HomeMy WebLinkAboutCC_2024-01-09 Regular Meeting Minutes - signed
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MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING
January 9, 2024, 5:30 p.m.
Veterans Memorial Hall, 209 Surf St., Morro Bay, CA
Members Present: Mayor Carla Wixom
Council Member Jennifer Ford
Council Member Laurel Barton
Council Member Zara Landrum
Council Member Cyndee Edwards
Staff Present: City Manager Yvonne Kimball
City Attorney Chris Neumeyer
Asst City Mgr/Admin Svcs Director Steve Conway
Public Works Director Greg Kwolek
Community Development Director Scot Graham
Police Chief Amy Watkins
Fire Chief Dan McCrain
Harbor Director Ted Schiafone
City Clerk Dana Swanson
_____________________________________________________________________
1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 5:31 p.m., with all members present.
2. MOMENT OF SILENCE
3. PLEDGE OF ALLEGIANCE
4. REPORTS
4.a Closed Session Report
City Attorney Neumeyer announced no reportable action was taken in
closed session.
4.b Mayor and Councilmembers' Reports, Announcements and
Presentations
https://youtu.be/0j8c8tgmodY?si=hnoAd6CMmgEue6cc&t=87
4.c City Manager Reports, Announcements and Presentations
None
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5. RECOGNITION AND PRESENTATIONS
5.a City of Morro Bay Years of Service Awards
https://youtu.be/0j8c8tgmodY?si=fxmsS9i846_90k4l&t=327
5.b Shower Program Presentation by Wendy Blackert, 805 Street
Outreach
https://youtu.be/0j8c8tgmodY?si=7LQSnekWuxooLfHn&t=542
6. PUBLIC COMMENT
https://youtu.be/0j8c8tgmodY?si=FLZ2vPXvaCqRQHkN&t=859
Bill Luffee, Morro Bay, announced Friends of the Morro Ba y Harbor Department
fundraising efforts to purchase a Rescue UTV for the Harbor Department.
Cooper Lienhart, member of SLO County Beaver Brigade, explained how
beavers help preserve the estuary by combatting seawater intrusion. Visit SLO
Beaver Brigade to learn more.
Linda Winters, Morro Bay, appreciated the City's flood preparedness efforts and
evacuation zone information.
Kathy Baker, Morro Bay, requested the City correct discrepancies in no-smoking
signage at Del Mar Dog Park.
Gene Doughty commented on challenges specific to waterfront construction
projects.
Jeanne Marie Colby, Morro Bay, spoke in support of the current Short-Term
Rental ordinance noting increased enforcement by the City and HdL was n eeded.
Barry Branin, Morro Bay, appreciated the City's efforts to address homeless
issues along Quintana.
David Sozinho, Morro Bay, spoke in support of Three Stacks Brewing and hoped
the City would honor the original lease terms.
An unnamed resident made statements regarding leadership.
Betty Winholtz, Morro Bay, urged the City to avoid noticing tree removals over the
holidays as it limited resident input, and asked when budgeted paving work
would occur.
Jane Von Koehe, Morro Bay, commented on paving needs in north Morro Bay.
Jim Curnutt, Morro Bay, applauded the Public Works Department for recent
improvements to the Rock parking lot.
End of public comment.
7. CONSENT AGENDA
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https://youtu.be/0j8c8tgmodY?si=Yf5egLxk0Dhpytv8&t=2731
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.
Mayor Wixom opened public comment for items on the Consent Agenda.
Glenn Silloway, Morro Bay, requested Item 7.d be pulled for discussion and
further public input.
Ryan Craig, Morro Bay, spoke regarding Item 7.g and asked that the City honor
the original lease agreement.
Sam Fischer, Cayucos, spoke regarding Item 7.g and hoped the parties would
come to a mutual and amicable agreement.
Erin Downing, Los Osos, commented on Item 7.g, requesting the City negotiate a
fair lease agreement that would reflect the investment made by Three Stacks
Brewing.
Jeffrey Morgan, Morro Bay, spoke in support of Three Stacks Brewing.
Shalagh Olmo, Morro Bay resident and business owner, commented on Item 7.g
and urged the City to honor the original lease agreement.
Rick Craig, Morro Bay, spoke in support of Three Stacks Brewing.
Juan Carlos Mercado, Morro Bay, spoke in support of Three Stacks Brewing and
asked the City to reconsider the proposed lease terms.
Ryan Aikens, Cambria, commented on the slim profit margin small breweries
face and asked the Council reconsider proposed lease terms.
