr. Wolter informed Council that the City had received a grant of $19,771 to partially restore Coleman Park. Mayor Shelton suggested that Councilmember Risley coordinate a meeting of Senator Maddy and Assemblyman Seastrand to discuss the City's problems with force account labor. MOTION: Councilmember Zeuschner moved that the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Lemons and carried unanimously. (5-0) The meeting adjourned to Closed Session at 12:18 a.m. MOTION: MOTION: Mayor Shelton moved that the meeting be returned to ✓ egular session at 12:38 a.m. The motion was seconded by Councilmember Zeuschner and carried u nanimously. (5-0) Councilmember Lemons moved that the meeting be adjourned to Wednesday, July 27th at 9:00 a.m. at the Wastewater Treatment Plant. The motion was seconded by Councilmember Zeuschner and carried unanimously. (5-0) The meeting was adjourned at 12:40 a.m. RESPECTFULLY SUBMITTED, P EGG HANAN DEPU Y CITY CLERK 14