Patrick Woods requested the Council postpone Item 7.g. and provide an
opportunity to negotiate in good faith toward an equitable outcome.
Chuck Nettnin, co-owner of Three Stacks & Rock Brewing, opposed the
amendment language presented in Item 7.g and asked that the item be
continued.
David Bains, Cayucos, requested the Council postpone Item 7.g, stating his
belief percentage rent was being unfairly applied to their business.
Jamie Macleod, Cambria, spoke in support of Three Stacks Brewing and
requested the Council pull the item from the consent agenda.
Andy Flanagan spoke in support of Three Stacks Brewing.
Ananda Nettnin, co-owner of Three Stacks Brewing Co., commented on lease
negotiations to date and requested the Council not approve the proposed
amendment.
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Linda Winters, Morro Bay, requested the Council pull Item 7.d from the agenda
and reconsider the proposed ordinances.
An unnamed resident commented on Item 7.d.
Nattalia Merzoyan, Morro Bay, commented on the need to elect a more
competent federal administration in the coming election year.
Gwen K., San Simeon, requested the Council pull Item 7.g for discussion.
End of public comment.
Mayor Wixom pulled Items 7.c., 7.d., and 7.g. Council Member Landrum pulled
Item 7.e.
Motion by Mayor Wixom
Seconded by Council Member Landrum
Approve Consent Agenda Items 7.a, 7.b and 7.f as submitted.
Ayes (5): Mayor Wixom, Council Member Ford, Council Member Barton, Council
Member Landrum, and Council Member Edwards
CARRIED (5 to 0)
7.a Approval of Minutes
Approve as submitted.
a. November 14, 2023 Regular Council Meeting
b. December 12, 2023 Special Closed Session Meeting
7.b Appointment of Mayor Pro Tempore; Appointment of Representatives
on Discretionary Boards; Approval of Council Liaison Assignments
and various Council Sub-committees for 2024
Appoint Council Member Zara Landrum as Mayor Pro Tempore; appoint
representatives to serve on various County or Regional Discretionary
Boards; and approve Council liaison assignments and Council Sub -
Committees for calendar year 2024 as shown on the attached
appointment list.
7.c Adoption of Resolution No. 01-24 Establishing the 2024 City Council
Meeting Calendar and Budget Development Schedule
https://youtu.be/0j8c8tgmodY?si=Ke82hdlChhehykZd&t=5314
Mayor Wixom asked for support to designate July 23rd as a regular
meeting date.
Motion by Mayor Wixom
Seconded by Council Member Landrum
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Adopt Resolution No. 01-24 approving the 2024 City Council Meeting
Calendar and Budget Development Schedule with the addition of July
23rd as a Regular Meeting.
Ayes (5): Mayor Wixom, Council Member Ford, Council Member Barton,
Council Member Landrum, and Council Member Edwards
CARRIED (5 to 0)
7.d Adoption of Ord. No. 665 for Regulation of Camping and Storage of
Personal Property on Public Property; and Adoption of Ord. No. 666
for Regulation of Overnight Human Habitation of Vehicles on Certain
Private Property
https://youtu.be/0j8c8tgmodY?si=41sScjTGOrLQ_Yv0&t=5476
Mayor Wixom requested staff provide background regarding the
preparation and implementation of the proposed ordinances. Council
members Edwards and Ford commented on the importance of ongoing
communication and transparency.
Motion by Mayor Wixom
Seconded by Council Member Landrum
1. Adopt by second reading, Ordinance No. 665, "An Ordinance of the
City Council of the City of Morro Bay, California Adding Chapter
8.26 to Title 8 of the Morro Bay Municipal Code Regulating
Camping and Storage of Personal Property on Public Property to
Mitigate Harm to Public Health, Safety and Welfare”; and
2. Adopt by second reading, Ordinance No. 666, “An Ordinance of the
City Council of the City of Morro Bay, California Adding Chapter
8.27 to Title 8 of the Morro Bay Municipal Code Regulating
Overnight Human Habitation of Vehicles on Private Property Used
for Business or Nonprofit Organization Operations to Mitigate Harm
to Public Health, Safety and Welfare.”
Ayes (5): Mayor Wixom, Council Member Ford, Council Member Barton,
Council Member Landrum, and Council Member Edwards
CARRIED (5 to 0)
7.e Approval of COL for Lease Sites 49/49W, 50-51/50W-51W and 52/52W,
Bayside Landing and Suites project, presented by Paul Gillen
https://youtu.be/0j8c8tgmodY?si=PCulnFjPCc_6K37x&t=6933
Council Member Landrum pulled the item to announce the City is in the
process of modernizing its Tidelands Lease Management Policy.
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Motion by Council Member Landrum
Seconded by Mayor Wixom
Adopt Resolution No. 02-24 approving the Consent of Landowner (“COL”)
so that the Developer can move forward with an application for a
Conditional Use Permit thus allowing the Community Development
Department, Planning Commission, and the public the opportunity to
review and comment on the proposed project.
Ayes (5): Mayor Wixom, Council Member Ford, Council Member Barton,
Council Member Landrum, and Council Member Edwards
CARRIED (5 to 0)
7.f Adoption of Resolution No. 03-24 Approving the Terms and
Conditions of the Second Amended and Restated Joint Powers
Agreement with the San Luis Obispo County Integrated Waste
Management Authority (IWMA)
Adopt Resolution No. 03-24 to authorize the Mayor to sign the second
amended and restated Joint Powers Agreement on behalf of the City of
Morro Bay subject to any final, non-substantive revisions as to form being
approved by the City Manager and City Attorney's Office.
7.g Approval of Amendment #1 to the Commercial Building Lease
Agreement with Three Stacks and a Rock Brewing Company, LLC.,
for Lease Site 69-70/69W-70W located at 595 Embarcadero Road
https://youtu.be/0j8c8tgmodY?si=IOkHAAiX2IgUIQDv&t=7005
Mayor Wixom asked Harbor Director Schiafone to provide an update and
respond to comments received for this item and City Attorney Neumeyer
to explain good faith negotiations.
Chuck Nettnin was invited to the podium to state his expectation for fair
rent. Mr. Nettnin believed 5% percent gross on alcohol sales was the
highest they could pay and still make a profit.
Following Council discussion, Mayor Wixom suggested the terms be
amended to require 5% percentage rent on alcohol sales for the first two
years beginning May 1, 2023, then increased to 10% for the remainder of
the lease term, contingent upon the tenant providing receipts supporting
the cost of building improvements.
Motion by Council Member Ford
Seconded by Council Member Barton
Adopt Resolution No. 04-24 approving Amendment #1 to the Commercial
Building Lease Agreement between the City of Morro Bay and Three
Stacks and a Rock Brewing Co. (“Three Stacks”) for Lease Site 69-
70/69W-70W located at 595 Embarcadero Road (the “Lease”), to add an
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equitable percentage rent rate beginning May 1, 2023 for the remainder of
the Lease term with the following amendment: Section 1 referring to
percentage sales be amended to make percent gross on alcohol sales 5%
for the first two years, thereafter 10% with the added condition for tenant
to provide receipts supporting cost of the required improvements were
made to the satisfaction of the Harbor Director.
Ayes (4): Mayor Wixom, Council Member Ford, Council Member Barton,
and Council Member Edwards
Noes (1): Council Member Landrum
CARRIED (4 to 1)
8. PUBLIC HEARING ITEMS
Council break at 8:04 p.m. The meeting reconvened at 8:17 p.m. with all
members present.
9. BUSINESS ITEMS
9.a Short-term Rental Ordinance Review - Requested by Council Member
Landrum
https://youtu.be/0j8c8tgmodY?si=32FAR0uSgV4LNEa_&t=9205
City Manager Kimball introduced the item and turned to Mayor Pro Tem
Landrum to present information she had gathered and community
feedback received during her town hall meeting. Community
Development Director Graham followed with the staff presentation.
Mayor Wixom opened public comment for Item 9.a:
https://youtu.be/0j8c8tgmodY?si=t1SdVDehbxFbTtHk&t=12377
Cindy Muir, Morro Bay, spoke regarding the importance of proper
enforcement and hoped the City would bring short-term rental (STR)
permitting and transient occupancy tax (TOT) collection back in-house.
Michelle Leicester-Cadaret, Morro Bay, shared frustrations with STRs in
her neighborhood, including smoking on-premises, street parking and use
of wood burning fire pits. She urged the City to bring the permitting
process back in house.
Jim Curnutt, Morro Bay, spoke regarding an unlicensed STR in his
neighborhood and need for evening/weekend code enforcement.
Jeff Eckles, Morro Bay, suggested the City enlist Cal Poly or Cuesta to
develop an app that makes STR information available to residents, staff,
permit applicants.
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Nicole Dorfman, Morro Bay, commented on the importance of enforcement
and preferred the permitting process be brought back in house. She was
supportive of re-engaging the STR ordinance review committee,
suggesting others might also wish to participate.
Margaret Carman, Morro Bay, spoke regarding the need for full-time
enforcement and increased fines. She suggested this item come back for
review in six months.
There was Council consensus to go past 9:30 p.m.
Betty Winholtz, Morro Bay, agreed enforcement was an issue and
encouraged the City to bring permitting back in house.
An unnamed resident commented on capitalism and the need for systemic
change.
Anna commented as a business owner regarding her disappointing
experiences with HdL.
Joe Rawson, Morro Bay, expressed concerns about HdL's management of
STR permitting and hoped to get a license after being on the waitlist since
2019.
Robert Elzer, Morro Bay resident and Owner/Manager of Beach-N-Bay
Getaways / URelax Vacation Rentals, commented on the extensive
process used to develop the current ordinance and suggested the best
path forward was to increase enforcement.
End of public comment.
Following individual comments, there was Council consensus to have staff
come back with recommended solutions for identified concerns, including:
analysis of in-house vs. outsourced permitting, improved code
enforcement, and increased fines for noncompliance up to the maximum
allowed.
No formal action was taken by the City Council.
9.b Consideration of Revisions to the City Council Policies & Procedures
to add Section 5.5 Establishing a Policy regarding the use of Public
Resources by Elected Officials
https://youtu.be/0j8c8tgmodY?si=6DRuf1h-UNtmb5-c&t=15326
City Clerk Swanson introduced the item and responded to Council
inquiries.
Mayor Wixom opened public comment for Item 9.b:
https://youtu.be/0j8c8tgmodY?si=wew9EkXfJ6Kgxacl&t=16276
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Cindy Muir, Morro Bay, suggested there be no limit to the number of town
hall sessions held by an elected official.
Betty Winholtz, Morro Bay, agreed there should be no limit on the number
of sessions held, they should not necessarily be related to goals, and the
defined election season be four months prior to election date.
Jim Curnutt, Morro Bay, agreed there was no need to limit the number of
sessions held unless it was tying up a room that could be rented.
Linda Donnelly, Morro Bay, was supportive of using City facilities for an
unlimited number of outreach meetings.
Margaret Carman, Morro Bay, suggested council members who don't hold
sessions be allowed to give their sessions to other members.
End of public comment.
Motion by Council Member Edwards
Seconded by Council Member Landrum
Adopt Resolution No. 05-24 amending the City Council Policies &
Procedures, to add Section 5.5 establishing a policy regarding the use of
public resources by elected officials, as agreed to by a Council majority,
allowing the use of city facilities free of charge for individual outreach and
town hall sessions up to six times per year except during the election
season beginning 120 days of four months prior to an election to fill City
office.
Ayes (5): Mayor Wixom, Council Member Ford, Council Member Barton,
Council Member Landrum, and Council Member Edwards
CARRIED (5 to 0)
9.c Quarterly Update on Fiscal Year (FY) 2023-24 and 2024-25 City
Council Goals and Action Items
https://youtu.be/0j8c8tgmodY?si=54zawkjkoWpA0aiy&t=17895
This item was continued to the next meeting.
10. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
https://youtu.be/0j8c8tgmodY?si=q-BzBTpPKn2RWvLW&t=17921
Council Member Landrum requested discussion on issues related to business
licensing and asked why the cost of a business license was based on the number
of employees. It was agreed staff would bring information to the Council then
decide whether a future agenda item was needed.
11. ADJOURNMENT
The meeting adjourned at 10:49 p.m.
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_________________________
Dana Swanson
City Clerk
Dana Swanson (Feb 14, 2024 16:48 PST)
Dana Swanson
7a.2 CC_2024-01-09 Regular Meeting Minutes
Final Audit Report 2024-02-15
Created:2024-02-14
By:Heather Goodwin (hgoodwin@morrobayca.gov)
Status:Signed
Transaction ID:CBJCHBCAABAAH8P8wXq3JlUXzoo8QPZoUFfyufMFNC5j
"7a.2 CC_2024-01-09 Regular Meeting Minutes" History
Document created by Heather Goodwin (hgoodwin@morrobayca.gov)
2024-02-14 - 10:18:34 PM GMT
Document emailed to Dana Swanson (dswanson@morrobayca.gov) for signature
2024-02-14 - 10:19:13 PM GMT
Email viewed by Dana Swanson (dswanson@morrobayca.gov)
2024-02-15 - 0:47:56 AM GMT
Document e-signed by Dana Swanson (dswanson@morrobayca.gov)
Signature Date: 2024-02-15 - 0:48:23 AM GMT - Time Source: server
Agreement completed.
2024-02-15 - 0:48:23 AM GMT